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, 2025 Compared to Three Months Ended September 30, 2024

The provision for income taxes from continuing operations was an expense of $48.5 million and $27.6 million for the three months ended September 30, 2025 and 2024, respectively. These amounts resulted in consolidated effective tax rates of 21.4% and 21.3% on pre-tax income for the three months ended September 30, 2025 and 2024, respectively. These provisions include excess tax benefits, primarily related to tax planning strategies implemented in prior years and stock-based compensation, of $0.3 million and $0.5 million for the three months ended September 30, 2025 and 2024, respectively. Absent excess tax benefits, the provision for income taxes would have been an expense of $48.8 million, or 21.5%, and $28.1 million, or 21.7%, for the three months ended September 30, 2025 and 2024, respectively.

The income tax provision on operating results was an expense of $50.5 million and $30.8 million for the three months ended September 30, 2025 and 2024, respectively. These provisions resulted in effective tax rates on operating income of 21.4% and 21.7% for the three months ended September 30, 2025 and 2024, respectively. Excess tax benefits in both the three months ended September 30, 2025 and 2024 were not material.

Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024

The provision for income taxes from continuing operations was an expense of $122.3 million and $68.3 million for the nine months ended September 30, 2025 and 2024, respectively. These amounts resulted in consolidated effective tax rates of 20.9% on pre-tax income for both periods. These provisions include excess tax benefits, primarily related to stock-based compensation and tax planning strategies implemented in prior years, of $3.5 million and $2.4 million for the nine months ended September 30, 2025 and 2024, respectively. Absent excess tax benefits, the provision for income taxes would have been an expense of $125.8 million, or 21.5%, and $70.7 million, or 21.7%, for the nine months ended September 30, 2025 and 2024, respectively.

The income tax provision on operating results was an expense of $129.2 million and $78.8 million for the nine months ended September 30, 2025 and 2024, respectively. These provisions resulted in effective tax rates on operating income of 21.0% and 21.3% for the nine months ended September 30, 2025 and 2024, respectively. These provisions reflect excess tax benefits primarily related to stock-based compensation. Absent these items, the provision for income taxes would have been an expense of $131.9 million, or 21.4%, and $80.0 million, or 21.6%, for the nine months ended September 30, 2025 and 2024, respectively.

On July 4, 2025, the One Big Beautiful Bill Act of 2025 was enacted in the U.S. which, among other things, changes certain provisions in the U.S. Tax Code. These changes will primarily impact the timing of our tax deductions; however, we do not expect these provisions to have a material impact on our financial position or results of operations.