Employers (US:EIG)2025-10-31 20:17Financial Performance - Total revenues for the three months ended September 30, 2025, were $239.3 million, an increase from $224.0 million in the same period of 2024, representing a growth of 6.0%[15] - Net premiums earned for the nine months ended September 30, 2025, reached $573.4 million, compared to $559.3 million for the same period in 2024, reflecting a year-over-year increase of 2.0%[15] - The company reported a net loss of $8.3 million for the three months ended September 30, 2025, compared to a net income of $30.3 million in the same period of 2024[15] - The company reported net investment income of $26.1 million for the three months ended September 30, 2025, slightly down from $26.6 million in the same period of 2024[15] - The company’s comprehensive income for the three months ended September 30, 2025, was $8.3 million, a decrease from $84.0 million in the same period of 2024[15] - Net income for the nine months ended September 30, 2025, is $34.2 million, compared to $90.3 million for the same period in 2024, indicating a decrease of approximately 62.1%[23] - The company reported a total expense of $646.6 million for the nine months ended September 30, 2025, with losses and loss adjustment expenses at $447.4 million[117] Assets and Liabilities - Total assets as of September 30, 2025, were $3,526.4 million, a slight decrease from $3,541.3 million as of December 31, 2024[12] - Stockholders' equity decreased to $1,039.2 million as of September 30, 2025, down from $1,068.7 million at the end of 2024[12] - The total liabilities increased to $2,487.2 million as of September 30, 2025, compared to $2,472.6 million at December 31, 2024[12] - As of September 30, 2025, total stockholders' equity is $1,039.2 million, a decrease from $1,093.4 million as of September 30, 2024, reflecting a decline of approximately 4.9%[20] Cash and Investments - Total cash, cash equivalents, and restricted cash at the end of the period is $167.0 million, an increase from $143.5 million at the end of September 2024, representing a growth of approximately 16.4%[23] - The Company reported total investments at fair value of $2,267.9 million as of September 30, 2025, compared to $2,351.6 million as of December 31, 2024, indicating a decrease of about 3.5%[37] - The Company’s cash and cash equivalents increased to $166.8 million as of September 30, 2025, compared to $68.3 million as of December 31, 2024, marking a growth of approximately 144.5%[37] - The fair value of investment securities on deposit with the FHLB was $407.7 million as of September 30, 2025, supporting the Letter of Credit Agreements[100] Dividends and Stock Repurchase - The company declared cash dividends of $0.32 per common share for the three months ended September 30, 2025, compared to $0.30 in the same period of 2024[15] - The company declared dividends totaling $22.7 million for the nine months ended September 30, 2025, consistent with the previous year's $22.8 million[23] - EHI paid $22.8 million in dividends to stockholders for each of the nine months ended September 30, 2025, and 2024[197] - The company plans to execute a recapitalization plan with a $125.0 million increase to the existing stock repurchase program[123] Underwriting and Losses - The combined ratio for the Insurance Operations segment was 129.7% for the three months ended September 30, 2025, indicating an underwriting loss[115] - Losses and loss adjustment expenses for the three months ended September 30, 2025, were $186.6 million, significantly higher than $117.7 million in the prior year, indicating an increase of 58.6%[15] - The liability for unpaid losses and loss adjustment expenses (LAE) at the end of the period was $1,822.5 million as of September 30, 2025, compared to $1,836.5 million for the same period in 2024[85] - Current accident year losses and LAE for the three months ended September 30, 2025, were $150.1 million, an increase from $119.3 million in the same period of 2024, representing a 25.0% increase[148] Compliance and Credit Facilities - As of September 30, 2025, EHI maintained a minimum consolidated net worth of $800 million and a debt to total capitalization ratio of no more than 35%[95] - EHI has a $25.0 million unsecured revolving credit facility, with an option to increase it to $35.0 million, which can be used for working capital and general corporate purposes[179] - The Company entered into a Credit Agreement providing for a $25.0 million unsecured revolving credit facility on May 28, 2024[92] Technology and Strategic Focus - The company continues to invest in technology to enhance data analytic capabilities and reduce operating costs over the long term[129] - The company focuses on disciplined underwriting and claims management to pursue profitable growth opportunities[128] - The company continues to focus on diversifying risk exposure and leveraging data-driven strategies to improve underwriting performance[145]