Reno, Nev.-based Employers Holdings Inc. reported results for the second quarter ended June 30, 2008.
Second quarter consolidated net income was $27.4 million or $0.55 per share in 2008 compared to $30.8 million or $0.58 per share in the second quarter of 2007. Net income includes amortization of the deferred reinsurance gain related to the Loss Portfolio Transfer (“LPT”) Agreement. Consolidated net income before the impact of the LPT was $22.8 million or $0.46 per share in the second quarter of 2008 and $26.2 million or $0.49 per share in the second quarter of 2007.
Net income for the six months ended June 30, 2008 was $52.9 million or $1.07 per share compared with $58.6 million or $1.11 per pro forma share for the six months ended June 30, 2007. For the first six months of 2008, net income before the impact of the LPT was $43.5 million or $0.88 per share and $49.5 million or $0.94 per pro forma share for the same period in 2007.
Second quarter net premiums earned declined $10.3 million or 12.2 percent to $73.8 million in 2008 from $84.1 million in 2007. Net premiums earned for the six months ended June 30, 2008, were $149.7 million compared to $173.9 million for the same period in 2007. The company said declines in premium were largely due to rate decreases resulting from previously enacted reforms in California, increased competition and changes in economic and business conditions in some of the company’s operating areas. These impacts were partially offset by an overall in force policy count increase of 10.6 percent to 35,299 at June 30, 2008 from 31,902 at June 30, 2007, Employers Holdings said.
The second quarter 2008 combined ratio of 77 percent (83.2 percent before the LPT) increased 1.8 percentage points from the second quarter 2007 combined ratio of 75.2 percent (80.6 percent before the LPT). For the first six months in 2008, the combined ratio improved 0.4 percentage points to 80 percent (86.3 percent before the LPT) from 80.4 percent (85.7 percent before the LPT) for the same period in 2007.
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