Employers Holdings reports Q4 EPS 77c, consensus 64c
The company's adjusted net income for the fourth quarter of 2018 increased $8.4 million year-over-year. This increase primarily reflects: (i) strong underwriting results highlighted by a 62.5% current accident year loss ratio and $25.4 million of favorable prior year loss reserve development; and (ii) a reduction in income taxes as a result of U.S. corporate tax reform enacted in the fourth quarter of 2017. The company's net income and net income before the impact of the LPT for the fourth quarter of 2018 decreased by $5.7 million and $5.1 million, respectively, year-over-year. These fourth quarter 2018 net income measures were each favorably impacted by the items previously mentioned, but were also unfavorably impacted by $27.4 million of after tax unrealized investment losses relating to the Company's equity securities. Prior to January 1, 2018, the Company's unrealized gains and losses on equity securities were not a component of its net income or net income before the impact of the LPT. The company's book value per share of $31.08 and book value per share including the Deferred Gain of $35.64 increased by 9.7% and 6.9% for the year, respectively, each computed after taking into account dividends declared during 2018.