Employers (US:EIG)2025-05-01 20:19Financial 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]