Saturday, August 19 2017

26

Employers Holdings, Inc. Reports Second Quarter 2017 Results

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  • Second quarter net income, net income excluding the impact of the Loss Portfolio Transfer (LPT) and operating income of $24.8 million, $21.7 million and $19.7 million, respectively.
  • Annualized operating return on adjusted equity of 8.1%.
  • Second quarter combined ratio of 93.3% and combined ratio excluding the impact of the LPT of 95.1%, each an improvement year-over-year.
  • Second quarter net written premiums of $183.0 million, a decrease year-over-year related to a decline in final audit premium.
  • GAAP book value per share of $27.74, book value per share of $32.95 and adjusted book value per share of $30.17; increased 7.2%, 5.2% and 4.0%, respectively, in the first half of 2017, each including dividends declared.
  • In-force payroll exposure increased 1.7% overall, year-over-year.
  • In-force policies increased 0.8% overall, year-over-year.
  • Net earned premiums decreased 2.9% in the quarter, year-over-year.
  • Board of Directors approved a quarterly dividend of $0.15 per share.

 

Reno, Nevada-July 26, 2017-Employers Holdings, Inc. (“EHI” or the “Company”) (NYSE:EIG) today reported net income, net income excluding the impact of the LPT and operating income of $24.8 million ($0.75 per diluted share), $21.7 million ($0.66 per diluted share), and $19.7 million ($0.60 per diluted share), respectively, for the second quarter of 2017.

The Company's net income for the second quarter of 2017 decreased $2.0 million year-over-year. This decrease reflects non-routine adjustments made to LPT reserves and the LPT contingent profit commission in the second quarter of 2016, which served to reduce our losses and loss adjustment expense (LAE) and raise net income by $4.9 million during that period.

The Company's net income before the impact of the LPT and operating income increased by $2.5 million and $4.3 million, respectively, year-over-year. These increases reflect a lower combined ratio for the current period, driven primarily from a reduction in the current accident year loss and LAE expense ratio.

Chief Executive Officer Douglas Dirks commented on the results:

“We produced another quarter of strong financial and operating results. Excluding impacts of the LPT, our net income increased 13%, or eight cents per diluted share, and our combined ratio improved 3.7 percentage points, demonstrating our disciplined underwriting and sound investment strategies. Final audit premium declined $6.2 million in the current quarter relative to the same period last year, driving the 3% decline in top line year-over-year. We achieved an annualized return on adjusted equity of 8.1%, 1.2 percentage points higher than last year's second quarter. Our balance sheet remained strong as we continued to grow stockholders’ equity and book value per share. We again drove strong new business growth and maintained high levels of retention for our in-force policies, despite competitive market conditions, while improving loss costs."


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