Henderson, NV – Employers Holdings, Inc. (NYSE:EIG) recently reported financial results for its second quarter ended June 30, 2023.
Chief Executive Officer Katherine Antonello commented: “Our excellent second quarter results are a testament to the transformational changes we are making at Employers. Wage increases, a strong labor market and our new sales and underwriting operating model contributed to higher new and renewal premiums and an increase in final audit premiums. Together with strong net investment income and continued net investment gains, revenue increased 59% year-over-year.
Our mid-year full reserve study led to the recognition of $20.0 million of net favorable prior year loss reserve development from our voluntary business. Those actions, coupled with our continual focus on our underwriting expenses yielded a combined ratio of 87.2% for our Employers segment, which is a terrific result. In addition, our Cerity segment, which offers digital workers’ compensation insurance solutions directly to consumers, contributed nicely to our growth in premiums and strong net investment income.”
Ms. Antonello continued, “during the quarter we incurred a $9.4 million non-recurring charge in connection with the early lease termination of our former corporate headquarters in Reno, Nevada. This previously announced action was undertaken as part of an ongoing review of our facility needs and will serve to continue our meaningful reduction in underwriting expenses.
Lastly, today we declared a regular quarterly dividend of $0.28 per share and announced a new $50.0 million share repurchase plan after exhausting the former plan prior to its scheduled expiration. These actions reflect our strong balance sheet, abundant underwriting capital and confidence in the Company’s future operations.”
Financial Highlights:
(All comparisons vs. the second quarter of 2022, unless noted otherwise).
- Net income of $34.9 million or $1.30 per share versus a net loss of $15.6 million or a loss of $0.56 per share;
- Adjusted net income of $31.4 million or $1.17 per share versus net income of $21.9 million or $0.79 per share;
- Gross premiums written of $198.4 million versus $179.4 million, an increase of 11%;
- Net premiums earned of $177.1 million versus $165.2 million, an increase of 7%;
- Net investment income of $26.8 million versus $20.0 million, an increase of 34%;
- Net investment gains reflected on the income statement of $11.3 million versus net losses of $50.1 million;
- Other expenses of $9.4 million representing a non-recurring charge in connection with an early lease termination;
- Record number of ending policies in-force of 124,848, up 6%; and
- Returned $43.1 million to stockholders through a combination of stock repurchases and regular quarterly dividends.
The complete results release is available here: Employers Holdings, Inc. Second Quarter 2023 Results
Source: EMPLOYERS