Employers (EIG) - 2024 Q4 - Annual Results

Financial Performance - Gross premiums written for Q4 2024 were $176.3 million, a decrease of 1% from $178.2 million in Q4 2023[4] - Net income for Q4 2024 was $28.3 million, down 38% from $45.6 million in Q4 2023[4] - Net premiums earned increased by 1% to $190.2 million in Q4 2024 from $187.5 million in Q4 2023[4] - Total revenues for the year ended December 31, 2024, were $880.7 million, compared to $850.9 million in 2023, reflecting a growth of 3%[9] - Adjusted net income for the year ended December 31, 2024, was $94.0 million, down from $101.7 million in 2023[11] - Net income for the three months ended December 31, 2024, was $28.3 million, a decrease from $45.6 million in the same period of 2023[11] - Adjusted net income for the three months ended December 31, 2024, was $28.7 million, compared to $36.1 million in 2023, reflecting a decrease of 20.5%[22] - Net income excluding the LPT Agreement for the year ended December 31, 2024, was $113.0 million, up from $110.9 million in 2023, a growth of 1.9%[22] Underwriting Performance - The combined ratio excluding LPT for Q4 2024 was 95.5%, compared to 88.8% in Q4 2023, indicating a deterioration in underwriting performance[4] - The GAAP combined ratio for the three months ended December 31, 2024, was 95.5%, compared to 88.1% in the same period of 2023[13] - Losses and LAE incurred for the year ended December 31, 2024, totaled $456.2 million, an increase from $405.7 million in 2023[13] Shareholder Metrics - Cash dividends declared per share increased by 7% to $0.30 in Q4 2024 from $0.28 in Q4 2023[4] - Basic earnings per share (EPS) decreased to $1.14 in Q4 2024 from $1.78 in Q4 2023, a decline of 36%[22] - Cash dividends declared per share rose to $1.18 in 2024 from $1.10 in 2023, an increase of 7.3%[19] - Book value per share rose to $43.52 in Q4 2024, up 9% from $39.96 in Q4 2023[7] - Book value per share increased by 11.9% year-to-date, reaching $43.52 in 2024 compared to $39.96 in 2023[19] - Adjusted book value per share increased to $50.71 in 2024 from $47.26 in 2023, marking a growth of 9.8%[19] - Stockholders' equity increased by 5% to $1,068.7 million as of December 31, 2024, compared to $1,013.9 million in 2023[7] - Stockholders' equity at the end of the period was $1,068.7 million, unchanged from the previous year[11] - Stockholders' equity increased to $1,068.7 million in 2024 from $1,013.9 million in 2023, representing a growth of 5.4%[19] - The average stockholders' equity for the year ended December 31, 2024, was $1,041.3 million, compared to $979.1 million in 2023[11] Investment Performance - Net investment income for the year ended December 31, 2024, was $107.0 million, slightly up from $106.5 million in 2023[4] - Total investments and cash as of December 31, 2024, amounted to $2,532.4 million, slightly up from $2,504.7 million in 2023[17] - The weighted average ending book yield on fixed income securities, cash, and cash equivalents was 4.5% as of December 31, 2024[17] Other Metrics - The impact of the LPT Agreement on net income was minimal, with a contribution of $0.1 million in Q4 2024 compared to a loss of $1.2 million in Q4 2023[22] - Deferred Gain decreased slightly to $94.0 million in 2024 from $99.2 million in 2023, a decline of 5.2%[19] - The net unpaid losses and LAE at the end of the period was $1,395.8 million, consistent with the previous year[15] - Average common shares outstanding (basic) decreased to 24,725,425 in Q4 2024 from 25,645,821 in Q4 2023, a reduction of 3.6%[22]