Q2 2024 Employers Holdings Inc Earnings Call Transcript
Key Points
- Employers Holdings Inc (EIG) reported its highest quarterly adjusted net income per share in the last 10 years at $1.10.
- Gross written premiums increased by 10% for the quarter, driven by a 9% increase in new business and a 10% increase in renewal business.
- The company achieved a combined ratio of 95.4%, excluding the LPT, which is the lowest since the fourth quarter of 2018.
- Underwriting and general administrative expense ratio decreased to 22%, the lowest since the third quarter of 2018, due to the successful Cerity integration plan.
- Net investment income increased by more than 8% year-over-year, driven by higher yields on fixed maturity investments.
- Losses and loss adjustment expenses increased to $109 million from $91 million a year ago, primarily due to higher net earned premiums and less favorable prior year loss reserve development.
- Commission expenses rose to $27 million from $24 million a year ago, with the commission expense ratio increasing to 14.3% from 13.3%.
- Audit premium recognition was lower, impacting the overall growth in written premiums.
- The company experienced a decrease in audit pickup, which was $4.9 million this quarter compared to $7.7 million in the second quarter of 2023.
- The net income was negatively impacted by $5 million of net after-tax investment losses from fixed maturity holdings.
Good day, and thank you for standing by. Welcome to the 2024 second quarter employers holdings, Inc. Earnings Call. (Operator Instructions) Please be advised that today's conference is being recorded. I'd now like to hand the conference over to your first speaker today, Lori Brown, General Counsel. Please go ahead.
Thank you, Marvin. Good morning, and welcome, everyone, to the second quarter 2024 Earnings Call for Employers. Today's call is being recorded and webcast from the Investors section of our website, where a replay will be available following the call.
Presenting today is Kathy Antonello, our Chief Executive Officer; and Mike Paquette, our Chief Financial Officer. Statements made during this conference call that are not based on historical facts are considered forward-looking statements. These statements are made in reliance on the safe harbor provision of the Private Securities Litigation Reform Act of 1995.
Although we
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