Employers Holdings reported its third‑quarter 2025 financial results, showing 135,414 policies in force—a 4% year‑over‑year increase from 129,879 in Q3 2024. Gross premiums written were $183.9 million, up 1% from the same period last year, while net premiums earned rose 3% to $192.1 million, compared with $186.6 million in Q3 2024.
The loss profile was challenging: losses and loss‑adjustment expenses totaled $186.6 million, giving a calendar‑year loss ratio of 97.1%. Commission expense fell to $23.0 million and underwriting expense declined to $39.6 million. Net investment income was $26.1 million, a 2% drop from the prior year. The company strengthened its accident‑year 2025 loss and LAE reserves by $38.2 million, raising the 2025 loss ratio from 69.0% to 72.0%.
Employers Holdings declared a regular quarterly dividend of $0.32 per share and repurchased 1,049,401 shares during the quarter. The board approved a $125 million debt‑funded recapitalization plan and increased the share‑repurchase authorization by $125 million to the existing 2025 program, underscoring confidence in the company’s capital position and a commitment to returning value to shareholders.
The results were impacted by a higher frequency of California cumulative trauma claims, prompting the reserve strengthening. Management emphasized targeted pricing and underwriting actions in certain classes and jurisdictions to improve underwriting margins. Adjusted earnings per diluted share missed analyst estimates, reflecting the headwinds from the elevated loss ratio and reserve build‑up.
In comparison, Q3 2024 saw a 124% increase in net income per diluted share and a 19% increase in adjusted net income per diluted share. Gross premiums written fell 8% from Q3 2024, while net premiums earned increased 1%. The loss and loss‑adjustment expense ratio improved to 63.1% in Q3 2024 versus 97.1% in Q3 2025, highlighting the significant underwriting pressure in the current quarter.
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