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Employers Holdings' Stock Up 4.2% Since Q1 Earnings Beat Estimates
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Shares of Employers Holdings, Inc. (EIG - Free Report) have risen 4.2% since the company reported first-quarter 2025 results on May 1. The better-than-expected quarterly earnings benefited from the retention of renewal business, an increased record number of policies in force and improved investment returns. However, the upside was partly offset by a slight decline in net premiums, as well as elevated losses and loss adjustment expenses that pressured profitability.
EIG reported first-quarter adjusted earnings per share (EPS) of 87 cents, which beat the Zacks Consensus Estimate by 26.1%. The bottom line increased 29.9% year over year.
Operating revenues were $202.6 million, which declined 9.2% year over year. The top line missed the consensus mark by 6.6%.
Employers Holdings Inc Price, Consensus and EPS Surprise
Gross premiums written rose 1% year over year to $212.1 million due to strong retention in the renewal business. Net premiums written of $210.3 million increased 1% year over year.
Nevertheless, net premiums earned decreased 1% year over year to $183 million and fell short of the Zacks Consensus Estimate of $192.4 million.
Net investment income of $32.1 million grew 20% year over year due to improved investment returns in limited partnerships. The metric surpassed the consensus mark of $27.3 million.
Total expenses decreased 0.6% year over year to $186.7 million. Losses and loss adjustment expenses escalated 4% year over year due to higher current accident year losses and loss adjustment expense provision. Commission expenses declined 8% year over year.
EIG posted a pre-tax income of $15.9 million, which decreased 55% year over year.
Policies in force were at a record level of 133,121 at the first-quarter end. The figure increased 4% year over year.
The GAAP combined ratio was 102% during the quarter, which deteriorated 40 basis points (bps) year over year but came lower than the Zacks Consensus Estimate of 102.7%. The underwriting expense ratio improved 160 bps year over year to 23.4%. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)
EIG’s Financial Update (as of March 31, 2025)
Employers Holdings exited the first quarter with investments, cash and cash equivalents of $2.5 billion, which jumped 0.2% from the 2024-end level.
Total assets of $3.6 billion rose from $3.5 billion at 2024-end.
Total stockholders’ equity of $1.1 billion increased 0.7% from the 2024-end level.
Adjusted book value per share was $50.75 at the quarter-end, which increased from $50.71 at 2024-end.
Employers Holdings’ Capital Deployment Update
Employers Holdings bought back shares worth $20.2 million in the first quarter of 2025. In April, it repurchased an additional $8.2 million worth of shares. On April 30, 2025, management authorized a new $125 million share repurchase program.
The company also paid out dividends worth $7.5 million in the first quarter of 2025.
Management announced a quarterly dividend of 32 cents per share for the second quarter of 2025, representing a 7% increase, which will be paid on May 28, 2025 to shareholders as of May 14.
The Zacks Consensus Estimate for Horace Mann Educators’ current-year earnings of $4.01 per share has witnessed one upward revision in the past seven days against none in the opposite direction. Horace Mann Educators beat earnings estimates in three of the trailing four quarters and met once, with the average surprise being 24.1%. The consensus estimate for current-year revenues is pegged at $1.7 billion, implying 6.6% year-over-year growth.
The Zacks Consensus Estimate for EverQuote’s current-year earnings is pegged at $1.17 per share. EverQuote beat earnings estimates in each of the trailing four quarters, with the average surprise being 122.6%. The consensus estimate for current-year revenues is pegged at $640.3 million, suggesting 28% year-over-year growth.
The Zacks Consensus Estimate for Heritage Insurance’s current-year earnings of $3.25 per share has witnessed two upward revisions in the past 30 days against no movement in the opposite direction. Heritage Insurance beat earnings estimates in each of the trailing four quarters, with the average surprise being 363.2%. The consensus estimate for current-year revenues is pegged at $854.9 million, calling for 4.6% year-over-year growth.
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Employers Holdings' Stock Up 4.2% Since Q1 Earnings Beat Estimates
Shares of Employers Holdings, Inc. (EIG - Free Report) have risen 4.2% since the company reported first-quarter 2025 results on May 1. The better-than-expected quarterly earnings benefited from the retention of renewal business, an increased record number of policies in force and improved investment returns. However, the upside was partly offset by a slight decline in net premiums, as well as elevated losses and loss adjustment expenses that pressured profitability.
EIG reported first-quarter adjusted earnings per share (EPS) of 87 cents, which beat the Zacks Consensus Estimate by 26.1%. The bottom line increased 29.9% year over year.
Operating revenues were $202.6 million, which declined 9.2% year over year. The top line missed the consensus mark by 6.6%.
Employers Holdings Inc Price, Consensus and EPS Surprise
Employers Holdings Inc price-consensus-eps-surprise-chart | Employers Holdings Inc Quote
EIG’s Q1 Updates
Gross premiums written rose 1% year over year to $212.1 million due to strong retention in the renewal business. Net premiums written of $210.3 million increased 1% year over year.
Nevertheless, net premiums earned decreased 1% year over year to $183 million and fell short of the Zacks Consensus Estimate of $192.4 million.
Net investment income of $32.1 million grew 20% year over year due to improved investment returns in limited partnerships. The metric surpassed the consensus mark of $27.3 million.
Total expenses decreased 0.6% year over year to $186.7 million. Losses and loss adjustment expenses escalated 4% year over year due to higher current accident year losses and loss adjustment expense provision. Commission expenses declined 8% year over year.
EIG posted a pre-tax income of $15.9 million, which decreased 55% year over year.
Policies in force were at a record level of 133,121 at the first-quarter end. The figure increased 4% year over year.
The GAAP combined ratio was 102% during the quarter, which deteriorated 40 basis points (bps) year over year but came lower than the Zacks Consensus Estimate of 102.7%. The underwriting expense ratio improved 160 bps year over year to 23.4%. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)
EIG’s Financial Update (as of March 31, 2025)
Employers Holdings exited the first quarter with investments, cash and cash equivalents of $2.5 billion, which jumped 0.2% from the 2024-end level.
Total assets of $3.6 billion rose from $3.5 billion at 2024-end.
Total stockholders’ equity of $1.1 billion increased 0.7% from the 2024-end level.
Adjusted book value per share was $50.75 at the quarter-end, which increased from $50.71 at 2024-end.
Employers Holdings’ Capital Deployment Update
Employers Holdings bought back shares worth $20.2 million in the first quarter of 2025. In April, it repurchased an additional $8.2 million worth of shares. On April 30, 2025, management authorized a new $125 million share repurchase program.
The company also paid out dividends worth $7.5 million in the first quarter of 2025.
Management announced a quarterly dividend of 32 cents per share for the second quarter of 2025, representing a 7% increase, which will be paid on May 28, 2025 to shareholders as of May 14.
EIG’s Zacks Rank & Key Picks
EIG currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader Finance space are Horace Mann Educators Corp (HMN - Free Report) , EverQuote Inc. (EVER - Free Report) and Heritage Insurance Holdings Inc. (HRTG - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Horace Mann Educators’ current-year earnings of $4.01 per share has witnessed one upward revision in the past seven days against none in the opposite direction. Horace Mann Educators beat earnings estimates in three of the trailing four quarters and met once, with the average surprise being 24.1%. The consensus estimate for current-year revenues is pegged at $1.7 billion, implying 6.6% year-over-year growth.
The Zacks Consensus Estimate for EverQuote’s current-year earnings is pegged at $1.17 per share. EverQuote beat earnings estimates in each of the trailing four quarters, with the average surprise being 122.6%. The consensus estimate for current-year revenues is pegged at $640.3 million, suggesting 28% year-over-year growth.
The Zacks Consensus Estimate for Heritage Insurance’s current-year earnings of $3.25 per share has witnessed two upward revisions in the past 30 days against no movement in the opposite direction. Heritage Insurance beat earnings estimates in each of the trailing four quarters, with the average surprise being 363.2%. The consensus estimate for current-year revenues is pegged at $854.9 million, calling for 4.6% year-over-year growth.