Employers Holdings, Inc. Reports Significant Growth in 2023, Poised for a Strong 2024
Premium writings and investment income drive substantial revenue growth for Employers Holdings in 2023.
Employers Holdings, Inc. (NYSE:) concluded 2023 with impressive financial results, highlighted by substantial growth in the fourth quarter. The company's success can be credited to increases in premium writings and investment income, which fueled significant revenue growth. Notably, Employers Holdings experienced a 20% rise in new business and a 9% increase in renewal business, contributing to a robust performance.
The investment income for Employers Holdings also saw a remarkable 19% increase over the year, showcasing the company's adeptness in capitalizing on market opportunities. Additionally, the strategy deployed by the company resulted in a commendable 38% rise in ex-LPT (loss portfolio transfer) underwriting income for the fourth quarter and an astounding 128% increase for the year.
Furthermore, adjusted net income grew by 5% and 26% for the quarter and full year, respectively, underlining the company's strong financial performance. To reward shareholders, Employers Holdings returned a staggering $107 million through share repurchases and dividends. The successful integration of Cerity's operations further enhanced underwriting expense savings and facilitated a switch back to single segment reporting.
The key highlights of Employers Holdings' stellar performance in 2023 include significant revenue growth driven by premium writings and investment income. In addition to the impressive 20% increase in new business, the company also witnessed a substantial 19% increase in net investment income during the year. Moreover, ex-LPT underwriting income and adjusted net income experienced notable surges, further solidifying Employers Holdings' position in the market.
Looking ahead, Employers Holdings is poised for a strong 2024, fueled by the unprecedented growth witnessed in policies in force, which reached an all-time high. The company plans to enhance customer experience by providing more self-service options to policyholders, agents, and injured workers. Additionally, Employers Holdings will continue its appetite expansion efforts to drive profitable growth.
Employers Holdings maintains a strong capital position, which will support future growth and technology initiatives. Despite a slight decrease in net investment income for the quarter due to a lower invested asset balance, the company's overall financial outlook remains optimistic. The bullish indicators, such as a 12% increase in gross written premium for both the fourth quarter and full year, a 16% increase in book value per share after considering dividends declared, and recognized favorable prior year loss reserve development, offset any concerns.
In conclusion, Employers Holdings, Inc. demonstrated robust financial performance in 2023, positioning itself for a promising year ahead in 2024. The company's strategic initiatives and solid capital management approach have contributed to its success and will continue to drive growth in the future.
(Disclaimer: This article is based on publicly available information and does not constitute financial advice. It is for informational purposes only).
Analyst comment
This news can be evaluated as positive for Employers Holdings, Inc. The company experienced substantial growth in the fourth quarter, with increases in premium writings and investment income. They saw a 20% rise in new business, a 9% increase in renewal business, and consistent audit premium recognition. Investment income also had a significant 19% increase for the year. Ex-LPT underwriting income and adjusted net income saw substantial increases. Employers Holdings returned $107 million to shareholders and successfully integrated Cerity’s operations. Policies in force reached an all-time high, setting the company up for a strong 2024. Despite a slight decrease in net investment income for the quarter, bullish indicators such as an increase in gross written premium, book value per share, and prior year loss reserve development counterbalanced the concern. Overall, the analyst predicts that the market for Employers Holdings, Inc. will continue to thrive and grow in the upcoming year, supported by strategic initiatives and a strong capital management approach.
