$EIG

Employers Holdings, Inc.

CIK:0001379041|SEC Filings

Consolidated Statements of Income - USD ($) $ in Millions	3 Months Ended		6 Months Ended
Consolidated Statements of Income - USD ($) $ in Millions	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Revenues
Net premiums earned	$ 174.1	$ 198.3	$ 355.0	$ 381.3
Net investment income	27.4	27.1	55.7	59.2
Net realized and unrealized gains on investments	18.7	20.9	17.0	8.1
Other income			0.1	0.3
Total revenues	220.2	246.3	427.8	448.9
Expenses
Losses and loss adjustment expenses	122.3	140.1	251.5	260.8
Commission expense	22.2	26.1	45.9	49.1
Underwriting expenses	39.7	43.1	80.6	86.0
Interest and financing expenses	1.3		2.4	0.1
Total expenses	185.5	209.3	380.4	396.0
Net income before income taxes	34.7	37.0	47.4	52.9
Income tax expense	5.6	7.3	8.2	10.4
Net income	29.1	29.7	39.2	42.5
Comprehensive income
Unrealized AFS investment (losses) gains arising during the period, net of tax benefit (expense) of $1.0 and $(2.0) for the three months ended June 30, 2026 and 2025, respectively, and $5.5 and $(7.7) and for the six months ended June 30, 2026 and 2025, respectively	(3.6)	7.4	(20.3)	28.5
Reclassification adjustment for realized AFS investment losses in net income, net of tax benefit of $(0.1) for the three months ended June 30, 2026, and $(0.2) for each of the six months ended June 30, 2026 and 2025, respectively	0.4	0.1	0.8	0.8
Other comprehensive (loss) income, net of tax	(3.2)	7.5	(19.5)	29.3
Total comprehensive income	$ 25.9	$ 37.2	$ 19.7	$ 71.8
Earnings per common share (Note 13):
Basic	$ 1.60	$ 1.24	$ 2.09	$ 1.76
Diluted	1.59	1.23	2.07	1.74
Cash dividends declared per common share and eligible equity plan awards	$ 0.34	$ 0.32	$ 0.66	$ 0.62
Insurance Operations
Revenues
Net premiums earned	$ 174.1	$ 198.3	$ 355.0	$ 381.3
Net investment income	27.4	27.1	55.7	59.2
Net realized and unrealized gains on investments	18.7	20.9	17.0	8.1
Other income	0.0	0.0	0.1	0.3
Total revenues	220.2	246.3	427.8	448.9
Expenses
Losses and loss adjustment expenses	122.3	140.1	251.5	260.8
Commission expense	22.2	26.1	45.9	49.1
Interest and financing expenses	1.3	0.0	2.4	0.1
Total expenses	185.5	209.3	380.4	396.0
Net income before income taxes	34.7	37.0	47.4	52.9
Income tax expense	5.6	7.3	8.2	10.4
Net income	$ 29.1	$ 29.7	$ 39.2	$ 42.5

Consolidated Statements of Cash Flows - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Operating activities
Net income	$ 39.2	$ 42.5
Depreciation	1.8	1.7
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation	2.6	2.8
Intangible Asset, Finite-Lived, Amortization Expense	4.5	5.0
Amortization of discounts and premiums on investments, net	(1.3)	(1.1)
Allowance for expected credit losses	2.1	3.1
Deferred income tax expense	1.0	1.2
Net realized and unrealized (gains) on investments	(17.0)	(8.1)
Change in operating assets and liabilities:
Premiums receivable	1.2	(23.9)
Reinsurance recoverable on paid and unpaid losses	5.0	10.6
Cloud computing arrangements	(6.8)	(1.4)
Operating lease right-of-use assets	0.3	0.7
Current federal income taxes	5.7	(2.7)
Unpaid losses and loss adjustment expenses	(30.6)	(21.4)
Unearned premiums	(6.8)	27.4
Accounts payable, accrued expenses and other liabilities	0.1	(5.5)
Deferred reinsurance gain—LPT Agreement	(2.7)	(3.3)
Operating lease liabilities	(0.3)	(0.8)
Non-cancellable obligations	(1.5)	(3.9)
Other	(4.6)	(8.3)
Net cash (used in) provided by operating activities	(8.1)	14.6
Investing activities
Purchases of fixed maturity securities	(268.3)	(108.9)
Payments to Acquire Equity Securities, FV-NI	(24.4)	(44.6)
Purchases of short-term investments	(27.7)	(9.0)
Purchases of other invested assets	(2.4)	(3.0)
Distributions from other invested assets	4.4	8.0
Proceeds from sale of fixed maturity securities	79.0	75.8
Proceeds from Sale of Equity Securities, FV-NI	52.1	41.0
Proceeds from maturities and redemptions of fixed maturity securities	167.7	90.7
Proceeds from sales and maturities of short-term investments	16.1	0.1
Net change in unsettled investment purchases and sales	(0.2)	(2.5)
Capital expenditures and other	(1.5)	(1.4)
Net cash (used in) provided by investing activities	(5.2)	46.2
Financing activities
Acquisition of common stock and excise tax payments	(109.5)	(43.3)
Cash transactions related to stock-based compensation	(1.1)	(1.3)
Dividends paid to stockholders	(12.6)	(15.4)
Proceeds from FHLBank Borrowings, Financing Activities	70.0	0.0
Proceeds from Lines of Credit	20.0	0.0
Payments on finance leases	0.0	0.0
Net cash (used in) financing activities	(33.2)	(60.0)
Net (decrease) increase in cash, cash equivalents and restricted cash	(46.5)	0.8
Cash, cash equivalents, restricted cash and restricted cash equivalents at the beginning of the period	160.0	68.5
Cash, cash equivalents, restricted cash and restricted cash equivalents at the end of the period	113.5	69.3
Cash and cash equivalents	113.3
Restricted cash and cash equivalents	0.2
Total cash, cash equivalents, restricted cash	$ 113.5	$ 69.3

Consolidated Balance Sheets - USD ($) $ in Millions	Jun. 30, 2026	Dec. 31, 2025
Investments:
Fixed maturity securities at fair value (amortized cost $2,054.5 at June 30, 2026 and $2,031.8 at December 31, 2025, less CECL allowance of $1.1 at June 30, 2026 and $0.4 at December 31, 2025)	$ 2,037.9	$ 2,040.7
Equity securities at fair value (cost $87.1 at June 30, 2026 and $96.5 at December 31, 2025)	171.5	184.0
Equity securities at cost	8.7	7.5
Other invested assets (cost $77.4 at June 30, 2026 and $79.4 at December 31, 2025)	96.1	96.5
Short-term investments at fair value (amortized cost $21.7 at June 30, 2026 and $10.1 at December 31, 2025)	21.7	10.1
Total investments	2,335.9	2,338.8
Cash and cash equivalents	113.3	159.8
Restricted cash and cash equivalents	0.2	0.2
Accrued investment income	16.3	15.5
Premiums receivable (less CECL allowance of $24.7 at June 30, 2026 and $22.6 at December 31, 2025)	332.1	335.4
Reinsurance recoverable for:
Paid losses	7.3	5.9
Unpaid losses (less CECL allowance of $0.8 at June 30, 2026 and $0.8 at December 31, 2025)	379.3	385.7
Deferred policy acquisition costs	56.3	57.1
Income Taxes Receivable	10.4	16.1
Deferred income tax asset, net	18.5	14.3
Property and equipment, net	6.2	6.5
Operating lease right-of-use assets	3.4	3.7
Intangible assets, net	13.6	13.6
Goodwill	36.2	36.2
Cloud computing arrangements	15.2	12.9
Other assets	36.1	34.9
Total assets	3,380.3	3,436.6
Liabilities and stockholders’ equity
Unpaid losses and loss adjustment expenses	1,775.2	1,805.8
Unearned premiums	385.1	391.9
Commissions and premium taxes payable	55.1	59.9
Accounts payable and accrued expenses	18.7	23.4
Deferred reinsurance gain—LPT Agreement	85.3	88.0
Short-Term Debt	0.0	16.0
Operating lease liability	3.6	3.9
Non-cancellable obligations	6.2	7.7
Long-Term Debt	125.0	19.0
Other liabilities	67.3	65.3
Total liabilities	2,521.5	2,480.9
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.01 par value; 150,000,000 shares authorized; 58,352,888 and 58,276,637 shares issued and 17,954,305 and 20,342,135 shares outstanding at June 30, 2026 and December 31, 2025, respectively	0.6	0.6
Preferred stock, $0.01 par value; 25,000,000 shares authorized; none issued	0.0	0.0
Additional paid-in capital	429.3	427.8
Retained earnings	1,480.5	1,453.8
Accumulated other comprehensive (loss) income, net of tax	(12.2)	7.3
Treasury stock, at cost (40,398,583 shares at June 30, 2026 and 37,934,502 shares at December 31, 2025)	(1,039.4)	(933.8)
Equity, Attributable to Parent, Total	858.8	955.7
Total liabilities and stockholders’ equity	$ 3,380.3	$ 3,436.6