Employers (EIG) investor relations material

Executive summary

• Net income for Q1 2026 was $10.2 million, down from $12.8 million in Q1 2025, as underwriting discipline led to lower premiums and policy count.

• Gross premiums written declined 14.8% to $180.8 million, reflecting deliberate underwriting and pricing actions.

• Book value per share including deferred gain rose 8.9% year-over-year to $51.26, with $83 million returned to shareholders via dividends and buybacks.

• Launched new Excess Workers' Compensation product and expanded digital distribution, including ChatGPT quoting.

• Quarterly dividend increased by 6.25% to $0.34 per share; new $125 million share repurchase program authorized through December 2027.

Financial highlights

• Net premiums earned were $180.9 million, down 1.1% year-over-year; gross premiums written were $180.8 million, down 14.8%.

• Loss and LAE ratio increased to 71.4% from 66.0%; commission expense ratio rose to 13.1% from 12.6%.

• Underwriting expense ratio improved to 22.6% from 23.4%.

• GAAP combined ratio was 107.1% (107.7% excluding LPT), up from 102.0% (102.8% excluding LPT).

• Net investment income fell 11.8% to $28.3 million, mainly due to lower private equity returns.

Outlook and guidance

• Management remains focused on underwriting discipline, process efficiency, and profitable growth, with new opportunities in expanded underwriting segments and excess workers' compensation.

• Ongoing investment in AI and digital platforms, including ChatGPT quoting, expected to enhance underwriting and customer experience.

• Anticipate continued premium reduction trends for 2026, with transition to growth visible toward year-end.