On October 25, 2023, Employers Holdings Inc (EIG, Financial) released its financial results for the third quarter ended September 30, 2023. The company reported a net income of $14.0 million or $0.54 per share, compared to $19.1 million or $0.70 per share in the same quarter of the previous year. The adjusted net income was $17.7 million or $0.68 per share, marking a 21% per share increase from $15.5 million or $0.56 per share in Q3 2022.
Financial Performance
The company's gross premiums written increased by 4% to $196.2 million, while net premiums earned increased by 3% to $184.6 million. The net investment income also saw a 9% increase to $25.9 million. However, the company reported net investment losses of $7.1 million, compared to net gains of $1.9 million in Q3 2022. The number of ending policies in-force increased by 5% to 126,120.
Management Commentary
“Our third quarter results are a testament to the transformational changes we are making at Employers. Wage increases, a continued strong labor market for our target businesses and our disciplined appetite expansion each contributed to higher new and renewal premiums. As a result, we ended the quarter with more than 126,000 policies in-force, a record level representing increases in each of the last thirteen consecutive quarters." - Chief Executive Officer Katherine Antonello
Financial Highlights by Segment
The Employers segment reported net income before income taxes of $20.8 million, compared to $26.1 million in Q3 2022. The Cerity segment reported a net loss before income taxes of $1.9 million, compared to a loss of $2.4 million in the same period last year. Corporate and Other activities reported a net loss before income taxes of $1.5 million, compared to a net income of $0.1 million in Q3 2022.
Dividend Declaration and Stock Repurchases
The Board of Directors declared a regular quarterly dividend of $0.28 per share, payable on November 22, 2023, to stockholders of record as of November 8, 2023. During the third quarter of 2023, the company repurchased 367,209 shares of its common stock at an average price of $38.95 per share.
Future Outlook
Employers Holdings Inc (EIG, Financial) remains confident in its ability to further reduce its total underwriting expenses as a percentage of its earned premiums in 2024. The company's strong balance sheet, abundant underwriting capital, and confidence in future operations reflect its ongoing efforts to actively return capital to its stockholders.
Explore the complete 8-K earnings release (here) from Employers Holdings Inc for further details.
