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Shares of Employers Holdings, Inc. EIG have risen 4.2% since the company reported first-quarter 2025 results on May 1. The better-than-expected quarterly earnings benefited from the retention of renewal business, an increased record number of policies in force and improved investment returns. However, the upside was partly offset by a slight decline in net premiums, as well as elevated losses and loss adjustment expenses that pressured profitability.
EIG reported first-quarter adjusted earnings per share (EPS) of 87 cents, which beat the Zacks Consensus Estimate by 26.1%. The bottom line increased 29.9% year over year.
Operating revenues were $202.6 million, which declined 9.2% year over year. The top line missed the consensus mark by 6.6%.
Employers Holdings Inc Price, Consensus and EPS Surprise
Employers Holdings Inc price-consensus-eps-surprise-chart | Employers Holdings Inc Quote
EIG’s Q1 Updates
Gross premiums written rose 1% year over year to $212.1 million due to strong retention in the renewal business. Net premiums written of $210.3 million increased 1% year over year.
Nevertheless, net premiums earned decreased 1% year over year to $183 million and fell short of the Zacks Consensus Estimate of $192.4 million.
Net investment income of $32.1 million grew 20% year over year due to improved investment returns in limited partnerships. The metric surpassed the consensus mark of $27.3 million.
Total expenses decreased 0.6% year over year to $186.7 million. Losses and loss adjustment expenses escalated 4% year over year due to higher current accident year losses and loss adjustment expense provision. Commission expenses declined 8% year over year.
EIG posted a pre-tax income of $15.9 million, which decreased 55% year over year.
Policies in force were at a record level of 133,121 at the first-quarter end. The figure increased 4% year over year.
The GAAP combined ratio was 102% during the quarter, which deteriorated 40 basis points (bps) year over year but came lower than the Zacks Consensus Estimate of 102.7%. The underwriting expense ratio improved 160 bps year over year to 23.4%. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)
EIG’s Financial Update (as of March 31, 2025)
Employers Holdings exited the first quarter with investments, cash and cash equivalents of $2.5 billion, which jumped 0.2% from the 2024-end level.
Total assets of $3.6 billion rose from $3.5 billion at 2024-end.
Total stockholders’ equity of $1.1 billion increased 0.7% from the 2024-end level.
Adjusted book value per share was $50.75 at the quarter-end, which increased from $50.71 at 2024-end.