Employers (EIG) Q2 2026 earnings summary

Executive summary

• Diluted EPS rose 29% year-over-year to $1.59, with adjusted EPS up 46%, driven by accretive share repurchases and recapitalization, despite flat net income and a 19.6% decline in gross premiums written.

• Net premium earned declined 12% year-over-year to $174.1 million, and policies in force fell 5% to 127,601, reflecting a focus on profitability and core small business segments.

• Launched a new excess workers compensation product in June, generating $4 million in premium and strong initial uptake, especially among municipalities and schools.

• Achieved significant technology advancements, including a major claims system upgrade and 94% staff adoption of AI tools, with recognition as a top employer and innovator.

• Underwriting expenses and commission expenses declined year-over-year due to innovation, cost management, and lower agency incentives.

Financial highlights

• Gross premiums written were $163.4 million for Q2, down 19.6% year-over-year; net premiums earned fell 12% to $174.1 million.

• Net investment income increased 1.1% to $27.4 million, with a 40 basis point increase in book yields to 4.9%.

• Book value per share, including deferred gain, grew 9% year-over-year to $52.58.

• Combined ratio was 105.8% for Q2, with loss and LAE ratio at 70.2% and commission expense ratio at 12.8%.

• Adjusted net income was $13 million, up from $12 million last year.

Outlook and guidance

• Profitable growth, product diversification, and underwriting discipline remain key strategic priorities, with ongoing investment in technology and AI.

• California's 6.6% advisory pure premium rate increase effective September 1st offers a significant opportunity.

• Liquidity and capital resources are strong, with no anticipated need to suspend dividends or seek additional capital.