EICN’s Numbers Are Headed in the Right Directions By Robert Warne - July 9, 2003
Employers Insurance Company of Nevada’s (EICN) first quarter results backs up AM Best’s recent A- rating assignment and are sure to give other carriers struggling in California a good case of claim envy.
For the first three months of 2003, EICN experienced 121.4% growth in net premiums earned as a result of the California book of business it acquired a year ago from Fremont Compensation.
Its combined ratio dropped almost 10% from the same period last year to 99.8%. EICN attributes this decrease to a nearly a 15% drop in its loss and loss adjustment expense (LAE) from the first quarter last year to 65.7%.
And believe it or not the company credits its favorable LAE to its subsidiary; Fremont Employers Insurance Company’s (FEIC) California results.
Underwriting costs rose though for the company, which EICN attributes to the fronting facility relationship it acquired with its California book of business.
But nobody is complaining because the company's financial position remains strong as of March 31, with assets of $1.26 billion and policyholder surplus of $218 million. And FEIC’s financial position is strong as well, with approximately $78 million in policyholder surplus.
Adjuster / Examiner Claims Examiner Santa Ana Unified School District Santa Ana, CA
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