Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
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| We are confident that our strong capital position will nicely support both our growth and technology initiatives, and we look forward to the year ahead |
| They are our most valued asset and have successfully positioned the company for even better results in the coming years |
| The growth in all of our segments is really quite strong whether you look at it from our payroll partners or any of our alternative distribution channels, our core business is growing really strong |
| Our steady growth in written premium in 2023 resulted from a 20% increase in new business, a 9% increase in renewal business and continued solid audit premium recognition |
| So that's really good for us |
| Our investment performance was also a boost to revenue with net investment income increasing by 19% in 2023 |
| Our success in opportunistically repurchasing our shares in 2023 allowed us to meet these objectives in the best possible way, thereby improving several of our current and future key metrics without the need to declare any special dividends |
| The integration allows us to continue to offer direct-to-consumer policies through the Cerity brand, and we expect to realize meaningful fixed underwriting expense savings going forward |
| We finished the year with impressive revenue growth, driven by strong increases in both premium writings and investment income |
| With the Cerity integration behind us, we are now exceptionally well positioned to focus our efforts on the future of small business workers' compensation and how we can offer a superior experience to our growing customer base |
| And we expect to continue our appetite expansion effort, which has led to very profitable growth |
| The fourth quarter was a strong end to a very successful year for Employers |
| And our stockholders' equity and book value per share this quarter was favorably impacted by $66 million of net after-tax unrealized gains, arising from our fixed maturity securities, which are reflected on our balance sheet |
| The impact of numerous initiatives led to year-over-year increases in our ex-LPT underwriting income of 38% in the fourth quarter and 128% for the full-year |
| Our adjusted net income for the same period increased 5% and 26% with even stronger increases when expressed on a per share basis |
| We also hit an all-time high in terms of our policies in force, which we expect will serve us well in 2024 |
| Our net income this quarter was favorably impacted by $14 million of net after-tax unrealized gains arising from equity securities and other investments, which are reflected on our income statement |
| As a result, our book value per share, including the deferred gain, increased 16% for the year after considering dividends declared |
| In addition, the partial recovery of last year's unrealized losses from common stock and other investments benefited our income statement |
| These improvements reflect a lower current accident year [loss in LAE] provision as well as higher prior year loss development |
| Our fourth quarter and full-year loss in LAE ratios, excluding the impact of LPT of 50.2% and 57.2% respectively, each represented a meaningful improvements from the [ratios reported] a year ago |
| Beyond our financial results, I am very excited to announce that we recently completed an ambitious full integration of Cerity’s operations into those of Employers |
| Gross premiums written were $178 million for the fourth quarter, $768 million for the full-year, increases of 3% and 7%, respectively |
| So we're seeing quite a bit of growth across all of our segments in addition to the payroll partner channels |
| Net premiums earned were $188 million for the fourth quarter and $722 million for 2023, increases of 4% and 7%, respectively |
| Gross written premium, excluding final audit premium and the change in audit accrual increased 12% for both the full-year and fourth quarter |
| Our fourth quarter and full-year commission expense ratios were 14% and 13.9%, respectively, each representing modest improvements from those ratios reported a year ago |
| I want to thank our highly dedicated employees for their outstanding efforts in 2023 |
| So we feel like if we do see something happen with medical inflation, we're in a good spot, and we've tried to already contemplate that in our reserves |
| The [indiscernible] year volatility in market interest rates throughout 2023 enabled us to buy and sell fixed maturity securities opportunistically, which contributed to a $59 million after-tax reversal of last year's unrealized bond losses |
| Statement |
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| I think you’ve suggested it's maintained or continue to be pretty benign |
| Interest and financing expenses for the quarter were less than $1 million versus $2 million a year ago |
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