Employers Holdings appoints new CFO

RENO - Employers Holdings, Inc. (NYSE: NYSE:EIG), a specialized provider of workers' compensation insurance, announced the appointment of Michael Pedraja as its new Executive Vice President and Chief Financial Officer (CFO). Pedraja is set to take on the role of CFO (Designate) starting February 3, 2025, and will officially assume the position on or around March 31, 2025, following the retirement of the current CFO, Michael Paquette, in March 2025.

With over three decades of experience in corporate finance within the insurance sector, Pedraja brings a wealth of knowledge to the table. His career includes significant roles such as Group CFO for Ariel Re Services and senior positions at The Allstate Corporation (NYSE:ALL), Aon (NYSE:AON) Securities, Barclays, and Credit Suisse. His educational background includes a bachelor's degree in accounting from DePaul University.

President and CEO of Employers Holdings, Katherine Antonello, expressed confidence in Pedraja's ability to drive strategic goals and optimize financial operations. As part of the executive leadership team, Pedraja will oversee the financial and investor relations functions of the company.

Most recently, Pedraja served at Ariel Re Services, where he contributed to the company's reinsurance underwriting success. In his statement, Pedraja expressed his commitment to furthering Employers Holdings' position as a specialist in small business insurance while focusing on profitable growth and shareholder value.

Employers Holdings has a legacy of over a century in providing coverage solutions tailored to small and mid-sized businesses in various industries. The company prides itself on its claims management, loss control, and risk management services, which contribute to creating safer work environments. Additionally, Employers Holdings offers digital-first insurance solutions through Cerity, a subsidiary focused on direct-to-consumer workers' compensation insurance.

The company operates across the United States, with insurance offered through several subsidiaries, all of which hold an A- (Excellent) rating from A.M. Best.

This announcement is based on a press release statement and does not constitute an endorsement of the claims made. The statements include forward-looking information that involves risks and uncertainties, and actual results may differ materially from those projected. The company's public filings with the Securities and Exchange Commission provide further details on such risks.

In other recent news, Employers Holdings, Inc. has reported a decade-high adjusted net income for the second quarter of 2024, driven primarily by an increase in both new and renewal premiums, strong net investment income, and gains. There was a significant 10% rise in gross written premiums across all major distribution channels and a reduction in the underwriting and general administrative expense ratio to 22%, largely credited to the effective implementation of the Cerity integration plan.

During this period, Employers Holdings returned $27 million to shareholders through dividends and share repurchases, indicating a robust financial position. However, the company experienced a decrease in audit accruals due to lower employment and wages in the leisure and hospitality sector, which affected top-line growth.

Recent developments also include Katherine Antonello's discussion on the impact of the decrease in audit pick-ups on top-line growth, attributing it to current economic conditions. She also mentioned the company's readiness to tighten underwriting standards in Florida due to new legislation impacting disability insurance pricing.

Despite these challenges, Employers Holdings anticipates ongoing improvements in its combined ratio and adjusted book value per share, reflecting a positive outlook for the company's future performance. The company's recent achievements underline its financial strength and effective revenue and cost management strategies.

InvestingPro Insights

As Employers Holdings, Inc. (NYSE: EIG) prepares for a leadership transition in its financial department, investors may find value in examining the company's current financial health and market position. According to InvestingPro data, EIG boasts a market capitalization of $1.2 billion and trades at a P/E ratio of 10.35, suggesting a relatively modest valuation compared to its earnings.

One of the InvestingPro Tips highlights that EIG has maintained dividend payments for 18 consecutive years, a testament to its financial stability and commitment to shareholder returns. This is particularly relevant given the company's focus on creating shareholder value, as mentioned by incoming CFO Michael Pedraja. The current dividend yield stands at 2.5%, which may be attractive to income-focused investors.

Another InvestingPro Tip indicates that EIG is trading near its 52-week high, with the stock price at 98.22% of its peak. This aligns with the company's strong year-to-date price total return of 24.38%, reflecting investor confidence in EIG's business model and future prospects.

It's worth noting that InvestingPro offers additional insights, with 10 more tips available for EIG, providing a deeper analysis for investors interested in the company's financial outlook and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.