EIG

Employers Holdings just gave investors a reality check. The stock dropped about 4.5% to around $49 in the first full trading session after its Q3 2026 report, even though the headline number flipped the workers compensation insurer back to profit with earnings per share of $0.65. The near term reaction focuses on softer trading and a modest quarterly profit. The more important story sits in the longer arc. Management is still working through underwriting repairs after prior reserve pain, in a business where a combined ratio even slightly above 100% can quietly eat away at value year after year. Like the underwriting story at Employers Holdings, but concerned about how a few softer profit quarters might affect long-term compounding? Consider exploring the list of solid balance sheet and fundamentals stocks (23 results). - Total Revenue (Q3 2026 vs. Q3 2025): US$189.3 million vs. US$239.3 million (down about 21%). - Net Income, Excl. Extra Items (Q3 2026 vs. Q3 2025): profit of US$11.6 million vs. loss of US$8.3 million (swung back to profitability). - Basic EPS (Q3 2026 vs. Q3 2025): US$0.65 vs. a loss of US$0.36 per share (moved from loss to positive earnings). - Combined Ratio (Q3 2026 vs. Q3 2025, an underwriting profitability metric where under 100% is typically targeted): 108.4% vs. 129.7% (meaningfully improved but still above breakeven). Ask Charlie what Employers Holdings' AI push means for future margins. Optimists argue that Employers Holdings can grow beyond its core small commercial base while using technology to protect margins. "Expansion of Employers Holdings into excess workers' compensation, where management has already begun writing policies and reported strong early broker interest and submission flow, could add a new premium stream and support revenue growth as this product scales over time." Excess workers' comp is now real, not just a plan, with 31 accounts and US$6.5m of premium year to date. That is a milestone. Yet overall gross written premium declined 18% and policies in force fell 8%, so new lines are not offsetting the underwriting clean up yet. Skeptics worry that California risk and shrinking premium could keep Employers Holdings stuck with weak underwriting results. "If the competitive workers' compensation market, including what management has described as increasingly aggressive pricing by package writers and other carriers in certain segments, continues to pressure new and renewal business, Employers Holdings could see ongoing declines in gross premiums written and policies in force that weigh on revenue and constrain earnings growth." That concern is visible. Gross written premium fell 18% and policy count dropped 8% as the insurer walked away from less attractive segments. The combined ratio improved to 108.4% but still sits above the 100% profitability line, so remediation has not yet translated into clean underwriting earnings. One Narrative has put a figure on that disagreement. → See the Narrative with its higher Fair Value, assumptions and all. Employers Holdings illustrates how uneven a repair phase can appear across individual earnings reports. The real opportunity is spotting stocks that might be undervalued before improved fundamentals gain broader recognition. - Company 1 - 40% below our estimate - builds tracker and control platforms that gain pricing power as storage and inverter contracts consolidate into its ecosystem. - Company 2 - 36% below our estimate - ramps new high horsepower engine capacity after securing long term data center power contracts linked to heavier compute workloads. - Company 3 - 23% below our estimate - embeds AI assistants directly into everyday productivity and coding tools that enterprises already license at scale. Three companies from the same screener. Open the full list of 30 companies trading below our fair value estimates → This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include EIG. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

- Interested in Employers Holdings Inc? Here are five stocks we like better. - Employers returned to profitability in Q3 2026, reporting $0.64 in diluted net income per share versus a $0.36 loss a year earlier. The improvement reflected better underwriting results, higher investment income, and the absence of $38 million in prior-year reserve strengthening. - The company's underwriting actions reduced gross premiums written by 18% and policies in force by 8%, while its GAAP combined ratio improved to 108.4% from 129.7%. Employers expects its targeted re-underwriting program to be completed by the fourth quarter. - Investment income rose 23.8% to $32.3 million, aided by higher fixed-income yields and private-equity distributions. Employers also returned $24.4 million to shareholders through buybacks and dividends and declared a $0.34 per-share fourth-quarter dividend. Employers (NYSE:EIG) reported third-quarter 2026 net income of $0.64 per diluted share, compared with a net loss of $0.36 per diluted share a year earlier, as the workers' compensation insurer cited improved underwriting results and higher investment income. Adjusted net income was $0.71 per diluted share, compared with an adjusted net loss of $1.10 per diluted share in the prior-year quarter. Chief Executive Officer Kathy Antonello said the year-over-year earnings improvement was driven primarily by the absence of $38 million in reserve strengthening recorded during the third quarter of 2025. The company's loss and loss-adjustment-expense ratio improved to 71.2% from 97.1% a year ago, while its GAAP combined ratio improved to 108.4% from 129.7%. → Heavy Metal: Why Nucor Could Be an Overlooked AI Infrastructure Winner "That is significant progress, but we are not satisfied with that level and will continue to strive for underwriting improvement," Antonello said. Gross premiums written declined 18% to $151.1 million, while net premiums earned fell 17% to $160.2 million. Management attributed the reductions to pricing and underwriting measures begun in 2025 to prioritize profitability during what Antonello described as a prolonged soft market. → Boeing Got Its MAX 10 Approval, But Q3 Delivered a Reality Check Policies in force declined 8% to roughly 124,000. Antonello said the smaller reduction in policies relative to premiums reflected the company's retention of most small-business customers while exiting selected classes of business. Chief Financial Officer Mike Pedraja said the company's voluntary-business current accident-year loss and LAE ratio, excluding the loss portfolio transfer, was 72%. Employers did not recognize prior-year development on its voluntary business during 2026, according to Antonello. → Johnson Controls Beats the Heat in AI Data Centers The underwriting expense ratio rose to 24.3% from 20.6%, reflecting the smaller premium base, though underwriting expenses themselves fell 1.8% to $38.9 million. Commission expense declined 10.4% to $20.6 million, but the commission expense ratio increased to 12.9% from 12.0%. Pedraja said the higher commission ratio reflected increased commission rates for new business in 2026, along with a one-time adjustment that reduced the third-quarter 2025 ratio. Antonello told analysts that the company continues to see upward pressure on commissions for new business as carriers compete in the softer market, although Employers is not pursuing higher commissions in every area. Antonello said the company's re-underwriting program has been targeted to specific classes and jurisdictions rather than broadly applied across its portfolio. She said the actions, which began near the end of 2025, are expected to work through the full book by the fourth quarter of 2026. Once affected policies have been non-renewed or canceled, Antonello said the company expects premiums to stabilize to some extent. She cautioned, however, that growth remains difficult while industry loss costs continue to decline. On claims trends, Antonello said overall frequency continues to decline nationwide in Employers' book, driven by claims outside California. California claim frequency has increased in recent accident years, she said, particularly because of cumulative-trauma claims. Excluding cumulative-trauma claims, California frequency through 2025 continued to trend downward, according to Antonello. The company has seen stable or lower claim severity overall, she added. Early 2026 indications point to possible severity pressure outside California, but Antonello said that was entirely driven by several large losses rather than a broad-based trend. Employers' audit accrual stood at approximately $23 million, with no change during the third quarter. The company recognized about $2.3 million of non-compliance premium and reported that cancellations were relatively flat year over year. Antonello said submissions and quotes have increased significantly, which may indicate that agents are shopping business more actively for better pricing or commissions. Net investment income increased 23.8% to $32.3 million, supported by $5.6 million in private-equity investment distributions and higher fixed-income yields following the company's 2025 investment rebalancing. Excluding private-equity distributions, net investment income was approximately $26.7 million, up 6% from the prior-year period. The fixed-income portfolio yield reached 5%, up 40 basis points from a year earlier. Pedraja said the portfolio had a modified duration of 4.3 and an average credit quality of A+. Higher interest rates reduced the market value of fixed-maturity securities, contributing to an increase in accumulated other comprehensive loss of $61.7 million to $74 million. Stockholders' equity was $785.6 million at quarter-end, down from $858.8 million at June 30. Pedraja said the unrealized losses were related to interest rates rather than credit quality and should reverse as bonds mature or if rates fall. Book value per share, including the deferred gain, was $49.44, up 2.1% from a year earlier but down 5.3% from the second quarter. Adjusted book value per share was $53.64, up 7.1% year over year and 1.3% sequentially. Antonello said Employers' excess workers' compensation product, launched in June, had written 31 accounts and $6.5 million in premium through the third quarter. The company has also started developing a large-deductible offering targeted for launch in 2027. The company said its technology team used artificial intelligence in two-thirds of eligible work tasks during the quarter. A new AI-driven claims-summary application went live after reviewing the company's inventory of open claims. Antonello said Employers expects the tool to allow its claims team to redeploy more than 50,000 hours over three years. Employers returned $24.4 million to stockholders during the quarter through $18.1 million in share repurchases and $6.3 million in dividends. The company repurchased 373,848 shares at an average price of $48.44 and had $94.9 million remaining under its 2026 repurchase authorization. Its board also declared a fourth-quarter dividend of $0.34 per share, payable Dec. 3 to stockholders of record on Nov. 12. Employers Holdings, Inc (NYSE:EIG) is an insurance holding company specializing in workers' compensation coverage for small and midsize businesses. Through its insurance subsidiaries, the company provides policies designed to cover workplace injuries, related medical expenses, rehabilitation, and wage-replacement benefits. In addition to underwriting workers' compensation insurance, Employers offers claims management, workplace-safety and loss-control services, risk-management resources, and policyholder support. 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 Q3 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for October 2026.

This article first appeared on GuruFocus. Release Date: October 29, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. - Employers Holdings Inc (NYSE:EIG) returned to profitability with net income of $0.64 per diluted share and adjusted net income of $0.71 per diluted share, a significant improvement from losses in Q3 2025. - The loss and LAE ratio improved to 71.2% from 97.1%, and the GAAP combined ratio improved to 108.4% from 129.7%, reflecting progress in restoring underwriting profitability. - Net investment income increased 23.8% to $32.3 million, driven by higher yields and private equity returns, with the portfolio well-positioned to benefit from higher reinvestment rates. - Employers Holdings Inc (NYSE:EIG) launched an excess workers' compensation product with 31 accounts and $6.5 million in premium to date, diversifying its book and reducing frequency exposure. - The company is leveraging AI to drive efficiency, with AI agents writing and testing software and a new claims summary application expected to redeploy over 50,000 hours over three years. - Gross premiums written decreased 18% to $151.1 million, and net premiums earned fell 17%, reflecting deliberate pricing and underwriting actions in a prolonged soft market. - The underwriting expense ratio increased to 24.3% from 20.6% due to a smaller premium base, partially offsetting the improvement in the loss ratio. - Employers Holdings Inc (NYSE:EIG) continues to face elevated frequency in California cumulative trauma claims, which has driven increases in that jurisdiction. - There is upward pressure on commissions for new business due to a competitive market, which could impact margins and win rates. - Book value per share declined 5.3% from the prior quarter due to unrealized losses in the fixed income portfolio from rising interest rates, though credit quality remains strong. - Warning! GuruFocus has detected 5 Warning Sign with EIG. - Is EIG fairly valued? Test your thesis with our free DCF calculator. Q: Kathy, when do you expect the re-underwriting process to be largely completed, and when could the top line stabilize or grow? A: CEO Kathy Antonello said the re-underwriting effort was "very surgical," focused on specific classes and jurisdictions, and began at the end of last year. She expects it to roll through the entire book within the fourth quarter of 2026, after which premiums should stabilize as affected policies are non-renewed or canceled. She noted growth remains difficult in a market where loss costs continue to decline. Q: What are you seeing on claim frequency in your book, and does the uptick other carriers like Hartford are reporting make sense in this market? A: CEO Kathy Antonello said frequency continues to decline countrywide, driven by claims outside California, consistent with long-term industry trends. California frequency has increased in recent accident years, driven by cumulative trauma claims through 2025; excluding those, California frequency continued to trend downward. She said frequency can be lumpy quarter to quarter but overall countrywide decreases persist. Q: Are you seeing upward pressure on commissions, and is it affecting your win rate on quotes? A: CEO Kathy Antonello said yes to all of that. She confirmed the 12% commission ratio a year ago was slightly depressed by a one-time adjustment in Q3 2025. She said there is pressure on commissions for new business as carriers compete to keep market share in a softer market, and while Employers is not chasing higher commissions everywhere, it is raising them in pockets where margin allows. She added there is "a lot of upward pressure on commissions right now." Q: What did audits in the quarter tell you about payrolls, and are you seeing an uptick in cancellations tied to more aggressive competition or shopping? A: CEO Kathy Antonello said audit pickup combined with the change in accrual was very close year over year, with the audit accrual at about $23 million and no change made in Q3 2026. She noted a slight uptick in noncompliance premium, with about $2.3 million recognized this quarter. Cancellations are relatively flat year over year, but submissions and quotes have risen sharply, suggesting agents are shopping business for better prices or higher commissions. Q: Are there particular industries, claim types, or worker populations where frequency pressures are emerging or declines are less pronounced? A: CEO Kathy Antonello said the most elevated frequency and largest increase over the past two to three years is California cumulative trauma in the guaranteed cost workers' comp book. She said the move into excess workers' compensation was intentional to diversify the book and write larger insureds with self-insured retentions less exposed to frequency changes, and Employers was just approved to write excess workers' comp in California. She has not seen frequency trends concentrated in any particular industry. Q: Are rising healthcare costs and affordability pushing claims that were historically handled in healthcare into workers' comp, and are you seeing that in your book? A: CEO Kathy Antonello said overall severity in the book is very steady or lower. Early indications for accident year 2026 in states outside California show some severity pressure, but it is almost entirely driven by a few large losses, not a widespread trend. She said the company's proprietary pharmaceutical index shows costs up slightly versus pre-pandemic levels after a recent uptick recovered most of the post-pandemic decline, but the movement is moderate and nothing in the book suggests an impact. Q: With higher cost of living and states and cities pushing higher minimum wages, are you having conversations with clients about future audit issues as companies do more with fewer workers? A: CEO Kathy Antonello said the company monitors the macroeconomic picture but, given its small-account policyholder base, has not had specific conversations. She is not seeing anything now that would change expectations for future audit pickup, noting conditions are far more stable than coming out of the pandemic when payrolls rose dramatically. Month-to-month audit results show some pickup and some return, but not a lot of movement. Q: How is the new excess workers' compensation product performing, and what is the outlook for additional product expansion? A: CEO Kathy Antonello said the excess workers' comp product launched in June is off to a strong start with 31 accounts and $6.5 million in premium to date, and market feedback on its value-added services has been very positive. The company has begun developing a large deductible product targeted for launch next year, part of a strategy to expand the workers' comp offering and deepen distribution partner relationships. Q: What progress is being made on technology and AI investments, and what are the expected benefits? A: CEO Kathy Antonello said AI adoption is growing each quarter, with AI agents writing, testing, and documenting software and the technology team using AI in two-thirds of eligible work tasks in Q3. A new AI-driven claims summary application went live in October after assessing the entire inventory of open claims, and the company expects it to allow the claims team to redeploy more than 50,000 hours over three years, benefiting insureds, injured workers, and the company. Q: What drove the improvement in third-quarter earnings and the combined ratio, and how did investment income and book value perform? A: CFO Mike Pedraja said net income was $0.64 per diluted share versus a $0.36 loss a year ago, and adjusted net income was $0.71 per share versus an adjusted loss of $1.10, driven primarily by the absence of $38 million of reserve strengthening in Q3 2025. The GAAP combined ratio improved to 108.4% from 129.7%, and the loss and LAE ratio improved to 71.2% from 97.1%. Net investment income rose 23.8% to $32.3 million, including $5.6 million of private equity distributions, and adjusted book value per share was $53.64, up 7.1% year over year. Q: What is driving the decline in premiums and policies in force, and how much capital was returned to shareholders? A: CFO Mike Pedraja said gross premiums written fell 18% to $151.1 million and net premiums earned fell 17% to $160.2 million, reflecting deliberate pricing and underwriting actions begun in 2025 that reduced both new and renewal premiums. Policies in force declined 8% to about 124,000, a smaller decline than premium as the For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Image source: The Motley Fool. Thursday, Oct. 29, 2026 - General Counsel - Jeff Lisenby - Chief Executive Officer - Kathy Antonello - Chief Financial Officer - Mike Pedraja Operator: Day, and thank you for standing by. Welcome to the Q3 2026 Employers Holdings Inc. earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Jeff Lisenby, General Counsel for Employers Holdings. Please go ahead. Jeff Lisenby: Thank you, Danny. Today's call is being recorded and webcast 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 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 only at the time of the call and will not be updated to reflect subsequent developments. The company also uses its website as a means of disclosing material non-public information and for complying with disclosure obligations under SEC Regulation FD. Such disclosures will be included in the Investors section of our website. Accordingly, investors should monitor that section 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. Kathy Antonello: Thank you, Jeff. Good morning, everyone, and welcome to our third quarter 2026 earnings call. Joining me today is Mike Pedraja, our Chief Financial Officer. As usual, I will begin with highlights of our third quarter results and then hand it over to Mike for more detail on our financials. Before we take your questions, I'll come back with some closing thoughts. Our third quarter results reflect the progress we're making to restore our underwriting profitability to historical levels. We reported net income of $0.64 per diluted share, compared to a net loss of $0.36 per diluted share in Q3 of 2025. Adjusted net income was $0.71 per diluted share, compared to an adjusted net loss of $1.10 per diluted share. The improvement in earnings was driven primarily by the absence of the $38 million of reserve strengthening we recorded in the third quarter of 2025. Our loss and LAE ratio improved to 71.2% from 97.1%. We have not recognized any prior year development on our voluntary business this year, and our current accident year loss and LAE ratio, excluding the loss portfolio transfer, is 72%. Our GAAP combined ratio improved to 108.4% from 129.7%. That is significant progress, but we are not satisfied with that level and will continue to strive for underwriting improvement. The reduction in the loss and LAE ratio was slightly offset by the underwriting expense ratio, which was 24.3% compared to 20.6% a year ago and reflected the smaller premium base. Gross premiums written were $151.1 million, a decrease of 18%, and net premiums earned were $160.2 million, a decrease of 17%. These decreases reflect the pricing and underwriting actions we've taken to prioritize profitability in the prolonged soft market. Policies in force declined 8% to about 124,000, a smaller decline than premium as we retained the majority of our small business customers while exiting selected classes of business. Underwriting expenses decreased slightly, primarily because of lower policyholder dividends, lower bad debt expense, and premium taxes and assessments. Our commission expense ratio was 12.9%, compared to 12% a year ago. Our investment portfolio was a positive contributor, with net investment income increasing to $32.3 million, supported by higher yields following our 2025 investment rebalancing and $5.6 million in returns from our private equity investments. With the significant rise in U.S. interest rates, our portfolio is well-positioned to take advantage of higher reinvestment rates, which should contribute to earnings over time. Higher rates also impacted our book value through unrealized market value declines in our fixed income portfolio. The decrease is not a reflection of credit quality. Book value per share, including the deferred gain, was $49.44, up 2.1% from a year ago, but down 5.3% from the end of the second quarter, with both rates including dividends. Adjusted book value per share, which excludes accumulated other comprehensive income, was $53.64, up 7.1% from a year ago and up 1.3% from last quarter, again, with both rates including dividends. With that, Mike will provide a deeper dive into our third quarter financial results, and then I'll return with some closing remarks. Mike? Mike Pedraja: Thank you, Kathy. Gross premiums written were $151.1 million, compared to $183.9 million for the prior year quarter, a decrease of 18%, reflecting the deliberate pricing and underwriting actions we began in 2025. These actions contributed to declines in both new and renewal business premiums in the quarter. Our losses and LAE were $114 million, a decrease of 38.9%. The decrease was due primarily to the absence of last year's reserve strengthening Kathy mentioned. Our voluntary business current accident year loss and LAE ratio, excluding the LPT, was 72%. Our reported loss and LAE ratio was 71.2%, compared to 97.1% a year ago. Commission expense was $20.6 million, a decrease of 10.4%, consistent with lower premiums. Our commission expense ratio was 12.9%, compared to 12% a year ago. The increase in the ratio was due primarily to higher commission rates on new business writings in 2026, combined with a one-time adjustment that reduced the 2025 third quarter ratio. Underwriting expenses were $38.9 million, a decrease of 1.8%. Our underwriting expense ratio was 24.3%, compared to 20.6% a year ago. Overall, our GAAP combined ratio was 108.4%, or 109.2% excluding the LPT, compared to 129.7% and 130.4% a year ago. Net investment income was $32.3 million, an increase of 23.8%. The increase was primarily the result from our private equity investments, which contributed $5.6 million of distributions this quarter, along with higher yields on fixed maturity securities resulting from our investment rebalancing activity in 2025. Excluding the private equity distributions, net investment income was approximately $26.7 million, up 6% from last year. Our fixed income book yield was 5%, a 40 basis point increase from last year, while our modified duration was 4.3, and average credit quality remained strong at A+. Net realized and unrealized losses on investments were $3.2 million, compared to gains of $21.2 million a year ago. The current period's result was driven by a reduction in the net asset value of our private equity investments related to distributions and by reduced common equity investment gains. Interest and financing expenses were $1.3 million versus $0.2 million a year ago. The increase relates to our $125 million of senior debt associated with the recapitalization plan we announced in the fourth quarter of 2025. Federal and state income tax expense was $2.9 million, a 20% effective tax rate, compared to a benefit of $2.9 million or a 25.9% effective benefit rate a year ago. Our adjusted net income, which excludes net realized and unrealized investment gains and losses and the benefit of LPT deferred gain amortization, was $12.8 million for the quarter, compared to an adjusted net loss of $25.5 million last year. Year to date, net income was $50.8 million, and adjusted net income was $35.9 million, compared to $34.2 million and $7.4 million for the nine months of last year. Turning to the balance sheet, stockholders' equity was $785.6 million at quarter end, down from $858.8 million at June 30th. Accumulated other comprehensive loss increased by $61.7 million to $74 million due directly to higher interest rates, reducing the market value of our fixed maturity securities, and as Kathy mentioned, is not related to credit quality. These unrealized losses should reverse as bonds approach maturity or if interest rates decline. Adjusted shareholders' equity, which excludes accumulated other comprehensive income and adds back the deferred gain, was $943.6 million. We returned $24.4 million to stockholders in the quarter through $18.1 million of share repurchases and $6.3 million of regular quarterly dividends. We repurchased 373,848 shares at an average price of $48.44 per share. That price represented an 8% discount to our beginning book value per share, including the deferred gain, and a 9% discount to our beginning adjusted book value per share. We have $94.9 million of repurchase authorization remaining under the 2026 program. With that, I'll turn the call back to Kathy. Kathy Antonello: Thank you, Mike. Yesterday, our board of directors declared a fourth quarter 2026 dividend of $0.34 per share, payable on December 3rd to stockholders of record as of November 12th. Looking ahead, expanding our workers' compensation product offering is driving additional profitable growth and deepening our relationships with distribution partners. Our excess workers' compensation product, which we launched in June, is off to a strong start, with 31 accounts and $6.5 million in premium to date. The product feedback from the market on our value-added service offerings has been very positive. We've begun developing our large deductible product, which we are targeting to launch next year. We continue to make progress with our technology investments, and AI adoption is growing each quarter. AI agents are now writing, testing, and documenting software at Employers, with the technology team utilizing AI in two-thirds of eligible work tasks in the third quarter. The results are tangible. This month, our new AI-driven claims summary application went live after assessing our entire inventory of open claims. We expect this new tool will allow our claims team to redeploy more than 50,000 hours over three years, with the efficiency ultimately benefiting our insureds, their injured workers, and the company. It is a very exciting time at Employers. We are confident that these investments are leading to a stronger and more resilient company. With that, Daniel, we will now take questions. Operator: As a reminder, to ask a question, please press star one on your telephone and wait for your name to be announced. To withdraw your question, please press star one again. Please stand by while we compile the Q&A roster. Our first question comes from Mark Hughes with Truist. Your line is open. Mark Hughes: Yeah, thank you. Good morning. Kathy Antonello: Good morning, Mark. Mark Hughes: Kathy, the re-underwriting process, I think you started it late in the year last year. When do you think you will have largely completed that and maybe get on more of a footing to hold the top line stable or perhaps grow may be too tough to ask in this kind of market. But that re-underwriting process, how much more do you have? Kathy Antonello: Yeah. It's a great question, Mark, and you hit on something that is important, which it is very tough to grow in a market where loss costs continue to decline. But I will say, when you speak about the re-underwriting effort, it was very surgical. It was in specific classes and jurisdictions. As you mentioned, we started at the end of last year, and we expect that to roll through the entire book within the fourth quarter of this year. Beyond that, we would expect that premiums will stabilize to some extent because all those policies will have non-renewed or canceled, and we will go back to some stability in our top line. Mark Hughes: Appreciate that. The question of frequency has come up in a couple of different ways. I was just sort of curious, your thoughts on frequency in your book, and then if you hear others like, say, a Hartford saying that they're seeing a little bit more of an uptick in frequency, does that make sense in this kind of a market? Kathy Antonello: Yeah. I've seen the transcripts where more and more carriers are calling out increases in frequency. I'll talk about our book to begin with. What we're seeing is frequency continuing to decline countrywide. The devil is in the details, right? When you start to drill down, you might see things differently in different jurisdictions. The decline that we're seeing countrywide is being driven by claims outside of California. That's not new for us. It's something that we've talked about in earnings calls over the past year and a half.` The frequency decreases countrywide are consistent with what you're seeing during the State of the Line and so forth with the long-term industry trends. California frequency, as I've said before, has increased in the latest accident years, and that's consistent with what the WCIRB is seeing and one of the reasons why they are filing for increases. For us, up through 2025, that was driven by cumulative trauma claim frequency. Excluding the CT claims, up through 2025, California claim frequency continued to trend downward. We're keeping an eye on it. It can be a little bit lumpy from quarter to quarter. Overall, countrywide, I would just say that we're seeing decreases. I haven't seen much discussion in the earnings call transcripts from others in terms of what jurisdictions are driving that. For us, I can tell you where we see the increases, in California. Mark Hughes: Yeah. Interesting. How about the audits in the quarter? Anything it tells you about the payrolls and then cancellations, is there any kind of uptick in cancellations, maybe related to more aggressive competition or shopping? Kathy Antonello: Yeah. In terms of audit, year-over-year, the audit pickup combined with our change in accrual, they were very close. So we're not seeing a huge change there. Our audit accrual currently stands at about $23 million, and we didn't make any change to that in the third quarter of 2026. We're seeing a little bit of an uptick in non-compliance premium. We recognized about $2.3 million of that this quarter. So not seeing a ton of change in terms of audit. You also ask about cancellations. I would say our cancellations are relatively flat year-over-year also. Where we're seeing big increases are in our submissions and our quotes, which would, to me, say that more agents are shopping business, to try to get a better price or a higher commission. That could be something that is going on, that policyholders are canceling policies looking for better prices. Mark Hughes: Yeah. One final question, if I might. Are you seeing much upward pressure on commissions? I think your reported commissions, looks like they are holding reasonably stable. I think maybe there is some non-recurring stuff in the year-ago quarter on commissions, if I understand it properly. But are you seeing brokers pushing, and maybe that is impacting your win rate or hit rate on those quotes? Kathy Antonello: I would say yes to all of that. In regard to our commission rate, you are absolutely correct. There was an adjustment that occurred in the third quarter of 2025, so that 12% from a year ago may have been slightly lower than we would normally see. But in terms of the competitive environment, we are seeing continued pressure on commissions for new business. I think that just comes with the territory of the softer market and carriers competing to keep their market share. We are not chasing that everywhere. We are looking for pockets where we can increase commission, where we feel like there is room in the margin to do so. But there is a lot of upward pressure on commissions right now. Mark Hughes: Appreciate that. Thank you. Kathy Antonello: Thank you. Operator: Thank you. As a reminder to ask a question, please press star one on your telephone. Again, that is star one to ask a question. Our next question comes from Karol Chmiel with Citizens, your line is open. Karol Chmiel: Yes. Hi, good morning. Kathy, just to go back to what Mark was inquiring regarding the audit. I know there wasn't much change, but in the bigger picture, with the whole higher cost of living and now various states and counties and cities pushing for higher minimum wage, are you having any conversations with your clients as to audit issues maybe coming up in the future where companies are going to be doing more with less workers? Kathy Antonello: Yeah, it's a good question. It's something we keep an eye on in terms of just a macroeconomic, the picture there. Given our policy holder base and just the small accounts that we typically write, don't know that we've had any specific conversations, but we do track the economic behavior of what that might impact our book of business. Not seeing anything right now that would change what I feel like is our audit pickup in the future. I will say it's nothing like what we were seeing, say, coming out of the pandemic, when payrolls were just increasing at such a dramatic rate. Things are fairly stable now. And we see from month to month that one month we might have a pickup, the next month we might have a return in total, but not a lot of movement there. Karol Chmiel: Okay, great. Thank you. That's all. Operator: Thank you. Our next question comes from Alex Scott with Barclays. Your line is open. Justin: Good morning. This is Justin on for Alex, and thank you very much for taking my question. I wanted to revisit the topic of frequency. I understand the frequency outside of California continues to be trending lower for your book of business. I was just wondering if there are any particular, say, industries or claims types or even worker populations where you may be seeing some frequency pressures emerge, or maybe the rate of frequency declines are not as pronounced as it has been before. Kathy Antonello: Yeah, it's a great question. For us, and I'm talking about our guaranteed cost workers' compensation book, the area where we're seeing the most elevated frequency, and over the last two to three years, the largest increase in frequency has been California cumulative trauma. I will say one of our strategic moves to give us more optionality was to move into the excess workers' compensation space, which will diversify our book of business and allow us to write larger insureds with self-insured retentions that might not be impacted by changes in frequency to the same extent that you would see in a small business guaranteed cost book. For us, that move was intentional. For example, if I stick with California and CT, we just got approved to write excess workers' comp in California. We would not expect that future book to be impacted by frequency increases as much as it has impacted the guaranteed cost book. In terms of industries, I have not seen that there are increases in frequency. I have seen no research, and I haven't seen anything in our book that is showing anything in terms of the increase in frequency is more prevalent, or the lack of a decrease is more prevalent in one industry versus another. Speaker 6: Understood. Thank you for the color there. Maybe a quick follow-up on a similar point. I think we've been hearing some discussion around the rising cost of healthcare costs and the affordability potentially affecting workers' comp claims behavior. Historically maybe some claims that have been addressed in healthcare is now spilling over into workers' comp claims instead. I was wondering if this was something that you are seeing in your own book of business, or if there's any sort of observations that you're seeing industry-wide that talks to this sort of observation. Kathy Antonello: Yeah. I'll start with our book. When we look at our book overall, severity is very steady or lower. We have early indications with accident year 2026 in states outside of California that we might have some pressure on severity, but that's entirely driven by a few large losses. I wouldn't call it a widespread severity trend. We have, for the last five or six years, developed our own pharmaceutical index that we continue to look at, and those costs are up slightly relative to what we were seeing pre-pandemic levels. We had a recent uptick that recovered most of the post-pandemic decline. It's really pretty moderate. I have also heard what you've heard sort of out on the street, but we're not seeing anything in our book right now that would suggest it's impacting us. Speaker 6: Great. Thank you for the color. Kathy Antonello: Thank you. Operator: Thank you. I'm showing no further questions at this time. I would now like to turn it back to Kathy Antonello for closing remarks. Kathy Antonello: Okay. Thank you, Danielle. And thank you all for joining us this morning, and we look forward to speaking with you all again in February. Operator: This concludes today's conference call. Thank you for participating. 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. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $334,308!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,323,413!* Now, it's worth noting Stock Advisor's total average return is 897% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of October 29, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. 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) Q3 2026 Earnings Call Transcript was originally published by The Motley Fool

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. - Earnings improvement was primarily driven by the absence of the $38 million reserve strengthening recorded in the prior year's third quarter, signaling a return to historical underwriting levels. - The 18% decrease in gross premiums written reflects deliberate pricing and underwriting actions taken to prioritize profitability over volume within a prolonged soft market environment. - Management successfully retained the majority of its small business customers while strategically exiting selected underperforming classes of business to improve the overall risk profile. - The underwriting expense ratio increased to 24.3% as a direct result of a smaller premium base, though absolute underwriting expenses decreased slightly due to lower policyholder dividends and bad debt. - Investment income growth was supported by a 2025 portfolio rebalancing that positioned the company to capture higher yields and $5.6 million in private equity distributions. - The company is diversifying its portfolio by expanding into excess workers' compensation to mitigate frequency risks associated with small business guaranteed cost books, particularly in California. - AI adoption is being utilized to drive operational efficiency, with AI agents now assisting in software development and claims processing to reduce manual workloads. - The surgical re-underwriting effort is expected to be fully reflected in the book by the end of the fourth quarter of 2026, which management anticipates will lead to top-line stabilization. - A new large deductible product is currently under development with a target launch date set for 2027 to further deepen relationships with distribution partners. - The newly deployed AI-driven claims summary application is projected to redeploy over 50,000 hours of claims team capacity over the next three years, enhancing service for insureds. - Management anticipates that unrealized market value declines in the fixed income portfolio will reverse as bonds approach maturity or if interest rates decline, as the declines are not credit-related. - The company plans to continue its capital return strategy, supported by $94.9 million of remaining repurchase authorization under the 2026 program. - The company returned $24.4 million to stockholders during the quarter through $18.1 million in share repurchases and $6.3 million in regular dividends. - A $125 million senior debt issuance from late 2025 resulted in a $1.1 million increase in interest and financing expenses for the quarter, bringing the total to $1.3 million. - The board declared a fourth-quarter dividend of $0.34 per share, maintaining its commitment to capital return despite the soft market environment. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. - Management expects the re-underwriting process to roll through the entire book by the end of the fourth quarter of 2026. - Once completed, premiums are expected to stabilize as the impact of non-renewals and cancellations for targeted classes and jurisdictions subsides. - Countrywide frequency continues to decline, driven primarily by claims outside of California, which is consistent with long-term industry trends. - California frequency has increased in recent accident years due to cumulative trauma claims, which is a primary driver for recent regulatory rate increase filings in the state. - There is significant upward pressure on commissions for new business as carriers compete for market share in a soft market, though the company is only increasing commissions in high-margin pockets. - While policyholder cancellations remain flat, a surge in submissions and quotes suggests agents are increasingly shopping business to secure better pricing or higher commissions. - Overall severity remains steady or lower, with some isolated pressure in 2026 accident years outside California driven by a few large losses rather than a widespread trend. - Pharmaceutical costs have seen a moderate recent uptick, recovering most post-pandemic declines, but management describes the current trend as moderate.

Workers' compensation insurer Employers Holdings (NYSE:EIG) missed Wall Street's revenue expectations in Q3 2026, with revenue falling 20.9% year on year to $189.3 million. Its non-GAAP profit of $0.71 per share was 23.8% above analysts' consensus estimates. For more on Employers Holdings, read the full research report. - Net premiums earned $160.2 million vs analysts' consensus estimates of $164.2 million (16.6% year-on-year decline, 2.4% miss) - Revenue $189.3 million vs S&P analysts' consensus estimates of $191.5 million (20.9% year-on-year decline, 1.1% miss) - Combined ratio 108% vs analysts' consensus estimates of 107% (105 basis point miss) - Adjusted EPS $0.71 vs S&P analysts' consensus estimates of $0.57 (23.8% beat) - Book value per share $44.66 (2.4% year-on-year decline) - Market capitalization $932.9 million Insurance companies earn revenue from three primary sources: 1) The core insurance business itself, often called underwriting and represented in the income statement as premiums 2) Income from investing the "float" (premiums collected upfront not yet paid out as claims) in assets such as fixed-income assets and equities 3) Fees from various sources such as policy administration, annuities or other value-added services. Employers Holdings's revenue grew at a sluggish 2.6% annualized rate over the last five years, falling short of our benchmarks. Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. Employers Holdings's performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 5.9% annually. This quarter, Employers Holdings missed Wall Street's consensus estimates and reported an uninspiring 20.9% year-on-year revenue decline, generating $189.3 million of revenue. Net premiums earned made up 86.9% of the company's total revenue during the last five years, meaning Employers Holdings barely relies on non-insurance activities to drive its overall growth. The market focuses primarily on an insurer's net premiums earned growth as investment and fee income are considered more susceptible to market volatility and economic cycles. Insurers are balance sheet businesses, collecting premiums upfront and paying out claims over time. Premiums collected but not yet paid out, often referred to as the float, are invested and create an asset base supported by a liability structure. Book value per share (BVPS) captures this dynamic by measuring these assets (investment portfolio, cash and reinsurance recoverables) less liabilities (claim reserves, debt and future policy benefits). BVPS is essentially the residual value for shareholders. BVPS is therefore an important metric to track for insurers and sheds light on business quality. While other (and more commonly known) per-share metrics like EPS can sometimes be lumpy due to reserve releases or one-time items and can be managed or skewed while still following accounting rules, BVPS reflects long-term capital growth and is harder to manipulate. Employers Holdings's BVPS was flat over the last five years. The last two years show a similar pattern, with BVPS roughly flat at $44.66 per share. Over the next 12 months, consensus estimates call for Employers Holdings's BVPS to grow by 21.9% to $52.99, a strong growth rate. Employers Holdings' quarter left room for improvement: sales and net premiums earned fell short of Wall Street's consensus estimates. EPS provided a positive, topping analysts' consensus estimates. Shares remained flat at $50.95 immediately after the release. Employers Holdings underperformed this quarter, but what does that mean for investors? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation when deciding whether to invest in this stock. For more on Employers Holdings, read the full research report here (it's free).

Employers Holdings (EIG) came out with quarterly earnings of $0.71 per share, beating the Zacks Consensus Estimate of $0.61 per share. This compares to a loss of $1.1 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +16.39%. A quarter ago, it was expected that this provider of workers-compensation insurance would post earnings of $0.61 per share when it actually produced earnings of $0.7, delivering a surprise of +14.75%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Employers Holdings, which belongs to the Zacks Insurance - Accident and Health industry, posted revenues of $189.3 million for the quarter ended September 2026, missing the Zacks Consensus Estimate by 0.68%. This compares to year-ago revenues of $239.3 million. The company has topped consensus revenue estimates just once 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 20.3% since the beginning of the year versus the S&P 500's gain of 12.8%. 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 $0.57 on $188.2 million in revenues for the coming quarter and $2.23 on $806.6 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 27% 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. Aflac (AFL), another stock in the same industry, has yet to report results for the quarter ended September 2026. The results are expected to be released on November 4. This insurer is expected to post quarterly earnings of $1.80 per share in its upcoming report, which represents a year-over-year change of -27.7%. The consensus EPS estimate for the quarter has been revised 1.6% higher over the last 30 days to the current level. Aflac's revenues are expected to be $4.2 billion, down 11.3% 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 Aflac Incorporated (AFL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Company to Host Conference Call on Thursday, October 29, 2026, at 11:00 a.m. Eastern Time RENO, Nev., Oct. 28, 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 third quarter ended September 30, 2026. Third Quarter 2026 Financial Highlights (All comparisons versus third quarter 2025) - Net income (loss) of $11.6 million ($0.64 per diluted share), versus $(8.3) million ($(0.36) per diluted share); - Adjusted net income (loss) of $12.8 million ($0.71 per diluted share), versus $(25.5) million ($(1.10) per diluted share); - Gross premiums written of $151.1 million, versus $183.9 million; - Net premiums earned of $160.2 million, versus $192.1 million; - Loss and LAE ratio decreased to 71.2% from 97.1%; - Commission expense ratio increased to 12.9% from 12.0%; - Underwriting expense ratio increased to 24.3% from 20.6%; - GAAP combined ratio of 108.4% (109.2% excluding the LPT), versus 129.7% (130.4% excluding the LPT); - Net investment income increased to $32.3 million from $26.1 million; - Net realized and unrealized (losses) gains on investments of $(3.2) million, versus $21.2 million; - Policies in force of 124,043, versus 135,414; - Book value per share including the Deferred Gain of $49.44, an increase of 2.1%, and Adjusted book value per share of $53.64, up 7.1% (both growth rates include dividends declared); and - Returned $24.4 million to stockholders through a combination of share repurchases and regular quarterly dividends. CEO Commentary Chief Executive Officer Katherine Antonello commented: "Our third quarter results reflect the progress we are making to restore our underwriting profitability to historical levels. We reported net income of $11.6 million, or $0.64 per diluted share, compared with a net loss of $8.3 million, or $(0.36) per diluted share, in the third quarter of 2025. The improvement was driven primarily by the absence of the reserve strengthening we recorded in that quarter, and we have not recognized any prior year loss development on our voluntary business this year. Our loss and LAE ratio improved to 71.2% from 97.1%, and our current accident year loss and LAE ratio on voluntary business, excluding LPT, was 72.0%. Gross premiums written were $151.1 million, a decrease of 18%, and net premiums earned were $160.2 million, a decrease of 17%. These decreases reflect the pricing and underwriting actions we have taken to prioritize profitability in the prolonged soft market. Our GAAP combined ratio improved to 108.4% from 129.7%. Our underwriting expense ratio rose to 24.3% because of the smaller premium base, while underwriting expenses themselves were slightly lower than last year. Returning to an underwriting profit remains our top priority. Policies in force declined 8% to 124,043, a smaller decline than premium, as we retained the majority of our small business customers while exiting selected classes of business." Ms. Antonello continued, "Our investment portfolio continues to be a source of strength. Net investment income increased to $32.3 million, supported by higher yields following our 2025 investment rebalancing and $5.6 million in returns from our private equity investments. With the significant rise in U.S. interest rates, our investment portfolio is well positioned to take advantage of higher reinvestment rates to contribute meaningfully to earnings over time. We also remain committed to returning capital to our stockholders, and this quarter we returned $24.4 million through share repurchases and our regular quarterly dividend. Book value per share, including the Deferred Gain, grew 2.1% year over year, and adjusted book value per share grew 7.1%, both including dividends declared. Looking ahead, expanding our workers' compensation product offering will drive additional profitable growth. Our excess workers' compensation product, which we launched in June, is off to a strong start, with 31 accounts and $6.5 million in premium to date. Our second new product, large deductible, which we are developing internally, is targeted to launch next year. With these initiatives, I am confident we are building a stronger, more resilient company." Summary of Consolidated Third Quarter 2026 Results (All comparisons versus third quarter 2025, unless otherwise noted) Gross premiums written were $151.1 million, a decrease of 17.8%, reflecting the deliberate pricing and underwriting actions commenced in 2025 to prioritize profitability over volume. These actions contributed to declines in new and renewal business premiums in the quarter. Losses and LAE were $114.0 million, a decrease of 38.9%, due primarily to the absence of the prior-period reserve strengthening that we recognized last year (approximately $38.0 million) and partially due to lower premium levels. The Company's voluntary business current accident year loss and LAE ratio, excluding the LPT, was 72.0%. Commission expense was $20.6 million, a decrease of 10.4%, consistent with lower premiums. The Company's commission expense ratio was 12.9%, compared to 12.0% a year ago. The increase in the commission expense ratio was primarily the result of higher commission rates on new business writings in 2026 combined with a one-time adjustment that reduced the 2025 third quarter ratio. Underwriting expenses were $38.9 million, a decrease of 1.8%. The Company's underwriting expense ratio was 24.3%, compared to 20.6% a year ago. The decrease in our underwriting expenses was primarily driven by reduced policyholder dividends, bad debt, and premium taxes and assessments. The increase in underwriting expense ratio was due to the decrease in premiums earned. Net investment income was $32.3 million, an increase of 23.8%. The increase was primarily the result of returns from our private equity investments, along with higher yields on fixed maturity securities resulting from our investment rebalancing activity in 2025. Net realized and unrealized (losses) gains on investments reflected on the income statement were $(3.2) million compared to $21.2 million a year ago. The current quarter's result was driven by a distribution-related reduction in our private equity investment net asset value and reduced common equity investment gains. Interest and financing expenses were $1.3 million versus $0.2 million a year ago. The increase in interest expense relates to the Company's $125.0 million senior debt associated with the recapitalization plan announced in the fourth quarter of 2025. Federal and state income tax expense (benefit) was $2.9 million (20.0% effective tax rate), compared to $(2.9) million (25.9% effective benefit 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, deferred gain amortization, and tax credits utilized. Compared to last quarter, book value per share including the Deferred Gain declined by 5.3% (including dividends) to $49.44, driven by the unrealized market value decline in our fixed income investments, due directly to the increase in interest rates. This decline reflects changes in interest rates rather than underlying credit quality. Adjusted book value per share, which excludes accumulated other comprehensive income, increased by 1.3% (including dividends) in the quarter to $53.64. Fourth Quarter 2026 Dividend Declaration On October 28, 2026, the Company's Board of Directors declared a regular quarterly dividend of $0.34 per share. The dividend is payable on December 3, 2026, to stockholders of record as of November 12, 2026. Stock Repurchases During the third quarter of 2026, the Company repurchased 373,848 shares of its common stock at an average price of $48.44 per share. The Company has $94.9 million of repurchase authorization remaining under the 2026 Program. Earnings Conference Call and Webcast The Company will host a conference call on Thursday, October 29, 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] | | EMPLOYERS HOLDINGS, INC. Table of Contents | | Page | | | | 1 | | Consolidated Financial Highlights | | 2 | | Summary Consolidated Balance Sheets | | 3 | | Summary Consolidated Income Statements | | 4 | | Return on Equity | | 5 | | Combined Ratios | | 6 | | Roll-forward of Unpaid Losses and LAE | | 7 | | Consolidated Investment Portfolio | | 8 | | Book Value Per Share | | 9 | | Earnings Per Share | | 10 | | Non-GAAP Financial Measures | | | | EMPLOYERS HOLDINGS, INC. Consolidated Financial Highlights (unaudited) $ in millions, except per share amounts | | | | | | Three Months Ended | | Nine Months Ended | | September 30, | | September 30, | | | 2026 | | | | 2025 | | | % change | | | 2026 | | | | 2025 | | | % change Selected financial highlights: | | | | | | | | | | | | Gross premiums written | | $ | 151.1 | | | $ | 183.9 | | | (18)% | | $ | 495.4 | | | $ | 599.3 | | | (17)% Net premiums written | | | 149.7 | | | | 182.4 | | | (18 | ) | | | 491.2 | | | | 594.2 | | | (17 | ) Net premiums earned | | | 160.2 | | | | 192.1 | | | (17 | ) | | | 515.2 | | | | 573.4 | | | (10 | ) Net investment income | | | 32.3 | | | | 26.1 | | | 24 | | | | 88.0 | | | | 85.3 | | | 3 | Net income (loss) excluding LPT(1) | | | 10.3 | | | | (9.6 | ) | | (207 | ) | | | 46.8 | | | | 29.6 | | | 58 | Adjusted net income (loss)(1) | | | 12.8 | | | | (25.5 | ) | | (150 | ) | | | 35.9 | | | | 7.3 | | | 392 | Net income (loss) before income taxes | | | 14.5 | | | | (11.2 | ) | | (229 | ) | | | 61.9 | | | | 41.6 | | | 49 | Net income (loss) | | | 11.6 | | | | (8.3 | ) | | (240 | ) | | | 50.8 | | | | 34.2 | | | 49 | Comprehensive (loss) income | | | (50.2 | ) | | | 8.3 | | | (705 | ) | | | (30.5 | ) | | | 80.1 | | | (138 | ) Total assets | | | | | | | | | 3,252.1 | | | | 3,526.4 | | | (8 | ) Stockholders' equity | | | | | | | | | 785.6 | | | | 1,039.2 | | | (24 | ) Stockholders' equity including the Deferred Gain(2) | | | | | | | | | 869.6 | | | | 1,128.6 | | | (23 | ) Adjusted stockholders' equity(2) | | | | | | | | | 943.6 | | | | 1,165.2 | | | (19 | ) Trailing twelve months adjusted return on stockholders' equity(3) | | | | | | | | | 4.8 | % | | | 3.0 | % | | 60 | % Amounts per share: | | | | | | | | | | | | Cash dividends declared per share | | $ | 0.34 | | | $ | 0.32 | | | 6 | % | | $ | 1.00 | | | $ | 0.94 | | | 6 | % Earnings (loss) per diluted share(4) | | | 0.64 | | | | (0.36 | ) | | (278 | ) | | | 2.73 | | | | 1.42 | | | 92 | Earnings (loss) per diluted share excluding LPT(4) | | | 0.57 | | | | (0.41 | ) | | (239 | ) | | | 2.51 | | | | 1.23 | | | 104 | Adjusted earnings (loss) per diluted share(4) | | | 0.71 | | | | (1.10 | ) | | (165 | ) | | | 1.93 | | | | 0.30 | | | 543 | Book value per share(2) | | | | | | | | | 44.66 | | | | 45.76 | | | (2 | ) Book value per share including the Deferred Gain(2) | | | | | | | | | 49.44 | | | | 49.70 | | | (1 | ) Adjusted book value per share(2) | | | | | | | | | 53.64 | | | | 51.31 | | | 5 | Combined ratio excluding LPT:(5) | | | | | | | | | | | | Loss and loss adjustment expense ratio: | | | | | | | | | | | | Current Year | | | 72.2 | % | | | 78.1 | % | | | | | 71.9 | % | | | 72.0 | % | | Prior Year | | | (0.2 | ) | | | 19.7 | | | | | | (0.2 | ) | | | 6.8 | | | Loss and loss adjustment expense ratio | | | 72.0 | % | | | 97.8 | % | | | | | 71.7 | % | | | 78.8 | % | | Commission expense ratio | | | 12.9 | % | | | 12.0 | % | | | | | 12.9 | % | | | 12.6 | % | | Underwriting expense ratio | | | 24.3 | % | | | 20.6 | % | | | | | 23.2 | % | | | 21.9 | % | | Combined ratio excluding LPT | | | 109.2 | % | | | 130.4 | % | | | | | 107.8 | % | | | 113.3 | % | | | | | | | | | | | | | | | | | | | | | | | | | | (1) See Page 3 for calculations and Page 10 for information regarding our use of Non-GAAP Financial Measures. (2) See Page 8 for calculations and Page 10 for information regarding our use of Non-GAAP Financial Measures. (3) See Page 4 for calculations and Page 10 for information regarding our use of Non-GAAP Financial Measures. (4) See Page 9 for description and calculations and Page 10 for information regarding our use of Non-GAAP Financial Measures. (5) See Page 5 for details and Page 10 for information regarding our use of Non-GAAP Financial Measures. | | | | EMPLOYERS HOLDINGS, INC. Summary Consolidated Balance Sheets (unaudited) $ in millions, except per share amounts | | | | | | September 30, 2026 | | December 31, 2025 ASSETS | | | | Investments, cash and cash equivalents | | $ | 2,334.8 | | | $ | 2,498.8 | Accrued investment income | | | 15.1 | | | | 15.5 | Premiums receivable, net | | | 317.7 | | | | 335.4 | Reinsurance recoverable, net of allowance, on paid and unpaid losses and LAE | | | 380.6 | | | | 391.6 | Deferred policy acquisition costs | | | 55.7 | | | | 57.1 | Deferred income tax asset, net | | | 36.0 | | | | 14.3 | Other assets | | | 112.2 | | | | 123.9 | Total assets | | $ | 3,252.1 | | | $ | 3,436.6 | | | | | LIABILITIES | | | | Unpaid losses and LAE | | $ | 1,733.3 | | | $ | 1,805.8 | Unearned premiums | | | 374.9 | | | | 391.9 | Commissions and premium taxes payable | | | 53.5 | | | | 59.9 | Deferred Gain | | | 84.0 | | | | 88.0 | Debt | | | 125.0 | | | | 35.0 | Other liabilities | | | 95.8 | | | | 100.3 | Total liabilities | | $ | 2,466.5 | | | $ | 2,480.9 | | | | | STOCKHOLDERS' EQUITY | | | | Common stock and additional paid-in capital | | $ | 431.5 | | | $ | 428.4 | Retained earnings | | | 1,485.8 | | | | 1,453.8 | Accumulated other comprehensive (loss) income | | | (74.0 | ) | | | 7.3 | Treasury stock, at cost | | | (1,057.7 | ) | | | (933.8 | ) Total stockholders' equity | | | 785.6 | | | | 955.7 | Total liabilities and stockholders' equity | | $ | 3,252.1 | | | $ | 3,436.6 | | | | | Stockholders' equity including the Deferred Gain(1) | | $ | 869.6 | | | $ | 1,043.7 | Adjusted stockholders' equity(1) | | | 943.6 | | | | 1,036.4 | Book value per share(1) | | $ | 44.66 | | | $ | 46.98 | Book value per share including the Deferred Gain(1) | | | 49.44 | | | | 51.31 | Adjusted book value per share(1) | | | 53.64 | | | | 50.95 | | | | | (1) See Page 8 for calculations and Page 10 for information regarding our use of Non-GAAP Financial Measures. | | | EMPLOYERS HOLDINGS, INC. Summary Consolidated Income Statements (unaudited) $ in millions | | | | Three Months Ended | | Nine Months Ended | September 30, | | September 30, | | 2026 | | | | 2025 | | | | 2026 | | | | 2025 | Revenues: | | | Net premiums earned | $ | 160.2 | | | $ | 192.1 | | | $ | 515.2 | | | $ | 573.4 | Net investment income | | 32.3 | | | | 26.1 | | | | 88.0 | | | | 85.3 | Net realized and unrealized (losses) gains on investments(1) | | (3.2 | ) | | | 21.2 | | | | 13.8 | | | | 29.3 | Other income (loss) | | — | | | | (0.1 | ) | | | 0.1 | | | | 0.2 | Total revenues | | 189.3 | | | | 239.3 | | | | 617.1 | | | | 688.2 | Expenses: | | | | | | | Losses and LAE incurred | | 114.0 | | | | 186.6 | | | | 365.5 | | | | 447.4 | Commission expense | | 20.6 | | | | 23.0 | | | | 66.5 | | | | 72.1 | Underwriting expenses | | 38.9 | | | | 39.6 | | | | 119.5 | | | | 125.7 | Interest and financing expenses | | 1.3 | | | | 0.2 | | | | 3.7 | | | | 0.3 | Other non-recurring expenses | | — | | | | 1.1 | | | | — | | | | 1.1 | Total expenses | | 174.8 | | | | 250.5 | | | | 555.2 | | | | 646.6 | Net income (loss) before income taxes | | 14.5 | | | | (11.2 | ) | | | 61.9 | | | | 41.6 | Income tax expense (benefit) | | 2.9 | | | | (2.9 | ) | | | 11.1 | | | | 7.4 | Net income (loss) | | 11.6 | | | | (8.3 | ) | | | 50.8 | | | | 34.2 | Unrealized AFS investment (losses) gains arising during the period, net of tax(2) | | (61.8 | ) | | | 14.6 | | | | (82.1 | ) | | | 43.1 | Reclassification adjustment for net realized AFS investment losses in net income, net of tax(2) | | — | | | | 2.0 | | | | 0.8 | | | | 2.8 | Total comprehensive (loss) income | $ | (50.2 | ) | | $ | 8.3 | | | $ | (30.5 | ) | | $ | 80.1 | Net income (loss) | $ | 11.6 | | | $ | (8.3 | ) | | $ | 50.8 | | | $ | 34.2 | Amortization of the Deferred Gain | | (1.3 | ) | | | (1.3 | ) | | | (4.0 | ) | | | (4.6 | ) Net income (loss) excluding LPT Agreement(3) | | 10.3 | | | | (9.6 | ) | | | 46.8 | | | | 29.6 | Net realized and unrealized losses (gains) on investments | | 3.2 | | | | (21.2 | ) | | | (13.8 | ) | | | (29.3 | ) Other non-recurring expenses | | — | | | | 1.1 | | | | — | | | | 1.1 | Income tax (benefit) expense related to items excluded from Net income | | (0.7 | ) | | | 4.2 | | | | 2.9 | | | | 5.9 | Adjusted net income (loss) | $ | 12.8 | | | $ | (25.5 | ) | | $ | 35.9 | | | $ | 7.3 | | | | | | | | (1) Includes unrealized (losses) gains on equity securities and other investments of $(4.3) million and $20.7 million for the three months ended September 30, 2026 and 2025, respectively and $(5.8) million and $28.6 million for the nine months ended September 30, 2026 and 2025, respectively. (2) AFS = Available for Sale securities. (3) See Page 10 regarding our use of Non-GAAP Financial Measures. | | | | EMPLOYERS HOLDINGS, INC. Return on Equity (unaudited) $ in millions | | | | | | Three Months Ended | | Nine Months Ended | | September 30, | | September 30, | | | 2026 | | | | 2025 | | | | 2026 | | | | 2025 | | | | | | | | | Net income (loss) | A | $ | 11.6 | | | $ | (8.3 | ) | | $ | 50.8 | | | $ | 34.2 | Impact of the LPT Agreement | | | (1.3 | ) | | | (1.3 | ) | | | (4.0 | ) | | | (4.6 | ) Net realized and unrealized losses (gains) on investments | | | 3.2 | | | | (21.2 | ) | | | (13.8 | ) | | | (29.3 | ) Income tax (benefit) expense related to items excluded from Net income | | | (0.7 | ) | | | 4.2 | | | | 2.9 | | | | 5.9 | Adjusted net income (loss)(1) | B | | 12.8 | | | | (25.5 | ) | | | 35.9 | | | | 7.3 | | | | | | | | | Stockholders' equity - end of period | | $ | 785.6 | | | $ | 1,039.2 | | | $ | 785.6 | | | $ | 1,039.2 | Stockholders' equity - beginning of period | | | 858.8 | | | | 1,083.1 | | | | 955.7 | | | | 1,068.7 | Average stockholders' equity | C | | 822.2 | | | | 1,061.2 | | | | 870.7 | | | | 1,054.0 | | | | | | | | | Stockholders' equity - end of period | | $ | 785.6 | | | $ | 1,039.2 | | | $ | 785.6 | | | $ | 1,039.2 | Deferred Gain - end of period | | | 84.0 | | | | 89.4 | | | | 84.0 | | | | 89.4 | Accumulated other comprehensive loss - end of period | | | 93.6 | | | | 46.4 | | | | 93.6 | | | | 46.4 | Income taxes related to accumulated other comprehensive loss - end of period | | | (19.6 | ) | | | (9.8 | ) | | | (19.6 | ) | | | (9.8 | ) Adjusted stockholders' equity - end of period | | | 943.6 | | | | 1,165.2 | | | | 943.6 | | | | 1,165.2 | Adjusted stockholders' equity - beginning of period | | | 956.3 | | | | 1,227.0 | | | | 1,036.4 | | | | 1,245.2 | Average adjusted stockholders' equity(1) | D | | 950.0 | | | | 1,196.1 | | | | 990.0 | | | | 1,205.2 | | | | | | | | | Return on stockholders' equity | A / C | | 1.4 | % | | (0.8)% | | | 5.8 | % | | | 3.2 | % Trailing twelve months return on stockholders' equity | | | — | | | | — | | | | 3.0 | | | | 5.9 | | | | | | | | | Adjusted return on stockholders' equity(1) | B / D | | 1.3 | % | | (2.1)% | | | 3.6 | % | | | 0.6 | % Trailing twelve months adjusted return on stockholders' equity(1) | | | — | | | | — | | | | 4.8 | | | | 3.0 | | | | | | | | | (1) See Page 10 for information regarding our use of Non-GAAP Financial Measures. | | | | EMPLOYERS HOLDINGS, INC. Combined Ratios (unaudited) $ in millions | | | | | | Three Months Ended | | Nine Months Ended | | September 30, | | September 30, | | | 2026 | | | | 2025 | | | | 2026 | | | | 2025 | | | | | | | | | Net premiums earned | A | $ | 160.2 | | | $ | 192.1 | | | $ | 515.2 | | | $ | 573.4 | Losses and LAE incurred | B | | 114.0 | | | | 186.6 | | | | 365.5 | | | | 447.4 | Amortization of the Deferred Gain | | | 1.3 | | | | 1.3 | | | | 4.0 | | | | 4.6 | Losses and LAE excluding LPT(1) | C | $ | 115.3 | | | $ | 187.9 | | | | 369.5 | | | | 452.0 | Prior year loss reserve development | | | (0.3 | ) | | | 37.8 | | | | (0.7 | ) | | | 39.4 | Losses and LAE excluding LPT - current accident year | D | $ | 115.6 | | | $ | 150.1 | | | $ | 370.2 | | | $ | 412.6 | Commission expense | E | $ | 20.6 | | | $ | 23.0 | | | $ | 66.5 | | | $ | 72.1 | Underwriting expenses | F | $ | 38.9 | | | $ | 39.6 | | | $ | 119.5 | | | $ | 125.7 | GAAP combined ratio: | | | | | | | | Loss and LAE ratio | B/A | | 71.2 | % | | | 97.1 | % | | | 70.9 | % | | | 78.0 | % Commission expense ratio | E/A | | 12.9 | | | | 12.0 | | | | 12.9 | | | | 12.6 | Underwriting expense ratio | F/A | | 24.3 | | | | 20.6 | | | | 23.2 | | | | 21.9 | GAAP combined ratio | | | 108.4 | % | | | 129.7 | % | | | 107.0 | % | | | 112.5 | % Combined ratio excluding LPT:(1) | | | | | | | | Loss and LAE ratio excluding LPT | C/A | | 72.0 | % | | | 97.8 | % | | | 71.7 | % | | | 78.8 | % Commission expense ratio | E/A | | 12.9 | | | | 12.0 | | | | 12.9 | | | | 12.6 | Underwriting expense ratio | F/A | | 24.3 | | | | 20.6 | | | | 23.2 | | | | 21.9 | Combined ratio excluding LPT | | | 109.2 | % | | | 130.4 | % | | | 107.8 | % | | | 113.3 | % Combined ratio excluding LPT: current accident year:(1) | | | | | | | | Loss and LAE ratio excluding LPT | D/A | | 72.2 | % | | | 78.1 | % | | | 71.9 | % | | | 72.0 | % Commission expense ratio | E/A | | 12.9 | | | | 12.0 | | | | 12.9 | | | | 12.6 | Underwriting expense ratio | F/A | | 24.3 | | | | 20.6 | | | | 23.2 | | | | 21.9 | Combined ratio excluding LPT: current accident year | | | 109.4 | % | | | 110.7 | % | | | 108.0 | % | | | 106.5 | % | | | | | | | | (1) See Page 10 for information regarding our use of Non-GAAP Financial Measures. | | | EMPLOYERS HOLDINGS, INC. Roll-forward of Unpaid Losses and LAE (unaudited) $ in millions | | | | Three Months Ended | | Nine Months Ended | September 30, | | September 30, | | 2026 | | | | 2025 | | | | 2026 | | | | 2025 | | | | | Unpaid losses and LAE at beginning of period | $ | 1,775.2 | | | $ | 1,786.8 | | | $ | 1,805.8 | | | $ | 1,808.2 Reinsurance recoverable, excluding CECL allowance, on unpaid losses and LAE | | 380.1 | | | | 401.0 | | | | 386.5 | | | | 412.4 Net unpaid losses and LAE at beginning of period | | 1,395.1 | | | | 1,385.8 | | | | 1,419.3 | | | | 1,395.8 Losses and LAE incurred: | | | | | | | Current year losses | | 115.6 | | | | 150.1 | | | | 370.2 | | | | 412.6 Prior year losses on voluntary business | | — | | | | 38.2 | | | | — | | | | 38.9 Prior year losses on involuntary business | | (0.3 | ) | | | (0.4 | ) | | | (0.7 | ) | | | 0.5 Total losses incurred | | 115.3 | | | | 187.9 | | | | 369.5 | | | | 452.0 Losses and LAE paid: | | | | | | | Current year losses | | 44.1 | | | | 38.0 | | | | 74.7 | | | | 72.0 Prior year losses | | 107.8 | | | | 105.9 | | | | 355.6 | | | | 346.0 Total paid losses | | 151.9 | | | | 143.9 | | | | 430.3 | | | | 418.0 Net unpaid losses and LAE at end of period | | 1,358.5 | | | | 1,429.8 | | | | 1,358.5 | | | | 1,429.8 Reinsurance recoverable, excluding CECL allowance, on unpaid losses and LAE | | 374.8 | | | | 392.7 | | | | 374.8 | | | | 392.7 Unpaid losses and LAE at end of period | $ | 1,733.3 | | | $ | 1,822.5 | | | $ | 1,733.3 | | | $ | 1,822.5 Total losses and LAE shown in the above table exclude amortization of the Deferred Gain, which totaled $1.3 million for each of the three months ended September 30, 2026 and 2025, and $4.0 million and $4.6 million for the nine months ended September 30, 2026 and 2025, respectively. | | | | EMPLOYERS HOLDINGS, INC. Consolidated Investment Portfolio (unaudited) $ in millions | | | | | | September 30, 2026 | | December 31, 2025 Investment Positions: | | Cost or Amortized Cost(1) | | Net Unrealized Gain (Loss) | | Fair Value | | % | | Fair Value | | % Fixed maturity securities | | $ | 2,068.9 | | $ | (93.6 | ) | | $ | 1,974.3 | | 85 | % | | $ | 2,040.7 | | 82 | % Equity securities | | | 97.6 | | | 84.7 | | | | 182.3 | | 8 | | | | 191.5 | | 8 | Short-term investments | | | 13.2 | | | — | | | | 13.2 | | 1 | | | | 10.1 | | — | Other invested assets | | | 75.0 | | | 14.1 | | | | 89.1 | | 4 | | | | 96.5 | | 4 | Cash and cash equivalents | | | 75.7 | | | — | | | | 75.7 | | 3 | | | | 159.8 | | 6 | Restricted cash and cash equivalents | | | 0.2 | | | — | | | | 0.2 | | — | | | | 0.2 | | — | Total investments and cash | | $ | 2,330.6 | | $ | 5.2 | | | $ | 2,334.8 | | 100 | % | | $ | 2,498.8 | | 100 | % | | | | | | | | | | | | Breakout of Fixed Maturity Securities: | | | | | | | | | | | | U.S. Treasuries and agencies | | $ | 80.9 | | $ | (4.2 | ) | | $ | 76.7 | | 4 | % | | $ | 80.1 | | 4 | % States and municipalities | | | 154.8 | | | (6.8 | ) | | | 148.0 | | 7 | | | | 159.9 | | 8 | Corporate securities | | | 710.3 | | | (40.1 | ) | | | 670.0 | | 34 | | | | 655.3 | | 32 | Mortgage-backed securities | | | 772.0 | | | (38.5 | ) | | | 733.5 | | 37 | | | | 831.8 | | 41 | Asset-backed securities | | | 175.0 | | | (3.1 | ) | | | 171.9 | | 9 | | | | 163.1 | | 8 | Collateralized loan obligations | | | 2.5 | | | — | | | | 2.5 | | — | | | | 12.5 | | 1 | Bank loans and other | | | 173.4 | | | (0.9 | ) | | | 171.7 | | 9 | | | | 138.0 | | 7 | Total fixed maturity securities | | $ | 2,068.9 | | $ | (93.6 | ) | | $ | 1,974.3 | | 100 | % | | $ | 2,040.7 | | 100 | % Weighted average book yield | | | 4.9% | | | | 4.9% Average credit quality (S&P) | | | A+ | | | | A+ Modified duration(2) | | | 4.3 | | | | 4.1 (1) Amortized cost excludes allowance for current expected credit losses of $1.0 million | | | | | | | (2) Modified duration is measured by the sensitivity to changes in interest rates | | | | | | | | | | | | | | | EMPLOYERS HOLDINGS, INC. Book Value Per Share (unaudited) $ in millions, except per share amounts | | | | | | | | | | September 30, 2026 | | June 30, 2026 | | December 31, 2025 | | September 30, 2025 Numerators: | | | | | | | | Stockholders' equity | A | $ | 785.6 | | | $ | 858.8 | | | $ | 955.7 | | | $ | 1,039.2 | Plus: Deferred Gain | | | 84.0 | | | | 85.3 | | | | 88.0 | | | | 89.4 | Stockholders' equity including the Deferred Gain(1) | B | | 869.6 | | | | 944.1 | | | | 1,043.7 | | | | 1,128.6 | Accumulated other comprehensive loss (income) | | | 93.6 | | | | 15.5 | | | | (9.3 | ) | | | 46.4 | Income taxes related to accumulated other comprehensive (loss) income | | | (19.6 | ) | | | (3.3 | ) | | | 2.0 | | | | (9.8 | ) Adjusted stockholders' equity(1) | C | $ | 943.6 | | | $ | 956.3 | | | $ | 1,036.4 | | | $ | 1,165.2 | | | | | | | | | Denominator (shares outstanding) | D | | 17,590,493 | | | | 17,954,305 | | | | 20,342,135 | | | | 22,709,604 | | | | | | | | | Book value per share(1) | A / D | $ | 44.66 | | | $ | 47.83 | | | $ | 46.98 | | | $ | 45.76 | Book value per share including the Deferred Gain(1) | B / D | | 49.44 | | | | 52.58 | | | | 51.31 | | | | 49.70 | Adjusted book value per share(1) | C / D | | 53.64 | | | | 53.26 | | | | 50.95 | | | | 51.31 | | | | | | | | | Year-over-year change in:(2) | | | | | | | | Book value per share | | | 0.5 | % | | | 7.7 | % | | | 10.8 | % | | | 6.3 | % Book value per share including the Deferred Gain | | | 2.1 | | | | 9.0 | | | | 11.0 | | | | 6.1 | Adjusted book value per share | | | 7.1 | | | | 5.6 | | | | 3.0 | | | | 5.5 | | | | | | | | | (1) See Page 10 for information regarding our use of Non-GAAP Financial Measures. (2) Reflects the twelve month change in book value per share after taking into account dividends declared of $1.32, $1.30, $1.26, and $1.24 for the twelve month periods ended September 30, 2026, June 30, 2026, December 31, 2025, and September 30, 2025, respectively. | | | | EMPLOYERS HOLDINGS, INC. Earnings Per Share (unaudited) $ in millions, except per share amounts | | | | | | Three Months Ended | | Nine Months Ended | | September 30, | | September 30, | | | 2026 | | | | 2025 | | | | 2026 | | | | 2025 | Numerators: | | | | | | | | Net income (loss) | A | $ | 11.6 | | | $ | (8.3 | ) | | $ | 50.8 | | | $ | 34.2 | Impact of the LPT Agreement | | | (1.3 | ) | | | (1.3 | ) | | | (4.0 | ) | | | (4.6 | ) Net income (loss) excluding LPT(1) | B | | 10.3 | | | | (9.6 | ) | | | 46.8 | | | | 29.6 | Net realized and unrealized losses (gains) on investments | | | 3.2 | | | | (21.2 | ) | | | (13.8 | ) | | | (29.3 | ) Income tax (benefit) expense related to items excluded from Net income | | | (0.7 | ) | | | 4.2 | | | | 2.9 | | | | 5.9 | Adjusted net income (loss)(1) | C | $ | 12.8 | | | $ | (25.5 | ) | | $ | 35.9 | | | $ | 7.3 | | | | | | | | | Denominators: | | | | | | | | Average common shares outstanding (basic) | D | | 17,899,547 | | | | 23,247,221 | | | | 18,473,508 | | | | 23,879,686 | Average common shares outstanding (diluted) | E | | 18,061,623 | | | | 23,351,319 | | | | 18,613,733 | | | | 24,027,153 | | | | | | | | | Earnings (loss) per share: | | | | | | | | Basic | A / D | $ | 0.65 | | | $ | (0.36 | ) | | $ | 2.75 | | | $ | 1.43 | Diluted | A / E | | 0.64 | | | | (0.36 | ) | | | 2.73 | | | | 1.42 | | | | | | | | | Earnings (loss) per share excluding LPT:(1) | | | | | | | | Basic | B / D | $ | 0.58 | | | $ | (0.41 | ) | | $ | 2.53 | | | $ | 1.24 | Diluted | B / E | | 0.57 | | | | (0.41 | ) | | | 2.51 | | | | 1.23 | | | | | | | | | Adjusted earnings (loss) per share:(1) | | | | | | | | Basic | C / D | $ | 0.72 | | | $ | (1.10 | ) | | $ | 1.94 | | | $ | 0.31 | Diluted | C / E | | 0.71 | | | | (1.10 | ) | | | 1.93 | | | | 0.30 | | | | | | | | | (1) See Page 10 for information regarding our use of Non-GAAP Financial Measures. 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 (loss) (see Page 3 for calculations) is net income (loss) 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 (loss) 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.

RENO, Nev., Sept. 29, 2026 (GLOBE NEWSWIRE) -- Employers Holdings, Inc. (the "Company") (NYSE:EIG) will release its third quarter 2026 financial results after market close on Wednesday, October 28, 2026, after which these materials will be available on the Company's website at www.employers.com through the "Investors" link. Conference Call Details The Company will review these financial results via a conference call and webcast on Thursday, October 29, 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 EMPLOYERS 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]