Employers Holdings Intrinsic Stock Value – EMPLOYERS HOLDINGS Reports Q4 2022 Earnings Results on February 16, 2023

Earnings Overview

On February 16, 2023, EMPLOYERS HOLDINGS ($NYSE:EIG) announced their financial results for the fourth quarter of fiscal year 2022 which ended on December 31, 2022. Total revenue for the quarter was USD 47.2 million, a decrease of 13.9% compared to the same period in the previous year. However, the reported net income was USD 221.8 million, an increase of 11.0%.

Transcripts Simplified

This increase was primarily attributed to favorable prior year loss reserve development of $23 million, higher net investment income, and unrealized gains from equity and fixed maturity securities. Underwriting and general and administrative expenses were $47 million versus $39 million a year ago due to higher premiums and taxes. The effective tax rate was 16%, down from 20%.

The Employers segment had underwriting income of $24 million versus $28 million a year ago, while the Cerity segment had an underwriting loss of $3 million for the quarter. During the quarter, the company repurchased $1.7 million of its common stock at an average price of $42.15 per share.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Employers Holdings. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Employers Holdings. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Employers Holdings. More…

Key Ratios Snapshot

Some of the financial key ratios for Employers Holdings are shown below. More…

Price History

On Thursday, February 16, 2023, EMPLOYERS HOLDINGS, a holding company, reported their fourth quarter of 2022 financial earnings results. The stock opened at $42.9 and closed at $43.0, down by 0.6% from the previous closing price of 43.3. The company reported improved gross margins, a decrease in operating expenses, and an increase in net income for the quarter compared to the same period last year.

Overall, the company’s financial performance during the fourth quarter of 2022 was solid considering the current economic conditions. Despite the stock trading slightly lower due to market conditions, investors appear satisfied with the results and remain cautiously optimistic about the company’s outlook for the rest of the year. Live Quote…

Analysis – Employers Holdings Intrinsic Stock Value

At GoodWhale, we conducted an analysis of the wellbeing of EMPLOYERS HOLDINGS. Through our proprietary Valuation Line, we were able to determine a fair value of EMPLOYERS HOLDINGS share at $37.4. Despite this fair value, EMPLOYERS HOLDINGS stock is currently trading at $43.0, representing a 15.0% overvaluation. This indicates that now may not be the best time to invest in EMPLOYERS HOLDINGS. More…

Peers

The four companies mentioned are all in the business of providing financial protection to employers in the event of employee injuries. They are all large, well-established companies with strong reputations. Employers Holdings is the smallest of the four, but it is growing rapidly and is increasingly seen as a serious competitor by its larger rivals.

– MGIC Investment Corp ($NYSE:MTG)

MGIC Investment Corporation, through its subsidiaries, provides private mortgage insurance, and ancillary services to lenders and government sponsored entities in the United States. The company operates through two segments, Primary Mortgage Insurance, and Ancillary Services and Other. The Primary Mortgage Insurance segment provides mortgage insurance on first-lien mortgage loans.

– Brown & Brown Inc ($NYSE:BRO)

Brown & Brown, Inc., through its subsidiaries, operates as an insurance and reinsurance intermediary that markets and sells insurance products and services in the United States and internationally. The company operates in two segments, Retail and Wholesale. The Retail segment offers a range of insurance products and services, including commercial property and casualty, workers’ compensation, surety, general liability, professional liability, automobile, and homeowners insurance products, as well as risk management consulting services. This segment also provides employee benefits products and services, including group health, workers’ compensation, property and casualty, and executive benefit products. The Wholesale segment offers excess and surplus lines, program business, and specialty lines of property and casualty insurance products, as well as professional liability insurance products. Brown & Brown, Inc. was founded in 1939 and is headquartered in Daytona Beach, Florida.

– Protector Forsikring ASA ($LTS:0JXF)

Protector Forsikring ASA is a Norway-based company engaged in the insurance industry. The Company offers a range of personal and corporate insurance products, including car, home, boat, travel, health, and life insurance.

Summary

EMPLOYERS HOLDINGS reported fourth quarter fiscal year 2022 (FY2022) earnings on February 16, 2023. Total revenue was down 13.9% year-over-year, but the company was able to report an 11.0% increase in net income. Investors should consider the impact of the revenue decline on the company’s bottom line, as well as the potential for future revenue growth.

Additionally, investors should analyze the performance of EMPLOYERS HOLDINGS relative to its peers, both in terms of revenue and profitability. Finally, investors should factor in the company’s changing debt levels and examine whether or not the company is making prudent decisions regarding its capital structure.