Employers Holdings Stock Earnings Reports

Employers Holdings reported Q3 2025 results driven by a focused, conservative reserve action and continued emphasis on underwriting discipline. Management completed an off-cycle reserve review and increased prior-year loss & LAE reserves by $38.2 million (2.8% of net unpaid loss & LAE), largely attributable to an uptick in cumulative trauma (CT) claim frequency in California (primarily AY 2023 and 2024). They also increased the 2025 accident-year loss & LAE ratio to 72% (with a cumulative catch-up adjustment included in the quarter), while noting frequency outside California continues to decline. Gross written premium grew modestly (+1.4%) with policy count growth (+4%) driven by small commercial. Management highlighted underwriting discipline over growth, continued pricing and underwriting actions in CA, a 4‑pronged CT mitigation plan (pricing, claims/litigation management, underwriting refinements, geographic diversification), and ongoing legislative engagement. They announced a $125 million debt-funded recapitalization and expanded share-repurchase authorization to $250 million (initial funding via short-term 3-year sources; FHLB rate cited at 3.7% fixed), and repurchased $45.2 million of stock in the quarter (total $65M used to date). Adjusted net results were weaker year-to-date versus 2024 but adjusted net income for the quarter was $25.5M (ex-investment gains). Management reiterated confidence in the balance sheet, declared a $0.32 quarterly dividend, plans to expand into excess workers’ compensation (launching submissions in early 2026, bindings by mid-2026), and will return to a regular fourth-quarter reserve review (internal and external). Rating agencies remain engaged and supportive of the company’s actions.