Q4 2025 Employers Holdings Inc Earnings Call Transcript
Key Points
- Employers Holdings Inc (EIG) has implemented rate increases and tightened underwriting restrictions in response to the elevated frequency of California cumulative trauma claims, which is expected to strengthen underwriting profitability.
- The company's Small Commercial franchise maintained strong retention rates throughout 2025, indicating successful investments in automation and ease of use.
- Employers Holdings Inc (EIG) launched a new Excess Workers' Compensation product, expanding its capabilities and diversifying its risk profile, with strong early market response.
- The company returned $215 million to stockholders through share repurchases and regular quarterly dividends in 2025, reflecting confidence in its financial position.
- Employers Holdings Inc (EIG) achieved an 11% increase in book value per share, supported by disciplined underwriting, prudent risk management, and strategic investments.
- Gross premiums written decreased by 11% compared to the prior year quarter, primarily due to a decrease in new business writings and lower final audit premiums.
- Losses in LAE increased by 18.7% compared to the previous year, driven by an increase in the accident year 2025 selected loss and LAE ratio.
- The company anticipates reduced written premium in 2026 due to California-specific pricing and underwriting actions.
- The sale of fixed income investments resulted in an after-tax realized loss of $40 million, impacting net income and adjusted book value per share.
- Adjusted net income for the quarter was $14.5 million, a decrease from $28.7 million in the previous year, reflecting challenges in maintaining profitability.
Thank you, operator. Good morning, and welcome, everyone, to the fourth-quarter 2025 earnings call for Employers. 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.
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