Employers Holdings, Inc.
For the period ended Dec 31, 2025. Filed Feb 26, 2026.
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FY2025 · Filed Feb 26, 2026
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Item 15. Exhibits and Financial Statement Schedules
The following consolidated financial statements are filed in Item 8 of Part II of this report:
| Page | |
|---|---|
| Report of Independent Registered Public Accounting Firm | 51 |
| Consolidated Balance Sheets as of December 31, 2025 and 2024 | 53 |
| Consolidated Statements of Comprehensive Income (Loss) for each of the three years ended December 31, 2025, 2024, and 2023 | 55 |
| Consolidated Statements of Stockholders' Equity for each of the three years ended December 31, 2025, 2024, and 2023 | 56 |
| Consolidated Statements of Cash Flows for each of the three years ended December 31, 2025, 2024, and 2023 | 57 |
| Notes to Consolidated Financial Statements | 59 |
| Financial Statement Schedules: | |
| Schedule II. Condensed Financial Information of Registrant | 96 |
| Schedule VI. Supplemental Information Concerning Property-Casualty Insurance Operations | 100 |
| Pursuant to Rule 7-05 of Regulation S-X, Financial Statement Schedules I, III, IV, and V have been omitted as the information to be set forth therein is included in the notes to the audited consolidated financial statements. | |
Schedule II. Condensed Financial Information of Registrant
| Employers Holdings, Inc. | ||
|---|---|---|
| Condensed Balance Sheets | ||
| December 31, | ||
| 2025 | 2024 | |
| Assets · (in millions, except share data) | ||
| Investments: | ||
| Investment in subsidiaries | $1,022.3 | $1,006.7 |
| Fixed maturity securities at fair value (amortized cost $5.3 at December 31, 2025 and $23.8 at December 31, 2024) | 5.3 | 23.8 |
| Equity securities at fair value (cost $0.5 at December 31, 2025 and $26.2 at December 31, 2024) | 0.5 | 24.5 |
| Total investments | 1,028.1 | 1,055.0 |
| Cash and cash equivalents | 3.1 | 9.8 |
| Accrued investment income | 0.1 | 0.1 |
| Intercompany receivable | 0.4 | 0.3 |
| Federal income taxes receivable | 0.2 | 4.3 |
| Deferred income taxes, net | 1.0 | 2.0 |
| Other assets | 0.5 | 0.7 |
| Total assets | $1,033.4 | $1,072.2 |
| Liabilities and stockholders' equity | ||
| Accounts payable and accrued expenses | $7.0 | $2.8 |
| Intercompany payable | — | 0.7 |
| Income tax payable | 0.7 | — |
| Notes payable | 70.0 | — |
| Total liabilities | 77.7 | 3.5 |
| Stockholders' equity: | ||
| Common stock, $0.01 par value; 150,000,000 shares authorized; 58,276,637 and 58,184,861 shares issued and 20,342,135 and 24,556,706 shares outstanding at December 31, 2025 and 2024, respectively | 0.6 | 0.6 |
| Additional paid-in capital | 427.8 | 424.2 |
| Retained earnings | 1,453.8 | 1,472.9 |
| Accumulated other comprehensive loss, net of tax | 7.3 | (82.5) |
| Treasury stock, at cost (37,934,502 shares at December 31, 2025 and 33,628,155 shares at December 31, 2024) | (933.8) | (746.5) |
| Total stockholders' equity | 955.7 | 1,068.7 |
| Total liabilities and stockholders' equity | $1,033.4 | $1,072.2 |
| Employers Holdings, Inc. | |||
|---|---|---|---|
| Condensed Statements of Income | |||
| Years Ended December 31, | |||
| 2025 | 2024 | 2023 | |
| (in millions, except per share data) | |||
| Revenues | |||
| Net investment income | $2.1 | $3.1 | $3.7 |
| Net realized and unrealized gains on investments | 1.1 | 0.3 | 1.2 |
| Total revenues | 3.2 | 3.4 | 4.9 |
| Expenses | |||
| Underwriting expenses | 9.8 | 10.0 | 12.1 |
| Interest and financing expenses | 0.5 | 0.1 | 0.4 |
| Other non-recurring expenses | 0.2 | — | — |
| Total expenses | 10.5 | 10.1 | 12.5 |
| Loss before income taxes and equity in earnings of subsidiaries | (7.3) | (6.7) | (7.6) |
| Income tax benefit | (1.3) | (2.1) | (1.3) |
| Net loss before equity in earnings of subsidiaries | (6.0) | (4.6) | (6.3) |
| Equity in earnings of subsidiaries | 16.8 | 123.2 | 124.4 |
| Net income | $10.8 | $118.6 | $118.1 |
| Earnings per common share: | |||
| Basic | $0.46 | $4.73 | $4.48 |
| Diluted | $0.46 | $4.71 | $4.45 |
| Cash dividends declared per common share and eligible equity plan awards | $1.26 | $1.18 | $1.10 |
| Employers Holdings, Inc. | |||
|---|---|---|---|
| Condensed Statement of Cash Flows | |||
| Years Ended December 31, | |||
| 2025 | 2024 | 2023 | |
| (in millions) | |||
| Operating activities | |||
| Net income | $10.8 | $118.6 | $118.1 |
| Adjustments to reconcile net income to net cash provided by operating activities: | |||
| Equity in undistributed earnings of subsidiaries | 74.2 | (30.9) | (45.7) |
| Net realized and unrealized gains on investments | (1.1) | (0.3) | (1.2) |
| Stock-based compensation | 5.0 | 6.3 | 6.2 |
| Deferred income tax expense (benefit) | 1.1 | (0.1) | 1.1 |
| Change in operating assets and liabilities: | |||
| Accounts payable, accrued expenses, and other liabilities | (0.3) | (2.6) | (0.2) |
| Federal income taxes | 4.8 | (4.8) | (7.8) |
| Other assets | 0.1 | (0.3) | 0.5 |
| Intercompany payables and receivables | (0.8) | 0.8 | (0.9) |
| Net cash provided by operating activities | 93.8 | 86.7 | 70.1 |
| Investing activities | |||
| Purchases of fixed maturity securities | — | (26.7) | — |
| Purchases of short-term securities | — | — | (18.6) |
| Proceeds from sale of fixed maturity securities | 18.4 | 4.2 | 6.6 |
| Proceeds from sale of equity securities | 25.2 | — | 10.0 |
| Proceeds from maturities of short-term investments | — | — | 39.3 |
| Capital contributions to subsidiaries | — | — | (17.6) |
| Net cash provided by (used in) investing activities | 43.6 | (22.5) | 19.7 |
| Financing activities | |||
| Acquisition of common stock and excise tax payments | (182.8) | (42.6) | (76.1) |
| Cash transactions related to stock-based compensation | (1.4) | (1.8) | (1.0) |
| Dividends paid to stockholders | (29.9) | (30.3) | (29.7) |
| Borrowings from affiliate | 70.0 | — | — |
| Net cash used in financing activities | (144.1) | (74.7) | (106.8) |
| Net (decrease) increase in cash and cash equivalents | (6.7) | (10.5) | (17.0) |
| Cash and cash equivalents at the beginning of the period | 9.8 | 20.3 | 37.3 |
| Cash and cash equivalents at the end of the period | $3.1 | $9.8 | $20.3 |
Employers Holdings, Inc. and Subsidiaries
Notes to Condensed Financial Statements
December 31, 2025
- Basis of Presentation and Summary of Operations
Nature of Operations and Organization
Employers Holdings, Inc. (EHI) is a Nevada holding company. Through its wholly owned insurance subsidiaries, Employers Insurance Company of Nevada (EICN), Employers Compensation Insurance Company (ECIC), Employers Preferred Insurance Company (EPIC), Employers Assurance Company (EAC), and Cerity Insurance Company (CIC), EHI is engaged in the commercial property and casualty insurance industry, specializing in workers' compensation products and services. Unless otherwise indicated, all references to the "Company" refer to EHI, together with its subsidiaries.
EHI prepares its condensed financial statements in accordance with U.S. generally accepted accounting principles (GAAP), using the equity method. Under the equity method, the investment in subsidiary is stated at cost plus equity in earnings of its subsidiary. EHI receives dividends from its insurance subsidiaries in the form of cash and securities. The book value for these securities is stated at the fair market value at the date of transfer. These condensed financial statements should be read in conjunction with EHI's consolidated financial statements included elsewhere in this Annual Report on Form 10-K.
Use of Estimates and Assumptions
The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. As a result, actual results could differ from these estimates.
- Income Taxes
EHI files a consolidated federal income tax return with its subsidiaries and has a tax allocation agreement with its subsidiaries. The equity in the undistributed earnings of subsidiaries included in the accompanying condensed statements of income is net of income taxes.
- Loans from Affiliate
On November 18, 2025, EICN loaned EHI a principal amount of $35.0 million at a fixed rate of 3.84%, with a maturity date of November 17, 2028, pursuant to the Intercompany Loan Agreement by and between EHI and EICN dated November 13, 2025 (the Loan Agreement). On December 10, 2025, EICN loaned EHI a principal amount of $15.0 million at a fixed rate of 3.84%, with a maturity date of December 8, 2028, pursuant to the Loan Agreement. On December 22, 2025, EICN loaned EHI a principal amount of $20.0 million at a fixed rate of 3.70%, with a maturity date of December 22, 2028, pursuant to the Loan Agreement. This Loan Agreement was executed as part of the Company's recently announced recapitalization plan. Interest incurred and paid on this loan during the year ended December 31, 2025 was $0.2 million.
| Schedule VI. Supplemental Information Concerning Property - Casualty Insurance Operations | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Employers Holdings, Inc. and Subsidiaries | ||||||||||
| Consolidated Supplemental Information Concerning Property and Casualty Insurance Operations | ||||||||||
| YearEnded | DeferredPolicyAcquisitionCosts | Reserves ForUnpaidLosses AndLAE | UnearnedPremiums | NetPremiumsEarned | Net InvestmentIncome | Losses andLAE Relatedto CurrentYears | Losses andLAE Related to PriorYears (including LPT Amortization and Adj) | Amortizationof DeferredPolicyAcquisition Costs | Paid Losses And LAE (including LPT Amortization and Adj) | NetPremiumsWritten |
| (in millions) | ||||||||||
| Insurance Operations | ||||||||||
| 2025 | 57.1 | 1,805.8 | 391.9 | 761.9 | 116.7 | 548.1 | 33.6 | 123.2 | 558.2 | 750.1 |
| 2024 | 59.6 | 1,808.2 | 402.2 | 749.5 | 107.0 | 480.2 | (24.0) | 119.6 | 516.5 | 769.5 |
| 2023 | 55.6 | 1,884.5 | 379.7 | 721.9 | 106.5 | 457.8 | (52.1) | 113.8 | 464.9 | 760.6 |
Exhibits:
| ExhibitNo. · Description of Exhibit · Included Herewith · Incorporated by Reference Herein | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Form · File No. · Exhibit · Filing Date | ||||||||||
| 3.1 | Amended and Restated Articles of Incorporation of Employers Holdings, Inc. | 10-K | 001-33245 | 3.1 | February 28, 2019 | |||||
| 3.2 | Amended and Restated Bylaws of Employers Holdings, Inc. | 8-K | 001-33245 | 3.1 | May 22, 2023 | |||||
| 4.1 | Form of Common Stock Certificate | S-1/A | 333-139092 | 4.1 | January 18, 2007 | |||||
| 4.2 | Description of Capital Stock | 10-K | 001-33245 | 4.2 | February 20, 2020 | |||||
| 10.1 | Quota Share Reinsurance Agreement, dated as of June 30, 1999, between State Industrial Insurance System of Nevada, D.B.A.: Employers Insurance Company of Nevada and the various Reinsurers as identified by the Interests and Liabilities Agreements attached thereto(1) | S-1/A | 333-139092 | 10.1 | January 18, 2007 | |||||
| 10.2 | Producer Agreement, dated as of May 1, 2005, between Employers Compensation Insurance Company and Automatic Data Processing Insurance Agency, Inc.(1) | S-1/A | 333-139092 | 10.2 | January 18, 2007 | |||||
| 10.3 | Form of Letter of Credit and Reimbursement Agreement | 8-K | 001-33245 | 10.4 | March 15, 2018 | |||||
| 10.4 | Credit Agreement, dated as of May 28, 2024, by and among Employers Holdings, Inc., as Borrower, the lenders referred to therein, and Wells Fargo Bank, National Association, as Administrative Agent, Swingline Lender and Issuing Lender | 8-K | 001-33245 | 10.1 | May 29, 2024 | |||||
| 10.5 | FHLB Form of Advances and Security Agreement | 10-Q | 001-33245 | 10.7 | July 28, 2020 | |||||
| 10.6 | Amendment No. 4 to Irrevocable Standby Letter of Credit No. 2018-08 between EAC and FHLB, dated August 13, 2021 | 10-K | 001-33245 | 10.1 | February 24, 2022 | |||||
| 10.7 | Amendment No. 3 to Irrevocable Standby Letter of Credit No. 2018-09 between ECIC and FHLB, dated August 13, 2021 | 10-K | 001-33245 | 10.2 | February 24, 2022 | |||||
| 10.8 | Confirmation of Amendment No. 4 to Irrevocable Standby Letter of Credit No. 2018-10 between EPIC and FHLB, dated October 9, 2024 | 10-K | 001-33245 | 10.1 | February 28, 2025 | |||||
| *10.9 | Employers Holdings, Inc. Key Executive Change in Control and Severance Plan | 8-K | 001-33245 | 10.1 | August 3, 2021 | |||||
| *10.10 | Employers Holdings, Inc. Amended and Restated Equity and Incentive Plan effective as of April 1, 2020 | S-8 POS | 333-168563 | 10.2 | May 28, 2020 | |||||
| *10.11 | Employers Holdings, Inc. Equity and Incentive Plan Form of Stock Option Agreement | 10-Q | 001-33245 | 10.3 | April 30, 2015 | |||||
| *10.12 | Employers Holdings, Inc. Equity and Incentive Plan Form of Restricted Stock Unit Agreement for Non-Employee Directors | 10-Q | 001-33245 | 10.1 | August 7, 2009 | |||||
| *10.13 | Employers Holdings, Inc. Equity and Incentive Plan Form of Performance Share Agreement | 10-Q | 001-33245 | 10.1 | April 29, 2022 | |||||
| *10.14 | Employers Holdings, Inc. Equity and Incentive Plan Form of Restricted Stock Unit Agreement | 10-Q | 001-33245 | 10.2 | April 29, 2022 | |||||
| *10.15 | Employers Holdings, Inc. Equity and Incentive Plan Form of Performance Share Agreement | 10-Q | 001-33245 | 10.1 | April 28, 2023 | |||||
| *10.16 | Employers Holdings, Inc. Equity and Incentive Plan Form of Restricted Stock Unit Agreement | 10-Q | 001-33245 | 10.2 | April 28, 2023 | |||||
| *10.17 | Employers Holdings, Inc. Form of Annual Cash Bonus Program Award Agreement | 10-Q | 001-33245 | 10.1 | April 26, 2024 | |||||
| *10.18 | Offer of Employment Letter dated October 7, 2024 from Employers Holdings, Inc. to Michael A. Pedraja | 8-K | 001-33245 | 10.1 | October 9, 2024 | ||
| *10.19 | Employers Holdings, Inc. Equity and Incentive Plan Form of Performance Share Agreement | 10-Q | 001-33245 | 10.1 | May 2, 2025 | ||
| *10.20 | Employers Holdings, Inc. Equity and Incentive Plan Form of Restricted Stock Unit Agreement | 10-Q | 001-33245 | 10.2 | May 2, 2025 | ||
| *10.21 | Employers Holdings, Inc. Annual Cash Bonus Program | 10-Q | 001-33245 | 10.3 | May 2, 2025 | ||
| 19.1 | Insider Trading Policy | 10-K | 001-33245 | 19.1 | February 26, 2024 | ||
| 21.1 | Subsidiaries of Employers Holdings, Inc. | X | |||||
| 23.1 | Consent of Ernst & Young LLP, Independent Registered Public Accounting Firm | X | |||||
| 31.1 | Certification of Katherine H. Antonello Pursuant to Section 302 | X | |||||
| 31.2 | Certification of Michael A. Pedraja Pursuant to Section 302 | X | |||||
| 32.1 | Certification of Katherine H. Antonello Pursuant to Section 906 | X | |||||
| 32.2 | Certification of Michael A. Pedraja Pursuant to Section 906 | X | |||||
| 97.1 | Policy Relating to Recovery of Erroneously Awarded Compensation | 10-K | 001-33245 | 97.1 | February 26, 2024 | ||
| 101.INS | The following materials from Employers Holdings, Inc.'s Annual Report on Form 10-K for the year ended December 31, 2025, formatted in iXBRL (Inline extensible Business Reporting Language): (i) Consolidated Balance Sheets as of December 31, 2025 and December 31, 2025; (ii) Consolidated Statements of Income for the years ended December 31, 2025, 2024 and 2023 (iii) Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2025, 2024 and 2023; (iv) Consolidated Statements of Stockholders' Equity for the years ended December 31, 2025, 2024 and 2023; (v) Consolidated Statements of Cash Flows for the years ended December 31, 2025, 2024 and 2023; (vi) Notes to consolidated financial statements tagged in summary and detail; (vii) Schedule II - Condensed Financial Information of Registrant (Parent Only); and (viii) Supplemental Information Concerning Property-Casualty Insurance Operations. | X | |||||
| 101.SCH | XBRL Taxonomy Extension Schema Document | X | |||||
| 101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | X | |||||
| 101.DEF | XBRL Taxonomy Definition Linkbase Document | X | |||||
| 101.LAB | XBRL Taxonomy Extension Label Linkbase Document | X | |||||
| 101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | X | |||||
| 104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) | ||||||
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*Represents management contracts and compensatory plans or arrangements.
(1) Confidential treatment has been requested for certain confidential portions of this exhibit; these confidential portions have been omitted from this exhibit and filed separately with the Securities and Exchange Commission.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.