Employers Holdings earnings returned to profit in the third quarter of 2026, as the workers’ compensation insurer reported net income of $11.6 million, compared with a net loss of $8.3 million a year earlier. The company also declared a quarterly dividend of $0.34 per share.

Key Takeaways

  • The insurer’s combined ratio improved but remained above 100%, indicating an underwriting loss.
  • Gross premiums written fell as the company prioritized profitability over volume.
  • The dividend is payable on December 3 to shareholders of record on November 12.

Employers Holdings earnings and underwriting

Net income for the three months ended September 30 was $0.64 per diluted share, versus a loss of $0.36 per share in the same period of 2025. Adjusted net income, a non-GAAP measure, was $12.8 million, compared with an adjusted loss of $25.5 million.

Chief Executive Officer Katherine Antonello said the improvement primarily reflected the absence of reserve strengthening recorded in the prior-year quarter. Losses and loss adjustment expenses fell to $114.0 million from a year earlier, when the company recognized approximately $38.0 million of reserve strengthening.

The GAAP combined ratio improved to 108.4% from 129.7%. A ratio above 100% generally means an insurer is paying more in claims and expenses than it earns in premiums.

Premiums decline as investment income rises

Gross premiums written fell to $151.1 million from $183.9 million, while net premiums earned declined to $160.2 million from $192.1 million. The company attributed the declines to pricing and underwriting actions intended to favor profitability over volume. Policies in force fell to 124,043 from 135,414.

Net investment income rose to $32.3 million from $26.1 million. Employers attributed the increase primarily to private equity returns and higher fixed-maturity yields following its 2025 investment rebalancing. The insurer’s 2025 corporate debt fair-value disclosures provide earlier portfolio context.

Separately, the company recorded $3.2 million in net realized and unrealized investment losses, compared with $21.2 million in gains a year earlier.

Dividend, buybacks and product plans

The board declared the $0.34 dividend on October 28. During the third quarter, Employers repurchased 373,848 shares at an average price of $48.44 and returned $24.4 million to shareholders through buybacks and dividends.

Antonello said the excess workers’ compensation product launched in June had 31 accounts and $6.5 million in premium to date. A large-deductible product is targeted for launch in 2027.

Next milestone

Employers has scheduled a conference call for October 29, 2026, at 11:00 a.m. Eastern time.

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