EIG

Image source: The Motley Fool. Thursday, July 30, 2026 at 11:00 a.m. ET Executive Vice President, General Counsel - Jeffrey Lisenby Chief Executive Officer - Katherine Holt Antonello Chief Financial Officer - Michael Aldo Pedraja Operator: Good day, and thank you for standing by. Welcome to the Employer Holdings, Inc. Earnings Conference Call. At this time, Q&A session. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 again. Please be advised today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Jeffrey Lisenby, Executive Vice President, General Counsel. Please go ahead. Jeffrey Lisenby: Thank you, Bonnie. Today's call is being recorded and web from the Investors section of our website. Where a replay will be available following the call. Statements made during this conference call that are not based on historical facts are considered forward looking statements. These statements are made in reliance on the safe harbor provision of the Private Securities Litigation Reform Act of 2 thousand. Although we believe the expectations expressed in 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 only at the time of the call and will not be updated to reflect developments. The company also uses its website as a means of disclosing material nonpublic information and for complying with disclosure obligations under the SEC's regulation FD. Such disclosures will be included in the Investors section of our website. Accordingly, investors should monitor that portion of our website in addition to following our press releases, SEC filings, public conference calls and webcasts. In our earnings press release and in our remarks or responses to questions, we may use non GAAP financial measures. Reconciliations of these non GAAP measures to our GAAP results 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 Kathy Antonello, our Chief Executive Officer. Katherine Holt Antonello FCAS MAAA: Thank you, Jeffrey. Good morning, everyone, and welcome to our second quarter 2026 Earnings Call. Joining me today is Mike Pedraja, our Chief Financial Officer. Attracting and retaining high quality executives and directors is always an important priority for us. And we are pleased to welcome Stephanie Bush to our board of directors and Jeffrey Lisenby who you just heard from, as our new general counsel. I am confident that both Stephanie and Jeffrey will make meaningful contributions to our organization. As usual, I will begin by providing highlights of our second quarter 26 financial results and then hand it over to Mike for more details on our financials. Before Q&A, I will come back to you with some additional thoughts. If I had to sum up the second quarter, I would say it is the quarter where the benefits of our recapitalization became fully visible. Diluted earnings per share grew 29% year over year, and adjusted earnings per share grew 46%. Even though net income was essentially flat. The gap between net income and per share growth is the direct compounding benefit of the accretive share repurchases we have executed since undertaking the recapitalization. On the underwriting side, our net premium earned declined 12% year over year. While policies in force declined 5%. These amounts reflect the pricing and underwriting actions we have put in place to prioritize profitability over volume. Most of the decreases were directly related to the customer segments and geographies we targeted as part of our plan. To concentrate on our core small business segment. We are currently focused on building new sources of growth. And in June, we wrote our first excess workers' compensation policy, marking the successful launch of our new product line. The success of this new product continued in July with over 200 submissions and 20 policies bound, producing $4 million in premium. it is a new lever for growth and 1 that complements our core book. Our second quarter actuarial review came in as expected. As a result, we made no change to loss reserves for accident year 2025 and prior. We also maintained our current accident year loss in LAE excluding the LPT, on voluntary business at 72%. Which is consistent with the full-year 2025 accident year ratio. Our underwriting expenses declined to $40 million from $43 million a year ago. Driven by our continued focus on innovation and a reduction in variable expenses. Net investment income was $27 million up 1% year over year. Aided by a 40 basis point increase in our book yields. Which was a result of the investment rebalancing we executed last year. We are laser focused on expanding our book value per share. With dividends, book value per share, including the deferred gain, grew 9% year over year to $52.58. With that, Mike will now provide a deeper dive into our second quarter financial results and then I will return to provide my closing remarks. Mike? Michael Aldo Pedraja: Thank you, Kathy. Gross premiums written were $163 million compared to $203 million for the prior year quarter. A decrease of 20% due primarily to a decrease in new and renewal business writings. These decreases were partially offset by an increase in our ending final audit premium accrual and a $2.5 million premium restitution from a former policyholder. Our losses in LAE were $122 million a year ago. The current quarter did not include any prior period losses or development on our voluntary business and the current accident year loss and LAE ratio of 72% is consistent with the full-year 2025 accident year ratio. The $2.5 million premium restitution reduced our second quarter combined ratio by approximately 1.5 percentage points. Commission expense was $22 million for the quarter versus $26 million for the prior year. Driven by lower agency incentive accruals, and a lower proportion of new business premium which carries a higher commission rate. Underwriting expenses were $40 million for the quarter versus $43 million for the prior year, a decrease of 7%. The improvement in underwriting expenses for the second quarter was due primarily to our continued expense management efforts including reduced personnel costs, policyholder dividends, and bad debt expense. Our second quarter net investment income of $27 million was essentially flat year over year. Our fixed maturities maintain a modified duration of 4.5, with a strong average credit quality of A+. Aided by investment rebalancing that Kathy mentioned, our weighted average book yield was 4.9% at quarter-end compared to 4.5% from the prior year. A 40 basis point improvement. Our adjusted net income, which excludes net realized and unrealized investment gains and losses, and the benefit of our LPT deferred gain amortization, was $13 million for the quarter, compared to $12 million last year. We remain committed to being good stewards of our shareholders' capital. During the second quarter, we repurchased 652 thousand shares of our common stock at an average price of $42.43 per share for $28 million. The average repurchase price represented a 17% discount to our beginning book value per share including the deferred gain, and an 18% discount to our beginning adjusted book value per share. With that, I will turn the call back to Kathy. Katherine Holt Antonello FCAS MAAA: Thank you, Mike. Yesterday, Board of Directors declared a third quarter 26 dividend of $0.34 per share consistent with the 6.5% increase we implemented last quarter. In addition to executing our underwriting strategy, we continue to make progress in our technology initiatives. Including a major claim system upgrade, a new customer relationship management system, and the continued rollout of our AI tools. During the quarter, we achieved a 94% AI staff adoption rate, and implemented several AI assisted use cases with meaningful tangible ROI. As the guarantee cost workers' compensation market softened, our focus turned to building our excess product. We are now turning our attention to rounding out our workers' compensation offerings with other loss sensitive products. Including large deductible. We also see opportunities to leverage our prior success and expand our appetite further. We are confident these new offerings will diversify our book, provide optionality during market cycles, and increase new business. We step into the second half of 26 with genuine momentum at our backs. Our new business pipeline is accelerating Our renewal book continues to perform as designed. And our underwriting discipline remains solid. The California Insurance Commissioner's approval of a 6.6% advisory pure premium rate increase effective September 1st provides a significant opportunity for improved results in our largest market. Employers remains well capitalized, well positioned, and firmly focused on our North Star, which is delivering profitable, sustainable growth for our shareholders. And with that, Bonnie, we will now take questions. Operator: Thank you. At this time, we will conduct a question and answer session. As a reminder, to ask a question, you will need to press star 1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1 again. Our first question comes from the line of Mark Douglas Hughes with Truist. Your line is open. Mark Hughes: Yeah. Thank you. Good morning. Katherine Holt Antonello FCAS MAAA: Good morning, Mark. Mark Hughes: Kathy, you mentioned the 6.6% rate increase what is your experience? Do you think carriers will follow that? And assuming you take the 6.6%, what will that mean in terms of your overall pricing kind of all in with other pricing actions for you in California? Katherine Holt Antonello FCAS MAAA: Yeah. So if we are talking specifically about California we do internally feel like we have been ahead of the curve in terms of rate adequacy in the state. So the increase that the bureau filed and the commissioner approved not the entire increase, but some of it. We feel like we already had that baked into our rates. So we feel like it is more we were ahead of the curve on that, I would say. So I would not expect it to impact our book significantly We are feeling good about where we are positioned in California. And I cannot speak to where other carriers are. But I think the commissioner has done a nice job of laying out the issues in the state that need to be addressed. And we are hopeful that there will continue to be a lot of focus on those areas where reform could help. But we feel like we are well positioned in terms of our rate adequacy in the state. Overall, countrywide, you know, just to give you a view of the landscape in terms of rates there. Payrolls have been relatively flat, up about 0.5%. And we have achieved overall across the country about a 5% increase in our rate when you look at our renewal book year over year. Mark Hughes: Very good. How would you characterize the competition? I think you had talked about kind of expecting mid-teens declines The dip was just a little bit faster. Did you see more competition in the quarter and what was the nature of that Workers' comp specialists, package writers? How would you describe it? Katherine Holt Antonello FCAS MAAA: Yeah. You know, package writers have always been an area of fierce competition because of the optionality that they have. We are seeing most of the competition in the middle market space to the point where we are just turning away when we do not feel like we can, get the margins that we need I would say, you know, there is definitely some irrational behavior going on in certain jurisdictions. But we are working hard to find those areas where we can continue to grow. In our release, and the prepared remarks, we talked about how our premium is down, but the number of policies is down not near to the same extent, and that is because of the competition that we are seeing in the middle market. Yep. Mark Hughes: In thinking about your reserves, I think, some slight favorable development this quarter. You know, relative to the industry as a whole, I think you are still seeing you know, meaningful reserve releases though at a bit slower pace these days. When you think about your book, is it maybe just some care or concern around CT claims, and so you are kind of holding the line to protect the balance sheet or is there something about your book that may be different than we are seeing more broadly, which is, you know, still redundancy, still reserve releases. Katherine Holt Antonello FCAS MAAA: Yeah. I think you are spot on. I mean, our you know, every book of business is different. We have a higher weight in than countrywide. So when you mentioned CT, yes, we are trying to remain cautious, and protect the balance sheet exactly like you said. The more recent years, which is where we have seen the cumulative trauma claims come through. there is just more uncertainty in those years. And we are just being ultra cautious there. We are continuing to see favorable development emerge in the older accident years, just as we would expect. Yeah. Mark Hughes: Okay. And then the excess workers' comp was that 4 million number, was that June? Katherine Holt Antonello FCAS MAAA: That was July to date. We did write 1 policy in June. But that was we were getting you up to date for what we have done month to date. Yeah. Mark Hughes: Is that seems like pretty good start. How do you feel about that? And seems like that could be a decent contributor even if you kept up that pace. Katherine Holt Antonello FCAS MAAA: Yeah. I would agree. You know, I would add that July 1 is a big for the segments that we are targeting, municipalities, schools, and so forth, July 1 is a big renewal day. that is why we targeted that as our launch. And so I would not expect that same amount every month going forward, but we are seeing a very strong submission flow and a lot of interest from the brokers. So it is exciting to watch and we look forward to seeing the growth there. Yeah. Mark Hughes: And I will ask just 1 more of the share repurchase appetite at this point How do we think about that? Michael Aldo Pedraja: Yeah, Mark. We have a very strong view of our in intrinsic value and that intrinsic value is above the current stock price. We do believe in being very prudent purchasers of our shares. And so as you know, have $113 million of additional capacity left. And so we think we will continue to be active repurchasers, but obviously, we are going to do it on a prudent basis, and we will use the return on equity as our guidepost to focus on those purchases. Okay. Mark Hughes: So $113 million, would that be kind of 12 months? Or Yeah. Michael Aldo Pedraja: Through the end of next year. So the program we implemented is of $125 million through the end of 27. And so we have $113 million left. Mark Hughes: Okay. And that seems like reasonable pacing sounds like? Michael Aldo Pedraja: It all depends. If the market opportunity to be easy to be candid, if the market opportunity has the stock down, we will accelerate those repurchases. Yeah. Okay. Mark Hughes: Thank you very much. Okay. Katherine Holt Antonello FCAS MAAA: Thank you. Thank you. Operator: Our next question comes from the line of Karol Chmiel with Citizens Bank. Your line is open. Karol Chmiel: Hi. Good morning. Thank you for taking my questions. I just have 2 questions. First 1 is just a general viewpoint on the whole reunderwriting of some of the policies due to the CT phenomenon and would you categorize it as being more than 50% done in terms of reunderwriting those risks? Katherine Holt Antonello FCAS MAAA: Yes. I would characterize it as more than 50% done. We started this at the tail end of 25. So I think that is an accurate way to view it. Right. Thank you. Karol Chmiel: And then just to follow-up on the repurchases, do you have anything you wanna share Regarding your repurchases in Q3? As far as to date? As far as, you know, if you have used the authorization to purchase any shares, Yeah. Michael Aldo Pedraja: No. Like I said, we are we are eager and, you know, we are very focused on being prudent capital monitors our shareholders for our shareholders. And we continue to watch the stock. So we were repurchasers. It just it depends. The fluctuation will depend simply on how the stock, performs. And so if, as I mentioned to just to Mark, if the stock drops, we will accelerate the level of repurchases. Karol Chmiel: Understood. Thank you so much. that is all. Operator: Thank you. I am showing no further questions at this time. I would now like to turn it back to Kathy Antonello for closing remarks. Katherine Holt Antonello FCAS MAAA: I think we might have a follow-up question in the queue. Operator: I do see that. Thanks. We have Mark Douglas Hughes with a follow-up question. Mark Hughes: Hey. Right on time. Katherine Holt Antonello FCAS MAAA: Anything, Kathy, from a medical inflation standpoint? You know, the CT issue to the side, but underlying inflation trends, medical inflation, frequency, severity, what is the latest vibe on that? Yeah. I mean, inflation generally, as it is impacting the workers' compensation environment, is quite benign. We are not seeing anything that is alarming. We have not seen anything that has emerged from the tariffs or their impact on medical prices. We internally, as you are aware, have a prescription drug index that we monitor on a quarterly basis. We are not seeing anything there that is concerning. To us, and, it seems like we are in lockstep with the rest of the industry. And CCI just published a new economic study on medical inflation. I think it just came out last week. And they had a similar result in their study and their medical inflation index that they track. So seems to be pretty calm right now. Yeah. Yeah. Yeah. Mark Hughes: Anything more on AI? You described some good use cases. Anything around the budget in order to implement AI? I think you have done really well on expenses and Mike, I think kind of intimated that the expense discipline should continue Just wonder whether there is anything you would highlight there. Either from a customer service, customer acquisition, internal efficiency would be interested in any more thoughts? Katherine Holt Antonello FCAS MAAA: Yeah. We do feel like AI is helping us from an efficiency standpoint. We are very focused on the cost of AI. And as many of the models turn from license based to usage based. Fees. How we are going to manage that internally. And we think we have a good plan for that. And we are seeing a lot of use cases. I mentioned in my prepared remarks the vast majority of our organization is utilizing AI. We are pushing out tools to help with productivity. In almost every area of the company. And we are really excited about the momentum we are seeing there. I fully expect that we will be building out our large deductible product utilizing AI exactly the same way that we did when we built our access workers' compensation product. So we are true believers, and it is exciting to watch all the success that we are having from it. Mark Hughes: Very good. Thank you. Katherine Holt Antonello FCAS MAAA: Thank you. Operator: Excellent. This concludes the question and answer session, and I would now like to turn it back to Kathy Antonello for closing remarks. Katherine Holt Antonello FCAS MAAA: Okay. Thank you, Bonnie, and thank you all for joining us this morning. And we look forward to meeting with you again in October. Operator: Thank you for today's participation in this conference. This does conclude the program. You may now disconnect. Before you buy stock in Employers, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Employers wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Employers Holdings (EIG) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Employers (NYSE:EIG) reported second-quarter 2026 diluted earnings per share growth of 29% from a year earlier and adjusted earnings per share growth of 46%, as the workers’ compensation insurer said its recapitalization and share repurchase program increased per-share results despite essentially flat net income. Chief Executive Officer Kathy Antonello said the quarter demonstrated the “direct compounding benefit” of accretive repurchases completed since the company’s recapitalization. During the quarter, Employers repurchased 651,752 shares for $28 million, at an average price of $42.43 per share. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now The average repurchase price was a 17% discount to beginning book value per share including the deferred gain, and an 18% discount to beginning adjusted book value per share, according to Chief Financial Officer Mike Pedraja. The company has $113 million remaining under its repurchase authorization through the end of 2027, and Pedraja said Employers expects to remain an active buyer of its shares, with the pace depending on the stock price and investment returns available from repurchases. Gross premiums written declined 20% year over year to $163 million in the second quarter, from $203 million. Net premiums earned fell 12%, while policies in force declined 5%. → Microsoft Just Flipped the AI Spending Narrative Overnight Antonello said the declines reflected deliberate pricing and underwriting actions designed to prioritize profitability over volume, particularly in targeted customer segments and geographies as Employers concentrates on its core small-business market. Pedraja said lower new and renewal business writings drove the reduction in gross premiums written. The decline was partly offset by a higher ending final-audit premium accrual and a $2.5 million premium restitution from a former policyholder. → Carrier Earnings Could Send the Stock to a New All-Time High During the question-and-answer session, Antonello said competition has been particularly intense among package writers and in the middle-market segment. Employers has turned away business when it cannot achieve the margins it seeks, she said, adding that the difference between the premium decline and smaller reduction in policy count reflects competitive conditions in the middle market. Across its renewal book, Employers achieved an approximately 5% year-over-year rate increase, Antonello said. Payrolls were relatively flat, rising about 0.5%. Losses and loss-adjustment expenses were $122 million, compared with $140 million a year earlier. Employers recorded no prior-period loss development on voluntary business during the quarter and maintained its current accident-year loss and LAE ratio, excluding the loss portfolio transfer on voluntary business, at 72%—consistent with the full-year 2025 accident-year ratio. The $2.5 million premium restitution lowered the second-quarter combined ratio by about 1.5 percentage points, Pedraja said. Antonello said the company’s actuarial review was in line with expectations, resulting in no changes to reserves for accident years 2025 and earlier. She said Employers continues to see favorable development in older accident years but is taking a cautious approach to more recent periods, especially given uncertainty around cumulative-trauma claims and the company’s relatively high California exposure. On broader workers’ compensation trends, Antonello said inflation pressures remain “quite benign.” The company has not seen concerning effects from tariffs on medical costs, she said, and its quarterly prescription-drug index has not indicated material pressure. Commission expense decreased to $22 million from $26 million in the year-earlier period, driven by lower agency incentive accruals and a smaller proportion of higher-commission new-business premium. Underwriting expenses fell 8% to $40 million from $43 million. Pedraja attributed the decline to expense-management measures, including lower personnel costs, policyholder dividends and bad-debt expense. Net investment income was $27 million, essentially unchanged from the prior year. The company’s weighted-average book yield increased 40 basis points to 4.9% at quarter-end, following investment rebalancing completed last year. Fixed maturities had a modified duration of 4.5 years and an average credit quality of A-plus. Adjusted net income, excluding realized and unrealized investment gains and losses as well as loss portfolio transfer deferred-gain amortization, was $13 million, compared with $12 million a year earlier. Book value per share, including the deferred gain and dividends, increased 9% year over year to $52.58. Employers launched its excess workers’ compensation product in June, writing its first policy during the month. In July, the company received more than 200 submissions and bound 20 policies, generating $4 million in premium. Antonello said July 1 is a significant renewal date for the product’s targeted segments, including municipalities and schools, and the company does not expect the same premium volume every month. Still, she said the submission flow and broker interest have been strong. The company also plans to expand its loss-sensitive workers’ compensation offerings, including large-deductible products. Antonello said Employers believes the new products can diversify its book, add flexibility through market cycles and support new-business growth. Employers reported a 94% staff adoption rate for its artificial-intelligence tools during the quarter and said it has implemented AI-assisted use cases with tangible returns. Antonello said the company is using AI to support productivity across much of the organization and expects to use the technology in building its large-deductible offering, as it did with the excess workers’ compensation product. The board declared a third-quarter 2026 dividend of $0.34 per share, unchanged from the dividend level following the 6.25% increase implemented in the prior quarter. Antonello also said California’s approval of a 6.6% advisory pure premium rate increase effective Sept. 1 could support results in the company’s largest market, although Employers believes it had already incorporated part of that increase into its pricing and expects limited impact on its own book. Employers Holdings, Inc (NYSE: EIG) is a publicly traded property and casualty insurance holding company headquartered in Des Moines, Iowa. Through its subsidiaries, Employers Mutual Casualty Company and Employers Preferred Insurance Company, the firm specializes in providing workers' compensation coverage alongside an array of commercial insurance products. Its service offerings include general liability, commercial auto, businessowners policies and umbrella coverages, tailored to meet the risk-management needs of small and mid-sized businesses across multiple industries. The company markets its insurance solutions primarily through a network of independent agencies and brokers, leveraging local market expertise to underwrite policies that address the unique exposures faced by clients in manufacturing, construction, healthcare, retail and service sectors. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Employers Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Workers' compensation insurer Employers Holdings (NYSE:EIG) beat Wall Street’s revenue expectations in Q2 CY2026, but sales fell by 10.6% year on year to $220.2 million. Its non-GAAP profit of $0.70 per share was 25.7% above analysts’ consensus estimates. Is now the time to buy EIG? Find out in our full research report (it’s free). Revenue: $220.2 million vs analyst estimates of $203.2 million (10.6% year-on-year decline, 8.4% beat) Adjusted EPS: $0.70 vs analyst estimates of $0.56 (25.7% beat) Market Capitalization: $893 million Employers Holdings delivered Q2 results that were met positively by the market, as non-GAAP earnings per share significantly exceeded Wall Street expectations despite a double-digit revenue decline. Management attributed this performance to disciplined underwriting, a strategic focus on profitability over volume, and efficiency gains from ongoing expense management. CEO Katherine Antonello highlighted that the company's recapitalization and share repurchase program meaningfully boosted per-share growth, while a deliberate reduction in exposure to underperforming segments helped maintain underwriting quality. The launch of the new excess workers’ compensation product also contributed to results, with Antonello noting, “It is a new lever for growth and one that complements our core book.” Looking ahead, Employers Holdings’ guidance is shaped by expansion into new product lines, continued investment in technology, and efforts to diversify its book of business. Management emphasized the successful rollout of excess workers’ compensation and plans to introduce additional loss-sensitive offerings. Antonello stated, “We are confident these new offerings will diversify our book, provide optionality during market cycles, and increase new business.” Technology upgrades, including new AI tools and claims systems, are expected to drive further efficiency and support growth. Management views regulatory developments such as the California pure premium rate increase as opportunities but remains cautious on competitive pressures and claims trends. Management emphasized that Q2 performance was driven by strategic underwriting actions, expense discipline, product innovation, and early success in new market initiatives. Underwriting discipline prioritized: The company continued to prioritize profitability, reducing exposure in unprofitable segments and geographies. This led to a decline in premiums earned and policies in force but supported stable underwriting margins. Excess workers’ compensation launch: Employers Holdings wrote its first excess workers’ compensation policy in June, with strong broker interest resulting in over 200 submissions and $4 million in premium by July. This product targets municipalities and schools, adding a new avenue for growth. Expense management gains: Underwriting expenses declined due to focused cost control, including reduced personnel costs and lower agency incentive accruals. CFO Mike Pedraja cited ongoing efforts to drive efficiency without sacrificing service or innovation. AI and technology adoption: The company achieved a 94% AI staff adoption rate, implementing AI-assisted use cases that drove tangible return on investment. Major upgrades to claims and customer management systems were also completed during the quarter. Capital return through share repurchases: Employers Holdings repurchased 652,000 shares in Q2, leveraging its recapitalization to improve per-share metrics. The average repurchase price represented a significant discount to book value, with $113 million in buyback capacity remaining under the current program. Employers Holdings’ outlook is underpinned by new product expansion, technology-driven efficiency, and a disciplined approach to capital management. Product diversification efforts: Management is focused on building out additional loss-sensitive products, including large deductible offerings, to complement its traditional book and provide new channels for premium growth. These initiatives are expected to help stabilize results as market conditions fluctuate. Technology and AI investments: Continued rollout of AI tools and upgraded systems is expected to enhance productivity, improve customer service, and reduce expenses. Management believes that leveraging these technologies will support both operational efficiency and future growth opportunities. Competitive and regulatory landscape: The company remains cautious in the face of heightened competition, particularly from package writers in the middle market. Regulatory developments such as the California pure premium rate increase may provide opportunities, but management noted its rates are already aligned with market adequacy, limiting immediate benefit. Looking ahead, the StockStory team will be watching (1) the adoption and premium growth from new product lines such as excess workers’ compensation and large deductible offerings, (2) the continued effectiveness of AI and technology upgrades in driving cost discipline and operational efficiency, and (3) any changes in the competitive landscape, particularly in core geographies like California. Progress on these milestones will be key to tracking Employers Holdings’ ability to execute its strategy and sustain profitability. Employers Holdings currently trades at $51.48, up from $49.74 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free for active Edge members). WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses. But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributed significant per-share earnings growth to the compounding benefits of their recapitalization and accretive share repurchases, despite flat net income. Net premium earned declined 12% as a result of intentional pricing and underwriting actions designed to prioritize profitability over volume in specific customer segments and geographies. The company is actively narrowing its focus to the core small business segment while exiting less profitable middle-market business where competition is described as irrational. Underwriting expenses improved by 7% year-over-year, driven by a reduction in personnel costs and a strategic focus on innovation and variable expense management. Investment income was bolstered by a 40 basis point increase in book yields following a strategic investment rebalancing executed in the prior year. The company successfully launched an excess workers' compensation product line in June, which saw immediate traction with over 200 submissions and $4 million in premium by July. Management expects the California Insurance Commissioner's 6.6% advisory rate increase to provide a significant opportunity for improved results in their largest market starting September 1st. The company plans to round out its workers' compensation offerings by developing other loss-sensitive products, including a large deductible product. Future growth initiatives will leverage AI tools for product development and operational productivity, following a 94% staff adoption rate of AI technologies. Capital allocation strategy remains focused on share repurchases, with $113 million in remaining authorization through 2027 to be used opportunistically based on stock price discounts to intrinsic value. Management anticipates that new product lines like excess workers' comp will provide necessary diversification and optionality throughout different market cycles. A $2.5 million premium restitution from a former policyholder provided a non-recurring benefit, reducing the second quarter combined ratio by approximately 1.5 percentage points. Management is maintaining a cautious stance on loss reserves for recent accident years due to uncertainty surrounding cumulative trauma (CT) claims, particularly in California. The company noted that while the workers' comp market is softening, medical inflation remains benign and has not yet shown alarming trends from tariffs or other macro factors. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management stated they were already ahead of the curve on rate adequacy in California and had much of this increase already baked into their current rates. They do not expect the increase to impact their book significantly but view it as a positive sign that the commissioner is addressing state-specific issues. Fierce competition is coming from package writers and in the middle market space, leading the company to walk away from business that does not meet margin requirements. Management characterized some competitor behavior in certain jurisdictions as irrational, which explains why premium volume is down more than policy counts. The company is being ultra-cautious with recent accident years to protect the balance sheet against the uncertainty of cumulative trauma claims. Management confirmed that their re-underwriting efforts to address these specific risks are more than 50% complete. The company is transitioning its AI cost management as models move from license-based to usage-based fees. AI is being utilized for internal productivity across almost every department and will be used to build out the upcoming large deductible product line.

Company to Host Conference Call on Thursday, July 30, 2026, at 11:00 a.m. Eastern Time RENO, Nev., July 29, 2026 (GLOBE NEWSWIRE) -- Employers Holdings, Inc. (the “Company”) (NYSE:EIG), a holding company with subsidiaries that are specialty providers of workers’ compensation insurance, excess workers’ compensation, and related services, today reported financial results for its second quarter ended June 30, 2026. Second Quarter 2026 Financial Highlights(All comparisons versus second quarter 2025) Net income of $29.1 million ($1.59 per diluted share), versus $29.7 million ($1.23 per diluted share); Adjusted net income of $12.8 million ($0.70 per diluted share), versus $11.5 million ($0.48 per diluted share); Gross premiums written of $163.4 million, versus $203.3 million; Net premiums earned of $174.1 million, versus $198.3 million; Loss and LAE ratio decreased to 70.2% from 70.7%; Commission expense ratio improved to 12.8% from 13.2%; Underwriting expense ratio increased to 22.8% from 21.7%; GAAP combined ratio of 105.8% (106.7% excluding the LPT), versus 105.6% (106.4% excluding the LPT); Net investment income increased to $27.4 million from $27.1 million; Net realized and unrealized gains on investments of $18.7 million, versus $20.9 million; Policies in-force of 127,601, versus 134,421; Book value per share including the Deferred Gain of $52.58, an increase of 9.0%, and Adjusted book value per share of $53.26, up 5.6% (both growth rates include dividends declared); and Returned $34.0 million to stockholders through a combination of share repurchases and regular quarterly dividends. CEO Commentary Chief Executive Officer Katherine Antonello commented: “This was another quarter defined by discipline, and the results of that discipline are becoming visible where it matters most, in our per-share results. Diluted earnings per share grew 29% year-over-year and adjusted earnings per share grew 46%, even as net income was essentially flat. These results reflect the accretive impact of our recapitalization strategy and the share repurchases we have executed as a part of it. Our net premiums earned were $174.1 million, a decline of 12%, reflecting the pricing and underwriting actions we have undertaken to prioritize profitability over volume. Policies in-force declined 5% year-over-year, a notably smaller reduction than the decline in premium, reflecting our deliberate shift toward our core small business segment. Our loss and LAE ratio improved to 70.2% from 70.7% and our second quarter full actuarial review confirmed no prior period development on our voluntary business — both results consistent with our expectations and the underwriting discipline we have maintained. Our underwriting expenses declined $3.4 million year-over-year, though the expense ratio increased slightly given the smaller premium base it is measured against.” Ms. Antonello continued, “Our investment portfolio delivered net investment income of $27.4 million, with a book yield of 4.9% — a 40 basis-point increase from the prior year — reflecting the benefits of our 2025 investment rebalancing. We remain focused on prudent capital management. We returned $34.0 million to shareholders during the quarter through $6.3 million in dividends and $27.7 million in share repurchases. Book value per share, including the Deferred Gain, grew 9.0% year-over-year, and adjusted book value per share grew 5.6%, a tangible measure of the value we continue to build. As we look ahead, profitable growth remains our north star, and diversifying our workers' compensation product offering is a meaningful part of how we get there. In June, we began writing excess workers' compensation, marking the successful launch of a new product line. We are excited about the opportunities ahead.” Summary of Consolidated Second Quarter 2026 Results (All comparisons versus second quarter 2025, unless otherwise noted) Gross premiums written were $163.4 million, a decrease of 19.6%, reflecting the deliberate pricing and underwriting actions commenced in 2025 to prioritize profitability over volume. These actions reduced new and renewal business premiums in the quarter, partially offset by an increase in our final audit premium accrual and a $2.5 million premium restitution from a former policyholder. The premium restitution also favorably impacted our second quarter combined ratio by approximately 150 basis points. Losses and LAE were $122.3 million, a decrease of 12.7%, due primarily to lower earned premiums. The Company's current accident year loss and LAE ratio excluding LPT related to our voluntary business was 72.0%, consistent with the same ratio recorded for accident year 2025. Additionally, no prior year loss reserve development was recognized on our voluntary business. Commission expense was $22.2 million, a decrease of 14.9%. The Company’s commission expense ratio was 12.8%, compared to 13.2% a year ago. The decrease in commission expense and ratio was primarily driven by lower agency incentive accruals and a reduced proportion of new business premiums written. Underwriting expenses were $39.7 million, a decrease of 7.9%. The Company’s underwriting expense ratio was 22.8%, compared to 21.7% a year ago. The decrease in our underwriting expenses was primarily driven by reduced policyholder dividends, bad debt, and compensation-related expenses. The increase in underwriting expense ratio was due to the decrease in premiums earned. Net investment income was $27.4 million, an increase of 1.1%. The increase was primarily attributable to higher yields on fixed maturity securities resulting from our investment rebalancing activity in 2025. Net realized and unrealized gains on investments reflected on the income statement were $18.7 million compared to $20.9 million a year ago. The results from both periods were driven primarily by net gains in our equity investments. Interest and financing expenses were $1.3 million versus less than $0.1 million a year ago. The increase in interest expense relates to the Company’s issuance of $125.0 million in senior debt associated with the recapitalization plan announced in the fourth quarter of 2025. Federal and state income tax expense was $5.6 million (16.1% effective rate), compared to $7.3 million (19.7% effective rate) a year ago. The effective rates in each period reflect applicable income tax benefits and exclusions associated with tax-advantaged investment income, LPT adjustments, an income adjustment related to the Company's predecessor organization, the Nevada State Industrial Insurance System, deferred gain amortization, and tax credits utilized. Third Quarter 2026 Dividend Declaration On July 29, 2026, the Company’s Board of Directors declared a regular quarterly dividend of $0.34 per share. The dividend is payable on August 26, 2026 to stockholders of record as of August 12, 2026. Stock Repurchases During the second quarter of 2026, the Company repurchased 651,752 shares of its common stock at an average price of $42.43 per share. The Company has $113.0 million of repurchase authorization remaining under the 2026 Program. Earnings Conference Call and Webcast The Company will host a conference call on Thursday, July 30, 2026, at 11:00 a.m. Eastern Time / 8:00 a.m. Pacific Time. To participate in the live conference call, you must first register here. Once registered you will receive dial-in numbers and a unique PIN number. The webcast will be accessible on the Company’s website at www.employers.com through the “Investors” link. Reconciliation of Non-GAAP Financial Measures to GAAP Within this earnings release we present various financial measures, some of which are “non-GAAP financial measures” as defined in Regulation G pursuant to Section 401 of the Sarbanes-Oxley Act of 2002. A description of these non-GAAP financial measures, as well as a reconciliation of such non-GAAP measures to our most directly comparable GAAP financial measures is included in the attached Financial Supplement. Management believes that these non-GAAP measures are important to the Company’s investors, analysts and other interested parties who benefit from having an objective and consistent basis for comparison with other companies within our industry. Management further believes that these measures are more relevant than comparable GAAP measures in evaluating our financial performance. The information in this press release should be read in conjunction with the Financial Supplement that is attached to this press release and available on our website. Forward-Looking Statements In this press release, the Company and its management discuss and make statements based on currently available information regarding their intentions, beliefs, current expectations, and projections of, among other things, the Company’s future performance, economic or market conditions, including current or future levels of inflation, potential implications of increased tariffs, changes in interest rates, labor market expectations, catastrophic events or geo-political conditions, legislative or regulatory actions or court decisions, business growth, retention rates, loss costs, claim trends and the impact of key business initiatives, future technologies and planned investments. Certain of these statements may constitute “forward-looking” statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and are often identified by words such as “may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “target,” “project,” “intend,” “believe,” “estimate,” “predict,” “potential,” “pro forma,” “seek,” “likely,” or “continue,” or other comparable terminology and their negatives. The Company and its management caution investors that such forward-looking statements are not guarantees of future performance. Risks and uncertainties are inherent in the Company’s future performance. Factors that could cause the Company’s actual results to differ materially from those indicated by such forward-looking statements include, among other things, those discussed or identified from time to time in the Company’s public filings with the Securities and Exchange Commission (SEC), including the risks detailed in the Company’s Quarterly Reports on Form 10-Q and the Company’s Annual Reports on Form 10-K. Except as required by applicable securities laws, the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Filings with the SEC The Company’s filings with the SEC and its quarterly investor presentations can be accessed through the “Investors” link on the Company’s website, www.employers.com. The Company’s filings with the SEC can also be accessed through the SEC's EDGAR Database at www.sec.gov (EDGAR CIK No. 0001379041). About Employers Holdings, Inc. Employers Holdings, Inc. (NYSE: EIG), is a holding company with subsidiaries that are specialty providers of workers’ compensation insurance, excess workers’ compensation, and related services (collectively “EMPLOYERS®”) focused on small and mid-sized businesses engaged in lower hazard industries with its guaranteed cost product and self-insured enterprises with its excess workers’ compensation product. EMPLOYERS leverages over a century of experience to deliver comprehensive coverage solutions that meet the unique needs of its customers. Drawing from its long history and extensive knowledge, EMPLOYERS empowers businesses by protecting their most valuable asset – their employees – through exceptional claims management, loss control, and risk management services, to help businesses create safer work environments. EMPLOYERS is also proud to offer Cerity®, which is focused on providing digital-first, direct-to-consumer workers’ compensation insurance solutions with fast and affordable coverage options through a user-friendly online platform. EMPLOYERS operates throughout the United States, apart from four states that are served exclusively by their state funds. Workers’ Compensation insurance is offered through Employers Insurance Company of Nevada, Employers Compensation Insurance Company, Employers Preferred Insurance Company, Employers Assurance Company and Cerity Insurance Company, and Excess Workers’ Compensation is offered through Employers Assurance Company. Each of EMPLOYERS insurance subsidiaries is rated A (Excellent) by AM Best. Not all companies do business in all jurisdictions. EIG Services, Inc., and Cerity Services, Inc., are subsidiaries of Employers Holdings, Inc. EMPLOYERS® is a registered trademark of EIG Services, Inc., and Cerity® is a registered trademark of Cerity Services, Inc. For more information, please visit www.employers.com, www.employers.com/excess-workers-compensation and www.cerity.com. Contact Information Michael Pedraja (775) 327-2706 or [email protected] Total losses and LAE shown in the above table exclude amortization of the Deferred Gain, which totaled $1.5 million and $1.7 million for the three months ended June 30, 2026 and 2025, respectively, and $2.7 million and $3.3 million for the six months ended June 30, 2026 and 2025, respectively. Non-GAAP Financial Measures Within this earnings release we present the following measures, each of which are "non-GAAP financial measures." A reconciliation of these measures to the Company's most directly comparable GAAP financial measures is included herein. Management believes that these non-GAAP measures are important to the Company's investors, analysts and other interested parties who benefit from having an objective and consistent basis for comparison with other companies within our industry. Management further believes that these measures are more relevant than comparable GAAP measures in evaluating our financial performance. The LPT Agreement is a non-recurring transaction that no longer provides any ongoing cash benefits to the Company. Management believes that providing non-GAAP measures that exclude the effects of the LPT Agreement (amortization of deferred reinsurance gain, adjustments to LPT Agreement ceded reserves and adjustments to the contingent commission receivable) is useful in providing investors, analysts and other interested parties a meaningful understanding of the Company's ongoing underwriting performance. Deferred reinsurance gain (Deferred Gain) reflects the unamortized gain from the LPT Agreement. This gain has been deferred and is being amortized using the recovery method, whereby the amortization is determined by the proportion of actual reinsurance recoveries to total estimated recoveries, except for the contingent profit commission, which was amortized through June 30, 2024, the date of its final determination. Amortization is reflected in losses and LAE incurred. Adjusted net income (see Page 3 for calculations) is net income excluding the effects of the LPT Agreement, and net realized and unrealized gains and losses on investments (net of tax), and any miscellaneous non-recurring transactions (net of tax). Management believes that providing this non-GAAP measure is helpful to investors, analysts and other interested parties in identifying trends in the Company's operating performance because such items have limited significance to its ongoing operations or can be impacted by both discretionary and other economic factors and may not represent operating trends. Stockholders' equity including the Deferred Gain (see Page 8 for calculations) is stockholders' equity including the Deferred Gain. Management believes that providing this non-GAAP measure is useful in providing investors, analysts and other interested parties a meaningful measure of the Company's total underwriting capital. Adjusted stockholders' equity (see Page 8 for calculations) is stockholders' equity including the Deferred Gain, less accumulated other comprehensive income (loss) (net of tax). Management believes that providing this non-GAAP measure is useful to investors, analysts and other interested parties since it serves as the denominator to the Company's adjusted return on stockholders' equity metric. Return on stockholders' equity and Adjusted return on stockholders' equity (see Page 4 for calculations). Management believes that these profitability measures are widely used by our investors, analysts and other interested parties. Book value per share, Book value per share including the Deferred Gain, and Adjusted book value per share (see Page 8 for calculations). Management believes that these valuation measures are widely used by our investors, analysts and other interested parties. Net income excluding LPT (see Page 3 for calculations). Management believes that these performance and underwriting measures are widely used by our investors, analysts and other interested parties.

Employers Holdings (EIG) came out with quarterly earnings of $0.7 per share, beating the Zacks Consensus Estimate of $0.61 per share. This compares to earnings of $0.48 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +14.75%. A quarter ago, it was expected that this provider of workers-compensation insurance would post earnings of $0.57 per share when it actually produced earnings of $0.53, delivering a surprise of -7.02%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Employers Holdings, which belongs to the Zacks Insurance - Accident and Health industry, posted revenues of $220.2 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 8.47%. This compares to year-ago revenues of $246.3 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Employers Holdings shares have added about 15.8% since the beginning of the year versus the S&P 500's gain of 8.5%. While Employers Holdings has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Employers Holdings was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.63 on $199.2 million in revenues for the coming quarter and $2.15 on $807.8 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Insurance - Accident and Health is currently in the bottom 18% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Trupanion (TRUP), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 5. This provider of medical insurance covering cats and dogs is expected to post quarterly earnings of $0.11 per share in its upcoming report, which represents a year-over-year change of -50%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Trupanion's revenues are expected to be $389.65 million, up 10.2% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Employers Holdings Inc (EIG) : Free Stock Analysis Report Trupanion, Inc. (TRUP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

RENO, Nev., June 26, 2026 (GLOBE NEWSWIRE) -- Employers Holdings, Inc. (the “Company”) (NYSE:EIG) will release its second quarter 2026 financial results after market close on Wednesday, July 29, 2026, after which these materials will be available on the Company’s website at www.employers.com through the “Investors” link. Conference Call DetailsThe Company will review these financial results via a conference call and webcast on Thursday, July 30, 2026, at 11:00 a.m. ET / 8:00 a.m. PT. To participate in the live conference call, you must register here. Once registered you will receive a dial-in number and a unique PIN number. The webcast will be accessible on the Company’s website at www.employers.com through the “Investors” link. An archived version of the webcast will be accessible on the Company’s website following the live call. About EMPLOYERSEmployers Holdings, Inc. (NYSE: EIG), is a holding company with subsidiaries that are specialty providers of workers’ compensation insurance, excess workers’ compensation, and related services (collectively “EMPLOYERS®”) focused on small and mid-sized businesses engaged in lower hazard industries with its guaranteed cost product and self-insured enterprises with its excess workers’ compensation product. EMPLOYERS leverages over a century of experience to deliver comprehensive coverage solutions that meet the unique needs of its customers. Drawing from its long history and extensive knowledge, EMPLOYERS empowers businesses by protecting their most valuable asset – their employees – through exceptional claims management, loss control, and risk management services, to help businesses create safer work environments. EMPLOYERS is also proud to offer Cerity®, which is focused on providing digital-first, direct-to-consumer workers’ compensation insurance solutions with fast and affordable coverage options through a user-friendly online platform. EMPLOYERS operates throughout the United States, apart from four states that are served exclusively by their state funds. Workers’ Compensation insurance is offered through Employers Insurance Company of Nevada, Employers Compensation Insurance Company, Employers Preferred Insurance Company, Employers Assurance Company, and Cerity Insurance Company, and Excess Workers’ Compensation is offered through Employers Assurance Company. Each of EMPLOYERS insurance subsidiaries is rated A (Excellent) by AM Best. Not all companies do business in all jurisdictions. EIG Services, Inc., and Cerity Services, Inc., are subsidiaries of Employers Holdings, Inc. EMPLOYERS® is a registered trademark of EIG Services, Inc., and Cerity® is a registered trademark of Cerity Services, Inc. For more information, please visit www.employers.com, www.employers.com/excess-workers-compensation/, and www.cerity.com. Contact InformationMichael Pedraja (775) 327-2706 or [email protected]

As the Q1 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the property & casualty insurance industry, including Employers Holdings (NYSE:EIG) and its peers. Property & Casualty (P&C) insurers protect individuals and businesses against financial loss from damage to property or from legal liability. This is a cyclical industry, and the sector benefits when there is 'hard market', characterized by strong premium rate increases that outpace loss and cost inflation, resulting in robust underwriting margins. The opposite is true in a 'soft market'. Interest rates also matter, as they determine the yields earned on fixed-income portfolios. On the other hand, P&C insurers face a major secular headwind from the increasing frequency and severity of catastrophe losses due to climate change. Furthermore, the liability side of the business is pressured by 'social inflation'—the trend of rising litigation costs and larger jury awards. The 32 property & casualty insurance stocks we track reported a mixed Q1. As a group, revenues beat analysts’ consensus estimates by 1.9%. In light of this news, share prices of the companies have held steady as they are up 3.2% on average since the latest earnings results. With roots in Nevada and a strong concentration in California where 45% of its premiums are generated, Employers Holdings (NYSE:EIG) is a specialty provider of workers' compensation insurance focused on small and select businesses engaged in low-to-medium hazard industries across the United States. Employers Holdings reported revenues of $207.6 million, up 2.5% year on year. This print fell short of analysts’ expectations by 1.9%. Overall, it was a softer quarter for the company with a significant miss of analysts’ net premiums earned and book value per share estimates. Chief Executive Officer Katherine Antonello commented: “This was a quarter defined by discipline. We made a deliberate choice to prioritize underwriting quality over volume, and the results reflect that commitment: our underwriting expense ratio improved, our actuarial estimates came in on target, and we returned $83.0 million to shareholders while growing book value per share including the Deferred Gain by 8.9%." Interestingly, the stock is up 11.4% since reporting and currently trades at $47.66. Read our full report on Employers Holdings here, it’s free. Founded in 1893 during America's westward expansion when property records were often disputed, Stewart Information Services (NYSE:STC) provides title insurance and real estate services, helping homebuyers, sellers, and lenders verify property ownership and protect against title defects. Stewart Information Services reported revenues of $781.3 million, up 27.7% year on year, outperforming analysts’ expectations by 4.6%. The business had an incredible quarter with a beat of analysts’ EPS estimates. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 1.3% since reporting. It currently trades at $67.44. Is now the time to buy Stewart Information Services? Access our full analysis of the earnings results here, it’s free. Issuing more title insurance policies than any other company in the United States, Fidelity National Financial (NYSE:FNF) provides title insurance and escrow services for real estate transactions while also offering annuities and life insurance through its F&G subsidiary. Fidelity National Financial reported revenues of $3.23 billion, up 18.2% year on year, falling short of analysts’ expectations by 10.7%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS estimates. Fidelity National Financial delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 8.8% since the results and currently trades at $46.77. Read our full analysis of Fidelity National Financial’s results here. Starting as a Florida "take-out" insurer that assumed policies from the state-backed Citizens Property Insurance Corporation, HCI Group (NYSE:HCI) provides property and casualty insurance, primarily homeowners coverage, while leveraging proprietary technology to improve underwriting and claims processing. HCI Group reported revenues of $242.9 million, up 12.2% year on year. This result missed analysts’ expectations by 1.1%. More broadly, it was actually a strong quarter as it recorded a solid beat of analysts’ book value per share estimates and an impressive beat of analysts’ net premiums earned estimates. The stock is up 12% since reporting and currently trades at $172.31. Read our full, actionable report on HCI Group here, it’s free. Born from a vision to help pet owners avoid economic euthanasia when faced with expensive veterinary bills, Trupanion (NASDAQ:TRUP) provides medical insurance for cats and dogs through data-driven, vertically-integrated products priced specifically for each pet's unique characteristics. Trupanion reported revenues of $384 million, up 12.3% year on year. This number surpassed analysts’ expectations by 1.1%. Overall, it was an exceptional quarter as it also put up a beat of analysts’ EPS estimates and an impressive beat of analysts’ book value per share estimates. The stock is down 1.8% since reporting and currently trades at $23.57. Read our full, actionable report on Trupanion here, it’s free. Late in 2025 into early 2026, there was hand-wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. 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Underwriting discipline: Management prioritized underwriting quality over volume, producing gross premiums written of $181M (down 15% from $212M) and essentially flat earned premium (‑1%), and expects this "teens"-type reduction to continue while being selective in competitive markets like California and Massachusetts. Losses and profitability: Losses and LAE rose to $129M with the current accident‑year loss & LAE ratio at 72% and no reserve strengthening required, but adjusted net income fell to $10.3M from $21.3M a year earlier. Capital returns and recapitalization: Employers returned $83M in Q1 (including repurchasing >1.8M shares for $76.9M at an average $42.42), completed a $125M debt recap, raised the quarterly dividend to $0.34, and approved a new $125M share‑repurchase authorization through Dec. 31, 2027. Interested in Employers Holdings Inc? Here are five stocks we like better. Employers (NYSE:EIG) executives repeatedly emphasized “discipline” on the company’s first-quarter 2026 earnings call, describing a deliberate decision to prioritize underwriting quality over premium volume as market competition intensifies in certain areas of workers’ compensation. Chief Executive Officer Kathy Antonello said the approach showed up in quarterly results through lower underwriting expenses, stable loss trends, and ongoing capital returns. “We made a deliberate choice to prioritize underwriting quality over volume, and the numbers reflect that conviction,” Antonello said. → Corning Beats Q1 Estimates but Drops 9% on Guidance Miss Mike Pedraja, Employers’ chief financial officer, said gross premiums written were $181 million, down from $212 million in the prior-year quarter, a 15% decrease “due primarily to a reduction in new business writings.” Earned premium was “essentially flat year-over-year,” Antonello added, down about 1%, as pricing and underwriting actions taken in 2025 continued to flow through results. On the company’s outlook for that top-line pressure, Pedraja said the trend was in line with expectations. “This is exactly as we expected and planned,” he told Karol Chmiel of Citizens, adding that the company anticipated “teens type of reduction” to continue “throughout the rest of the year.” Antonello also said the company expects something similar throughout 2026, while “introducing new areas throughout the year too.” → Meta Posted Its Best Sales Growth Since 2021—So Why Did Shares Fall? In response to a question about audit premium adjustments, Pedraja said the impact was “relatively small,” citing $5 million of adjustments in the quarter. He also noted payroll trends have moderated compared with the post-COVID period. “The payroll increases are not developing as they were after COVID,” he said. Employers reported losses and loss adjustment expenses of $129 million, compared with $121 million a year earlier, according to Pedraja. He said the quarter included no prior-period development on the company’s voluntary business, and the current accident year loss and LAE ratio was 72%, consistent with 2025. → Is Oracle Undervalued as Cloud Growth Accelerates? Antonello said the company’s first-quarter actuarial review “confirmed the adequacy of our prior year reserves with no strengthening required.” Addressing a question from Mark Hughes of Truist about potential future reserve development, Antonello described the company’s process: an actual-versus-expected analysis at the end of the first and third quarters, and a deeper “full analysis” at the end of the second and fourth quarters. She said first-quarter results were close to expectations. “This quarter, everything came in right around where we expected, so we did not feel compelled to make a change,” she said, adding that decisions later in the year would depend on what emerges in subsequent reviews. On industry topics, Antonello said she did not expect anything “significant” to emerge in near-term discussions around inflation or medical severity, based on what Employers was seeing internally. “We’re not seeing anything significant that’s impacting our book of business,” she said, noting the company tracks an internal prescription drug index that was “up slightly” but “not…alarming.” Management highlighted improvements in underwriting efficiency. Underwriting expenses were $41 million, down from $43 million a year ago, which Pedraja attributed to expense management efforts including “reduced personnel costs and other variable costs such as policyholder dividends.” Antonello said the underwriting expense ratio improved to 22.6% from 23.4% a year ago. Commission expense was $24 million, up from $23 million, which Pedraja said was driven primarily by “a non-recurring 2025 favorable adjustment.” On investments, Pedraja said that excluding returns from private equity partnership investments, first-quarter net investment income exceeded last year’s by $1.5 million, helped by higher book yields and redeployment from a prior-year rebalancing. He said fixed maturities ended the quarter with a modified duration of 4.4 and average credit quality of A+. The weighted average book yield was 4.9% at quarter end, compared to 4.5% a year earlier. Adjusted net income—excluding net realized and unrealized investment gains and losses and the benefit of loss portfolio transfer (LPT) deferred gain amortization—was $10.3 million, down from $21.3 million last year, Pedraja said. Employers continued its capital return program during the quarter. Antonello said the company returned $83 million to shareholders in the first quarter through share repurchases and dividends, following $215 million returned in 2025. Pedraja said the company repurchased more than 1.8 million shares at an average price of $42.42 per share, totaling $76.9 million. He said the average repurchase price represented a 17% discount to book value per share including the deferred gain. He also disclosed that from April 1 through April 28, 2026, Employers repurchased an additional 353,547 shares at an average price of $42.21 per share. Antonello said book value per share, including the deferred gain, increased to $51.26. She also said the company completed a $125 million new debt issuance tied to its recapitalization plan, consisting of $105 million from the Federal Home Loan Bank and $20 million from its credit facility, for a weighted average pre-tax interest rate of 4.1%. In addition, Antonello said the board declared a second-quarter 2026 dividend of $0.34 per share, a 6.25% increase from the prior quarter, and approved a new $125 million share repurchase authorization through Dec. 31, 2027. In the Q&A, Antonello spent significant time discussing pricing dynamics, particularly in California and certain middle-market segments. She said she previously would have described pricing as “competitive,” but now characterizes it as “closer to getting somewhat irrational in some jurisdictions and premium bands,” specifically citing guaranteed cost middle market. Antonello said she has seen some carriers exiting certain states and classes, naming New York, California, and Massachusetts as examples of where exits have occurred across the market. She said Employers “pulled back significantly” in Massachusetts, reduced exposure in certain class codes, and cut ties with MGAs the company believed were underperforming. On California, Antonello pointed to a recent development at the California Bureau. “The California Bureau voted earlier this month to submit a second consecutive double-digit pure premium rate increase to the Commissioner,” she said, aligning with underwriting conditions the company has observed in the state. Antonello provided detail on renewal pricing, saying that when adjusting for changes in mix of business, Employers saw payrolls up about 0.5% and average renewal rates “countrywide increased about 6%” when comparing the first quarter of 2026 to the first quarter of 2025, with “a significant portion of that…coming from California,” where the company is achieving “double-digit rate increases” on renewals. She also said submission volumes were elevated. “Submissions were the highest that we’ve seen across the company and specifically in California in Q1 of 2026 that we’ve ever seen,” Antonello said, while adding that Employers is being selective about where it quotes and is willing to walk away from business when pricing is, in her view, unreasonable. Antonello said growth initiatives include entering new underwriting segments, appointing new agents in areas with better pricing margin, and a recently launched Excess Workers’ Compensation product. Antonello also discussed the company’s push to deploy artificial intelligence tools across the organization, saying Employers has moved “from AI experimentation to deployment of products using AI.” She said the company recently gathered about 400 employees to introduce its AI implementation strategy. She said capabilities used in the company’s rapid entry into excess workers’ compensation are being applied to improve underwriting insights, automate premium audit and claims operations, and engage customers. Antonello also said Employers “became the first insurance carrier to bring quoting directly into ChatGPT,” which she said was enabled by the company’s patented technology designed to reach business owners where they engage. Looking ahead, Antonello said the company believes it is “well-positioned and well-capitalized,” citing approximately $1 billion of total capitalization and an AM Best A rating. Employers Holdings, Inc (NYSE: EIG) is a publicly traded property and casualty insurance holding company headquartered in Des Moines, Iowa. Through its subsidiaries, Employers Mutual Casualty Company and Employers Preferred Insurance Company, the firm specializes in providing workers' compensation coverage alongside an array of commercial insurance products. Its service offerings include general liability, commercial auto, businessowners policies and umbrella coverages, tailored to meet the risk-management needs of small and mid-sized businesses across multiple industries. The company markets its insurance solutions primarily through a network of independent agencies and brokers, leveraging local market expertise to underwrite policies that address the unique exposures faced by clients in manufacturing, construction, healthcare, retail and service sectors. The article "Employers Q1 Earnings Call Highlights" was originally published by MarketBeat.