| Metric | Value ($ M) | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Revenue | 220.20 | 6.1% | 10.6% |
| Total Income | 220.20 | 6.1% | 10.6% |
| Expenditure | 185.50 | 4.8% | 11.4% |
| PBT | 34.70 | 171.1% | 6.2% |
| Net Profit | 29.10 | 185.3% | 2.0% |
| OPM | — | ||
| NPM | 13.21% | 8.30pp | 1.16pp |
| EPS | 1.60 | 201.9% | 29.0% |
Employers Holdings, Inc. Reports Q2 2026 Results; EPS Grows 29%
30 Jul 2026 · 30 Jul, 2:08 am
Summary
Employers Holdings, Inc. reported strong per-share results for the second quarter of 2026, with diluted earnings per share growing 29% year-over-year to $1.59 and adjusted earnings per share increasing by 46% to $0.70. This growth was achieved despite a 12% decrease in net premiums earned to $174.1 million, reflecting a strategic prioritization of profitability over volume. The company also saw an improvement in its loss and LAE ratio to 70.2% and a 9.0% year-over-year increase in book value per share. Management highlighted the accretive impact of their recapitalization strategy and share repurchases, and announced the successful launch of an excess workers' compensation product line.
Key Highlights
- 1
Diluted earnings per share grew 29% year-over-year to $1.59 in the second quarter of 2026.
- 2
Adjusted earnings per share saw a significant increase of 46% year-over-year, reaching $0.70 for Q2 2026.
- 3
Net premiums earned were $174.1 million, a decrease of 12% compared to the prior year's second quarter.
- 4
The loss and LAE ratio improved to 70.2% from 70.7% in the second quarter of 2026.
- 5
Book value per share, including the Deferred Gain, increased by 9.0% year-over-year to $52.58.
- 6
The company declared a regular quarterly dividend of $0.34 per share for the third quarter of 2026.
Management Comments
Katherine Antonello
This was another quarter defined by discipline, and the results of that discipline are becoming visible where it matters most, in our per-share results. Diluted earnings per share grew 29% year-over-year and adjusted earnings per share grew 46%, even as net income was essentially flat. These results reflect the accretive impact of our recapitalization strategy and the share repurchases we have executed as a part of it. Our net premiums earned were $174.1 million, a decline of 12%, reflecting the pricing and underwriting actions we have undertaken to prioritize profitability over volume. Policies in-force declined 5% year-over-year, a notably smaller reduction than the decline in premium, reflecting our deliberate shift toward our core small business segment. Our loss and LAE ratio improved to 70.2% from 70.7% and our second quarter full actuarial review confirmed no prior period development on our voluntary business — both results consistent with our expectations and the underwriting discipline we have maintained. Our underwriting expenses declined $3.4 million year-over-year, though the expense ratio increased slightly given the smaller premium base it is measured against. Our investment portfolio delivered net investment income of $27.4 million, with a book yield of 4.9% — a 40 basis-point increase from the prior year — reflecting the benefits of our 2025 investment rebalancing. We remain focused on prudent capital management. We returned $34.0 million to shareholders during the quarter through $6.3 million in dividends and $27.7 million in share repurchases. Book value per share, including the Deferred Gain, grew 9.0% year-over-year, and adjusted book value per share grew 5.6%, a tangible measure of the value we continue to build. As we look ahead, profitable growth remains our north star, and diversifying our workers' compensation product offering is a meaningful part of how we get there. In June, we began writing excess workers' compensation, marking the successful launch of a new product line. We are excited about the opportunities ahead.
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