Employers Holdings Inc · NYSE:EIG
Employers — Q1 2025 Earnings Presentation
27 slides from Employers's earnings presentation, May 2, 2025
Slide 1: Investor Presentation First Quarter 2025
INVESTOR PRESENTATION First Quarter 2025
Slide 2: Forward-Looking Statements
Forward-Looking Statements In this presentation, the Company and its management discuss and make statements based on currently available information regarding their intentions, beliefs, current expectations, and projections of, among other things, the Company's future performance, economic or market
Slide 3: Highlights
Highlights Continued Focus on Profitability in 1Q25; in 2Q25, Employers raised its dividend by 7% to $0.32 per share and announced new $125 mm share repurchase authorization Slight Increase in Adjusted Net Income grew Excellent Capital Technology-Driven Premiums to $21 mm, a 24% increase Adequacy an
Slide 4: Business Overview
Business Overview 4 I E M P L O Y E R S . C O M I C O N F I D E N T I A L
Slide 5: Who We Are
Who We Are EMPLOYERS® is a mono-line writer of workers’ compensation Unique Growth Drivers insurance focused on low-to-medium hazard small business risks Specific to EMPLOYERS Transforming how small Over 100-year operating Unique, long-standing strategic businesses and insurance agents history as a
Slide 6: What We Write
What We Write Top Ten Employer Restaurants and Other Eating Places 17% Classifications Traveler Accommodation 6% Building Finishing Contractors 5% Services to Buildings and Dwellings 4% Building Equipment Contractors 4% Real Estate Management 3% Schools 3% Architectural, Engineering and Related Serv
Slide 7: Markets and Distribution
Markets and Distribution $212 mm 1Q25 Gross Written Premiums Low-to-Medium Hazard Focus Shown as a percentage of Specialty 3/31/25 in-force premium Agents, Distribution Partners and 90% 10% DTC Hazard Groups Hazard Groups 35% A-E (lower risk) F-G (higher risk) Traditional Insurance Agents 65% $771 m
Slide 8: Markets and Distribution Continued
Markets and Distribution Continued Employers’ Traditional Insurance Specialty Agents and DTC proprietary Agents and Brokers Distribution Partners Direct-to-customer technology allows 65% 34 % 1% of in-force premium of in-force premium of in-force premium at 12/31/24 at 12/31/24 at 12/31/24 us to und
Slide 9: Market Share
Market Share Property and Casualty Insurance Industry 2024 DIRECT DIRECT PREMIUMS PREMIUMS MARKET RANK GROUP/COMPANY NAME WRITTEN EARNED SHARE % We are the 19th largest 1 TRAVELERS GRP 3,833,368,542 3,838,155,359 6.6 2 HARTFORD FIRE & CAS GRP 3,705,411,049 3,692,588,993 6.5 Workers’ Compensation wri
Slide 10: Accolades
Accolades In September 2024, Employers received the #3 spot on Newsweek’s 2024 list of Most Trustworthy Companies in America and the #7 spot in that publication’s 2024 ranking of Most Trustworthy Companies in the World. Each of these We were recently applauded by rankings were within the lists’ insu
Slide 11: Growth in Premium and Policy Count
Growth in Premium and Policy Count Over the past five years we have grown our Gross Written Premiums by 34%. Gross Written Premiums can, at times, be heavily Gross Written and In-Force Premiums* influenced by final audit premium adjustments, $850 through which we recognize the final audit $800 Post-
Slide 12: Current Initiatives and Strategy
Current Initiatives and Strategy 12 I E M P L O Y E R S . C O M I C O N F I D E N T I A L
Slide 13: Deliberate Appetite Expansion
Deliberate Appetite Expansion Beginning in 2021, we extended our reach by applying our established underwriting approach to new industries including plumbing, painting, and landscaping. This careful expansion has Background provided meaningful and complementary growth for Employers, as we have been
Slide 14: North Star of Ease
North Star of Ease KEY INVESTMENT STREAMS Our strategic North Star of Ease initiative serves Distribution as a guide to making our internal operations more Our new agency partnership program better meets the needs of our highest-performing agency partners and seamless and scalable and our external s
Slide 15: Artificial Intelligence Vision includes an internal GPT
Artificial Intelligence Vision includes an internal GPT Our goal is to be an AI-empowered organization that leverages advanced technology responsibly and effectively to optimize decision-making, enhance customer experiences, and remain a leader in the insurance industry We take AI seriously and know
Slide 16: Strategic Diversification
Strategic Diversification By in-force premium While our large California presence provides Employers with meaningful insight and scale, our growth outside of CA has provided important geographic diversification All Other 29% All Other CA 28% 46% CA 60% NJ 4% 4% GA GA 5% 4% IL 3% IL 4% NY FL 5% FL De
Slide 17: Underwriting Portfolio by Hazard Group
Underwriting Portfolio by Hazard Group Our appetite expansion effort continues to be an important contributor to our profitability and growth in premium. Our loss ratios in these new segments continue to be in-line or better than our traditional segments and We employ a thoughtful and conservative u
Slide 18: Financial Performance
Financial Performance 18 I E M P L O Y E R S . C O M I C O N F I D E N T I A L
Slide 19: First Quarter 2025 Highlights
First Strong Insurance Strong Balance Sheet and Quarter Financial Results Operations Capital Mgmt. 2025 Highlights Adjusted Net Income Gross Premiums Written Total Investments and Cash $21.3 mm $212.1 mm or $0.87/share +1% from 1Q24 $2.5 bn 1Q25 Share Net Investment Net Premiums Earned Repurchases I
Slide 20: Five-Year Annual Financial Performance
Five-Year Annual Financial Performance Adjusted EPS (Diluted) Adjusted ROE $3.83 $3.73 8.5% 7.6% 7.7% $3.10 $2.93 6.6% $2.37 5.5% 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Combined Ratio excluding LPT Adjusted Book Value per Share $50.71 93.4% 98.1% 96.0% 98.6% 94.0% 27.9% 24.8% 24.9% 23.5%
Slide 21: Financial Strength
Financial Strength 21 I E M P L O Y E R S . C O M I C O N F I D E N T I A L
Slide 22: Investment Portfolio
Investment Portfolio Consolidated $2.5 billion fair market value, including cash CLOs 1% + High quality (average credit quality of A+) + 1Q25 annualized total investment return of 7.7% All + Highly liquid ($973 million is unencumbered + Weighted average book yield of 4.5% Bank Other at the operating
Slide 23: History of Reserve Strength
History of Reserve Strength Net Calendar Year Reserve Development in Recent Prior Accident Years $ millions, excludes involuntary business $450 $400 $400 $382 Reserve estimates are presented to $350 $337 the Audit Committee of our Board of $305 Directors each quarter $300 $267 $250 Reserves are revi
Slide 24: Strong and Transparent Balance Sheet
Strong and Transparent Balance Sheet • “A” financial strength rating from AM Best • Favorable reserving track record Our balance sheet is • No debt and important levels of excess capital strong and is unburdened by either • Low premium leverage and reinsurance reliance legacy issues or a significant
Slide 25: Key Takeaways
Key Takeaways From our 1Q25 Earnings Release dated + Excellent market reputation and optimally positioned as a Workers’ Compensation specialist, May 1, 2025: + Proprietary technology allows Employers to effectively and efficiently Chief Executive Officer Katherine underwrite: Antonello commented: “W
Slide 26: Contact Information
Contact Information Investor Relations Contact: Media Contact: Michael Pedraja Kimberly Eye Executive Vice President, Vice President, Chief Financial Officer Marketing & Communications EMPLOYERS HOLDINGS, INC. mpedraja@employers.com keye@employers.com 5340 Kietzke Lane, Suite 202 Reno, Nevada 89511
Slide 27: Additional Financial Information
Additional Financial Information Reconciliation of Non-GAAP Financial Measures to GAAP Within this investor presentation we present various financial measures, some of which are "non-GAAP financial measures" as defined in Regulation G pursuant to Section 401 of the Sarbanes-Oxley Act of 2002. A desc