Employers -EIG Q4 Earnings Beat on Higher Policies in Force, Stock Up 4%

Core Viewpoint - Employers Holdings, Inc. (EIG) reported mixed fourth-quarter 2024 results, with a 4.3% increase in shares following the announcement, driven by a record number of policies in force and improved investment yields, although profitability was pressured by elevated expenses and a slight decline in premiums written [1] Financial Performance - Adjusted earnings per share (EPS) for Q4 were $1.15, exceeding the Zacks Consensus Estimate by 6.5%, but down 17.9% year over year [2] - Operating revenues totaled$ 217 million, a 4% decline year over year, missing the consensus estimate by 2.1% [2] - Gross premiums written decreased by 1% year over year to $176.3 million, while net premiums written also fell by 1% to$ 174.7 million [3] - Net premiums earned increased by 1% year over year to $190.2 million, but fell short of the Zacks Consensus Estimate of$ 193.5 million [3] - Net investment income rose by 2% year over year to $26.7 million, although it was below the consensus mark of$ 27.6 million [4] - Total expenses increased by 8.6% year over year to $181.9 million, with losses and loss adjustment expenses rising by 22% year over year [5] - Pre-tax income dropped by 40.4% year over year to$ 34.7 million [5] Operational Metrics - The number of policies in force reached a record 130,767, up 3.4% year over year [6] - The GAAP combined ratio was 95.5%, worsening by 740 basis points year over year but better than the Zacks Consensus Estimate of 96.3% [6] - The underwriting and general administrative expense ratio improved by 140 basis points year over year to 23.2% [6] Balance Sheet and Capital Deployment - As of December 31, 2024, EIG had investments, cash, and cash equivalents of $2.5 billion, a 1.1% increase from the end of 2023 [7] - Total assets decreased by 0.3% to$ 3.5 billion, while total stockholders' equity rose by 5.4% to $1.1 billion [7] - Adjusted book value per share increased by 7% year over year to$ 50.71 [7] - In 2024, EIG repurchased shares worth $41.7 million and paid dividends totaling$ 30 million [8] - A quarterly dividend of 30 cents per share was announced for Q1 2025, payable on March 19, 2025 [8] Full-Year Overview - For the full year 2024, adjusted EPS decreased by 2.6% year over year to $3.73, while total revenues grew by 3.5% to$ 880.7 million [9] - Gross premiums written increased by 1.1% year over year to $776.3 million, and net premiums written rose by 1% to$ 769.5 million [9] - Net premiums earned advanced by 4% year over year to $749.5 million, with net investment income remaining relatively flat at$ 107 million [9] - Adjusted net income declined by 8% year over year to $94 million [9] - The combined ratio for the year was 97.9%, deteriorating by 290 basis points year over year [10]