EIG - Earnings call transcript Q3 2024 | Employers Holdings, Inc.

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Operator

Thank you for standing by, and welcome to the Employers Holdings, Inc.

Third Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, today's program is being recorded.

And now I'd like to introduce your host for today's program, Lori Brown, General Counsel. Please go ahead.

Lori Brown

Jonathan. you, Thank welcome, call and the quarter third Good Employers. everyone, earnings for XXXX morning, to Today's recorded will is our the call being website, section the call. where of Investors a replay be following and available webcast from

Act made provision based historical not Securities of These are the facts that on reliance Reform statements. on made forward-looking Private during in this of considered the Statements call statements are XXXX. conference are safe Litigation harbor

updated our risks the the reflect Securities reasonable, uncertainties call in different and time subsequent the our filings forth only Although current actual Commission. be forward-looking to could at in we believe the with and expectations results All are to cause the during from expressed are statements call of our risks and developments. remarks made the be Exchange not will materially expectations, including set

this The SEC's nonpublic complying and for material company a -- also under disclosing obligations securities uses means of information FD. the sorry, disclosure website with as under Regulation the

Some section webcasts. investors of conference addition SEC and disclosures public following of portion our our the website to our filings, Investors in monitor that Accordingly, press should calls website. releases, be included will in

investor use or non-GAAP an In attachment responses Reconciliations measures. our release and as our supplement Investors website. GAAP our other in our presentation financial section to and any in we the results may to our press our earnings these in non-GAAP measures to press materials remarks our release, on financial questions, of available are earnings included

our Officer, the to Antonello. Chief I'll turn now And Executive call over Kathy

Katherine Antonello

participating a earlier warm me let And in echo you, Thank words your with welcome call. everyone today's to Lori.

is Financial our Chief Officer. today me Paquette, Mike Joining

provide discussion. where deliver open thoughts follow a details comments then and and call, for the few with it up our opening to additional on it over typical During comments will to financials. we close our I questions, Mike will I'll agenda, then hand and my the we'll

with third pleased Employers' very quarter We are results.

by year-over-year, higher net As premiums, by gains increases. continued net share main the and strong saw XX%. investment of drivers The income net per and increased XXX% increased earned net income the were adjusted we share per income investment

rates Our the quarter, value strong to of all-time the in each lifted per interest operating results, book during our share sharp experienced decrease with metrics coupled highs.

quarter, the pickup renewal audit and our to we while reductions continued During in grow accrual. premiums premium new audit experiencing both and

Our with and XX.X% year the accident XXXX on business and throughout we XXXX. XX%, current loss that ratio slightly consistent LAE voluntary maintained of was above

of our any we As reserve prior was because not development performed. recognize actuarial the loss study quarter XXXX, the did third was not case year the on in voluntary business whole

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

Our to ratio effective. ongoing initiatives reduce underwriting expense be administrative and continues and to general our

ago is XX.X% of results is the since of ratio plan the a quarter XX.X% quarter's fourth Cerity This primarily second-lowest the The XXXX. year and we of from in down the decrease executed XXXX. integration was

into will I deeper to provide that, remarks. closing then With my our return will dive financials, provide Mike now a Mike? and

Michael Paquette

to were $XXX by Net primarily final premiums audit and written premiums lower of than being of million, was a endorsements. Gross Kathy. $XXX earned you, offset decrease an higher more The Thank due decrease premiums and business were X%. increase writings X%. renewal new million,

expense ago. earned to The and were loss loss was expense XX.X%. versus expenses higher estimates. LPT, was ratio, Our and and primarily $XXX adjustment loss the loss million accident in adjustment loss excluding $XXX year loss slightly and losses higher current premiums versus a due and adjustment year our million increase a adjustment expenses XX.X%

anticipated primarily ago, versus agency decrease expense was incentives vary XX.X%. decrease related in versus our which expense million and a The individual specific million contracts Commissions with in and and commission commission to year expenses ratio are agency XX.X% our ratio targets. XXXX to $XX $XX a were was

million. and versus and were million $XX our And expenses underwriting administrative general general XX.X% expense and Underwriting $XX versus ratio XX.X%. was

income $XX a was expense the investment the we increase our Bank The yields an primarily ago, of fourth net which interest our net the of When through year-over-year. versus third incurred the investment to quarter considering unwound income million Home on due XXXX million was million $X up maturity of X% Federal X%. of in quarter quarter strategy leveraged for XXXX, year Loan in our Our investment higher increase was $XX we securities. fixed

average Our fixed of maturities credit currently have a A+. X.X an on quality and duration of

yield book is was which ago. average from weighted X.X% quarter at nicely up end, X.X% Our a year

holdings income from million our equity this was balance on which unrealized on sheet. income predominantly which favorably holdings, investment by million generated and $XX are net quarter after-tax securities our $XX of impacted reflected gains our was reflected fixed equity of net by from maturity favorably Our other gains statement; are after-tax both generated stockholders' unrealized impacted and of net

third of of fourth the During our stock price additional thus we in an $XX.XX at quarter repurchased stock average per And at have average share. repurchased an $X we million common far, an of million the quarter, price share. common $X of per $XX.XX our

Our repurchase currently remaining $XX authority million. stands at share

dividend record declared stockholders turn share. it I'll November Directors November on of XXXX And per to dividend yesterday, on quarter our payable $X.XX now XX. And fourth This quarterly Board of a is back to XX of regular Kathy.

Katherine Antonello

Mike. you, Thank

achieved be large in expansion which the to growth, increase to to from a X% has we've appetite premium contributor that audit. effort, Our excluding adjustments led premium continues year-to-date, profitable

future. traditional from we or strategy better Our loss our well further this into segments continue these ratios new benefit in the in and expect to be to segments line than

an book we a our through through price combination to share returned at $XX.X quarterly this our to repurchases average quarter of was regular accretive million value And and highly share that stockholders finally, per dividends. adjusted

operator, that, now with take And will questions. we

Operator

first Truist Our the Securities. line of Hughes Instructions] comes from Mark [Operator question from

Mark Hughes

are, appetite some of Or codes? bit run the you expansion? less a the of just course quarter. how than appetite need Your and think at was do to What little should prospects its we I pace expansion, take the think X% it that class that the look and you growth new the another sort year-to-date, about look third maybe that? the market Has for think

Katherine Antonello

Yes.

don't think its run I it's So course.

are working are our we group, we and -- call looking And We have working appetite that find with in they we expand. codes fit and still we what class are. to continue to new who

end the fact, expand quarter, we our did appetite. the In of towards third

also class look the At that not to time, are feel we the we find codes that should. performing to like they extent same

we pull too. so times, And back, at

that continue put our continue beyond that can to find to at we profitably, until where will intention no bed to fit places to that and into -- within there's we XXXX codes But all do grow find And can't appetite. strategy. we we anymore and

Mark Hughes

Yes. in it period? your Is to been saw there anything like XQ, as October. in premium you've why bit it The a and maybe put finger decelerated in audit up it's able back you the to sounds on lull picked the

Katherine Antonello

to finger at, with that We but briefing within haven't going high-level specific, looking yesterday. things some contributed. out quarterly have may actually NCCI been anything able we economics was on our I have the economy we came put on the think the

that then synonymous to with the be from found sort now over slowed October. the And or September. meaningfully one picked we of interesting takeaways and the summer And seeing back of very and over it the that was what in labor report summer themes key in saw that and up market I we're

and said more in also only pace growth volatility coming. expect They modest they that employment some hiring --

a there. we is So what It's out that some volatility predict. to there was But very very, saw. similar difficult number to very

been we've sharing we as coming and premium, the -- And numbers started our But those has accrual. the know, on why is so that with audit have without down, you impact decreasing net written premiums as an have adjustments. audit been which

Mark Hughes

your there? new Anything around of payroll that similar from Anything pace lull Yes. divine partners to business? of

Katherine Antonello

that growth we've channel. what on core Haven't front. payroll tremendous it's seen can we're be coming is continues independent the from which our seeing I digital heard the call agent that say anything channel, growth But whether we side. our that our on also widespread, to from partners

is second policies did of point do to quarter in I than during or want more the by increased quarter force One they thing XXXX. XXXX third the out that in first of our

that we that was smaller that grow, of to quite wasn't size one the the strong And we third contributors from quarter as came bands. the fact growth the policy in in the So quarter. third did our saw growth, while

Mark Hughes

that in will prognostication with trend? What's Yes. about think come your how loss for what think NCCI terms XXXX, of the When you do we costs? will up aggregate

Katherine Antonello

so and forward. I far, effective be what are seen X/X/XX I've think to the going that from filings

bureaus very in the the same in the on of moderate by it's costs, downward driven decreases loss pressure show seen that and frequency we've in things changes and severity. past, to All continue

of of terms their in ball crystal a too I'm have what much a have don't will I seeing -- what filed, really already beyond I there but change So happen in terms not what of filing. they

will every Now can do that. I out appropriate state point that, is prices book adjust feel what to continue of except to our we and our Florida, for in we business, we

Operator

showing like to further to program [Operator Instructions] I'd questions back hand remarks. not I'm time. any at And any further the Kathy this for Antonello

Katherine Antonello

meeting morning, with this forward to look you in results. discuss joining to our year-end for Thank all you I and again Okay. us February

Operator

participation ladies your you, conference. program. in This for the Thank conclude and today's does gentlemen,

now day. may Good disconnect. You

Employers (EIG) 31 Oct 242024 Q3 Earnings call transcript