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Eastern Insurance Holdings Inc. (EIHI) filed Quarterly Report for the period ended 2011-06-30.
Eastern Insurance Holdings Inc. has a market cap of $111.6 million; its shares were traded at around $13.27 with 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 $2.0 million and $3.9 million for the three and six months ended June 30, 2011, respectively, compared to $279,000 and $1.2 million for the same periods in 2010.
The improved operating results primarily reflect growth in premium revenue, which was driven by new business sales, an improvement in the renewal retention rate and renewal rate increases, as well as an improvement in audit premium. Net premiums earned included audit premium from customers of $595,000 and $461,000 for the three and six months ended June 30, 2011, respectively, compared to audit premium returned to customers of $1.5 million and $2.1 million for the same periods in 2010. The audit premium also had a favorable impact on the consolidated expense ratio, which improved to 29.8% and 30.9% for the three and six months ended June 30, 2011, from 31.1% and 32.6% for the same period in 2010.
The Company discounts its workers’ compensation reserves, using a discount rate of approximately 3.0%. As of June 30, 2011 and December 31, 2010, the Company’s reserves for unpaid losses and LAE were reduced by $5.2 million and $4.6 million, respectively, related to the effects of discounting.
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. There were no other-than-temporary impairments recognized by the Company for the three and six months ended June 30, 2011. The Company recognized other-than-temporary impairments totaling $0 and $6,000 for the three and six months ended June 30, 2010. As of June 30, 2011, the Company held securities with gross unrealized losses of $197,000, 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 investments, 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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