Employers (EIG) investor relations material

Executive summary

• Q3 net income was $11.6 million, or $0.64 per diluted share, versus a net loss of $8.3 million, or $0.36 per share; adjusted net income was $12.8 million versus an adjusted net loss of $25.5 million.

• Results improved primarily because prior-year reserve strengthening did not recur; underwriting profitability remained a priority amid deliberate pricing and underwriting actions.

• Q3 total revenue was $189.3 million versus $239.3 million a year earlier.

Financial highlights

• Gross premiums written fell 17.8% to $151.1 million; net premiums earned fell 16.6% to $160.2 million, reflecting lower premium writings and underwriting actions.

• Losses and LAE fell 38.9% to $114.0 million, primarily reflecting the absence of $38.0 million in prior-year reserve strengthening and lower premium levels.

• Q3 net investment income rose 23.8% to $32.3 million; excluding $5.6 million in private equity distributions, it was $26.7 million, up 6% YoY.

• Net realized and unrealized investment losses were $3.2 million versus gains of $21.2 million a year earlier; 9M investment gains were $13.8 million.

• 9M net income was $50.8 million; operating cash flow was $(19.5) million versus $44.0 million, and cash, cash equivalents and restricted cash decreased $84.1 million to $75.9 million.

Outlook and guidance

• Surgical re-underwriting is expected to roll through the full book in Q4 2026, after which premiums are expected to stabilize to some extent.

• Excess workers’ compensation, launched in June, had 31 accounts and $6.5 million in premium; large deductible coverage is targeted for launch in 2027.

• Priorities include expense efficiency, technology investment, and broader geographic and product diversification to support profitable growth.

• Liquidity was considered adequate for financing needs over the next 12 months and longer term, with subsidiary needs expected to be funded by operating cash, investment income and maturities.