Q4 2024 Employers Holdings Inc Earnings Call Transcript
Key Points
- Employers Holdings Inc (EIG) achieved the highest levels of written and earned premium, ending enforced premium and policies, and net investment income in its history for 2024.
- The company reported solid growth in new and renewal premiums throughout 2024, with a 3% increase in gross written premiums in the fourth quarter and 6% for the full year.
- Net investment income was strong, with $27 million for the fourth quarter and $107 million for the full year, supported by higher bond yields.
- The company achieved a combined ratio of 95.5% for the fourth quarter and 98.6% for the full year, marking the tenth consecutive year of underwriting profit.
- AM Best upgraded the financial strength ratings of Employers Holdings Inc (EIG) insurance companies to A, reinforcing its ability to provide reliable coverage.
- Lower final audit premiums and endorsements offset the growth in new and renewal premiums.
- The loss and LAE ratios increased to 59.5% for the fourth quarter and 61.6% for the full year, compared to 50.2% and 57.2% a year ago, due to lower favorable prior year loss reserve development.
- The company anticipates increasing its 2025 accident year loss and LAE ratio for voluntary business due to a competitive rate environment.
- Net realized and unrealized losses on investments were less than $1 million for the quarter, compared to net gains of $12 million a year ago.
- The effective tax rate decreased to 18% for the quarter, down from 22% a year ago, impacting the overall tax expense.
Good day and thank you for standing by. Welcome to the fourth quarter of 2024 Employers Holdings, Inc earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would not attend the conference over to your speaker today, Lori Brown, please go ahead.
Thank you, Kevin. Good morning and welcome everyone to the fourth quarter of 2024 earnings call for Employers. Today's call is being recorded in webcast from the investors section of our website, where a replay will be available following the call.
Statements made during this conference call that are not based on historical facts are considered forward-looking statements. These statements are made in reliance on the safe harbor provision of the Private Securities Litigation Reform Act of 1,995. Although we believe the expectations expressed in our forward-looking statements are reasonable, risks and uncertainties could cause actual
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