Employers Holdings posts $11.6 million third-quarter profit after year-earlier loss
Key Facts
Employers Holdings reported net income of $11.6 million, or $0.64 per diluted share, in the third quarter of 2026, compared with a net loss of $8.3 million, or $0.36 per share, in the same period of 2025. The company said in its results statement issued on October 28 that the return to profitability was mainly due to the absence of reserve strengthening recorded a year earlier. In the third quarter of 2025, that strengthening amounted to about $38.0 million. The company recorded no prior-year loss development in its voluntary business this year. It reported results after the market close on October 28.
Total revenue fell to $189.3 million in the third quarter from $239.3 million a year earlier. The company said pricing and underwriting actions launched in 2025 prioritized profitability over business volume in what it described as a soft, prolonged market. These actions contributed to a decline in new and renewal premiums. The figures reflect a contraction in insurance activity as the company moved to improve underwriting terms.
The GAAP combined ratio improved to 108.4% in the third quarter from 129.7% a year earlier, while it was 109.2% excluding the loss portfolio transfer agreement, compared with 130.4% in the year-earlier period. The company said the absence of the earlier reserve strengthening was the main factor behind the improvement in net results. Meanwhile, the decline in premiums remained tied to a preference for profitability over volume. The comparison between the combined ratio and business volume puts underwriting and growth at the center of the company's results.
Realized and unrealized investment results were a loss of $3.2 million, following gains of $21.2 million in the third quarter of 2025. The company attributed this year's result to a decline in the value of private equity investments due to distributions, alongside lower gains on common stocks. Interest and financing expenses rose to $1.3 million from $0.2 million a year earlier. The company linked the increase to $125.0 million of senior debt under its recapitalization plan announced in the fourth quarter of 2025. These items provide parallel financial context for the shift in net income, as investment and financing performance differed from the annual profitability trend.
Employers Holdings, listed on the New York Stock Exchange under the ticker EIG, provides workers' compensation insurance, excess insurance and related services through its subsidiaries. As it expands its offerings, the company said its excess workers' compensation product, launched in June, had reached 31 accounts and $6.5 million in premiums as of the statement date. It also aims to launch a large-deductible product next year. The company announced a quarterly cash dividend of $0.34 per share on October 28. The dividend is payable on December 3 to shareholders of record on November 12.
The company's stock closed at $51.94 on October 27, according to EL7 data, before results were announced the following day. EL7 data did not include the session's high and low prices cited in the previous draft. The company scheduled its third-quarter results call for Thursday, October 29, at 11:00 a.m. Eastern time, or 8:00 a.m. Pacific time. The call follows the earnings and dividend announcements and is expected to provide details of the quarter's results. The call is the next scheduled event on the company's calendar following the statement.