Employers Holdings, Inc. Reports Fourth Quarter and Full Year 2011 Earnings and Declares First Quarter 2012 Dividend
Key Highlights
(Q 4, 2011 compared to Q 4, 2010 except where noted)
-
Net written premiums of
$101 million ; up 29%-
Lowest hazard group A (as defined by
NCCI ) up 4 points as a percent of in-force premiums and hazard group B up 1 point
-
Lowest hazard group A (as defined by
-
Net earned premiums of
$100 million ; up 20% -
Revenues of
$138 million ; up 22% -
Fourth quarter results include a realized gain of
$18 million -
Book value (including deferred LPT gain) per share of
$25.06 ; up 13%- Repurchased 3.25 million common shares in Q 4 2011
Net income includes amortization of the deferred reinsurance gain
related to the Loss Portfolio Transfer (“LPT”) Agreement. Consolidated
net income before the impact of the LPT deferred reinsurance gain (the
Company’s non-GAAP measure described below) was
Net income for the full year of 2011 was
In the fourth quarter of 2011 relative to the third quarter of 2011 and,
for the first time in recent years, the change in net rate was a
positive 1% with improvements in a number of states including
The fourth quarter 2011 combined ratio was 111.5% (115.7% before the impact of the LPT deferred reinsurance gain), compared with 107.6% (113.3% before the impact of the LPT deferred reinsurance gain) for the fourth quarter of 2010, an increase of 3.9 percentage points in the GAAP combined ratio. For the full year of 2011, the combined ratio was 114.2% (119.0% before the impact of the LPT deferred reinsurance gain), an increase of 7.4 percentage points from 106.8% (112.4% before the impact of the LPT deferred reinsurance gain) for the same period in 2010. Current accident year combined ratios were stable from 2010 to 2011.
President and Chief Executive Officer
Dirks continued: “In the fourth quarter, we repositioned the investment
portfolio to achieve a number of strategic objectives. The majority of
portfolio activity in the quarter was driven by changes in asset
allocation which reduced tax-exempt municipal exposure, shortened
duration, and added high dividend equities. Realized gains of
approximately
“The loss provision rate that we raised in the first quarter of 2011,
primarily in response to losses and loss adjustment expenses in
Commenting on the balance sheet, Dirks added: “Book value per share
increased 13% since
Looking ahead, Dirks concluded: “We expect increases in non-loss
operating expenses in 2012 resulting from an accounting change in
deferred acquisition costs (DAC) and growth in premiums. We currently
estimate that our underwriting and other operating expenses will
increase approximately
Fourth Quarter 2011 Comparison to Fourth Quarter 2010
Net premiums written increased 28.7% to
Net premiums earned were
Net investment income was
Realized gains on investments increased to
Losses and loss adjustment expenses (LAE) were
Commission expense was
Dividends to policyholders were
Underwriting and other operating expenses were
Interest expense was
Income tax expense increased to
Full Year 2011 Comparison to Full Year 2010
Net premiums earned of
Net investment income of
Losses and LAE increased to
Commission expense in 2011 increased to
Dividends to policyholders were
Underwriting and other operating expenses of
Interest expense of
The income tax benefit in 2011 was
Debt, Capital Structure
Total outstanding debt at
Investments
Total invested assets were
The Company is providing a list of portfolio securities by CUSIP in the Calendar of Events, Fourth Quarter “Investors” section of its web site at www.employers.com.
Common Share Repurchases and Dividends
In November of 2011, the Board of Directors authorized a
The Board of Directors declared a first quarter 2012 dividend of
Conference Call and Web Cast; Form 10-K
The Company will host a conference call on
EHI expects to file its Form 10-K for the fiscal year ended
Discussion of Non-GAAP Financial Measures
This earnings release includes non-GAAP financial measures used to analyze the Company’s operating performance for the periods presented.
These non-GAAP financial measures exclude impacts related to the LPT Agreement deferred reinsurance gain. The 1999 LPT Agreement was a non-recurring transaction that does not result in ongoing cash benefits and, consequently, the Company believes these non-GAAP measures are useful in providing stockholders and management a meaningful understanding of the Company’s operating performance. In addition, these measures, as defined, are helpful to management in identifying trends in the Company’s performance because the items excluded have limited significance in current and ongoing operations.
The Company strongly urges stockholders and other interested persons not to rely on any single financial measure to evaluate its business. The non-GAAP measures are not a substitute for GAAP measures and investors should be careful when comparing the Company’s non-GAAP financial measures to similarly titled measures used by other companies.
Net Income before impact of the deferred reinsurance gain – LPT Agreement. Net income less (i) amortization of deferred reinsurance gain—LPT Agreement and (ii) adjustments to LPT Agreement ceded reserves.
Deferred reinsurance gain—LPT Agreement. This reflects the unamortized gain from the LPT Agreement. Under GAAP, this gain is deferred and amortized using the recovery method, whereby the amortization is determined by the proportion of actual reinsurance recoveries to total estimated recoveries, and the amortization is reflected in losses and LAE.
Gross Premiums Written. Gross premiums written is the sum of both direct premiums written and assumed premiums written before the effect of ceded reinsurance. Direct premiums written represents the premiums on all policies the Company’s insurance subsidiaries have issued during the year. Assumed premiums written represents the premiums that the insurance subsidiaries have received from an authorized state-mandated pool.
Net Premiums Written. Net premiums written is the sum of direct premiums written and assumed premiums written less ceded premiums written. Ceded premiums written is the portion of direct premiums written that are ceded to reinsurers under reinsurance contracts. The Company uses net premiums written, primarily in relation to gross premiums written, to measure the amount of business retained after cession to reinsurers.
Losses and LAE before impact of the deferred reinsurance gain – LPT Agreement. Losses and LAE less (i) amortization of deferred reinsurance gain—LPT Agreement and (ii) adjustments to LPT Agreement ceded reserves.
Losses and LAE Ratio. The losses and LAE ratio is a measure of underwriting profitability. Expressed as a percentage, it is the ratio of losses and LAE to net premiums earned.
Commission Expense Ratio. Commission expense ratio is the ratio (expressed as a percentage) of commission expense to net premiums earned.
Underwriting and Other Operating Expense Ratio. The underwriting and other operating expense ratio is the ratio (expressed as a percentage) of underwriting and other operating expense to net premiums earned.
Combined Ratio. The combined ratio represents a summary percentage of claims and expenses to net premiums earned. The combined ratio is the sum of the losses and LAE ratio, the commission expense ratio, the policyholder dividends ratio and the underwriting and other operating expense ratio.
Combined Ratio before impacts of the deferred reinsurance gain – LPT Agreement. Combined ratio before impacts of LPT is the GAAP combined ratio before (i) amortization of deferred reinsurance gain—LPT Agreement and (ii) adjustments to LPT Agreement ceded reserves.
Equity including deferred reinsurance gain—LPT Agreement. Equity including deferred reinsurance gain—LPT is total equity plus the deferred reinsurance gain—LPT Agreement.
Book value per share. Equity including deferred reinsurance gain—LPT Agreement divided by number of shares outstanding.
Net rate. Net rate, defined as total premium in-force divided by total insured payroll exposure, is a function of a variety of factors, including rate changes, underwriting risk profiles and pricing, and changes in business mix related to economic and competitive pressures.
Forward-Looking Statements
In this press release, the Company and its management discuss and make statements based on currently available information regarding their intentions, beliefs, current expectations, and projections regarding the Company’s future operations and performance. Certain of these statements may constitute "forward-looking" statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and are often identified by words such as "may," "will," "could," "would," "should," "expect," "plan," "anticipate," "target," "project," "intend," "believe," "estimate," "predict," "potential," "pro forma," "seek," "likely," or "continue," or other comparable terminology and their negatives.
EHI and its management caution investors that such forward-looking
statements are not guarantees of future performance. Risks and
uncertainties are inherent in EHI’s future performance. Factors that
could cause the Company’s actual results to differ materially from those
indicated by such forward-looking statements include, among other
things, those discussed or identified from time to time in EHI’s public
filings with the
All forward-looking statements made in this press release reflect EHI’s
current views with respect to future events, business transactions and
business performance and are made pursuant to the safe harbor provisions
of the Private Securities Litigation Reform Act of 1995. Such statements
involve risks and uncertainties, which may cause actual results to
differ materially from those set forth in these statements. The business
and results of EHI could be affected by, among other things,
competition, pricing and policy term trends, the levels of new and
renewal business achieved, market acceptance, changes in demand, the
frequency and severity of catastrophic events, actual loss experience
including increased loss costs in
The
Copyright © 2012 EMPLOYERS. All rights reserved. EMPLOYERS® and
America’s small business insurance specialist. ® are
registered trademarks of
|
Employers Holdings, Inc. Consolidated Statements of Comprehensive Income (Loss) (in thousands) |
|||||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||
| December 31, | December 31, | ||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | ||||||||||||||
| (unaudited) | |||||||||||||||||
| Revenues | |||||||||||||||||
| Gross premiums written | $ | 102,941 | $ | 80,214 | $ | 418,512 | $ | 322,277 | |||||||||
| Net premiums written | $ | 100,789 | $ | 78,286 | $ | 410,038 | $ | 313,098 | |||||||||
| Net premiums earned | $ | 100,268 | $ | 83,565 | $ | 363,424 | $ | 321,786 | |||||||||
| Net investment income | 19,734 | 20,440 | 80,117 | 83,032 | |||||||||||||
| Realized gains on investments, net | 18,178 | 9,237 | 20,161 | 10,137 | |||||||||||||
| Other income | 247 | 49 | 452 | 649 | |||||||||||||
| Total revenues | 138,427 | 113,291 | 464,154 | 415,604 | |||||||||||||
| Expenses | |||||||||||||||||
| Losses and loss adjustment expenses | 73,654 | 56,682 | 264,663 | 194,779 | |||||||||||||
| Commission expense | 13,134 | 9,416 | 45,502 | 38,468 | |||||||||||||
| Dividends to policyholders | 657 | 930 | 3,423 | 4,316 | |||||||||||||
| Underwriting and other operating expense | 24,355 | 22,894 | 101,567 | 106,026 | |||||||||||||
| Interest expense | 911 | 861 | 3,642 | 5,693 | |||||||||||||
| Total expenses | 112,711 | 90,783 | 418,797 | 349,282 | |||||||||||||
| Net income before income taxes | 25,716 | 22,508 | 45,357 | 66,322 | |||||||||||||
| Income tax (benefit) expense | 6,332 | 2,359 | (2,406 | ) | 3,523 | ||||||||||||
| Net income | $ | 19,384 | $ | 20,149 | $ | 47,763 | $ | 62,799 | |||||||||
| Comprehensive income (loss) | |||||||||||||||||
|
Unrealized gains (losses) during the period (net of taxes of $24,602 and $4,292 for the periods ended December 31, 2011 and 2010, respectively)
|
$ | 12,734 | $ | (37,111 | ) | $ | 45,691 | $ | 6,910 | ||||||||
|
Less: reclassification adjustment for realized gains in net income (net of taxes of $7,056 and $3,548 for the periods ended December 31, 2011 and 2010, respectively)
|
11,816 | 6,004 | 13,105 | 6,589 | |||||||||||||
| Other comprehensive income (loss), net of tax | 918 | (43,115 | ) | 32,586 | 321 | ||||||||||||
| Total comprehensive income (loss) | $ | 20,302 | $ | (22,966 | ) | $ | 80,349 | $ | 63,120 | ||||||||
|
Reconciliation of net income to net income before impact of LPT Agreement |
|||||||||||||||||
| Net income | $ | 19,384 | $ | 20,149 | $ | 47,763 | $ | 62,799 | |||||||||
| Less: Impact of LPT Agreement | |||||||||||||||||
|
Amortization of deferred reinsurance gain – LPT Agreement |
4,163 |
4,719 |
17,147 |
18,233 |
|||||||||||||
| Net income before LPT Agreement | $ | 15,221 | $ | 15,430 | $ | 30,616 | $ | 44,566 | |||||||||
|
Employers Holdings, Inc Consolidated Statements of Comprehensive Income (in thousands, except share and per share data) |
|||||||||||||||||||
|
Three Months Ended December 31, |
Twelve Months Ended December 31, |
||||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | ||||||||||||||||
| (unaudited) | |||||||||||||||||||
| Net income | $ | 19,384 | $ | 20,149 | $ | 47,763 |
|
$ | 62,799 | ||||||||||
| Earnings per common share | |||||||||||||||||||
| Basic | $ | 0.56 | $ | 0.51 | $ | 1.28 | $ | 1.52 | |||||||||||
| Diluted | $ | 0.56 | $ | 0.51 | $ | 1.28 | $ | 1.51 | |||||||||||
| Weighted average shares outstanding | |||||||||||||||||||
| Basic | 34,388,151 | 39,610,351 | 37,284,425 | 41,390,984 | |||||||||||||||
| Diluted | 34,522,369 | 39,745,471 | 37,424,065 | 41,465,242 | |||||||||||||||
|
Reconciliation of EPS to EPS before impact of the LPT Agreement |
|||||||||||||||||||
|
Three Months Ended
December 31, |
Twelve Months Ended
December 31, |
||||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | ||||||||||||||||
| (unaudited) | |||||||||||||||||||
| Earnings per common share | |||||||||||||||||||
| Basic | $ | 0.56 | $ | 0.51 |
|
$ | 1.28 | $ | 1.52 | ||||||||||
| Diluted | $ | 0.56 | $ | 0.51 | $ | 1.28 | $ | 1.51 | |||||||||||
|
Earnings per common share
attributable to the LPT Agreement |
|||||||||||||||||||
| Basic | $ | 0.12 | $ | 0.12 | $ | 0.46 | $ | 0.44 | |||||||||||
| Diluted | $ | 0.12 | $ | 0.12 | $ | 0.46 | $ | 0.44 | |||||||||||
|
Earnings per common share
before the LPT Agreement |
|||||||||||||||||||
| Basic | $ | 0.44 | $ | 0.39 | $ | 0.82 | $ | 1.08 | |||||||||||
| Diluted | $ | 0.44 | $ | 0.39 | $ | 0.82 | $ | 1.07 | |||||||||||
|
Employers Holdings, Inc. Consolidated Balance Sheets (in thousands, except share data) |
||||||||
|
As of
December 31, 2011 |
As of
December 31, 2010 |
|||||||
| Assets | ||||||||
| Available for sale: | ||||||||
|
Fixed maturity securities at fair value (amortized cost $1,706,216 at |
||||||||
|
December 31, 2011 and $1,901,778 at December 31, 2010) |
$ |
1,852,699 |
$ | 2,000,364 | ||||
|
Equity securities at fair value (amortized cost $64,962 at |
||||||||
|
December 31, 2011 and $49,281 at December 31, 2010) |
98,046 |
|
80,130 | |||||
| Total investments | 1,950,745 | 2,080,494 | ||||||
|
|
||||||||
| Cash and cash equivalents | 252,300 | 119,825 | ||||||
| Restricted cash and cash equivalents | 6,299 | 16,949 | ||||||
| Accrued investment income | 19,537 | 23,022 | ||||||
|
Premiums receivable, less bad debt allowance of $5,546 at December
31,
2011 and $7,603 at December 31, 2010 |
160,443 |
109,987 | ||||||
| Reinsurance recoverable for: | ||||||||
| Paid losses | 10,729 | 14,415 | ||||||
| Unpaid losses | 940,840 | 956,043 | ||||||
| Funds held by or deposited with reinsureds | 1,102 | 3,701 | ||||||
| Deferred policy acquisition costs | 38,470 | 32,239 | ||||||
| Federal income taxes recoverable | 2,323 | 4,048 | ||||||
| Deferred income taxes, net | 22,108 | 38,078 | ||||||
| Property and equipment, net | 11,360 | 11,712 | ||||||
| Intangible assets, net | 11,728 | 13,279 | ||||||
| Goodwill | 36,192 | 36,192 | ||||||
| Other assets | 18,812 | 20,136 | ||||||
| Total assets | $ | 3,482,988 | $ | 3,480,120 | ||||
| Liabilities and stockholders’ equity | ||||||||
| Claims and policy liabilities: | ||||||||
| Unpaid losses and loss adjustment expenses | $ | 2,272,363 | $ | 2,279,729 | ||||
| Unearned premiums | 194,933 | 149,485 | ||||||
| Policyholders’ dividends accrued | 3,838 | 5,218 | ||||||
| Total claims and policy liabilities | 2,471,134 | 2,434,432 | ||||||
|
|
||||||||
| Commissions and premium taxes payable | 28,905 | 17,313 | ||||||
| Accounts payable and accrued expenses | 18,241 | 18,601 | ||||||
| Deferred reinsurance gain—LPT Agreement | 353,194 | 370,341 | ||||||
| Notes payable | 122,000 | 132,000 | ||||||
| Other liabilities | 15,878 | 17,317 | ||||||
| Total liabilities | $ | 3,009,352 | $ | 2,990,004 | ||||
|
Employers Holdings, Inc. Consolidated Balance Sheets (in thousands, except share data) (continued) |
|||||||||||||
|
As of
December 31, 2011 |
As of
December 31, 2010 |
||||||||||||
| Commitments and contingencies | |||||||||||||
| Stockholders’ equity: | |||||||||||||
| Common stock, $0.01 par value; 150,000,000 shares authorized; 53,948,442 and 53,779,118 shares issued and 32,996,809 and 38,965,126 shares outstanding at December 31, 2011, and December 31, 2010, respectively |
$ |
540 |
$ |
538 | |||||||||
|
Preferred stock, $0.01 par value; 25,000,000 shares authorized; none issued
|
— | — | |||||||||||
| Additional paid-in capital | 318,989 | 314,212 | |||||||||||
| Retained earnings | 358,143 |
|
319,341 | ||||||||||
| Accumulated other comprehensive income, net | 116,719 | 84,133 | |||||||||||
|
Treasury stock, at cost (20,951,633 shares at December 31, 2011 and
14,813,992 shares at December 31, 2010)
shares at December 31, 2010) |
(320,755 |
) |
(228,108 |
) |
|||||||||
| Total stockholders’ equity | 473,636 | 490,116 | |||||||||||
| Total liabilities and stockholders’ equity | $ | 3,482,988 |
|
$ |
3,480,120 |
||||||||
| Book value per share | |||||||||||||
| Equity including deferred reinsurance gain – LPT | |||||||||||||
| Total stockholders’ equity | $ | 473,636 | $ | 490,116 | |||||||||
| Deferred reinsurance gain – LPT Agreement | 353,194 | 370,341 | |||||||||||
| Total equity including deferred reinsurance gain–LPT Agreement (A) | $ | 826,830 | $ | 860,457 | |||||||||
| Shares outstanding (B) | 32,996,809 | 38,965,126 | |||||||||||
| Book value per share (A * 1000) / B | $ | 25.06 | $ | 22.08 | |||||||||
|
Employers Holdings, Inc. Consolidated Statements of Cash Flows (in thousands) |
||||||||
|
Twelve Months Ended
December 31, |
||||||||
| 2011 | 2010 | |||||||
| Operating activities | ||||||||
| Net income | $ | 47,763 | $ | 62,799 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 6,388 | 7,098 | ||||||
| Stock-based compensation | 3,742 | 4,053 | ||||||
| Amortization of premium on investments, net | 7,242 | 6,105 | ||||||
| Allowance for doubtful accounts | (2,057 | ) | (3,611 | ) | ||||
| Deferred income tax (benefit) expense | (1,576 | ) | 4,680 | |||||
| Realized gains on investments, net | (20,161 | ) | (10,137 | ) | ||||
| Realized (gains) losses on retirement of assets | (155 | ) | 420 | |||||
| Change in operating assets and liabilities: | ||||||||
| Accrued investment income | 3,485 | 33 | ||||||
| Premiums receivable | (48,399 | ) | 12,265 | |||||
| Reinsurance recoverable on paid and unpaid losses | 18,889 | 95,720 | ||||||
| Funds held by or deposited with reinsureds | 2,599 | 78,638 | ||||||
| Federal income taxes recoverable | 1,725 | 44 | ||||||
| Unpaid losses and loss adjustment expenses | (7,366 | ) | (145,929 | ) | ||||
| Unearned premiums | 45,448 | (9,092 | ) | |||||
| Accounts payable, accrued expenses and other liabilities | (2,471 | ) | (10,455 | ) | ||||
| Deferred reinsurance gain–LPT Agreement | (17,147 | ) | (18,233 | ) | ||||
| Restricted cash and cash equivalents | — | (12,210 | ) | |||||
| Other | 5,266 | (5,207 | ) | |||||
| Net cash provided by operating activities | 43,215 | 56,981 | ||||||
| Investing activities | ||||||||
| Purchase of fixed maturity securities | (236,633 | ) | (273,833 | ) | ||||
| Purchase of equity securities | (21,310 | ) | (17,673 | ) | ||||
| Proceeds from sale of fixed maturity securities | 317,365 | 102,659 | ||||||
| Proceeds from sale of equity securities | 6,476 | 17,753 | ||||||
| Proceeds from maturities and redemptions of investments | 126,902 | 123,672 | ||||||
| Proceeds from sale of fixed assets | 396 | — | ||||||
| Cash paid for acquisition, net of cash and cash equivalents acquired | — | — | ||||||
| Capital expenditures and other | (4,687 | ) | (1,905 | ) | ||||
| Restricted cash and cash equivalents provided by (used in) investing activities | 10,650 | (2,000 | ) | |||||
| Net cash provided by (used in) investing activities | 199,159 | (51,327 | ) | |||||
| Financing activities | ||||||||
| Acquisition of treasury stock | (91,975 | ) | (63,592 | ) | ||||
| Cash transactions related to stock-based compensation | 1,019 | (1,135 | ) | |||||
| Dividends paid to stockholders | (8,943 | ) | (9,935 | ) | ||||
| Payments on notes payable | (10,000 | ) | — | |||||
| Net cash used in financing activities | (109,899 | ) | (74,662 | ) | ||||
| Net increase (decrease) in cash and cash equivalents | 132,475 | (69,008 | ) | |||||
| Cash and cash equivalents at the beginning of the period | 119,825 | 188,833 | ||||||
| Cash and cash equivalents at the end of the period | $ | 252,300 | $ | 119,825 | ||||
|
Employers Holdings, Inc. Calculation of Combined Ratio before the Impact of the LPT Agreement (in thousands, except for percentages) |
||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| (unaudited) | ||||||||||||||||
| Net premiums earned | $ | 100,268 | $ | 83,565 | $ | 363,424 | $ | 321,786 | ||||||||
| Losses and loss adjustment expenses | 73,654 | 56,682 | 264,663 | 194,779 | ||||||||||||
| Loss & LAE ratio | 73.5 | % | 67.8 | % | 72.8 | % | 60.5 | % | ||||||||
| Amortization of deferred reinsurance gain – LPT | $ | 4,163 | $ | 4,719 | $ | 17,147 | $ | 18,233 | ||||||||
| Impact of LPT | 4.2 | % | 5.6 | % | 4.7 | % | 5.7 | % | ||||||||
| Loss & LAE before impact of LPT | $ | 77,817 | $ | 61,401 | $ | 281,810 | $ | 213,012 | ||||||||
| Loss & LAE ratio before impact of LPT | 77.6 | % | 73.5 | % | 77.5 | % | 66.2 | % | ||||||||
| Commission expense | $ | 13,134 | $ | 9,416 | $ | 45,502 | $ | 38,468 | ||||||||
| Commission expense ratio | 13.1 | % | 11.3 | % | 12.5 | % | 12.0 | % | ||||||||
|
Dividends to policyholders |
$ |
657 |
$ |
930 |
$ |
3,423 |
$ |
4,316 |
||||||||
| Policyholder dividend ratio | 0.7 | % | 1.1 | % | 0.9 | % | 1.3 | % | ||||||||
| Underwriting & other operating expenses | $ | 24,355 | $ | 22,894 | $ | 101,567 | $ | 106,026 | ||||||||
| Underwriting & other operating expenses ratio | 24.3 | % | 27.4 | % | 28.0 | % | 33.0 | % | ||||||||
| Total expenses | $ | 111,800 | $ | 89,922 | $ | 415,155 | $ | 343,589 | ||||||||
| Combined ratio | 111.5 | % | 107.6 | % | 114.2 | % | 106.8 | % | ||||||||
| Total expense before impact of the LPT | $ | 115,963 | $ | 94,641 | $ | 432,302 | $ | 361,822 | ||||||||
| Combined ratio before the impact of the LPT | 115.7 | % | 113.3 | % | 119.0 | % | 112.4 | % | ||||||||
| Reconciliations to Current Accident Period Combined Ratio | ||||||||||||||||
| Losses & LAE before impact of LPT | $ | 77,817 | $ | 61,401 | $ | 281,810 | $ | 213,012 | ||||||||
|
Plus: Favorable (unfavorable) prior period reserve
development |
(496) | 0 | (1,127) | 14,130 | ||||||||||||
| Accident period losses & LAE before impact of LPT |
$ |
77,321 |
$ |
61,401 |
$ |
280,683 |
$ |
227,142 | ||||||||
| Losses & LAE ratio before impact of LPT | 77.6 | % | 73.5 | % | 77.5 | % | 66.2 | % | ||||||||
|
Plus: Favorable (unfavorable) prior period reserve
development ratio |
(0.5 | ) |
|
0 | (0.3) | 4.4 | ||||||||||
| Accident period losses & LAE ratio before impact of LPT | 77.1 | % | 73.5 | % | 77.2 | % | 70.6 | % | ||||||||
| Combined ratio before impact of the LPT | 115.7 | % | 113.3 | % | 119.0 | % | 112.4 | % | ||||||||
|
Plus: Favorable (unfavorable) prior period reserve
development ratio |
(0.5 | ) | 0 | (0.3) | 4.4 | |||||||||||
| Accident period combined ratio before impact of LPT | 115.2 | % | 113.3 | % | 118.7 | % | 116.8 | % | ||||||||
Source:
Employers Holdings, Inc.
Media:
Ty Vukelich, 775-327-2677
tvukelich@employers.com
or
Analysts:
Vicki
Erickson Mills, 775-327-2794
vericksonmills@employers.com
