Employers Holdings records higher net income
Employers Holdings records higher net income | Insurance Business America
Workers Comp
Employers Holdings records higher net income
Increased dividend also announced
Employers Holdings, whose subsidiaries provide workers’ compensation insurance, has released its financial results for the first quarter of 2024.
Metric
Q1 2024
Change from Q1 2023
Net income
$28.3 million
Up 20%
Adjusted net income
$17.2 million
Up 4%
Gross written premium
$210.9 million
Up 8%
Net premiums earned
$184.9 million
Up 7%
Losses and loss adjustment expenses
$116.5 million
Up 8%
Commission expenses
$25.5 million
Up 9%
Underwriting and general and administrative expenses
$45.8 million
Up 3%
Net investment income
$26.8 million
Down 3%
Commenting on the firm’s quarterly performance, chief executive Katherine Antonello said: “Higher new and renewal premiums, strong and steady net investment income, and moderate net investment gains drove an 8% increase in revenue year-over-year. We also ended the quarter with yet another record number of policies in-force, which were up 4% year-over-year.”
The CEO also noted that, as was the case in Q1 last year, Employers Holdings did not recognize any prior year loss reserve development on its voluntary business because a full actuarial study was not performed and the amount of indicated net prior year loss reserve development was consistent with expectations. A full reserve study will be routinely performed at mid-year.
“Our commission expense ratio was 13.8%, up slightly from 13.5% a year ago,” Antonello added. “The increase related to higher new business writings, which are typically subject to higher initial commission rates, and an increase in anticipated 2024 agency incentives.
“Our underwriting and general and administrative expense ratio was 24.8%, a nice improvement from 25.7% a year ago. The decrease was primarily due to savings associated with the fourth quarter 2023 full integration of Cerity’s operations into those of Employers, partially offset by increases in payroll and benefit costs and bad debt expenses.
“In addition to the meaningful decrease in our expense ratio experienced this quarter, I am highly confident that we will continue to see further reductions for the balance of the year.”
The Employers Holdings board, meanwhile, declared a regular quarterly dividend of $0.30 per share.
Referring to the increased (7%) dividend, Antonello highlighted: “This action reflects our strong balance sheet, abundant underwriting capital, and our confidence in the company’s future operations.”
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