Employers Holdings, Inc.

Second quarter 2026 gross premiums written were $163 million, down from $203 million last year, a 20% decline. Net premium earned declined 12% year over year; underwriting expenses were $40 million versus $43 million a year ago; commission expense was $22 million versus $26 million; and net investment income was $27 million, up 1% year over year. Diluted EPS grew 29% year over year and adjusted EPS grew 46%; adjusted net income was $13 million versus $12 million last year. Management said the current accident year loss and LAE ratio on voluntary business was 72%, consistent with the full-year 2025 ratio, and no reserve changes were made for accident year 2025 and prior. For capital returns, the board declared a third quarter 2026 dividend of $0.34 per share, consistent with the 6.5% increase implemented last quarter. The company repurchased 652 thousand shares at an average price of $42.43 for $28 million in the quarter, and management said $113 million of authorization remains under the $125 million program through the end of 2027. Forward-looking commentary was positive but selective: management said California’s approved 6.6% advisory pure premium rate increase should not significantly impact its book because it believes it was already ahead on rate adequacy. The company also said it expects continued new business growth from its excess workers’ compensation launch and is turning attention to large deductible and other loss-sensitive products, while remaining disciplined on pricing and repurchases.

Kathy Antonello said the quarter made the benefits of the recapitalization fully visible, with per-share earnings growth amplified by share repurchases. She emphasized that the company is deliberately trading off volume for profitability, concentrating on core small business while building new growth avenues like excess workers’ compensation and later large deductible products. Her tone was confident and constructive, pointing to solid underwriting discipline, a strong pipeline, and what she described as genuine momentum into the second half of 2026.

Mike Pedraja highlighted the core financials: gross premiums written of $163 million, down 20%; commission expense of $22 million versus $26 million; underwriting expenses of $40 million versus $43 million; and net investment income of $27 million, essentially flat year over year. He said the portfolio’s fixed maturities had a modified duration of 4.5, average credit quality of A+, and a weighted average book yield of 4.9% versus 4.5% a year ago. On capital allocation, he noted the company repurchased 652 thousand shares for $28 million at an average price of $42.43, and said the shares are being bought prudently with return on equity as the guidepost.

Analysts pressed on California pricing, competition, reserve adequacy, the new excess workers’ compensation product, and buybacks. Management said it believes it was already ahead of the curve on California rate adequacy, that competition is especially intense in middle market and some jurisdictions, and that the book has a higher weighting to current year cumulative trauma claims so it is being more cautious on reserves. On the new product, management said July to date produced $4 million of premium from over 200 submissions and 20 bound policies, but that activity should not be linear each month because July 1 is a major renewal date in the targeted segments. On repurchases, management reiterated that it sees intrinsic value above the stock price and would accelerate buybacks if the market price weakens.