Employers Holdings, Inc. reported a 2% decrease in gross premiums written for the second quarter of 2025, primarily due to reductions in new business within the middle market. Despite this, net premiums earned increased by 6%, and the company achieved a record number of policies in-force, up 5% year-over-year. The company's focus on profitability over growth led to targeted underwriting actions.
The company increased the accident year 2025 loss and LAE ratio on voluntary business from 66.0% in Q1 to 69.0% in Q2, in response to a rapid rise in cumulative trauma claims in California. This resulted in a calendar year loss and loss adjustment expense ratio of 70.7%, compared to 57.9% a year ago. Management reallocated observed favorable reserve development from accident years 2020 and prior to more recent accident years, resulting in no net prior loss reserve development.
The commission expense ratio decreased to 13.2% from 13.9% year-over-year, driven by lower new business premiums and increased net premiums earned. The underwriting expense ratio also decreased to 21.7% from 22.4%, benefiting from automation, customer self-service capabilities, and artificial intelligence. Net investment income increased by 1% to $27.1 million, primarily due to higher book yields on fixed maturity securities.
The Board of Directors declared a regular quarterly dividend of $0.32 per share, payable on August 27, 2025, to stockholders of record as of August 13, 2025. During the second quarter, the company repurchased 482,000 shares of its common stock at an average price of $48.08 per share, with a remaining share repurchase authorization of $99.4 million.
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