Employers Direct Announces Fourth Quarter and Fiscal Year End 2006 Financial Results

AGOURA HILLS, CA - April 25, 2007 - Employers Direct Corporation, parent of Employers Direct Insurance Company, California's only specialty direct writer of workers' compensation insurance, today announced its fourth quarter and fiscal year end 2006 financial results.

During the fourth quarter, Employers Direct continued to grow its customer base by adding new customers and enjoying an extraordinarily high renewal rate. "We are especially pleased with our customer loyalty, which, with a renewal rate of more than 90% during 2006, is clear evidence of what we work hard to achieve 365 days a year - customer satisfaction," said James E. Little, Chairman/President & CEO of Employers Direct Corporation and Employers Direct Insurance Company.

A summary of the financial performance and operating performance of Employers Direct for the year ended December 31, 2006 follows:

• 2006 net income was $46.6 million, a 121.1% increase from 2005
• For 2006, revenue stood at $148.5 million, compared to $160.6 million in 2005; while the Department of Insurance approved decreases in workers' comp rates totaling nearly 30% in 2006, the Company's revenues were reduced by only 7.5% because of strong new sales during the period
• The Company posted a combined ratio of 55.8% in 2006
• For 2006, the expense ratio was 22.3%, one of the lowest in the industry and the result of the Company's low-cost, direct-to-business model
• The cash flow from operations was $64.1 million in 2006
• Employers Direct's assets increased $58.9 million (22.5%) to $321.1 million
• The Company's net shareholders' equity has grown steadily from its original capital base of $50 million in 2002, to $131.7 million at year-end 2006.

Also, during the fourth quarter, Employers Direct intensified its involvement in many of its core industries as a result of memberships in the California Grocers Association, the California Hotel & Lodging Association, the California Independent Grocers Association, and Professionals in Human Resources Association.
 
About EMPLOYERS DIRECT INSURANCE COMPANY
Employers Direct Insurance Company is California's only specialty direct writer of workers' compensation insurance. Founded in 2002, 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. As a newer company, Employers Direct is unburdened by legacy systems and takes advantage of the latest technology to provide its customers with 24/7 access to all policy and claims information via a secure Internet portal. 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, golf and country clubs, new car dealers, food processors, manufacturing companies, specialty supermarket chains, and retailers. Visit Employers Direct online at www.employersdirect.com.

CONTACT:
Employers Direct Insurance Company
Debbie Laskey
Tel: 818.575.2709
dlaskey@employersdirect.com