Employers Holdings stock returns to profit as underwriting improves

Employers Holdings reported a return to profitability for the third quarter ended September 30, 2026. In a release published on Wednesday, October 28, the Nevada-based insurer said net income reached 11.6 million US dollars, compared with a net loss of 8.3 million US dollars in the same quarter of 2025. The company attributed the improvement primarily to the absence of prior-year reserve strengthening.

The company release published by GlobeNewswire showed adjusted net income of 12.8 million US dollars, or 0.71 US dollars per diluted share, against an adjusted loss of 25.5 million US dollars, or 1.10 US dollars per share, a year earlier. Net investment income rose to 32.3 million US dollars from 26.1 million US dollars.

Underwriting improves as premiums fall

Employers Holdings reported gross premiums written of 151.1 million US dollars, down from 183.9 million US dollars. Net premiums earned fell to 160.2 million US dollars from 192.1 million US dollars as pricing and underwriting actions favored profitability over volume in a prolonged soft market.

The loss and loss-adjustment expense ratio declined to 71.2 percent from 97.1 percent. The GAAP combined ratio improved to 108.4 percent from 129.7 percent, although it remained above the 100 percent threshold associated with an underwriting profit. Policies in force fell to 124,043 from 135,414.

Dividend supports shareholder returns

The board declared a regular quarterly dividend of 0.34 US dollars per share, payable on December 3, 2026, to shareholders of record on November 12. Employers Holdings said it returned 24.4 million US dollars to shareholders during the quarter through dividends and share repurchases, including 373,848 repurchased shares at an average price of 48.44 US dollars.

Business model and market position

Employers Holdings is a holding company whose subsidiaries provide workers compensation insurance, excess workers compensation and related services. Its guaranteed-cost products target small and midsized businesses in lower-hazard industries, while its excess workers compensation offering serves self-insured enterprises. The group operates across the United States, with Cerity providing digital-first, direct-to-consumer workers compensation coverage.

Employers Holdings stock is part of the U.S. equity market, alongside the broader S&P 500.

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