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Employers Holdings (EIG) Q3 2026 Earnings Report
EIG Q3 2026 EPS Results
- Actual EPS
- $0.71
- Consensus EPS
- $0.59
- Beat/Miss
- Beat by +$0.12
- One Year Ago EPS
- -$1.10
EIG Q3 2026 Revenue Results
- Actual Revenue
- $189.30M
- Expected Revenue
- $191.46M
- Beat/Miss
- Missed by -$2.15M
- YoY Revenue Growth
- -20.89%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/28/2026
- Time
- After Close
- Conference Call
- Wednesday, October 28, 2026
EIG Upcoming Earnings
Employers Holdings's next earnings date is estimated for February 17, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
EIG Q3 2026 Earnings Call
0:00 / 0:00
Q3 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was predominantly positive, with a substantial improvement in profitability, loss and combined ratios, year-to-date earnings, investment income, adjusted book value, capital returns, product expansion, and AI adoption. These gains were tempered by an 18% decline in gross premiums written, an 8% decline in policies in force, a combined ratio that remained above 100%, higher expense and commission ratios, California frequency increases, investment losses, and higher financing expense.
Company Guidance
The company expects its surgical re-underwriting effort to roll through the entire book within the fourth quarter of this year, after which premiums will stabilize to some extent and the top line will return to some stability; its excess workers’ compensation product, launched in June, had 31 accounts and $6.5 million in premium to date, and the large deductible product is targeted to launch next year. Higher reinvestment rates should contribute to earnings over time, while the new AI-driven claims summary application is expected to allow the claims team to redeploy more than 50,000 hours over three years; AI was used in two-thirds of eligible work tasks in the third quarter.
- Return to Quarterly ProfitabilityNet income was $0.64 per diluted share in Q3 2026, compared to a net loss of $0.36 per diluted share in Q3 2025. Adjusted net income was $0.71 per diluted share, compared to an adjusted net loss of $1.10 per diluted share. The improvement was driven primarily by the absence of the $38 million of reserve strengthening recorded in Q3 2025.
- Significant Improvement in Loss and Combined RatiosThe loss and LAE ratio improved to 71.2% from 97.1%, while the GAAP combined ratio improved to 108.4% from 129.7%. The voluntary business current accident year loss and LAE ratio, excluding the loss portfolio transfer, was 72%, and the company stated that it had not recognized any prior-year development on its voluntary business this year.
- Year-to-Date Earnings GrowthFor the first nine months of 2026, net income was $50.8 million and adjusted net income was $35.9 million, compared to $34.2 million and $7.4 million, respectively, for the first nine months of the prior year.
- Higher Net Investment IncomeNet investment income increased 23.8% to $32.3 million, primarily due to $5.6 million of private equity distributions and higher yields on fixed maturity securities following the 2025 investment rebalancing. Excluding private equity distributions, net investment income was approximately $26.7 million, up 6% year over year.
- Strong Fixed Income Portfolio MetricsThe fixed income book yield was 5%, up 40 basis points from the prior year. Modified duration was 4.3 and average credit quality remained strong at A+. Management said the portfolio is positioned to benefit from higher reinvestment rates over time.
- Adjusted Book Value GrowthAdjusted book value per share, excluding accumulated other comprehensive income, was $53.64, up 7.1% from a year ago and up 1.3% from the prior quarter, with both comparisons including dividends.
- Capital Returned to StockholdersThe company returned $24.4 million to stockholders during the quarter through $18.1 million of share repurchases and $6.3 million of regular quarterly dividends. It repurchased 373,848 shares at an average price of $48.44 per share and had $94.9 million of repurchase authorization remaining under the 2026 program. The board also declared a fourth-quarter dividend of $0.34 per share.
- Progress on Re-Underwriting ProgramThe company said its surgical re-underwriting effort in specific classes and jurisdictions is expected to roll through the entire book during the fourth quarter of 2026. Management expects premiums to stabilize to some extent afterward because the policies targeted for non-renewal or cancellation will have rolled off.
- Excess Workers' Compensation Product LaunchThe excess workers' compensation product launched in June was described as off to a strong start, with 31 accounts and $6.5 million in premium to date. Management said market feedback on the product's value-added services has been very positive.
- Expansion of Product OfferingThe company has begun developing a large deductible product and is targeting a launch next year. Management said expanding the workers' compensation product offering is driving additional profitable growth and deepening relationships with distribution partners.
- Growing Use of Artificial IntelligenceAI agents are now writing, testing, and documenting software at Employers. The technology team used AI in two-thirds of eligible work tasks in the third quarter, and a new AI-driven claims summary application went live after assessing the company's entire inventory of open claims.
- Expected Claims-Processing EfficiencyManagement expects the new AI-driven claims summary tool to allow the claims team to redeploy more than 50,000 hours over three years, with the stated efficiency benefits accruing to insureds, injured workers, and the company.
- Stable Audit Activity and CancellationsThe year-over-year audit pickup combined with the change in accrual was very close, and the audit accrual stood at approximately $23 million with no change made in the third quarter. Cancellations were described as relatively flat year over year, while non-compliance premium contributed approximately $2.3 million in the quarter.
- Broad Decline in Claim FrequencyManagement said workers' compensation claim frequency continues to decline countrywide, driven by claims outside California, consistent with long-term industry trends and State of the Line observations.
- Severity Generally StableOverall severity was described as very steady or lower. Management said it was not seeing a widespread severity trend and that pharmaceutical costs were only moderately higher relative to pre-pandemic levels.
- Strategic Diversification Through Excess Workers' CompensationManagement said the move into excess workers' compensation was intentional to diversify the business and allow the company to write larger insureds with self-insured retentions that might not be impacted by frequency changes to the same extent as the small-business guaranteed-cost book.
EIG Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 17, 2027 | 2026 (Q4) | 0.42- | 0.66 | ― | ― |
| Oct 28, 2026 | 2026 (Q3) | 0.590.71 | -1.1 | 164.55% (+1.81) | |
| Jul 29, 2026 | 2026 (Q2) | 0.570.70 | 0.48 | 45.83% (+0.22) | |
| Apr 29, 2026 | 2026 (Q1) | 0.550.53 | 0.87 | -39.08% (-0.34) | |
| Feb 19, 2026 | 2025 (Q4) | 0.530.66 | 1.15 | -42.61% (-0.49) | |
| Oct 30, 2025 | 2025 (Q3) | 0.52-1.10 | 0.81 | -235.80% (-1.91) | |
| Jul 30, 2025 | 2025 (Q2) | 0.990.48 | 1.1 | -56.36% (-0.62) | |
| May 01, 2025 | 2025 (Q1) | 0.740.87 | 0.67 | 29.85% (+0.20) | |
| Feb 20, 2025 | 2024 (Q4) | 1.081.15 | 1.4 | -17.86% (-0.25) | |
| Oct 30, 2024 | 2024 (Q3) | 0.780.81 | 0.68 | 19.12% (+0.13) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed
