Employers (EIG) investor relations material

Executive summary

• Net income for Q1 2026 was $10.2 million ($0.52 per diluted share), down from $12.8 million in Q1 2025, with adjusted net income at $10.3 million ($0.53 per diluted share) versus $21.3 million prior year, driven by lower premiums, higher losses, and reduced investment income.

• Gross premiums written declined 14.8% to $180.8 million, reflecting deliberate underwriting and pricing actions to restore margins.

• Book value per share including Deferred Gain rose 8.9% year-over-year to $51.26, with $83 million returned to shareholders via dividends and buybacks.

• Underwriting loss increased to $12.8 million from $3.6 million, with a combined ratio of 107.1% versus 102.0% last year.

• Entered new underwriting segments and launched Excess Workers' Compensation product, with technology innovation highlighted by first-to-market ChatGPT quoting.

Financial highlights

• Net premiums earned were $180.9 million, down 1.1% year-over-year.

• Loss and LAE ratio increased to 71.4% from 66.0%, with losses and LAE at $129.1 million, up 7.0% year-over-year.

• Underwriting expense ratio improved to 22.6% from 23.4% year-over-year.

• Net investment income fell 11.8% to $28.3 million, mainly due to lower private equity distributions.

• Net realized and unrealized investment losses were $1.7 million, a significant improvement from $12.8 million loss last year.

Outlook and guidance

• Management remains focused on underwriting discipline, process efficiency, and profitable growth, with new opportunities in expanded underwriting segments and excess workers' compensation.

• Technology innovation highlighted by being first to offer workers' compensation quoting via ChatGPT.

• Anticipate similar premium reduction trends for the remainder of 2026, with transition to growth visible toward year-end.