Solid First Quarter 2007 Earnings
Reno, Nevada -- May 14, 2007 -- Employers Holdings, Inc. (“EHI” or the “Company”) (NYSE:EIG) today reported that consolidated net income in the first quarter of 2007 increased 53.9% to $27.9 million from $18.1 million in the first quarter of 2006. Consolidated net income before the impact of the Loss Portfolio Transfer Agreement (“LPT”), the Company’s non-GAAP measure described below, increased 74.2% to $23.3 million from $13.4 million for the same periods.
The improvement in net income was largely due to a decrease in net losses and LAE, primarily in California, and favorable prior year pre-tax reserve development of $15.6 million in the first quarter of 2007 compared to $6.3 million in the first quarter of 2006.
Commenting on the Company’s performance, President and Chief Executive Officer Douglas D. Dirks said, “The quarter was in line with our expectations. While gross premiums written declined 17.7% quarter over quarter primarily due to rate decreases in California, this measure increased 5.5% from the fourth quarter of 2006. At the same time, losses have also continued to decline, reflecting our strong underwriting results and contributing to our solid increase in net income.”