Employers (EIG) Q4 2025 Earnings Call Transcript

The Motley Fool

by newsfeedback@fool.com (Motley Fool Transcribing)

February 20, 2026

AI-Generated Deep Dive Summary

Employers Holdings (EIG) reported its Q4 2025 earnings call, revealing mixed financial performance while emphasizing strategic initiatives and shareholder returns. The company’s gross premiums fell by 11% year-over-year to $156.8 million, driven by lower new business and audit premiums, despite higher renewal rates. Notably, losses and loss adjustment expenses (LAE) rose by 18.7%, reflecting elevated claims in California and the absence of favorable development. Meanwhile, net investment income saw a significant boost of 17.6% to $31.4 million, supported by strong private equity returns and fixed-income asset performance. The company’s underwriting expenses improved by 10% year-over-year to $39.8 million, attributed to cost management measures such as reduced personnel costs and policyholder dividends. However, commission expenses increased by 5.7% due to nonrecurring adjustments. A.M. Best reaffirmed its 'A' financial strength rating for EIG’s insurance subsidiaries, signaling ongoing financial stability. The firm also announced a $40 million after-tax realized loss from fixed income sales as part of its investment portfolio rebalancing efforts, which included reducing equity investments to 10% of the portfolio and extracting a $16 million net present value gain. Employers Holdings prioritized shareholder returns with strategic share repurchases and dividend increases. The company repurchased 2.4 million shares at an average price of $40.94 per share in Q4, followed by an additional 899,000 shares at $44.28 from January to February 2026. This reflects a total investment of nearly $97 million in buybacks and a remaining authorization of $53.1 million. The quarterly dividend was increased to $0.32 per share for Q1 2026, maintaining accretive returns for shareholders. Looking ahead, EIG faces challenges in California’s workers’ compensation market, where elevated cumulative trauma (CT) claims remain a concern. Management warned that tighter underwriting and pricing measures could reduce written premiums in 2026. Despite these risks, the company launched a new excess workers’ compensation product leveraging internal AI tools to expand its risk diversification.

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Originally published on The Motley Fool on 2/20/2026