Employers Holdings Inc (EIG)
NYSE:EIG
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Employers Holdings
(NYSE:EIG)
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Rating:63Neutral
Price Target:
$45.00
▲(5.34% Upside)
Action:Reiterated
Date:05/02/26
The score is primarily constrained by the sharp deterioration in profitability/ROE and earnings volatility despite revenue growth, with supportive offsets from a conservatively leveraged balance sheet and positive (but declining) free cash flow. The earnings call adds a modest positive tilt due to disciplined underwriting, reserve stability, and strong shareholder returns, while valuation is less attractive at a ~24 P/E despite a ~3% dividend and technicals remain broadly neutral.
Positive Factors
Balance-sheet strength
Very low debt-to-equity (~0.14) provides durable financial flexibility for an insurer: it supports underwriting discipline, allows continued share repurchases/dividends and a low-cost recapitalization, and cushions capital adequacy through underwriting cycles and claim volatility over the next 2–6 months.
Negative Factors
Profitability compression
Sharp deterioration in profitability (ROE and net margin ~1% TTM) signals reduced capital efficiency and earnings power. Low returns make it harder to organically grow book value through underwriting, increase reliance on investment income or capital actions, and raise sensitivity to loss-cost or yield shocks.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance-sheet strength
Very low debt-to-equity (~0.14) provides durable financial flexibility for an insurer: it supports underwriting discipline, allows continued share repurchases/dividends and a low-cost recapitalization, and cushions capital adequacy through underwriting cycles and claim volatility over the next 2–6 months.
Read all positive factors
Employers Holdings (EIG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$796.49M
Dividend Yield2.94%
Average Volume (3M)139.56K
Price to Earnings (P/E)24.2
Beta (1Y)0.45
Revenue Growth0.41%
EPS Growth-91.81%
CountryUS
Employees715
SectorFinancial
Sector Strength70
IndustryInsurance - Specialty
Share Statistics
EPS (TTM)0.33
Shares Outstanding18,242,922
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 Cap1.18
Enterprise Value/Revenue1.09
Enterprise Value/Gross Profit3.18
Enterprise Value/Ebitda57.78
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)2.24
Revenue Forecast (FY)$827.49M
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 earnings mainly through: (1) underwriting income from workers’ compensation insurance—collecting premiums from policyholders and paying claims and claim-adjustment expenses, with profitability driven by pricing, loss e...
Employers Holdings Earnings Call Summary
Earnings Call Date:Apr 29, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Neutral
The call balanced material operating headwinds—most notably a 15% decline in gross premiums written and a roughly 52% drop in adjusted net income—with clear capital strength and strategic progress. Management emphasized disciplined underwriting (72% accident-year loss and LAE ratio, no reserve strengthening), active capital returns (Q1 repurchases and dividend increase), investment yield gains (4.9% book yield), completion of a low-cost recapitalization, AI-driven innovation and new product launches. While near-term top-line growth is expected to remain pressured by intentional nonrenewals and competitive dislocation in select markets, the company demonstrated solid capitalization, improved expense ratios, and shareholder-friendly capital deployment, resulting in a mixed but balanced outlook.Positive Updates
Book Value Growth and Capital Returns
Book value per share (including deferred gain) increased 8.9% to $51.26; the company returned $83 million to shareholders in Q1 (share repurchases + regular dividends) following a record $215 million returned in 2025.
Negative Updates
Decline in Gross Premiums Written
Gross premiums written fell 15% to $181 million from $212 million year-over-year, driven primarily by a reduction in new business writings and intentional nonrenewals in targeted classes and jurisdictions.
Read all updates
Q1-2026 Updates
Positive
Negative
Book Value Growth and Capital Returns
Book value per share (including deferred gain) increased 8.9% to $51.26; the company returned $83 million to shareholders in Q1 (share repurchases + regular dividends) following a record $215 million returned in 2025.
Read all positive updates
Company Guidance
The company guided that pricing and underwriting actions will pressure growth throughout 2026, expecting a continued “teens‑type” reduction in top‑line growth after Q1 gross premiums written of $181M (down 15% YoY) and earned premium essentially flat (down 1%), with payrolls up ~0.5% and average renewal rates up ~6% (with double‑digit renewal increases in California); current accident‑year loss & LAE ratio was 72% (consistent with 2025) and actuarial review required no reserve strengthening, though full reserve re‑selection will occur at Q2/Q4 if warranted; operational metrics included underwriting expense ratio improving to 22.6% (vs. 23.4%), underwriting expenses $41M (‑5%), commission expense $24M (+3%), losses & LAE $129M, adjusted net income $10.3M (vs. $21.3M), weighted average book yield 4.9% (vs. 4.5%), fixed‑maturity duration 4.4 and A+ average credit quality; capital actions included returning $83M in Q1, repurchasing >1.8M shares for $76.9M at an average $42.42 (17% below BVPS incl. deferred gain), additional 353,547 shares at $42.21, completing $125M debt ( $105M FHLB + $20M credit facility) at 4.1% pretax, Q2 dividend $0.34/share (+6.25%), a new $125M repurchase authorization through 12/31/2027, book value per share incl. deferred gain $51.26 (up 8.9%), total capitalization ~ $1B, and an A.M. Best A rating.Employers Holdings Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
74
Positive
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 863.40M | 858.20M | 880.70M | 850.90M | 713.50M | 703.10M |
| Gross Profit | 296.00M | 276.40M | 323.30M | 345.20M | 226.60M | 311.80M |
| EBITDA | 16.30M | 12.50M | 150.40M | 159.00M | 64.60M | 154.90M |
| Net Income | 8.20M | 10.80M | 118.60M | 118.10M | 48.40M | 119.30M |
Balance Sheet | ||||||
| Total Assets | 3.44B | 3.44B | 3.54B | 3.55B | 3.72B | 3.78B |
| Cash, Cash Equivalents and Short-Term Investments | 1.15B | 1.20B | 2.17B | 913.20M | 2.39B | 2.43B |
| Total Debt | 128.80M | 38.90M | 4.20M | 5.90M | 196.10M | 16.60M |
| Total Liabilities | 2.57B | 2.48B | 2.47B | 2.54B | 2.77B | 2.57B |
| Stockholders Equity | 866.50M | 955.70M | 1.07B | 1.01B | 944.20M | 1.21B |
Cash Flow | ||||||
| Free Cash Flow | 29.70M | 42.50M | 71.50M | 47.20M | 97.20M | 7.20M |
| Operating Cash Flow | 32.30M | 44.70M | 76.40M | 49.40M | 99.80M | 10.80M |
| Investing Cash Flow | 167.50M | 225.90M | -159.70M | 377.30M | -146.10M | -1.70M |
| Financing Cash Flow | -147.10M | -179.10M | -74.80M | -289.50M | 60.40M | -94.40M |
Employers Holdings Technical Analysis
Positive
42.72
Price Trends
41.13
Positive
41.78
Positive
41.07
Positive
Market Momentum
0.40
Negative
66.05
Neutral
91.91
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 42.72 is above the 20-day moving average (MA) of 41.92, above the 50-day MA of 41.13, and above the 200-day MA of 41.07, indicating a bullish trend. The MACD of 0.40 indicates Negative momentum. The RSI at 66.05 is Neutral, neither overbought nor oversold. The STOCH value of 91.91 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $460.18M | 16.91 | 14.03% | 4.20% | 7.19% | 27.90% | |
69 Neutral | $676.67M | 23.71 | 27.46% | ― | 20.77% | ― | |
68 Neutral | $586.74M | 19.19 | 17.85% | 6.64% | 7.83% | -1.76% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $634.18M | 11.22 | 6.01% | 1.31% | -47.59% | -58.70% | |
63 Neutral | $796.49M | 24.21 | 0.83% | 2.94% | 0.41% | -91.81% | |
51 Neutral | $189.57M | -8.14 | 4.48% | 0.63% | -1.78% | ― |
* Financial Sector Average
EIG
Employers Holdings
43.66
-3.48
-7.38%
AMSF
Amerisafe
31.37
-12.43
-28.38%
ITIC
Investors Title Company
243.74
19.51
8.70%
TIPT
Tiptree Financial
16.88
-4.57
-21.32%
JRVR
James River Group
4.10
-1.14
-21.68%
HIPO
Hippo Holdings
25.99
3.87
17.50%
Employers Holdings Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Employers Holdings Boosts Dividend, Launches New Buyback Program
Positive
Apr 29, 2026
Employers Holdings reported first quarter 2026 results on April 29, 2026, showing net income of $10.2 million, down from $12.8 million a year earlier, as gross premiums written fell 14.8% and the GAAP combined ratio deteriorated to 107.1% amid hig...
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.