Employers Holdings AI Stock Analysis
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Employers Holdings (EIG) AI Stock Analysis
Employers Holdings
(NYSE:EIG)
The score is held back primarily by deteriorated earnings quality and negative TTM operating/free cash flow, despite a still-conservative balance sheet. Technicals also point to a weak downtrend (below key moving averages), while valuation is mixed (solid ~2.95% yield but a relatively high ~26x P/E). The latest earnings call was constructive on profitability and underwriting improvement efforts, but growth headwinds and a combined ratio still above 100% temper the upside.
Employers Holdings (EIG) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $830.05M
- Dividend Yield
- 2.83%
- Average Volume (3M)
- 160.52K
- Price to Earnings (P/E)
- 27.8
- Beta (1Y)
- 0.24
- Revenue Growth
- -12.95%
- EPS Growth
- -33.09%
- Country
- US
- Employees
- 623
- Sector
- Financial
- Sector Strength
- 68
- Industry
- Insurance - Specialty
Employers Holdings Business Overview & Revenue Model
Company Description
Employers Holdings, Inc., along with its subsidiary companies, primarily operates within the commercial property and casualty insurance industry across the United States. The firm delivers workers' compensation policies, specifically targeting small...
How the Company Makes Money
Employers Holdings makes money primarily through (1) underwriting income from its workers’ compensation insurance operations and (2) investment income on the assets (float) generated from collected premiums. 1) Underwriting (insurance) revenue and pr...
Employers Holdings Earnings Call Summary
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.
Q3-2026 Updates
Positive Updates
Negative Updates
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.
Employers Holdings Financial Statement Overview
Summary
Balance sheet strength is a key positive (low leverage with TTM debt-to-equity ~0.16), but operating fundamentals are pressured: TTM revenue is down ~6%, profitability is thin (net margin ~3.5%, EBIT margin ~4.6%), and the biggest issue is cash generation with TTM operating cash flow and free cash flow around -$19M (a sharp reversal versus prior years).
Income Statement
46NeutralBalance Sheet
74PositiveCash Flow
28Negative| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 787.30M | 858.20M | 880.70M | 850.90M | 713.50M | 703.10M |
| Gross Profit | 359.40M | 276.40M | 323.30M | 345.20M | 226.60M | 311.80M |
| EBITDA | 47.80M | 23.70M | 150.40M | 159.00M | 64.60M | 154.90M |
| Net Income | 27.50M | 10.80M | 118.60M | 118.10M | 48.40M | 119.30M |
Balance Sheet | ||||||
| Total Assets | 3.25B | 3.44B | 3.54B | 3.55B | 3.72B | 3.78B |
| Cash, Cash Equivalents and Short-Term Investments | 2.25B | 1.20B | 2.17B | 913.20M | 2.39B | 2.43B |
| Total Debt | 128.40M | 38.90M | 4.20M | 5.90M | 196.10M | 16.60M |
| Total Liabilities | 2.47B | 2.48B | 2.47B | 2.54B | 2.77B | 2.57B |
| Stockholders Equity | 785.60M | 955.70M | 1.07B | 1.01B | 944.20M | 1.21B |
Cash Flow | ||||||
| Free Cash Flow | -21.30M | 42.50M | 71.50M | 47.20M | 97.20M | 7.20M |
| Operating Cash Flow | -18.80M | 44.70M | 76.40M | 49.40M | 99.80M | 10.80M |
| Investing Cash Flow | 50.30M | 225.90M | -159.70M | 377.30M | -146.10M | -1.70M |
| Financing Cash Flow | -122.60M | -179.10M | -74.80M | -289.50M | 60.40M | -94.40M |
Employers Holdings Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EIG, the sentiment is Negative. The current price of 47.33 is below the 20-day moving average (MA) of 49.44, below the 50-day MA of 49.19, and above the 200-day MA of 45.60, indicating a neutral trend. The MACD of -0.68 indicates Positive momentum. The RSI at 41.83 is Neutral, neither overbought nor oversold. The STOCH value of 42.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EIG.
Employers Holdings Risk Analysis
Employers Holdings disclosed 22 risk factors in its most recent earnings report. Employers Holdings reported the most risks in the "Finance & Corporate" category.
Latest Risks Added
0 New RisksEmployers Holdings Peers Comparison
Overall Rating
AMSF68Neutral
TIPT59Neutral
OSG54Neutral- EIG52Neutral
JRVR46Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| AMSF | 68Neutral | $368.62M | 8.94 | 16.38% | 13.57% | 7.68% | -17.65% |
| Sector * | 68Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
| TIPT | 59Neutral | $641.81M | 1.70 | 58.47% | 1.36% | -99.24% | -244.16% |
| OSG | 54Neutral | $243.78M | -3.29 | -6.01% | ― | 36.01% | -45.49% |
| EIG | 52Neutral | $841.10M | 27.84 | 3.17% | 2.83% | -12.95% | -33.09% |
| JRVR | 46Neutral | $148.69M | -0.92 | -27.82% | 1.23% | -2.85% | -74.55% |
* Financial Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| EIG | Employers Holdings | 47.33 | 9.00 | 23.48% | |
| AMSF | AMERISAFE, Inc. | 19.31 | -18.96 | -49.54% | |
| OSG | Octave Specialty Group, Inc. | 5.29 | -4.22 | -44.37% | |
| TIPT | Tiptree Financial Inc | 17.63 | -1.16 | -6.17% | |
| JRVR | James River Group Holdings Ltd. | 3.25 | -2.29 | -41.38% |
Employers Holdings Corporate Events
Employers Holdings Declares Dividend Amid Earnings Turnaround
PositiveIn the third quarter of 2026, Employers Holdings swung to net income of $11.6 million from a loss a year earlier, as its loss and LAE ratio improved sharply to 71.2% and its GAAP combined ratio fell to 108.4%, despite double-digit declines in gross a...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Oct 31, 2026