Employers (EIG) - 2025 Q1 - Quarterly Report

Financial Performance - Total revenues for Q1 2025 were $202.6 million, a decrease of 9.5% from$ 223.1 million in Q1 2024[14] - Net income for Q1 2025 was $12.8 million, a significant drop of 54.7% compared to$ 28.3 million in Q1 2024[14] - Net premiums earned decreased to $183.0 million in Q1 2025, down from$ 184.9 million in Q1 2024, reflecting a decline of 1.0%[14] - Total expenses for the three months ended March 31, 2025, were $186.7 million, compared to$ 187.8 million for the same period in 2024, showing a slight decrease of 0.6%[103][104] - Net income for the three months ended March 31, 2025, was $12.8 million, a decrease of 54.8% compared to$ 28.3 million for the same period in 2024[21] - The combined ratio for the Insurance Operations segment was 102.0% for Q1 2025, compared to 101.6% for Q1 2024, indicating a slight deterioration in underwriting performance[103][104] Assets and Liabilities - Total assets increased to $3,556.9 million as of March 31, 2025, compared to$ 3,541.3 million as of December 31, 2024, representing a growth of 0.4%[12] - Total liabilities rose to $2,481.2 million as of March 31, 2025, up from$ 2,472.6 million at the end of 2024, indicating a 0.3% increase[12] - The total stockholders' equity increased to $1,075.7 million as of March 31, 2025, from$ 1,068.7 million at the end of 2024, a rise of 0.8%[12] Cash and Investments - Cash and cash equivalents increased to $100.4 million as of March 31, 2025, compared to$ 68.3 million as of December 31, 2024, reflecting a growth of 47.0%[12] - The company reported a net cash provided by investing activities of $46.1 million, a turnaround from a net cash used of$ 97.7 million in the previous year[21] - Total cash, cash equivalents, and restricted cash at the end of the period was $100.6 million, up from$ 68.5 million at the beginning of the period[22] - The investment portfolio as of March 31, 2025, had a total fair value of $2,335.9 million, with a weighted average book yield of 4.5%[186] - The fixed maturity securities portfolio had a weighted average quality rating of "A+" as of March 31, 2025[182] Losses and Expenses - Losses and loss adjustment expenses for Q1 2025 were$ 120.7 million, up from $116.5 million in Q1 2024, marking an increase of 2.9%[14] - Total net losses and LAE incurred during the three months ended March 31, 2025, were$ 122.3 million, compared to $118.6 million for the same period in 2024[78] - Current accident year losses and LAE increased to$ 121.0 million for the three months ended March 31, 2025, compared to $118.7 million for the same period in 2024, reflecting a rise in loss trends[133] Dividends and Stockholder Equity - The company declared cash dividends of$ 0.30 per common share in Q1 2025, compared to $0.28 in Q1 2024, representing a 7.1% increase[14] - The adjusted stockholders' equity as of March 31, 2025, was$ 1,228.8 million, compared to $1,213.0 million as of March 31, 2024, indicating a growth of 1.3%[103][104] Investment Gains and Losses - The company reported unrealized AFS investment gains of$ 21.1 million for Q1 2025, compared to losses of $11.6 million in Q1 2024[14] - The company recorded net realized and unrealized gains on investments of$ 12.8 million, contrasting with losses of $11.4 million in the prior year[21] - The company reported unrealized gains of$ 16.7 million and unrealized losses of $93.6 million on its available-for-sale investments as of March 31, 2025[48] Operational Metrics - Gross premiums written for the Insurance Operations segment increased to$ 212.1 million in Q1 2025, up from $210.9 million in Q1 2024, representing a growth of 0.6%[103][104] - The number of in-force policies increased to 133,121 as of March 31, 2025, compared to 130,767 at December 31, 2024[122] - The company continues to invest in technology to enhance data analytic capabilities and reduce operating costs over the long term[115] Tax and Regulatory - The effective tax rate for the three months ending March 31, 2025, was 19.5%, compared to 19.8% for the same period in 2024[75] - Income tax expense decreased to$ 3.1 million in Q1 2025 from $7.0 million in Q1 2024, with effective tax rates of 19.5% and 19.8%, respectively[149] Share Repurchase and Commitments - The company repurchased 406,101 shares for$ 20.2 million during Q1 2025[173] - As of March 31, 2025, the company had unfunded investment commitments totaling $14.0 million[177]