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Employers Holdings
(NYSE:EIG)
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Rating:60Neutral
Price Target:
$54.00
▲(8.46% Upside)
Action:Reiterated
Date:07/31/26
The score is held back mainly by weakened TTM profitability and cooling cash-flow generation despite a strong capital position. Technicals are supportive with the stock above major moving averages, and the earnings call highlighted disciplined underwriting and shareholder returns, but notable premium declines and claims uncertainty temper the outlook. Valuation is a major risk due to the very high P/E versus current earnings power.
Positive Factors
Low leverage and strong capital base
Employers holds a conservatively leveraged balance sheet (debt-to-equity ~0.15, sizable equity vs ~$3.38B assets). This durable capital buffer supports multi-year loss volatility, funds underwriting discipline, product rollout and buybacks/dividends without forcing dilutive capital raises.
Negative Factors
Significant premium volume decline
A persistent 20% drop in gross written premium and double-digit NPE decline shrink scale and reduce premium dilution benefits. Lower volume raises fixed-cost leverage, elevates underwriting expense ratios, limits risk diversification, and constrains organic growth and margin recovery over ensuing quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage and strong capital base
Employers holds a conservatively leveraged balance sheet (debt-to-equity ~0.15, sizable equity vs ~$3.38B assets). This durable capital buffer supports multi-year loss volatility, funds underwriting discipline, product rollout and buybacks/dividends without forcing dilutive capital raises.
Read all positive factors
Employers Holdings (EIG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$907.90M
Dividend Yield2.57%
Average Volume (3M)139.56K
Price to Earnings (P/E)73.3
Beta (1Y)0.40
Revenue Growth-5.83%
EPS Growth-82.97%
CountryUS
Employees623
SectorFinancial
Sector Strength70
IndustryInsurance - Specialty
Share Statistics
EPS (TTM)0.69
Shares Outstanding17,960,506
10 Day Avg. Volume159,467
30 Day Avg. Volume139,559
Financial Highlights & Ratios
PEG Ratio-1.06
Price to Book (P/B)1.08
Price to Sales (P/S)1.21
P/FCF Ratio24.38
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$59.00Price Target Upside18.50% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)2.24
Revenue Forecast (FY)$803.74M
Employers Holdings Business Overview & Revenue Model
Company Description
Employers Holdings, Inc., along with its subsidiary companies, primarily operates within the commercial property and casualty insurance industry across the United States. The firm delivers workers' compensation policies, specifically targeting sma...
How the Company Makes Money
Employers Holdings primarily makes money through (1) underwriting income from workers’ compensation insurance and (2) investment income on its invested assets (“float”). Underwriting-related revenue is generated from premiums charged on workers’ c...
Employers Holdings Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Neutral
The call presents a mixed picture: the company demonstrated meaningful per-share and book value gains, disciplined capital return via buybacks and dividends, early success with a new excess workers' compensation product, and strong cost and technology execution (including high AI adoption). Offsetting these positives are significant declines in gross premiums written (-20%), net premium earned (-12%), and policies in force (-5%), as well as continued competitive pressure in the middle market and cautious reserving posture driven by cumulative trauma uncertainty. Operating earnings growth was modest and some improvement was aided by a non-recurring premium restitution. Overall, the company appears strategically focused on profitable growth and capital discipline, but near-term top-line pressures and claim uncertainty temper the outlook.Positive Updates
Strong EPS Growth
Diluted earnings per share grew 29% year over year; adjusted earnings per share grew 46% year over year despite net income being essentially flat, reflecting the accretive impact of share repurchases.
Negative Updates
Decline in Written Premiums
Gross premiums written fell to $163 million from $203 million, a 20% decrease year over year, driven by declines in new and renewal business.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong EPS Growth
Diluted earnings per share grew 29% year over year; adjusted earnings per share grew 46% year over year despite net income being essentially flat, reflecting the accretive impact of share repurchases.
Read all positive updates
Company Guidance
The company reiterated guidance to prioritize profitable, sustainable growth and capital returns, highlighting a Q3 dividend of $0.34 per share (following a 6.5% increase last quarter) and continued share repurchases (652k shares bought in Q2 for $28M at $42.43 avg; $113M remaining of a $125M program through end‑2027), while reporting strong per‑share gains—diluted EPS +29% YoY and adjusted EPS +46% YoY despite net income being essentially flat—and operational metrics that reflect disciplined underwriting: net premium earned -12% YoY, policies in force -5%, gross premiums written $163M (-20% YoY), underwriting expenses $40M (-7%), commission expense $22M (vs $26M), adjusted net income $13M (vs $12M), net investment income $27M (+1%), weighted average book yield 4.9% (up 40 bps), fixed‑maturities modified duration 4.5 (A+ average), book value per share including deferred gain $52.58 (+9% YoY), accident‑year loss & LAE excluding LPT on voluntary business 72% (consistent with FY2025), no reserve change for AY2025 and prior, California advisory pure premium increase 6.6% effective Sept 1, renewal rate ~+5% YoY, payrolls +0.5%, and new product traction with excess workers’ comp (July >200 submissions, 20 policies bound for ~$4M premium) plus 94% AI staff adoption driving efficiency.Employers Holdings Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
72
Positive
Cash Flow
56
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 837.30M | 858.20M | 880.70M | 850.90M | 713.50M | 703.10M |
| Gross Profit | 313.80M | 276.40M | 323.30M | 345.20M | 226.60M | 311.80M |
| EBITDA | 21.90M | 16.10M | 150.40M | 159.00M | 64.60M | 154.90M |
| Net Income | 7.60M | 10.80M | 118.60M | 118.10M | 48.40M | 119.30M |
Balance Sheet | ||||||
| Total Assets | 3.38B | 3.44B | 3.54B | 3.55B | 3.72B | 3.78B |
| Cash, Cash Equivalents and Short-Term Investments | 2.45B | 1.20B | 2.17B | 913.20M | 2.39B | 2.43B |
| Total Debt | 125.00M | 38.90M | 4.20M | 5.90M | 196.10M | 16.60M |
| Total Liabilities | 2.52B | 2.48B | 2.47B | 2.54B | 2.77B | 2.57B |
| Stockholders Equity | 858.80M | 955.70M | 1.07B | 1.01B | 944.20M | 1.21B |
Cash Flow | ||||||
| Free Cash Flow | 21.20M | 42.50M | 71.50M | 47.20M | 97.20M | 7.20M |
| Operating Cash Flow | 22.00M | 44.70M | 76.40M | 49.40M | 99.80M | 10.80M |
| Investing Cash Flow | 174.50M | 225.90M | -159.70M | 377.30M | -146.10M | -1.70M |
| Financing Cash Flow | -152.30M | -179.10M | -74.80M | -289.50M | 60.40M | -94.40M |
Employers Holdings Technical Analysis
Positive
49.79
Price Trends
47.95
Positive
44.50
Positive
42.75
Positive
Market Momentum
0.68
Positive
53.75
Neutral
42.13
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EIG, the sentiment is Positive. The current price of 49.79 is below the 20-day moving average (MA) of 50.32, above the 50-day MA of 47.95, and above the 200-day MA of 42.75, indicating a bullish trend. The MACD of 0.68 indicates Positive momentum. The RSI at 53.75 is Neutral, neither overbought nor oversold. The STOCH value of 42.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EIG.
Employers Holdings Risk Analysis
Employers Holdings disclosed 22 risk factors in its most recent earnings report. Employers Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Employers Holdings Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $829.95M | 6.57 | 27.38% | ― | 19.34% | ― | |
74 Outperform | $546.18M | 14.34 | 14.03% | 3.71% | 7.19% | 27.90% | |
73 Outperform | $538.29M | 11.62 | 18.37% | 8.55% | 9.54% | -5.60% | |
68 Neutral | $661.75M | 1.70 | 68.25% | 1.35% | -73.08% | -226.17% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
60 Neutral | $907.90M | 73.26 | 0.82% | 2.61% | -5.83% | -82.97% | |
57 Neutral | $207.60M | 9.76 | 4.48% | 0.85% | -1.78% | ― |
* Financial Sector Average
EIG
Employers Holdings
50.55
12.10
31.48%
AMSF
Amerisafe
29.04
-12.60
-30.25%
ITIC
Investors Title Company
289.29
82.02
39.57%
TIPT
Tiptree Financial
17.77
-2.18
-10.95%
JRVR
James River Group
4.49
-0.99
-18.05%
HIPO
Hippo Holdings
31.45
4.81
18.06%
Employers Holdings Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Employers Holdings Posts Strong Q2 EPS, Declares Dividend
Positive
Jul 29, 2026
On July 29, 2026, Employers Holdings reported second-quarter 2026 results showing diluted earnings per share up 29% year over year to $1.59, despite net income slipping slightly to $29.1 million as gross premiums written and net premiums earned fe...
Business Operations and StrategyExecutive/Board Changes
Employers Holdings Adds Industry Veteran to Board of Directors
Positive
Jul 1, 2026
Employers Holdings, Inc. said that on June 25, 2026, industry veteran Stephanie C. Bush was elected to its board of directors, with her term beginning July 1, 2026, increasing the board to nine members. Bush, a former senior executive at The Hartf...
Executive/Board ChangesShareholder Meetings
Employers Holdings Shareholders Reelect Board, Back Executive Pay
Positive
May 29, 2026
At its 2026 annual meeting of stockholders held on May 28, 2026, in Reno, Nevada, Employers Holdings’ shareholders elected all nominated directors to serve until the 2027 annual meeting, including CEO Katherine H. Antonello and the full slat...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.