UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
_____________________
FORM
8-K
_____________________
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date
of report (Date of earliest event reported): January 23, 2009
EMPLOYERS
HOLDINGS, INC.
(Exact
Name of Registrant as Specified in its Charter)
_____________________
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NEVADA
(State
or Other Jurisdiction of
Incorporation)
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001-33245
(Commission
File Number)
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04-3850065
(I.R.S.
Employer Identification No.)
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10375
Professional Circle
Reno,
Nevada
(Address
of Principal Executive Offices)
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89521
(Zip
Code)
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|
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Registrant's
telephone number including area code: (888)
682-6671
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||
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No
Change Since Last Report
(Former
Name or Address, if Changed Since Last
Report)
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_____________________
Check
the appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
o Written communications
pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material
pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
o Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Section
2 – Financial Information
Item
2.05. Costs Associated with Exit or Disposal Activities.
On
January 23, 2009, Employers Holdings, Inc. (the "Company") announced a strategic
restructuring plan to achieve the corporate and operational objectives set forth
as part of its recently completed acquisition and integration of AmCOMP
Incorporated, and in response to current economic conditions.
The
restructuring plan includes a staff reduction of approximately 14 percent of the
Company's total workforce, and planned consolidation of corporate activities
into the Company's Reno, Nevada headquarters. The Company expects to
incur pre-tax restructuring charges of approximately $3 million in the first
quarter 2009, primarily associated with personnel-related termination
costs. As a result of the restructuring plan, the Company expects to
achieve pre-tax cost savings of approximately $12 million in 2009 and annualized
pre-tax cost savings of approximately $20 to $22 million beginning in
2010. These amounts include previously announced anticipated cost
savings of $7.5 million in 2009 and $10 million in 2010.
The
charges and savings that the Company expects to incur in connection with the
restructuring are subject to a number of assumptions, and actual results may
differ materially. The Company may also incur other material charges
not currently contemplated due to events that may occur as a result of, or
associated with, the strategic restructuring plan.
Attached
as Exhibit 99.1 and incorporated herein by reference is the press release issued
by the Company regarding the strategic restructuring plan.
Section
9 – Financial Statements and Exhibits
Item
9.01. Financial Statements and Exhibits.
(d) Exhibits.
99.1 Employers
Holdings, Inc. press release, dated January 23, 2009.
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
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EMPLOYERS
HOLDINGS, INC.
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By:
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/s/
Lenard T. Ormsby
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Name:
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Lenard
T. Ormsby
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Title:
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Executive
Vice President, Chief
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Legal
Officer and General Counsel
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Dated: January
23, 2009
Exhibit
Index
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Exhibit
No.
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Exhibit
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99.1
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Employers
Holdings, Inc. press release, dated January 23,
2009.
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Exhibit
99.1
news release
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January 23,
2009
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For Immediate
Release
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Employers
Holdings, Inc. Announces Integration
Savings
and Restructuring Charges
RENO, Nev. – Jan. 23, 2009 –
Employers Holdings, Inc. (“EMPLOYERS”) (NYSE:EIG), a Nevada-based company
whose subsidiaries are specialty providers of workers’ compensation insurance
focused on small and medium-sized businesses, today announced a strategic
restructuring plan to achieve the corporate and operational objectives set
forth as part of its recently completed acquisition and integration of AmCOMP
Incorporated, and in response to current economic conditions.
The
restructuring plan includes a staff reduction of approximately 14 percent of the company’s total
workforce, and planned consolidation of corporate activities into its Reno,
Nevada headquarters. As a result of these actions, EMPLOYERS expects to achieve
pre-tax cost savings of approximately $12 million in 2009 and annualized pre-tax
cost savings of $20 to $22 million beginning in 2010. These amounts
include previously announced anticipated cost savings of $7.5 million in 2009
and $10 million in 2010. The company expects to incur pre-tax restructuring
charges of approximately $3 million in the first quarter 2009.
“The
strategic restructuring plan announced today will enable EMPLOYERS to maximize
the value of the AmCOMP acquisition, including staffing reductions consistent
with the objectives established when we announced the transaction in
January 2008,” said Douglas D. Dirks, President and Chief Executive Officer of
Employers Holdings, Inc. “Given the unprecedented economic climate we and our
customers face, additional measures are being taken that we believe are
necessary to continue providing competitively priced products and quality
services. These decisions are carefully considered and difficult to make, but
required given the current environment."
EMPLOYERS
geographic offices and underwriting functions will remain in place, as they are
today. A Regional Field Operation organization will be implemented,
with geographic managers maintaining responsibility for day-to-day production,
underwriting and profitability within their territories. All other
corporate and support functions will be managed centrally in Reno and handled
uniformly, companywide.
The job
eliminations are anticipated to be in large part complete by mid-year 2009 and
all of those impacted by the actions will be eligible for severance benefits and
outplacement support.
EMPLOYERS
will provide more information on its cost reduction charges during its 2008
calendar year earnings call currently planned for late February
2009.
About
Employers Holdings, Inc.
Employers
Holdings, Inc. is a holding company with subsidiaries that are specialty
providers of workers' compensation insurance and services focused on select,
small and medium-sized businesses engaged in low to medium hazard industries.
The company's insurance subsidiaries include Employers Insurance Company of
Nevada, Employers Compensation Insurance Company, Employers Preferred Insurance
Company and Employers Assurance Company, all rated A- (Excellent) by A.M. Best
Company. Additional information can be found at: http://www.employers.com.
Cautionary
Statement Regarding Forward-Looking Language:
This
press release includes "forward-looking statements" (within the meaning of the
Private Securities Litigation Reform Act of 1995) reflecting the company's
expectations regarding future events. These statements are subject to certain
risks and uncertainties that may cause actual results to differ from
expectations including, without limitation, factors that affect the future
performance of Employers Holdings, Inc., including the risks detailed in the
Company's Forms 10-Q for the periods ended March 31, June 30, and September 30,
2008 and the Company's 2007 Annual Report on Form 10-K, filed with the SEC.
Employers Holdings, Inc. undertakes no obligation to release publicly the result
of any revisions to these forward-looking statements that may be made to reflect
events or circumstances after the date hereof or to reflect the occurrence of
unanticipated events.
Copyright (C) 2009 EMPLOYERS. All rights
reserved. EMPLOYERS and America's small business insurance specialist
are registered trademarks of Employers Insurance Company of Nevada. Employers Holdings, Inc. is a holding
company with subsidiaries that are specialty providers of workers' compensation
insurance and services focused on select, small and medium-sized businesses
engaged in low to medium hazard industries. The company, through its
subsidiaries, operates in 29 states from 17 office locations. Insurance
subsidiaries include Employers Insurance Company of Nevada, Employers
Compensation Insurance Company, Employers Preferred Insurance Company, and
Employers Assurance
Company, all rated A-
(Excellent) by A.M. Best Company. Additional information can be found
at: http://www.employers.com.
CONTACT:
Media:
Ty Vukelich, Vice President, Corporate Marketing, tvukelich@employers.com,
(775) 327-2677
Analysts:
Vicki Erickson, Vice President, Investor Relations, verickson@employers.com,
(775) 327-2794