Employers Holdings, Inc. (“EHI” or the “Company”) (NYSE:EIG) today reported third quarter 2011 net income of $11.8 million or $0.31 per diluted share compared with $10.1 million or $0.25 per diluted share in the third quarter of 2010, an increase of $0.06 per diluted share.
Net income includes amortization of the deferred reinsurance gain related to the Loss Portfolio Transfer (“LPT”) Agreement. Consolidated net income before the impact of the LPT (the Company’s non-GAAP measure described below) was $7.6 million or $0.20 per diluted share in the third quarter of 2011 compared with $5.3 million or $0.13 per diluted share in the third quarter of 2010, an increase of $0.07 per diluted share.
In the third quarter of 2011, the Company had a calendar year combined ratio of 112.9% (117.5% before the LPT), a slight increase of 1.3 percentage points from the third quarter of 2010 combined ratio of 111.6% (117.5% before the LPT). On an accident quarter basis, the Company had a combined ratio before the LPT of 117.3% in the third quarter of 2011 compared to 117.5% in the third quarter of 2010.
Douglas D. Dirks, President and Chief Executive Officer of EHI, commented: “In the third quarter, our growth initiatives continued to yield positive results. Net premiums written increased 26% year over year driven by a 30% increase in policy count. We exceeded our monthly targets for adding policies in the past seven consecutive months, with 12,040 new policies at the end of September. We surpassed our twenty-four month target for adding agents with over 960 new appointments at September 30, 2011, nine months ahead of schedule. Additionally, as planned, over the last twelve months we have succeeded in shifting a larger percentage of our payroll exposure to less risky hazard groups A and B. Overall payroll exposure increased 16% year over year at September 30, 2011.” Click here to read the whole article