AMSF - Employers Holdings Leveraging The Reopening And Expansion Of The Economy
- Employers has seen a strong rebound in premiums in the last two quarters as the economy recovers, and management is looking to grow its business into new low-to-medium-risk categories.
- Ongoing rate pressure is a concern to me, particularly with accident frequency likely to normalize (get worse), but Employers has a strong long-term underwriting track record.
- Rate pressure is offsetting growth in policies, but irrational pricing should be corrected in the coming years, and Employers has opportunities to leverage recent IT investments to drive operating leverage.
- Mid-single-digit core growth and a near-term ROE around 6% can support a fair value in the $44-$45 range.
For further details see:
Employers Holdings Leveraging The Reopening And Expansion Of The Economy