Key Highlights

  • Net income of USD 11.6 million compared with a USD 8.3 million loss a year earlier, which included reserve strengthening.
  • Loss and LAE ratio improved to 71.2% from 97.1%, lowering the GAAP combined ratio to 108.4% from 129.7%.
  • Gross premiums written fell 18% to USD 151.1 million as pricing and underwriting actions prioritized profitability over volume.
  • Net investment income rose 23.8% to USD 32.3 million, and USD 24.4 million was returned to stockholders.

Employers Holdings, Inc. (NYSE:EIG) reported third-quarter 2026 adjusted net income of USD 12.8 million, or USD 0.71 per diluted share, above a consensus estimate of USD 0.59 and a swing from an adjusted loss of USD 1.10 per share a year earlier. GAAP net income was USD 11.6 million, or USD 0.64 per diluted share, compared with a net loss of USD 8.3 million, or USD 0.36 per share. Total revenues were USD 189.3 million, down from USD 239.3 million and below a consensus estimate of USD 191.46 million.

Chief executive Katherine Antonello said the improvement came mainly from the absence of the reserve strengthening booked in the third quarter of 2025, which was approximately USD 38.0 million, and that no prior-year loss development has been recognized on the voluntary business this year. Net premiums earned declined 17% to USD 160.2 million.

Underwriting and Investment Detail

The loss and LAE ratio fell to 71.2% from 97.1%, and the current accident year ratio on voluntary business, excluding the loss portfolio transfer, was 72.0%. The commission expense ratio rose to 12.9% from 12.0%, while the underwriting expense ratio climbed to 24.3% from 20.6% because underwriting expenses of USD 38.9 million were spread over a smaller premium base. The GAAP combined ratio was 108.4%, or 109.2% excluding the loss portfolio transfer, so the company still did not reach an underwriting profit.

Net investment income increased to USD 32.3 million from USD 26.1 million on higher yields following the 2025 portfolio rebalancing and USD 5.6 million from private equity investments. Net realized and unrealized losses on investments were USD 3.2 million, against gains of USD 21.2 million a year earlier. Policies in force fell 8% to 124,043, a smaller decline than premium, as the company retained most small business customers while exiting selected classes.

Capital, Dividend and Product Launches

Book value per share including the Deferred Gain was USD 49.44, up 2.1% from a year earlier with dividends declared, but down 5.3% from the second quarter because rising interest rates lowered the market value of fixed income holdings. Adjusted book value per share, which excludes accumulated other comprehensive income, was USD 53.64, up 7.1% year over year. The company repurchased 373,848 shares at an average price of USD 48.44, leaving USD 94.9 million of authorization.

The board declared a regular quarterly dividend of USD 0.34 per share, payable December 3, 2026 to holders of record on November 12, 2026. Antonello said the excess workers' compensation product launched in June has written 31 accounts and USD 6.5 million of premium, and a second product, large deductible, is targeted to launch next year. Interest and financing expenses rose to USD 1.3 million from USD 0.2 million on the USD 125.0 million of senior debt tied to the recapitalization plan. The release gave no numerical financial guidance.

Areas of Focus Going Forward

Four readings are worth following. The first is the combined ratio of 108.4%, which management says it aims to bring back to underwriting profitability, alongside an underwriting expense ratio of 24.3%. The second is premium: gross premiums written of USD 151.1 million and policies in force of 124,043, the latter down 8%. The third is the excess workers' compensation book at 31 accounts and USD 6.5 million of premium, with the large deductible launch targeted for next year. The fourth is capital, where USD 94.9 million of repurchase authorization remains, the USD 0.34 dividend is scheduled for December 3, and adjusted book value stands at USD 53.64 per share.