Employers Holdings Inc (EIG)
NYSE:EIG
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Employers Holdings
(NYSE:EIG)
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Rating:59Neutral
Price Target:
$43.00
▲(1.06% Upside)
Action:ReiteratedDate:02/27/26
The score is held back mainly by the sharp 2025 profitability/underwriting deterioration and weak technical momentum. These are partially offset by a strong balance sheet, improved cash generation, and earnings-call positives around expense reduction, capital returns, and book value growth, though valuation remains challenging due to the very high P/E.
Positive Factors
Conservative Balance Sheet & Rating
Very low leverage and sizable equity (~$956M in 2025) provide durable capital strength. Coupled with an A.M. Best reaffirmation, this allows Employers to absorb underwriting shocks, maintain reserves, continue dividends and buybacks, and fund strategic initiatives over the next several quarters.
Negative Factors
Underwriting Profitability Deterioration
A sharp collapse in 2025 underwriting profitability (net margin ~1.3%, ROE near 1%) indicates the core insurance business under strain. Reduced earned underwriting income increases reliance on investment returns and capital actions, and suggests underwriting standards or reserve adequacy must improve before underwriting becomes a reliable earnings driver.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet & Rating
Very low leverage and sizable equity (~$956M in 2025) provide durable capital strength. Coupled with an A.M. Best reaffirmation, this allows Employers to absorb underwriting shocks, maintain reserves, continue dividends and buybacks, and fund strategic initiatives over the next several quarters.
Read all positive factors
Employers Holdings (EIG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$828.96M
Dividend Yield2.94%
Average Volume (3M)139.56K
Price to Earnings (P/E)96.0
Beta (1Y)0.42
Revenue Growth1.69%
EPS Growth-52.43%
CountryUS
Employees715
SectorFinancial
Sector Strength70
IndustryInsurance - Specialty
Share Statistics
EPS (TTM)0.66
Shares Outstanding19,481,997
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 Cap1.05
Enterprise Value/Revenue1.02
Enterprise Value/Gross Profit3.16
Enterprise Value/Ebitda38.17
Forecast
1Y Price Target
$49.00Price Target Upside15.16% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)2.02
Revenue Forecast (FY)$840.25M
Employers Holdings Business Overview & Revenue Model
Company Description
Employers Holdings, Inc., through its subsidiaries, operates in the commercial property and casualty insurance industry primarily in the United States. It offers workers' compensation insurance to small businesses in low to medium hazard industrie...
How the Company Makes Money
Employers Holdings generates revenue primarily through the underwriting of workers' compensation insurance policies. The company collects premiums from policyholders in exchange for providing insurance coverage, which constitutes its main revenue ...
Employers Holdings Earnings Call Summary
Earnings Call Date:Feb 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 29, 2026
Earnings Call Sentiment Neutral
The call balanced clear strategic and capital-strength positives — including significant share repurchases and dividends, an 11% increase in book value per share, expense ratio improvement (down 180 bps), stronger investment yields, a new AI-enabled excess workers’ compensation product with promising early results, and an A rating — against meaningful near-term underwriting headwinds: an 11% decline in gross written premium, an 18.7% increase in losses and LAE, an approximately 49.5% drop in adjusted net income, and a $40M after-tax realized investment loss that depressed quarterly results. Management emphasized disciplined underwriting, targeted California actions, and AI-driven efficiency to restore profitability, but some top-line and underwriting pressure remains and could depress 2026 written premium.Positive Updates
Capital Return and Share Repurchases
Returned $215,000,000 to stockholders in 2025 through share repurchases and dividends; repurchased ~2.4M shares in Q4 for $97,000,000 at an average price of $40.94 (≈20% discount to book value) and repurchased an additional 898,594 shares Jan–Feb at $44.28; completed $125,000,000 recapitalization in January; remaining repurchase authorization $53,100,000; Board declared Q1 2026 dividend of $0.32 per share.
Negative Updates
Decline in Gross Premiums Written
Gross premiums written fell 11.0% year-over-year to $156.8M from $176.3M, driven by lower new business writings and reduced final audit premiums (partially offset by higher renewal business premium). Management expects written premium to decline in 2026 due to California pricing and underwriting actions.
Read all updates
Q4-2025 Updates
Positive
Negative
Capital Return and Share Repurchases
Returned $215,000,000 to stockholders in 2025 through share repurchases and dividends; repurchased ~2.4M shares in Q4 for $97,000,000 at an average price of $40.94 (≈20% discount to book value) and repurchased an additional 898,594 shares Jan–Feb at $44.28; completed $125,000,000 recapitalization in January; remaining repurchase authorization $53,100,000; Board declared Q1 2026 dividend of $0.32 per share.
Read all positive updates
Company Guidance
The company guided that written premium will likely decline in 2026 as California-specific cumulative trauma pricing and tighter underwriting take hold, even as renewal payrolls were basically flat and renewal rates rose a little over 5% in Q4; management expects the expense ratio to continue improving from 21.7% (down 180 bps in 2025) driven by AI initiatives. Capital actions will remain opportunistic: the firm completed $215.0M of share repurchases and regular dividends in 2025, repurchased ~2.4M shares in Q4 for $97.0M at an average $40.94 and a further 898,594 shares at $44.28 through Feb 18, leaving $53.1M of buyback authorization and an expectation of a return to more normal repurchase levels in 2026; the Board also declared a Q1 2026 dividend of $0.32 per share (record Mar 4, payable Mar 18). Management reiterated solid reserving (book value per share up 11% to $51.31), and said the new excess workers’ comp product targets a mid‑80s combined ratio and could represent roughly 10% of written premium over 4–7 years. Finally, the investment rebalancing raised weighted‑average book yield to 4.9% (from 4.5%), increased portfolio yield by ~40 bps, reduced equity allocation (equities ~16% vs ~10% target), extracted an estimated NPV gain of $16M and incurred an after‑tax realized fixed‑income loss of $40M.Employers Holdings Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
78
Positive
Cash Flow
72
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 858.20M | 880.70M | 850.90M | 713.50M | 703.10M |
| Gross Profit | 276.40M | 323.30M | 345.20M | 226.60M | 311.80M |
| EBITDA | 12.50M | 150.40M | 159.00M | 64.60M | 154.90M |
| Net Income | 10.80M | 118.60M | 118.10M | 48.40M | 119.30M |
Balance Sheet | |||||
| Total Assets | 3.44B | 3.54B | 3.55B | 3.72B | 3.78B |
| Cash, Cash Equivalents and Short-Term Investments | 1.20B | 1.02B | 913.20M | 2.39B | 2.43B |
| Total Debt | 38.90M | 4.20M | 5.90M | 196.10M | 16.60M |
| Total Liabilities | 2.48B | 2.47B | 2.54B | 2.77B | 2.57B |
| Stockholders Equity | 955.70M | 1.07B | 1.01B | 944.20M | 1.21B |
Cash Flow | |||||
| Free Cash Flow | 42.50M | 71.50M | 47.20M | 97.20M | 7.20M |
| Operating Cash Flow | 44.70M | 76.40M | 49.40M | 99.80M | 10.80M |
| Investing Cash Flow | 225.90M | -159.70M | 377.30M | -146.10M | -1.70M |
| Financing Cash Flow | -179.10M | -74.80M | -289.50M | 60.40M | -94.40M |
Employers Holdings Technical Analysis
Positive
42.55
Price Trends
41.50
Positive
41.49
Positive
41.82
Positive
Market Momentum
0.21
Negative
61.82
Neutral
90.05
Negative
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 42.55 is above the 20-day moving average (MA) of 40.26, above the 50-day MA of 41.50, and above the 200-day MA of 41.82, indicating a bullish trend. The MACD of 0.21 indicates Negative momentum. The RSI at 61.82 is Neutral, neither overbought nor oversold. The STOCH value of 90.05 is Negative, 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | $438.31M | 13.39 | 13.19% | 4.20% | 13.47% | 26.15% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $690.05M | 13.17 | 15.26% | ― | 34.48% | ― | |
63 Neutral | $633.58M | 15.46 | 17.91% | 6.64% | -1.73% | -18.36% | |
61 Neutral | $290.98M | 6.16 | 7.44% | 0.63% | -19.08% | 56.21% | |
59 Neutral | $828.96M | 95.96 | 1.04% | 2.94% | 1.69% | -52.43% | |
49 Neutral | $639.36M | 19.65 | 4.37% | 1.31% | 4.44% | 22.40% |
* Financial Sector Average
EIG
Employers Holdings
42.55
-3.68
-7.96%
AMSF
Amerisafe
33.71
-12.46
-26.99%
ITIC
Investors Title Company
232.21
5.41
2.39%
TIPT
Tiptree Financial
16.88
-4.99
-22.81%
JRVR
James River Group
6.33
2.26
55.45%
HIPO
Hippo Holdings
26.57
2.80
11.78%
Employers Holdings Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Employers Holdings Announces Weak 2025 Results, Declares Dividend
Negative
Feb 19, 2026
Employers Holdings reported that for full-year 2025 it generated net income of $10.8 million, down sharply from $118.6 million in 2024, as its GAAP combined ratio deteriorated to 110.9% amid higher California cumulative trauma claim frequency, alt...
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.