Employers Holdings Inc. headquartered in Reno, Nev., reported first quarter 2009 net income of $20.9 million or $0.43 per share compared with $25.5 million or $0.51 per share in the first quarter of 2008, a decrease of $4.6 million or $0.08 per share. Net income includes amortization of the deferred reinsurance gain related to the Loss Portfolio Transfer Agreement. Consolidated net income before the impact of the LPT was $16.5 million or $0.34 per share in the first quarter of 2009 compared with $20.7 million or $0.42 per share in the first quarter of 2008.
As of March 31, 2009, the company had a combined ratio of 99.8 percent (103.6 percent before the LPT), an increase from the first quarter 2008 combined ratio of 83 percent (89.3 percent before the
LPT). Acquired operations comprised 11.7 percentage points of the increase.
“Our expense ratio at 46.7% remains high due to declines in
premium largely from rate decreases, economic contraction, competition and our underwriting discipline. Restructuring and integration costs in the quarter added 3.4 percentage points to the expense ratio. Recently, we increased pure premium rates in
California in line with our expected loss costs and LAE. We are making excellent progress on the integration of our acquired operations. We are implementing expense controls and reducing staff, as previously announced, although the impacts of these
actions won’t be fully realized until year-end,” said Douglas Dirks, president and CEO.
To view the full earnings report, visit http://www.employers.com/documents/EARNINGS_Q1_2009_Release.pdf.
Was this article valuable?
Here are more articles you may enjoy.