Employers Holdings, Inc. (EIG) Q3 2025 Earnings Call Transcript
Gross premiums written $183.9 million compared to $181.2 million for the prior year, an increase of 1.4% due primarily to renewal business premium growth.
Net premiums earned $192.1 million compared to $186.6 million for the prior year, an increase of 3% due primarily to larger levels of 2024 written premium earning in 2025.
Losses and loss adjustment expenses (LAE) $186.6 million versus $117.7 million a year ago, reflecting an increase due to the rapid rise in cumulative trauma claim frequency in California and a cumulative catch-up adjustment of $11.4 million for 2025 accident year loss and LAE reserves.
Accident year 2025 loss and LAE ratio Increased from 69% to 72%, with a 78.1% loss ratio for the quarter, driven by the increasing frequency of California CT claims.
Reserve strengthening for prior accident years Increased by $38.2 million due to the increased frequency of California CT claims and a more conservative approach across the book of business.
Commission expense $23 million for the quarter versus $25.8 million for the prior year, with a decrease in the commission expense ratio from 13.8% to 12%, primarily due to a higher proportion of renewal business and lower agency incentive accruals.
Underwriting expenses $39.6 million for the quarter versus $43.8 million for the prior year, with a decrease in the underwriting expense ratio from 23.5% to 20.6%, driven by lower compensation-related expenses and higher net premiums earned.
Net investment income $26.1 million for the quarter, relatively flat compared to the prior year despite a lower yield environment.
Net realized and unrealized gains on investments $21.2 million for the quarter compared to $10.9 million for the prior quarter, reflecting an increase.
Adjusted net loss $25.5 million compared to adjusted net income of $20.2 million a year ago, impacted by the increased frequency of California CT claims and reserve strengthening.
Book value per share (including deferred gain) Increased 6.1% to $49.70 over the last 12 months.
Adjusted book value per share Increased by 5.5% to $51.31 over the last 12 months.
Trade with 70% Backtested Accuracy
Analyst Views on EIG
About EIG
About the author
Azarias Capital Establishes New Position in Employers Holdings with $2.98 Million Acquisition
- New Position: On January 22, Azarias Capital Management disclosed a new position in Employers Holdings by acquiring 69,108 shares for approximately $2.98 million, reflecting confidence in the company's future prospects.
- AUM Proportion: This acquisition represents 1.31% of Azarias Capital's reportable AUM as of December 31, indicating a strategic move within their diversified investment portfolio.
- Financial Performance: Despite reporting a net loss of $8.3 million or $0.36 per share in Q3, Employers Holdings saw a 3% increase in net premiums earned to $192.1 million, highlighting ongoing demand in the small business workers' compensation insurance market.
- Undervalued Stock: As of January 22, Employers Holdings' stock was priced at $44.21, significantly below its adjusted book value of $51.31, suggesting a potential buying opportunity for investors looking for value in the insurance sector.
Employers Holdings, Inc. (EIG) Receives A Rating from AM Best, Reflecting Financial Strength
- Financial Strength Rating: AM Best has affirmed Employers Insurance Company's Financial Strength Rating of A (Excellent) and Long-Term Issuer Credit Ratings of 'a' (Excellent), reflecting the company's robust financial stability and operational performance.
- Capital Adequacy: Employers' risk-adjusted capitalization is assessed at the strongest level, bolstered by a comprehensive reinsurance program and a strong history of reserving, enhancing the quality of its balance sheet.
- Profitability Improvement: Despite reserve strengthening in 2025, Employers reported sustained pre-tax earnings, benefiting from a diversified investment portfolio and strong underwriting performance, showcasing a competitive edge over peers.
- Business Concentration Risk: As a monoline workers' compensation insurer focused on small businesses, Employers faces some business concentration risks; however, management's market expertise mitigates this concern, and the company is implementing a refined strategy targeting specific industries.
MidOcean Acquires 20% Stake in PETRONAS' Canadian Entities
- Strategic Investment: MidOcean Energy has completed the acquisition of a 20% stake in PETRONAS' key Canadian entities, including the North Montney Upstream Joint Venture and the LNG Canada Project, securing upstream resources and downstream liquefaction capabilities across the LNG value chain.
- Resource Assurance: This transaction provides MidOcean with approximately 0.7 MTPA of associated LNG production from the LNG Canada Project, with potential for further growth, thereby enhancing its competitive position in the market.
- Industry Leadership: EIG, as a leading institutional investor in the global energy and infrastructure sectors, manages $24.3 billion in assets, showcasing its strong capabilities and influence in energy investments.
- Long-term Vision: MidOcean's acquisition reflects its belief in LNG as a critical component of a lower carbon, competitive, and secure global energy system, aiming to build a diversified and resilient global LNG portfolio to promote sustainable development.
Upcoming Ex-Dividend Dates for BOK Financial, Employers Holdings, and WisdomTree
Upcoming Ex-Dividend Dates: On 11/12/25, BOK Financial Corp (BOKF), Employers Holdings Inc (EIG), and WisdomTree Inc (WT) will trade ex-dividend, with respective dividends of $0.63, $0.32, and $0.03 payable on 11/26/25.
Expected Price Adjustments: Following the ex-dividend date, BOKF shares are expected to open 0.58% lower, EIG by 0.83%, and WT by 0.26%, based on their recent stock prices.
Dividend Yield Estimates: The estimated annualized yields for the upcoming dividends are 2.33% for BOK Financial Corp, 3.33% for Employers Holdings Inc, and 1.04% for WisdomTree Inc, reflecting their historical dividend stability.
Current Trading Performance: As of Monday trading, BOK Financial Corp shares are up 1.6%, Employers Holdings Inc shares are up 0.3%, while WisdomTree Inc shares have decreased by 0.7%.
Transcript of Employers (EIG) Earnings Call for Q3 2025
- Author's Perspective: The views and opinions presented are solely those of the author.
- No Official Endorsement: The content does not necessarily reflect the views of Nasdaq, Inc.
Employers Holdings, Inc. Plans Earnings Release and Conference Call for Third Quarter 2025
Financial Results Announcement: Employers Holdings, Inc. will release its third quarter 2025 financial results on October 30, 2025, with materials available on their website.
Conference Call Details: A conference call to discuss the financial results will take place on October 31, 2025, at 11:00 a.m. EDT, requiring prior registration for participation.
Company Overview: Employers Holdings, Inc. specializes in workers' compensation insurance for small and mid-sized businesses, offering comprehensive coverage and risk management services.
Digital Solutions: The company also provides Cerity, a digital-first platform for direct-to-consumer workers' compensation insurance, emphasizing fast and affordable coverage options.
Azarias Capital Establishes New Position in Employers Holdings with $2.98 Million Acquisition
- New Position: On January 22, Azarias Capital Management disclosed a new position in Employers Holdings by acquiring 69,108 shares for approximately $2.98 million, reflecting confidence in the company's future prospects.
- AUM Proportion: This acquisition represents 1.31% of Azarias Capital's reportable AUM as of December 31, indicating a strategic move within their diversified investment portfolio.
- Financial Performance: Despite reporting a net loss of $8.3 million or $0.36 per share in Q3, Employers Holdings saw a 3% increase in net premiums earned to $192.1 million, highlighting ongoing demand in the small business workers' compensation insurance market.
- Undervalued Stock: As of January 22, Employers Holdings' stock was priced at $44.21, significantly below its adjusted book value of $51.31, suggesting a potential buying opportunity for investors looking for value in the insurance sector.
Employers Holdings, Inc. (EIG) Receives A Rating from AM Best, Reflecting Financial Strength
- Financial Strength Rating: AM Best has affirmed Employers Insurance Company's Financial Strength Rating of A (Excellent) and Long-Term Issuer Credit Ratings of 'a' (Excellent), reflecting the company's robust financial stability and operational performance.
- Capital Adequacy: Employers' risk-adjusted capitalization is assessed at the strongest level, bolstered by a comprehensive reinsurance program and a strong history of reserving, enhancing the quality of its balance sheet.
- Profitability Improvement: Despite reserve strengthening in 2025, Employers reported sustained pre-tax earnings, benefiting from a diversified investment portfolio and strong underwriting performance, showcasing a competitive edge over peers.
- Business Concentration Risk: As a monoline workers' compensation insurer focused on small businesses, Employers faces some business concentration risks; however, management's market expertise mitigates this concern, and the company is implementing a refined strategy targeting specific industries.
MidOcean Acquires 20% Stake in PETRONAS' Canadian Entities
- Strategic Investment: MidOcean Energy has completed the acquisition of a 20% stake in PETRONAS' key Canadian entities, including the North Montney Upstream Joint Venture and the LNG Canada Project, securing upstream resources and downstream liquefaction capabilities across the LNG value chain.
- Resource Assurance: This transaction provides MidOcean with approximately 0.7 MTPA of associated LNG production from the LNG Canada Project, with potential for further growth, thereby enhancing its competitive position in the market.
- Industry Leadership: EIG, as a leading institutional investor in the global energy and infrastructure sectors, manages $24.3 billion in assets, showcasing its strong capabilities and influence in energy investments.
- Long-term Vision: MidOcean's acquisition reflects its belief in LNG as a critical component of a lower carbon, competitive, and secure global energy system, aiming to build a diversified and resilient global LNG portfolio to promote sustainable development.
Upcoming Ex-Dividend Dates for BOK Financial, Employers Holdings, and WisdomTree
Upcoming Ex-Dividend Dates: On 11/12/25, BOK Financial Corp (BOKF), Employers Holdings Inc (EIG), and WisdomTree Inc (WT) will trade ex-dividend, with respective dividends of $0.63, $0.32, and $0.03 payable on 11/26/25.
Expected Price Adjustments: Following the ex-dividend date, BOKF shares are expected to open 0.58% lower, EIG by 0.83%, and WT by 0.26%, based on their recent stock prices.
Dividend Yield Estimates: The estimated annualized yields for the upcoming dividends are 2.33% for BOK Financial Corp, 3.33% for Employers Holdings Inc, and 1.04% for WisdomTree Inc, reflecting their historical dividend stability.
Current Trading Performance: As of Monday trading, BOK Financial Corp shares are up 1.6%, Employers Holdings Inc shares are up 0.3%, while WisdomTree Inc shares have decreased by 0.7%.
Transcript of Employers (EIG) Earnings Call for Q3 2025
- Author's Perspective: The views and opinions presented are solely those of the author.
- No Official Endorsement: The content does not necessarily reflect the views of Nasdaq, Inc.
Employers Holdings, Inc. Plans Earnings Release and Conference Call for Third Quarter 2025
Financial Results Announcement: Employers Holdings, Inc. will release its third quarter 2025 financial results on October 30, 2025, with materials available on their website.
Conference Call Details: A conference call to discuss the financial results will take place on October 31, 2025, at 11:00 a.m. EDT, requiring prior registration for participation.
Company Overview: Employers Holdings, Inc. specializes in workers' compensation insurance for small and mid-sized businesses, offering comprehensive coverage and risk management services.
Digital Solutions: The company also provides Cerity, a digital-first platform for direct-to-consumer workers' compensation insurance, emphasizing fast and affordable coverage options.
