Employers (US:EIG) Globenewswire·2025-07-30 20:15Core Viewpoint - Employers Holdings, Inc. reported a mixed financial performance for the second quarter of 2025, with a slight decrease in gross premiums written but an increase in net premiums earned, reflecting a focus on profitability and improved risk selection [3][7]. Financial Highlights - Gross premiums written decreased by 2% from $207.9 million to $203.3 million [7][8]. - Net premiums earned increased by 6% from $187.8 million to $198.3 million [7][8]. - Net income per diluted share decreased by 2% from $1.25 to $1.23, while adjusted net income per diluted share saw a significant drop of 56% from $1.10 to $0.48 [7][8]. - Loss and loss adjustment expenses ratio increased from 57.9% to 70.7% [7][9]. - The company declared a regular quarterly dividend of $0.32 per share, reflecting confidence in future operations [6][15]. Management Commentary - The CEO noted that the decrease in gross premiums was due to a decline in the middle market, while smaller policy sizes showed growth [3]. - The company has increased the loss and LAE ratio for 2025 due to rising cumulative trauma claims in California, indicating a proactive approach to risk management [4]. Expense Ratios - The commission expense ratio improved from 13.9% to 13.2%, attributed to lower new business premiums [5][10]. - The underwriting expense ratio decreased from 22.4% to 21.7%, despite a slight increase in underwriting expenses [5][11]. Investment Performance - Net investment income increased by 1% from $26.9 million to $27.1 million, while net realized and unrealized gains on investments surged from $2.2 million to $20.9 million [12][7]. Shareholder Returns - The company returned $31.4 million to shareholders through share repurchases and dividends during the quarter [7][16]. - A total of 482,000 shares were repurchased at an average price of $48.08 per share [16].