Financial Data and Key Metrics Changes - The first quarter net premium earned was relatively flat compared to 2024, driven by higher renewal premium offset by lower new business and audit premium [7] - Gross premiums written were $212 million, an increase of 1%, while net premiums earned were $183 million, a decrease of 1% [11][12] - Net investment income increased by 20% to $32 million, the highest in the company's history as a publicly traded entity [9][14] - The current accident year loss and LAE ratio on voluntary business increased to 66% from 64% in 2024 [9][12] - The underwriting expense ratio improved to 23.4% from 25% a year ago [10][13] - Adjusted net income increased by 24% to $21.3 million from $17.2 million a year ago [15] Business Line Data and Key Metrics Changes - The increase in gross premiums was primarily due to higher renewal business, partially offset by lower new business and final audit premiums [11][12] - Commission expense decreased to $23 million from $25 million, and the commission expense ratio improved to 12.6% from 13.6% [13] - Underwriting expenses decreased to $43 million from $46 million, contributing to the improved underwriting expense ratio [13] Market Data and Key Metrics Changes - The company ended the period with a record number of policies in force, achieving a year-over-year growth rate of 4% [8] - The overall selection of the current accident year loss ratio of 66% is below the industry average, which has been in the range of 69% to 70% in recent years [25] Company Strategy and Development Direction - The company continues to prioritize profitability over growth and has identified refinements in underwriting and pricing to maintain discipline [17] - There is an ongoing appetite expansion effort to identify areas for profitable growth, with confidence to accelerate this effort [18] - The company is monitoring potential impacts from tariff discussions and the cost of prescription drugs and medical services [18] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the ability to maintain a strong customer base despite potential recessionary headwinds [18] - The company is focused on expense management and prudent capital management, with key operating metrics showing improvement [19] - The book value per share increased by 14% to $48.25, and adjusted book value per share increased by 9% to $50.75 over the last twelve months [19] Other Important Information - The Board of Directors authorized a new stock repurchase program for up to $125 million from May 6, 2025, through December 31, 2026 [15][16] - A 7% increase in the quarterly dividend to $0.32 per share was declared, payable on May 28 [15][16] Q&A Session Summary Question: Can you talk about specifics regarding loss trends and how broad they are geographically? - Management noted that the increase in the accident year GLOF and LAE ratio reflects ongoing competitive rate environments and pressure on accident years 2023 and 2024, with a rise in cumulative trauma claims in California [23][24] Question: How about underlying medical inflation and other drivers of medical expenses? - Management indicated that lost time claim frequencies have generally trended downward, although California saw an uptick due to cumulative trauma claims, with overall severity values holding steady [27][28] Question: Is there a macroeconomic contribution to cumulative trauma claims? - Management stated that there is no identifiable macroeconomic cause for the cumulative trauma claims arising from accident year 2024, noting it is a California-specific phenomenon [30][31] Question: What do you think will show up in the NCCI state of the line report regarding industry fundamentals? - Management anticipates that while there are still significant redundancies in the industry, carriers are reducing redundancies less, and internal rates have shown a slight increase [38][39]

Financial Data and Key Metrics Changes - The net premium earned was relatively flat compared to 2024, driven by higher renewal premiums offset by lower new business and audit premiums [6][10] - Gross premiums written increased by 1% to $212 million, while net premiums earned decreased by 1% to $183 million [9][10] - The current accident year loss and LAE ratio on voluntary business increased to 66% from 64% in 2024 [7][10] - Net investment income rose by 20% to $32 million, the highest in the company's history as a publicly traded entity [7][12] - Quarterly net income was $12.8 million, impacted by $9 million of net after-tax unrealized investment losses [12] - Adjusted net income increased by 24% to $21.3 million from $17.2 million a year ago [13] Business Line Data and Key Metrics Changes - The underwriting expense ratio improved to 23.4% from 25% a year ago, attributed to reductions in bad debt and compensation-related expenses [8][11] - Commission expense decreased to $23 million from $25 million, with a commission expense ratio of 12.6% compared to 13.6% [11] Market Data and Key Metrics Changes - The company ended the period with a record number of policies in force, achieving a year-over-year growth rate of 4% [7] - The overall selection of the current accident year loss ratio of 66% is below the industry average, which has been in the range of 69% to 70% in recent years [24] Company Strategy and Development Direction - The company continues to prioritize profitability over growth, refining its underwriting and pricing approach to maintain discipline while returning to moderate new business growth levels [15] - The appetite expansion effort is ongoing, identifying areas for profitable growth [15] - The company is monitoring potential impacts from tariff discussions and the cost of prescription drugs and medical services [15] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the ability to maintain a strong customer base amid potential recessionary headwinds, citing deep relationships with customers and agents [15] - The company has not experienced negative impacts from macroeconomic conditions but is closely monitoring the situation [15] Other Important Information - The Board of Directors authorized a new stock repurchase program for up to $125 million over a 20-month period [13] - A 7% increase in the quarterly dividend to $0.32 per share was declared, payable on May 28 [14] Q&A Session Summary Question: Can you discuss specifics regarding loss trends and the competitive rate environment? - Management noted the increase in the accident year GLOF and LAE ratio from 64% to 66% is due to competitive rate pressures and a rise in cumulative trauma claims in California [22][24] Question: What about underlying medical inflation and treatment costs? - Management indicated that lost time claim frequencies are generally trending downward, with some variations by state, and overall severity values have held steady [26] Question: Are there macroeconomic contributions to cumulative trauma claims? - Management stated that there is no identifiable macroeconomic cause for the increase in cumulative trauma claims, which are primarily a California phenomenon [30] Question: What are the expectations for the NCCI's state of the line report? - Management anticipates that reserve redundancies in the industry are still significant but may be reducing less, with internal rates showing flat year-over-year results [35]

Core Viewpoint - Employers Holdings (EIG) reported quarterly earnings of $0.87 per share, exceeding the Zacks Consensus Estimate of $0.69 per share, and showing an increase from $0.67 per share a year ago, representing an earnings surprise of 26.09% [1][2] Financial Performance - The company posted revenues of $202.6 million for the quarter ended March 2025, which was 6.55% below the Zacks Consensus Estimate and a decrease from $223.1 million in the same quarter last year [2] - Over the last four quarters, Employers Holdings has surpassed consensus EPS estimates four times but has not beaten consensus revenue estimates [2] Stock Performance - Employers Holdings shares have declined approximately 5.2% since the beginning of the year, slightly better than the S&P 500's decline of 5.3% [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.11 on revenues of $222.63 million, and for the current fiscal year, it is $3.63 on revenues of $891.9 million [7] - The estimate revisions trend for Employers Holdings is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Insurance - Accident and Health industry, to which Employers Holdings belongs, is currently in the top 25% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8]

Financial Performance - Gross premiums written increased by 1% to $212.1 million compared to $210.9 million in the prior year[5] - Net investment income rose by 20% to $32.1 million from $26.8 million year-over-year[5] - Net income decreased by 55% to $12.8 million from $28.3 million in the same quarter last year[5] - Adjusted net income increased by 24% to $21.3 million compared to $17.2 million in the prior year[5] - Net premiums earned for Q1 2025 were $183.0 million, a decrease of 1.0% from $184.9 million in Q1 2024[16] - Basic earnings per share for Q1 2025 were $0.52, down from $1.12 in Q1 2024, indicating a decline of 53.6%[25] Assets and Equity - Total assets remained stable at $3,556.9 million, slightly up from $3,541.3 million[8] - Stockholders' equity increased by 6% to $1,075.7 million from $1,018.9 million year-over-year[8] - Book value per share rose by 11% to $44.43 from $40.20 in the previous year[5] - The book value per share increased by 13.5% year-over-year to $44.43 as of March 31, 2025, compared to $39.96 a year earlier[22] Ratios and Returns - The combined ratio excluding LPT was 102.8%, slightly up from 102.7% in the prior year[5] - The GAAP combined ratio for Q1 2025 was 102.0%, slightly higher than 101.6% in Q1 2024[16] - Annualized adjusted return on stockholders' equity improved by 21% to 6.9% from 5.7% in the prior year[5] - The company reported a decrease in commission expense ratio to 12.6% in Q1 2025 from 13.6% in Q1 2024[16] Losses and Claims - Losses and LAE incurred increased to $120.7 million in Q1 2025, up from $116.5 million in Q1 2024, representing a 3.6% increase[16] - Unpaid losses and LAE at the end of Q1 2025 were $1,792.6 million, down from $1,874.5 million at the end of Q1 2024[18] Investments - The total investments and cash as of March 31, 2025, amounted to $2,537.6 million, a slight increase from $2,532.4 million at the end of 2024[20] - The weighted average book yield for the investment portfolio remained stable at 4.5%[20] Management Insights - Adjusted stockholders' equity includes the Deferred Gain, less accumulated other comprehensive income (net of tax) [31] - Management believes that adjusted return on stockholders' equity is a useful profitability measure for investors and analysts [32] - Book value per share and adjusted book value per share are considered important valuation measures by management [32] - Net income excluding LPT is highlighted as a significant performance measure for stakeholders [33]

Core Viewpoint - Employers Holdings, Inc. reported its financial results for the first quarter of 2025, highlighting a flat performance in net premiums earned compared to the previous year, driven by higher renewal premiums but lower new business and audit premiums [3][7]. Financial Highlights - Gross premiums written increased by 1% to $212.1 million from $210.9 million [7][29]. - Net premiums earned decreased by 1% to $183.0 million from $184.9 million [7][29]. - Net income per diluted share decreased by 53% to $0.52 from $1.11, while adjusted net income per diluted share increased by 30% to $0.87 from $0.67 [8][29]. - Net investment income rose by 20% to $32.1 million from $26.8 million, primarily due to returns from investments in limited partnerships [5][11]. - The company returned $27.5 million to stockholders through share repurchases and dividends [6][8]. Management Commentary - The CEO noted that the company is focusing on refining its underwriting and pricing approach to maintain discipline while aiming for moderate new business growth [3]. - The company ended the period with a record number of policies in-force, up 4% year-over-year [3]. Loss Ratios and Expenses - The current accident year loss and LAE ratio on voluntary business was reported at 66.0%, slightly above the 64.0% maintained throughout 2024 [4][9]. - The commission expense ratio improved to 12.6% from 13.6% a year ago, while the underwriting expense ratio decreased to 23.4% from 25.0% [5][10]. Shareholder Returns - The regular quarterly dividend was raised to $0.32 per share, reflecting a 7% increase [6][14]. - A new $125.0 million share repurchase plan was authorized after the previous plan was exhausted [6][16]. Book Value and Equity - Book value per share including the deferred gain increased by 12.3% year-over-year to $48.25 [13][50]. - Adjusted book value per share rose by 8.5% year-over-year to $50.75 [13][50].

Core Insights - Mercury Insurance has been recognized as one of America's Best Midsized Employers for 2025, highlighting its commitment to team member growth and company culture [1][2]. Company Overview - Mercury Insurance, headquartered in Los Angeles, operates as a multiple-line insurance carrier offering personal auto, homeowners, and renters insurance, among other products, across various states [7][8]. - The company has been in operation since 1962 and has built a loyal workforce with an average tenure of over 12 years, significantly higher than the industry average [5]. Recognition Process - The selection for America's Best Midsized Employers involved an independent survey of over 217,000 U.S. team members from companies with at least 1,000 employees, considering more than 6.5 million employer evaluations [2][3]. - Evaluations were based on personal feedback from team members and public assessments, with personal evaluations carrying more weight [3]. Employee Experience - Mercury Insurance emphasizes team member experience and career growth, which has contributed to its strong company culture and employee satisfaction [4][6]. - The company focuses on six primary drivers for employee satisfaction: image, work atmosphere, wage/salary, diversity, working conditions, and workplace [4]. Leadership Perspective - The CEO of Mercury Insurance, Gabriel Tirador, expressed pride in the company's culture and its impact on team member success, stating that a thriving workforce leads to a thriving company [4][6].

RENO, Nev., April 03, 2025 (GLOBE NEWSWIRE) -- Employers Holdings, Inc. (the “Company”) (NYSE:EIG) today announced that it will release its first quarter 2025 financial results after market close on Thursday, May 1, 2025, 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, May 2, 2025, at 11:00 a.m. EDT / 8:00 a.m. PDT. ...

Core Viewpoint - 1st Source Bank has been recognized as one of America's Best Midsize Employers for the fourth consecutive year, highlighting its strong employee satisfaction and workplace culture [1][2]. Company Overview - 1st Source Corporation, the parent company of 1st Source Bank, has total assets of $8.9 billion and is the largest locally controlled financial institution in the northern Indiana-southwestern Michigan area [3]. - The corporation operates 77 banking centers, 18 specialty finance group locations, nine trust and wealth advisory services locations, 10 insurance offices, and three loan production offices [3]. Employee Recognition - The recognition comes from Forbes, which partnered with Statista to survey over 217,000 employees at U.S. companies with more than 1,000 employees, assessing factors such as salary, work environment, training programs, and advancement opportunities [1][2]. - 1st Source Bank ranked 276 out of 498 midsize companies on the list, indicating a solid position among its peers [1]. Commitment to Culture - The Chief Human Resources Officer emphasized the bank's commitment to creating an engaging work environment that supports personal and professional growth, which has contributed to the positive employee ratings [2].

Company Overview - Employers Holdings, Inc. (NYSE: EIG) is a holding company that specializes in providing workers' compensation insurance and services, primarily targeting small and mid-sized businesses in low-to-medium hazard industries [4]. - The company has over a century of experience in delivering comprehensive coverage solutions, focusing on protecting employees through exceptional claims management, loss control, and risk management services [4]. Recent Developments - On March 3, 2025, Employers Holdings, Inc. announced the appointment of Marvin Pestcoe to its Board of Directors [1]. - Marvin Pestcoe brings over 40 years of experience in insurance, reinsurance, and investments, having held various executive roles and leadership positions [2]. - Pestcoe's previous roles include serving as Executive Chair and CEO of Langhorne Re and holding executive positions at Partner Re and Swiss Re New Markets [2]. Board Contributions - Pestcoe has served on several boards of directors for both private and public companies, currently chairing the Underwriting Committee at Hamilton Insurance Group, Ltd., and serving on the boards of Catalina Holdings (Bermuda) Ltd. [3]. - The company anticipates benefiting from Pestcoe's insights in areas such as profit center management, corporate strategy, data analytics, and risk management [2]. Product Offerings - Employers Holdings, Inc. offers Cerity®, a digital-first platform providing direct-to-consumer workers' compensation insurance solutions that are fast and affordable [5]. - The company operates across the United States, with insurance offered through various subsidiaries, all rated A (Excellent) by AM Best [6].

Financial Performance - In 2024, the company reported net premiums written of $769.5 million, an increase from $760.6 million in 2023 and $707.2 million in 2022[48]. - Total revenues for 2024 were $880.7 million, compared to $850.9 million in 2023 and $713.5 million in 2022[48]. - The company achieved a net income of $118.6 million in 2024, slightly up from $118.1 million in 2023 and significantly higher than $48.4 million in 2022[48]. - New business premiums written in 2024 were $227.5 million, up from $201.9 million in 2023 and $167.7 million in 2022[38]. - Renewal premiums in 2024 reached $559.6 million, compared to $526.7 million in 2023 and $483.2 million in 2022[38]. - The company experienced net investment income of $107.0 million in 2024, compared to $106.5 million in 2023 and $89.8 million in 2022[43]. - The company ended 2024 with total assets of $3.5 billion, down from $3.6 billion in 2023[47]. Underwriting and Premiums - Total in-force premiums increased from $622.5 million in 2022 to $742.1 million in 2024, representing a growth of 19.2%[68]. - The number of policies in-force rose by 7.8% from 121,356 in 2022 to 130,767 in 2024[68]. - In-force premiums in California reached $336.1 million in 2024, up from $279.7 million in 2022, indicating a significant increase[69]. - The company targets small to mid-sized businesses in low-to-medium hazard industries, focusing on risks likely to generate loss ratios below the industry average[67]. - The average annual in-force premium per policyholder increased from $5,495 in 2023 to $5,675 in 2024[72]. Operational Efficiency - The integration of direct-to-consumer operations into mainstream operations is expected to generate cost savings and improve efficiency[61]. - The company has implemented a new digital first notice of loss tool and an enhanced payment processing system in 2024 to improve operational efficiency[63]. - The claims department utilizes a predictive model for early identification of claims likely to develop into large losses, ensuring timely resource allocation[59]. - The company actively investigates and pursues fraud, including claimant and provider fraud, to mitigate claims exposure[58]. - The company maintains business continuity and disaster recovery plans to ensure critical functions are restored in case of disruptions[64]. Investment and Reinsurance - The total carrying value of the company's investment portfolio was more than $2.4 billion as of December 31, 2024[93]. - Approximately $190.0 million in excess of $10.0 million retention on a per occurrence basis is covered under the current reinsurance program, effective from July 1, 2024 to July 1, 2025[79]. - Estimated remaining liabilities subject to the Loss Portfolio Transfer (LPT) Agreement were approximately $277.1 million and $291.7 million as of December 31, 2024 and 2023, respectively[83]. - The LPT Agreement ceded $1.5 billion in liabilities for incurred but unpaid losses for consideration of $775.0 million in cash[83]. Distribution and Market Concentration - Specialty agents and distribution partners generated 34.7% of in-force premiums as of December 31, 2024, up from 30.7% in 2022[101]. - ADP, the largest payroll services provider in the U.S., generated 17.2% of in-force premiums as of December 31, 2024, compared to 15.0% in 2022[102]. - Digital agents contributed 7.0% of in-force premiums as of December 31, 2024, an increase from 4.5% in 2022[103]. - The company had approximately 2,500 traditional insurance agencies marketing its products as of December 31, 2024, generating 65.3% of in-force premiums[98]. - The company generated 45% of its in-force premiums from California as of December 31, 2024, indicating a significant concentration in that state[134]. Regulatory and Competitive Environment - The property and casualty insurance industry is cyclical, with current excess underwriting capacity leading to lower rate levels and smaller profit margins[132]. - The company faces intense competition in the workers' compensation insurance market, which could adversely affect its ability to sell policies at adequate rates[129]. - The company is subject to various state insurance assessments, which are accrued as liabilities and recognized as expenses as related premiums are earned[117]. - The company must comply with state insurance regulations, which require prior approval for changes in control and significant transactions involving its subsidiaries[112]. - Regulatory changes could significantly impact the company’s operations, particularly in key states like California, Florida, Nevada, and New York[164]. Risk Management - The company is exposed to risks from acts of terrorism and natural disasters, which could materially affect financial results and operations[159]. - Recent geopolitical uncertainties have indirectly impacted the value of the company’s investment portfolio, with potential future effects[163]. - The company faces credit risk from reinsurers, which could adversely affect financial condition if they fail to pay ceded losses[144]. - The company’s loss and LAE reserves are estimates and may be inadequate, with potential adjustments impacting financial results[153]. - Cybersecurity threats pose significant risks, with potential disruptions to operations and loss of sensitive data impacting reputation and financial condition[186]. - The company maintains insurance for certain liabilities, but coverage may not be adequate for potential losses from disruptions or security breaches[189]. Capital Management - The company maintains a strong equity capital position, having declared $150.7 million in dividends and repurchased $149.2 million of its common stock over the past three years[35]. - The company has declared and paid quarterly cash dividends since becoming publicly traded in 2007, with expectations to continue this practice in the future[210]. - The company repurchased a total of 193,857 shares of its common stock during the quarter ended December 31, 2024, at an average price of $51.20 per share[211]. - The company has a stock repurchase authorization of up to $100 million, extended through July 31, 2025[211]. - The company may require additional capital in the future, which could be unavailable or only available on unfavorable terms, potentially impacting growth and operations[182]. Workforce and Diversity - The company has improved female representation in leadership roles, with women making up 64% of all employees, 72% of managers, and 71% of the executive team[122]. - The Chief Information Security Officer (CISO) has over 30 years of experience in technology and cybersecurity, enhancing the company's risk management capabilities[202]. - The company relies heavily on key executives and employees for industry expertise and relationships, and losing these individuals could disrupt operations and financial performance[183]. Real Estate and Operations - The company has reduced its real estate footprint by closing and vacating certain offices in California, Missouri, Nevada, North Carolina, and Wisconsin since 2021[202]. - As of February 1, 2025, the company leased a total of 50,152 square feet of office space across four states, including its corporate headquarters in Reno, Nevada[202].