Employers Holdings, Inc. (NYSE: EIG) reported results for the fourth quarter and full year 2025 on February 19, 2026. For the fourth quarter ended December 31, 2025, revenue reached $170.5 million, down 21.3% year over year from $216.6 million. The company posted a net loss of $23.4 million, or $1.06 per diluted share. For the full year 2025, total income reached $10.8 million, or $0.46 per diluted share, compared to $118.6 million, or $4.71 per diluted share, in 2024.
Company Description
Employers Holdings, Inc. is a holding company whose subsidiaries specialize in workers’ compensation insurance, workers’ compensation, and related services. The company focuses on small and select businesses in low to moderate risk industries across the United States, particularly in California and other key markets, bringing comprehensive coverage, claims management, and risk mitigation solutions to employers seeking stable and cost-effective protection.
Stock reaction
EIG shares fell sharply following the earnings release. The stock closed at $42.45 on February 19, 2026, before the widespread trading impact from the announcement. On February 20, 2026, shares fell more than 10% to about $37.90 amid a reported net loss, a decline in full-year profit, a loss in revenue, and a decline in the combined ratio, nearing the low end of the recent trading range.
Results for the Fourth Quarter 2025
Revenue fell 21.3% year over year to $170.5 million, reflecting lower written premiums and other factors. Total written premiums totaled $156.8 million, down 11% year-over-year due to lower new business writing and research premiums, offset by higher renewal premiums. Total premiums earned stood at $188.5 million, year over year. The combined GAAP ratio was 106%. Adjusted income was $14.5 million, or $0.66 per diluted share. Net investment income increased 17.6% to $31.4 million. The results included $49.7 million in realized and unrealized investment losses from portfolio rebalancing.
2025 Full Year Results
Gross premiums increased by 2% year over year. GAAP consolidated margin decreased to 110.9%, driven by higher loss activity that included a higher frequency of California cumulative trauma claims. Net income fell sharply to $10.8 million from $118.6 million in 2024, impacted by write-down pressure and the impact of investments. Adjusted revenue totaled $21.8 million. Book value per share, including deferred earnings, rose 11% to $51.31. The company returned $215 million to shareholders through share repurchases and dividends during the year.
Highlights of the Earnings Call
President and CEO Katherine Holt Antonello cited California’s specific increase in personal injury claim frequency as the main reason for the higher losses, while noting that it remains isolated and does not reflect broader trends. He highlighted progress in the growth of the workers’ compensation product, which led to a 10% premium increase, and improvements in AI-driven efficiency. Executive Vice President and Chief Financial Officer Michael Aldo Pedraja discussed the completion of a $125 million capital restructuring program, aggressive share repurchases (2.4 million shares in Q4 at a valuation of $40.94 for an estimated $97 million), record investment income from rebalancing to high yields (weighted book yield of 4.9%), and improved leverage of expenses. Emerging themes include strategic underwriting, capital return commitments, strategic portfolio adjustments without equity impact, and confidence in long-term positioning despite near-term headwinds.
Outlook
The company did not provide specific price guidance for 2026 in the release or on the call. Management expressed a focus on premium growth in selected segments, continued cost management, and improved investment portfolio development amid ongoing claims monitoring in California.
Geopolitical and Tariff Exposure
Employers Holdings maintains minimal exposure to country risks or tax implications. Operations are conducted primarily within the US workers’ compensation market. No material effects from international trade disputes, tariffs, or supply disruptions are mentioned in the results, call comments, or related disclosures.
SWOT analysis
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Power
- Special focus on workers compensation in low to medium risk sectors; a strong capital position that allows aggressive shareholder returns; improved investment yield after rebalancing; “A” (Excellent) AM Reaffirmation of excellent rating; AI and efficient applications.
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Weakness
- A significant decline in profitability driven by write-down losses; the highest combined rate from California cumulative trauma claims; a decrease in revenue in the most recent quarter; reliance on key state markets such as California.
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Opportunities
- Growth potential of the excess workers’ compensation product line; AI-driven cost savings and underwriting improvements; market share gains in underserved small business segments; benefits from high investment income in a high quality property.
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Threats
- Continuing or serious claims in California; competitive pressures on workers’ compensation and labor costs; macroeconomic factors affecting employer pay and business structure; regulatory changes affecting lines of insurance or reserves.
