HANOVER INSURANCE GROUP, INC.

Taxes

We file a consolidated U.S. federal income tax return that includes our holding company and its domestic subsidiaries (including non-insurance operations).

Three Months Ended September 30, 2026 Compared to Three Months Ended September 30, 2025

The provision for income taxes from continuing operations was an expense of $48.0 million and $48.5 million for the three months ended September 30, 2026 and 2025, respectively. These amounts resulted in consolidated effective tax rates of 21.8% and 21.4% on pre-tax income for the three months ended September 30, 2026 and 2025, respectively. These provisions include net excess tax benefits of $0.8 million and $0.3 million for the three months ended September 30, 2026 and 2025, respectively, primarily related to stock-based compensation and tax planning strategies implemented in prior years. Absent net excess tax benefits, the provision for income taxes would have been an expense of $48.8 million for both the three months ended September 30, 2026 and 2025. The effective tax rate would have been 22.2% and 21.5% for the three months ended September 30, 2026 and 2025, respectively. The increase in the effective tax rate for the three months ended September 30, 2026 is primarily due to state income taxes.

The income tax provision on operating results was an expense of $51.3 million and $50.5 million for the three months ended September 30, 2026 and 2025, respectively. These provisions resulted in effective tax rates on operating income of 21.9% and 21.4% for the three months ended September 30, 2026 and 2025, respectively. These provisions reflect net excess tax benefits primarily related to stock-based compensation. Absent net excess tax benefits, the provision for income taxes would have been an expense of $51.8 million, or 22.1%, and $50.6 million, or 21.4%, for the three months ended September 30, 2026 and 2025, respectively. The increase in the effective tax rate for the three months ended September 30, 2026 is primarily due to state income taxes.

Nine Months Ended September 30, 2026 Compared to Nine Months Ended September 30, 2025

The provision for income taxes from continuing operations was an expense of $151.5 million and $122.3 million for the nine months ended September 30, 2026 and 2025, respectively. These amounts resulted in consolidated effective tax rates of 21.6% and 20.9% on pre-tax income for the nine months ended September 30, 2026 and 2025, respectively. These provisions include net excess tax benefits of $3.7 million and $3.5 million for the nine months ended September 30, 2026 and 2025, respectively, primarily related to stock-based compensation. Absent net excess tax benefits, the provision for income taxes would have been an expense of $155.2 million, or 22.1%, and $125.8 million, or 21.5%, for the nine months ended September 30, 2026 and 2025, respectively. The increase in the effective tax rate for the nine months ended September 30, 2026 is primarily due to state income taxes.

The income tax provision on operating results was an expense of $154.8 million and $129.2 million for the nine months ended September 30, 2026 and 2025, respectively. These provisions resulted in effective tax rates on operating income of 21.6% and 21.0% for the nine months ended September 30, 2026 and 2025, respectively. These provisions reflect the aforementioned net excess tax benefits primarily related to stock-based compensation. Absent net excess tax benefits, the provision for income taxes would have been an expense of $158.1 million, or 22.1%, and $131.9 million, or 21.4%, for the nine months ended September 30, 2026 and 2025, respectively. The increase in the effective tax rate for the nine months ended September 30, 2026 is primarily due to state income taxes.