Vicki Erickson – Vice President Investor Relations Doug Dirks – Chief Executive Officer Rick Yocke – Chief Financial Officer

Good day ladies and gentlemen and welcome to the first quarter 2008 Employers Holdings, Inc. earnings conference call. (Operator instructions) I would now like to turn the presentation over to your host for today’s call, Ms. Vicki Erickson, Vice President of Investor Relations. Please proceed ma’am.

Thank you and welcome everyone to the first quarter 2008 earnings call for Employers Holdings, Inc. After the close of market yesterday, we announced our first quarter 2008 earnings results and filed our form 10-Q with the Securities and Exchange Commission. The press release and form 10-Q are available on the company’s website at www.employers.com. Today’s call is being recorded and webcast from the investor relations section of our website where a replay will be available following the call. Representing the company on the call today are Doug Dirks, our Chief Executive Officer and Rick Yocke, our Chief Financial Officer. Marty Welch, the President and Chief Operating Officer of our insurance subsidiaries is in the room and will be available for questions following our comments. Before I turn the call over to Doug, I would like to remind everyone that 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 material developments. I’d also like to remind you that we use a non-GAAP metric that excludes the impact of the 1999 loss portfolio transfer or LPT. This metric is defined in our earnings press release available on our website. Now I will turn the call over to Doug.

Thanks Vicki, hello everyone. Our first quarter net income was $25.5 million in 08 and $27.9 million in 07. Net income before the impact of the LPT was $20.7 million in the first quarter of 08 and $23.3 million in the first quarter of 07. In the first quarter of this year we achieved solid earnings of $0.42 per share before the LPT. Our favorable prior accident year reserve development continued. Our combined ratio improved and our book value adjusted for the impact of the LPT increased to $16.47 per share, from $16.21 per share at December 31, 2007. Our two largest markets, California and Nevada both continue to experience pressure to the top line but for different reasons. In California, premium continues to decline as a result of the remaining rate decreases that will work their way through renewals until September of this year as well as competitive pressures. In Nevada, the decline in premium results primarily from a substantial contraction in business activity, although there will be impact over the next ten months from previously approved rate decreases. California remained our largest market in the first quarter, representing 70% of our direct premiums written. While rate decreases have been the key driver of our premium declines in California, we expect stable rates in California for the remainder of the year based on the May 9 statement from the California Insurance Commissioner that for the first time in six years, an interim pure premium rate advisory would not be issued because of market strength. This marks the second consecutive time the Commissioner has not ordered a change in pure premium rates and points to continued success and apparent sustainability of California reforms. Remember however that pure premium rates are only one component of the pricing mechanism, the other is…

Thanks Doug and good day to everyone. In the first quarter of this year, our combined ratio was 83% on a GAAP basis and 89.3% before the LPT. That compares favorably with 85.4% and 90.5% before the LPT in the first quarter of 2007. Our loss in LAE ratios were 40.3% on a GAAP basis and 46.7% before the LPT and that compares with 46.4% and 51.5% before the LPT in the first quarter of last year. The 6.1% point improvement in the GAAP ratio was largely the result of a reduction in the quarterly provision rate which we made beginning in the second quarter of 2007 and which we have applied in subsequent quarters. Consistent with past quarters, we’ve completed an actuarial review of our [inaudible] incurred losses. Based on that review, on a pretax basis, we recognized $11.4 million of continuing favorable prior accident year development. And in the first quarter of 2008, this favorable development represented 15% points on the combined ratio. While our first quarter current accident year loss estimated is less conservative than the first quarter of last year, our overall reserving philosophy remains conservative and we expect our carried reserves to continue to be above the consulting actuaries’ point estimate through 2008. Our first quarter underwriting and other operating expense ratio was 28.6%. The total net income from investments decreased 9.3% in the first quarter of 2008, largely because first quarter investment income in 2007 included $1.8 million of onetime interest income on the net proceeds related to our IPO. Realized losses on investments of $1.5 million stem from other than temporary impairment in the value of 19 equity securities in the technology, telecommunication and financial service sectors of our portfolio. The impairment represents less than nine-hundredths of 1% of our total portfolio. The…

Thanks Rick. In the first quarter we achieved solid earnings. Our favorable prior accident year reserve development continued, our combined ratio improved and shareholder’s equity increased. Going forward, we’re leverage our experience and expertise to pursue opportunity for profitable growth while maintaining our focus on underwriting discipline, to protect the quality and profitability of our book of business. Thank you all for joining us today and operator if you would please open the line, we’re ready for questions.

(Operator instructions) At this time we have no questions, I would now like to turn the call over to Mr. Doug Dirks for closing remarks.

Very good, thank you operator, thank you everyone for joining us today, we look forward to talking to you in the next quarter.