Employers Holdings Reports $12.8 Million Net Income in Q1 2025, Down from $28.3 Million

Employers Holdings, Inc. reported a net income of $12.8 million for the first quarter of 2025, a significant decrease from $28.3 million in the same period of 2024. The company's total revenues for the quarter were $202.6 million, down from $223.1 million year-over-year. This decline was primarily attributed to a 1.0% decrease in net premiums earned, which totaled $183.0 million, despite a slight increase in gross premiums written, which rose to $212.1 million from $210.9 million. The company also experienced a notable increase in net investment income, which rose by 19.8% to $32.1 million, but this was offset by net realized and unrealized losses on investments amounting to $(12.8) million, compared to gains of $11.4 million in the prior year.

In terms of operational metrics, Employers Holdings reported a combined ratio of 102.0% for the first quarter of 2025, slightly higher than the 101.6% reported in the same quarter of 2024. The increase in the combined ratio was driven by a 3.6% rise in losses and loss adjustment expenses (LAE), which reached $120.7 million. The company also reported a decrease in commission expenses by 8.2% to $23.0 million, and a reduction in underwriting expenses by 7.2% to $42.9 million. The total number of policies in-force increased to 133,121, up from 130,767 at the end of 2024, indicating a continued focus on customer retention and growth in the small to mid-sized business segment.

Strategically, Employers Holdings continues to focus on disciplined underwriting and claims management, leveraging technology to enhance operational efficiency. The company has made significant investments in its information technology infrastructure, which it believes will help reduce operating costs and improve service delivery. Additionally, the company is actively pursuing geographic expansion and diversification of its risk exposure across various economic sectors.

The company’s financial position remains strong, with total stockholders' equity reported at $1,075.7 million as of March 31, 2025. Employers Holdings also maintained a robust liquidity position, with cash and cash equivalents totaling $100.6 million, up from $68.5 million at the end of 2024. The company has entered into a $25 million unsecured revolving credit facility to support its working capital needs, with no borrowings under this facility as of the end of the quarter. Looking ahead, Employers Holdings anticipates continued challenges in the market, including inflationary pressures and competitive pricing, but remains committed to its strategic initiatives aimed at long-term profitability and growth.