Employers (EIG) Q4 2024 earnings summary

Executive summary

• Achieved record highs in written and earned premium, in-force premium, policies, and net investment income for 2024, with strong underwriting and investment performance and a conservative balance sheet.

• Maintained a decade-long streak of underwriting profit in a long-tailed line of business.

• Integration of Cerity® drove significant efficiencies and cost savings, supporting direct-to-consumer capabilities.

• Maintained a strong market position as the 19th largest workers' compensation writer, focusing on low- to medium-hazard small businesses.

• Recognized for trustworthiness and as a top employer by Newsweek and U.S. News & World Report in 2024.

Financial highlights

• Gross premiums written for 2024 were $776.3M, up from $767.7M; in-force premiums reached $768M (+8%).

• Net premiums earned for 2024 were $749.5M, up from $721.9M; Q4 net premiums earned were $190.2M, up 1%.

• Net investment income reached $107.0M in 2024, up from $106.5M in 2023; Q4 net investment income was $27M.

• Book value per share including deferred gain rose 10.6% to $47.35; adjusted book value per share up 9.8% to $50.71.

• Combined ratio excluding LPT was 95.5% in Q4 and 98.6% for the year.

Outlook and guidance

• Anticipates increasing the 2025 accident year loss and LAE ratio for voluntary business due to competitive rate environment and actuarial trends.

• Expense ratio improvements and digital transformation expected to partially offset higher loss and LAE ratio.

• Focus remains on disciplined underwriting, claims management, and expanding digital and alternative distribution channels.

• Appetite expansion into new industries (e.g., finish carpentry, home healthcare) is expected to drive future growth.

• No significant impact expected from California wildfires; less than 1% of policies and payroll exposure in affected areas.