Reno, NV – Employers Holdings, Inc. (NYSE:EIG) recently reported financial results for its second quarter ended June 30, 2020.
- Net income of $59.6 million, or $1.97 per diluted share;
- Adjusted net income of $25.7 million, or $0.85 per diluted share;
- Net realized and unrealized gains on investments recorded through the income statement of $39.7 million;
- Net investment income of $19.9 million, down 7% year-over-year;
- Net premiums earned of $151.5 million, down 14% year-over-year;
- Favorable prior year loss reserve development on voluntary business of $23.5 million, versus $24.0 million a year ago;
- The Company repurchased 1,033,048 shares of its common stock at an average price of $29.76 per share;
- Book value per share including the Deferred Gain of $43.43, up 11% for the quarter including dividends declared.
Chief Executive Officer Douglas Dirks commented: “During the second quarter we delivered an 8.9% annualized return on adjusted equity, a terrific result given the disruption being experienced throughout the U.S. attributable to the COVID-19 pandemic. Although our operating results were solid for the second quarter, our top line was adversely impacted by a decrease in new business premium, a reduction in estimated final audit premium and additional, but moderating, premium-reducing midterm endorsements.
New business writings were down sharply in April and May, driven by lower submission volume, but rebounded nicely in June. For June, new business submissions were up 5% and new policies bound were up 14%, each year-over-year. We are hopeful that this is a strong sign that our targeted businesses have successfully reopened and are resuming their operations, and that the significant investments we have made in delivering a superior customer experience for our agents and insureds are contributing to growth in our business in an unprecedentedly challenging time. Notably, the positive results we observed in June have not yet been observed in California, although the year-over-year changes in submissions, new policies bound and bound premium in California were less negatively impacted in June than in the first two months of the quarter.”
Mr. Dirks continued, “Our balance sheet and income statement were each favorably impacted by $120 million of pretax investment gains arising during the quarter, thanks to the strong recovery in the financial markets. We were also very successful in terms of managing our capital. During the quarter we repurchased $31 million of our common stock and, year-to-date, we have returned $92 million to our shareholders through share repurchases and regular quarterly dividends. Our balance sheet and capital position remain strong and supportive of our aggressive business objectives.”
The Company has been fully functional since we closed all of our buildings to employees and the general public on March 20, 2020, and we have remained in work-from-home mode in order to protect the safety and well-being of our employees, their families and our stakeholders.”
The complete results release is available here: Employers Holdings, Inc. Second Quarter 2020 Results