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 EMPLOYERS DIRECT CUTS RATES MORE THAN TWICE STATE AVERAGE Aggressive Service Results in Substantially Lower Costs WESTLAKE VILLAGE, CA – December 1, 2003 – Employers Direct Insurance Company has cut its workers’ compensation insurance rates by 8.2% in its current filing with the California Department of Insurance. This decrease is more than twice the preliminary average reduction of 3.6% reported by the state department. Employers Direct can cut rates more than the industry average because its aggressive claims department will be better able to administer the new state regulations that go into effect in January of 2004, according to Ronald A. Groden, Chief Financial Officer. Additionally, the company has been able to select employers who share its vision that aggressive claims combined with loss and fraud management will drive down costs. “Our rates reflect both our experience in 2003 and our ability to take full advantage of the opportunities offered by reforms in 2004,” said Groden, “Over the past year, we have demonstrated an ability to lower claims costs and ultimately the insurance costs of our clients. This savings allows us to reduce rates more than twice the industry average and nearly three times the reductions filed by the State Fund.” Employers Direct is the first new workers’ compensation insurance carrier to be licensed by the California Department of Insurance in more than a decade. Employers Direct entered the California workers’ compensation insurance market in late 2002 with an initial $55 million in capital and the support of a sophisticated investment group. The lead investors are Securitas Capital and Golden Gate Capital. Employers Direct Insurance Company was founded by James E. Little, who is Chairman/President and Chief Executive Officer, and by Ronald A. Groden, Vice Chairman as well as Chief Financial Officer. From 1990 to 1998, Little served as President of Fremont Compensation Insurance Co., and Groden was formerly Chief Financial Officer of Fremont Comp. About EMPLOYERS DIRECT INSURANCE COMPANY Employers Direct Insurance Company is California's only investor-owned direct writer of workers' compensation insurance - with no agent or broker affiliation. Founded in 2003, Employers Direct has been widely accepted by business owners throughout California as a result of providing highly competitive rates, claims services designed to fight fraud and abuse, and loss prevention services that assist employers to create safe work environments. Employers Direct is proud that a growing number of California's best-run privately-held companies count themselves as policyholders. Niche industries include hotels, restaurants, country clubs, new car dealers, manufacturing companies, specialty supermarket chains, and retailers. Visit Employers Direct online at www.employersdirect.com Contact: Employers Direct Insurance Company Stephanie Hlad 818-575-8545 (Day) shlad@employersdirect.com |
