EICON reports loss, strong growth

Friday, April 18, 2003 | 11:24 a.m.

Employers Insurance Co. of Nevada, the state's largest workers' compensation insurer, Thursday reported a loss for 2002 despite strong growth.

EICON reported $55.2 million in premiums written for the quarter ending Dec. 31, up from $18.5 million in the fourth quarter of 2001. For the year, Employers Insurance said it wrote $185.5 million in premiums, up from $113.3 million in 2001.

Phil Levine, a spokesman for the company said the "vast majority" of the premium growth was related to the purchase of California-based Fremont Compensation Insurance Group.

Employers Insurance lost $13.4 million in 2002, compared to net income of $32.4 million in 2001. The company blamed $31.4 million in loss adjustment expenses, $10.3 million in lower investment income and $20.6 million for write-offs of obsolete fixed assets and uncollectible premiums.

The company also absorbed $4.3 million in non-recurring costs associated with the Fremont purchase.

Levine said most of the losses were one-time occurrences and should not increase rates for policyholders.

"I have not seen any reason or enough reason that would have any affect," he said. "The company's financial position is very strong."

The company had $1.2 billion in assets and a $215 million policyholder surplus as of Dec. 31, Levine said. Employers Insurance, Nevada's leading provider of workers' compensation insurance, was a state agency until it became an independent company in 2000.