Employers Insurance Company of Nevada, A Mutual Company (“EICN”) and its wholly-owned subsidiary Employers Compensation Insurance Company (“ECIC”) formerly known as Fremont Employers Insurance Company, (collectively the “Company”), reported statutory financial results for the quarter ending Sept. 30, 2003.
For the three months ended Sept. 30, 2003, the Company reported consolidated net income of $13.9 million on consolidated net premiums earned of $90.2 million. These results are compared to net income of $7.5 million on net premiums earned of $54.2 million for the three months ended Sept. 30, 2002. The significant increase in net income in the third quarter of 2003 as compared to the prior year period was due primarily to reductions in loss and loss adjustment expense reserves relating to losses occurring prior to 2003. The Company reported a combined ratio of 88.3 percent for the three months ended Sept. 30, 2003, which compares to a combined ratio of 101.6 percent for same prior year period.
Net investment income of $1.7 million in the three months ended Sept. 30, 2003 compares to $10.6 million for the same prior year period. Lower net investment income in the third quarter of 2003 as compared to the prior year period resulted from both lower portfolio income due to continued lower returns on fixed income securities, as well as net realized losses totaling $5.0 million in the third quarter of 2003 as compared to net realized gains of $466,000 in the third quarter of 2002.
“I am very pleased with our company’s continued strong performance in the third quarter of 2003,” said EICN CEO Douglas Dirks. “Despite a sluggish economy and continued volatility in California, our company continued to grow its book of business by utilizing our industry expertise and our focused approach to underwriting. In Nevada, the market remained mostly unchanged during the third quarter.”
The Company’s financial position remains strong, with assets of $1.35 billion and policyholder surplus of approximately $300 million, an increase of $84.6 million since Dec. 31, 2002.
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