Employers Holdings, Inc. Reports Fourth Quarter 2024 and Full-Year Financial Results; Declares Quarterly Cash Dividend of $0.30 per Share
Employers Holdings (NYSE:EIG) reported strong financial results for Q4 and full-year 2024. The company achieved record levels in written and earned premium, with full-year net income of $118.6 million ($4.71 per diluted share) and adjusted net income of $94.0 million ($3.73 per diluted share).
Key 2024 highlights include:
- Gross premiums written: $776.3 million
- Net investment income: $107.0 million
- Record number of policies in-force: 130,767
- Returned $71.7 million to stockholders through share repurchases and dividends
The company maintained strong financial performance with a GAAP combined ratio of 97.9% for the full year. CEO Katherine Antonello noted their success in achieving solid growth in new and renewal premium, though offset by lower final audit premiums. The company's AM Best Financial Strength Rating was upgraded to 'A' (Excellent), and they declared a Q1 2025 dividend of $0.30 per share.
Employers Holdings (NYSE:EIG) ha riportato risultati finanziari solidi per il Q4 e per l'intero anno 2024. L'azienda ha raggiunto livelli record di premi scritti e guadagnati, con un reddito netto annuale di 118,6 milioni di dollari (4,71 dollari per azione diluita) e un reddito netto rettificato di 94,0 milioni di dollari (3,73 dollari per azione diluita).
I punti salienti del 2024 includono:
- Premi lordi scritti: 776,3 milioni di dollari
- Reddito netto da investimenti: 107,0 milioni di dollari
- Numero record di polizze attive: 130.767
- Restituiti 71,7 milioni di dollari agli azionisti attraverso riacquisti di azioni e dividendi
L'azienda ha mantenuto una forte performance finanziaria con un rapporto combinato GAAP del 97,9% per l'intero anno. L'amministratore delegato Katherine Antonello ha sottolineato il loro successo nel raggiungere una solida crescita nei premi nuovi e di rinnovo, sebbene compensata da premi di audit finale più bassi. Il rating di solidità finanziaria AM Best dell'azienda è stato aggiornato a 'A' (Eccellente), e hanno dichiarato un dividendo per il Q1 2025 di 0,30 dollari per azione.
Employers Holdings (NYSE:EIG) reportó resultados financieros sólidos para el cuarto trimestre y el año completo 2024. La compañía logró niveles récord en primas escritas y devengadas, con un ingreso neto anual de 118,6 millones de dólares (4,71 dólares por acción diluida) y un ingreso neto ajustado de 94,0 millones de dólares (3,73 dólares por acción diluida).
Los aspectos destacados de 2024 incluyen:
- Primas brutas escritas: 776,3 millones de dólares
- Ingreso neto por inversiones: 107,0 millones de dólares
- Número récord de pólizas vigentes: 130.767
- Devolvieron 71,7 millones de dólares a los accionistas a través de recompra de acciones y dividendos
La compañía mantuvo un sólido desempeño financiero con un índice combinado GAAP del 97,9% para el año completo. La CEO Katherine Antonello destacó su éxito en lograr un crecimiento sólido en las primas nuevas y de renovación, aunque compensado por primas de auditoría final más bajas. La calificación de solidez financiera AM Best de la compañía fue mejorada a 'A' (Excelente), y declararon un dividendo para el primer trimestre de 2025 de 0,30 dólares por acción.
Employers Holdings (NYSE:EIG)는 2024년 4분기 및 연간 강력한 재무 결과를 보고했습니다. 이 회사는 서면 및 발생한 보험료에서 기록적인 수준을 달성했으며, 연간 순이익은 1억 1,860만 달러(희석주당 4.71달러), 조정된 순이익은 9,400만 달러(희석주당 3.73달러)입니다.
2024년 주요 하이라이트는 다음과 같습니다:
- 총 보험료: 7억 7,630만 달러
- 순 투자 수익: 1억 7백만 달러
- 유효한 보험증권 수: 130,767건
- 주식 매입 및 배당금을 통해 주주에게 7,170만 달러 반환
회사는 연간 GAAP 결합 비율이 97.9%로 강력한 재무 성과를 유지했습니다. CEO인 캐서린 안토넬로는 새로운 보험료 및 갱신 보험료에서 견고한 성장을 달성한 성공을 언급했지만, 최종 감사 보험료가 낮아진 점이 상쇄되었다고 밝혔습니다. 회사의 AM Best 재무 건전성 등급은 'A'(우수)로 상향 조정되었으며, 2025년 1분기 배당금을 주당 0.30달러로 선언했습니다.
Employers Holdings (NYSE:EIG) a annoncé de solides résultats financiers pour le quatrième trimestre et l'année complète 2024. L'entreprise a atteint des niveaux records de primes écrites et gagnées, avec un revenu net annuel de 118,6 millions de dollars (4,71 dollars par action diluée) et un revenu net ajusté de 94,0 millions de dollars (3,73 dollars par action diluée).
Les points forts de 2024 incluent:
- Primes brutes écrites : 776,3 millions de dollars
- Revenu net d'investissement : 107,0 millions de dollars
- Nombre record de polices en vigueur : 130 767
- Retour de 71,7 millions de dollars aux actionnaires par le biais de rachats d'actions et de dividendes
L'entreprise a maintenu une solide performance financière avec un ratio combiné GAAP de 97,9 % pour l'année entière. La PDG Katherine Antonello a noté leur succès dans l'atteinte d'une solide croissance des primes nouvelles et de renouvellement, bien que compensée par des primes d'audit final plus faibles. La note de solidité financière AM Best de l'entreprise a été élevée à 'A' (Excellente), et ils ont déclaré un dividende de 0,30 dollar par action pour le premier trimestre 2025.
Employers Holdings (NYSE:EIG) berichtete über starke finanzielle Ergebnisse für das vierte Quartal und das Gesamtjahr 2024. Das Unternehmen erreichte Rekordwerte bei den geschriebenen und verdienten Prämien, mit einem Nettogewinn von 118,6 Millionen Dollar (4,71 Dollar pro verwässerter Aktie) und einem bereinigten Nettogewinn von 94,0 Millionen Dollar (3,73 Dollar pro verwässerter Aktie).
Die wichtigsten Highlights für 2024 umfassen:
- Brutto geschriebene Prämien: 776,3 Millionen Dollar
- Nettobetriebseinkommen: 107,0 Millionen Dollar
- Rekordzahl an aktiven Policen: 130.767
- 71,7 Millionen Dollar an die Aktionäre durch Aktienrückkäufe und Dividenden zurückgegeben
Das Unternehmen hielt eine starke finanzielle Leistung mit einem GAAP-Kombinationsverhältnis von 97,9% für das gesamte Jahr aufrecht. CEO Katherine Antonello bemerkte ihren Erfolg beim Erreichen eines soliden Wachstums bei neuen und erneuerten Prämien, obwohl dies durch niedrigere Abschlussprüfungsprämien ausgeglichen wurde. Die Finanzstärke-Bewertung von AM Best für das Unternehmen wurde auf 'A' (Ausgezeichnet) angehoben, und sie erklärten eine Dividende von 0,30 Dollar pro Aktie für das erste Quartal 2025.
- None.
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Company to Host Conference Call on Friday, February 21, 2025, at 11:00 a.m. Eastern Standard Time
RENO, Nev., Feb. 20, 2025 (GLOBE NEWSWIRE) -- Employers Holdings, Inc. (the “Company”) (NYSE:EIG), a holding company with subsidiaries that are specialty providers of workers’ compensation insurance and services focused on small and mid-sized businesses engaged in low-to-medium hazard industries, today reported financial results for its fourth quarter ended December 31, 2024.
Full-Year 2024 Financial Highlights
(All comparisons versus full-year 2023)
- Net income of
$118.6 million ($4.71 per diluted share), versus$118.1 million ($4.45 per diluted share); - Adjusted net income of
$94.0 million ($3.73 per diluted share), versus$101.7 million ($3.83 per diluted share); - Net investment income of
$107.0 million , versus$106.5 million ; - Gross premiums written of
$776.3 million , versus$767.7 million ; - Net premiums earned of
$749.5 million , versus$721.9 million ; - Net favorable prior year loss reserve development of
$18.4 million , versus$44.9 million ; - GAAP combined ratio of
97.9% (98.6% excluding the LPT), versus95.0% (96.0% excluding the LPT); - Returned
$71.7 million to stockholders through a combination of share repurchases and regular quarterly dividends; - Record number of ending policies in-force of 130,767, versus 126,409; and
- Adjusted Book value per share of
$50.71 , up9.8% including dividends declared.
Fourth Quarter 2024 Financial Highlights
(All comparisons versus fourth quarter 2023)
- Net income of
$28.3 million ($1.14 per diluted share), versus$45.6 million ($1.77 per diluted share); - Adjusted net income of
$28.7 million ($1.15 per diluted share), versus$36.1 million ($1.40 per diluted share); - Net investment income of
$26.7 million , versus$26.2 million ; - Gross premiums written of
$176.3 million , versus$178.2 million ; - Net premiums earned of
$190.2 million , versus$187.5 million ; - Net favorable prior year loss reserve development of
$9.1 million , versus$24.9 million ; - GAAP combined ratio of
95.5% (including and excluding the LPT), versus88.1% (88.8% excluding the LPT); and - Returned
$17.5 million to stockholders through a combination of share repurchases and a regular quarterly dividend.
CEO Commentary
Chief Executive Officer Katherine Antonello commented: “We are pleased with our fourth quarter and full-year 2024 results. In fact, we closed the year with the highest levels of written and earned premium, ending in-force premium and policies and net investment income in the Company’s history.
We achieved solid growth in new and renewal premium in 2024, but that growth was offset by lower final audit premiums and endorsements. Our investment performance contributed nicely to our overall results and financial strength. In addition to the record level of net investment income we generated, we also recognized
Ms. Antonello continued, “Our current accident year loss and LAE ratio on voluntary business was
Our active capital management efforts throughout 2024, which consisted of
Beyond our financial results, we continue to offer direct-to-consumer policies through the Cerity brand but, with the Cerity integration that was undertaken a year ago, we now do so without any meaningful fixed underwriting expenses. Further, our continued focus for 2025 will be on further appetite expansion, increased self-service options for policyholders, agents and injured workers and greater operational efficiencies.
Finally, we are saddened by the California wildfires and the impact on the Los Angeles area community and small businesses. Our thoughts are with all of those who have lost their homes, businesses, and livelihoods, and we are working with our partners to provide immediate and long-term assistance. As a monoline workers’ compensation insurance provider, these catastrophic events would not typically have a significant impact on our results, nor our long-term trends. We have analyzed the loss exposure and experience in the affected fire zones and have determined that approximately
Summary of Consolidated Fourth Quarter 2024 Results
(All comparisons versus fourth quarter 2023, unless otherwise noted)
Gross premiums written were
Losses and loss adjustment expenses were
Total underwriting expenses (consisting of commissions, other underwriting and general and administrative expenses) were
Within the 2024 periods presented herein, the Company refined its presentation of certain expenses associated with its involuntary premium. This revision, which was immaterial, had the effect of reducing both its fourth quarter and full year 2024 commission expense ratios by approximately 0.3 percentage points, and increasing its respective underwriting and general and administrative expense ratios by the same amount. This revision had no net effect on the Company’s total underwriting expenses or net income.
Net investment income was
Net realized and unrealized gains (losses) on investments reflected on the income statement were
Interest and financing expenses were
Other expenses of
Federal and state income tax expense was
The Company’s book value per share including the deferred gain of
Share Repurchases and First Quarter 2025 Dividend Declaration
During the fourth quarter of 2024, the Company repurchased 193,857 shares of its common stock at an average price of
On February 19, 2025, the Board of Directors declared a first quarter dividend of
Earnings Conference Call and Webcast
The Company will host a conference call on Friday, February 21, 2025 at 11:00 a.m. Eastern Standard Time / 8:00 a.m. Pacific Standard Time.
To participate in the live conference call, you must first register here. Once registered you will receive dial-in numbers and a unique PIN number.
The webcast will be accessible on the Company’s website at www.employers.com through the “Investors” link.
Reconciliation of Non-GAAP Financial Measures to GAAP
Within this earnings release we present various financial measures, some of which are “non-GAAP financial measures” as defined in Regulation G pursuant to Section 401 of the Sarbanes - Oxley Act of 2002. A description of these non-GAAP financial measures, as well as a reconciliation of such non-GAAP measures to our most directly comparable GAAP financial measures is included in the attached Financial Supplement. Management believes that these non-GAAP measures are important to the Company's investors, analysts and other interested parties who benefit from having an objective and consistent basis for comparison with other companies within our industry. Management further believes that these measures are more relevant than comparable GAAP measures in evaluating our financial performance.
The information in this press release should be read in conjunction with the Financial Supplement that is attached to this press release and available on our website.
Forward-Looking Statements
In this press release, the Company and its management discuss and make statements based on currently available information regarding their intentions, beliefs, current expectations, and projections of, among other things, the Company's future performance, economic or market conditions, including current or future levels of inflation, changes in interest rates, labor market expectations, catastrophic events or geo-political conditions, legislative or regulatory actions or court decisions, business growth, retention rates, loss costs, claim trends and the impact of key business initiatives, future technologies and planned investments. Certain of these statements may constitute “forward-looking” statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and are often identified by words such as “may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “target,” “project,” “intend,” “believe,” “estimate,” “predict,” “potential,” “pro forma,” “seek,” “likely,” or “continue,” or other comparable terminology and their negatives. The Company and its management caution investors that such forward-looking statements are not guarantees of future performance. Risks and uncertainties are inherent in the Company’s future performance. Factors that could cause the Company's actual results to differ materially from those indicated by such forward-looking statements include, among other things, those discussed or identified from time to time in the Company’s public filings with the Securities and Exchange Commission (SEC), including the risks detailed in the Company's Quarterly Reports on Form 10-Q and the Company's Annual Reports on Form 10-K. Except as required by applicable securities laws, the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Filings with the SEC
The Company’s filings with the SEC and its quarterly investor presentations can be accessed through the “Investors” link on the Company's website, www.employers.com. The Company’s filings with the SEC can also be accessed through the SEC's EDGAR Database at www.sec.gov (EDGAR CIK No. 0001379041).
About Employers Holdings, Inc.
Employers Holdings, Inc. (NYSE: EIG), is a holding company with subsidiaries that are specialty providers of workers’ compensation insurance and services (collectively “EMPLOYERS®”) focused on small and mid-sized businesses engaged in low-to-medium hazard industries. EMPLOYERS leverages over a century of experience to deliver comprehensive coverage solutions that meet the unique needs of its customers. Drawing from its long history and extensive knowledge, EMPLOYERS empowers businesses by protecting their most valuable asset – their employees – through exceptional claims management, loss control, and risk management services, creating safer work environments.
EMPLOYERS is also proud to offer Cerity®, which is focused on providing digital-first, direct-to-consumer workers’ compensation insurance solutions with fast, and affordable coverage options through a user-friendly online platform.
EMPLOYERS operates throughout the United States, apart from four states that are served exclusively by their state funds. Insurance is offered through Employers Insurance Company of Nevada, Employers Compensation Insurance Company, Employers Preferred Insurance Company, Employers Assurance Company and Cerity Insurance Company, all rated A (Excellent) by AM Best. Not all companies do business in all jurisdictions. EIG Services, Inc., and Cerity Services, Inc., are subsidiaries of Employers Holdings, Inc. EMPLOYERS® is a registered trademark of EIG Services, Inc., and Cerity® is a registered trademark of Cerity Services, Inc. For more information, please visit www.employers.com and www.cerity.com.
Contact Information
Mike Paquette (775) 327-2562 or mpaquette@employers.com
EMPLOYERS HOLDINGS, INC.
Table of Contents
Page
- Consolidated Financial Highlights
- Summary Consolidated Balance Sheets
- Summary Consolidated Income Statements
- Return on Equity
- Combined Ratios
- Roll-forward of Unpaid Losses and LAE
- Consolidated Investment Portfolio
- Book Value Per Share
- Earnings Per Share
- Non-GAAP Financial Measures
| EMPLOYERS HOLDINGS, INC. Consolidated Financial Highlights (unaudited) $ in millions, except per share amounts | |||||||||||||||||||||
| Three Months Ended | Years Ended | ||||||||||||||||||||
| December 31, | December 31, | ||||||||||||||||||||
| 2024 | 2023 | % change | 2024 | 2023 | % change | ||||||||||||||||
| Selected financial highlights: | |||||||||||||||||||||
| Gross premiums written | $ | 176.3 | $ | 178.2 | (1 | )% | $ | 776.3 | $ | 767.7 | 1 | % | |||||||||
| Net premiums written | 174.7 | 176.4 | (1 | ) | 769.5 | 760.6 | 1 | ||||||||||||||
| Net premiums earned | 190.2 | 187.5 | 1 | 749.5 | 721.9 | 4 | |||||||||||||||
| Net investment income | 26.7 | 26.2 | 2 | 107.0 | 106.5 | — | |||||||||||||||
| Net income excluding LPT (1) | 28.4 | 44.4 | (36 | ) | 113.0 | 110.9 | 2 | ||||||||||||||
| Adjusted net income (1) | 28.7 | 36.1 | (20 | ) | 94.0 | 101.7 | (8 | ) | |||||||||||||
| Net income before income taxes | 34.7 | 58.2 | (40 | ) | 146.7 | 148.4 | (1 | ) | |||||||||||||
| Net income | 28.3 | 45.6 | (38 | ) | 118.6 | 118.1 | — | ||||||||||||||
| Comprehensive income (loss) | (8.9 | ) | 116.2 | (108 | ) | 122.1 | 171.0 | (29 | ) | ||||||||||||
| Total assets | 3,541.3 | 3,550.4 | — | ||||||||||||||||||
| Stockholders' equity | 1,068.7 | 1,013.9 | 5 | ||||||||||||||||||
| Stockholders' equity including the Deferred Gain (2) | 1,162.7 | 1,113.1 | 4 | ||||||||||||||||||
| Adjusted stockholders' equity (2) | 1,245.2 | 1,199.1 | 4 | ||||||||||||||||||
| Annualized adjusted return on stockholders' equity (3) | 9.3 | % | 12.2 | % | (24 | )% | 7.7 | % | 8.5 | % | (9 | ) | |||||||||
| Amounts per share: | |||||||||||||||||||||
| Cash dividends declared per share | $ | 0.30 | $ | 0.28 | 7 | % | $ | 1.18 | $ | 1.10 | 7 | % | |||||||||
| Earnings per diluted share (4) | 1.14 | 1.77 | (36 | ) | 4.71 | 4.45 | 6 | ||||||||||||||
| Earnings per diluted share excluding LPT (4) | 1.72 | (34 | ) | 4.49 | 4.18 | 7 | |||||||||||||||
| Adjusted earnings per diluted share(4) | 1.14 | 1.40 | (18 | ) | 3.73 | 3.83 | (3 | ) | |||||||||||||
| Book value per share (2) | 1.15 | 43.52 | 39.96 | 9 | |||||||||||||||||
| Book value per share including the Deferred Gain (2) | 47.35 | 43.88 | 8 | ||||||||||||||||||
| Adjusted book value per share (2) | 50.71 | 47.26 | 7 | ||||||||||||||||||
| Combined ratio excluding LPT: (5) | |||||||||||||||||||||
| Loss and loss adjustment expense ratio: | |||||||||||||||||||||
| Current year | 64.2 | % | 63.5 | % | 64.1 | % | 63.4 | % | |||||||||||||
| Prior Year | (4.7 | ) | (13.3 | ) | (2.5 | ) | (6.2 | ) | |||||||||||||
| Loss and loss adjustment expense ratio | 59.5 | % | 50.2 | % | 61.6 | % | 57.2 | % | |||||||||||||
| Commission expense ratio | 12.8 | 14.0 | 13.5 | 13.9 | |||||||||||||||||
| Underwriting and general and administrative expense ratio | 23.2 | 24.6 | 23.5 | 24.9 | |||||||||||||||||
| Combined ratio excluding LPT | 95.5 | % | 88.8 | % | 98.6 | % | 96.0 | % | |||||||||||||
| (1) See Page 5 for calculations and Page 12 for information regarding our use of Non-GAAP Financial Measures. (2) See Page 10 for calculations and Page 12 for information regarding our use of Non-GAAP Financial Measures. (3) See Page 6 for calculations and Page 12 for information regarding our use of Non-GAAP Financial Measures. (4) See Page 11 for calculations and Page 12 for information regarding our use of Non-GAAP Financial Measures. (5) See Page 7 for calculations and Page 12 for information regarding our use of Non-GAAP Financial Measures. | |||||||||||||||||||||
| EMPLOYERS HOLDINGS, INC. | ||||||
| Summary Consolidated Balance Sheets (unaudited) | ||||||
| $ in millions, except per share amounts | ||||||
| December 31, 2024 | December 31, 2023 | |||||
| ASSETS | ||||||
| Available for sale: | ||||||
| Investments, cash and cash equivalents | $ | 2,532.4 | $ | 2,504.7 | ||
| Accrued investment income | 15.7 | 16.3 | ||||
| Premiums receivable, net | 361.3 | 359.4 | ||||
| Reinsurance recoverable, net of allowance, on paid and unpaid losses and LAE | 417.8 | 433.8 | ||||
| Deferred policy acquisition costs | 59.6 | 55.6 | ||||
| Deferred income taxes, net | 38.3 | 43.4 | ||||
| Contingent commission receivable—LPT Agreement | — | 14.2 | ||||
| Other assets | 116.2 | 123.0 | ||||
| Total assets | $ | 3,541.3 | $ | 3,550.4 | ||
| LIABILITIES | ||||||
| Unpaid losses and LAE | $ | 1,808.2 | $ | 1,884.5 | ||
| Unearned premiums | 402.2 | 379.7 | ||||
| Commissions and premium taxes payable | 65.8 | 66.0 | ||||
| Deferred Gain | 94.0 | 99.2 | ||||
| Other liabilities | 102.4 | 107.1 | ||||
| Total liabilities | $ | 2,472.6 | $ | 2,536.5 | ||
| STOCKHOLDERS' EQUITY | ||||||
| Common stock and additional paid-in capital | $ | 424.8 | $ | 420.4 | ||
| Retained earnings | 1,472.9 | 1,384.3 | ||||
| Accumulated other comprehensive loss, net | (82.5 | ) | (86.0 | ) | ||
| Treasury stock, at cost | (746.5 | ) | (704.8 | ) | ||
| Total stockholders’ equity | 1,068.7 | 1,013.9 | ||||
| Total liabilities and stockholders’ equity | $ | 3,541.3 | $ | 3,550.4 | ||
| Stockholders' equity including the Deferred Gain (1) | $ | 1,162.7 | $ | 1,113.1 | ||
| Adjusted stockholders' equity (1) | 1,245.2 | 1,199.1 | ||||
| Book value per share (1) | $ | 43.52 | $ | 39.96 | ||
| Book value per share including the Deferred Gain (1) | 47.35 | 43.88 | ||||
| Adjusted book value per share (1) | 50.71 | 47.26 | ||||
| (1) See Page 10 for calculations and Page 12 for information regarding our use of Non-GAAP Financial Measures. | ||||||
| EMPLOYERS HOLDINGS, INC. Summary Consolidated Income Statements (unaudited) $ in millions | ||||||||||||
| Three Months Ended | Years Ended | |||||||||||
| December 31, | December 31, | |||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Revenues: | ||||||||||||
| Net premiums earned | $ | 190.2 | $ | 187.5 | $ | 749.5 | $ | 721.9 | ||||
| Net investment income | 26.7 | 26.2 | 107.0 | 106.5 | ||||||||
| Net realized and unrealized (losses) gains on investments (1) | (0.4 | ) | 12.1 | 24.1 | 22.7 | |||||||
| Other income (loss) | 0.1 | (0.1 | ) | 0.1 | (0.2 | ) | ||||||
| Total revenues | 216.6 | 225.7 | 880.7 | 850.9 | ||||||||
| Expenses: | ||||||||||||
| Losses and LAE incurred | 113.2 | 92.9 | 456.2 | 405.7 | ||||||||
| Commission expense | 24.4 | 26.3 | 101.2 | 100.0 | ||||||||
| Underwriting and general and administrative expenses | 44.2 | 46.1 | 176.5 | 180.0 | ||||||||
| Interest and financing expenses | 0.1 | 0.6 | 0.1 | 5.8 | ||||||||
| Other expenses | — | 1.6 | — | 11.0 | ||||||||
| Total expenses | (181.9 | ) | (167.5 | ) | (734.0 | ) | (702.5 | ) | ||||
| Net income before income taxes | 34.7 | 58.2 | 146.7 | 148.4 | ||||||||
| Income tax expense | (6.4 | ) | (12.6 | ) | (28.1 | ) | (30.3 | ) | ||||
| Net income | 28.3 | 45.6 | 118.6 | 118.1 | ||||||||
| Unrealized AFS investment (losses) gains arising during the period, net of tax | (39.2 | ) | 66.6 | (3.5 | ) | 46.6 | ||||||
| Reclassification adjustment for realized AFS investment gains in net income, net of tax | 2.0 | 4.0 | 7.0 | 6.3 | ||||||||
| Total Comprehensive income | $ | (8.9 | ) | $ | 116.2 | $ | 122.1 | $ | 171.0 | |||
| Net income | $ | 28.3 | $ | 45.6 | $ | 118.6 | $ | 118.1 | ||||
| Amortization of the Deferred Gain - losses | (1.6 | ) | (1.5 | ) | (6.1 | ) | (6.3 | ) | ||||
| Amortization of the Deferred Gain - contingent commission | — | (0.3 | ) | (0.8 | ) | (1.5 | ) | |||||
| LPT reserve adjustment | 1.7 | 0.9 | 1.7 | 0.9 | ||||||||
| LPT contingent commission adjustments | — | (0.3 | ) | (0.4 | ) | (0.3 | ) | |||||
| Net income excluding LPT Agreement (2) | $ | 28.4 | $ | 44.4 | $ | 113.0 | $ | 110.9 | ||||
| Net realized and unrealized losses (gains) on investments | 0.4 | (12.1 | ) | (24.1 | ) | (22.7 | ) | |||||
| Lease termination and asset impairment charges | — | 1.6 | — | 11.0 | ||||||||
| Income tax (benefit) expense related to items excluded from Net income | (0.1 | ) | 2.2 | 5.1 | 2.5 | |||||||
| Adjusted net income (2) | $ | 28.7 | $ | 36.1 | $ | 94.0 | $ | 101.7 | ||||
| (1) Includes unrealized gains on equity securities and other invested assets of (2) See Page 12 regarding our use of Non-GAAP Financial Measures. | ||||||||||||
| EMPLOYERS HOLDINGS, INC. Return on Equity (unaudited) $ in millions | |||||||||||||
| Three Months Ended | Years Ended | ||||||||||||
| December 31, | December 31, | ||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||
| Net income | A | $ | 28.3 | $ | 45.6 | $ | 118.6 | $ | 118.1 | ||||
| Impact of the LPT Agreement | 0.1 | (1.2 | ) | (5.6 | ) | (7.2 | ) | ||||||
| Net realized and unrealized losses (gains) on investments | 0.4 | (12.1 | ) | (24.1 | ) | (22.7 | ) | ||||||
| Lease termination and asset impairment charges | — | 1.6 | — | 11.0 | |||||||||
| Income tax (benefit) expense related to items excluded from Net income | (0.1 | ) | 2.2 | 5.1 | 2.5 | ||||||||
| Adjusted net income (1) | B | $ | 28.7 | $ | 36.1 | $ | 94.0 | $ | 101.7 | ||||
| Stockholders' equity - end of period | $ | 1,068.7 | $ | 1,013.9 | $ | 1,068.7 | $ | 1,013.9 | |||||
| Stockholders' equity - beginning of period | 1,093.4 | 919.0 | 1,013.9 | 944.2 | |||||||||
| Average stockholders' equity | C | $ | 1,081.1 | $ | 966.5 | $ | 1,041.3 | $ | 979.1 | ||||
| Stockholders' equity - end of period | $ | 1,068.7 | $ | 1,013.9 | $ | 1,068.7 | $ | 1,013.9 | |||||
| Deferred Gain - end of period | 94.0 | 99.2 | 94.0 | 99.2 | |||||||||
| Accumulated other comprehensive loss, before taxes - end of period | 104.5 | 108.9 | 104.5 | 108.9 | |||||||||
| Income tax related to accumulated other comprehensive loss - end of period | (22.0 | ) | (22.9 | ) | (22.0 | ) | (22.9 | ) | |||||
| Adjusted stockholders' equity - end of period | 1,245.2 | 1,199.1 | 1,245.2 | 1,199.1 | |||||||||
| Adjusted stockholders' equity - beginning of period | 1,232.5 | 1,175.8 | 1,199.1 | 1,189.2 | |||||||||
| Average adjusted stockholders' equity (1) | D | $ | 1,238.9 | $ | 1,187.5 | $ | 1,222.2 | $ | 1,194.2 | ||||
| Return on stockholders' equity | A / C | 2.6 | % | 4.7 | % | 11.4 | % | 12.1 | % | ||||
| Annualized return on stockholders' equity | 10.5 | 18.9 | |||||||||||
| Adjusted return on stockholders' equity (1) | B / D | 2.3 | 3.0 | 7.7 | 8.5 | ||||||||
| Annualized adjusted return on stockholders' equity (1) | 9.3 | 12.2 | |||||||||||
| (1) See Page 12 for information regarding our use of Non-GAAP Financial Measures. | |||||||||||||
| EMPLOYERS HOLDINGS, INC. Combined Ratios (unaudited) $ in millions, except per share amounts | |||||||||||||||
| Three Months Ended | Years Ended | ||||||||||||||
| December 31, | December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net premiums earned | A | $ | 190.2 | $ | 187.5 | $ | 749.5 | $ | 721.9 | ||||||
| Losses and LAE incurred | B | 113.2 | 92.9 | 456.2 | 405.7 | ||||||||||
| Amortization of deferred reinsurance gain - losses | 1.6 | 1.5 | 6.1 | 6.3 | |||||||||||
| Amortization of deferred reinsurance gain - contingent commission | — | 0.3 | 0.8 | 1.5 | |||||||||||
| LPT reserve adjustment | (1.7 | ) | (0.9 | ) | (1.7 | ) | (0.9 | ) | |||||||
| LPT contingent commission adjustments | — | 0.3 | 0.4 | 0.3 | |||||||||||
| Losses and LAE excluding LPT (1) | C | $ | 113.1 | $ | 94.1 | $ | 461.8 | $ | 412.9 | ||||||
| Prior year loss reserve development | (9.1 | ) | (24.9 | ) | (18.4 | ) | (44.9 | ) | |||||||
| Losses and LAE excluding LPT - current accident year | D | $ | 122.2 | $ | 119.0 | $ | 480.2 | $ | 457.8 | ||||||
| Commission expense | E | $ | 24.4 | $ | 26.3 | $ | 101.2 | $ | 100.0 | ||||||
| Underwriting and general and administrative expense | F | $ | 44.2 | $ | 46.1 | $ | 176.5 | $ | 180.0 | ||||||
| GAAP combined ratio: | |||||||||||||||
| Loss and LAE ratio | B/A | 59.5 | % | 49.5 | % | 60.9 | % | 56.2 | % | ||||||
| Commission expense ratio | E/A | 12.8 | 14.0 | 13.5 | 13.9 | ||||||||||
| Underwriting and general and administrative expense ratio | F/A | 23.2 | 24.6 | 23.5 | 24.9 | ||||||||||
| GAAP combined ratio | 95.5 | % | 88.1 | % | 97.9 | % | 95.0 | % | |||||||
| Combined ratio excluding LPT: (1) | |||||||||||||||
| Loss and LAE ratio excluding LPT | C/A | 59.5 | % | 50.2 | % | 61.6 | % | 57.2 | % | ||||||
| Commission expense ratio | E/A | 12.8 | 14.0 | 13.5 | 13.9 | ||||||||||
| Underwriting and general and administrative expense ratio | F/A | 23.2 | 24.6 | 23.5 | 24.9 | ||||||||||
| Combined ratio excluding LPT | 95.5 | % | 88.8 | % | 98.6 | % | 96.0 | % | |||||||
| Combined ratio excluding LPT: current accident year: (1) | |||||||||||||||
| Loss and LAE ratio excluding LPT | D/A | 64.2 | % | 63.5 | % | 64.1 | % | 63.4 | % | ||||||
| Commission expense ratio | E/A | 12.8 | 14.0 | 13.5 | 13.9 | ||||||||||
| Underwriting and general and administrative expenses ratio | F/A | 23.2 | 24.6 | 23.5 | 24.9 | ||||||||||
| Combined ratio excluding LPT: current accident year | 100.2 | % | 102.1 | % | 101.1 | % | 102.2 | % | |||||||
| (1) See Page 12 for information regarding our use of Non-GAAP Financial Measures. | |||||||||||||||
| EMPLOYERS HOLDINGS, INC. Roll-forward of Unpaid Losses and LAE (unaudited) $ in millions | ||||||||||||||||
| Three Months Ended | Years Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Unpaid losses and LAE at beginning of period | $ | 1,836.5 | $ | 1,913.4 | $ | 1,884.5 | $ | 1,960.7 | ||||||||
| Less reinsurance recoverable on unpaid losses and LAE | 413.1 | 426.6 | 428.4 | 445.4 | ||||||||||||
| Net unpaid losses and LAE at beginning of period | 1,423.4 | 1,486.8 | 1,456.1 | 1,515.3 | ||||||||||||
| Losses and LAE incurred: | ||||||||||||||||
| Current year | 122.2 | 119.1 | 480.2 | 457.8 | ||||||||||||
| Prior years - voluntary business | (8.6 | ) | (24.6 | ) | (17.9 | ) | (44.6 | ) | ||||||||
| Prior years - involuntary business | (0.5 | ) | (0.3 | ) | (0.5 | ) | (0.3 | ) | ||||||||
| Total losses incurred | 113.1 | 94.2 | 461.8 | 412.9 | ||||||||||||
| Losses and LAE paid: | ||||||||||||||||
| Current year | 57.9 | 47.6 | 127.1 | 111.7 | ||||||||||||
| Prior years | 82.8 | 77.3 | 395.0 | 360.4 | ||||||||||||
| Total paid losses | 140.7 | 124.9 | 522.1 | 472.1 | ||||||||||||
| Net unpaid losses and LAE at end of period | 1,395.8 | 1,456.1 | 1,395.8 | 1,456.1 | ||||||||||||
| Reinsurance recoverable, excluding CECL allowance, on unpaid losses and LAE | 412.4 | 428.4 | 412.4 | 428.4 | ||||||||||||
| Unpaid losses and LAE at end of period | $ | 1,808.2 | $ | 1,884.5 | $ | 1,808.2 | $ | 1,884.5 | ||||||||
| Total losses and LAE shown in the above table exclude amortization of the Deferred Gain, LPT Reserve Adjustments, and LPT Contingent Commission Adjustments, which totaled | ||||||||||||||||
| EMPLOYERS HOLDINGS, INC. Consolidated Investment Portfolio (unaudited) $ in millions | ||||||||||||||
| December 31, 2024 | December 31, 2023 | |||||||||||||
| Investment Positions: | Cost or Amortized Cost (1) | Net Unrealized Gain (Loss) | Fair Value | % | Fair Value | % | ||||||||
| Fixed maturity securities | $ | 2,203.1 | $ | (104.6) | $ | 2,097.4 | 83 | % | $ | 1,936.3 | 77 | % | ||
| Equity securities | 150.7 | 109.1 | 259.8 | 10 | 217.2 | 9 | ||||||||
| Other invested assets | 90.9 | 15.7 | 106.6 | 4 | 91.5 | 4 | ||||||||
| Short-term investments | 0.1 | — | 0.1 | — | 33.1 | 1 | ||||||||
| Cash and cash equivalents | 68.3 | — | 68.3 | 3 | 226.4 | 9 | ||||||||
| Restricted cash and cash equivalents | 0.2 | — | 0.2 | — | 0.2 | — | ||||||||
| Total investments and cash | $ | 2,513.3 | $ | 20.2 | $ | 2,532.4 | 100 | % | $ | 2,504.7 | 100 | % | ||
| Breakout of Fixed Maturity Securities: | ||||||||||||||
| U.S. Treasuries and Agencies | $ | 61.4 | $ | (2.1 | ) | $ | 59.3 | 3 | % | $ | 60.5 | 3 | % | |
| States and Municipalities | 163.0 | (3.7 | ) | 159.3 | 8 | 210.2 | 11 | |||||||
| Corporate Securities | 849.2 | (46.0 | ) | 803.0 | 38 | 895.8 | 46 | |||||||
| Mortgage-Backed Securities | 733.1 | (47.9 | ) | 684.9 | 33 | 426.0 | 22 | |||||||
| Asset-Backed Securities | 216.0 | (2.0 | ) | 214.0 | 10 | 128.0 | 7 | |||||||
| Collateralized loan obligations | 35.5 | (0.2 | ) | 35.3 | 2 | 91.5 | 5 | |||||||
| Bank loans and other | 144.9 | (2.7 | ) | 141.6 | 7 | 124.3 | 6 | |||||||
| Total fixed maturity securities | $ | 2,203.1 | $ | (104.6 | ) | $ | 2,097.4 | 100 | % | $ | 1,936.3 | 100 | % | |
| Weighted average ending book yield on fixed income securities, cash, and cash equivalents | 4.5 | % | 4.3 | % | ||||||||||
| Average credit quality (S&P) | A+ | A | ||||||||||||
| Duration | 4.5 | 4.5 | ||||||||||||
| (1) Amortized cost excludes an allowance for current expected credit losses (CECL) of | ||||||||||||||
| EMPLOYERS HOLDINGS, INC. Book Value Per Share (unaudited) $ in millions, except per share amounts | |||||||||
| December 31, 2024 | December 31, 2023 | ||||||||
| Numerators: | |||||||||
| Stockholders' equity | A | $ | 1,068.7 | $ | 1,013.9 | ||||
| Deferred Gain | 94.0 | 99.2 | |||||||
| Stockholders' equity including the Deferred Gain (1) | B | 1,162.7 | 1,113.1 | ||||||
| Accumulated other comprehensive loss, before taxes | 104.5 | 108.9 | |||||||
| Income taxes related to accumulated other comprehensive loss, before taxes | (22.0 | ) | (22.9 | ) | |||||
| Adjusted stockholders' equity (1) | C | $ | 1,245.2 | $ | 1,199.1 | ||||
| Denominator (shares outstanding) | D | 24,556,706 | 25,369,753 | ||||||
| Book value per share (1) | A / D | $ | 43.52 | $ | 39.96 | ||||
| Book value per share including the Deferred Gain (1) | B / D | 47.35 | 43.88 | ||||||
| Adjusted book value per share (1) | C / D | 50.71 | 47.26 | ||||||
| Cash dividends declared per share | $ | 1.18 | $ | 1.10 | |||||
| YTD Change in: (2) | |||||||||
| Book value per share | 11.9 | % | 18.1 | % | |||||
| Book value per share including the Deferred Gain | 10.6 | 16.3 | |||||||
| Adjusted book value per share | 9.8 | 10.5 | |||||||
| (1) See Page 12 for information regarding our use of Non-GAAP Financial Measures. (2) Reflects the change per share after taking into account dividends declared in the period. | |||||||||
| EMPLOYERS HOLDINGS, INC. Earnings Per Share (unaudited) $ in millions, except per share amounts | ||||||||||||||
| Three Months Ended | Years Ended | |||||||||||||
| December 31, | December 31, | |||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||
| Numerators: | ||||||||||||||
| Net income | A | $ | 28.3 | $ | 45.6 | $ | 118.6 | $ | 118.1 | |||||
| Impact of the LPT Agreement | 0.1 | (1.2 | ) | (5.6 | ) | (7.2 | ) | |||||||
| Net income excluding LPT (1) | B | $ | 28.4 | $ | 44.4 | $ | 113.0 | $ | 110.9 | |||||
| Net realized and unrealized (gains) losses on investments | 0.4 | (12.1 | ) | (24.1 | ) | (22.7 | ) | |||||||
| Lease termination and asset impairment charges | — | 1.6 | — | 11.0 | ||||||||||
| Income tax (benefit) expense related to items excluded from Net income | (0.1 | ) | 2.2 | 5.1 | 2.5 | |||||||||
| Adjusted net income (1) | C | $ | 28.7 | $ | 36.1 | $ | 94.0 | $ | 101.7 | |||||
| Denominators: | ||||||||||||||
| Average common shares outstanding (basic) | D | 24,725,425 | 25,645,821 | 25,050,605 | 26,368,801 | |||||||||
| Average common shares outstanding (diluted) | E | 24,902,459 | 25,801,380 | 25,194,814 | 26,523,651 | |||||||||
| Earnings per share: | ||||||||||||||
| Basic | A / D | $ | 1.14 | $ | 1.78 | $ | 4.73 | $ | 4.48 | |||||
| Diluted | A / E | 1.14 | 1.77 | 4.71 | 4.45 | |||||||||
| Earnings per share excluding LPT: (1) | ||||||||||||||
| Basic | B / D | 1.15 | 1.73 | 4.51 | 4.21 | |||||||||
| Diluted | B / E | 1.14 | 1.72 | 4.49 | 4.18 | |||||||||
| Adjusted earnings per share: (1) | ||||||||||||||
| Basic | C / D | $ | 1.16 | $ | 1.41 | $ | 3.75 | $ | 3.86 | |||||
| Diluted | C / E | 1.15 | 1.40 | 3.73 | 3.83 | |||||||||
| (1) See Page 12 for information regarding our use of Non-GAAP Financial Measures. | ||||||||||||||
Non-GAAP Financial Measures
Within this earnings release we present the following measures, each of which are "non-GAAP financial measures." A reconciliation of these measures to the Company's most directly comparable GAAP financial measures is included herein. Management believes that these non-GAAP measures are important to the Company's investors, analysts and other interested parties who benefit from having an objective and consistent basis for comparison with other companies within our industry. Management further believes that these measures are more relevant than comparable GAAP measures in evaluating our financial performance.
The LPT Agreement is a non-recurring transaction that no longer provides any ongoing cash benefits to the Company. Management believes that providing non-GAAP measures that exclude the effects of the LPT Agreement (amortization of deferred reinsurance gain, adjustments to LPT Agreement ceded reserves and adjustments to the contingent commission receivable) is useful in providing investors, analysts and other interested parties a meaningful understanding of the Company's ongoing underwriting performance.
Deferred reinsurance gain (Deferred Gain) reflects the unamortized gain from the LPT Agreement. This gain has been deferred and is being amortized using the recovery method, whereby the amortization is determined by the proportion of actual reinsurance recoveries to total estimated recoveries, except for the contingent profit commission, which was amortized through June 30, 2024, the date of its final determination. Amortization is reflected in losses and LAE incurred.
Adjusted net income (see Page 5 for calculations) is net income excluding the effects of the LPT Agreement, and net realized and unrealized gains and losses on investments (net of tax), and any miscellaneous non-recurring transactions (net of tax). Management believes that providing this non-GAAP measures is helpful to investors, analysts and other interested parties in identifying trends in the Company's operating performance because such items have limited significance to its ongoing operations or can be impacted by both discretionary and other economic factors and may not represent operating trends.
Stockholders' equity including the Deferred Gain (see Page 10 for calculations) is stockholders' equity including the Deferred Gain. Management believes that providing this non-GAAP measure is useful in providing investors, analysts and other interested parties a meaningful measure of the Company's total underwriting capital.
Adjusted stockholders' equity (see Page 10 for calculations) is stockholders' equity including the Deferred Gain, less accumulated other comprehensive income (net of tax). Management believes that providing this non-GAAP measure is useful to investors, analysts and other interested parties since it serves as the denominator to the Company's adjusted return on stockholders' equity metric.
Return on stockholders' equity and Adjusted return on stockholders' equity (see Page 6 for calculations). Management believes that these profitability measures are widely used by our investors, analysts and other interested parties.
Book value per share, Book value per share including the Deferred Gain, and Adjusted book value per share (see Page 10 for calculations). Management believes that these valuation measures are widely used by our investors, analysts and other interested parties.
Net income excluding LPT (see Page 5 for calculations). Management believes that these performance and underwriting measures are widely used by our investors, analysts and other interested parties.
FAQ
What was Employers Holdings (EIG) net income for full-year 2024?
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