Form 8-K - Current report

Share Name	Share Symbol	Market	Type
Employers Holdings Inc	NYSE:EIG	NYSE	Common Stock

	Price Change	% Change	Share Price	High Price	Low Price	Open Price	Shares Traded	Last Trade
	-0.52	-1.01%	50.89	51.53	50.61	51.22	123,639	22:50:04

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

——————

FORM 8-K

——————

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

——————

Date of report (Date of earliest event reported): October 30, 2024

EMPLOYERS HOLDINGS, INC.

(Exact Name of Registrant as Specified in its Charter)

——————


Nevada
(State or Other Jurisdiction of Incorporation)

001-33245			04-3850065
(Commission File Number)			(I.R.S. Employer Identification No.)

5340 Kietzke Lane, Suite 202
Reno,		Nevada
(Address of Principal Executive Offices)

	89511
	(Zip Code)

Registrant’s telephone number including area code: (888) 682-6671

No change since last report

(Former Name or Address, if Changed Since Last Report)

——————

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $0.01 par value per share

EIG

New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Section 2 – Financial Information

Item 2.02. Results of Operations and Financial Condition.

On October 30, 2024, Employers Holdings, Inc. (the “Company”) issued a press release and financial supplement announcing results for the quarter ended September 30, 2024. The press release and financial supplement are attached hereto as Exhibits 99.1 and 99.2, respectively, and are incorporated herein by reference, and are being furnished, not filed, under Item 2.02 to this Current Report on Form 8-K.

Section 8 – Other Information

Item 8.01. Other Events.

On October 30, 2024, the Company's Board of Directors declared a regular quarterly dividend of $0.30 per share on the Company’s common stock. The dividend is payable on November 27, 2024 to stockholders of record as of November 13, 2024.

Section 9 – Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits.

99.1 Employers Holdings, Inc. press release, dated October 30, 2024.

99.2 Employers Holdings, Inc. financial supplement, dated October 30, 2024.

104 Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


EMPLOYERS HOLDINGS, INC.
Dated:	October 30, 2024	/s/ Michael S. Paquette
		Michael S. Paquette
		Executive Vice President,
		Chief Financial Officer

Exhibit Index


Exhibit No.	Exhibit
99.1	Employers Holdings, Inc. press release, dated	October 30, 2024
99.2	Employers Holdings, Inc. financial supplement, dated	October 30, 2024

Exhibit 99.1

news release

For Immediate Release

Employers Holdings, Inc. Reports Third Quarter 2024 Results

and Declares Regular Quarterly Dividend of $0.30 per Share

Company to Host Conference Call on Thursday, October 31, 2024, at 11:00 a.m. Eastern Daylight Time

Reno, Nevada - (GLOBE NEWSWIRE) - October 30, 2024 - Employers Holdings, Inc. (the “Company”) (NYSE:EIG), a holding company with subsidiaries that are specialty providers of workers’ compensation insurance and services focused on small and mid-sized businesses engaged in low-to-medium hazard industries, today reported financial results for its third quarter ended September 30, 2024.

Financial Highlights:

(All comparisons vs. the third quarter of 2023).

•Net income per diluted share increased by 124%, from $0.54 to $1.21,

•Adjusted net income per diluted share increased 19%, from $0.68 to $0.81,

•Gross premiums written decreased 8%, from $196.2 million to $181.2 million,

•Net premiums earned increased 1%, from $184.6 million to $186.6 million,

•Underwriting and general and administrative expense ratio of 23.2%, versus 23.6%,

•GAAP combined ratio of 100.4% (101.2% excluding LPT), versus 100.3% (101.3% excluding LPT),

•Net investment income increased 3%, from $25.9 million to $26.6 million, and

•Record number of ending policies in-force of 129,879.

Management Commentary

Chief Executive Officer Katherine Antonello commented: “Higher earned premiums, strong net investment income and continued net investment gains drove year-over-year increases in revenue of 10% and 6% for the third quarter and the first nine months of 2024. We also ended the period with yet another record number of policies in-force, which were up 3% year-over-year.

During the quarter we grew our new and renewal premiums, but reductions in final audit premiums and endorsements more than offset that growth.

Our current accident year loss and LAE ratio was 63.9%, slightly above the loss and LAE ratio we maintained throughout 2023 and consistent with that of 2022. As was the case in the third quarter of 2023, we did not recognize any prior year loss reserve development on our voluntary business because a full actuarial study was not performed. We will evaluate our prior year reserves in more detail at year-end when we routinely perform a full reserve study.

Our commission expense ratio was 14.1%, versus 14.5% a year ago. The reduction in this ratio was largely attributable to a decrease in anticipated 2024 agency incentives, which are specific to individual contracts and vary with agency targets. Our underwriting and general and administrative expense ratio was 23.2%, down from 23.6% a year ago. The reduction in this ratio was primarily the result of the Cerity integration plan we executed in the fourth quarter of 2023.

Our resulting combined ratio excluding LPT was 101.2% for the third quarter, versus 101.3%, a year ago.

Our net investment income was $26.6 million, up 3% from a year ago. When considering the $1.0 million of interest expense we incurred in the third quarter of 2023 through our Federal Home Loan Bank leveraged investment strategy, which we unwound during the fourth quarter of 2023, our net investment income was actually up 7% year-over-year.

Lastly, our strong operating results, coupled with our proactive and opportunistic management of our investment portfolio and our capital position, contributed to year-over year increases of 27% and 24% in our book value per share and book value per share including the deferred gain, respectively. As a result, our balance sheet is strong, our underwriting capital is abundant and our confidence in the Company’s future operations remains high.”

Summary of Third Quarter 2024 Results

(All comparisons vs. the third quarter of 2023, unless otherwise noted).

Gross premiums written were $181.2 million, a decrease of 8%. The decrease was due to higher new and renewal business writings being more than offset by lower final audit premiums and endorsements. Net premiums earned were $186.6 million, an increase of 1%.

Losses and loss adjustment expenses were $117.7 million, an increase of 2%. The increase was primarily due to higher earned premiums and a slightly higher current accident year loss and loss adjustment expense estimate. The Company’s loss and loss adjustment expense ratio was 63.1% (63.9% excluding LPT), versus 62.2% (63.2% excluding LPT).

Commission expenses were $26.4 million, a decrease of 1%. The Company’s commission expense ratio was 14.1%, versus 14.5% a year ago.

Underwriting and general and administrative expenses were $43.2 million, a decrease of 1%. The Company’s underwriting and general and administrative expense ratio was 23.2%, versus 23.6% a year ago. The decrease primarily related to lower professional fees and information technology expenses, partially offset by higher bad debt expense.

Net investment income was $26.6 million, an increase of 2.7%. The increase was primarily due to higher yields on our fixed maturity securities.

Net realized and unrealized gains (losses) on investments reflected on the income statement were $10.9 million, versus $(7.1) million.

Interest and financing expenses were less than $0.1 million, versus $1.0 million. The decrease resulted from the unwinding of our former FHLB leveraged investment strategy.

Income tax expense was $6.4 million (17.4% effective rate), versus $3.4 million (19.5% effective rate). The effective rates during each of the periods included income tax benefits and exclusions associated with tax-advantaged investment income, LPT adjustments, deferred gain amortization and related adjustments and tax credits utilized.

The Company’s book value per share including the deferred gain of $47.99 increased 24.0% year-over-year and 7.5% during the third quarter of 2024, computed after considering dividends declared. During the third quarter this measure was favorably impacted by $52.2 million of after-tax unrealized gains arising from fixed maturity securities (which are reflected on the balance sheet) and $10.1 million of net after tax unrealized gains arising from equity securities and other investments (which are reflected on the income statement). The Company’s adjusted book value per share of $49.83 increased by 11.5% year-over-year and 2.5% during the third quarter of 2024, computed after considering dividends declared. During the third quarter this measure was favorably impacted by the net after tax unrealized gains arising from equity securities and other investments previously described.

Share Repurchases and Fourth Quarter 2024 Dividend Declaration

During the third quarter of 2024, the Company repurchased 163,221 shares of its common stock at an average price of $45.27 per share. During the period from October 1, 2024 through October 29, 2024, the Company repurchased a further 20,602 shares of its common stock at an average price of $47.45 per share. The Company currently has a remaining share repurchase authorization of $38.6 million.

On October 30, 2024, the Company’s Board of Directors declared a regular quarterly dividend of $0.30. The dividend is payable on November 27, 2024 to stockholders of record as of November 13, 2024.

Earnings Conference Call and Webcast

The Company will host a conference call on Thursday, October 31, 2024 at 11:00 a.m. Eastern Daylight Time / 8:00 a.m. Pacific Daylight Time.

To participate in the live conference call, you must first register here. Once registered you will receive dial-in numbers and a unique PIN number.

The webcast will be accessible on the Company’s website at www.employers.com through the “Investors” link.

Reconciliation of Non-GAAP Financial Measures to GAAP

The information in this press release should be read in conjunction with the Financial Supplement that is attached to this press release and available on our website.

Within this earnings release we present various financial measures, some of which are “non-GAAP financial measures” as defined in Regulation G pursuant to Section 401 of the Sarbanes - Oxley Act of 2002. A description of these non-GAAP financial measures, as well as a reconciliation of such non-GAAP measures to our most directly comparable GAAP financial measures is included in the attached Financial Supplement. Management believes that these non-GAAP measures are important to the Company's investors, analysts and other interested parties who benefit from having an objective and consistent basis for comparison with other companies within our industry. Management further believes that these measures are more relevant than comparable GAAP measures in evaluating our financial performance.

Forward-Looking Statements

In this press release, the Company and its management discuss and make statements based on currently available information regarding their intentions, beliefs, current expectations, and projections of, among other things, the Company's future performance, economic or market conditions, including current or future levels of inflation, changes in interest rates, labor market expectations, catastrophic events or geo-political conditions, legislative or regulatory actions or court decisions, business growth, retention rates, loss costs, claim trends and the impact of key business initiatives, future technologies and planned investments. Certain of these statements may constitute “forward-looking” statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and are often identified by words such as “may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “target,” “project,” “intend,” “believe,” “estimate,” “predict,” “potential,” “pro forma,” “seek,” “likely,” or “continue,” or other comparable terminology and their negatives. The Company and its management caution investors that such forward-looking statements are not guarantees of future performance. Risks and uncertainties are inherent in the Company’s future performance. Factors that could cause the Company's actual results to differ materially from those indicated by such forward-looking statements include, among other things, those discussed or identified from time to time in the Company’s public filings with the Securities and Exchange Commission (SEC), including the risks detailed in the Company's Quarterly Reports on Form 10-Q and the Company's Annual Reports on Form 10-K. Except as required by applicable securities laws, the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Filings with the SEC

The Company’s filings with the SEC and its quarterly investor presentations can be accessed through the “Investors” link on the Company's website, www.employers.com. The Company's filings with the SEC can also be accessed through the SEC's EDGAR Database at www.sec.gov (EDGAR CIK No. 0001379041).

About Employers Holdings, Inc.

Employers Holdings, Inc. (NYSE: EIG), is a holding company with subsidiaries that are specialty providers of workers’ compensation insurance and services (collectively “EMPLOYERS®”) focused on small and mid-sized businesses engaged in low-to-medium hazard industries. EMPLOYERS leverages over a century of experience to deliver comprehensive coverage solutions that meet the unique needs of its customers. Drawing from its long history and extensive knowledge, EMPLOYERS empowers businesses by protecting their most valuable asset – their employees – through exceptional claims management, loss control, and risk management services, creating safer work environments.

EMPLOYERS is also proud to offer Cerity®, which is focused on providing digital-first, direct-to-consumer workers’ compensation insurance solutions with fast, and affordable coverage options through a user-friendly online platform.

EMPLOYERS operates throughout the United States, apart from four states that are served exclusively by their state funds. Insurance is offered through Employers Insurance Company of Nevada, Employers Compensation Insurance Company, Employers Preferred Insurance Company, Employers Assurance Company and Cerity Insurance Company, all rated A- (Excellent) by A.M. Best. Not all companies do business in all jurisdictions. EIG Services, Inc., and Cerity Services, Inc., are subsidiaries of Employers Holdings, Inc. EMPLOYERS® is a registered trademark of EIG Services, Inc., and Cerity® is a registered trademark of Cerity Services, Inc. For more information, please visit www.employers.com and www.cerity.com.

Contact Information

Mike Paquette (775) 327-2562 or mpaquette@employers.com

Exhibit 99.2

Employers Holdings, Inc.

Third Quarter 2024

Financial Supplement

EMPLOYERS HOLDINGS, INC.

Table of Contents


Page

1						Consolidated Financial Highlights

2						Summary Consolidated Balance Sheets

3						Summary Consolidated Income Statements

4						Return on Equity

5						Combined Ratios

6						Roll-forward of Unpaid Losses and LAE

7						Consolidated Investment Portfolio

8						Book Value Per Share

9						Earnings Per Share

10						Non-GAAP Financial Measures

EMPLOYERS HOLDINGS, INC.

Consolidated Financial Highlights (unaudited)

$ in millions, except per share amounts


	Three Months Ended								Nine Months Ended
	September 30,								September 30,
	2024			2023			% change		2024			2023			% change
Selected financial highlights:
Gross premiums written	$	181.2		$	196.2		(8)	%	$	599.9		$	589.5		2	%
Net premiums written	179.6			194.5			(8)		594.8			584.2			2
Net premiums earned	186.6			184.6			1		559.3			534.4			5
Net investment income	26.6			25.9			3		80.3			80.3			—
Net income excluding LPT(1)	28.8			12.1			138		84.5			66.6			27
Adjusted net income(1)	20.2			17.7			14		65.1			65.6			(1)
Net Income before income taxes	36.7			17.4			111		112.1			90.3			24
Net Income	30.3			14.0			116		90.3			72.5			25
Comprehensive income (loss)	84.0			(12.1)			794		131.0			54.8			139
Total assets									3,617.3			3,527.0			3
Stockholders' equity									1,093.4			919.0			19
Stockholders' equity including the Deferred Gain(2)									1,187.2			1,019.2			16
Adjusted stockholders' equity(2)									1,232.5			1,175.8			5
Annualized adjusted return on stockholders' equity(3)	6.6		%	6.0		%	10	%	7.1		%	7.4		%	(4)	%
Amounts per share:
Cash dividends declared per share	$	0.30		$	0.28		7	%	$	0.88		$	0.82		7	%
Earnings per diluted share(4)	1.21			0.54			124		3.57			2.71			32
Earnings per diluted share excluding LPT(4)	1.15			0.46			150		3.34			2.49			34
Adjusted earnings per diluted share(4)	0.81			0.68			19		2.57			2.45			5
Book value per share(2)									44.20			35.73			24
Book value per share including the Deferred Gain(2)									47.99			39.63			21
Adjusted book value per share(2)									49.83			45.72			9
Combined ratio excluding LPT:(5):
Loss and loss adjustment expense ratio:
Current Year	63.9		%	63.3		%			64.0		%	63.4		%
Prior Year	—			(0.1)					(1.7)			(3.8)
Loss and loss adjustment expense ratio	63.9		%	63.2		%			62.3		%	59.6		%
Commission expense ratio	14.1		%	14.5		%			14.1		%	13.8		%
Underwriting and general and administrative expense ratio	23.2		%	23.6		%			23.3		%	25.0		%
Combined ratio excluding LPT	101.2		%	101.3		%			99.7		%	98.4		%


(1) See Page 3 for calculations and Page 10 for information regarding our use of Non-GAAP Financial Measures.
(2) See Page 8 for calculations and Page 10 for information regarding our use of Non-GAAP Financial Measures.
(3) See Page 4 for calculations and Page 10 for information regarding our use of Non-GAAP Financial Measures.
(4) See Page 9 for description and calculations and Page 10 for information regarding our use of Non-GAAP Financial Measures.
(5) See Pages 5 for details and Page 10 for information regarding our use of Non-GAAP Financial Measures.

EMPLOYERS HOLDINGS, INC.

Summary Consolidated Balance Sheets (unaudited)

$ in millions, except per share amounts


	September 30, 2024		December 31, 2023
ASSETS








Investments, cash and cash equivalents	$	2,601.5	$	2,504.7
Accrued investment income	15.8		16.3
Premiums receivable, net	378.8		359.4


Reinsurance recoverable, net of allowance, on paid and unpaid losses and LAE	418.8		433.8
Deferred policy acquisition costs	60.9		55.6

Deferred income tax asset, net	26.2		43.4
Contingent commission receivable—LPT Agreement	—		14.2
Other assets	115.3		123.0
Total assets	$	3,617.3	$	3,550.4

LIABILITIES
Unpaid losses and LAE	$	1,836.5	$	1,884.5
Unearned premiums	412.5		379.7
Commissions and premium taxes payable	65.4		66.0
Deferred Gain	93.8		99.2


Other liabilities	115.7		107.1
Total liabilities	$	2,523.9	$	2,536.5

STOCKHOLDERS' EQUITY


Common stock and additional paid-in capital	$	423.1	$	420.4
Retained earnings	1,452.1		1,384.3
Accumulated other comprehensive loss	(45.3)		(86.0)
Treasury stock, at cost	(736.5)		(704.8)
Total stockholders’ equity	1,093.4		1,013.9
Total liabilities and stockholders’ equity	$	3,617.3	$	3,550.4

Stockholders' equity including the Deferred Gain (1)	$	1,187.2	$	1,113.1
Adjusted stockholders' equity (1)	1,232.5		1,199.1

Book value per share (1)	$	44.20	$	39.96
Book value per share including the Deferred Gain(1)	47.99		43.88
Adjusted book value per share (1)	49.83		47.26


(1) See Page 8 for calculations and Page 10 for information regarding our use of Non-GAAP Financial Measures.

EMPLOYERS HOLDINGS, INC.

Summary Consolidated Income Statements (unaudited)

$ in millions


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2024		2023		2024		2023
Revenues:



Net premiums earned	$	186.6	$	184.6	$	559.3	$	534.4
Net investment income	26.6		25.9		80.3		80.3
Net realized and unrealized gains (losses) on investments(1)	10.9		(7.1)		24.5		10.7

Other income (loss)	(0.1)		0.1		—		(0.2)
Total revenues	224.0		203.5		664.1		625.2
Expenses:





Losses and LAE incurred	(117.7)		(114.9)		(343.0)		(312.8)
Commission expense	(26.4)		(26.7)		(78.7)		(73.8)
Underwriting and general and administrative expenses	(43.2)		(43.5)		(130.2)		(133.7)
Interest and financing expenses	—		(1.0)		(0.1)		(5.2)
Other expenses	—		—		—		(9.4)
Total expenses	(187.3)		(186.1)		(552.0)		(534.9)
Net income before income taxes	36.7		17.4		112.1		90.3

Income tax expense	(6.4)		(3.4)		(21.8)		(17.8)
Net Income	30.3		14.0		90.3		72.5
Unrealized AFS investment gains (losses) arising during the period, net of tax(2)	52.2		(27.0)		35.7		(20.0)
Reclassification adjustment for net realized AFS investment losses in net income, net of tax(2)	1.5		0.9		5.0		2.3
Total comprehensive income (loss)	$	84.0	$	(12.1)	$	131.0	$	54.8
Net Income	$	30.3	$	14.0	$	90.3	$	72.5




Amortization of the Deferred Gain - losses	(1.5)		(1.5)		(4.6)		(4.7)
Amortization of the Deferred Gain - contingent commission	—		(0.4)		(0.8)		(1.2)

LPT contingent commission adjustments	—		—		(0.4)		—
Net income excluding LPT Agreement (3)	28.8		12.1		84.5		66.6
Net realized and unrealized (gains) losses on investments	(10.9)		7.1		(24.5)		(10.7)

Lease termination and asset impairment charges	—		—		—		9.4

Income tax expense (benefit) related to items excluded from Net income	2.3		(1.5)		5.1		0.3
Adjusted net income	$	20.2	$	17.7	$	65.1	$	65.6

(1) Includes net realized and unrealized gains (losses) on equity securities and other investments of $12.8 million and $(5.9) million for the three months ended September 30, 2024 and 2023, respectively, and $30.8 million and $13.6 million for the nine months ended September 30, 2024 and 2023, respectively.
(2) AFS = Available for Sale securities.
(3) See Page 10 regarding our use of Non-GAAP Financial Measures.

EMPLOYERS HOLDINGS, INC.

Return on Equity (unaudited)

$ in millions


		Three Months Ended						Nine Months Ended
		September 30,						September 30,
		2024			2023			2024			2023

Net income	A	$	30.3		$	14.0		$	90.3		$	72.5

Impact of the LPT Agreement		(1.5)			(1.9)			(5.8)			(5.9)
Net realized and unrealized (gains) losses on investments		(10.9)			7.1			(24.5)			(10.7)

Lease termination and asset impairment charges		—			—			—			9.4

Income tax expense (benefit) related to items excluded from Net income		2.3			(1.5)			5.1			0.3
Adjusted net income (1)	B	20.2			17.7			65.1			65.6

Stockholders' equity - end of period		$	1,093.4		$	919.0		$	1,093.4		$	919.0
Stockholders' equity - beginning of period		1,022.9			951.7			1,013.9			944.2
Average stockholders' equity	C	1,058.2			935.4			1,053.7			931.6

Stockholders' equity - end of period		$	1,093.4		$	919.0		$	1,093.4		$	919.0
Deferred Gain - end of period		93.8			100.2			93.8			100.2

Accumulated other comprehensive loss - end of period		57.3			198.2			57.3			198.2

Income taxes related to accumulated other comprehensive loss - end of period		(12.0)			(41.6)			(12.0)			(41.6)
Adjusted stockholders' equity - end of period		1,232.5			1,175.8			1,232.5			1,175.8
Adjusted stockholders' equity - beginning of period		1,217.2			1,184.3			1,199.1			1,189.2
Average adjusted stockholders' equity (1)	D	1,224.9			1,180.1			1,215.8			1,182.5

Return on stockholders' equity	A / C	2.9		%	1.5		%	8.6		%	7.8		%

Annualized return on stockholders' equity		11.5			6.0			11.4			10.4

Adjusted return on stockholders' equity (1)	B / D	1.6		%	1.5		%	5.4		%	5.5		%

Annualized adjusted return on stockholders' equity (1)		6.6			6.0			7.1			7.4

(1) See Page 10 for information regarding our use of Non-GAAP Financial Measures.

EMPLOYERS HOLDINGS, INC.

Combined Ratios (unaudited)

$ in millions, except per share amounts


		Three Months Ended						Nine Months Ended
		September 30,						September 30,
		2024			2023			2024			2023

Net premiums earned	A	$	186.6		$	184.6		$	559.3		$	534.4
Losses and LAE incurred	B	117.7			114.9			343.0			312.8
Amortization of deferred reinsurance gain - losses		1.5			1.5			4.6			4.7
Amortization of deferred reinsurance gain - contingent commission		—			0.4			0.8			1.2

LPT contingent commission adjustments		—			—			0.4			—
Losses and LAE excluding LPT(1)	C	$	119.2		$	116.8		$	348.8		$	318.7

Prior year loss reserve development		(0.1)			(0.1)			(9.3)			(20.0)
Losses and LAE excluding LPT - current accident year	D	$	119.3		$	116.9		$	358.1		$	338.7
Commission expense	E	$	26.4		$	26.7		$	78.7		$	73.8
Underwriting and general and administrative expense	F	$	43.2		$	43.5		$	130.2		$	133.7
GAAP combined ratio:
Loss and LAE ratio	B/A	63.1		%	62.2		%	61.3		%	58.5		%
Commission expense ratio	E/A	14.1			14.5			14.1			13.8
Underwriting and general and administrative expense ratio	F/A	23.2			23.6			23.3			25.0
GAAP combined ratio		100.4		%	100.3		%	98.7		%	97.3		%
Combined ratio excluding LPT:(1)
Loss and LAE ratio excluding LPT	C/A	63.9		%	63.2		%	62.3		%	59.6		%
Commission expense ratio	E/A	14.1			14.5			14.1			13.8
Underwriting and general and administrative expense ratio	F/A	23.2			23.6			23.3			25.0
Combined ratio excluding LPT		101.2		%	101.3		%	99.7		%	98.4		%
Combined ratio excluding LPT: current accident year:(1)
Loss and LAE ratio excluding LPT	D/A	63.9		%	63.3		%	64.0		%	63.4		%
Commission expense ratio	E/A	14.1			14.5			14.1			13.8
Underwriting and general and administrative expenses ratio	F/A	23.2			23.6			23.3			25.0
Combined ratio excluding LPT: current accident year		101.2		%	101.4		%	101.4		%	102.2		%

(1) See Page 10 for information regarding our use of Non-GAAP Financial Measures.

EMPLOYERS HOLDINGS, INC.

Roll-forward of Unpaid Losses and LAE (unaudited)

$ in millions


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2024		2023		2024		2023

Unpaid losses and LAE at beginning of period	$	1,850.9	$	1,927.2	$	1,884.5	$	1,960.7
Reinsurance recoverable, excluding CECL allowance, on unpaid losses and LAE	418.3		436.2		428.4		445.4
Net unpaid losses and LAE at beginning of period	1,432.6		1,491.0		1,456.1		1,515.3
Losses and LAE incurred:
Current year losses	119.3		116.9		358.0		338.7
Prior year losses on voluntary business	—		—		(9.3)		(20.0)
Prior year losses on involuntary business	(0.1)		(0.1)		—		—
Total losses incurred	119.2		116.8		348.7		318.7
Losses and LAE paid:
Current year losses	38.3		32.0		69.2		64.1
Prior year losses	90.1		89.0		312.2		283.1
Total paid losses	128.4		121.0		381.4		347.2
Net unpaid losses and LAE at end of period	1,423.4		1,486.8		1,423.4		1,486.8
Reinsurance recoverable, excluding CECL allowance, on unpaid losses and LAE	413.1		426.6		413.1		426.6
Unpaid losses and LAE at end of period	$	1,836.5	$	1,913.4	$	1,836.5	$	1,913.4

Total losses and LAE shown in the above table exclude amortization of the Deferred Gain and LPT contingent commission adjustments, which totaled $1.5 million and $1.9 million for the three months ended September 30, 2024 and 2023, respectively, and $5.8 million and $5.9 million for the nine months ended September 30, 2024 and 2023, respectively.

EMPLOYERS HOLDINGS, INC.

Consolidated Investment Portfolio (unaudited)

$ in millions


	September 30, 2024				December 31, 2023
Investment Positions:	Cost or Amortized Cost (1)		Net Unrealized Gain (Loss)		Fair Value		%		Fair Value		%
Fixed maturity securities	$	2,124.6	$	(57.4)	$	2,065.8	79	%	$	1,936.3	77	%


Equity securities	150.4		111.5		261.9		10		217.2		9
Short-term investments	30.6		—		30.6		1		33.1		1
Other invested assets	88.8		10.9		99.7		4		91.5		4
Cash and cash equivalents	143.3		—		143.3		6		226.4		9
Restricted cash and cash equivalents	0.2		—		0.2		—		0.2		—
Total investments and cash	$	2,537.9	$	65.0	$	2,601.5	100	%	$	2,504.7	100	%

Breakout of Fixed Maturity Securities:


U.S. Treasuries and agencies	$	62.4	$	(0.3)	$	62.1	3	%	$	60.5	3	%
States and municipalities	181.2		1.8		183.0		9		210.2		11
Corporate securities	930.9		(24.6)		905.7		44		895.8		46


Mortgage-backed securities	552.8		(32.4)		520.1		25		426.0		22
Asset-backed securities	209.5		0.6		210.1		10		128.0		7
Collateralized loan obligations	53.3		(0.2)		53.1		3		91.5		5


Bank loans and other	134.5		(2.3)		131.7		6		124.3		6
Total fixed maturity securities	$	2,124.6	$	(57.4)	$	2,065.8	100	%	$	1,936.3	100	%


Weighted average book yield	4.4%	4.3%

Average credit quality (S&P)	A+	A
Duration	4.2	4.5
(1) Amortized cost excludes allowance for current expected credit losses of $1.4 million.

EMPLOYERS HOLDINGS, INC.

Book Value Per Share (unaudited)

$ in millions, except per share amounts


		September 30, 2024			June 30, 2024			December 31, 2023			September 30, 2023
Numerators:
Stockholders' equity	A	$	1,093.4		$	1,022.9		$	1,013.9		$	919.0
Plus: Deferred Gain		93.8			95.3			99.2			100.2
Stockholders' equity including the Deferred Gain (1)	B	1,187.2			1,118.2			1,113.1			1,019.2
Accumulated other comprehensive loss		57.3			125.3			108.9			198.2
Income taxes related to accumulated other comprehensive loss		(12.0)			(26.3)			(22.9)			(41.6)
Adjusted stockholders' equity (1)	C	$	1,232.5		$	1,217.2		$	1,199.1		$	1,175.8

Denominator (shares outstanding)	D	24,736,533			24,896,116			25,369,753			25,719,074

Book value per share (1)	A / D	$	44.20		$	41.09		$	39.96		$	35.73
Book value per share including the Deferred Gain(1)	B / D	47.99			44.91			43.88			39.63
Adjusted book value per share (1)	C / D	49.83			48.89			47.26			45.72



Year-over-year change in: (2)
Book value per share		27.0		%	15.7		%	18.1		%	12.6		%
Book value per share including the Deferred Gain		24.0			14.0			16.3			11.1
Adjusted book value per share		11.5			10.2			10.5			10.2

(1) See Page 10 for information regarding our use of Non-GAAP Financial Measures.
(2) Reflects the twelve month change in book value per share after taking into account dividends declared of $1.16, $1.14, $1.10 and $2.33 for the twelve month periods ended September 30, 2024, June 30, 2024, December 31, 2023, and September 30, 2023, respectively.

EMPLOYERS HOLDINGS, INC.

Earnings Per Share (unaudited)

$ in millions, except per share amounts


		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2024		2023		2024		2023
Numerators:
Net income	A	$	30.3	$	14.0	$	90.3	$	72.5
Impact of the LPT Agreement		(1.5)		(1.9)		(5.8)		(5.9)
Net income excluding LPT (1)	B	28.8		12.1		84.5		66.6
Net realized and unrealized (gains) losses on investments		(10.9)		7.1		(24.5)		(10.7)

Lease termination and asset impairment charges		—		—		—		9.4

Income tax expense (benefit) related to items excluded from Net income		2.3		(1.5)		5.1		0.3
Adjusted net income (1)	C	$	20.2	$	17.7	$	65.1	$	65.6

Denominators:
Average common shares outstanding (basic)	D	24,858,159		25,981,984		25,159,753		26,612,443
Average common shares outstanding (diluted)	E	24,982,463		26,118,280		25,293,020		26,767,056

Earnings per share:
Basic	A / D	$	1.22	$	0.54	$	3.59	$	2.72
Diluted	A / E	1.21		0.54		3.57		2.71

Earnings per share excluding LPT: (1)
Basic	B / D	$	1.16	$	0.47	$	3.36	$	2.50
Diluted	B / E	1.15		0.46		3.34		2.49

Adjusted earnings per share: (1)
Basic	C / D	$	0.81	$	0.68	$	2.59	$	2.47
Diluted	C / E	0.81		0.68		2.57		2.45

(1) See Page 10 for information regarding our use of Non-GAAP Financial Measures.

Non-GAAP Financial Measures

Within this earnings release we present the following measures, each of which are "non-GAAP financial measures." A reconciliation of these measures to the Company's most directly comparable GAAP financial measures is included herein. Management believes that these non-GAAP measures are important to the Company's investors, analysts and other interested parties who benefit from having an objective and consistent basis for comparison with other companies within our industry. Management further believes that these measures are more relevant than comparable GAAP measures in evaluating our financial performance.

The LPT Agreement is a non-recurring transaction that no longer provides any ongoing cash benefits to the Company. Management believes that providing non-GAAP measures that exclude the effects of the LPT Agreement (amortization of deferred reinsurance gain, adjustments to LPT Agreement ceded reserves and adjustments to the contingent commission receivable) is useful in providing investors, analysts and other interested parties a meaningful understanding of the Company's ongoing underwriting performance.

Deferred reinsurance gain (Deferred Gain) reflects the unamortized gain from the LPT Agreement. This gain has been deferred and is being amortized using the recovery method, whereby the amortization is determined by the proportion of actual reinsurance recoveries to total estimated recoveries, except for the contingent profit commission, which was amortized through June 30, 2024, the date of its final settlement. Amortization is reflected in losses and LAE incurred.

Adjusted net income (see Page 3 for calculations) is net income excluding the effects of the LPT Agreement, and net realized and unrealized gains and losses on investments (net of tax), and any miscellaneous non-recurring transactions (net of tax). Management believes that providing this non-GAAP measures is helpful to investors, analysts and other interested parties in identifying trends in the Company's operating performance because such items have limited significance to its ongoing operations or can be impacted by both discretionary and other economic factors and may not represent operating trends.

Stockholders' equity including the Deferred Gain (see Page 8 for calculations) is stockholders' equity including the Deferred Gain. Management believes that providing this non-GAAP measure is useful in providing investors, analysts and other interested parties a meaningful measure of the Company's total underwriting capital.

Adjusted stockholders' equity (see Page 8 for calculations) is stockholders' equity including the Deferred Gain, less accumulated other comprehensive income (net of tax). Management believes that providing this non-GAAP measure is useful to investors, analysts and other interested parties since it serves as the denominator to the Company's adjusted return on stockholders' equity metric.

Return on stockholders' equity and Adjusted return on stockholders' equity (see Page 4 for calculations). Management believes that these profitability measures are widely used by our investors, analysts and other interested parties.

Book value per share, Book value per share including the Deferred Gain, and Adjusted book value per share (see Page 8 for calculations). Management believes that these valuation measures are widely used by our investors, analysts and other interested parties.

Net income excluding LPT (see Page 3 for calculations). Management believes that these performance and underwriting measures are widely used by our investors, analysts and other interested parties.

Cover Page Cover Page	Oct. 30, 2024
Cover [Abstract]
Document Type	8-K
Document Period End Date	Oct. 30, 2024
Entity Registrant Name	EMPLOYERS HOLDINGS, INC.
Entity Incorporation, State or Country Code	NV
Entity File Number	001-33245
Entity Tax Identification Number	04-3850065
Entity Address, Address Line One	5340 Kietzke Lane, Suite 202
Entity Address, City or Town	Reno,
Entity Address, State or Province	NV
Entity Address, Postal Zip Code	89511
City Area Code	888
Local Phone Number	682-6671
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, $0.01 par value per share
Trading Symbol	EIG
Security Exchange Name	NYSE
Entity Emerging Growth Company	false
Entity Central Index Key	0001379041
Amendment Flag	false

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EIG Employers Holdings Inc