Reno, Nev.-based Employers Holdings Inc. reported net income for the first quarter in 2008 was $25.5 million, down from the $27.9 million earned in the same period in 2007.
First quarter net premiums earned declined $13.9 million or 15.5 percent to $75.9 million in 2008 from $89.8 million in 2007. The company said the decline was largely due to rate decreases resulting from previously enacted reforms in California. The impact of these rate decreases was partially offset by an overall in force policy count increase of 10.7 percent.
The first quarter 2008 combined ratio of 83 percent (89.3 percent before its Loss Portfolio Transfer Agreement) improved from the first quarter 2007 combined ratio of 85.4 percent (90.5 percent before the LPT). The combined ratio improvement was due primarily to lower losses and loss adjustment expense (LAE) partially offset by an increase in the underwriting and other operating expense ratio resulting from lower net earned premiums.
First quarter underwriting and other operating expense decreased to $21.7 million in 2008 from $23.3 million in 2007 primarily due to reduced consulting fees related to the company’s conversion in the first quarter of last year, a decline in premium taxes and lower general operating expenses.
Commenting on the company’s performance, President and CEO Douglas D. Dirks said, “While our top line is lower first quarter 2008 over first quarter 2007, we continue to see solid increases in our in force policy count. Our growth in California remains strong and benefits from declining loss trends have continued into the first quarter of this year. We are also making progress in completing our acquisition of AmCOMP Inc., which will provide us with immediate growth in premium and a more diversified earnings base.”
For more information, visit the “Investors” link at, http://www.employers.com/.
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