Employers (EIG)2025-02-21 18:43Financial Data and Key Metrics Changes - The fourth quarter contributed to the highest levels of written and earned premium, enforced premium, policies, and net investment income in the company's history [9] - Gross written premium excluding final audit premiums increased by 3% in Q4 and 6% for the full year [10] - Net premiums earned were 750 million for the year, representing increases of 1% and 4% respectively [16] - The combined ratio for Q4 was 95.5% excluding LTT, and for the full year, it was 98.6% excluding LPT, marking the tenth consecutive year of underwriting profit [11] - The underwriting and general administrative expense ratio for Q4 was 23.2%, down from 24.6% a year ago, and for the full year, it was 23.5%, down from 24.9% [12][20] - Net investment income for Q4 was 26 million a year ago, and for the full year, it was 9 million of favorable prior year loss reserve development during Q4, down from 10 million of common stock in Q4 and an additional 11 million since year-end [25] - AM Best upgraded the financial strength ratings of the company's insurance companies to A [28] Q&A Session Summary Question: Can you give us a sense of the magnitude of the change in the loss pick for the current accident year? - Management explained that the current accident year loss and LAE ratio is determined annually based on various factors, including pricing environment and growth prospects [34] Question: Is one to think the 70 basis points uptick in 2024 is a good starting point for 2025? - Management stated that they do not provide specific guidance but expect the decrease in the expense ratio to offset the increase in the loss and LAE ratio [39] Question: What trends are driving the higher actuarial trend selection? - Management indicated that frequency has been trending downward, and overall claim severity values have remained steady, with medical inflation being relatively mild [44] Question: Can you describe the increase in the higher hazard groups? - Management noted that the shift into higher hazard groups is tied to appetite expansion efforts and that they are being cautious in selecting risks [66] Question: Was the 9 million favorable development related to any particular accident years? - Management confirmed that it was predominantly related to accident years 2020 and prior [71]