Employers (US:EIG)2024-02-16 17:38Financial Data and Key Metrics Changes - Net investment income increased by 19% in 2023, contributing positively to revenue [4] - Gross premiums written were $178 million for Q4 and $768 million for the full year, representing increases of 3% and 7% respectively [6] - Net premiums earned were $188 million for Q4 and $722 million for 2023, with increases of 4% and 7% respectively [6] - Adjusted net income increased by 5% for Q4 and 26% for the full year, with stronger increases on a per share basis [31] - Income tax expense for the full year was $30 million, reflecting a 20% effective tax rate compared to $7 million and a 13% effective tax rate a year ago [8] Business Line Data and Key Metrics Changes - Excluding final audit premium and changes in audit accrual, gross written premium increased by 12% for both the full year and Q4 [14] - The loss and LAE ratios, excluding the impact of LPT, were 50.2% for Q4 and 57.2% for the full year, showing meaningful improvements from the previous year [32] Market Data and Key Metrics Changes - The company achieved a 20% increase in new business and a 9% increase in renewal business in 2023 [14] - The company reported an all-time high in terms of policies in force, which is expected to benefit future performance [15] Company Strategy and Development Direction - The company completed the integration of Cerity's operations, allowing for continued direct-to-consumer policies and expected fixed underwriting expense savings [20] - Plans for 2024 include delivering more self-service options to policyholders and agents, as well as continuing appetite expansion efforts [21] - The company aims to focus on the future of small business workers' compensation and enhancing customer experience [36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong capital position supporting growth and technology initiatives for the upcoming year [21] - Medical inflation has remained mild, with no significant indications of creeping costs within the company's data [26][41] Other Important Information - The company returned $107 million to shareholders through share repurchases and dividends in 2023 [35] - The company repurchased $15.4 million of common stock at an average price of $38.40 per share during the quarter [19] Q&A Session Summary Question: Update on strategic partnerships and commission structures - Management confirmed that changes in commission structures with payroll partners have been fully reflected in financials, and growth across all segments remains strong [25] Question: Insights on medical inflation and its potential delayed impact - Management acknowledged that medical inflation has been mild and indicated that they have already accounted for potential increases in reserves [26][41]