Employers Holdings, Inc (EIG) has reported 7.76 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $22.60 million, or $0.69 a share in the quarter, compared with $24.50 million, or $0.75 a share for the same period last year.
Revenue during the quarter dropped 3.36 percent to $192.80 million from $199.50 million in the previous year period. Net premium earned for the quarter declined 3.18 percent or $5.70 million to $173.30 million. During the quarter, the company has written premium worth $163 million on net basis, down 2.10 percent or $3.50 million.
Total expenses come down marginally
Benefits, losses and expenses for the quarter were at $162.40 million, or 93.71 percent of premium earned from $169.10 million or 94.47 percent of premium earned in the last year period. Operating profit was unchanged at $30.40 million for the quarter, compared with the previous year period.
Net investment income was at $17.90 million for the quarter, down 3.24 percent or $0.60 million from year-ago period. The company has recorded a gain on investments of $1.60 million in the quarter compared with a gain of $2 million for the previous year period.
Chief Executive Officer Douglas Dirks commented on the results:“Our third quarter combined ratio before the impact of the LPT of 95.2% is one of the best combined ratios in the Company’s history. We delivered strong results in the quarter which reflect improved underwriting performance, strong policy retention and an increase in premium from new business written. Gross and net premium written declined due to a $5.0 million decrease in final audit premium relative to the third quarter of last year. The change in final audit premium stems from the higher than normal final audit premium in the third quarter of 2015 based on increased payrolls observed and a change in the final audit process that encouraged a greater level of compliance.
Operating cash flow improves marginally
Employers Holdings, Inc has generated cash of $97 million from operating activities during the nine month period, up 3.19 percent or $3 million, when compared with the last year period.
The company has spent $49.10 million cash to meet investing activities during the nine month period as against cash outgo of $139.10 million in the last year period.
The company has spent $20.40 million cash to carry out financing activities during the nine month period as against cash outgo of $2.30 million in the last year period.
Cash and cash equivalents stood at $84.10 million as on Sep. 30, 2016, up 49.64 percent or $27.90 million from $56.20 million on Sep. 30, 2015.
Assets grow, liabilities fall
Total assets were almost stable over the past one year at $3,824.30 million on Sep. 30, 2016. On the other hand, total liabilities were at $2,974.20 million as on Sep. 30, 2016, down 3.44 percent or $106.10 million from year-ago.
Return on assets stood at 0.60 percent in the quarter, down 0.06 from 0.66 percent in the last year period. At the same time, return on equity was at 2.66 percent in the quarter, down 0.72 from 3.37 percent in the last year period.
Investments move up marginally
Investments stood at $2,582.40 million as on Sep. 30, 2016, up 1.76 percent or $44.70 million from year-ago. Meanwhile, yield on investments went down 4 basis points to 0.69 percent in the quarter.
Meanwhile, reinsurance recoverables moved down 6.60 percent or $42.40 million over the year to $599.80 million on Sep. 30, 2016.
Total debt was at $32 million as on Sep. 30, 2016, down 65.22 percent or $60 million from year-ago. Shareholders equity stood at $850.10 million as on Sep. 30, 2016, up 17.09 percent or $124.10 million from year-ago. As a result, debt to equity ratio went down 9 basis points to 0.04 percent in the quarter from 0.13 percent in the last year period.
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