EIG · Employers Holdings, Inc.

Employers Holdings, Inc. reported first quarter 2026 results reflecting disciplined underwriting prioritizing quality over volume, resulting in gross premiums written declining 14.8% to $180.8 million due to 2025 pricing and underwriting actions, while net premiums earned fell only 1.1% to $180.9 million. Net income was $10.2 million or $0.52 per diluted share, matching prior year EPS despite lower profits, with adjusted net income at $10.3 million or $0.53 per share versus $21.3 million or $0.87 last year. The GAAP combined ratio deteriorated to 107.1% from 102.0%, driven by loss and LAE ratio increasing to 71.4% from 66.0% primarily from higher cumulative trauma claim frequency in California; excluding LPT, the ratio was 107.7% versus 102.8%. Commission expense ratio rose to 13.1% from 12.6%, offset by underwriting expense ratio improving to 22.6% from 23.4% due to lower policyholder dividends and compensation expenses. Net investment income declined 11.8% to $28.3 million from reduced private equity distributions, though fixed maturity yields improved post-2025 rebalancing. CEO Katherine Antonello emphasized underwriting discipline, on-target actuarial estimates with no voluntary business development, and 72.0% current accident year loss ratio excluding LPT consistent with 2025. Capital returns remained robust at $83.0 million in Q1 via repurchases and dividends, supporting 8.9% growth in book value per share including Deferred Gain to $51.26. The Board raised the quarterly dividend 6.25% to $0.34 per share and authorized a new $125 million repurchase program through 2027, replacing the exhausted prior authorization, signaling confidence in future performance amid technology innovations like ChatGPT integration for quoting.