Employers Holdings, Inc. (EIG) has reported 32.96 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $35.50 million in the quarter, compared with $26.70 million for the same period last year. Revenue during the quarter grew 4.72 percent to $193.20 million from $184.50 million in the previous year period. Net premium earned for the quarter declined 5.39 percent or $9.80 million to $172 million. During the quarter, the company has written premium worth $154.20 million on net basis, down 5.17 percent or $8.40 million.
Total expenses come downBenefits, losses and expenses for the quarter were at $144.80 million, or 84.19 percent of premium earned from $166.90 million or 91.80 percent of premium earned in the last year period. Operating income for the quarter was $48.40 million, compared with $17.60 million in the previous year period. Net investment income was at $19.10 million for the quarter, up 3.80 percent or $0.70 million from year-ago period. The company has recorded a gain on investments of $2.10 million in the quarter compared with a loss of $15.80 million for the previous year period.
chief executive officer Douglas Dirks commented on the results: "We are very pleased with our performance in the quarter and the year 2016. For these reporting periods, we delivered improved underwriting profitability demonstrated in historically low combined ratios. We increased net income and achieved historically high returns on equity while growing our book value per share by 8%. We lowered our provision rate for losses in the then current accident year and, in the fourth quarter, we released $16.9 million of reserves for prior accident years. Our strong fourth quarter and full year performance continues to reflect, in large part, the results of our ongoing initiatives to close claims on an accelerated basis and to grow and diversify across our markets using data-driven strategies.
Operating cash flow improvesEmployers Holdings, Inc. has generated cash of $122.80 million from operating activities during the year, up 5.50 percent or $6.40 million, when compared with the last year. The company has spent $88.60 million cash to meet investing activities during the year as against cash outgo of $101.20 million in the last year.
The company has spent $23.60 million cash to carry out financing activities during the year as against cash outgo of $62.20 million in the last year period.
Cash and cash equivalents stood at $67.20 million as on Dec. 31, 2016, up 18.73 percent or $10.60 million from $56.60 million on Dec. 31, 2015.
Assets grow, liabilities fall
Total assets were almost stable over the past one year at $3,773.40 million on Dec. 31, 2016. On the other hand, total liabilities were at $2,932.80 million as on Dec. 31, 2016, down 2.08 percent or $62.20 million from year-ago.
Return on assets stood at 0.95 percent in the quarter, up 0.22 from 0.73 percent in the last year period. At the same time, return on equity was at 4.22 percent in the quarter, up 0.71 from 3.51 percent in the last year period.
Investments move up marginally
Investments stood at $2,552.60 million as on Dec. 31, 2016, up 2.63 percent or $65.40 million from year-ago. Meanwhile, yield on investments went up 1 basis points to 0.75 percent in the quarter. Meanwhile, reinsurance recoverables moved down 7.42 percent or $47.20 million over the year to $588.70 million on Dec. 31, 2016.
Total debt was stable over the past one year at $32 million on Dec. 31, 2016. Shareholders equity stood at $840.60 million as on Dec. 31, 2016, up 10.49 percent or $79.80 million from year-ago. As a result, debt to equity ratio was almost stable at 0.04 percent in the quarter, when compared with the last year period.
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