Reno, NV – Employers Holdings, Inc.(NYSE:EIG) recently reported financial results for its fourth quarter and year ended December 31, 2021.
- Record number of ending policies in-force 111,350, up 8% year-over-year;
- Net income of $119.3 million, or $4.17 per diluted share;
- Adjusted net income of $67.9 million, or $2.37 per diluted share;
- Net investment income of $72.7 million, down 5% year-over-year;
- Net realized and unrealized gains on investments recorded through the income statement of $54.6 million;
- Gross premiums written of $589.7 million, up 2% year-over-year;
- Net premiums earned of $574.4 million, down 7% year-over-year;
- Favorable prior year loss reserve development of $39.8 million, versus $81.6 million a year ago;
- The Company repurchased 1,099,846 shares of its common stock at an average price of $38.36 per share;
- Book value per share including the Deferred Gain of $47.85, up 4.3% year-over-year including dividends declared.
Fourth Quarter 2021 Highlights
- Net income of $54.8 million, or $1.94 per diluted share;
- Adjusted net income of $29.8 million, or $1.06 per diluted share;
- Net investment income of $17.7 million, down 2% year-over-year;
- Net realized and unrealized gains on investments recorded through the income statement of $25.0 million;
- Gross premiums written of $142.0 million, up 15% year-over-year;
- Net premiums earned of $156.4 million, up 3% year-over-year;
- Favorable prior year loss reserve development of $24.2 million, versus $39.7 million a year ago;
- The Company repurchased 223,562 shares of its common stock at an average price of $39.63 per share.
Chief Executive Officer, Katherine Antonello, commented, “I am very excited about the progress we made in 2021, particularly over the last several months. Gross premiums written were up 15% year-over-year in both the fourth quarter and the second half of 2021, with submissions, quotes and binds increasing in the quarter. This growth resulted from our appetite expansion efforts within our established low hazard groups, continued strong new business writings, particularly in California, and further audit premium recognition. In addition, written premiums in January have provided a very strong start for us in 2022.
We maintained our current accident year loss and LAE ratio on voluntary business at 63.5%, down from 64.3% for all of 2020. Our indemnity claim frequency has continued to decrease in recent periods while indemnity claim severity remains moderate. During the fourth quarter, we recognized $24.2 million of net favorable prior year loss reserve development primarily related to favorable loss cost trends in accident year 2017 and prior. Additionally, our underwriting and administrative expenses of $39.2 million were down 10% from a year ago, primarily driven by targeted expense savings in compensation and professional fees.
As a result of the growth in written premium and reduction in expenses that we have achieved in recent quarters, we began 2022 with a significantly lower expense ratio.”
Ms. Antonello continued, “Our Cerity operating segment, which offers direct-to-consumer digital workers’ compensation insurance solutions, continues to successfully grow its business within its targeted low-hazard groups. Cerity’s written premium increased to more than $1.5 million in 2021, from just $0.3 million in 2020, and is off to a very strong start in 2022. We are confident that Cerity’s unique online experience will attract an untapped segment of our target market, and we expect increased momentum through strategic opportunities and partnerships that are currently being developed.”
The complete results release is available here: Employers Holdings, Inc. 2021 Q4 and Year End Results