Employers Holdings' Stock Up 4.2% Since Q1 Earnings Beat Estimates

Core Viewpoint - Employers Holdings, Inc. (EIG) reported better-than-expected first-quarter 2025 results, with a 4.2% increase in shares following the earnings announcement, driven by strong retention in renewal business and improved investment returns, although offset by a slight decline in net premiums and increased losses [1][2]. Financial Performance - Adjusted earnings per share (EPS) for Q1 2025 were 87 cents, exceeding the Zacks Consensus Estimate by 26.1% and reflecting a year-over-year increase of 29.9% [2]. - Operating revenues totaled $202.6 million, down 9.2% year over year, missing the consensus estimate by 6.6% [2]. - Gross premiums written rose 1% year over year to $212.1 million, while net premiums written also increased by 1% to $210.3 million [3]. - Net premiums earned decreased by 1% year over year to $183 million, falling short of the Zacks Consensus Estimate of $192.4 million [3]. - Net investment income grew 20% year over year to $32.1 million, surpassing the consensus mark of $27.3 million [4]. - Total expenses decreased by 0.6% year over year to $186.7 million, but losses and loss adjustment expenses increased by 4% due to higher current accident year losses [4]. Operational Metrics - Pre-tax income was reported at $15.9 million, a decrease of 55% year over year [5]. - The number of policies in force reached a record level of 133,121, marking a 4% increase year over year [5]. - The GAAP combined ratio was 102%, which deteriorated by 40 basis points year over year but was better than the Zacks Consensus Estimate of 102.7% [6]. Capital Deployment - Employers Holdings repurchased shares worth $20.2 million in Q1 2025 and an additional $8.2 million in April, with a new $125 million share repurchase program authorized on April 30, 2025 [8]. - Dividends paid in Q1 2025 amounted to $7.5 million, with a quarterly dividend of 32 cents per share announced for Q2 2025, representing a 7% increase [9]. Balance Sheet Highlights - As of March 31, 2025, the company had investments, cash, and cash equivalents of $2.5 billion, a 0.2% increase from the end of 2024 [6]. - Total assets rose to $3.6 billion from $3.5 billion at the end of 2024 [7]. - Total stockholders' equity increased by 0.7% to $1.1 billion, with adjusted book value per share rising to $50.75 from $50.71 at the end of 2024 [7].