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Sep 30, 2025
Employers Q3 2025 Earnings Report
Employers Holdings, Inc. reported a net loss and adjusted net loss for the third quarter of 2025, despite increases in gross and net premiums written and earned, and a record number of policies in-force.
Key Takeaways
Employers Holdings, Inc. experienced a challenging third quarter in 2025, reporting a net loss of $8.3 million and an adjusted net loss of $25.5 million, primarily due to a significant increase in the loss and loss adjustment expense ratio following an off-cycle loss reserve review. Despite these losses, the company saw growth in gross premiums written and net premiums earned, and achieved a record number of ending policies in-force, demonstrating underlying business expansion.
The company reported a net loss of $8.3 million and an adjusted net loss of $25.5 million for the quarter.
Gross premiums written increased by 1% to $183.9 million, and net premiums earned increased by 3% to $192.1 million.
The loss and loss adjustment expense ratio significantly increased from 63.1% to 97.1%, primarily due to prior accident year reserve strengthening and an increased current accident year loss and LAE ratio.
Employers achieved a record 135,414 ending policies in-force, representing a 4% year-over-year increase, and returned $52.7 million to stockholders through share repurchases and dividends.
Forward Guidance
Employers Holdings, Inc. has approved a $125.0 million debt-funded recapitalization plan and a $125.0 million increase to its existing share repurchase authorization, expanding the aggregate share repurchase authority to $250.0 million. The company also declared a regular quarterly dividend of $0.32 per share.
Positive Outlook
- Approved a $125.0 million debt-funded recapitalization plan to optimize capital structure.
- Increased share repurchase authorization by $125.0 million, bringing total authority to $250.0 million.
- Recapitalization is expected to reduce the cost of capital and improve return on equity.
- Recapitalization is anticipated to expand earnings per share and adjusted book value per share.
- Declared a regular quarterly dividend of $0.32 per share, reinforcing commitment to shareholder value.
Challenges Ahead
- The recapitalization plan involves debt funding, which could increase financial leverage.
- The impact of the recapitalization on future earnings and financial stability is subject to market conditions and execution risks.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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