Employers Holdings, Inc. reported its first quarter 2025 financial results, with net premiums earned remaining flat compared to the prior year. This was driven by higher renewal premiums, which were offset by lower new business and a reduction in audit premiums. The company ended the period with a record 133,121 policies in-force, representing a 4% year-over-year growth rate.
The current accident year loss and LAE ratio on voluntary business was recorded at 66.0%, an increase from 64.0% in 2024, reflecting observed unfavorable loss trends and the competitive rate environment. However, the commission expense ratio decreased to 12.6% from 13.6%, and the underwriting expense ratio improved to 23.4% from 25.0% year-over-year, primarily due to lower bad debt and compensation-related expenses.
Net investment income saw a significant 20% increase to $32.1 million, primarily from returns on private equity limited partnerships and higher book yields on fixed maturity securities. The Board of Directors declared an increase in the regular quarterly dividend to $0.32 per share, a 7% increase. Additionally, a new share repurchase program authorizing up to $125.0 million in repurchases through December 31, 2026, was approved, replacing the recently exhausted prior program.
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