Employers Holdings reports Q4 adjusted EPS $1.40, consensus $1.08

Reports Q4 revenue $225.7M, consensus $215.38M. CEO Katherine Antonello said: “We are thrilled with our fourth quarter and FY23 results. We closed the year with impressive revenue growth driven by strong increases in both premium writings and investment income. Our growth in written premium in 2023 resulted from a 20% increase in new business coupled with a 9% increase in renewal business, and solid audit premium recognition. Our investment performance also contributed nicely to our overall results and financial strength. Our 2023 net investment income of $106.5M represented a 19% increase over 2022, and we recognized $70.9M of after-tax unrealized gains from our fixed maturities, common stock and other investments. We maintained our current accident year loss and loss adjustment expense ratio on voluntary business at 63.3%, an improvement over the 64.0% we recorded throughout 2022. Our fourth quarter full reserve study led to the recognition of $24.6M of net favorable prior year loss reserve development from our voluntary business. Those actions, coupled with our continual focus on our underwriting expenses yielded an ex-LPT combined ratio of 88.8% for the fourth quarter, down from 91.7% a year ago, and 96.0% for the full year, down from 98.1% a year ago. Our active capital management efforts throughout 2023, which consisted of $77.1M of share repurchases and $29.4M of regular quarterly dividends, coupled with the greater economies of scale we are achieving, further complemented our success in 2023. Our strong balance sheet and abundant underwriting capital are highly supportive of our plans for continued growth and success.”