The Hanover Estimates Impact From Q2 Catastrophe Activity; Sees Q2 Segment EPS After-Tax of $0.15-0.25

The Hanover Insurance Group, Inc.

today announced the estimated impact of catastrophe-related activity on second quarter results in domestic business to be in the range of $70 to $77 million before taxes, or $1.00 to $1.10 after tax per share. Catastrophe losses during the quarter were primarily related to severe hail and wind storms from 11 events in the U.S. The largest losses were caused by hailstorms in the Midwest in April and a series of widespread hail and windstorm events in the Midwest and Mid-Atlantic regions in May and June. Second quarter results are also expected to be impacted by additions to reserves in certain domestic lines, primarily in surety and auto. Surety reserve additions are driven by continuing weak economic conditions, while auto reserve re-estimations primarily reflect an increase in severity of losses from the 2011 accident year. Taking this into account, as well as other currently available information, The Hanover expects second quarter segment income after tax(1) per share to be in the range of $0.15 to $0.25.