Tuesday, March 20 2018


Employers Holdings, Inc. Reports First Quarter 2012 Earnings and Declares Second Quarter 2012 Dividend

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Key Highlights
(Q 1, 2012 compared to Q 1, 2011 except where noted)

• Overall net rate up 0.6% and 13.6% in California at quarter-end
• Net written premiums of $140 million; up 39%
• Net earned premiums of $110 million; up 33%
• Revenues of $130 million; up 26%
• Deferred acquisition cost (DAC) accounting change increase to underwriting and other operating expense was $3
• Income tax benefit of $4.4 million
• Book value of $25.51 up 2% since December 31, 2011; repurchased 1.1 million common shares in Q1 2012

Reno, Nevada-May 8, 2012-Employers Holdings, Inc. (“EHI” or the “Company”) (NYSE:EIG) today reported first quarter
2012 net income of $6.2 million or $0.19 per diluted share. Net income in the first quarter of 2011 was $8.3 million or $0.21 per
diluted share. As expected, during the first quarter of 2012, we recorded a $3 million or $0.09 per diluted share addition to
underwriting and other operating expense as a result of our prospective adoption of the Financial Accounting Standards Board's
change in accounting methods for deferred acquisition costs (DAC). This change in accounting method, which became effective
in 2012, alters the definition of acquisition costs which may be capitalized and lowered our reported net income as a result of
having to expense certain costs that were previously capitalized. Adjusted for the change in DAC accounting, non-GAAP net
income was $9.7 million or $0.30 per diluted share, an increase of $0.09 per share compared with last year's first quarter. We
continue to estimate that our underwriting and other operating expenses in 2012 will increase further by approximately $4
million, in addition to the first quarter expense of $3 million, as a result of the new DAC accounting, with approximately 31%
of the total $7 million to be recorded in Q2, 16% to be recorded in Q3 and the remaining 6% to be recorded in Q4.

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Posted in: EMPLOYERS Press Releases, Investors and Earnings | Tags: Earnings , Dividends , Investors | Comments (0) | View Count: (1169)
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