Employers Holdings, Inc. (EIG) reported a net loss of $23.4 million for the fourth quarter of 2025, a sharp decline from the $28.3 million profit posted in the same period a year earlier. The accident‑year loss ratio for the quarter rose to 71.3 percent, up from 59.5 percent in Q4 2024, reflecting higher claim frequency and severity, particularly in California. Adjusted earnings per share of $0.66 beat consensus estimates of $0.41 to $0.54, while revenue of $170.5 million fell short of the $216.5 million to $218.4 million range expected by analysts.
The full‑year 2025 results showed a net income of $10.8 million, a turnaround from the prior year’s loss. The company’s loss ratio for the year climbed to 76.4 percent from 60.9 percent in 2024, underscoring the persistent underwriting pressure. Net investment income reached $116.7 million, up 9 percent from $107.0 million in 2024, providing a significant offset to the underwriting losses.
EIG completed a $125 million recapitalization plan, repurchasing 2,981,141 shares at an average price of $42.00 per share. “Our commitment to returning capital to stockholders remained unwavering, as we returned $215.4 million through share repurchases and regular quarterly dividends,” the company said.
The company’s fourth‑quarter actuarial review confirmed that no additional reserve strengthening was required, and an independent actuarial firm also affirmed the adequacy of reserves. “Our fourth quarter 2025 full actuarial review delivered encouraging information,” the company noted.
The earnings beat on EPS was largely driven by disciplined cost management and a favorable mix of business lines, while the revenue miss reflected lower premium growth and the impact of higher loss ratios, especially from California cumulative trauma claims. Net investment income helped cushion the underwriting losses, and management emphasized continued focus on mitigating California claims and expanding into excess workers’ compensation.
Management remains confident in the company’s long‑term trajectory, citing strong capital strength and disciplined underwriting, but acknowledges ongoing headwinds from California claims and the need for continued pricing and underwriting adjustments.
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