Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Employers HoldingsEIG +0.20%70 ROE % is 13.49% as of Jun. 2026, which is 19% above its 10-year median of 11.36. 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 500 Insurance companies, Employers Holdings ranks worse than 90.6% on this metric.
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Jun. 2026) net income data. The Revenue data used here is four times the quarterly (Jun. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
Employers Holdings ROE % Related Terms
Employers Holdings ROE % Historical Data
* Premium members only.
The historical data trend for Employers Holdings's ROE % 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.
For the Insurance - Specialty subindustry, Employers Holdings's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Insurance Industry
For the Insurance industry and Financial Services sector, Employers Holdings's ROE % distribution charts can be found below:
* The bar in red indicates where Employers Holdings's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Employers Holdings (EIG) has a ROE % of 13.49% as of Jun. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Employers Holdings and its competitors. This is 19% above median its historical median of 11.36. Over the past decade, Employers Holdings' ROE % has ranged from 0.79 to 14.39. According to the industry distribution chart, Employers Holdings ranks #453 out of 500 companies in the Insurance industry, placing it in the top 90.6%.
Is Employers Holdings' ROE % too high?
Employers Holdings' current ROE % of 13.49% is 19% above median its 10-year median of 11.36. Over the past 10 years, this metric has ranged from a low of 0.79 to a high of 14.39. The Insurance industry median ROE % is 11.75. Employers Holdings' value of 13.49% is 14.9% above this industry median. Based on the distribution chart, Employers Holdings ranks #453 out of 500 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' ROE % compare to TIPT and AMSF?
According to the Insurance industry distribution chart, Employers Holdings ranks #453 out of 500 companies for ROE %. This places Employers Holdings in the lower half of its industry. The industry median ROE % is 11.75. Employers Holdings' value of 13.49% is 14.9% above this benchmark. Historically, Employers Holdings' own ROE % has ranged from 0.79 to 14.39 over the past decade. While the company's 10-year median is 11.36 vs. the industry median of 11.75, 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 ROE % for an Insurance company?
The median ROE % among Insurance companies is 11.75, based on 500 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Employers Holdings's current ROE % of 13.49% is 14.9% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Employers Holdings and its competitors. For the Insurance industry, the median ROE % is 11.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Employers Holdings's current ROE % is 13.49%, which is 19% above median its own 10-year median of 11.36. 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 ROE % is 13.49%, which is 19% above median its 10-year median of 11.36 and 14.9% above the Insurance industry median of 11.75. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Employers Holdings (EIG), the current ROE % is 13.49% 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:
ROE %: 13.49% (19% above median its 10-year median of 11.36)
GF Value™: $53.74 vs. price of $50.65 (5.7% below fair value)
Industry Position: 14.9% above the Insurance median (#453 of 500)
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
Get the complete analysis for EIG
ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
EIG has been successfully added to your 
