Claims Ratio % is the percentage of claims costs incurred in relation to the premiums earned.
Employers Holdings's Claims Ratio % for the quarter that ended in Dec. 2023 was 49.50%
, which is lower than
63.20% for the pervious quarter ended in Sep. 2023.
Employers Holdings's Claims Ratio % for the annual that ended in Dec. 2023 was 56.20%
, which is lower than
59.10% for the pervious year ended in Dec. 2022.
The historical rank and industry rank for Employers Holdings's Claims Ratio % or its related term are showing as below:
EIG's Claims Ratio % is not ranked *
in the Insurance industry.
Industry Median: * Ranked among companies with meaningful Claims Ratio % only.
Employers Holdings Claims Ratio % Historical Data
The historical data trend for Employers Holdings's Claims Ratio % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Employers Holdings's Claims Ratio %
For the Insurance - Specialty subindustry, Employers Holdings's Claims Ratio %, along with its competitors' market caps and Claims Ratio % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Employers Holdings (NYSE:EIG) Claims Ratio % Calculation
Claims Ratio % is calculated as
Claims Ratio %
=
Total Claims
/
Total Premiums Earned
*
100%
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Employers Holdings (NYSE:EIG) Claims Ratio % Explanation
Claims Ratio % the percentage of claims costs incurred in relation to the premiums earned during the period. It is the equivalent of gross profit margin for an insurance company.
It's important to note that insurance is the business of managing risks and, to do that well, the insurer needs a thorough understanding of the incurred claims ratio. If the value is higher than expected or above established norms, then further investigation is required to figure out why that is (eg: fraud). If it is lower than expected, it could indicate irrelevant products or difficulties in claiming, possibly affecting customer satisfaction.
Employers Holdings Claims Ratio % Related Terms
Thank you for viewing the detailed overview of Employers Holdings's Claims Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Employers Holdings (Employers Holdings) Business Description
Employers Holdings Inc provides workers' compensation insurance, primarily to small businesses in low- to medium hazard industries. Its customers are employers, and the insurance premiums that those employers pay account for more than 90% of total company revenue. Substantially all of the remaining revenue is generated through investments. The company operates exclusively in the United States, and it generates more than half of its business in California. By industry, the company has the most exposure to restaurants, which account for roughly a fourth of the total premiums the company earns.
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