Employers Holdings Inc (EIG) Reports Robust Full-Year Earnings Growth and Declares Quarterly ...
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Net Income: Full-Year net income soared to $118.1 million, a significant increase from $48.4 million in the previous year.
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Adjusted Net Income: Adjusted net income for the year rose to $101.7 million from $81.0 million year-over-year.
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Net Investment Income: Net investment income grew to $106.5 million, up from $89.8 million in the prior year.
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Premiums: Gross premiums written increased to $767.7 million, with net premiums earned at $721.9 million.
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Combined Ratio: GAAP combined ratio improved to 95.0%, indicating efficient underwriting performance.
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Policies In-Force: A record number of ending policies in-force reached 126,409, up from 121,356.
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Book Value: Adjusted book value per share rose by 10.5% to $47.26, including dividends declared.
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On February 15, 2024, Employers Holdings Inc (NYSE:EIG) released its 8-K filing, announcing its financial results for the fourth quarter and full year ended December 31, 2023. The company, a specialty provider of workers' compensation insurance and services focused on small businesses in low-to-medium hazard industries, declared a quarterly cash dividend of $0.28 per share. Employers Holdings Inc operates across the United States, with a significant presence in California and a strong focus on industries such as restaurants.
The company's full-year financial highlights reveal a substantial increase in net income to $118.1 million, or $4.45 per diluted share, compared to $48.4 million, or $1.75 per diluted share, in the previous year. Adjusted net income also saw a healthy increase to $101.7 million, or $3.83 per diluted share. This growth is attributed to a 20% increase in new business, a 9% increase in renewal business, and solid audit premium recognition.
Employers Holdings Inc's investment performance was robust, with net investment income reaching $106.5 million, a 19% increase over the previous year. The company also reported a record number of ending policies in-force and an improved GAAP combined ratio, reflecting efficient underwriting and expense management.
Financial Performance and Strategic Achievements
CEO Katherine Antonello expressed satisfaction with the company's performance, highlighting the growth in premium writings and investment income. The company's focus on maintaining a competitive accident year loss and loss adjustment expense ratio has paid off, with improvements over the previous year. Employers Holdings Inc also completed the integration of Cerity's operations, which is expected to yield fixed underwriting expense savings and streamline reporting.