- Earnings call transcript Q3 2022

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Operator

Good day, ladies and gentlemen. Thank you for standing by. And welcome to the Q3 2022 Employers Holdings, Inc., Earnings Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. not Lori hand Brown. would to call I host, your Instructions.] like the to over [Operator

You begin. may

Lori Brown

Thank you, Today's call will the Kevin. Officer; and section available the recorded third following Good webcast statements. be made of morning Mike Paquette, are Financial historical Chief on and Statements of XXXX and conference made These Presenting replay in call forward-looking Executive our Kathy welcome during reliance our Safe Officer. facts earnings the this Private the website, Antonello, XXXX. for will on Reform Chief of the Securities call. that call are Employers. considered Act from call while based being quarter is not the our Investor everyone are be provision to on Litigation Harbor statements today

of uses current website of at information presentation, section are SEC's filings, Regulation as in calls for the will our financial attachment responses investors updated webcast. also monitor disclosures to company's a in in the our be press time call as to we in press website the and earnings may be remarks metrics. reflect results forward-looking All other during our complying only metrics supplement our included call statements expectations are investor different included actual subsequent earnings remarks releases, Exchange are company's of our materials disclosure the and disclosing following materially on in of these company we the The material the not set in the obligation public to questions, from under of release, to will an means developments. and and the including non-public Investors and the Although, risks in that with our addition cause the be portion any website. to conference financial available made non-GAAP non-GAAP use section Securities and uncertainties website. filings expectations, results its with risks or our our company's SEC should believe could expressed Investors Commission. In and release FD. the to reasonable, our Accordingly, GAAP our Reconciliations press forth Such

will I to Now, Kathy. call turn the over

Katherine Antonello

for momentum our Thank thank Good I I'm you, and for our usual workers' and current us will agenda, third quarter dedicated compensation Mike discuss XXXX, as talented Lori. have the the and everyone will Employers. third with we of follow a the morning results the up financial Q&A. market very it our incredibly pleased to and and team observations you outline for quarter of today. the of at open positive then we're results here experiencing joining result

to experienced significant well sharply business our while fixed continue achieved in Employers our we written new business robust record policies new attributable segment, quarter we XXXX. premium resulted number consecutive within renewal quarter segment, the our a policies premium strong within of The and eighth Cerity writings written growth to recognition and We to with increasing this enforced. premiums from written prudently which is earned of expanding have expectation execute results expenses increase plan, post-COVID on premium underwriting and and by managing appetite containing our capital. extremely year-over-year our The for our exceeded plan and our audit

premium and to Continued tailwinds recognition. strong wage the audit contributed increases with low unemployment along

our as respectively loss segments, XX% at ratio XX.X% and We we our we this not premiums As the months recorded XX% reserve are throughout factors, a adjust third LAE versus accident on growth our period first quarter Inventory loss was voluntary result did consistent largely with the the and expectations. XXXX. our LAE with our of and during year and XX%, business ago. year consistent review current Employers reserves of those for Cerity and up quarter maintained both to these nine losses written

perform will year-end We routinely a reserve study. full evaluate in more at our prior reserves detail we when year

of fourth this Our underwriting spend it's ratio the quarter XXXX. is expense of since and quarter largest XX.X% consolidated the

our further level by collaboration develop Thimble. While provide our and return closing and we diligently other segment us and continue end will scale will we're by my growth. XXXX attracting to a of $XX to with Because Cerity's QuickBooks pleased an committed represents increase and strategic writing our which quarters to initiatives our and enforced our our results. loss million we over year million, to of over technology for to was of underwriting classes, expenses, our model Cerity. recently, we our us committed continue classes. since our untapped those market. the thoughtfully with these long Employers more Cerity to And not of through we that, $X.X support remain a a which are both customer target early at discipline our September last wrote discussion experienced compensation, expects I'll high four our improve of further we remain was topline classes that we strategy to we of Employers premium July growth and been results. in execute of workforce then digitalization additional recent to both nicely similar in and both are effectively It's Between of are at to Mike? underwriting Intuit's Mike experience supported expansion investing The which financial appetite XXX% will began business complementary maintaining provide target remarks. business. will and of an With to channels development manage expand the tailed business XXXX, as its workers ratios quarter position opportunities in our additional pattern to more and and growth contributing

Michael Paquette

increase a to versus year due and versus $XXX of million premiums. audit higher were earned $XXX final million of an were an $XXX premiums was million XX%. primarily ago, written new and year Gross strong a renewable a XX%. Kathy. million increase you, premiums $XXX a Thank The ago, Net premiums increase

we losses not a also loss and year million our $XXX as was higher premiums of agency loss any XXXX due earned million increase quarter to due increase semi-annual ago. prior was mentioned, premiums, Kathy recognize we did were reserves on reserve our The versus during primarily detail million year-end we a ago. a perform year accruals. reserve will at study. The year business were full expenses when Commission evaluate versus prior primarily incentive adjustment higher $XX expenses more million the Our development in third XXXX. And $XX to and voluntary higher earned loss $XX our year

XX% were on income premium and Employer segment its over as ago. expenses $XX July can million underwriting each within to our a our of had bad during a of of Employer debt Underwriting income attributed taxes, provision those current $X Our with a that time resulting for were periods. our perspective, commission with and increase assessments went is ago a underwriting its segment ratio each be XX% earned and of segment X. versus From a result into which commissions to year year of decrease That renewal reporting combined consistent calendar premium. our expected general certain effect year reduction ratio million, in million administrative $XX vary

loss have an of of Our consistent a Cerity million for its segment year with $X underwriting quarter, underwriting the ago. loss

mentioned, past we writings, As several Cerity's which Kathy about increased over previously enthusiastic quarters. remain the very premium have significantly

nearly our and leveraged strategy. advances to of $XX advances Loan income to an used investment the Home for obligation investment Turning XX due from insurance received of invested million amount Bank securities. from loan balance, September year to The high-quality asset our million this yields XX%. a a that strategy, Pursuant proceeds Home to million $XX Loan those was bond from increase of our of purchase collateralized $XXX through net Bank a an higher were resulting investments, the equivalent have and quarter was Federal subsidiaries versus Federal increase the higher ago, year

securities and a X% of have Our total result portfolio. our fixed an our a We quality average just a equity equity X.X Plus. of now mid-August as proactively of credit of duration investment in securities maturities sold $XXX represent million currently A and

sharply now in is ending currently is which average yield weighted rate at X.X%, of X.X% up the year-end money X%. book from is excess Our our new and XXXX,

quarter, turn remaining common stock at stands stockholders per fixed we million and share Our now, price from the value million at $XX And $X.X million. to repurchased our share Kathy. And share impacted and equity book the this repurchase reach of an per by call back losses quarter of during maturity finally, securities. unrealized of $XX.XX unfavorably $XX our authority I'll our after-tax average

Katherine Antonello

Mike. you, Thank

reinvestment months repurchases to to $XX off short we've reinvest recent is redemptions first proceeds excess $XX and shareholders. $XX the shorter leveraging returned our our versus and of ago. shareholders investment a our strategy from of to of increases approximately dividends fixed in XX% more and years or paid. comprised management of net maturities occurring million at capital XXXX, Our By securities year-to-date rates has allowed to return in of Managing paid a our million has and to duration capital to capital share cleared Year-to-date, proactively either million throughout yields. us quickly market maturity nine higher the income grown interest year

adjusted investment which unrealized book our losses other fixed per market our our share by same X%, and has equities portfolio, interest those losses from only value result statement. flow While through a income maturity our generated dropped in of unrealized direct rates investments,

our and success. capital remained of Our and strong highly balance underwriting growth and continued supportive are sheet very

with continued business trends, in remain identify take As well-positioned we questions. operator, to and and and small And that, our a we favorable are unique confident react success. highly specialist we now in compensation, to will workers' opportunities

Operator

Our Instructions] with first comes FactSet. question Skoko Goran from [Operator

open. Your line is

Goran moment your line Your line question. your with question. first you for FactSet, your open, ask is open, One FactSet. is open. with our Instructions] is line Skoko, [Operator Goran can

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Katherine Antonello

move can we Yes, on.

Operator

Did to up, want person or [Operator Instructions] there It's maybe same close respond they did you this just that you? time the see queued or are.

Katherine Antonello

conclude. can We

Operator

back I any turn it will to Okay. Katherine for remarks. closing you

Katherine Antonello

for I look forward all to Yes, Thank easy. morning. all And this with you meeting thanks February. in again Kevin. joining That you was

Operator

that gentlemen, Ladies presentation. and today's concludes

day. a disconnect. And now wonderful may have You

Employers (EIG) 28 Oct 222022 Q3 Earnings call transcript