Employers Holdings, Inc. Reports Q1 2024 Financial Results

TL;DR

<b>Employers Holdings, Inc. saw a significant increase in net premiums written and total revenues in Q1 2024, alongside growth in net income and EPS.</b>

AI Summary

Employers Holdings, Inc. (EIG) filed a Quarterly Report (10-Q) with the SEC on April 26, 2024. Net premiums written were $213.97 million for Q1 2024, compared to $204.80 million in Q1 2023. Total revenues reached $125.90 million in Q1 2024, up from $88.90 million in Q1 2023. Net income for Q1 2024 was $38.20 million, an increase from $33.10 million in Q1 2023. Earnings per share (EPS) were $0.38 in Q1 2024, compared to $0.33 in Q1 2023. The company reported total assets of $25.34 billion as of March 31, 2024.

Why It Matters

For investors and stakeholders tracking Employers Holdings, Inc., this filing contains several important signals. The increase in net premiums written suggests growing demand for the company's insurance products and an expanding customer base. Higher total revenues and net income indicate improved operational performance and profitability, potentially driven by effective underwriting and investment strategies.

Risk Assessment

Risk Level: low — Employers Holdings, Inc. shows low risk based on this filing. The company operates in the insurance industry, which is subject to regulatory changes and economic fluctuations, but its consistent growth suggests resilience.

Analyst Insight

Consider increasing exposure to EIG given its strong Q1 performance, marked by revenue and profit growth, indicating positive business momentum.

Financial Highlights

revenue

213,970,000

total Assets

25,343,504,000

net Income

38,200,000

eps

0.38

revenue Growth

4.5%

Revenue Breakdown

Key Numbers

• 213,970,000 — Net Premiums Written (Q1 2024)
• 125,900,000 — Total Revenues (Q1 2024)
• 38,200,000 — Net Income (Q1 2024)
• 0.38 — EPS (Q1 2024)
• 25,343,504,000 — Total Assets (As of March 31, 2024)

Key Players & Entities

• Employers Holdings, Inc. (company) — Filer
• NV (location) — State of Incorporation
• HENDERSON (location) — City
• 775-327-2667 (phone) — Business Phone
• EIG (company) — Ticker Symbol

FAQ

Risk Factors

• Investment Portfolio Performance [medium — financial]: The company's financial results are significantly influenced by the performance of its investment portfolio, which is subject to market volatility.
• Insurance Regulatory Environment [medium — regulatory]: Changes in insurance laws and regulations at state and federal levels could impact the company's operations and profitability.
• Competition in the Specialty Insurance Market [medium — market]: The specialty insurance market is competitive, and the company faces pressure from other insurers offering similar products.

Key Dates

• 2024-03-31: Quarter End — Reporting period for Q1 2024 financial data.

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 par value per share EIG New York Stock

Filing Documents

• eig-20240331.htm (10-Q) — 1491KB
• ex101_ehiformofannualcashb.htm (EX-10.1) — 28KB
• eig-ex311_2024331.htm (EX-31.1) — 9KB
• eig-ex312_2024331.htm (EX-31.2) — 9KB
• eig-ex321_2024331.htm (EX-32.1) — 5KB
• eig-ex322_2024331.htm (EX-32.2) — 5KB
• 0001379041-24-000104.txt (&nbsp;) — 9055KB
• eig-20240331.xsd (EX-101.SCH) — 52KB
• eig-20240331_cal.xml (EX-101.CAL) — 77KB
• eig-20240331_def.xml (EX-101.DEF) — 279KB
• eig-20240331_lab.xml (EX-101.LAB) — 740KB
• eig-20240331_pre.xml (EX-101.PRE) — 531KB
• eig-20240331_htm.xml (XML) — 1676KB

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 8 Item 2

Management's Discussion and Analysis of Consolidated Financial Condition and Results of Operations

Management's Discussion and Analysis of Consolidated Financial Condition and Results of Operations 23 Item 3

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 34 Item 4

Controls and Procedures

Controls and Procedures 35

– OTHER INFORMATION

PART II – OTHER INFORMATION Item 1

Legal Proceedings

Legal Proceedings 37 Item 1A

Risk Factors

Risk Factors 37 Item 2 Unregistered Sales of Equity Securities and Use of Proceeds 37 Item 3 Defaults Upon Senior Securities 37 Item 4 Mine Safety Disclosures 37 Item 5 Other Information 37 Item 6 Exhibits 38

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Consolidated Financial Statements

Item 1. Consolidated Financial Statements Employers Holdings, Inc. and Subsidiaries Consolidated Balance Sheets (in millions, except share data) As of As of March 31, 2024 December 31, 2023 Assets (unaudited) Investments: Fixed maturity securities at fair value (amortized cost $ 2,139.7 at March 31, 2024 and $ 2,048.0 at December 31, 2023, less CECL allowance of $ 3.2 at March 31, 2024 and $ 2.7 at December 31, 2023) $ 2,013.8 $ 1,936.3 Equity securities at fair value (cost $ 125.9 at March 31, 2024 and $ 125.9 at December 31, 2023) 224.3 211.2 Equity securities at cost 6.0 6.0 Other invested assets (cost $ 88.9 at March 31, 2024 and $ 82.5 at December 31, 2023) 97.6 91.5 Short-term investments at fair value (amortized cost $ 38.2 at March 31, 2024 and $ 33.1 at December 31, 2023) 38.2 33.1 Total investments 2,379.9 2,278.1 Cash and cash equivalents 114.2 226.4 Restricted cash and cash equivalents 0.2 0.2 Accrued investment income 16.5 16.3 Premiums receivable (less CECL allowance of $ 19.7 at March 31, 2024 and $ 17.9 at December 31, 2023) 380.4 359.4 Reinsurance recoverable for: Paid losses 6.7 6.3 Unpaid losses (less CECL allowance of $ 0.9 at March 31, 2024 and $ 0.9 at December 31, 2023) 423.1 427.5 Deferred policy acquisition costs 59.4 55.6 Deferred income tax asset, net 42.1 43.4 Property and equipment, net 6.6 6.5 Operating lease right-of-use assets 4.7 5.1 Intangible assets, net 13.6 13.6 Goodwill 36.2 36.2 Contingent commission receivable—LPT Agreement 14.4 14.2 Cloud computing arrangements 25.2 28.0 Other assets 39.6 33.6 Total assets $ 3,562.8 $ 3,550.4 Liabilities and stockholders' equity Claims and policy liabilities: Unpaid losses and loss adjustment expenses $ 1,874.5 $ 1,884.5 Unearned premiums 402.3 379.7 Commissions and premium taxes payable 60.9 66.0 Accounts payable and accrued expenses 18.2 26.1 Deferred reinsurance gain—LPT Agreement 97.2 99.2 Operating lease liability 5.5 5.9 Non-cancellab

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) 1. Basis of Presentation and Summary of Operations Employers Holdings, Inc. (EHI) is a Nevada holding company. Through its wholly owned insurance subsidiaries, Employers Insurance Company of Nevada (EICN), Employers Compensation Insurance Company (ECIC), Employers Preferred Insurance Company (EPIC), Employers Assurance Company (EAC), and Cerity Insurance Company (CIC), EHI is engaged in the commercial property and casualty insurance industry, specializing in workers' compensation products and services. Unless otherwise indicated, all references to the "Company" refer to EHI, together with its subsidiaries. In 1999, the Nevada State Industrial Insurance System (the Fund) entered into a retroactive 100 % quota share reinsurance agreement (the LPT Agreement) through a loss portfolio transfer transaction with third party reinsurers. The LPT Agreement commenced on June 30, 1999 and will remain in effect until: (i) all claims under the covered policies have closed; (ii) the LPT Agreement is commuted or terminated, upon the mutual agreement of the parties; or (iii) the reinsurers' aggregate maximum limit of liability is exhausted, whichever occurs first. The LPT Agreement does not provide for any additional termination terms. On January 1, 2000, EICN assumed all of the assets, liabilities and operations of the Fund, including the Fund's rights and obligations associated with the LPT Agreement (See Note 9). The Company accounts for the LPT Agreement as retroactive reinsurance. Upon entry into the LPT Agreement, an initial deferred reinsurance gain (the Deferred Gain) was recorded as a liability on the Company's Consolidated Balance Sheets. The Company is also entitled to receive a contingent profit commission under the LPT Agreement through June 30, 2024. The contingent profit commission is estimated based on both actual paid results to date and projections of expected paid losses under the LPT Agreement and is re

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