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Employers Holdings trims loss ratio as premium pullback stabilizes in Q2
Gross premiums written dropped 19.6% year over year to $163.4 million, while Employers reported a lower LAE ratio of 70.2% and improved its Q2 combined ratio to 105.8%.
Employers Holdings said it improved its Q2 2026 loss and underwriting metrics as a premium pullback stabilized. The company reported a loss and LAE ratio of 70.2%, down from 70.7% a year earlier, and it posted zero prior year reserve development on its voluntary workers' compensation book, consistent with underwriting discipline it has followed since a steep earnings collapse in 2025, according to Insurance Business.
The insurer’s premium base shrank, but results reflected pricing and underwriting actions started in 2025 to prioritize profitability and focus on its core small business segment. Gross premiums written fell 19.6% to $163.4 million and net premiums earned declined 12% to $174.1 million. The GAAP combined ratio was 105.8% versus 105.6% in the prior year quarter, and excluding the loss portfolio transfer the combined ratio was 106.7% compared with 106.4% last year.
Employers reported net income declined 2% to $29.1 million from $29.7 million, while diluted earnings per share increased 29% to $1.59 from $1.23. The EPS growth was driven by a smaller diluted share count after the company executed an active share repurchase program linked to its recapitalization plan.
As part of that plan, Employers issued $125 million in senior debt, with proceeds used to support share repurchases alongside operating cash flow. Adjusted diluted EPS rose 46% to $0.70 from $0.48, and net investment income was $27.4 million, up slightly from $27.1 million, the outlet added.