Reno, Nevada--August 7, 2008--Employers Holdings, Inc. (“EHI” or the “Company”) (NYSE:EIG) today reported results for the second quarter ended June 30, 2008.
Second quarter consolidated net income was $27.4 million or $0.55 per share in 2008 compared to $30.8 million or $0.58 per share in the second quarter of 2007. Net income includes amortization of the deferred reinsurance gain related to the Loss Portfolio Transfer (“LPT”) Agreement. Consolidated net income before the impact of the LPT (the Company’s non-GAAP measure described below) was $22.8 million or $0.46 per share in the second quarter of 2008 and $26.2 million or $0.49 per share in the second quarter of 2007.
Net income for the six months ended June 30, 2008 was $52.9 million or $1.07 per share compared with $58.6 million or $1.11 per pro forma share for the six months ended June 30, 2007. For the first six months of 2008, net income before the impact of the LPT was $43.5 million or $0.88 per share and $49.5 million or $0.94 per pro forma share for the same period in 2007.
Commenting on the Company’s performance, President and Chief Executive Officer Douglas D. Dirks said, “Trends reported in the first quarter of 2008 continue as our policy count growth remains strong and we recognize benefits from declining losses in prior years. Our acquisition of AmCOMP Incorporated has been delayed and the required approvals from AmCOMP shareholders and the Florida Office of Insurance Regulation remain outstanding. EMPLOYERS is committed to the acquisition, but we will continue to act in the best long-term interests of the Company and our shareholders.”
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All forward-looking statements made in this news release reflect EHI’s current views with respect to future events, business transactions and business performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties, which may cause actual results to differ materially from those set forth in these statements. The business of EHI could be affected by competition, pricing and policy term trends, the levels of new and renewal business achieved, market acceptance, changes in demand, the frequency and severity of catastrophic events, actual loss experience, uncertainties in the loss reserving and claims settlement process, new theories of liability, judicial, legislative, regulatory and other governmental developments, litigation tactics and developments, investigation developments, the amount and timing of reinsurance recoverables, credit developments among reinsurers, changes in the cost or availability of reinsurance, market developments, rating agency action, possible terrorism or the outbreak and effects of war and economic, political, regulatory, insurance and reinsurance business conditions, relations with and performance of employee agents, as well as management’s response to these factors, and other factors identified in EHI’s filings with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made.
The SEC filings for EHI can be accessed through the “Investors” link on the Company’s website, www.employers.com, or through the SEC's EDGAR Database at www.sec.gov (EHI EDGAR CIK No. 0001379041). EHI assumes no obligation to update this release or the information contained herein, which speaks as of the date issued.
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Copyright © 2008 EMPLOYERS. All rights reserved. EMPLOYERS and America’s small business insurance specialist. are registered trademarks of Employers Insurance Company of Nevada. Workers’ compensation insurance and services are offered through Employers Insurance Company of Nevada and Employers Compensation Insurance Company.
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. The company, through its subsidiaries, operates in 12 states from 12 office locations. The company’s insurance subsidiaries, Employers Insurance Company of Nevada and Employers Compensation Insurance Company, are rated A- (Excellent) by the A.M. Best Company.
CONTACT:
Media – Trish White, Director, Corporate Communications, (775) 327-2636
Analysts – Vicki Erickson, Vice President, Investor Relations, (775) 327-2794
