Employer Holdings Inc (Eig) Q1 2025 earnings call highlights: navigating challenges with …

• Net premium: 183 million US dollars, a decrease of 1% compared to the previous year.

• Gross bonus written: $ 212 million, an increase of 1% compared to the previous year.

• Net investment income: 32 million US dollars, an increase of 20% compared to the previous year.

• Current loss year loss and Lae ratio: 66%, from 64% in 2024.

• Drawing relationship: 23.4%, compared to 25% a year ago.

• Net income: $ 12.8 million, affected by USD $ 9 million net subsequent tax losses.

• Adapted net income: USD 21.3 million, an increase of 24% compared to $ 17.2 million in the previous year.

• Share buyback: Orders of $ 21 million bought back at an average price of $ 49.69 per share.

• New share buyback program: Approved up to $ 125 million over 20 months.

• Dividend increase: 7% increase to $ 0.32 per share.

• Book value per share: The adjusted book value per share rose by 14% to $ 48.25 and rose by 9% to $ 50.75.

Appearance date: May 02, 2025

You can find the complete copy of the earnings call in the complete earnings call.

• Employer Holdings Inc (NYSE: EIG) achieved a record number of violent guidelines with a growth rate of 4%previous year.

• The net investment income rose by 20% to 32 million US dollars, which marks the highest in the history of the company as a listed company.

• The insurance cost rate improved to 23.4% compared to 25% a year ago, which indicates effective cost management.

• The company declared an increase in its quarterly dividend by 7% to $ 0.32 per share, which contradicts trust in the financial strength.

• A new share buyback program was approved, which enabled the buyback of ordinary shares of up to $ 125 million over 20 months.

• The deserved net premiums decreased by 1% to $ 183 million, which indicates challenges for new business and examination premiums.

• The current loss of the accident year and the Lae ratio rose from 64% to 66%, which is due to the ongoing competitive interest environments and increasing demands.

• Due to the fluctuations in the US capital market, the net result was negatively influenced by $ 9 million in non-realized investment losses of $ 9 million.

• The company was put under pressure through cumulative trauma claims in California, which contributed to increased loss rates.

• Despite improvements, the general industry trends show a decline in favorable development and influence the reserve layoffs.

Q: Kathy, could you talk about details about the loss trends and measures that have taken to protect the balance and concentrate on profitability? A: Katherine Antonello, CEO, explained that the increase in the loss of the accident and the LAE ratio of 64% to 66% reflects several factors: a competitive interest rate, pressure on the years 2023 and 2024, an increase in cumulative trauma claims in California and a decrease in favorable development. These factors agree with the industry trends, and employer stocks have taken targeted pricing and drawing measures to tackle them.