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Employers HoldingsEIG +0.20%70 Return-on-Tangible-Equity is 14.32% as of Jun. 2026, which is 20% above its 10-year median of 11.94. GuruFocus rates EIG with a GF Score™ of 70/100 and a GF Value™ of $53.74 (Fairly Valued). The stock has 4 warning signs investors should review. Among 495 Insurance companies, Employers Holdings ranks worse than 91.52% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Employers Holdings's annualized net income for the quarter that ended in Jun. 2026 was $116.4 Mil. Employers Holdings's average shareholder tangible equity for the quarter that ended in Jun. 2026 was $812.9 Mil. Therefore, Employers Holdings's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2026 was 14.32%.
The historical rank and industry rank for Employers Holdings's Return-on-Tangible-Equity or its related term are showing as below:
EIG'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 0.83 Med: 11.94 Max: 15.05
Current: 0.83
During the past 13 years, Employers Holdings's highest Return-on-Tangible-Equity was 15.05%. The lowest was 0.83%. And the median was 11.94%.
EIG's Return-on-Tangible-Equity is ranked worse than 91.52% of 495
companies
in the Insurance industry
Industry Median: 13.62
vs EIG: 0.83
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Employers Holdings Return-on-Tangible-Equity Related Terms
Employers Holdings Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Employers Holdings's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
EIG vs TIPT, AMSF, ITIC: Return-on-Tangible-Equity Comparison
For the Insurance - Specialty subindustry, Employers Holdings's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Employers Holdings Return-on-Tangible-Equity vs Insurance Industry
For the Insurance industry and Financial Services sector, Employers Holdings's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Employers Holdings's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Jun. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 14.32% mean?
Employers Holdings (EIG) has a Return-on-Tangible-Equity of 14.32% as of Jun. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Employers Holdings and its competitors. This is 20% above median its historical median of 11.94. Over the past decade, Employers Holdings' Return-on-Tangible-Equity has ranged from 0.83 to 15.05. According to the industry distribution chart, Employers Holdings ranks #453 out of 495 companies in the Insurance industry, placing it in the top 91.5%.
Is Employers Holdings' Return-on-Tangible-Equity too high?
Employers Holdings' current Return-on-Tangible-Equity of 14.32% is 20% above median its 10-year median of 11.94. Over the past 10 years, this metric has ranged from a low of 0.83 to a high of 15.05. The Insurance industry median Return-on-Tangible-Equity is 13.62. Employers Holdings' value of 14.32% is 5.1% above this industry median. Based on the distribution chart, Employers Holdings ranks #453 out of 495 companies in the Insurance industry, which is in the bottom quartile relative to peers. Overall, Employers Holdings has a GF Score™ of 70/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Employers Holdings' Return-on-Tangible-Equity compare to TIPT and AMSF?
According to the Insurance industry distribution chart, Employers Holdings ranks #453 out of 495 companies for Return-on-Tangible-Equity. This places Employers Holdings in the lower half of its industry. The industry median Return-on-Tangible-Equity is 13.62. Employers Holdings' value of 14.32% is 5.1% above this benchmark. Historically, Employers Holdings' own Return-on-Tangible-Equity has ranged from 0.83 to 15.05 over the past decade. While the company's 10-year median is 11.94 vs. the industry median of 13.62, Employers Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for an Insurance company?
The median Return-on-Tangible-Equity among Insurance companies is 13.62, based on 495 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Employers Holdings's current Return-on-Tangible-Equity of 14.32% is 5.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Employers Holdings and its competitors. For the Insurance industry, the median Return-on-Tangible-Equity is 13.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Employers Holdings's current Return-on-Tangible-Equity is 14.32%, which is 20% above median its own 10-year median of 11.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Employers Holdings stock overvalued right now?
Based on GuruFocus' analysis, Employers Holdings (EIG) is currently considered Fairly Valued. The stock's GF Value™ is $53.74, compared to a current price of $50.65 — trading 5.7% below its estimated fair value. The current Return-on-Tangible-Equity is 14.32%, which is 20% above median its 10-year median of 11.94 and 5.1% above the Insurance industry median of 13.62. Employers Holdings' overall GF Score™ is 70/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Employers Holdings (EIG), the current Return-on-Tangible-Equity is 14.32% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Employers Holdings (EIG) Overvalued in 2026?
Based on GuruFocus' analysis, Employers Holdings stock appears to be undervalued.
The current stock price of $50.65 is trading 5.7% below its estimated GF Value™ of $53.74.
GuruFocus considers Employers Holdings to be Fairly Valued.
Key valuation signals for EIG:
Return-on-Tangible-Equity: 14.32% (20% above median its 10-year median of 11.94)
GF Value™: $53.74 vs. price of $50.65 (5.7% below fair value)
Industry Position: 5.1% above the Insurance median (#453 of 495)
No single metric tells the full story. See the EIG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Employers Holdings Inc is a provider of workers' compensation insurance and services focused on small and mid-sized businesses engaged in low-to-medium hazard industries. Its customers are employers, and the insurance premiums that those employers pay to account for company revenue. Substantially all of the remaining revenue is generated through investments. The company operates exclusively in the United States, and it generates more than half of its business in California. By industry, the company has exposure to restaurants, which account for roughly a fourth of the total premiums the company earns. It operates as a single reportable segment, Insurance Operations through its wholly owned subsidiaries.
70GF Score
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