Earnings Call Excerpt
Eastern Insurance Holdings, Inc. (EIHI)
Q4 2007 Earnings Call
February 15, 2008 10:00 am
Executives
Mr. Bruce M. Eckert - Chief Executive, Officer, Director
Mr. Michael l. Boguski – Pres and Chief Operating Officer
Mr. Kevin Shook – Chief Financial Officer
Analysts
Randy Binner – Friedman, Billings, Ramsey Group Inc.
Bob Farnum – KBW
Sam Kingtson - North & Webster (ph)
Bob Schwerin – Schwerin Boyle Capital Mgmt
Presentation
Operator
Welcome to the Eastern Insurance Holdings, Inc. Fourth Quarter 2007 Earnings Conference Call.
(Operator Instructions)
It is now my pleasure to introduce Mr. Kevin Shook, Treasurer and Chief Financial Officer for Eastern Insurance Holdings.
Kevin Shook
Welcome to EIHI’s Fourth Quarter of 2007 Conference Call. Representing the company today are Bruce Eckert, Chief Executive Officer, Michael Boguski President and Chief Operating Officer, and myself, Kevin Shook, Treasurer and Chief Financial Officer.
Before I turn the call over to Bruce for opening remarks, I would like to remind you that the statements made during the conference call are not based on historical facts or forward-looking statements. These statements are made in reliance on the Safe Harbor Provision of the Private Securities Litigation Reform Act of 1995, and are subject to uncertainties and risks.
EIHI’s future results may differ materially from those anticipated and discussed in forward-looking statements. Some of the factors that could cause or contribute to such differences have been described in the press release issued yesterday and in EIHI’s filings with the SEC. We refer you to be sources for additional information.
I would also like to point out that remarks made during the conference call are based on information and understanding that are believed to be accurate as of today’s date, February 15, 2008. With those announcements complete, I give you Bruce Eckert.
Bruce Eckert
The fourth quarter was an exceptionally strong finish to 2007 for EIHI. Our consolidated combined ratio was 75.5% including combined ratios of 51.3% and 86.8% in our two largest segments, worker’s compensation insurance and group benefits insurance respectively.
Our worker’s compensation insurance segment continues to produce truly exceptional results driven by strong individual account underwriting and favorable claim closure patterns which have resulted in exceptional accident year loss ratios and significant favorable loss reserve development on prior accident years.
I am particularly pleased with our underwriting discipline as we have had strong premium renewal retention rates and last year’s renewal rate deceases were only 3.5% on our profitable book of worker’s compensation insurance business.
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