The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Mark Hughes - Truist Securities - Analyst
: Thank you. Good morning.
Question: Mark Hughes - Truist Securities - Analyst
: Cathy, can you, give us a sense of the magnitude of the change in the loss pick for a current accident year and then you've been holding steady at
64 for a while. And a lot of the same dynamics seemingly have been at play, the Lower loss costs, the medical inflation, et cetera. Why now? What
do you see in the marketplace that, motivates you to increase the loss pay.
Question: Mark Hughes - Truist Securities - Analyst
: Understood, is one to think the, 70 basis point uptick in 2024. Is that a good, starting point to think about 2025?
Question: Mark Hughes - Truist Securities - Analyst
: To be will it fully offset, do you think, or just partially offset or no specifics at this point.
Question: Mark Hughes - Truist Securities - Analyst
: And then you said the higher actuarial trend selection. That phrase carries a lot of weight. Can you maybe say what trends are driving that frequency,
severity, medical?
Question: Mark Hughes - Truist Securities - Analyst
: The wage inflation that you might have seen in earlier years, I think ended up being beneficial, since medical inflation was benign it was essentially
a kind of a, won't say hidden but an extra amount of premium that might have offset any kind of Inflation and any trends around severity. I guess
maybe the fact that you're not seeing as much wage inflation is that then put a little more pressure on the current accident year is that? Does that
make sense or is it off base?
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FEBRUARY 21, 2025 / 4:00PM, EIG.N - Q4 2024 Employers Holdings Inc Earnings Call
Question: Mark Hughes - Truist Securities - Analyst
: And then maybe just one final question you've been talking about expansion in your appetite. That's helped drive the top line. How should we
think about that going into 2025?
Question: Mark Hughes - Truist Securities - Analyst
: Thank you very much.
Question: Robert Farnam - Janney Montgomery Scott LLC - Analyst
: Hi there, good morning, Mike, a question for you. Th -- it looks like you may be transitioned a bunch of your investments into mortgage-backed
securities during the quarter. I just kind of want to know what your thought process was there.
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FEBRUARY 21, 2025 / 4:00PM, EIG.N - Q4 2024 Employers Holdings Inc Earnings Call
Question: Robert Farnam - Janney Montgomery Scott LLC - Analyst
: So the, -- so it sounds like the differential between your kind of your book yield and your new money yield is expanded or it should expand the
next year is that the right way to think about that?
Question: Robert Farnam - Janney Montgomery Scott LLC - Analyst
: Okay, alright. And my second question, I'm not sure if you're going to have the data available, but I wanted to talk about kind of the increase in the
higher hazard, groups that kind of percentage of enforce. Now for years that was kind of low single digits. I think in 2022 it went to the higher thing
of digits in 2023 it may have been in the mid-teens.
And I just kind of want to have an idea of where you see that maybe in 2024. I know that probably will come in a 10-K, but I didn't know if you
wanted to talk about that right now. And my feeling is what are the claims trends for the higher hazard business? Is it a longer tail? Is it just kind of
maybe describe what types of risks you're taking on the books there and how that might impact profitability.
Question: Robert Farnam - Janney Montgomery Scott LLC - Analyst
: And that was kind of the just the question that I know you've always been noticed kind of the low hazard, workers' comp writers. So as you continue
to write more in the higher hazard groups, it might change if that thought might change your actual kind of company identity there, but it doesn't
sound like it's still a huge portion of your overall, target profile.
Question: Robert Farnam - Janney Montgomery Scott LLC - Analyst
: Okay, all right, thanks. That's a good color. One last question for you. Just the $9 million or so of favorable development, was that related to any
particular accident years or is it, old stuff or new stuff or what?
Question: Robert Farnam - Janney Montgomery Scott LLC - Analyst
: Okay, very good, thanks for the answers.
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