Reno, NV – Employers Holdings, Inc. (NYSE:EIG), a holding company with subsidiaries that are specialty providers of workers’ compensation insurance and services focused on select, small businesses engaged primarily in low-to-medium hazard industries, recently reported financial results for its second quarter ended June 30, 2022.
- Gross premiums written of $179.4 million, up 22% year-over-year;
- Net premiums earned of $165.2 million, up 21% year-over-year;
- Record number of ending policies in-force of 117,256, up 9% year-over-year;
- Net investment income of $20.0 million, up 10% year-over-year;
- Net loss of $15.6 million, a loss of $0.56 per common share;
- Adjusted net income of $21.9 million, $0.79 per diluted share;
- The Company repurchased 365,359 shares of its common stock at an average price of $39.81 per share.
Chief Executive Officer Katherine Antonello commented: “Consistent with the momentum we have experienced in recent prior quarters, our written and earned premiums rose sharply year-over-year and we achieved yet another record number of policies in-force. This growth resulted from strong new and renewal business writings within our Employers segment, strong new business writings within our Cerity segment and further audit premium recognition.
We maintained our current accident year loss and LAE ratio on voluntary business at 64.0%, largely consistent with the 63.5% we recorded throughout 2021. We also performed our routine mid-year full reserve study and recognized $9.6 million of net favorable prior year loss reserve development from our voluntary business. Our combined ratio for Employers, our largest segment, was 92.4% versus 98.8% a year ago, driven primarily by the favorable loss reserve development recognized as well as a significantly lower underwriting expense ratio of 20.2% versus 23.0% a year ago.”
Ms. Antonello continued, “We remain committed to maintaining the highest level of underwriting discipline as we thoughtfully expand our underwriting appetite at both Employers and Cerity. The additional classes of business are contributing nicely to our top-line growth.
Our Cerity operations, which offers digital workers’ compensation insurance solutions directly to consumers, experienced solid premium growth again this quarter, due to both its appetite expansion and its recent collaboration with Intuit’s QuickBooks. Cerity continues to develop additional strategic opportunities which will support our growth initiatives by attracting an untapped segment of our target market.
The sharp increases in market interest rates that have occurred throughout the first six months of 2022 have benefited our net investment income while generating unrealized investment losses from our fixed maturity portfolio. These unrealized losses, coupled with unrealized losses from our equity portfolio, have led to a decline in our book value and book value per share metrics.
Our balance sheet and underwriting capital remain very strong and are highly supportive of our continued growth and success.”
The complete results release is available here: Employers Holdings, Inc. Second Quarter 2022 Results