Employers Holdings, Inc. recently held its third quarter 2024 earnings call, and the call revealed some significant trends and insights into the company's financial health and growth prospects. Here are the key takeaways from the call:

Financial Performance

Employers Holdings reported a strong third quarter, with net income per share increasing by 124% and adjusted net income per share increasing by 19%. The company's earnings were driven by higher earned premiums, strong net investment income, and continued net investment gains. The company's book value per share metrics also reached all-time highs due to the sharp decrease in interest rates experienced during the quarter.

Growth Initiatives

The company's appetite expansion strategy has been a significant contributor to the company's growth, with a 7% increase in premiums year-to-date. The company is continuing to look for new class codes that fit within its appetite and has not put any intention to halt this strategy. However, the company is also looking to pull back on underperforming class codes.

Economic Impact

The call highlighted some high-level economic trends that may have contributed to the lull in audit premiums over the summer. The labor market saw significant slowdowns, which may have impacted the company's premium growth. However, the company's growth remains widespread, with a notable increase in policies in force during the third quarter.

Looking Ahead

The company's outlook for the future remains positive, with a focus on continuing to grow profitably and expanding its appetite. The company is also actively adjusting prices to what it feels is appropriate for its book of business. However, there is some uncertainty around the impact of loss costs, as filings for 2025 show downward pressure but may not fully reflect the future trends.

Investor Relations

Employers Holdings has been actively returning value to its stockholders, with $15.1 million returned through share repurchases and regular quarterly dividends. The company has remaining share repurchase authority of $39 million and recently declared a fourth quarter 2024 regular quarterly dividend of $0.30 per share.

Conclusion

Employers Holdings' third quarter earnings call provided a positive outlook for the company, with strong financial performance, ongoing growth initiatives, and a focus on returning value to stockholders. The company's appetite expansion strategy, coupled with its ability to adjust prices to its book of business, positions it well for continued growth and profitability. However, there are some uncertainties around future loss costs and the impact of economic trends on premium growth. Overall, the call suggests a company in a strong financial position with a clear growth strategy and a focus on delivering value to its stockholders.