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Mar 31, 2025
Employers Q1 2025 Earnings Report
Reported Financial Results for the First Quarter Ended March 31, 2025
Key Takeaways
Employers Holdings, Inc. reported a decrease in net income and EPS for Q1 2025 compared to the prior year, primarily due to investment performance. However, adjusted net income and adjusted EPS saw significant increases. The company experienced a slight increase in gross premiums written, a decrease in net premiums earned, and an improvement in the underwriting expense ratio. Net investment income also increased significantly.
Net income per diluted share decreased by 53% to $0.52.
Adjusted net income per diluted share increased by 30% to $0.87.
Gross premiums written increased by 1% to $212.1 million.
Underwriting expense ratio improved from 25.0% to 23.4%.
Forward Guidance
The company raised its regular quarterly dividend and authorized a new share repurchase program, reflecting a strong balance sheet and confidence in future operations. They are also implementing refinements to underwriting and pricing to return to moderate new business growth and accelerating appetite expansion efforts.
Positive Outlook
- Increased regular quarterly dividend to $0.32 per share.
- Authorized a new $125.0 million share repurchase program.
- Strong balance sheet and abundant underwriting capital.
- Identified refinements in underwriting and pricing to drive new business growth.
- Accelerating appetite expansion efforts.
Challenges Ahead
- Moderation of employment and wage growth impacting final audit premiums.
- Current accident year loss and LAE ratio on voluntary business slightly above the prior year.
- Full actuarial study not performed in the first quarter.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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