Employers Holdings Inc Q2 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Mark Hughes - Truist Securities - Analyst : Thank you. Good morning. Hello. In California, does the workers comp reimbursement follow Medicare fee schedules in whole or in part?

Question: Mark Hughes - Truist Securities - Analyst : Yes. And under the circumstances, are we to think that the risk of future medical inflation is limited if fee schedule is there and many other states, I'm not exactly sure of the numbers, but if those are tied to those fee schedules, but I assume the government is going to be just as motivated to suppress those costs in the future as they had done in the past so should we think that medical inflation as less of a risk. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 01, 2024 / 3:00PM, EIG.N - Q2 2024 Employers Holdings Inc Earnings Call

Question: Mark Hughes - Truist Securities - Analyst : When we think about the top line outlook, audit premiums are still positive, not as positive as they've been. But we've talked about the kind of your expansion and appetite and you can throw in competition. Any kind of general commentary about what you expect when it comes to top line growth, keeping in mind all the different drivers?

Question: Mark Hughes - Truist Securities - Analyst : Kathy, can you hear me?

Question: Mark Hughes - Truist Securities - Analyst : Yes. No, it's probably me. I'm sure I did something wrong. I asked a question about the growth outlook. And you had just started to comment. So I'll say it again, competition, appetite, all that, kind of what should we be thinking about the top line?

Question: Mark Hughes - Truist Securities - Analyst : Yes, I can hear you. You're coming through loud and clear. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 01, 2024 / 3:00PM, EIG.N - Q2 2024 Employers Holdings Inc Earnings Call

Question: Mark Hughes - Truist Securities - Analyst : I appreciate that detail. And then 1 final one on the expenses, Mike, the step down sequentially this quarter, is pretty striking historically the progression from 1Q to 2Q is steady or up a little bit. What's the right run rate? First, was there anything unusual this quarter, one-timers, that sort of thing? And then is this kind of the starting base so to speak and apply whatever expense growth or seasonality, that sort of thing. But the $41.4 million is that a good number as a base starting base?

Question: Mark Hughes - Truist Securities - Analyst : And so if we think of last year, I think it was 25%. Is that the way to think about it, 1.5 point off of that is a good way to look at?

Question: Mark Hughes - Truist Securities - Analyst : Yes. Okay. I'll squeeze in 1 more, if I might. Kathy, competition, anything you would say about level of competition that people see more competitors more enthused about workers comp about the same. . REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 01, 2024 / 3:00PM, EIG.N - Q2 2024 Employers Holdings Inc Earnings Call

Question: Matt Carletti - Citizens JMP - Analyst : Hey, thanks. Good morning. Kathy, my first question kind of actually follows on from one of Mark's questions on Medicare. But my understanding is specific to Florida, there's somewhat significant fee schedule changes coming. I was hoping you could comment on kind of your ability to manage that, particularly in the context of Florida being more of an administered pricing state, so less, I guess, flexibility on how you can price each risk.

Question: Matt Carletti - Citizens JMP - Analyst : Okay. That's helpful. And just one for Mike, on reserves and the favorable reserve development in the quarter. Can you give us any color on trends by accident year or just kind of anything kind of peel back the onion a little bit on some of the movements behind the scenes that led to that good result.

Question: Robert Farnam - Janney Montgomery Scott - Analyst : Yes, hey there. Good morning. My primary question was on the performance of the book of expansion business. But Kathy, it sounds like that business is performing as expected or in line with your other business. I guess I'll focus on another question I had was, is there much of a difference between the performance of the book that you're getting from ADP versus your non ADP book?

Question: Robert Farnam - Janney Montgomery Scott - Analyst : Okay. Yes, that's it for me. Just again, I want to think more interested in the expansion book of business, but again, you kind of already entered that so.