Employers Holdings, Inc. Reports Second Quarter 2024 Results and Declares Regular Quarterly Dividend of $0.30 per Share
Employers Holdings, Inc. (NYSE:EIG) reported its Q2 2024 financial results, showing a mixed performance. Key highlights include:
- Net income per diluted share of $1.25, down from $1.30 in Q2 2023
- Gross premiums written increased 5% to $207.9 million
- Net premiums earned rose 6% to $187.8 million
- GAAP combined ratio of 94.2% (95.4% excluding LPT), up from 90.4% (91.5% excluding LPT)
- Underwriting and general and administrative expense ratio improved to 22.0% from 26.0%
- Record number of ending policies in-force at 128,522, up 3% year-over-year
The company declared a regular quarterly dividend of $0.30 per share and continued its share repurchase program, buying back 461,789 shares at an average price of $41.53 per share during Q2 2024.
Employers Holdings, Inc. (NYSE:EIG) ha riportato i suoi risultati finanziari del secondo trimestre 2024, evidenziando una performance mista. I punti salienti includono:
- Utile netto per azione diluita di $1,25, in calo rispetto a $1,30 nel secondo trimestre 2023
- Premi lordi scritti aumentati del 5% a $207,9 milioni
- Premi netti guadagnati aumentati del 6% a $187,8 milioni
- Rapporto combinato GAAP del 94,2% (95,4% escludendo LPT), in aumento rispetto al 90,4% (91,5% escludendo LPT)
- Il rapporto delle spese di sottoscrizione e amministrative generali è migliorato al 22,0% rispetto al 26,0%
- Numero record di polizze attive alla fine del periodo, con 128.522 polizze, in aumento del 3% rispetto all’anno precedente
La società ha dichiarato un dividendo trimestrale regolare di $0,30 per azione e ha continuato il suo programma di riacquisto di azioni, acquistando 461.789 azioni a un prezzo medio di $41,53 per azione durante il secondo trimestre 2024.
Employers Holdings, Inc. (NYSE:EIG) informó sobre sus resultados financieros del segundo trimestre de 2024, mostrando un rendimiento mixto. Los aspectos más destacados incluyen:
- Ingreso neto por acción diluida de $1,25, una disminución respecto a $1,30 en el segundo trimestre de 2023
- Primas brutas escritas aumentaron un 5% a $207,9 millones
- Primas netas ganadas aumentaron un 6% a $187,8 millones
- Ratio combinado GAAP del 94,2% (95,4% excluyendo LPT), en aumento desde el 90,4% (91,5% excluyendo LPT)
- La relación de gastos de suscripción y administrativos generales mejoró al 22,0% desde el 26,0%
- Número récord de pólizas activas al final del período, con 128.522 pólizas, un aumento del 3% interanual
La compañía declaró un dividendo trimestral regular de $0,30 por acción y continuó su programa de recompra de acciones, comprando 461.789 acciones a un precio promedio de $41,53 por acción durante el segundo trimestre de 2024.
Employers Holdings, Inc. (NYSE:EIG)는 2024년 2분기 재무 결과를 보고하며 혼합 성과를 보였습니다. 주요 내용은 다음과 같습니다:
- 희석 주당 순이익이 $1.25로, 2023년 2분기 $1.30에서 감소
- 총 보험료 수입이 5% 증가하여 $207.9 백만
- 순보험료 수익이 6% 증가하여 $187.8 백만
- GAAP 합산 비율이 94.2% (LPT 제외 시 95.4%)로, 90.4% (LPT 제외 시 91.5%)에서 증가
- 인수 및 일반 관리비 비율이 26.0%에서 22.0%로 개선
- 연말 현재 유지되는 보험증권 수가 128,522건으로, 전년 대비 3% 증가하여 기록적인 수치입니다
회사는 주당 $0.30의 정기 분기 배당금을 선언하고, 2024년 2분기 동안 주당 평균 $41.53에 461,789주를 매입하여 자사주 매입 프로그램을 계속했습니다.
Employers Holdings, Inc. (NYSE:EIG) a publié ses résultats financiers du deuxième trimestre 2024, affichant des performances mitigées. Les points saillants incluent :
- Revenu net par action diluée de 1,25 $, en baisse par rapport à 1,30 $ au deuxième trimestre 2023
- Les primes brutes souscrites ont augmenté de 5 % pour atteindre 207,9 millions de dollars
- Les primes nettes gagnées ont augmenté de 6 % pour atteindre 187,8 millions de dollars
- Ratio combiné selon les normes GAAP de 94,2 % (95,4 % hors LPT), en hausse par rapport à 90,4 % (91,5 % hors LPT)
- Le ratio des dépenses d'underwriting et administratives a été amélioré à 22,0 % contre 26,0 %
- Nombre record de polices en vigueur à la fin de la période avec 128 522, en hausse de 3 % par rapport à l'année précédente
L'entreprise a déclaré un dividende trimestriel régulier de 0,30 $ par action et a poursuivi son programme de rachat d'actions, ayant racheté 461 789 actions à un prix moyen de 41,53 $ par action au cours du deuxième trimestre 2024.
Employers Holdings, Inc. (NYSE:EIG) hat seine Finanzergebnisse für das zweite Quartal 2024 veröffentlicht und zeigt eine gemischte Leistung. Die wichtigsten Ergebnisse sind:
- Nettoergebnis pro verwässerter Aktie von $1,25, ein Rückgang von $1,30 im zweiten Quartal 2023
- Bruttoeinnahmen aus Prämien stiegen um 5% auf $207,9 Millionen
- Nettoprämien stiegen um 6% auf $187,8 Millionen
- GAAP-Kombinationsquote von 94,2% (95,4% ohne LPT), ansteigend von 90,4% (91,5% ohne LPT)
- Das Verhältnis von Underwriting- und allgemeinen Verwaltungskosten verbesserte sich auf 22,0% von 26,0%
- Rekordanzahl von aktiven Policen am Ende des Berichtszeitraums mit 128.522, ein Anstieg um 3% im Vergleich zum Vorjahr
Das Unternehmen hat eine regelmäßige vierteljährliche Dividende von $0,30 pro Aktie erklärt und sein Aktienrückkaufprogramm fortgesetzt, indem es im zweiten Quartal 2024 461.789 Aktien zu einem Durchschnittspreis von $41,53 pro Aktie zurückgekauft hat.
- None.
- None.
Company to Host Conference Call on Thursday, August 1, 2024, at 11:00 a.m. Eastern Daylight Time
HENDERSON, Nev., July 31, 2024 (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 select businesses engaged in low-to-medium hazard industries, today reported financial results for its second quarter ended June 30, 2024.
Financial Highlights:
(All comparisons vs. the second quarter of 2023).
- Net income per diluted share of
$1.25 , versus$1.30 ; - Adjusted net income per diluted share of
$1.10 , versus$1.17 ; - Gross premiums written of
$207.9 million , an increase of5% ; - Net premiums earned of
$187.8 million , an increase of6% ; - Net favorable prior year loss reserve development of
$9.1 million , versus$19.7 million ; - GAAP combined ratio of
94.2% (95.4% excluding LPT), versus90.4% (91.5% excluding LPT); - Underwriting and general and administrative expense ratio of
22.0% , versus26.0% ; - Net investment income of
$26.9 million , an increase of$0.1 million , with interest and financing expenses related to investing activities of less than$0.1 million , a decrease of$1.9 million ; and - Record number of ending policies in-force of 128,522.
Management Commentary
Chief Executive Officer Katherine Antonello commented: “Higher new and renewal premiums, strong and steady net investment income and continued net investment gains drove year-over-year increases in revenue for both the second quarter and the first six months of 2024. We also ended the period with yet another record number of policies in-force, which were up
We recorded our current accident year loss and LAE ratio on voluntary business at
Our commission expense ratio was
Our resulting combined ratio excluding LPT was
Lastly, we returned
Summary of Second Quarter 2024 Results
(All comparisons vs. the second quarter of 2023, unless otherwise noted).
Gross premiums written were
Losses and loss adjustment expenses were
Commission expenses were
Underwriting and general and administrative expenses were
Net investment income was
Net realized and unrealized gains on investments reflected on the income statement were
Interest and financing expenses were less than
Income tax expense was
The Company’s book value per share including the deferred gain of
Share Repurchases and Third Quarter 2024 Dividend Declaration
During the second quarter of 2024, the Company repurchased 461,789 shares of its common stock at an average price of
On July 31, 2024, the Company’s Board of Directors declared a regular quarterly dividend of
Earnings Conference Call and Webcast
The Company will host a conference call on Thursday, August 1, 2024 at 11:00 a.m. Eastern Daylight Time / 8:00 a.m. Pacific Daylight 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
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.
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.
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 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® and America’s small business insurance specialist® are registered trademarks of EIG Services, Inc. Employers Holdings, Inc. is a holding company with subsidiaries that are specialty providers of workers' compensation insurance and services focused on small and select businesses engaged in low-to-medium hazard industries. The Company operates throughout the United States, with the exception of 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 the A.M. Best Company. Not all companies do business in all jurisdictions. See www.employers.com and www.cerity.com for coverage availability.
Contact Information
Mike Paquette (775) 327-2562 or mpaquette@employers.com
| EMPLOYERS HOLDINGS, INC. Table of Contents | ||
| Page | ||
| 1 | Consolidated Financial Highlights | |
| 2 | Summary Consolidated Balance Sheets | |
| 3 | Summary Consolidated Income Statements | |
| 4 | Return on Equity | |
| 5 | Combined Ratios | |
| 6 | Roll-forward of Unpaid Losses and LAE | |
| 7 | Consolidated Investment Portfolio | |
| 8 | Book Value Per Share | |
| 9 | Earnings Per Share | |
| 10 | Non-GAAP Financial Measures | |
| EMPLOYERS HOLDINGS, INC. Consolidated Financial Highlights (unaudited) $ in millions, except per share amounts | ||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||
| June 30, | June 30, | |||||||||||||||||||||||
| 2024 | 2023 | % change | 2024 | 2023 | % change | |||||||||||||||||||
| Selected financial highlights: | ||||||||||||||||||||||||
| Gross premiums written | $ | 207.9 | $ | 198.4 | 5 | % | $ | 418.7 | $ | 393.3 | 6 | % | ||||||||||||
| Net premiums written | 206.1 | 196.6 | 5 | 415.2 | 389.7 | 7 | ||||||||||||||||||
| Net premiums earned | 187.8 | 177.1 | 6 | 372.6 | 349.8 | 7 | ||||||||||||||||||
| Net investment income | 26.9 | 26.8 | — | 53.8 | 54.4 | (1 | ) | |||||||||||||||||
| Net income excluding LPT(1) | 29.6 | 32.9 | (10 | ) | 55.8 | 54.5 | 2 | |||||||||||||||||
| Adjusted net income(1) | 27.9 | 31.4 | (11 | ) | 45.1 | 47.9 | (6 | ) | ||||||||||||||||
| Net Income before income taxes | 40.0 | 43.8 | (9 | ) | 75.3 | 72.8 | 3 | |||||||||||||||||
| Net Income | 31.7 | 34.9 | (9 | ) | 60.0 | 58.5 | 3 | |||||||||||||||||
| Comprehensive income | 29.6 | 19.5 | 52 | 47.0 | 66.9 | (30 | ) | |||||||||||||||||
| Total assets | 3,550.0 | 3,615.6 | (2 | ) | ||||||||||||||||||||
| Stockholders' equity | 1,022.9 | 951.7 | 7 | |||||||||||||||||||||
| Stockholders' equity including the Deferred Gain(2) | 1,118.2 | 1,053.8 | 6 | |||||||||||||||||||||
| Adjusted stockholders' equity(2) | 1,217.2 | 1,184.3 | 3 | |||||||||||||||||||||
| Annualized adjusted return on stockholders' equity(3) | 9.2 | % | 10.6 | % | (13 | )% | 7.5 | % | 8.1 | % | (7 | )% | ||||||||||||
| Amounts per share: | ||||||||||||||||||||||||
| Cash dividends declared per share | $ | 0.30 | $ | 0.28 | 7 | % | $ | 0.58 | $ | 0.54 | 7 | % | ||||||||||||
| Earnings per diluted share(4) | 1.25 | 1.30 | (4 | ) | 2.36 | 2.16 | 9 | |||||||||||||||||
| Earnings per diluted share excluding LPT(4) | 1.17 | 1.23 | (5 | ) | 2.19 | 2.01 | 9 | |||||||||||||||||
| Adjusted earnings per diluted share(4) | 1.10 | 1.17 | (6 | ) | 1.77 | 1.77 | — | |||||||||||||||||
| Book value per share(2) | 41.09 | 36.49 | 13 | |||||||||||||||||||||
| Book value per share including the Deferred Gain(2) | 44.91 | 40.41 | 11 | |||||||||||||||||||||
| Adjusted book value per share(2) | 48.89 | 45.41 | 8 | |||||||||||||||||||||
| Combined ratio excluding LPT:(5): | ||||||||||||||||||||||||
| Loss and loss adjustment expense ratio: | ||||||||||||||||||||||||
| Current Year | 63.9 | % | 63.4 | % | 64.1 | % | 63.4 | % | ||||||||||||||||
| Prior Year | (4.8 | ) | (11.2 | ) | (2.5 | )% | (5.7 | ) | ||||||||||||||||
| Loss and loss adjustment expense ratio | 59.1 | % | 52.2 | % | 61.6 | % | 57.7 | % | ||||||||||||||||
| Commission expense ratio | 14.3 | % | 13.3 | % | 14.0 | % | 13.5 | % | ||||||||||||||||
| Underwriting and general and administrative expense ratio | 22.0 | % | 26.0 | % | 23.4 | % | 25.8 | % | ||||||||||||||||
| Combined ratio excluding LPT | 95.4 | % | 91.5 | % | 99.0 | % | 97.0 | % | ||||||||||||||||
| (1) See Page 3 for calculations and Page 10 for information regarding our use of Non-GAAP Financial Measures. | ||||||||||||||||||||||||
| (2) See Page 8 for calculations and Page 10 for information regarding our use of Non-GAAP Financial Measures. | ||||||||||||||||||||||||
| (3) See Page 4 for calculations and Page 10 for information regarding our use of Non-GAAP Financial Measures. | ||||||||||||||||||||||||
| (4) See Page 9 for description and calculations and Page 10 for information regarding our use of Non-GAAP Financial Measures. | ||||||||||||||||||||||||
| (5) See Pages 5 for details and Page 10 for information regarding our use of Non-GAAP Financial Measures. | ||||||||||||||||||||||||
| EMPLOYERS HOLDINGS, INC. Summary Consolidated Balance Sheets (unaudited) $ in millions, except per share amounts | ||||||||
| June 30, 2024 | December 31, 2023 | |||||||
| ASSETS | ||||||||
| Investments, cash and cash equivalents | $ | 2,471.8 | $ | 2,504.7 | ||||
| Accrued investment income | 16.7 | 16.3 | ||||||
| Premiums receivable, net | 399.8 | 359.4 | ||||||
| Reinsurance recoverable, net of allowance, on paid and unpaid losses and LAE | 423.7 | 433.8 | ||||||
| Deferred policy acquisition costs | 62.3 | 55.6 | ||||||
| Deferred income tax asset, net | 42.1 | 43.4 | ||||||
| Contingent commission receivable—LPT Agreement | 14.6 | 14.2 | ||||||
| Other assets | 119.0 | 123.0 | ||||||
| Total assets | $ | 3,550.0 | $ | 3,550.4 | ||||
| LIABILITIES | ||||||||
| Unpaid losses and LAE | $ | 1,850.9 | $ | 1,884.5 | ||||
| Unearned premiums | 419.4 | 379.7 | ||||||
| Commissions and premium taxes payable | 65.2 | 66.0 | ||||||
| Deferred Gain | 95.3 | 99.2 | ||||||
| Other liabilities | 96.3 | 107.1 | ||||||
| Total liabilities | $ | 2,527.1 | $ | 2,536.5 | ||||
| STOCKHOLDERS' EQUITY | ||||||||
| Common stock and additional paid-in capital | $ | 421.5 | $ | 420.4 | ||||
| Retained earnings | 1,429.4 | 1,384.3 | ||||||
| Accumulated other comprehensive loss | (99.0 | ) | (86.0 | ) | ||||
| Treasury stock, at cost | (729.0 | ) | (704.8 | ) | ||||
| Total stockholders’ equity | 1,022.9 | 1,013.9 | ||||||
| Total liabilities and stockholders’ equity | $ | 3,550.0 | $ | 3,550.4 | ||||
| Stockholders' equity including the Deferred Gain (1) | $ | 1,118.2 | $ | 1,113.1 | ||||
| Adjusted stockholders' equity (1) | 1,217.2 | 1,199.1 | ||||||
| Book value per share (1) | $ | 41.09 | $ | 39.96 | ||||
| Book value per share including the Deferred Gain(1) | 44.91 | 43.88 | ||||||
| Adjusted book value per share (1) | 48.89 | 47.26 | ||||||
| (1) See Page 8 for calculations and Page 10 for information regarding our use of Non-GAAP Financial Measures. | ||||||||
| EMPLOYERS HOLDINGS, INC. Summary Consolidated Income Statements (unaudited) $ in millions | |||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| June 30, | June 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenues: | |||||||||||||||
| Net premiums earned | $ | 187.8 | $ | 177.1 | $ | 372.6 | $ | 349.8 | |||||||
| Net investment income | 26.9 | 26.8 | 53.8 | 54.4 | |||||||||||
| Net realized and unrealized gains on investments(1) | 2.2 | 11.3 | 13.6 | 17.7 | |||||||||||
| Other income (loss) | 0.1 | — | 0.1 | (0.2 | ) | ||||||||||
| Total revenues | 217.0 | 215.2 | 440.1 | 421.7 | |||||||||||
| Expenses: | |||||||||||||||
| Losses and LAE incurred | (108.8 | ) | (90.5 | ) | (225.3 | ) | (197.9 | ) | |||||||
| Commission expense | (26.8 | ) | (23.6 | ) | (52.3 | ) | (47.1 | ) | |||||||
| Underwriting and general and administrative expenses | (41.4 | ) | (46.0 | ) | (87.2 | ) | (90.3 | ) | |||||||
| Interest and financing expenses | — | (1.9 | ) | — | (4.2 | ) | |||||||||
| Other expenses | — | (9.4 | ) | — | (9.4 | ) | |||||||||
| Total expenses | (177.0 | ) | (171.4 | ) | (364.8 | ) | (348.9 | ) | |||||||
| Net income before income taxes | 40.0 | 43.8 | 75.3 | 72.8 | |||||||||||
| Income tax expense | (8.3 | ) | (8.9 | ) | (15.3 | ) | (14.3 | ) | |||||||
| Net Income | 31.7 | 34.9 | 60.0 | 58.5 | |||||||||||
| Unrealized AFS investment (losses) gains arising during the period, net of tax(2) | (4.9 | ) | (15.5 | ) | (16.5 | ) | 7.1 | ||||||||
| Reclassification adjustment for net realized AFS investment losses in net income, net of tax(2) | 2.8 | 0.1 | 3.5 | 1.3 | |||||||||||
| Total comprehensive income | $ | 29.6 | $ | 19.5 | $ | 47.0 | $ | 66.9 | |||||||
| Net Income | $ | 31.7 | $ | 34.9 | $ | 60.0 | $ | 58.5 | |||||||
| Amortization of the Deferred Gain - losses | (1.5 | ) | (1.6 | ) | (3.0 | ) | (3.2 | ) | |||||||
| Amortization of the Deferred Gain - contingent commission | (0.4 | ) | (0.4 | ) | (0.8 | ) | (0.8 | ) | |||||||
| LPT contingent commission adjustments | (0.2 | ) | — | (0.4 | ) | — | |||||||||
| Net income excluding LPT Agreement (3) | 29.6 | 32.9 | 55.8 | 54.5 | |||||||||||
| Net realized and unrealized gains on investments | (2.2 | ) | (11.3 | ) | (13.6 | ) | (17.7 | ) | |||||||
| Lease termination and asset impairment charges | — | 9.4 | — | 9.4 | |||||||||||
| Income tax expense related to items excluded from Net income | 0.5 | 0.4 | 2.9 | 1.7 | |||||||||||
| Adjusted net income | $ | 27.9 | $ | 31.4 | $ | 45.1 | $ | 47.9 | |||||||
| (1) Includes net realized and unrealized gains on equity securities and other investments of | |||||||||||||||
| (2) AFS = Available for Sale securities. | |||||||||||||||
| (3) See Page 10 regarding our use of Non-GAAP Financial Measures. | |||||||||||||||
| EMPLOYERS HOLDINGS, INC. Return on Equity (unaudited) $ in millions | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net income | A | $ | 31.7 | $ | 34.9 | $ | 60.0 | $ | 58.5 | |||||||
| Impact of the LPT Agreement | (2.1 | ) | (2.0 | ) | (4.2 | ) | (4.0 | ) | ||||||||
| Net realized and unrealized gains on investments | (2.2 | ) | (11.3 | ) | (13.6 | ) | (17.7 | ) | ||||||||
| Lease termination and asset impairment charges | — | 9.4 | — | 9.4 | ||||||||||||
| Income tax expense related to items excluded from Net income | 0.5 | 0.4 | 2.9 | 1.7 | ||||||||||||
| Adjusted net income (1) | B | 27.9 | 31.4 | 45.1 | 47.9 | |||||||||||
| Stockholders' equity - end of period | $ | 1,022.9 | $ | 951.7 | $ | 1,022.9 | $ | 951.7 | ||||||||
| Stockholders' equity - beginning of period | 1,018.9 | 974.1 | 1,013.9 | 944.2 | ||||||||||||
| Average stockholders' equity | C | 1,020.9 | 962.9 | 1,018.4 | 948.0 | |||||||||||
| Stockholders' equity - end of period | $ | 1,022.9 | $ | 951.7 | $ | 1,022.9 | $ | 951.7 | ||||||||
| Deferred Gain - end of period | 95.3 | 102.1 | 95.3 | 102.1 | ||||||||||||
| Accumulated other comprehensive loss - end of period | 125.3 | 165.2 | 125.3 | 165.2 | ||||||||||||
| Income taxes related to accumulated other comprehensive loss - end of period | (26.3 | ) | (34.7 | ) | (26.3 | ) | (34.7 | ) | ||||||||
| Adjusted stockholders' equity - end of period | 1,217.2 | 1,184.3 | 1,217.2 | 1,184.3 | ||||||||||||
| Adjusted stockholders' equity - beginning of period | 1,213.0 | 1,193.3 | 1,199.1 | 1,189.2 | ||||||||||||
| Average adjusted stockholders' equity (1) | D | 1,215.1 | 1,188.8 | 1,208.2 | 1,186.8 | |||||||||||
| Return on stockholders' equity | A / C | 3.1 | % | 3.6 | % | 5.9 | % | 6.2 | % | |||||||
| Annualized return on stockholders' equity | 12.4 | 14.5 | 11.8 | 12.3 | ||||||||||||
| Adjusted return on stockholders' equity (1) | B / D | 2.3 | % | 2.6 | % | 3.7 | % | 4.0 | % | |||||||
| Annualized adjusted return on stockholders' equity (1) | 9.2 | 10.6 | 7.5 | 8.1 | ||||||||||||
| (1) See Page 10 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 | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net premiums earned | A | $ | 187.8 | $ | 177.1 | $ | 372.6 | $ | 349.8 | |||||||
| Losses and LAE incurred | B | 108.8 | 90.5 | 225.3 | 197.9 | |||||||||||
| Amortization of deferred reinsurance gain - losses | 1.5 | 1.6 | 3.0 | 3.2 | ||||||||||||
| Amortization of deferred reinsurance gain - contingent commission | 0.4 | 0.4 | 0.8 | 0.8 | ||||||||||||
| LPT contingent commission adjustments | 0.2 | — | 0.4 | — | ||||||||||||
| Losses and LAE excluding LPT(1) | C | $ | 110.9 | $ | 92.5 | $ | 229.5 | $ | 201.9 | |||||||
| Prior year loss reserve development | (9.1 | ) | (19.7 | ) | (9.2 | ) | (19.9 | ) | ||||||||
| Losses and LAE excluding LPT - current accident year | D | $ | 120.0 | $ | 112.2 | $ | 238.7 | $ | 221.8 | |||||||
| Commission expense | E | $ | 26.8 | $ | 23.6 | $ | 52.3 | $ | 47.1 | |||||||
| Underwriting and general and administrative expense | F | $ | 41.4 | $ | 46.0 | $ | 87.2 | $ | 90.3 | |||||||
| GAAP combined ratio: | ||||||||||||||||
| Loss and LAE ratio | B/A | 57.9 | % | 51.1 | % | 60.5 | % | 56.6 | % | |||||||
| Commission expense ratio | E/A | 14.3 | 13.3 | 14.0 | 13.5 | |||||||||||
| Underwriting and general and administrative expense ratio | F/A | 22.0 | 26.0 | 23.4 | 25.8 | |||||||||||
| GAAP combined ratio | 94.2 | % | 90.4 | % | 97.9 | % | 95.9 | % | ||||||||
| Combined ratio excluding LPT:(1) | ||||||||||||||||
| Loss and LAE ratio excluding LPT | C/A | 59.1 | % | 52.2 | % | 61.6 | % | 57.7 | % | |||||||
| Commission expense ratio | E/A | 14.3 | 13.3 | 14.0 | 13.5 | |||||||||||
| Underwriting and general and administrative expense ratio | F/A | 22.0 | 26.0 | 23.4 | 25.8 | |||||||||||
| Combined ratio excluding LPT | 95.4 | % | 91.5 | % | 99.0 | % | 97.0 | % | ||||||||
| Combined ratio excluding LPT: current accident year:(1) | ||||||||||||||||
| Loss and LAE ratio excluding LPT | D/A | 63.9 | % | 63.4 | % | 64.1 | % | 63.4 | % | |||||||
| Commission expense ratio | E/A | 14.3 | 13.3 | 14.0 | 13.5 | |||||||||||
| Underwriting and general and administrative expenses ratio | F/A | 22.0 | 26.0 | 23.4 | 25.8 | |||||||||||
| Combined ratio excluding LPT: current accident year | 100.2 | % | 102.7 | % | 101.5 | % | 102.7 | % | ||||||||
| (1) See Page 10 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 | Six Months Ended | ||||||||||||||
| June 30, | June 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Unpaid losses and LAE at beginning of period | $ | 1,874.5 | $ | 1,953.7 | $ | 1,884.5 | $ | 1,960.7 | |||||||
| Reinsurance recoverable, excluding CECL allowance, on unpaid losses and LAE | 424.0 | 440.3 | 428.4 | 445.4 | |||||||||||
| Net unpaid losses and LAE at beginning of period | 1,450.5 | 1,513.4 | 1,456.1 | 1,515.3 | |||||||||||
| Losses and LAE incurred: | |||||||||||||||
| Current year losses | 120.0 | 112.2 | 238.7 | 221.8 | |||||||||||
| Prior year losses on voluntary business | (9.3 | ) | (20.0 | ) | (9.3 | ) | (20.0 | ) | |||||||
| Prior year losses on involuntary business | 0.2 | 0.3 | 0.1 | 0.1 | |||||||||||
| Total losses incurred | 110.9 | 92.5 | 229.5 | 201.9 | |||||||||||
| Losses and LAE paid: | |||||||||||||||
| Current year losses | 24.1 | 26.5 | 30.9 | 32.1 | |||||||||||
| Prior year losses | 104.7 | 88.4 | 222.1 | 194.1 | |||||||||||
| Total paid losses | 128.8 | 114.9 | 253.0 | 226.2 | |||||||||||
| Net unpaid losses and LAE at end of period | 1,432.6 | 1,491.0 | 1,432.6 | 1,491.0 | |||||||||||
| Reinsurance recoverable, excluding CECL allowance, on unpaid losses and LAE | 418.3 | 436.2 | 418.3 | 436.2 | |||||||||||
| Unpaid losses and LAE at end of period | $ | 1,850.9 | $ | 1,927.2 | $ | 1,850.9 | $ | 1,927.2 | |||||||
Total losses and LAE shown in the above table exclude amortization of the Deferred Gain and LPT contingent commission adjustments, which totaled
| EMPLOYERS HOLDINGS, INC. Consolidated Investment Portfolio (unaudited) $ in millions | ||||||||||||||||||||||
| June 30, 2024 | December 31, 2023 | |||||||||||||||||||||
| Investment Positions: | Cost or Amortized Cost (1) | Net Unrealized Gain (Loss) | Fair Value | % | Fair Value | % | ||||||||||||||||
| Fixed maturity securities | $ | 2,136.6 | $ | (125.3 | ) | $ | 2,009.4 | 81 | % | $ | 1,936.3 | 77 | % | |||||||||
| Equity securities | 140.1 | 98.2 | 238.3 | 10 | 217.2 | 9 | ||||||||||||||||
| Short-term investments | 30.9 | — | 30.9 | 1 | 33.1 | 1 | ||||||||||||||||
| Other invested assets | 86.5 | 11.0 | 97.5 | 4 | 91.5 | 4 | ||||||||||||||||
| Cash and cash equivalents | 95.5 | — | 95.5 | 4 | 226.4 | 9 | ||||||||||||||||
| Restricted cash and cash equivalents | 0.2 | — | 0.2 | — | 0.2 | — | ||||||||||||||||
| Total investments and cash | $ | 2,489.8 | $ | (16.1 | ) | $ | 2,471.8 | 100 | % | $ | 2,504.7 | 100 | % | |||||||||
| Breakout of Fixed Maturity Securities: | ||||||||||||||||||||||
| U.S. Treasuries and agencies | $ | 72.7 | $ | (2.9 | ) | $ | 69.8 | 3 | % | $ | 60.5 | 3 | % | |||||||||
| States and municipalities | 189.2 | (4.2 | ) | 185.0 | 9 | 210.2 | 11 | |||||||||||||||
| Corporate securities | 1,004.1 | (61.7 | ) | 941.7 | 47 | 895.8 | 46 | |||||||||||||||
| Mortgage-backed securities | 494.7 | (50.6 | ) | 443.7 | 22 | 426.0 | 22 | |||||||||||||||
| Asset-backed securities | 180.7 | (3.3 | ) | 177.2 | 9 | 128.0 | 7 | |||||||||||||||
| Collateralized loan obligations | 63.6 | (0.1 | ) | 63.5 | 3 | 91.5 | 5 | |||||||||||||||
| Bank loans and other | 131.6 | (2.5 | ) | 128.5 | 6 | 124.3 | 6 | |||||||||||||||
| Total fixed maturity securities | $ | 2,136.6 | $ | (125.3 | ) | $ | 2,009.4 | 100 | % | $ | 1,936.3 | 100 | % | |||||||||
| Weighted average book yield | |||||||
| Average credit quality (S&P) | A+ | A | |||||
| Duration | 4.4 | 4.5 | |||||
| (1) Amortized cost excludes allowance for current expected credit losses of | |||||||
| EMPLOYERS HOLDINGS, INC. Book Value Per Share (unaudited) $ in millions, except per share amounts | ||||||||||||||||
| June 30, 2024 | March 31, 2024 | December 31, 2023 | June 30, 2023 | |||||||||||||
| Numerators: | ||||||||||||||||
| Stockholders' equity | A | $ | 1,022.9 | $ | 1,018.9 | $ | 1,013.9 | $ | 951.7 | |||||||
| Plus: Deferred Gain | 95.3 | 97.2 | 99.2 | 102.1 | ||||||||||||
| Stockholders' equity including the Deferred Gain (1) | B | 1,118.2 | 1,116.1 | 1,113.1 | 1,053.8 | |||||||||||
| Accumulated other comprehensive loss | 125.3 | 122.6 | 108.9 | 165.2 | ||||||||||||
| Income taxes related to accumulated other comprehensive loss | (26.3 | ) | (25.7 | ) | (22.9 | ) | (34.7 | ) | ||||||||
| Adjusted stockholders' equity (1) | C | $ | 1,217.2 | $ | 1,213.0 | $ | 1,199.1 | $ | 1,184.3 | |||||||
| Denominator (shares outstanding) | D | 24,896,116 | 25,343,504 | 25,369,753 | 26,078,813 | |||||||||||
| Book value per share (1) | A / D | $ | 41.09 | $ | 40.20 | $ | 39.96 | $ | 36.49 | |||||||
| Book value per share including the Deferred Gain(1) | B / D | 44.91 | 44.04 | 43.88 | 40.41 | |||||||||||
| Adjusted book value per share (1) | C / D | 48.89 | 47.86 | 47.26 | 45.41 | |||||||||||
| Year-over-year change in: (2) | ||||||||||||||||
| Book value per share | 15.7 | % | 14.5 | % | 18.1 | % | 6.5 | % | ||||||||
| Book value per share including the Deferred Gain | 14.0 | 13.1 | 16.3 | % | 5.9 | |||||||||||
| Adjusted book value per share | 10.2 | 10.8 | 10.5 | % | 5.0 | |||||||||||
| (1) See Page 10 for information regarding our use of Non-GAAP Financial Measures. | ||||||||||||||||
| (2) Reflects the twelve month change in book value per share after taking into account dividends declared of | ||||||||||||||||
| EMPLOYERS HOLDINGS, INC. Earnings Per Share (unaudited) $ in millions, except per share amounts | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Numerators: | ||||||||||||||||
| Net income | A | $ | 31.7 | $ | 34.9 | $ | 60.0 | $ | 58.5 | |||||||
| Impact of the LPT Agreement | (2.1 | ) | (2.0 | ) | (4.2 | ) | (4.0 | ) | ||||||||
| Net income excluding LPT (1) | B | 29.6 | 32.9 | 55.8 | 54.5 | |||||||||||
| Net realized and unrealized gains on investments | (2.2 | ) | (11.3 | ) | (13.6 | ) | (17.7 | ) | ||||||||
| Lease termination and asset impairment charges | — | 9.4 | — | 9.4 | ||||||||||||
| Income tax expense related to items excluded from Net income | 0.5 | 0.4 | 2.9 | 1.7 | ||||||||||||
| Adjusted net income (1) | C | $ | 27.9 | $ | 31.4 | $ | 45.1 | $ | 47.9 | |||||||
| Denominators: | ||||||||||||||||
| Average common shares outstanding (basic) | D | 25,278,473 | 26,691,652 | 25,312,208 | 26,932,897 | |||||||||||
| Average common shares outstanding (diluted) | E | 25,363,941 | 26,803,340 | 25,449,957 | 27,096,669 | |||||||||||
| Earnings per share: | ||||||||||||||||
| Basic | A / D | $ | 1.25 | $ | 1.31 | $ | 2.37 | $ | 2.17 | |||||||
| Diluted | A / E | 1.25 | 1.30 | 2.36 | 2.16 | |||||||||||
| Earnings per share excluding LPT: (1) | ||||||||||||||||
| Basic | B / D | $ | 1.17 | $ | 1.23 | $ | 2.20 | $ | 2.02 | |||||||
| Diluted | B / E | 1.17 | 1.23 | 2.19 | 2.01 | |||||||||||
| Adjusted earnings per share: (1) | ||||||||||||||||
| Basic | C / D | $ | 1.10 | $ | 1.18 | $ | 1.78 | $ | 1.78 | |||||||
| Diluted | C / E | 1.10 | 1.17 | 1.77 | 1.77 | |||||||||||
| (1) See Page 10 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 does not result in any meaningful 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 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 is being amortized through June 30, 2024. Amortization is reflected in losses and LAE incurred.
Adjusted net income (see Page 3 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 8 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 8 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 4 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 8 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 3 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 per diluted share in Q2 2024?
How much did Employers Holdings' (EIG) gross premiums written increase in Q2 2024?
What was Employers Holdings' (EIG) GAAP combined ratio in Q2 2024?
How many policies in-force did Employers Holdings (EIG) have at the end of Q2 2024?
What dividend did Employers Holdings (EIG) declare for Q3 2024?
