News details

WORCESTER, Mass., Feb. 26 /PRNewswire-FirstCall/ -- The Hanover Insurance Group, Inc. (NYSE: THG) announced today that its board of directors has authorized a $100 million increase to the company's existing share repurchase program. With this authorization, as of February 25, 2010, the company has approximately $181 million remaining under its aggregate authorization of $400 million.

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Through its stock buy back program, the company may repurchase its common stock from time to time, in amounts, at prices, and at such times as the company deems appropriate, subject to market conditions and other considerations. The company's repurchases may be executed using open market purchases, privately negotiated transactions, accelerated repurchase programs or other transactions. The program does not stipulate that the company purchase any specific number of shares or make purchases by a certain time and date. The company also expects to establish from time to time 10b5-1 trading plans that will provide flexibility as it buys back its shares.

Separately, The Hanover's directors declared a dividend of 25 cents($0.25) per share on the issued and outstanding common stock of the company, payable March 22, 2010, to shareholders of record at the close of business on March 8, 2010. This dividend is the first under a new quarterly dividend schedule, announced on October 20, 2009. On an annualized basis, this dividend represents a 33% increase over the annual dividend of 75 cents($0.75), paid in December 2009.

"This stock repurchase authorization and the dividend increase are driven by our commitment to deliver significant value to our shareholders," said Frederick H. Eppinger, chief executive officer at The Hanover. "At the same time, they demonstrate the board's confidence in our strong capital position, overall financial strength and our prospects for the future."

Forward-Looking Statements

Statements regarding our capital position, financial strength and prospects for the future, as well as with respect to future share repurchases, which are subject to the company's discretion and without any obligation to repurchase such shares, and future dividends payable to our shareholders, which may be subject to future increases, decreases, or elimination, are all forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. The company cautions investors that any such forward-looking statements are not guarantees of future performance, and actual results could differ materially. Investors are directed to consider the risks and uncertainties in its business that may affect future performance and that are discussed in readily available documents, including the Company's annual report and other documents filed by The Hanover with the Securities and Exchange Commission and which are also available at www.hanover.com under "Investors."

About The Hanover

The Hanover Insurance Group, Inc. (NYSE: THG), based in Worcester, Mass., is the holding company for a group of insurers that includes The Hanover Insurance Company, also based in Worcester; Citizens Insurance Company of America, headquartered in Howell, Mich., and their affiliates. The Hanover offers a wide range of property and casualty products and services to individuals, families and businesses through an extensive network of independent agents, and has been meeting its obligations to its agent partners and their customers for more than 150 years. Taken as a group, The Hanover ranks among the top 30 property and casualty insurers in the United States. For more information, please visit www.hanover.com.

CONTACTS

Investors:             Media:

Robert P. Myron        Michael F. Buckley

(508) 855-2200         508-855-3099

rmyron@hanover.com     mibuckley@hanover.com



Oksana Lukasheva

(508) 855-2063

olukasheva@hanover.com

SOURCE The Hanover Insurance Group, Inc.