Employers Holdings Inc . (NYSE:EIG), a company specializing in fire, marine, and casualty insurance, announced on Monday that its Executive Vice President and Chief Financial Officer, Michael S. Paquette, plans to retire on March 31, 2025. Paquette has communicated his intention to the company, triggering the start of a nationwide search for his successor.
Paquette, who has been a key executive at Employers Holdings, will continue in his role as CFO until a new appointment is made. The company aims to ensure a smooth transition by having Paquette stay on as a senior advisor following the appointment of the new CFO.
The announcement was made in a regulatory filing with the Securities and Exchange Commission on Wednesday, June 12, 2024. Employers Holdings, headquartered in Henderson, Nevada, has not disclosed any further details regarding the reasons for Paquette's retirement or any potential candidates for the CFO position.
This planned transition is part of the natural cycle of corporate governance and management within the organization. As Employers Holdings prepares for this change in leadership, the company has affirmed its commitment to a seamless transition and continuity in its financial leadership.
Investors and stakeholders of Employers Holdings are watching closely as the company embarks on this critical search for a new financial steward. The appointment of a new CFO will be a significant event for the company, given the importance of the role in corporate strategy and financial management.
This news is based on a press release statement and provides investors with the latest developments in the company's executive team. The search for a new CFO is expected to be comprehensive, considering the strategic importance of the role in guiding Employers Holdings' financial operations and contributing to its overall success.
In other recent news, Employers Holdings reported an 8% increase in its Q1 2024 revenue, attributed to higher premiums and a robust net investment income. The company also experienced a 14% growth in gross written premium across all major distribution channels. Significant growth was also recorded in net income and adjusted net income per diluted share, with increases of 29% and 12%, respectively.
The company has indicated that it will focus on enhancing self-service options and expanding appetite in 2024. Employers Holdings has also set aside an additional reserve of over $14 million for potential inflation increases.
However, the first quarter was impacted by higher payroll and benefit costs due to seasonal factors, and a nonrecurring bad debt expense of $1.5 million was recorded related to noncompliant policies. Despite these challenges, the company has reported strong growth in new and renewal premiums, alongside robust net investment income.
These recent developments reflect Employers Holdings' focus on financial growth and strategic market expansion. The company's performance and future plans indicate a commitment to improving its combined ratios and expanding its business sectors throughout 2024.
InvestingPro Insights
As Employers Holdings Inc. (NYSE:EIG) navigates through the executive transition with the upcoming retirement of CFO Michael S. Paquette, it's crucial for investors to consider the company's current financial health and outlook. InvestingPro data reveals that Employers Holdings has a market cap of $1.05 billion and is trading at an attractive P/E ratio of 7.98, indicating a potentially undervalued stock relative to near-term earnings growth. Furthermore, the company's revenue has grown by 12.96% over the last twelve months as of Q1 2024, showcasing a robust financial performance.
InvestingPro Tips suggest that management's aggressive share buyback strategy could signal confidence in the company's value proposition. Additionally, Employers Holdings has maintained its dividend payments for 18 consecutive years, with a current dividend yield of 2.93%, reflecting a commitment to returning value to shareholders. These factors, combined with the company's ability to cover its interest payments with cash flows, paint a picture of a financially stable company as it approaches a pivotal leadership change.
For investors seeking more in-depth analysis and additional InvestingPro Tips on Employers Holdings, consider visiting https://www.investing.com/pro/EIG. There are 9 more tips available that could provide further insights into the company's performance and outlook. Remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, which could be a valuable resource in making informed investment decisions.
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