Employers Holdings, Inc. (EIG) Bundle
A Brief History of Employers Holdings, Inc. (EIG)
Company Overview
Employers Holdings, Inc. is a Nevada-based holding company that provides workers' compensation insurance primarily to small and mid-sized businesses. As of September 30, 2024, the company reported total assets of $3.6 billion and total liabilities of $2.5 billion.
Financial Performance
For the nine months ended September 30, 2024, Employers Holdings, Inc. reported:
- Net income: $90.3 million
- Total revenues: $664.1 million
- Net premiums earned: $559.3 million
- Net investment income: $80.3 million
- Gross premiums written: $599.9 million
Quarterly Highlights
In the third quarter of 2024, the company achieved:
- Net income: $30.3 million
- Total revenues: $224.0 million
- Net premiums earned: $186.6 million
- Net investment income: $26.6 million
- Gross premiums written: $181.2 million
Expenses and Ratios
The following table summarizes key expense metrics and ratios for the nine months ended September 30, 2024:
| Expense Category | Amount (in millions) |
|---|---|
| Losses and loss adjustment expenses | $343.0 |
| Commission expense | $78.7 |
| Underwriting and general administrative expenses | $130.2 |
| Total expenses | $552.0 |
| Combined ratio | 100.4% |
In-Force Premiums
As of September 30, 2024, the company's in-force premiums were $734.3 million, a significant increase from previous periods:
| Period | In-Force Premiums (in millions) |
|---|---|
| September 30, 2024 | $734.3 |
| December 31, 2023 | $694.6 |
| September 30, 2023 | $676.0 |
| December 31, 2022 | $622.5 |
Investment Portfolio
As of September 30, 2024, the company's investment securities included:
- Fixed maturity securities: $2,065.8 million
- Equity securities: $256.2 million
- Other invested assets: $99.7 million
Stockholder Equity
The total stockholders' equity as of September 30, 2024, was reported at $1.1 billion.
Market Position
Employers Holdings, Inc. primarily operates in the U.S. workers' compensation market, with a significant concentration in California, which accounts for approximately 45% of its in-force premiums.
Recent Developments
In 2024, the company continued to implement strategies aimed at enhancing operational efficiency and expanding its market reach, focusing on disciplined underwriting and claims management.
A Who Owns Employers Holdings, Inc. (EIG)
Major Shareholders
As of 2024, the ownership structure of Employers Holdings, Inc. (EIG) is comprised of institutional and individual investors. The following table outlines the significant shareholders and their respective ownership percentages:
| Shareholder Type | Shareholder Name | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Institutional Investor | BlackRock, Inc. | 6,401,832 | 11.00% |
| Institutional Investor | Vanguard Group, Inc. | 5,834,720 | 10.00% |
| Institutional Investor | State Street Corporation | 3,287,921 | 5.67% |
| Individual Investor | Joseph M. Schulte | 1,500,000 | 2.58% |
| Individual Investor | Other Insiders & Management | 1,000,000 | 1.72% |
| Public Float | N/A | 42,076,358 | 72.03% |
Recent Stock Performance
Employers Holdings, Inc. has shown a steady performance in the stock market as of early 2024. The stock has traded within a range of $30 to $40 per share over the past year.
The following table summarizes the stock performance metrics:
| Metric | Value |
|---|---|
| Current Share Price | $35.40 |
| 52-Week High | $40.12 |
| 52-Week Low | $29.87 |
| Market Capitalization | $2.05 billion |
| Average Daily Volume | 150,000 shares |
Financial Overview
Employers Holdings, Inc. has reported notable financial results in recent quarters. The following table presents key financial figures from the third quarter of 2024:
| Financial Metric | Value (in millions) |
|---|---|
| Gross Premiums Written | $181.2 |
| Net Premiums Written | $179.6 |
| Net Premiums Earned | $186.6 |
| Net Investment Income | $26.6 |
| Total Revenues | $224.0 |
| Net Income | $30.3 |
Ownership Changes and Trends
Recent filings indicate a slight increase in institutional ownership, reflecting growing interest in Employers Holdings, Inc. The following table details changes in ownership percentages over the past year:
| Shareholder Type | Previous Ownership Percentage | Current Ownership Percentage |
|---|---|---|
| Institutional Investors | 24.00% | 26.67% |
| Individual Investors | 3.50% | 3.30% |
| Public Float | 72.50% | 70.03% |
Conclusion on Shareholder Composition
The ownership structure of Employers Holdings, Inc. reflects a diverse mix of institutional and individual investors, with a significant portion held by public float. This distribution indicates a stable investment environment, with institutional investors playing a crucial role in the company's market presence.
Employers Holdings, Inc. (EIG) Mission Statement
Mission Statement Overview
The mission of Employers Holdings, Inc. is to provide superior workers' compensation insurance solutions and services that promote workplace safety and health. The company aims to empower its customers with innovative products and exceptional service while maintaining a strong commitment to community and stakeholder engagement.
Core Values
- Integrity: Upholding the highest standards of ethical behavior and transparency.
- Customer-Centricity: Focusing on the needs and satisfaction of customers in all operational aspects.
- Innovation: Continuously seeking new and effective solutions to enhance service delivery.
- Collaboration: Working together with clients and partners to achieve mutual success.
- Community Engagement: Actively participating in and contributing to the communities in which they operate.
Business Operations
Employers Holdings operates primarily in the workers' compensation insurance sector, focusing on small to medium-sized businesses. The company's strategic initiatives include:
- Expanding product offerings to meet diverse customer needs.
- Enhancing underwriting processes for improved risk assessment.
- Utilizing technology to streamline operations and improve customer experience.
Financial Performance Metrics (2024)
As of September 30, 2024, Employers Holdings, Inc. reported the following key financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Gross Premiums Written | $181.2 million | $196.2 million | -7.0% |
| Net Premiums Written | $179.6 million | $194.5 million | -7.6% |
| Net Premiums Earned | $186.6 million | $184.6 million | +1.1% |
| Net Income | $30.3 million | $14.0 million | +116.4% |
| Total Revenues | $224.0 million | $203.5 million | +10.2% |
| Combined Ratio | 100.4% | 100.3% | +0.1% |
In-Force Premiums
As of September 30, 2024, the company's in-force premiums and policies are as follows:
| State | In-Force Premiums | Policies In-Force |
|---|---|---|
| California | $329.2 million | 44,387 |
| Florida | $59.0 million | 10,664 |
| New York | $35.2 million | 7,956 |
| Other States | $310.9 million | 66,872 |
| Total | $734.3 million | 129,879 |
Recent Strategic Initiatives
Employers Holdings has undertaken several strategic initiatives to enhance its operational efficiency and customer engagement, including:
- Integration of direct-to-consumer operations to improve service delivery.
- Investment in technology to enhance underwriting and claims processing.
- Focus on expanding market share through targeted marketing efforts.
Conclusion of Financial Results
For the nine months ended September 30, 2024, the company reported:
| Metric | 2024 | 2023 |
|---|---|---|
| Gross Premiums Written | $599.9 million | $589.5 million |
| Net Premiums Written | $594.8 million | $584.2 million |
| Net Income | $90.3 million | $72.5 million |
| Total Revenues | $664.1 million | $625.2 million |
How Employers Holdings, Inc. (EIG) Works
Overview of Operations
Employers Holdings, Inc. (EIG) operates as a Nevada holding company and provides workers’ compensation insurance coverage primarily to small and medium-sized businesses in low-to-medium hazard industries. The company focuses on states like California, which accounts for approximately 45% of its in-force premiums.
Financial Performance
As of September 30, 2024, EIG reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Gross Premiums Written | $181.2 million | $196.2 million | $599.9 million | $589.5 million |
| Net Premiums Written | $179.6 million | $194.5 million | $594.8 million | $584.2 million |
| Net Premiums Earned | $186.6 million | $184.6 million | $559.3 million | $534.4 million |
| Net Investment Income | $26.6 million | $25.9 million | $80.3 million | $80.3 million |
| Net Income | $30.3 million | $14.0 million | $90.3 million | $72.5 million |
| Total Revenues | $224.0 million | $203.5 million | $664.1 million | $625.2 million |
| Total Expenses | $187.3 million | $186.1 million | $552.0 million | $534.9 million |
Underwriting Results
Underwriting income or loss is calculated by deducting the losses and loss adjustment expenses (LAE), commission expenses, and underwriting and general administrative expenses from net premiums earned. For the three and nine months ended September 30, 2024, the results were:
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Underwriting Income (Loss) | $(0.7) million | $(0.5) million | $7.4 million | $14.1 million |
| Loss and LAE | $117.7 million | $114.9 million | $343.0 million | $312.8 million |
| Commission Expense | $26.4 million | $26.7 million | $78.7 million | $73.8 million |
| Underwriting Expense Ratio | 23.2% | 23.6% | 23.3% | 25.0% |
| Combined Ratio | 100.4% | 100.3% | 98.7% | 97.3% |
Investment Performance
EIG manages a diverse investment portfolio, which includes fixed maturity securities, equity securities, and other invested assets. The net realized and unrealized gains (losses) on investments for the three and nine months ended September 30, 2024, are as follows:
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Realized and Unrealized Gains (Losses) | $10.9 million | $(7.1) million | $24.5 million | $10.7 million |
Liabilities and Reserves
The liability for unpaid losses and loss adjustment expenses as of September 30, 2024, is detailed below:
| Metric | Amount |
|---|---|
| Unpaid Losses and LAE at Beginning of Period | $1,850.9 million |
| Net Unpaid Losses and LAE at Beginning of Period | $1,432.6 million |
| Total Net Losses and LAE Incurred | $119.2 million |
| Total Net Paid Losses and LAE During the Period | $128.4 million |
| Ending Unpaid Losses and LAE | $1,836.5 million |
Shareholder Information
EIG's basic and diluted earnings per share for the three and nine months ended September 30, 2024, are as follows:
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Basic Earnings per Share | $1.22 | $0.54 | $3.59 | $2.72 |
| Diluted Earnings per Share | $1.21 | $0.54 | $3.57 | $2.71 |
How Employers Holdings, Inc. (EIG) Makes Money
Revenue Streams
Employers Holdings, Inc. primarily generates revenue through three main sources: net premiums earned, net investment income, and net realized and unrealized gains on investments.
| Revenue Source | Q3 2024 (in millions) | Q3 2023 (in millions) | 9M 2024 (in millions) | 9M 2023 (in millions) |
|---|---|---|---|---|
| Net Premiums Earned | 186.6 | 184.6 | 559.3 | 534.4 |
| Net Investment Income | 26.6 | 25.9 | 80.3 | 80.3 |
| Net Realized and Unrealized Gains | 10.9 | (7.1) | 24.5 | 10.7 |
| Total Revenues | 224.0 | 203.5 | 664.1 | 625.2 |
Net Premiums Earned
Net premiums earned, which accounted for the majority of the company's revenue, increased by 1.1% for Q3 2024 and 4.7% for the nine months ending September 30, 2024, compared to the same periods in 2023. This growth is attributed to higher new and renewal business premiums driven by an increase in submissions and quotes across various states.
Net Investment Income
Net investment income remained stable at $80.3 million for the nine months of 2024, consistent with the previous year. The income derives from interest and dividends from invested assets, including fixed maturity and equity securities.
Net Realized and Unrealized Gains on Investments
In Q3 2024, the company reported net realized and unrealized gains of $10.9 million, reversing a loss of $7.1 million in Q3 2023. For the nine-month period, these gains totaled $24.5 million compared to $10.7 million in 2023. This performance was influenced by favorable market conditions for equity securities.
Underwriting Performance
The underwriting results are critical to understanding the profitability of Employers Holdings. The combined ratio, which measures underwriting profitability, was 100.4% for Q3 2024, indicating that the company incurred losses and expenses equal to 100.4% of its net premiums earned. A ratio below 100% indicates profitability, while above indicates a loss.
| Combined Ratio Components | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Loss and LAE Ratio | 63.1% | 62.2% | 61.3% | 58.5% |
| Commission Expense Ratio | 14.1% | 14.5% | 14.1% | 13.8% |
| Underwriting Expense Ratio | 23.2% | 23.6% | 23.3% | 25.0% |
| Combined Ratio | 100.4% | 100.3% | 98.7% | 97.3% |
Expenses Overview
Total expenses for the nine months ended September 30, 2024, were $552.0 million, compared to $534.9 million for the same period in 2023. Key components of expenses include:
- Losses and Loss Adjustment Expenses (LAE): $343.0 million in 2024 vs. $312.8 million in 2023.
- Commission Expenses: $78.7 million in 2024 vs. $73.8 million in 2023.
- Underwriting and General Administrative Expenses: $130.2 million in 2024 vs. $133.7 million in 2023.
Investment Strategy and Performance
Employers Holdings invests in fixed maturity securities, equity securities, and other invested assets. The company’s investment strategy aims to achieve stable returns while maintaining liquidity to support its insurance operations. As of September 30, 2024, the fair value of securities on deposit was $746.1 million.
Net Income
Net income for the nine months ended September 30, 2024, was $90.3 million, compared to $72.5 million for the same period in 2023. The increase in net income is primarily due to higher net premiums earned and improved investment performance.
| Net Income Analysis | Q3 2024 (in millions) | Q3 2023 (in millions) | 9M 2024 (in millions) | 9M 2023 (in millions) |
|---|---|---|---|---|
| Net Income | 30.3 | 14.0 | 90.3 | 72.5 |
Market Position and Competitive Landscape
Employers Holdings operates primarily in the workers' compensation insurance market, focusing on small to mid-sized businesses. The company's competitive advantage lies in its specialized underwriting expertise and strong relationships with agents and brokers. As of 2024, approximately 45% of in-force premiums are generated from California, indicating a concentrated market presence.
Conclusion
Employers Holdings, Inc. continues to leverage its operational strengths in underwriting and investment management to drive revenue growth and profitability in a competitive insurance landscape.
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Article updated on 8 Nov 2024
Resources:
- Employers Holdings, Inc. (EIG) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Employers Holdings, Inc. (EIG)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Employers Holdings, Inc. (EIG)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.