For the quarter ended December 2023, Employers Holdings (EIG) reported revenue of $225.7 million, up 1.8% over the same period last year. EPS came in at $1.40, compared to $1.25 in the year-ago quarter.The reported revenue represents a surprise of +5.83% over the Zacks Consensus Estimate of $213.27 million. With the consensus EPS estimate being $1.00, the EPS surprise was +40.00%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to dete ...

Employers Holdings (EIG) came out with quarterly earnings of $1.40 per share, beating the Zacks Consensus Estimate of $1 per share. This compares to earnings of $1.25 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 40%. A quarter ago, it was expected that this provider of workers-compensation insurance would post earnings of $0.64 per share when it actually produced earnings of $0.68, delivering a surprise of 6.25%.Over the la ...

HENDERSON, Nev., Feb. 15, 2024 (GLOBE NEWSWIRE) -- Employers Holdings, Inc., (NYSE:EIG) today announced the appointment of Steve Sorenson to the Board of Directors, effective March 1, 2024. "We are very excited to welcome Steve Sorenson to the Employers Holdings, Inc. Board," said Katherine H. Antonello, President and Chief Executive Officer of Employers Holdings, Inc. "Steve brings a wealth of knowledge and expertise in areas including transformational leadership, insurance operations, and insurance produc ...

Employers Holdings, Inc. (EIG) is set to report its fourth-quarter 2023 results on Feb 15, after the closing bell. It is expected to have witnessed increased net premiums earned and lower net investment income in the December quarter.Earnings Surprise HistoryEmployers Holdings’ earnings beat the consensus estimate in all the prior four quarters, with the average being 26.5%. This is depicted in the graph below:In the last reported quarter, the workers' compensation insurance provider reported adjusted opera ...

Analysts on Wall Street project that Employers Holdings (EIG) will announce quarterly earnings of $1 per share in its forthcoming report, representing a decline of 20% year over year. Revenues are projected to reach $213.27 million, declining 3.9% from the same quarter last year.The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.Before a company ...

RENO, Nev., Jan. 29, 2024 (GLOBE NEWSWIRE) -- Employers Holdings, Inc. (the "Company") (NYSE:EIG) today announced that it will release its fourth quarter and full-year 2023 financial results after market close on Thursday, February 15, 2024, after which these materials will be available on the Company's website at www.employers.com through the "Investors" link. Conference Call DetailsThe Company will then review these financial results via a conference call and webcast on Friday, February 16, 2024, at 11:00 ...

Financial Data and Key Metrics Changes - Gross premiums written increased to $196 million, up 4% from $189 million a year ago, primarily due to higher new and renewal business writings [8] - Net premiums earned rose to $185 million, a 3% increase from $179 million in the previous year [8] - Net investment income increased by 9% to $26 million, driven by higher market interest rates impacting bond yields [30] - Net income was negatively impacted by $6 million of net after-tax unrealized losses from equity securities and $26 million from fixed maturity securities [10] Business Line Data and Key Metrics Changes - The Employers segment reported pretax income of $21 million, down from $26 million a year ago, with a combined ratio of 98% [9] - The Cerity segment experienced a pretax loss of $2 million, consistent with the previous year [9] - The average policy size increased from approximately $5,200 to $5,500 over the past year, attributed to economic growth and higher employment levels [20] Market Data and Key Metrics Changes - The company reported strong audit pickups totaling $7.4 million in Q3, compared to $12.5 million in the same quarter of 2022 [16] - New business written premiums reached $115 million, with about $40 million coming from appetite expansion classes [36] Company Strategy and Development Direction - The company is focused on integrating Cerity's operations to enhance efficiency and reduce redundant systems [12] - There is an ongoing effort to expand underwriting appetite, with a committee formed to explore new class codes for 2024 [36] - The company aims to reduce total underwriting expenses as a percentage of earned premiums in 2024 [33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position to benefit from favorable trends in the small business workers' compensation sector [13] - The internal drug cost index for in-network pharmacy costs has been decreasing since 2019, with a slight uptick in 2023, but remains lower than pre-pandemic levels [46] Other Important Information - The company repurchased 367,209 shares at an average price of $38.95 per share, with a remaining share repurchase authorization of $36 million [31] - A quarterly dividend of $0.28 per share was declared, payable on November 22 [31] Q&A Session Summary Question: What is the outlook for premium growth excluding audit adjustments? - Management indicated that gross written premium increased about 12% in Q3 2023 relative to Q3 2022, maintaining double-digit growth when excluding audit adjustments [35] Question: What is the average policy size for the new business? - The average policy size has increased due to both economic growth and appetite expansion efforts [20] Question: When is the consolidation of Cerity expected to be completed? - The consolidation is expected to be largely completed in 2024, with benefits anticipated from an expense standpoint [40]

PART I – FINANCIAL INFORMATION [Consolidated Financial Statements](index=2&type=section&id=Item%201.%20Consolidated%20Financial%20Statements) The unaudited consolidated financial statements detail decreased assets and liabilities, and a significant increase in nine-month net income [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Total assets decreased to **$3,527.0 million**, liabilities also declined, and stockholders' equity slightly decreased from year-end 2022 Consolidated Balance Sheet Highlights (in millions) | Account | Sep 30, 2023 (Unaudited) | Dec 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | **$3,527.0** | **$3,716.7** | | Total Investments | $2,333.9 | $2,568.8 | | Premiums Receivable | $363.3 | $305.9 | | **Total Liabilities** | **$2,608.0** | **$2,772.5** | | Unpaid Losses and LAE | $1,913.4 | $1,960.7 | | FHLB Advances | $40.4 | $182.5 | | **Total Stockholders' Equity** | **$919.0** | **$944.2** | [Consolidated Statements of Comprehensive Income (Loss)](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20%28Loss%29) Nine-month net income significantly increased to **$72.5 million** from **$1.3 million**, primarily due to a positive swing in investment gains Financial Performance Summary (in millions, except EPS) | Metric | Q3 2023 | Q3 2022 | 9M 2023 | 9M 2022 | | :--- | :--- | :--- | :--- | :--- | | Net Premiums Earned | $184.6 | $178.7 | $534.4 | $494.1 | | Total Revenues | $203.5 | $204.4 | $625.2 | $491.7 | | Net Income | $14.0 | $19.1 | $72.5 | $1.3 | | Diluted EPS | $0.54 | $0.70 | $2.71 | $0.05 | | Total Comprehensive (Loss) Income | $(12.1) | $(45.1) | $54.8 | $(218.2) | [Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Stockholders%27%20Equity) Total stockholders' equity decreased to **$919.0 million**, primarily due to stock repurchases and dividends, partially offset by net income - For the nine months ended September 30, 2023, the company acquired **$61.6 million** of its common stock and declared **$22.0 million** in dividends[22](index=22&type=chunk) - Net income of **$72.5 million** for the nine-month period was a primary contributor to retained earnings, but was offset by stock repurchases, dividends, and a **$17.7 million** increase in net unrealized losses on AFS investments[22](index=22&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Operating cash decreased, investing activities provided **$225.0 million**, and financing used **$227.2 million** for FHLB repayments and stock repurchases Net Cash Flow Summary (in millions) | Activity | 9M 2023 | 9M 2022 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $21.8 | $67.5 | | Net Cash from (used in) Investing Activities | $225.0 | $(97.7) | | Net Cash (used in) from Financing Activities | $(227.2) | $103.2 | | **Net Increase in Cash** | **$19.6** | **$73.0** | - Financing activities in the first nine months of 2023 included **$142.1 million** in repayments of FHLB advances and **$61.5 million** for the acquisition of common stock[25](index=25&type=chunk) [Notes to Consolidated Financial Statements (Unaudited)](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements%20%28Unaudited%29) Notes detail accounting policies, investment portfolio, CECL, segment operations (Employers and Cerity), and a **$9.4 million** lease termination charge - The company operates through two reportable segments: Employers (traditional agent-based business) and Cerity (direct-to-customer business)[33](index=33&type=chunk)[110](index=110&type=chunk)[111](index=111&type=chunk) - During the nine months ended September 30, 2023, the company recorded a net charge of **$9.4 million** related to the early termination of the lease for its former corporate headquarters in Reno, Nevada[81](index=81&type=chunk)[117](index=117&type=chunk) - As of September 30, 2023, the company had an allowance for current expected credit losses (CECL) of **$3.2 million** on AFS debt securities, **$16.2 million** on premiums receivable, and **$0.9 million** on reinsurance recoverables[56](index=56&type=chunk)[65](index=65&type=chunk)[68](index=68&type=chunk) [Management's Discussion and Analysis of Consolidated Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Consolidated%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, highlighting record policies in-force, **$72.5 million** net income from investment results, segment performance, and strong liquidity - The company achieved a record number of policies in-force, with year-over-year increases in new and renewal business premiums driving top-line growth[128](index=128&type=chunk) - Net income for the nine months ended September 30, 2023, was **$72.5 million**, compared to **$1.3 million** for the same period in 2022, primarily driven by a positive swing in net realized and unrealized investment gains/losses and higher net investment income[134](index=134&type=chunk)[137](index=137&type=chunk) - A non-recurring charge of **$9.4 million** was incurred during the nine months ended September 30, 2023, related to the early lease termination of the former corporate headquarters[137](index=137&type=chunk)[149](index=149&type=chunk) [Results of Operations](index=28&type=section&id=Results%20of%20Operations) Gross premiums written increased to **$589.5 million**, net investment income rose, and investment gains contributed to **$72.5 million** net income Consolidated Results of Operations (in millions) | Metric | 9M 2023 | 9M 2022 | | :--- | :--- | :--- | | Gross Premiums Written | $589.5 | $540.4 | | Net Premiums Earned | $534.4 | $494.1 | | Net Investment Income | $80.3 | $62.8 | | Net Realized/Unrealized Gains (Losses) | $10.7 | $(65.5) | | Total Revenues | $625.2 | $491.7 | | Total Expenses | $534.9 | $491.8 | | **Net Income** | **$72.5** | **$1.3** | [Summary of Financial Results by Segment](index=30&type=section&id=Summary%20of%20Financial%20Results%20by%20Segment) Employers segment underwriting income increased to **$28.6 million** with a **94.6%** combined ratio, while Cerity reported a **$5.7 million** net loss Net Income (Loss) Before Income Taxes by Segment (9M 2023, in millions) | Segment | Net Income (Loss) Before Taxes | | :--- | :--- | | Employers | $97.5 | | Cerity | $(5.7) | | Corporate and Other | $(1.5) | | **Total** | **$90.3** | - The Employers segment's combined ratio improved to **94.6%** for the nine months ended Sep 30, 2023, from **96.8%** in the prior year period, driven by a lower loss and LAE ratio[151](index=151&type=chunk)[159](index=159&type=chunk) - The Cerity segment's gross premiums written grew to **$5.1 million** for the nine months of 2023 from **$3.6 million** in 2022, though it still recorded an underwriting loss of **$10.5 million**[174](index=174&type=chunk)[180](index=180&type=chunk) [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong capital and liquidity, with **$75.8 million** in holding company cash, **$61.1 million** in stock repurchases, and **$22.5 million** in dividends - Total cash and investments at the holding company (EHI) were **$75.8 million** at September 30, 2023[192](index=192&type=chunk) - The company repurchased **1,570,342 shares** for **$61.1 million** during the nine months ended September 30, 2023[214](index=214&type=chunk) - Dividends paid to stockholders totaled **$22.5 million** for the nine months ended September 30, 2023[213](index=213&type=chunk) - As of September 30, 2023, the company had **$40.4 million** in FHLB advances outstanding, down from **$182.5 million** at the start of the year[201](index=201&type=chunk)[220](index=220&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=40&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages credit, interest rate, and equity price risks, with a **4.4-year** portfolio duration and a **$76.4 million** impact from a 100 basis point rate rise - The company's primary market risks are identified as credit risk, interest rate risk, and equity price risk[233](index=233&type=chunk) - The duration of the fixed maturity investment portfolio was **4.4 years** as of September 30, 2023[237](index=237&type=chunk) Interest Rate Sensitivity Analysis (as of Sep 30, 2023) | Hypothetical Change in Interest Rates | Estimated Pre-tax (Decrease) in Fair Value | | :--- | :--- | | 100 basis point rise | $(76.4) million | | 200 basis point rise | $(155.1) million | | 300 basis point rise | $(228.3) million | [Controls and Procedures](index=42&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective as of September 30, 2023, with no material changes in internal control over financial reporting - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[248](index=248&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[249](index=249&type=chunk) PART II – OTHER INFORMATION [Legal Proceedings](index=43&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine litigation, with no expected material effect on financial condition or results of operations - Management states that any ultimate liability from pending or threatened litigation is not expected to have a material effect on the company's results of operations, liquidity, or financial position[252](index=252&type=chunk) [Risk Factors](index=43&type=section&id=Item%201A.%20Risk%20Factors) No material changes to previously disclosed risk factors have occurred since the Annual Report on Form 10-K - As of the date of this report, there have been no material changes to the risk factors contained in the company's Annual Report[253](index=253&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=43&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **367,209 shares** for **$14.3 million** in Q3 2023 and authorized a new **$50.0 million** stock repurchase program Q3 2023 Stock Repurchases | Period | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | July 2023 | 30,000 | $38.24 | | August 2023 | 260,216 | $39.04 | | September 2023 | 76,993 | $38.92 | | **Total Q3** | **367,209** | **$38.95** | - A new stock repurchase authorization for up to **$50.0 million** was approved on July 26, 2023, valid through December 31, 2024[254](index=254&type=chunk) [Defaults Upon Senior Securities](index=43&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities were reported - The company reports no defaults upon senior securities[255](index=255&type=chunk) [Mine Safety Disclosures](index=43&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's operations - This item is not applicable to the company[256](index=256&type=chunk) [Other Information](index=43&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the third quarter of 2023 - During the three months ended September 30, 2023, no director or officer adopted or terminated a Rule 10b5-1 trading arrangement[257](index=257&type=chunk) [Exhibits](index=44&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including CEO and CFO certifications and XBRL data files

Employers Holdings Inc. (NYSE:EIG) Q2 2023 Earnings Call Transcript July 27, 2023 11:00 AM ET Company Participants Lori Brown - Executive VP, Chief Legal Officer, General Counsel and Corporate Secretary Kathy Antonello - President, CEO and Director Michael Paquette - Executive VP, CFO and Treasurer Conference Call Participants Mark Hughes - Truist Securities Bob Farnam - Janney Operator Hello, and welcome to the Employers Holdings, Inc. Second Quarter 2023 Earnings Conference Call and webcast. [Operator Ins ...

PART I – FINANCIAL INFORMATION [Item 1. Consolidated Financial Statements](index=3&type=section&id=Item%201.%20Consolidated%20Financial%20Statements) This section presents the unaudited consolidated financial statements and accompanying notes for Employers Holdings, Inc. and its subsidiaries [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) | Metric | June 30, 2023 (in millions) | December 31, 2022 (in millions) | | :----------------------------------- | :----------------------------- | :------------------------------- | | Total Assets | $3,615.6 | $3,716.7 | | Total Liabilities | $2,663.9 | $2,772.5 | | Total Stockholders' Equity | $951.7 | $944.2 | - Total assets **decreased** by **$101.1 million** from December 31, 2022, to June 30, 2023, primarily due to **decreases** in investments and cash and cash equivalents. Total liabilities **decreased** by **$108.6 million**, mainly driven by a **reduction** in FHLB advances and unpaid losses and loss adjustment expenses. Total stockholders' equity slightly **increased** by **$7.5 million**[10](index=10&type=chunk)[12](index=12&type=chunk) [Consolidated Statements of Comprehensive Income (Loss)](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) | Metric | Three Months Ended June 30, 2023 (in millions) | Three Months Ended June 30, 2022 (in millions) | Six Months Ended June 30, 2023 (in millions) | Six Months Ended June 30, 2022 (in millions) | | :--------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | :------------------------------------------- | :------------------------------------------- | | Total Revenues | $215.2 | $135.3 | $421.7 | $287.3 | | Total Expenses | $171.4 | $156.7 | $348.9 | $311.1 | | Net Income (Loss) | $34.9 | $(15.6) | $58.5 | $(17.8) | | Basic Earnings (Loss) Per Common Share | $1.31 | $(0.56) | $2.17 | $(0.65) | | Diluted Earnings (Loss) Per Common Share | $1.30 | $(0.56) | $2.16 | $(0.65) | | Total Comprehensive Income (Loss) | $19.5 | $(82.7) | $66.9 | $(173.1) | - The Company reported a **significant turnaround** from **net losses** in Q2 2022 and H1 2022 to **net income** in Q2 2023 and H1 2023. This **improvement** was primarily driven by a substantial **increase** in total revenues, particularly net realized and unrealized gains on investments, which shifted from **significant losses** in 2022 to gains in 2023[15](index=15&type=chunk) [Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Stockholders'%20Equity) | Metric | April 1, 2023 (in millions) | June 30, 2023 (in millions) | January 1, 2023 (in millions) | | :------------------------------------ | :-------------------------- | :-------------------------- | :---------------------------- | | Total Stockholders' Equity (Q2 2023) | $974.1 | $951.7 | N/A | | Total Stockholders' Equity (H1 2023) | N/A | $951.7 | $944.2 | | Net Income for the period (Q2 2023) | N/A | $34.9 | N/A | | Net Income for the period (H1 2023) | N/A | $58.5 | N/A | | Acquisition of common stock (Q2 2023) | N/A | $(35.8) | N/A | | Acquisition of common stock (H1 2023) | N/A | $(47.2) | N/A | | Dividends declared (Q2 2023) | N/A | $(7.6) | N/A | | Dividends declared (H1 2023) | N/A | $(14.7) | N/A | - Stockholders' equity **decreased** from **$974.1 million** on April 1, 2023, to **$951.7 million** on June 30, 2023, primarily due to common stock acquisitions and dividends declared, partially offset by **net income**. For the six months ended June 30, 2023, stockholders' equity **increased** from **$944.2 million** to **$951.7 million**, driven by **net income** and changes in unrealized gains on AFS investments, despite share repurchases and dividends[18](index=18&type=chunk)[21](index=21&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) | Cash Flow Activity | Six Months Ended June 30, 2023 (in millions) | Six Months Ended June 30, 2022 (in millions) | | :--------------------------------------- | :------------------------------------------- | :------------------------------------------- | | Net cash (used in) provided by operating activities | $(3.5) | $37.9 | | Net cash provided by (used in) investing activities | $119.4 | $(44.3) | | Net cash (used in) provided by financing activities | $(138.9) | $61.4 | | Net (decrease) increase in cash, cash equivalents and restricted cash | $(23.0) | $55.0 | | Cash, cash equivalents and restricted cash at end of period | $66.4 | $130.3 | - Net cash used in operating activities for H1 2023 was **$3.5 million**, a **significant decrease** from **$37.9 million** provided in H1 2022. Investing activities shifted from using **$44.3 million** in H1 2022 to providing **$119.4 million** in H1 2023. Financing activities used **$138.9 million** in H1 2023, compared to providing **$61.4 million** in H1 2022, primarily due to common stock repurchases and FHLB advance repayments[24](index=24&type=chunk) [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) [1. Basis of Presentation and Summary of Operations](index=11&type=section&id=1.%20Basis%20of%20Presentation%20and%20Summary%20of%20Operations) - Employers Holdings, Inc. (EHI) is a Nevada holding company specializing in workers' compensation products and services through its insurance subsidiaries. The Company operates through two reportable segments: Employers (traditional business) and Cerity (direct-to-customer business)[28](index=28&type=chunk)[32](index=32&type=chunk) - The Company accounts for a retroactive **100% quota share reinsurance agreement** (LPT Agreement) as retroactive reinsurance, recording a deferred reinsurance gain as a liability and a contingent profit commission as an asset[29](index=29&type=chunk)[30](index=30&type=chunk) [2. New Accounting Standards](index=11&type=section&id=2.%20New%20Accounting%20Standards) - The Company adopted ASU 2020-04, Reference Rate Reform (Topic 848), which provided optional transition guidance for transitioning away from LIBOR, but determined there was no impact on its existing contracts and investments[35](index=35&type=chunk) [3. Valuation of Financial Instruments](index=12&type=section&id=3.%20Valuation%20of%20Financial%20Instruments) | Financial Instrument | June 30, 2023 (in millions) | December 31, 2022 (in millions) | | :-------------------------------- | :-------------------------- | :------------------------------ | | Total investments at fair value | $2,382.4 | $2,502.4 | | Cash and cash equivalents | $66.2 | $89.2 | | Restricted cash and cash equivalents | $0.2 | $0.2 | - The Company categorizes financial instruments at fair value into Level 1 (quoted prices in active markets), Level 2 (observable inputs other than Level 1), and Level 3 (unobservable inputs). As of June 30, 2023, **$25.4 million** of fixed maturity securities were designated Level 3 due to limited observable market information[36](index=36&type=chunk)[40](index=40&type=chunk) - Investments in private equity limited partnerships are carried at Net Asset Value (NAV) and are excluded from the fair value hierarchy, totaling **$83.4 million** at June 30, 2023. The Company had unfunded commitments to these partnerships totaling **$35.1 million**[44](index=44&type=chunk) [4. Investments](index=14&type=section&id=4.%20Investments) | Investment Category | Amortized Cost (June 30, 2023, in millions) | Estimated Fair Value (June 30, 2023, in millions) | Gross Unrealized Losses (June 30, 2023, in millions) | | :--------------------------------