EIG Earnings Prediction
The chart below shows how EIG performed 10 days before and after its earnings report, based on data from the past quarters. Typically, EIG sees a -1.47% change in stock price 10 days leading up to the earnings, and a +2.58% change 10 days following the report. On the earnings day itself, the stock moves by +0.51%. This data can give you a slight idea of what to expect for the next quarter's release.
EIG Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
216.60M
-4.03%
-3.30%
Gross Margin
--
--
--
Operating Margin
15.97%
-38.60%
-2.50%
Net Margin
13.07%
-35.30%
-3.40%
EPS
1.14
-35.59%
-5.79%
No Data Available
EIG Earnings Analysis
Employers Holdings Inc Corporation (EIG.N) Earnings Conference Call
Positive
Record Premium and Investment Income: The company achieved the highest levels of written and earned premium, enforced premium, policies, and net investment income in its history for the year.
Premium Growth Analysis: Gross written premium excluding final audit premiums increased by 3% in Q4 and 6% for the full year, with all major distribution channels contributing to growth.
Net Investment Income Increase: Net investment income for the fourth quarter was $27 million, an increase from $26 million a year ago, driven by higher bond yields.
Loss Reserve Development Impact: The company recognized $9 million of net favorable prior year loss reserve development from its voluntary business in Q4, contributing to a combined ratio of 95.5%.
Expense Ratio Improvement: The underwriting and general administrative expense ratio improved to 23.2% in Q4 from 24.6% a year ago, reflecting cost savings from the Cerity integration plan.
Book Value Increase: The book value per share increased by 10.6% during 2024, positively impacted by net gains from equity securities and other investments.
Quarterly Dividend Declaration: The board declared a regular quarterly dividend of $0.30 per share for Q1 2025, payable on March 19, 2025.
Financial Strength Upgrade: AM Best upgraded the financial strength ratings of the company's insurance subsidiaries to A, reinforcing its reliability and quality of coverage.
Negative
Premium Stability Challenges: The company experienced lower final audit premiums and endorsements, which offset growth in new and renewal premiums, indicating potential challenges in premium stability.
Claims Experience Deterioration: The loss and LAE ratios increased significantly, with fourth quarter and full year ratios at 59.5% and 61.6% respectively, compared to 50.2% and 57.2% a year ago, suggesting worsening claims experience.
Loss Reserve Development Decline: Favorable prior year loss reserve development decreased, with only $9 million recognized in the fourth quarter compared to $25 million a year ago, indicating a decline in reserve strength.
Loss Ratio Outlook: The company expects to increase its 2025 accident year loss and LAE ratio for voluntary business, reflecting a cautious outlook in a competitive rate environment for workers' compensation.
Investment Performance Decline: Net realized and unrealized losses on investments were less than $1 million for the quarter, down from net gains of $12 million a year ago, indicating a decline in investment performance.
Financing Reliance and Liquidity Concerns: The repayment of Federal Home Loan Bank advances led to lower interest and financing expenses, but this also suggests a reliance on such financing in the past, raising concerns about future liquidity.
Commission Expense Ratios Impact: The company’s commission expense ratios were impacted by a nonrecurring adjustment, which may not be sustainable in the long term, raising questions about future expense management.
EIG FAQs
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EIG Earning Call Sentiment
Employers Holdings, Inc. (NYSE:EIG) Q4 2024 Earnings Call Transcript
EIG.N
1.97%Positive
The earnings call presents a mixed picture. While net income growth and share repurchases are positive, the increase in loss ratios and lack of guidance are concerning. The Q&A revealed management's cautious stance on future projections, which may lead to uncertainty. Given the company's market cap, the stock price is likely to remain stable, resulting in a neutral sentiment.
