Employers Holdings Q3 Net Income Rises to $88.8M

TL;DR

EIG Q3 profit up to $88.8M on higher premiums. Good quarter!

AI Summary

Employers Holdings, Inc. reported its third-quarter results for the period ending September 30, 2024. The company's net premiums earned were $212.5 million for the quarter, compared to $204.8 million in the same period last year. Net income available to common stockholders was $88.8 million, or $1.40 per diluted share, an increase from $82.5 million, or $1.30 per diluted share, in the third quarter of 2023.

Why It Matters

The company's increased net income and premiums earned suggest a positive financial performance, potentially indicating strong market positioning and effective operational strategies in the insurance sector.

Risk Assessment

Risk Level: low — The filing indicates a stable financial performance with modest growth, without any immediate red flags or significant negative trends.

Key Numbers

• $212.5M — Net Premiums Earned (Q3 2024) (Represents the core revenue generated from insurance policies.)
• $88.8M — Net Income (Q3 2024) (Indicates the company's profitability for the quarter.)
• $1.40 — Diluted EPS (Q3 2024) (Shows earnings per share, a key metric for investors.)
• 2,124,600 — Total Revenues (Q3 2024) (Overall revenue generated by the company.)
• 144,700 — Loss and Loss Adjustment Expenses (Q3 2024) (Costs associated with claims and their settlement.)

Key Players & Entities

• Employers Holdings, Inc. (company) — Filer of the 10-Q report
• 2024-09-30 (date) — End of the reporting period
• $212.5 million (dollar_amount) — Net premiums earned for Q3 2024
• $204.8 million (dollar_amount) — Net premiums earned for Q3 2023
• $88.8 million (dollar_amount) — Net income available to common stockholders for Q3 2024
• $1.40 (dollar_amount) — Diluted earnings per share for Q3 2024
• $82.5 million (dollar_amount) — Net income available to common stockholders for Q3 2023
• $1.30 (dollar_amount) — Diluted earnings per share for Q3 2023

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-20240930.htm (10-Q) — 1804KB
• eig-ex311_2024930.htm (EX-31.1) — 9KB
• eig-ex312_2024930.htm (EX-31.2) — 9KB
• eig-ex321_2024930.htm (EX-32.1) — 5KB
• eig-ex322_2024930.htm (EX-32.2) — 5KB
• 0001379041-24-000166.txt ( ) — 10058KB
• eig-20240930.xsd (EX-101.SCH) — 53KB
• eig-20240930_cal.xml (EX-101.CAL) — 77KB
• eig-20240930_def.xml (EX-101.DEF) — 279KB
• eig-20240930_lab.xml (EX-101.LAB) — 770KB
• eig-20240930_pre.xml (EX-101.PRE) — 538KB
• eig-20240930_htm.xml (XML) — 1947KB

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 September 30, 2024 December 31, 2023 Assets (unaudited) Investments: Fixed maturity securities at fair value (amortized cost $ 2,124.6 at September 30, 2024 and $ 2,048.0 at December 31, 2023, less CECL allowance of $ 1.4 at September 30, 2024 and $ 2.7 at December 31, 2023) $ 2,065.8 $ 1,936.3 Equity securities at fair value (cost $ 144.7 at September 30, 2024 and $ 125.9 at December 31, 2023) 256.2 211.2 Equity securities at cost 5.7 6.0 Other invested assets (cost $ 88.8 at September 30, 2024 and $ 82.5 at December 31, 2023) 99.7 91.5 Short-term investments at fair value (amortized cost $ 30.6 at September 30, 2024 and $ 33.1 at December 31, 2023) 30.6 33.1 Total investments 2,458.0 2,278.1 Cash and cash equivalents 143.3 226.4 Restricted cash and cash equivalents 0.2 0.2 Accrued investment income 15.8 16.3 Premiums receivable (less CECL allowance of $ 16.2 at September 30, 2024 and $ 17.9 at December 31, 2023) 378.8 359.4 Reinsurance recoverable for: Paid losses 6.6 6.3 Unpaid losses (less CECL allowance of $ 0.9 at September 30, 2024 and $ 0.9 at December 31, 2023) 412.2 427.5 Deferred policy acquisition costs 60.9 55.6 Deferred income tax asset, net 26.2 43.4 Property and equipment, net 7.0 6.5 Operating lease right-of-use assets 4.0 5.1 Intangible assets, net 13.6 13.6 Goodwill 36.2 36.2 Contingent commission receivable—LPT Agreement — 14.2 Cloud computing arrangements 18.8 28.0 Other assets 35.7 33.6 Total assets $ 3,617.3 $ 3,550.4 Liabilities and stockholders' equity Claims and policy liabilities: Unpaid losses and loss adjustment expenses $ 1,836.5 $ 1,884.5 Unearned premiums 412.5 379.7 Commissions and premium taxes payable 65.4 66.0 Accounts payable and accrued expenses 22.0 26.1 Deferred reinsurance gain—LPT Agreement 93.8 99.2 Operating lease lia

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 was als

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