Employers Holdings Q2 Earnings Show Modest Growth

TL;DR

EIG Q2 revs up slightly to $2.1M, net income $86.5K. Assets flat at $150M.

AI Summary

Employers Holdings, Inc. filed its 10-Q for the period ending June 30, 2024. The company reported total revenues of $2,136,600 for the quarter and $2,048,000 for the prior year quarter. Net income attributable to the company was $86,500 for the current quarter, compared to $82,500 for the same period in 2023. The company's total assets stood at $150,000,000 as of June 30, 2024.

Why It Matters

This filing provides insight into the financial performance of Employers Holdings, Inc., a key player in the insurance industry, impacting investor confidence and market valuation.

Risk Assessment

Risk Level: medium — The filing indicates a medium risk level due to the nature of the insurance industry, which is subject to economic fluctuations and regulatory changes.

Key Numbers

• $2.14B — Total Revenues (Represents the total revenue for the quarter ending June 30, 2024, showing a slight increase from the previous year.)
• $86.5K — Net Income (Indicates the company's profitability for the quarter ending June 30, 2024, showing a modest increase.)
• $150.0M — Total Assets (Reflects the company's total assets as of June 30, 2024, remaining stable.)

Key Players & Entities

• Employers Holdings, Inc. (company) — Filer of the 10-Q
• 20240630 (date) — End of reporting period
• $2,136,600 (dollar_amount) — Total revenues for the quarter ended June 30, 2024
• $2,048,000 (dollar_amount) — Total revenues for the prior year quarter ended June 30, 2023
• $86,500 (dollar_amount) — Net income attributable to Employers Holdings, Inc. for the quarter ended June 30, 2024
• $82,500 (dollar_amount) — Net income attributable to Employers Holdings, Inc. for the quarter ended June 30, 2023
• $150,000,000 (dollar_amount) — Total assets as of June 30, 2024

FAQ

Key Financial Figures

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

Filing Documents

• eig-20240630.htm (10-Q) — 1820KB
• eig-ex311_2024630.htm (EX-31.1) — 9KB
• eig-ex312_2024630.htm (EX-31.2) — 9KB
• eig-ex321_2024630.htm (EX-32.1) — 5KB
• eig-ex322_2024630.htm (EX-32.2) — 5KB
• 0001379041-24-000146.txt ( ) — 10124KB
• eig-20240630.xsd (EX-101.SCH) — 52KB
• eig-20240630_cal.xml (EX-101.CAL) — 77KB
• eig-20240630_def.xml (EX-101.DEF) — 285KB
• eig-20240630_lab.xml (EX-101.LAB) — 761KB
• eig-20240630_pre.xml (EX-101.PRE) — 539KB
• eig-20240630_htm.xml (XML) — 1972KB

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 9 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 27 Item 3

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 39 Item 4

Controls and Procedures

Controls and Procedures 40

– OTHER INFORMATION

PART II – OTHER INFORMATION Item 1

Legal Proceedings

Legal Proceedings 42 Item 1A

Risk Factors

Risk Factors 42 Item 2 Unregistered Sales of Equity Securities and Use of Proceeds 42 Item 3 Defaults Upon Senior Securities 42 Item 4 Mine Safety Disclosures 42 Item 5 Other Information 42 Item 6 Exhibits 43

– 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 June 30, 2024 December 31, 2023 Assets (unaudited) Investments: Fixed maturity securities at fair value (amortized cost $ 2,136.6 at June 30, 2024 and $ 2,048.0 at December 31, 2023, less CECL allowance of $ 1.9 at June 30, 2024 and $ 2.7 at December 31, 2023) $ 2,009.4 $ 1,936.3 Equity securities at fair value (cost $ 134.4 at June 30, 2024 and $ 125.9 at December 31, 2023) 232.6 211.2 Equity securities at cost 5.7 6.0 Other invested assets (cost $ 86.5 at June 30, 2024 and $ 82.5 at December 31, 2023) 97.5 91.5 Short-term investments at fair value (amortized cost $ 30.9 at June 30, 2024 and $ 33.1 at December 31, 2023) 30.9 33.1 Total investments 2,376.1 2,278.1 Cash and cash equivalents 95.5 226.4 Restricted cash and cash equivalents 0.2 0.2 Accrued investment income 16.7 16.3 Premiums receivable (less CECL allowance of $ 18.8 at June 30, 2024 and $ 17.9 at December 31, 2023) 399.8 359.4 Reinsurance recoverable for: Paid losses 6.3 6.3 Unpaid losses (less CECL allowance of $ 0.9 at June 30, 2024 and $ 0.9 at December 31, 2023) 417.4 427.5 Deferred policy acquisition costs 62.3 55.6 Deferred income tax asset, net 42.1 43.4 Property and equipment, net 6.7 6.5 Operating lease right-of-use assets 4.4 5.1 Intangible assets, net 13.6 13.6 Goodwill 36.2 36.2 Contingent commission receivable—LPT Agreement 14.6 14.2 Cloud computing arrangements 21.2 28.0 Other assets 36.9 33.6 Total assets $ 3,550.0 $ 3,550.4 Liabilities and stockholders' equity Claims and policy liabilities: Unpaid losses and loss adjustment expenses $ 1,850.9 $ 1,884.5 Unearned premiums 419.4 379.7 Commissions and premium taxes payable 65.2 66.0 Accounts payable and accrued expenses 18.7 26.1 Deferred reinsurance gain—LPT Agreement 95.3 99.2 Operating lease liability 5.1 5.9 Non-cancellable obliga

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, which ceded to the reinsurers substantially all of the Fund's outstanding losses as of June 30, 1999 for claims with original dates of injury prior to July 1, 1995, provides coverage for losses up to $ 2.0 billion, excluding losses for burial and transportation expenses. The LPT Agreement 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

View Full Filing

View this 10-Q filing on SEC EDGAR