Oppenheimer Discusses Employers Holdings Earnings (EIG)

Oppenheimer & Co. is out with a research report on Employers Holdings, Inc. EIG, after it reported earnings. It has a Perform rating on shares. In the research note, Oppenheimer writes, "EIG reported third quarter operating EPS of $0.13 compared to our estimate of $0.23 and consensus of $0.25. Net written premiums were about 7.5% above estimates, but declined by 2% year over year. The accident year loss ratio was in line with our estimate of 65% and the company reported no favorable development in the quarter (OPCO $3.3M). Although the company is making solid progress on reducing the expense ratio, EIG's accident year combined ratio remains well over 100%. We suspect given EIG's commentary, improvement in the company's combined ratio will be a result of increased leverage of its current expense base or further expense reductions. We remain at Perform." Shares of EIG lost 2 cents yesterday to close at $16.39.