Employers plans relocation to new South Meadows building
August 20, 2007
Construction is scheduled to start next month on an 80,000-square-foot building in Reno that will serve as headquarters of workers compensation carrier Employers Holdings Inc.
The building will be at Reno Tahoe Tech Center in South Meadows. It will house about 200 employees who now are split among three locations in South Reno.
The new offices are scheduled for completion in March.
Separately, Employers Holdings reported last week that its earnings for the second quarter were up strongly.
The company said it earned $30.8 million in the quarter ended June 30, an increase of 43.9 percent from its net of $21.4 million in the second quarter of 2006.
A major contributor to the earnings strength, the company said, was lower claims costs in California, its biggest market.
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Because the number of workers comp claims in California has declined, and the cost of those claims has lessened, Employers has been cutting its rates in the Golden State, and it filed in July for a reduction that averages 4.5 percent.
But it’s making up some of the lost revenue by selling more policies. The number of Employers policies in force in California on June 30 was up 12.8 percent from year-earlier figures.
In Nevada, the company said the number of policies it has in force declined by 5.8 percent in the past 12 months. Competition in Nevada is stiff, executives said, and Employers is cautious about the workers comp risks it’s willing to underwrite.
The company said its net investment income during the second quarter totaled $19.3 million, an increase of 15.1 percent from a year earlier.
Executives said about 11 percent of Employers’ portfolio is in mortgage-backed securities, but most of it is in AAA-rated instruments issued by Fannie Mae, Freddie Mac and Ginnie Mae.