Employers Holdings Q3 net premiums earned falls
Overview
Specialty workers' comp insurer's Q3 revenue and net premiums earned fell yr/yr
Net income improved to $11.6 mln from a loss a year ago
Company returned $24.4 mln to shareholders via buybacks and dividends
Outlook
Company plans to launch large deductible workers’ compensation product next year
Company expects higher interest rates to benefit investment income going forward
Company expects new product offerings to drive additional profitable growth
Result Drivers
RESERVE STRENGTHENING ABSENCE - Co said net income improved mainly due to not recording reserve strengthening or prior-year loss development in Q3
PRICING AND UNDERWRITING ACTIONS - Co attributed premium declines to deliberate pricing and underwriting actions prioritizing profitability
INVESTMENT INCOME - Co said higher net investment income was driven by increased yields and private equity returns
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | $189.30 mln | ||
Q3 EPS | $0.64 | ||
Q3 Net Income | $11.60 mln | ||
Q3 Pretax Profit | $14.50 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the property & casualty insurance peer group is "hold"
Wall Street's median 12-month price target for Employers Holdings, Inc. is $49.00, about 5.7% below its October 27 closing price of $51.94
The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 21 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)