Employers Holdings, Inc. (NYSE:EIG) Q3 2019 Earnings Conference Call - Final Transcript
Oct 24, 2019 • 11:30 am ET
Ladies and gentlemen, thank you for standing by, and welcome to the Q3 2019 Employers Holdings Inc. Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.
[Operator Instructions] I would now like to hand the conference over to your speaker today, Lori Brown, General Counsel. Thank you. Please go ahead.
Thank you, Jimmy. Good morning, and welcome everyone to the third quarter 2019 earnings call for Employers. Today's call is being recorded and webcast from the Investors section of our website, where a replay will be available following the call.
With me today on the call are Doug Dirks, our Chief Executive Officer; Steve Festa, our Chief Operating Officer; and Mike Paquette, our Chief Financial Officer.
Statements made during this conference call that are not based on historical fact are considered forward-looking statements. These statements are made in reliance on the safe harbor provision of the Private Securities Litigation Reform Act of 1995.
Although we believe the expectations expressed in our forward-looking statements are reasonable, risks and uncertainties could cause actual results to be materially different from our expectations, including the risks set forth in our filings with the Securities and Exchange Commission. All remarks made during the call are current at the time of the call and will not be updated to reflect subsequent developments.
In our earnings press release and in our remarks or responses to questions, we may use non-GAAP financial metrics, including those that exclude the impact of the 1999 Loss Portfolio Transfer or LPT. Reconciliations of these non-GAAP metrics are included in our financial supplement as an attachment to our earnings press release, our investor presentation and any other materials available in the Investors section of our website.
Now, I will turn the call over to Doug.
Douglas D. Dirks
Thank you, Lori, and thank you all for joining us today. Our third quarter and year-to-date results were highly favorable and our accident year results were broadly in line with our expectations.
Within Property and Casualty Insurance, workers' compensation continues to be on a relative basis a much more attractive line of business and consequently remains highly competitive. Notably, we are finding that the smaller end of the middle market is prone to the most aggressive pricing behaviors.
Our business model focuses on small low-hazard accounts. Compared to the middle market, this business is characterized by less competition, less price sensitivity and higher persistency, and therefore, is more resilient to pricing changes. This is confirmed with the high unit and premium retention rates we are achieving in California on our smaller accounts, despite our recent rate actions.
We remain focused on alleviating or eliminating friction in the sales process, be it for our agency partners or through Cerity, our direct-to-consumer platform. Cerity is currently open for business in 24 states and the District of Columbia and is rapidly expanding nationally. We continue to execute on our plan of accelerated development and implementation of digital IT capabilities that benefit and support both our agency force