May 8, 2012
Employers Holdings, Inc. Reports First Quarter 2012 Earnings and Declares Second Quarter 2012 Dividend
Reno, Nevada-May 8, 2012-Employers Holdings, Inc. (“EHI” or the “Company”) (NYSE:EIG) today reported first quarter 2012 net income of $6.2 million or $0.19 per diluted share. Net income in the first quarter of 2011 was $8.3 million or $0.21 per diluted share. As expected, during the first quarter of 2012, we recorded a $3 million or $0.09 per diluted share addition to underwriting and other operating expense as a result of our prospective adoption of the Financial Accounting Standards Board's change in accounting methods for deferred acquisition costs (DAC). This change in accounting method, which became effective in 2012, alters the definition of acquisition costs which may be capitalized and lowered our reported net income as a result of having to expense certain costs that were previously capitalized. Adjusted for the change in DAC accounting, non-GAAP net income was $9.7 million or $0.30 per diluted share, an increase of $0.09 per share compared with last year's first quarter. We continue to estimate that our underwriting and other operating expenses in 2012 will increase further by approximately $4 million, in addition to the first quarter expense of $3 million, as a result of the new DAC accounting, with approximately 31% of the total $7 million to be recorded in Q2, 16% to be recorded in Q3 and the remaining 6% to be recorded in Q4 ...
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CONTACT: Media: Ty Vukelich, (775) 327-2677. Analysts: Vicki Erickson Mills, (775) 327-2794. Copyright © 2012 EMPLOYERS. All rights reserved. EMPLOYERS® and America's small business insurance specialist. ® are registered trademarks of Employers Insurance Company of Nevada. Employers Holdings, Inc. is a holding company with subsidiaries that are specialty providers of workers' compensation insurance and services focused on select, small businesses engaged in low to medium hazard industries. Insurance subsidiaries include Employers Insurance Company of Nevada, Employers Compensation Insurance Company, Employers Preferred Insurance Company, and Employers Assurance Company, all rated A- (Excellent) by A.M. Best Company. Additional information can be found at: http://www.employers.com .