CAMDEN, N.J.--(BUSINESS WIRE)-- #AmericanWater--American Water (NYSE: AWK), the largest regulated water and wastewater utility company in the U.S., announced today that it has been named on Forbes America's Best Employers for Company Culture 2025 list. The ranking is based on an independent survey of employees. "American Water is honored to be recognized on the inaugural list of Forbes America's Best Employers for Company Culture," said Lori Sutton, EVP, Chief Human Resources Officer, American Water. "We gr ...

Company Overview - Employers Holdings, Inc. (NYSE: EIG) is a holding company specializing in workers' compensation insurance and services, primarily targeting small and mid-sized businesses in low-to-medium hazard industries [4][6] - The company has over a century of experience in providing comprehensive coverage solutions, focusing on protecting employees through exceptional claims management, loss control, and risk management services [4] Upcoming Financial Results - The company will release its third quarter 2025 financial results after market close on Thursday, October 30, 2025 [1] - A conference call and webcast to review these financial results is scheduled for Friday, October 31, 2025, at 11:00 a.m. EDT / 8:00 a.m. PDT [2] Digital Solutions - Employers also offers Cerity, a digital-first platform providing direct-to-consumer workers' compensation insurance solutions with fast and affordable coverage options [5]

Core Insights - The 2025 U.S. Talent Benchmarks Report by Gallagher indicates that employee retention has become a top operational priority for companies, ranking second only to revenue or sales growth [1] Group 1 - The report highlights that in the current economic climate, organizations are increasingly focused on retaining employees as a critical strategy for operational success [1] - Companies are also exploring the use of artificial intelligence (AI) to enhance inclusive practices within the workplace [1]

Core Insights - Robert Half has been recognized by Forbes as one of America's Best Employers for Company Culture 2025, highlighting its commitment to a supportive work environment [1][4] - The selection was based on a comprehensive evaluation of workplace policies and feedback from an independent survey of 218,000 workers at companies with at least 1,000 U.S. employees [2][3] Company Culture and Values - The recognition reflects the values that Robert Half implements daily, emphasizing employee fulfillment and organizational success [3] - The company is dedicated to fostering a people-first workplace culture, investing in programs that enhance connection, career development, and well-being for its employees [4] Awards and Recognition - In addition to the Forbes recognition, Robert Half has also been named one of Fortune's 100 Best Companies to Work For and recognized by Newsweek as one of America's Most Responsible Companies [4][5] - The company has been acknowledged as one of Fortune's Best Workplaces in Consulting & Professional Services for 2025 [6]

Core Insights - Stewart Information Services Corporation has been recognized on Forbes' inaugural list of America's Best Employers for Company Culture 2025, highlighting the company's strong workplace culture [1] Company Recognition - The award is presented in collaboration with Statista, a leading statistics portal and industry ranking provider [1] - The recognition reflects the company's commitment to fostering a positive and engaging work environment [1]

Core Insights - Edgewell Personal Care Company has been recognized as the 1 employer in Connecticut on Forbes' list of America's Best-In-State Employers 2025, marking the third consecutive year of this accolade [1][2] - The recognition is based on an independent survey of over 160,000 U.S. employees, with more than 2 million employer evaluations considered [2] Company Overview - Edgewell is a leading pure-play consumer products company with a diversified portfolio that includes well-known brands such as Schick®, Wilkinson Sword®, Billie®, Playtex®, and Banana Boat® [4] - The company operates in over 50 markets globally, employing approximately 6,700 individuals [4] Employee Satisfaction - The recognition highlights Edgewell's commitment to its "People First" values, which contribute to high employee satisfaction and a supportive work environment [3] - The company emphasizes comprehensive benefits, well-being initiatives, and meaningful connections among team members [2][3]

Group 1 - Robert Half has been recognized as one of America's Best-In-State Employers 2025 by Forbes, achieving the No. 1 position in its industry in California [1] - The rankings are based on an independent survey of over 160,000 employees from companies with at least 500 employees in the U.S., evaluating factors such as career development, compensation, workplace culture, and overall employer image [2] - JoLynn Conway-James, senior executive director and chief administrative officer at Robert Half, emphasized the company's people-first workplace culture and commitment to employee success through various support programs [3] Group 2 - Robert Half is the world's first and largest specialized talent solutions and business consulting firm, providing contract talent and permanent placement solutions across various fields including finance, technology, and legal [4] - The company has also been recognized as a top workplace in the Bay Area by the San Francisco Times/Silicon Valley Business Journal and Fortune [3][4]

[PART I – FINANCIAL INFORMATION](index=2&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) This section presents the unaudited consolidated financial statements, management's discussion, and market risk disclosures [Item 1. Consolidated Financial Statements](index=2&type=section&id=Item%201.%20Consolidated%20Financial%20Statements) This section provides unaudited consolidated financial statements, including balance sheets, income, equity, and cash flow statements, with detailed accounting notes [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Presents the Company's financial position, detailing assets, liabilities, and stockholders' equity at specific dates Consolidated Balance Sheet Highlights (in millions) | Item | June 30, 2025 | December 31, 2024 | | :----------------------------------- | :------------ | :---------------- | | **Assets** | | | | Total investments | $2,460.2 | $2,463.9 | | Cash and cash equivalents | $69.1 | $68.3 | | Premiums receivable (net) | $382.0 | $361.3 | | Reinsurance recoverable for unpaid losses (net) | $400.2 | $411.5 | | Total assets | $3,543.3 | $3,541.3 | | **Liabilities** | | | | Unpaid losses and loss adjustment expenses | $1,786.8 | $1,808.2 | | Unearned premiums | $429.6 | $402.2 | | Total liabilities | $2,460.2 | $2,472.6 | | **Stockholders' Equity** | | | | Retained earnings | $1,500.2 | $1,472.9 | | Accumulated other comprehensive loss, net of tax | $(53.2) | $(82.5) | | Treasury stock, at cost | $(790.2) | $(746.5) | | Total stockholders' equity | $1,083.1 | $1,068.7 | | Total liabilities and stockholders' equity | $3,543.3 | $3,541.3 | [Consolidated Statements of Comprehensive Income (Loss)](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20%28Loss%29) Details the Company's revenues, expenses, net income, and other comprehensive income for specified periods Consolidated Statements of Comprehensive Income (Loss) Highlights (in millions, except per share data) | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net premiums earned | $198.3 | $187.8 | $381.3 | $372.6 | | Net investment income | $27.1 | $26.9 | $59.2 | $53.8 | | Net realized and unrealized gains on investments | $20.9 | $2.2 | $8.1 | $13.6 | | Total revenues | $246.3 | $217.0 | $448.9 | $440.1 | | Losses and loss adjustment expenses | $140.1 | $108.8 | $260.8 | $225.3 | | Total expenses | $209.3 | $177.0 | $396.0 | $364.8 | | Net Income | $29.7 | $31.7 | $42.5 | $60.0 | | Total Comprehensive income | $37.2 | $29.6 | $71.8 | $47.0 | | Basic Earnings per common share | $1.24 | $1.25 | $1.76 | $2.37 | | Diluted Earnings per common share | $1.23 | $1.25 | $1.74 | $2.36 | | Cash dividends declared per common share | $0.32 | $0.30 | $0.62 | $0.58 | [Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Stockholders'%20Equity) Outlines changes in stockholders' equity, including net income, dividends, and other comprehensive income adjustments Changes in Stockholders' Equity (in millions) | Item | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :----------------------------- | :----------------------------- | | Balance, January 1 | $1,068.7 | $1,013.9 | | Stock-based obligations | $2.8 | $2.8 | | Vesting of RSUs and PSUs, net of tax withholdings | $(1.3) | $(1.7) | | Acquisitions of common stock | $(43.7) | $(24.2) | | Dividends declared | $(15.2) | $(14.9) | | Net income for the period | $42.5 | $60.0 | | Change in net unrealized losses on AFS investments, net of taxes | $29.3 | $(13.0) | | Balance, June 30 | $1,083.1 | $1,022.9 | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Summarizes cash inflows and outflows from operating, investing, and financing activities for specified periods Consolidated Statements of Cash Flows Highlights (in millions) | Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $14.6 | $12.3 | | Net cash provided by (used in) investing activities | $46.2 | $(101.6) | | Net cash used in financing activities | $(60.0) | $(41.6) | | Net increase (decrease) in cash, cash equivalents and restricted cash | $0.8 | $(130.9) | | Cash, cash equivalents and restricted cash at the beginning of the period | $68.5 | $226.6 | | Cash, cash equivalents and restricted cash at the end of the period | $69.3 | $95.7 | [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Provides detailed explanations and disclosures supporting the consolidated financial statements [1. Basis of Presentation and Summary of Operations](index=10&type=section&id=1.%20Basis%20of%20Presentation%20and%20Summary%20of%20Operations) EHI, a Nevada holding company, provides workers' compensation insurance, preparing U.S. GAAP financial statements with estimates for a single operating segment - EHI is a Nevada holding company engaged in the commercial property and casualty insurance industry, specializing in workers' compensation products and services through its wholly owned insurance subsidiaries[29](index=29&type=chunk) - The Company accounts for a retroactive 100% quota share reinsurance agreement (LPT Agreement) as retroactive reinsurance, with an initial deferred reinsurance gain recorded as a liability[30](index=30&type=chunk)[31](index=31&type=chunk) - The Company operates as a single operating segment, Insurance Operations, with significant management judgments required for estimates such as unpaid losses, reinsurance recoverables, premium revenue, deferred income taxes, and investment valuation[33](index=33&type=chunk)[34](index=34&type=chunk) [2. New Accounting Standards](index=11&type=section&id=2.%20New%20Accounting%20Standards) The Company is evaluating ASU 2024-03 for expense disaggregation and adopted ASU 2023-07 for improved segment reporting disclosures - The FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income-Expense Disaggregation Disclosures, effective for fiscal years beginning after December 15, 2026, requiring further disaggregation of certain costs and expenses[36](index=36&type=chunk) - The Company adopted ASU 2023-07, Segment Reporting, as of December 31, 2024, which improves disclosures about reportable segments by requiring more detailed information on significant segment expenses and CODM performance measures[37](index=37&type=chunk) [3. Valuation of Financial Instruments](index=11&type=section&id=3.%20Valuation%20of%20Financial%20Instruments) Financial instruments are categorized by fair value levels, with total investments at fair value of **$2,354.1 million** as of June 30, 2025 Financial Instruments Carried at Fair Value (in millions) | Item | June 30, 2025 Carrying Value | June 30, 2025 Estimated Fair Value | December 31, 2024 Carrying Value | December 31, 2024 Estimated Fair Value | | :-------------------------- | :----------------------------- | :--------------------------------- | :------------------------------- | :------------------------------- | | Total investments at fair value | $2,354.1 | $2,354.1 | $2,351.6 | $2,351.6 | | Cash and cash equivalents | $69.1 | $69.1 | $68.3 | $68.3 | | Restricted cash and cash equivalents | $0.2 | $0.2 | $0.2 | $0.2 | - As of June 30, 2025, the Company held **$68.6 million** of fixed maturity securities designated as Level 3 due to limited observable market information[44](index=44&type=chunk) Investments at Fair Value by Level (in millions) | Category | June 30, 2025 Level 1 | June 30, 2025 Level 2 | June 30, 2025 Level 3 | December 31, 2024 Level 1 | December 31, 2024 Level 2 | December 31, 2024 Level 3 | | :-------------------------- | :-------------------- | :-------------------- | :-------------------- | :------------------------ | :------------------------ | :------------------------ | | Total fixed maturity securities | $— | $2,008.4 | $68.6 | $— | $2,031.8 | $65.6 | | Total equity securities at fair value | $268.1 | $— | $— | $254.1 | $— | $— | | Short-term investments | $— | $9.0 | $— | $0.1 | $— | $— | | Total investments at fair value | $268.1 | $2,017.4 | $68.6 | $254.2 | $2,031.8 | $65.6 | - The Company's investments in private equity limited partnership interests are carried at Net Asset Value (NAV) and totaled **$98.6 million** at June 30, 2025, with unfunded commitments of **$13.1 million**[49](index=49&type=chunk) [4. Investments](index=14&type=section&id=4.%20Investments) Total AFS investments were **$2,086.0 million** at June 30, 2025, with increased net investment income and significant realized/unrealized gains Total AFS Investments (in millions) | Item | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Amortized Cost | $2,154.5 | $2,203.2 | | Allowance for CECL | $(1.1) | $(1.1) | | Gross Unrealized Gains | $18.6 | $9.9 | | Gross Unrealized Losses | $(86.0) | $(114.5) | | Estimated Fair Value | $2,086.0 | $2,097.5 | Net Realized and Unrealized Gains on Investments (in millions) | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total investments | $20.9 | $2.2 | $8.1 | $13.6 | Net Investment Income (in millions) | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net investment income | $27.1 | $26.9 | $59.2 | $53.8 | - Securities on deposit with states for regulatory requirements totaled **$655.3 million** at June 30, 2025, up from **$630.9 million** at December 31, 2024[62](index=62&type=chunk) [5. Current Expected Credit Losses](index=18&type=section&id=5.%20Current%20Expected%20Credit%20Losses) CECL allowances are maintained for premiums receivable, reinsurance recoverables, and AFS investments, with the premiums receivable allowance increasing to **$22.4 million** Changes in CECL on Premiums Receivable (in millions) | Item | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :----------------------------- | :----------------------------- | | Beginning balance | $19.2 | $17.9 | | Current period provision | $11.0 | $10.1 | | Write-offs charged against allowance | $(3.2) | $(5.0) | | Recoveries collected | $(4.6) | $(4.2) | | Ending balance | $22.4 | $18.8 | Changes in CECL on Reinsurance Recoverables (in millions) | Item | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :----------------------------- | :----------------------------- | | Beginning balance | $0.9 | $0.9 | | Current period provision | $(0.1) | $— | | Ending balance | $0.8 | $0.9 | - As of June 30, 2025, the Company established an aggregate allowance for CECL on AFS investments of **$1.1 million**, with no intent to sell any AFS investments below their amortized cost[72](index=72&type=chunk)[73](index=73&type=chunk) [6. Property and Equipment](index=19&type=section&id=6.%20Property%20and%20Equipment) Net property and equipment remained stable at **$7.7 million**, while capitalized cloud computing costs decreased to **$13.7 million** Property and Equipment, Net (in millions) | Item | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Property and equipment, gross | $43.3 | $48.9 | | Accumulated depreciation | $(35.6) | $(41.1) | | Property and equipment, net | $7.7 | $7.8 | - Capitalized costs associated with cloud computing arrangements decreased to **$13.7 million** at June 30, 2025, from **$17.3 million** at December 31, 2024[76](index=76&type=chunk) Maturities of Lease Liabilities (in millions) | Year | Operating Leases | | :--- | :--------------- | | 2025 | $0.7 | | 2026 | $1.2 | | 2027 | $1.2 | | 2028 | $0.4 | | Total lease payments | $3.5 | [7. Income Taxes](index=21&type=section&id=7.%20Income%20Taxes) The effective tax rate for Q2 and H1 2025 was **19.7%**, with a **$0.4 million** excise tax obligation from stock repurchases - The effective tax rate for the three and six months ended June 30, 2025, was **19.7%**, compared to **20.8%** and **20.3%** for the corresponding periods in 2024[81](index=81&type=chunk) - The Company's excise tax obligation from net stock repurchases was **$0.4 million** for the six months ended June 30, 2025, due to the Inflation Reduction Act of 2022[82](index=82&type=chunk) - The Company is evaluating the impact of the recently enacted One Big Beautiful Bill Act (OBBBA) on its financial condition and results of operations[83](index=83&type=chunk) [8. Liability for Unpaid Losses and Loss Adjustment Expenses](index=21&type=section&id=8.%20Liability%20for%20Unpaid%20Losses%20and%20Loss%20Adjustment%20Expenses) Unpaid losses and LAE decreased to **$1,786.8 million**, with unfavorable prior accident year development of **$1.6 million** Reconciliation of Changes in Liability for Unpaid Losses and LAE (in millions) | Item | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :----------------------------- | :----------------------------- | | Unpaid losses and LAE at beginning of period | $1,808.2 | $1,884.5 | | Net unpaid losses and LAE at beginning of period | $1,395.8 | $1,456.1 | | Total net losses and LAE incurred during the period | $264.1 | $229.5 | | Total net paid losses and LAE during the period | $274.1 | $253.0 | | Unpaid losses and LAE at end of period | $1,786.8 | $1,850.9 | - The increase in current accident year losses and LAE for the three and six months ended June 30, 2025, was primarily due to unfavorable loss trends, predominantly in California, driven by a rapid increase in cumulative trauma (CT) claims[86](index=86&type=chunk)[87](index=87&type=chunk) - Prior accident year development for the six months ended June 30, 2025, included **$0.7 million** net unfavorable development on voluntary risk business and **$0.9 million** net unfavorable development on assigned risk business, contrasting with **$9.2 million** net favorable development in the prior year[88](index=88&type=chunk)[89](index=89&type=chunk) [9. LPT Agreement](index=22&type=section&id=9.%20LPT%20Agreement) The LPT Agreement covers losses up to **$2.0 billion**, with a remaining Deferred Gain of **$90.7 million** as of June 30, 2025 - The LPT Agreement provides coverage for losses up to **$2.0 billion** for claims with original dates of injury prior to July 1, 1995[91](index=91&type=chunk) - The Company amortized **$3.3 million** of the Deferred Gain for the six months ended June 30, 2025, compared to **$3.8 million** for the same period in 2024[92](index=92&type=chunk) - The remaining Deferred Gain was **$90.7 million** as of June 30, 2025, down from **$94.0 million** at December 31, 2024[93](index=93&type=chunk) [10. Financing Arrangements](index=22&type=section&id=10.%20Financing%20Arrangements) EHI has a **$25.0 million** credit facility with no borrowings, and subsidiaries have access to **$170.0 million** in FHLB standby letters of credit - EHI entered into a **$25.0 million** unsecured, three-year revolving credit facility on May 28, 2024, with an option to increase to **$35.0 million**[94](index=94&type=chunk) - EHI had no borrowings under the Credit Agreement during the six months ended June 30, 2025, and remained in compliance with all covenants, including maintaining a minimum consolidated net worth of **$800.0 million** and a debt to total capitalization ratio of no more than **35%**[96](index=96&type=chunk)[98](index=98&type=chunk) - The Company's insurance subsidiaries have access to standby letters of credit from the FHLB, totaling **$170.0 million**, which are fully secured with eligible collateral[100](index=100&type=chunk) [11. Accumulated Other Comprehensive Loss](index=23&type=section&id=11.%20Accumulated%20Other%20Comprehensive%20Loss) AOCI improved to **$(53.2) million** at June 30, 2025, driven by reduced net unrealized losses on AFS investments Components of Accumulated Other Comprehensive Loss (in millions) | Item | June 30, 2025 | December 31, 2024 | | :----------------------------------- | :------------ | :---------------- | | Net unrealized losses on AFS investments, before taxes | $(67.3) | $(104.5) | | Deferred tax benefit on net unrealized losses | $14.1 | $22.0 | | Total accumulated other comprehensive loss | $(53.2) | $(82.5) | [12. Stock-Based Compensation](index=24&type=section&id=12.%20Stock-Based%20Compensation) The Company granted RSUs and PSUs in 2025, with **208,279 RSUs** and **221,496 PSUs** outstanding as of June 30, 2025 Stock-Based Awards Granted (February & May 2025) | Award Type | Number Awarded | Weighted Average Fair Value on Date of Grant | | :--------- | :------------- | :----------------------------------------- | | RSUs (February 2025) | 53,040 | $49.33 | | PSUs (February 2025) | 94,820 | $49.33 | | RSUs (May 2025) | 4,400 | $48.09 | | PSUs (May 2025) | 420 | $48.09 | | RSUs (May 2025, non-employee directors) | 14,187 | $47.12 | - As of June 30, 2025, the Company had **208,279 RSUs** and **221,496 PSUs** (based on target achievement) outstanding[105](index=105&type=chunk) [13. Earnings Per Common Share](index=24&type=section&id=13.%20Earnings%20Per%20Common%20Share) Basic EPS for H1 2025 was **$1.76**, and diluted EPS was **$1.74**, reflecting a decrease from the prior year Earnings Per Common Share Calculation (in millions, except share data) | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income | $29.7 | $31.7 | $42.5 | $60.0 | | Weighted average number of shares outstanding—basic | 24,005,881 | 25,278,473 | 24,201,160 | 25,312,208 | | Weighted average number of shares outstanding—diluted | 24,136,221 | 25,363,941 | 24,370,311 | 25,449,957 | - No potential dilutive shares were excluded from diluted EPS computations for the three and six months ended June 30, 2025, as they were not anti-dilutive[110](index=110&type=chunk) [14. Segment Reporting](index=25&type=section&id=14.%20Segment%20Reporting) The Company operates as a single Insurance Operations segment, with a combined ratio of **103.9%** and in-force premiums of **$768.3 million** for H1 2025 - The Company operates as a single reportable segment, Insurance Operations, providing workers' compensation insurance[111](index=111&type=chunk) - Performance is determined based on net income, combined ratio, and adjusted stockholders' equity, with the latter being a non-GAAP measure of financial strength[112](index=112&type=chunk) Insurance Operations Financial Highlights (in millions, except percentages) | Item | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :----------------------------- | :----------------------------- | | Gross premiums written | $415.4 | $418.7 | | Net premiums earned | $381.3 | $372.6 | | Total revenues | $448.9 | $440.1 | | Losses and loss adjustment expenses | $260.8 | $225.3 | | Total expenses | $396.0 | $364.8 | | Net income | $42.5 | $60.0 | | Combined ratio | 103.9 % | 97.9 % | | Adjusted stockholders' equity | $1,227.0 | $1,217.2 | In-force Premiums by State (in millions) | State | June 30, 2025 In-force Premiums | December 31, 2024 In-force Premiums | June 30, 2024 In-force Premiums | | :-------------------------- | :-------------------------------- | :---------------------------------- | :-------------------------------- | | California | $351.6 | $336.1 | $328.0 | | Florida | $63.3 | $60.1 | $58.0 | | New York | $36.0 | $36.1 | $34.9 | | Other (43 states and D.C.) | $300.2 | $309.8 | $308.4 | | Total in-force, including estimated audit premium | $768.3 | $751.7 | $737.6 | [Item 2. Management's Discussion and Analysis of Consolidated Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Consolidated%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial condition and results, noting decreased net income due to higher losses, strong investment income, and robust liquidity [General](index=30&type=section&id=General) Describes the Company's business model, strategic focus, and ongoing initiatives for profitable growth and risk diversification - The Company provides workers' compensation insurance coverage to small and mid-sized businesses in low-to-medium hazard industries across most of the United States, with **47%** of in-force premiums generated in California[125](index=125&type=chunk) - The Company focuses on disciplined underwriting, claims management, medical provider networks, and diversified distribution channels to achieve profitable growth[127](index=127&type=chunk)[128](index=128&type=chunk) - Ongoing business initiatives include achieving business process excellence, delivering self-service options, diversifying risk exposure, and broadening appetite expansion[130](index=130&type=chunk) [Overview](index=31&type=section&id=Overview) Summarizes key financial performance indicators, including net income, premiums earned, and investment results for the reporting periods - Net income decreased to **$29.7 million** for the three months ended June 30, 2025 (from **$31.7 million** in 2024) and to **$42.5 million** for the six months ended June 30, 2025 (from **$60.0 million** in 2024)[131](index=131&type=chunk) - Key factors affecting financial performance for the three and six months ended June 30, 2025, included moderate increases in net premiums earned, higher losses and LAE, and strong net investment income with favorable net realized and unrealized gains[131](index=131&type=chunk) Summary Financial Results (in millions) | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Gross premiums written | $203.3 | $207.9 | $415.4 | $418.7 | | Net premiums earned | $198.3 | $187.8 | $381.3 | $372.6 | | Net investment income | $27.1 | $26.9 | $59.2 | $53.8 | | Net realized and unrealized gains on investments | $20.9 | $2.2 | $8.1 | $13.6 | | Losses and LAE | $140.1 | $108.8 | $260.8 | $225.3 | | Underwriting (loss) income | $(11.0) | $10.8 | $(14.6) | $7.8 | [I. Review of Underwriting Results](index=33&type=section&id=I.%20Review%20of%20Underwriting%20Results) Analyzes underwriting performance, including gross premiums written, net premiums earned, loss ratios, and combined ratio trends Underwriting Results (in millions, except percentages) | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Gross premiums written | $203.3 | $207.9 | $415.4 | $418.7 | | Net premiums earned | $198.3 | $187.8 | $381.3 | $372.6 | | Underwriting (loss) income | $(11.0) | $10.8 | $(14.6) | $7.8 | | Loss and LAE ratio | 70.7 % | 57.9 % | 68.4 % | 60.5 % | | Commission expense ratio | 13.2 % | 13.9 % | 12.9 % | 13.7 % | | Underwriting expense ratio | 21.7 % | 22.4 % | 22.6 % | 23.7 % | | Combined ratio | 105.6 % | 94.2 % | 103.9 % | 97.9 % | - Gross premiums written declined by **2.2%** for the three months and **0.8%** for the six months ended June 30, 2025, primarily due to reductions in new business, despite achieving a record number of in-force policies (**134,421** at June 30, 2025)[136](index=136&type=chunk) - The calendar year loss and LAE ratio increased to **70.7%** for the three months and **68.4%** for the six months ended June 30, 2025, primarily due to a higher current accident year loss and LAE estimate driven by unfavorable loss trends, particularly from cumulative trauma (CT) claims in California[148](index=148&type=chunk)[149](index=149&type=chunk) - Prior accident year development for the six months ended June 30, 2025, was **$1.6 million** unfavorable, a significant shift from **$9.2 million** favorable in the prior year[151](index=151&type=chunk) - The commission expense ratio decreased due to an increase in renewal premiums (lower commission rate) and lower agency incentive accruals[158](index=158&type=chunk) - The underwriting expense ratio decreased due to a disciplined focus on expense reduction[160](index=160&type=chunk) [II. Review of Non-Underwriting Results](index=38&type=section&id=II.%20Review%20of%20Non-Underwriting%20Results) Examines financial performance from investment income, realized/unrealized gains, interest expenses, and income tax expenses - Net investment income increased by **10.0%** for the six months ended June 30, 2025, primarily due to returns from private equity limited partnerships and higher book yields on fixed maturity securities[164](index=164&type=chunk) - Net realized and unrealized gains on investments were **$20.9 million** for the three months ended June 30, 2025, a substantial increase from **$2.2 million** in the prior year, driven by gains on equity securities and other investments[166](index=166&type=chunk) - Interest and financing expenses were minimal, less than **$0.1 million** for the three months and **$0.1 million** for the six months ended June 30, 2025[170](index=170&type=chunk) - Income tax expense decreased to **$7.3 million** for the three months and **$10.4 million** for the six months ended June 30, 2025, with effective tax rates of **19.7%** for both periods[171](index=171&type=chunk) [Liquidity and Capital Resources](index=39&type=section&id=Liquidity%20and%20Capital%20Resources) Assesses the Company's ability to meet financial obligations, manage capital, and fund operations through cash, investments, and credit facilities - The Company believes its total capital position and liquidity are strong and sufficient for financing needs in the next 12 months and longer-term[172](index=172&type=chunk) - EHI's liquidity is contingent on existing capital and dividends from subsidiaries, which are restricted by state insurance laws[173](index=173&type=chunk) - Several subsidiaries declared dividends in Q1 and Q2 2025, limiting further payments without regulatory approval for the remainder of 2025[174](index=174&type=chunk)[175](index=175&type=chunk)[176](index=176&type=chunk) - Total cash and investments at the holding company were **$37.8 million** at June 30, 2025[177](index=177&type=chunk) - Operating subsidiaries' liquidity is primarily from premium collections, investment income, and reinsurance recoveries, with total cash and investments of **$2,491.7 million** at June 30, 2025[183](index=183&type=chunk)[184](index=184&type=chunk) - Net cash provided by operating activities increased to **$14.6 million** for the six months ended June 30, 2025, from **$12.3 million** in the prior year[191](index=191&type=chunk) - Net cash provided by investing activities was **$46.2 million** for the six months ended June 30, 2025, a significant improvement from net cash used of **$(101.6) million** in the prior year[191](index=191&type=chunk) - The Company paid **$15.4 million** in dividends and repurchased **888,101 shares** of common stock for **$43.4 million** during the six months ended June 30, 2025[197](index=197&type=chunk)[198](index=198&type=chunk) - As of June 30, 2025, the investment portfolio consisted of **85%** fixed maturity securities with a duration of **4.3** and a weighted average quality of 'A+'[206](index=206&type=chunk) - Contractual obligations include **$3.5 million** in lease payments, **$9.9 million** in other purchase obligations, and **$13.1 million** in unfunded investment commitments to private equity limited partnerships[200](index=200&type=chunk)[201](index=201&type=chunk)[202](index=202&type=chunk) - Unpaid losses and LAE reserves totaled **$1,786.8 million**, with **$321.8 million** payable within 12 months[203](index=203&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=44&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The Company manages credit, interest rate, and equity price risks through diversification, duration management, and sensitivity analysis, also addressing inflation impacts - The Company is exposed to credit risk from fixed maturity securities, equity securities, other invested assets, cash equivalents, reinsurers, and premiums receivable, mitigated through diversification and monitoring[217](index=217&type=chunk)[218](index=218&type=chunk) - Interest rate risk on fixed maturity securities is managed through duration, which was **4.3** at June 30, 2025[220](index=220&type=chunk) Sensitivity of Fixed Maturity Securities and Short-Term Investments to Interest Rate Changes (in millions, except percentages) | Hypothetical Changes in Interest Rates | Estimated Pre-tax Increase (Decrease) in Fair Value | | :----------------------------------- | :------------------------------------------------ | | 300 basis point rise | $(250.4) (12.0)% | | 200 basis point rise | $(170.3) (8.2)% | | 100 basis point rise | $(86.3) (4.1)% | | 50 basis point decline | $43.2 (2.1)% | | 100 basis point decline | $86.1 (4.1)% | | 200 basis point decline | $170.3 (8.2)% | | 300 basis point decline | $252.3 (12.1)% | - Equity price risk is minimized by investing primarily in mid-to-large capitalization issuers and diversifying holdings across industry sectors[224](index=224&type=chunk) Sensitivity of Equity Securities at Fair Value to Price Changes (in millions) | Item | Cost | Fair Value | 10% Fair Value Decrease | Pre-tax Decrease in Total Equity Securities | 10% Fair Value Increase | Pre-tax Increase in Total Equity Securities | | :---------------- | :--- | :--------- | :---------------------- | :---------------------------------------- | :---------------------- | :---------------------------------------- | | Equity securities | $148.0 | $268.1 | $241.3 | $(26.8) | $294.9 | $26.8 | - Higher inflation could significantly impact financial statements by increasing loss and LAE reserves, operating expenses, and wage inflation, while also increasing net investment income due to rising interest rates[227](index=227&type=chunk)[228](index=228&type=chunk)[229](index=229&type=chunk) [Item 4. Controls and Procedures](index=45&type=section&id=Item%204.%20Controls%20and%20Procedures) Management confirmed effective disclosure controls and procedures, with no material changes to internal control over financial reporting - The Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures were effective as of June 30, 2025[230](index=230&type=chunk) - There have been no material changes in the Company's internal control over financial reporting during the period covered by this report[231](index=231&type=chunk) [PART II – OTHER INFORMATION](index=46&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) This section provides additional information including legal proceedings, risk factors, equity sales, and other disclosures [Item 1. Legal Proceedings](index=46&type=section&id=Item%201.%20Legal%20Proceedings) The Company is involved in routine legal proceedings, with no material impact expected on operations or financial position - The Company is involved in pending and threatened litigation in the normal course of business[233](index=233&type=chunk) - Management believes that the ultimate liability from such litigation is not expected to have a material effect on the Company's results of operations, liquidity, or financial position[233](index=233&type=chunk) [Item 1A. Risk Factors](index=46&type=section&id=Item%201A.%20Risk%20Factors) The Company reviews risk factors quarterly, reporting no material changes from its Annual Report on Form 10-K - The Company reviews and updates its risk factors quarterly[234](index=234&type=chunk) - As of the date of this report, there have been no material changes to the risk factors contained in the Annual Report[234](index=234&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=46&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The Company repurchased **482,000 shares** for **$23.2 million** and authorized a new **$125.0 million** stock repurchase program Common Stock Repurchases (Three Months Ended June 30, 2025) | Period | Total Number of Shares Purchased | Average Price Paid Per Share | Approximate Dollar Value of Shares that May Yet be Purchased Under the Program (in millions) | | :----------------- | :------------------------------- | :--------------------------- | :---------------------------------------------------------------------------------------- | | April 1 - April 30 | 170,000 | $48.35 | $125.0 | | May 1 - May 31 | 144,000 | $49.02 | $117.9 | | June 1 - June 30 | 168,000 | $47.01 | $110.0 | | Total | 482,000 | $48.08 | | - On April 30, 2025, the Board authorized the 2025 Program for repurchases of up to **$125.0 million** of common stock through December 31, 2026, replacing a similar exhausted program[235](index=235&type=chunk) [Item 3. Defaults Upon Senior Securities](index=46&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities occurred during the reporting period - There were no defaults upon senior securities[236](index=236&type=chunk) [Item 4. Mine Safety Disclosures](index=46&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Mine Safety Disclosures are not applicable to the Company's operations - Mine Safety Disclosures are not applicable to the Company[237](index=237&type=chunk) [Item 5. Other Information](index=46&type=section&id=Item%205.%20Other%20Information) No Rule 10b5-1 or non-Rule 10b5-1 trading arrangements were adopted or terminated by directors or officers - No director or officer adopted or terminated a 'Rule 10b5-1 trading arrangement' or 'non-Rule 10b5-1 trading arrangement' during the three months ended June 30, 2025[238](index=238&type=chunk) [Item 6. Exhibits](index=47&type=section&id=Item%206.%20Exhibits) This section lists all Form 10-Q exhibits, including certifications and XBRL-formatted financial statements - The exhibits include certifications of Katherine H. Antonello and Michael A. Pedraja pursuant to Sections 302 and 906[239](index=239&type=chunk) - Financial statements for the quarter ended June 30, 2025, are included in Inline XBRL format, along with XBRL Taxonomy Extension Schema, Calculation, Definition, Label, and Presentation Linkbase Documents[239](index=239&type=chunk) [Signatures](index=48&type=section&id=Signatures) The report was signed by Michael A. Pedraja, EVP and CFO of Employers Holdings, Inc., on August 1, 2025 - The report was signed by Michael A. Pedraja, Executive Vice President and Chief Financial Officer of Employers Holdings, Inc., on August 1, 2025[242](index=242&type=chunk)

Financial Data and Key Metrics Changes - Gross written premium decreased by 2.2% compared to 2024, primarily due to a decrease in new business written premium within the middle market [7][11] - Net premiums earned increased by 5.6%, driven by strong increases in net written premium in 2024 [7][11] - The current accident year loss and loss adjustment expense (LAE) ratio on voluntary business was 69%, up from 66% in 2024, reflecting a response to rising cumulative trauma claims in California [8][11] - Adjusted net income decreased by 58.8% to $11,500,000 compared to $27,900,000 in the prior year [15] - Stockholders' equity increased, with book value per share rising 12.8% to $49.44 and adjusted book value per share increasing by 8.2% to $51.68 over the last twelve months [19] Business Line Data and Key Metrics Changes - The company experienced a record number of policies in force, with a year-over-year growth rate of 4.6% [7] - Commission expense ratio improved to 13.2% from 13.9% a year ago, while underwriting expense ratio decreased to 21.7% from 22.4% [10][12] - Net investment income for the quarter was $27,100,000, slightly higher than the previous year [14] Market Data and Key Metrics Changes - The California Insurance Commissioner approved an 8.7% rate increase effective September 1, driven by medical loss development and increased frequency of cumulative trauma claims [22][23] - The company noted that California represents about 45% of its book, and while overall industry results are worsening, the company believes its results will remain favorable [22] Company Strategy and Development Direction - The company is focused on profitability over growth, leading to targeted underwriting actions and improved risk selection [7] - There is an ongoing emphasis on expense management and capital management, with a commitment to refining underwriting and pricing approaches for profitable growth [17][18] - The company is actively involved in advocating for legislative reforms to address the challenges posed by cumulative trauma claims in California [39][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's financial strength and prospects, highlighting the importance of deep customer relationships and geographic diversification [18] - The company is cautiously optimistic about managing potential headwinds related to prescription drug costs and medical services [18] - A full actuarial study is planned for the third quarter to assess the impact of cumulative trauma claims [9][35] Other Important Information - The Board of Directors declared a quarterly dividend of $0.32 per share, payable on August 27 [16] - The company repurchased $23,000,000 of its common stock at an average price of $48.08 per share during the quarter [15] Q&A Session Summary Question: Impact of cumulative trauma claims on current accident year loss - Management noted that California's results have been more favorable than the industry, but overall industry results are worsening, prompting actions on current accident year reserves [22][24] Question: Frequency of claims and attorney involvement - Management confirmed that California allows claims to be filed post-termination, leading to higher attorney involvement and a broader legislative framework compared to other states [29][30] Question: Confidence in reserves reflecting trends - Management expressed confidence in their multi-pronged approach to manage reserves and indicated that accident year 2025 is in a good position [35][36] Question: Comparison of claims to industry averages - Management stated that their book remains better than the industry average and that claims are typically late reported [38] Question: Capital management and excess capital - Management highlighted their high level of excess capital, which provides flexibility for growth investments and potential capital management strategies [44][45]

分组1 - Employers Holdings (EIG) reported quarterly earnings of $0.48 per share, missing the Zacks Consensus Estimate of $0.94 per share, and down from $1.1 per share a year ago, representing an earnings surprise of -48.94% [1] - The company posted revenues of $246.3 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 14.75%, compared to year-ago revenues of $217 million [2] - Employers Holdings shares have underperformed the market, losing about 9.9% since the beginning of the year, while the S&P 500 gained 8.3% [3] 分组2 - The current consensus EPS estimate for the coming quarter is $0.71 on revenues of $216.87 million, and for the current fiscal year, it is $3.50 on revenues of $852.89 million [7] - The Zacks Industry Rank for Insurance - Accident and Health is currently in the bottom 29% of over 250 Zacks industries, indicating potential challenges for stock performance [8] 分组3 - The estimate revisions trend for Employers Holdings was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market in the near future [6]