March 13, 2009  
ASBESTOS LITIGATION: Hanover Has $10.3MM Net Reserves at Dec. 31

The Hanover Insurance Group, Inc.'s asbestos reserves, net of
insurance and excluding pools, was US$10.3 million for the year
ended Dec. 31, 2008, compared with US$11.3 million for the year
ended Dec. 31, 2007.

Ending loss and loss adjustment expense reserves for all direct
business written by the Company's property and casualty
companies related to asbestos, environmental damage and toxic
tort liability, included in the reserve for losses and LAE, were
US$18.5 million in 2008, US$19.4 million in 2007 and US$24.7
million in 2006, net of reinsurance of US$13.9 million in 2008,
US$11.1 million in 2007 and US$13.8 million in 2006.

The Company's A&E-related gross reserves for loss and LAE
expenses were US$20 million at Sept. 30, 2008. The Company's A&E
net reserves for loss and LAE were US$13.4 million at Sept. 30,
2008. (Class Action Reporter, Nov. 28, 2008)

A&E reserves decreased by US$900,000, during 2008, primarily due
to a favorable cash recovery from a reinsurer on a prior year
environmental claim. During 2007, the Company reduced its A&E
reserves by US$4.5 million.

In addition, the Company has established loss and LAE reserves
for assumed reinsurance pool business with asbestos,
environmental damage and toxic tort liability of US$58.4 million
in 2008, US$56.9 million in 2007 and US$57 million in 2006.

These reserves relate to pools in which the Company has
terminated its participation. However, it continues to be
subject to claims related to years in which it was a
participant.

A significant part of the Company's pool reserves relates to its
participation in the Excess and Casualty Reinsurance Association
(ECRA) voluntary pool from 1950 to 1982. In 1982, the pool was
dissolved and since that time, the business has been in runoff.
The Company's percentage of the total pool liabilities varied
from one percent to six percent during these years.

The Company's participation in this pool has resulted in average
paid losses of about US$2 million annually over the past 10
years.

Headquartered in Worcester, Mass., The Hanover Insurance Group,
Inc.'s primary business operations include insurance products
and services in three property and casualty operating segments.
These segments are Personal Lines, Commercial Lines, and Other
Property and Casualty.
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