HENDERSON, Nev. - Employers Holdings, Inc. (NYSE:EIG), specializing in workers' compensation insurance, disclosed its financial outcomes for the first quarter ending March 31, 2024, revealing notable year-over-year improvements in key performance metrics.
The company reported a 29% rise in net income per diluted share to $1.11, up from $0.86 in the first quarter of 2023. Adjusted net income per diluted share also saw a 12% increase from $0.60 to $0.67.
The company's gross premiums written during the quarter amounted to $210.9 million, marking an 8% increase compared to the same period last year. Net premiums earned followed suit, climbing 7% to $184.9 million. Despite these gains, net investment income fell slightly by $0.8 million to $26.8 million.
Employers Holdings ended the quarter with a record 127,484 policies in force, a 4% year-over-year increase. The company also returned $12.1 million to shareholders through share repurchases and regular quarterly dividends.
CEO Katherine Antonello attributed the revenue growth to higher premiums and steady net investment income, alongside moderate net investment gains. She highlighted a slight uptick in the current accident year loss and LAE ratio on voluntary business to 64.0%, aligning with 2022's figures.
Antonello emphasized the company's focus on cost reduction, noting a decrease in the underwriting and general and administrative expense ratio from 25.7% to 24.8%, and expressed confidence in further reductions throughout the year.
The board of directors declared a regular quarterly dividend of $0.30 per share, payable on May 22, 2024, to stockholders of record as of May 8, 2024. This represents a 7% increase from the previous dividend.
In terms of stock repurchases, Employers Holdings bought back 123,073 shares at an average price of $39.45 each, with a remaining authorization of $16.2 million for future repurchases.
The company will host a conference call on Friday, April 26, 2024, to discuss these results in detail.
These financial highlights are based on a press release statement, and the information should be read in conjunction with the Financial Supplement available on the company's website. The company's filings with the SEC can be accessed through the Investors link on their website or directly from the SEC's EDGAR Database.
The press release includes forward-looking statements, which are not guarantees of future performance and are subject to risks and uncertainties that could cause actual results to differ materially from those projected.
InvestingPro Insights
As Employers Holdings, Inc. (NYSE:EIG) continues to showcase resilience and growth in the workers' compensation insurance sector, insights from InvestingPro provide a deeper understanding of the company's financial health and future prospects.
With a market capitalization of $1.1 billion and a P/E ratio that has adjusted down to 8.67 from 9.65, the company presents an intriguing valuation for potential investors. The revenue growth of 19.26% over the last twelve months as of Q1 2024 underlines the company's ability to expand its financial base in a competitive market.
InvestingPro Tips highlight that Employers Holdings has a perfect Piotroski Score of 9, suggesting a strong financial position. Moreover, the company's management has been actively buying back shares, which is often a sign of confidence in the company's future and can be indicative of underpricing. These share repurchases align with the company's latest report of buying back 123,073 shares, further supporting shareholder value.
Moreover, Employers Holdings has maintained its dividend payments for 18 consecutive years, demonstrating a commitment to returning value to shareholders. The recent 7% increase in the quarterly dividend to $0.30 per share is a testament to this dedication. It is worth noting that the company's dividend yield stands at 2.49%, coupled with a dividend growth of 7.69% over the last twelve months, rewarding long-term investors with a steady income stream.
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