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Employers’ Q3 CR weakens 2.9 points to 98.1%, gross premiums up 16%

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Workers’ compensation specialist Employers increased its combined ratio by 2.9 points in the third quarter following an 18% increase in losses and loss-adjustment expenses and no prior-year loss reserve development.

The Reno, Nevada-based company reported operating income of $0.41 a share, lower than the $0.48 in earnings a year ago.

Underwriting income for its employers segment totaled $2.8mn, down from the $6.9mn gain reported a year ago.

Employers reported $91.2mn in losses and loss-adjustment expenses at quarter end, marking an increase of 18% from last year.

The company did not recognize any prior-year loss reserve development this quarter, versus the $14.8mn of net favorable development reported in the prior-year period.

Net investment income held firm at $18.4mn.

Employers said it finished the first quarter with a record number of policies in force – 109,870, up 6% since year end.

Gross premiums written were $152.3mn, an increase of 16%, driven by growth in new policies written. The company earned $147.1mn in net premiums, an increase of 2% year on year.

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Employers CEO Katherine Antonello said: “We closed the quarter with yet another record number of policies in-force, and our written premiums, which were up 16% year over year, were the highest they have been since the first quarter of 2020.

“To recognize the positive shift we are experiencing in audits, we increased our final audit accruals by $4.7mn during the quarter. In addition, October premium writings are off to a very strong start, a sign small businesses are beginning to thrive and are actively shopping for workers' compensation coverage.”

As part of its release, Employers noted that its underwriting and administrative expenses of $37.4mn were down 19% from a year ago.

The decrease was primarily a result of targeted expense savings, mainly in the areas of compensation and professional fees, the company said.

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