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Eastern Insurance Holdings Inc. (EIHI) filed Quarterly Report for the period ended 2011-03-31.
Eastern Insurance Holdings Inc. has a market cap of $115.8 million; its shares were traded at around $13.19 with a P/E ratio of 659.5 and P/S ratio of 1. The dividend yield of Eastern Insurance Holdings Inc. stocks is 2.1%.
This is the annual revenues and earnings per share of EIHI over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of EIHI.
Highlight of Business Operations:
The Company reported net income from continuing operations of $1.9 million for the three months ended March 31, 2011, compared to net income of $945,000 for the same period in 2010. The combined ratio totaled 97.8% for the three months ended March 31, 2011, compared to a combined ratio of 102.4% for the same period in 2010.
The Company discounts its workers’ compensation reserves, using a discount rate of approximately 3.0%. As of March 31, 2011 and December 31, 2010, the Company’s reserves for unpaid losses and LAE were reduced by $5.0 million and $4.6 million, respectively, related to the effects of discounting.
Unrealized investment gains or losses on investments carried at fair value, net of applicable income taxes, are reflected directly in shareholders’ equity as a component of comprehensive income (loss) and, accordingly, have no effect on net income. When, in the opinion of management, a decline in the fair value of an investment below its cost or amortized cost is considered to be “other-than-temporary,” such investment is written down to its fair value. The amount written down is recorded in earnings as a realized loss on investments. Generally, the determination of other-than-temporary impairment includes, in addition to other relevant factors, a presumption that if the market value is below cost by a significant amount for a period of time, a write down is necessary. Notwithstanding this presumption, the determination of other-than-temporary impairment requires judgment about future prospects for an investment and is therefore a matter of inherent uncertainty. For the three months ended March 31, 2011, the Company recognized other-than-temporary impairments of $0, compared to $15,000 for the same period in 2010. As of March 31, 2011, the Company held securities with gross unrealized losses of $312,000, excluding those securities in the segregated portfolio cell reinsurance segment, of which $0 were in an unrealized loss position for more than 12 months. Adverse investment market conditions, poor operating results of underlying issuers, or the passage of time with respect to equity securities in an unrealized loss position, could result in impairment charges in the future. The Company generally applies the following standards in determining whether the decline in fair value of an investment is other-than-temporary:
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