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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2025


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 1-13754

THE HANOVER INSURANCE GROUP, INC.

(Exact name of registrant as specified in its charter)

     Delaware

     04-3263626

     (State or other jurisdiction of
incorporation or organization)

     (I.R.S. Employer
Identification No.)

440 Lincoln Street, Worcester, Massachusetts 01653

(Address of principal executive offices) (Zip Code)

(508) 855-1000

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbols	Name of each exchange on which registered
Common Stock, $.01 par value	THG	New York Stock Exchange
7 5/8% Senior Debentures due 2025	THG	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of shares outstanding of the registrant’s common stock was 35,771,407 as of July 29, 2025.

Table of Contents

TABLE OF CONTENTS


PART I.	FINANCIAL INFORMATION	2

Item 1.	Financial Statements	2
	Consolidated Statements of Income	2
	Consolidated Statements of Comprehensive Income	3
	Consolidated Balance Sheets	4
	Consolidated Statements of Shareholders’ Equity	5
	Consolidated Statements of Cash Flows	6
	Notes to Interim Consolidated Financial Statements	7

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	27

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	45

Item 4.	Controls and Procedures	46

PART II.	OTHER INFORMATION	46

Item 1.	Legal Proceedings	46

Item 1A.	Risk Factors	47

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	49

Item 5.	Other Information	49

Item 6.	Exhibits	50

SIGNATURES		51

Table of Contents

PART I - FINANCIAL INFORMATION

ITEM 1 - FINANCIAL STATEMENTS

THE HANOVER INSURANCE GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)


	Three Months Ended						Six Months Ended
	June 30,						June 30,
(In millions, except per share data)	2025			2024			2025			2024
Revenues
Premiums	$	1,545.3		$	1,473.2		$	3,053.8		$	2,921.8
Net investment income		105.5			90.4			211.6			180.1
Net realized and unrealized investment gains (losses):
Net realized losses from sales and other		(4.6	)		(30.4	)		(23.4	)		(31.7	)
Net change in fair value of equity securities and other		5.0			1.1			6.0			7.6
Impairments on investments:
Credit-related impairments		(2.5	)		(3.5	)		(2.5	)		(3.2	)
Losses on intent to sell securities		(0.4	)		(1.7	)		(0.4	)		(1.7	)
		(2.9	)		(5.2	)		(2.9	)		(4.9	)
Total net realized and unrealized investment losses		(2.5	)		(34.5	)		(20.3	)		(29.0	)
Fees and other income		6.1			7.6			12.5			14.9
Total revenues		1,654.4			1,536.7			3,257.6			3,087.8
Losses and expenses
Losses and loss adjustment expenses		957.2			1,007.6			1,912.5			1,942.8
Amortization of deferred acquisition costs		319.0			303.5			632.9			602.5
Interest expense		8.6			8.6			17.1			17.1
Other operating expenses		170.8			165.7			336.2			328.8
Total losses and expenses		1,455.6			1,485.4			2,898.7			2,891.2
Income from continuing operations before income taxes		198.8			51.3			358.9			196.6
Income tax expense (benefit):
Current		46.4			17.0			76.4			45.7
Deferred		(4.5	)		(6.1	)		(2.6	)		(5.0	)
Total income tax expense		41.9			10.9			73.8			40.7
Income from continuing operations		156.9			40.4			285.1			155.9
Discontinued operations (net of taxes):
Income from discontinued life businesses		0.2			0.1			0.2			0.1
Net income	$	157.1		$	40.5		$	285.3		$	156.0
Earnings per common share:
Basic:
Income from continuing operations	$	4.37		$	1.12		$	7.93		$	4.34
Discontinued operations (net of taxes):
Income from discontinued life businesses		—			0.01			0.01			0.01
Net income per share	$	4.37		$	1.13		$	7.94		$	4.35
Weighted average shares outstanding		35.9			36.0			35.9			35.9
Diluted:
Income from continuing operations	$	4.30		$	1.11		$	7.80		$	4.30
Discontinued operations (net of taxes):
Income from discontinued life businesses		—			0.01			—			—
Net income per share	$	4.30		$	1.12		$	7.80		$	4.30
Weighted average shares outstanding		36.5			36.3			36.6			36.3

The accompanying notes are an integral part of these interim consolidated financial statements.

Table of Contents

THE HANOVER INSURANCE GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)


	Three Months Ended						Six Months Ended
	June 30,					June 30,
(In millions)	2025			2024			2025			2024
Net income	$	157.1		$	40.5		$	285.3		$	156.0
Other comprehensive income (loss), net of tax:
Available-for-sale securities:
Changes in net unrealized gains (losses) on investment securities:
Having no credit losses recognized in the Consolidated Statements of Income		56.2			3.8			167.5			(30.1	)
Having credit losses recognized in the Consolidated Statements of Income		0.1			2.2			—			2.0
Total available-for-sale securities		56.3			6.0			167.5			(28.1	)
Pension and postretirement benefits:
Net change in net actuarial loss		1.3			1.3			2.7			2.7
Long-duration insurance contracts:
Net change in market risk		(0.1	)		0.8			(1.1	)		1.8
Total other comprehensive income (loss), net of tax		57.5			8.1			169.1			(23.6	)
Comprehensive income	$	214.6		$	48.6		$	454.4		$	132.4

The accompanying notes are an integral part of these interim consolidated financial statements.

Table of Contents

THE HANOVER INSURANCE GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (UNAUDITED)


	June 30,			December 31,
(In millions, except share data)	2025			2024
Assets
Investments:
Fixed maturities, at fair value (amortized cost of $9,377.9 and $9,051.5)	$	9,078.9		$	8,542.2
Equity securities, at fair value		172.0			157.7
Other investments		690.4			709.9
Total investments		9,941.3			9,409.8
Cash and cash equivalents		244.1			435.5
Accrued investment income		75.5			69.8
Premiums and accounts receivable, net		1,894.6			1,800.8
Reinsurance recoverable on paid and unpaid losses and unearned premiums		1,978.8			1,994.5
Deferred acquisition costs		674.5			662.8
Deferred income tax asset		130.9			174.2
Goodwill		178.8			178.8
Other assets		526.8			462.6
Assets of discontinued businesses		86.8			85.7
Total assets	$	15,732.1		$	15,274.5
Liabilities
Loss and loss adjustment expense reserves	$	7,636.2		$	7,461.2
Unearned premiums		3,335.2			3,283.3
Expenses and taxes payable		601.5			757.8
Reinsurance premiums payable		49.8			37.7
Short-term debt		436.8			61.8
Long-term debt		347.8			722.3
Liabilities of discontinued businesses		108.5			108.6
Total liabilities		12,515.8			12,432.7
Commitments and contingencies
Shareholders’ Equity
Preferred stock, par value $0.01 per share; 20.0 million shares authorized; none issued		—			—
Common stock, par value $0.01 per share; 300.0 million shares authorized; 60.5 million shares issued		0.6			0.6
Additional paid-in capital		1,993.9			1,973.6
Accumulated other comprehensive loss		(287.2	)		(456.3	)
Retained earnings		3,431.2			3,209.6
Treasury stock at cost (24.6 million shares)		(1,922.2	)		(1,885.7	)
Total shareholders’ equity		3,216.3			2,841.8
Total liabilities and shareholders’ equity	$	15,732.1		$	15,274.5

The accompanying notes are an integral part of these interim consolidated financial statements.

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THE HANOVER INSURANCE GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (UNAUDITED)


	Three Months Ended						Six Months Ended
	June 30,						June 30,
(In millions)	2025			2024			2025			2024
Preferred Stock
Balance at beginning and end of period	$	—		$	—		$	—		$	—
Common Stock
Balance at beginning and end of period		0.6			0.6			0.6			0.6
Additional Paid-in Capital
Balance at beginning of period		1,978.3			1,941.3			1,973.6			1,939.2
Employee and director stock-based awards and other		15.6			10.6			20.3			12.7
Balance at end of period		1,993.9			1,951.9			1,993.9			1,951.9
Accumulated Other Comprehensive Income (Loss), net of tax
Net Unrealized Appreciation (Depreciation) on Investments:
Balance at beginning of period		(292.3	)		(496.9	)		(403.5	)		(462.8	)
Net appreciation (depreciation) on available-for-sale securities		56.3			6.0			167.5			(28.1	)
Balance at end of period		(236.0	)		(490.9	)		(236.0	)		(490.9	)
Defined Benefit Pension and Postretirement Plans:
Balance at beginning of period		(53.8	)		(53.4	)		(55.2	)		(54.8	)
Net amount recognized as net periodic benefit cost		1.3			1.3			2.7			2.7
Balance at end of period		(52.5	)		(52.1	)		(52.5	)		(52.1	)
Long Duration Insurance Contracts:
Balance at beginning of period		1.4			1.4			2.4			0.4
Net change in market risk		(0.1	)		0.8			(1.1	)		1.8
Balance at end of period		1.3			2.2			1.3			2.2
Total accumulated other comprehensive loss		(287.2	)		(540.8	)		(287.2	)		(540.8	)
Retained Earnings
Balance at beginning of period		3,306.8			2,993.9			3,209.6			2,909.4
Cumulative effect of accounting change, net of taxes		—			—			1.9			—
Balance at beginning of period, as adjusted		3,306.8			2,993.9			3,211.5			2,909.4
Net income		157.1			40.5			285.3			156.0
Dividends to shareholders		(32.7	)		(31.0	)		(65.6	)		(62.0	)
Balance at end of period		3,431.2			3,003.4			3,431.2			3,003.4
Treasury Stock
Balance at beginning of period		(1,896.6	)		(1,864.2	)		(1,885.7	)		(1,866.4	)
Shares purchased at cost		(27.6	)		—			(38.6	)		—
Net shares reissued at cost under employee stock-based compensation plans		2.0			1.3			2.1			3.5
Balance at end of period		(1,922.2	)		(1,862.9	)		(1,922.2	)		(1,862.9	)
Total shareholders’ equity	$	3,216.3		$	2,552.2		$	3,216.3		$	2,552.2

The accompanying notes are an integral part of these interim consolidated financial statements.

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THE HANOVER INSURANCE GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)


	Six Months Ended
	June 30,
(In millions)	2025			2024
Cash Flows From Operating Activities
Net income	$	285.3		$	156.0
Adjustments to reconcile net income to net cash provided by operating activities:
Net realized and unrealized investment losses		20.6			29.2
Net amortization and depreciation		(2.1	)		1.6
Stock-based compensation expense		17.8			14.8
Amortization of defined benefit plan costs		3.3			3.4
Deferred income tax expense		(2.5	)		(5.2	)
Change in deferred acquisition costs		(11.7	)		(13.9	)
Change in premiums receivable, net of reinsurance premiums payable		(81.7	)		(113.2	)
Change in loss, loss adjustment expense and unearned premium reserves		225.6			220.1
Change in reinsurance recoverable		15.6			18.6
Change in expenses and taxes payable		(150.2	)		(59.9	)
Other, net		(74.5	)		(53.3	)
Net cash provided by operating activities		245.5			198.2
Cash Flows From Investing Activities
Proceeds from disposals and maturities of fixed maturities		1,476.4			1,100.2
Proceeds from disposals of equity securities and other investments		57.8			34.5
Purchase of fixed maturities		(1,818.9	)		(1,204.3	)
Purchase of equity securities and other investments		(46.2	)		(34.4	)
Capital expenditures		(3.5	)		(4.8	)
Net cash used in investing activities		(334.4	)		(108.8	)
Cash Flows From Financing Activities
Proceeds from exercise of employee stock options		12.2			6.9
Dividends paid to shareholders		(64.7	)		(61.1	)
Repurchases of common stock		(38.6	)		—
Other financing activities		(11.7	)		(9.8	)
Net cash used in financing activities		(102.8	)		(64.0	)
Net change in cash and cash equivalents		(191.7	)		25.4
Net change in cash related to discontinued operations		0.3			(3.9	)
Cash and cash equivalents, beginning of period		435.5			316.1
Cash and cash equivalents, end of period	$	244.1		$	337.6

The accompanying notes are an integral part of these interim consolidated financial statements.

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THE HANOVER INSURANCE GROUP, INC. AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

1. Basis of Presentation and Principles of Consolidation

The accompanying unaudited consolidated financial statements of The Hanover Insurance Group, Inc. and its subsidiaries (“THG” or the “Company”) have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim financial information and with the requirements of Form 10-Q. Certain financial information that is provided in annual financial statements, but is not required in interim reports, has been omitted.

The interim consolidated financial statements of THG include the accounts of The Hanover Insurance Company and Citizens Insurance Company of America, THG’s principal property and casualty companies, and other insurance and non-insurance subsidiaries. These legal entities conduct their operations through several reporting segments discussed in Note 8 – “Segment Information.” All intercompany accounts and transactions have been eliminated.

The preparation of financial statements in conformity with U.S. GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates.

In the opinion of the Company’s management, the accompanying interim consolidated financial statements reflect all adjustments, consisting of normal recurring items, necessary for a fair presentation of the financial position and results of operations. The results of operations for the six months ended June 30, 2025 are not necessarily indicative of the results to be expected for the full year. These financial statements should be read in conjunction with the Company’s 2024 Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 24, 2025.

2. New Accounting Pronouncements

Recently Implemented Standards

In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Codification (“ASC”) Update No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This Update requires entities to disclose significant segment expenses and other segment items on an annual and interim basis, and to provide in interim periods all disclosures about a reportable segment’s profit or loss and assets that are currently required annually. Additionally, it requires entities to disclose the title and position of the Chief Operating Decision Maker (“CODM”), and an explanation of how the CODM uses the reported measures of segment profit or loss. The Update does not change how entities identify operating segments, aggregate them, or apply the quantitative thresholds to determine reportable segments. This Update was effective for annual reporting periods beginning after December 15, 2023, and interim reporting periods beginning after December 15, 2024. The Company implemented this guidance effective January 1, 2024, on a retrospective basis, and it did not have a material effect on its financial position or results of operations, as the Update is disclosure related.

Recently Issued Standards

In November 2024, the FASB issued ASC Update No. 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40). This Update requires entities to disclose, at each interim and annual reporting period, specified information about certain costs and expenses in the notes to financial statements. Entities must disclose the amounts, in a tabular format, of relevant expense captions presented on the face of the income statement within continuing operations that contain expenses associated with employee compensation, depreciation, and intangible asset amortization. Additionally, the Update requires qualitative disclosure of amounts remaining in relevant expense captions that are not separately disaggregated quantitatively, and the disclosure of total of selling expenses, among other items. This Update is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within annual reporting periods, as clarified in ASC Update No. 2025-01, beginning after December 15, 2027, with early adoption permitted. This guidance may be implemented either on a prospective or retrospective basis. The Company does not expect implementation of this guidance to have a material effect on its financial position or results of operations, as the Update is disclosure related.

In December 2023, the FASB issued ASC Update No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This Update requires entities to disclose an annual tabular rate reconciliation, using both percentages and currency amounts, broken out into specific categories, to the extent those items exceed a specified threshold. In addition, all entities are required to disclose annual income taxes paid, net of refunds received, disaggregated by federal, state, and foreign jurisdictions, and for individual jurisdictions when the amount is at least five percent of total income tax payments, net of refunds received. This Update is effective for annual reporting periods beginning after December 15, 2024, with early adoption permitted. This guidance may be implemented either on a prospective or retrospective basis. The Company does not expect implementation of this guidance to have a material effect on its financial position or results of operations, as the Update is disclosure related.

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3. Investments

A. Fixed maturities

The amortized cost and fair value of available-for-sale fixed maturities were as follows:


	June 30, 2025
						Amortized Cost,
			Allowance			Net of Allowance		Gross		Gross
	Amortized		for Credit			for Credit		Unrealized		Unrealized
(in millions)	Cost		Losses			Losses		Gains		Losses		Fair Value
U.S. Treasury and government agencies	$	527.3	$	—		$	527.3	$	2.2	$	44.7	$	484.8
Foreign governments		2.4		—			2.4		0.2		—		2.6
Municipals		940.9		—			940.9		2.3		85.1		858.1
Corporates		4,078.1		(0.4	)		4,077.7		49.8		88.9		4,038.6
Residential mortgage-backed		2,630.1		—			2,630.1		12.9		122.6		2,520.4
Commercial mortgage-backed		425.4		—			425.4		0.2		27.9		397.7
Other asset-backed		774.1		—			774.1		4.2		1.6		776.7
Total fixed maturities	$	9,378.3	$	(0.4	)	$	9,377.9	$	71.8	$	370.8	$	9,078.9


	December 31, 2024
						Amortized Cost,
			Allowance			Net of Allowance		Gross		Gross
	Amortized		for Credit			for Credit		Unrealized		Unrealized
(in millions)	Cost		Losses			Losses		Gains		Losses		Fair Value
U.S. Treasury and government agencies	$	552.6	$	—		$	552.6	$	0.4	$	58.8	$	494.2
Foreign governments		1.8		—			1.8		0.1		—		1.9
Municipals		1,001.5		—			1,001.5		1.5		109.2		893.8
Corporates		3,953.5		(0.6	)		3,952.9		14.4		161.4		3,805.9
Residential mortgage-backed		2,277.6		—			2,277.6		2.8		156.3		2,124.1
Commercial mortgage-backed		564.2		—			564.2		0.1		42.1		522.2
Other asset-backed		700.9		—			700.9		2.5		3.3		700.1
Total fixed maturities	$	9,052.1	$	(0.6	)	$	9,051.5	$	21.8	$	531.1	$	8,542.2

The Company enters into various agreements that may require its fixed maturities to be held as collateral by others. At June 30, 2025 and December 31, 2024, fixed maturities with fair values of $337.0 million and $130.9 million, respectively, were held as collateral for the Federal Home Loan Bank (“FHLB”) collateralized borrowing program. Additionally, the Company deposits funds with various state governmental authorities and trustees. For a discussion of the Company’s deposits with these state governmental authorities and trustees, see Note 2 – “Investments” in the Notes to Consolidated Financial Statements in the Company’s 2024 Annual Report on Form 10-K.

The amortized cost and fair value by maturity periods for fixed maturities are shown in the following table. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties, or the Company may have the right to put or sell the obligations back to the issuers.


	June 30, 2025
	Amortized Cost, Net
	of Allowance for		Fair
(in millions)	Credit Losses		Value
Due in one year or less	$	269.0	$	268.4
Due after one year through five years		2,255.4		2,233.0
Due after five years through ten years		2,667.0		2,554.9
Due after ten years		356.9		327.8
		5,548.3		5,384.1
Mortgage-backed and other asset-backed securities		3,829.6		3,694.8
Total fixed maturities	$	9,377.9	$	9,078.9

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B. Fixed maturity securities in an unrealized loss position

The following tables provide information about the Company’s available-for-sale fixed maturity securities that were in an unrealized loss position at June 30, 2025 and December 31, 2024, including the length of time the securities have been in an unrealized loss position:


	June 30, 2025
	12 months or less				Greater than 12 months				Total
	Gross				Gross				Gross
	Unrealized		Fair		Unrealized		Fair		Unrealized		Fair
(in millions)	Losses		Value		Losses		Value		Losses		Value
Investment grade:
U.S. Treasury and government agencies	$	2.8	$	110.7	$	41.9	$	236.6	$	44.7	$	347.3
Municipals		0.9		64.2		84.2		636.2		85.1		700.4
Corporates		2.8		479.6		80.4		1,082.0		83.2		1,561.6
Residential mortgage-backed		4.7		679.6		117.9		715.7		122.6		1,395.3
Commercial mortgage-backed		0.8		58.9		26.1		308.4		26.9		367.3
Other asset-backed		1.3		193.6		0.3		47.7		1.6		241.3
Total investment grade		13.3		1,586.6		350.8		3,026.6		364.1		4,613.2
Below investment grade:
Foreign governments		—		0.4		—		—		—		0.4
Corporates		1.8		55.7		3.9		46.7		5.7		102.4
Commercial mortgage-backed		—		—		1.0		5.1		1.0		5.1
Total below investment grade		1.8		56.1		4.9		51.8		6.7		107.9
Total fixed maturities	$	15.1	$	1,642.7	$	355.7	$	3,078.4	$	370.8	$	4,721.1


	December 31, 2024
	12 months or less				Greater than 12 months				Total
	Gross				Gross				Gross
	Unrealized		Fair		Unrealized		Fair		Unrealized		Fair
(in millions)	Losses		Value		Losses		Value		Losses		Value
Investment grade:
U.S. Treasury and government agencies	$	7.8	$	194.4	$	51.0	$	240.8	$	58.8	$	435.2
Municipals		3.0		132.5		106.2		680.9		109.2		813.4
Corporates		22.8		1,360.3		132.0		1,523.3		154.8		2,883.6
Residential mortgage-backed		16.5		896.8		139.8		747.2		156.3		1,644.0
Commercial mortgage-backed		0.7		23.7		41.4		485.4		42.1		509.1
Other asset-backed		2.5		181.4		0.8		78.5		3.3		259.9
Total investment grade		53.3		2,789.1		471.2		3,756.1		524.5		6,545.2
Below investment grade:
Foreign governments		—		0.1		—		—		—		0.1
Corporates		1.3		70.8		5.3		49.8		6.6		120.6
Commercial mortgage-backed		—		—		—		0.8		—		0.8
Total below investment grade		1.3		70.9		5.3		50.6		6.6		121.5
Total fixed maturities	$	54.6	$	2,860.0	$	476.5	$	3,806.7	$	531.1	$	6,666.7

The Company views gross unrealized losses on fixed maturities as non-credit related and through its assessment of unrealized losses has determined that these securities will recover, allowing the Company to realize the anticipated long-term economic value. The Company currently does not intend to sell, nor does it expect to be required to sell these securities before recovery of their amortized cost. The Company employs a systematic methodology to evaluate declines in fair value below amortized cost for fixed maturity securities. In determining impairments, the Company evaluates several factors and circumstances, including the issuer’s overall financial condition; the issuer’s credit and financial strength ratings; the issuer’s financial performance, including earnings trends and asset quality; any specific events which may influence the operations of the issuer; the general outlook for market conditions in the industry or geographic region in which the issuer operates; and the degree to which the fair value of an issuer’s securities is below the Company’s amortized cost. The Company also considers any factors that might raise doubt about the issuer’s ability to make contractual payments as they come due and whether the Company expects to recover the entire amortized cost basis of the security.

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C. Proceeds from sales

HANOVER INSURANCE GROUP, INC. 10-Q