Employers Holdings, Inc.
For the period ended Mar 31, 2026. Filed May 1, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 1, 2026
EIG$47.30+0.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-10-31.
0001379041-25-000146
Item 2. Management’s Discussion and Analysis of Consolidated Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-01.
0001379041-26-000023
Item 2. Management’s Discussion and Analysis of Consolidated Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 145 previous paragraphs and 139 current paragraphs.
63 unchanged; 50 reworded; 25 added; 30 removed; 2 previous and 1 current paragraphs rearranged.
Tables are not compared: 8 previous and 9 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (25)
Current report
For excess workers’ compensation, our approach is to deliver a flexible, data-driven solution that goes beyond traditional excess coverage by incorporating value-added services. We believe these services including improved organizational performance and reduced long-term loss costs will serve as a key competitive advantage in the self-insured market, differentiating us from carriers that offer coverage alone.
Current report
•Gross premiums written decreased 14.8%;
Current report
•Net premiums earned decreased 1.1%;
Current report
•Net investment income decreased 11.8%;
Current report
•Losses and LAE increased 7.0%;
Current report
•Commission expense increased 3.0%;
Current report
•Underwriting expenses decreased 4.7%; and
Current report
•Underwriting loss of $12.8 million compared to $3.6 million.
Current report
Three Months Ended March 31, 2026
Current report
Our 2026 underwriting results reflect lower net premiums earned and higher losses and LAE expenses, combined with a slight increase in commission expense, partially offset by a reduction in underwriting expenses. Our investment results were impacted by lower returns from our investments in private equity limited partnerships and net realized and unrealized losses on investments.
Current report
Three Months Ended March 31, 2025
Current report
Our 2025 underwriting results reflect lower net premiums earned and higher losses and LAE expenses offset by reductions in commission and underwriting expenses. Our investment results benefited from strong net investment income partially offset by net realized and unrealized losses.
Current report
Net premiums earned were $180.9 million for the three months ended March 31, 2026, compared to $183.0 million for the corresponding period of 2025.
Current report
Net investment income decreased 11.8% during the three months ended March 31, 2026, compared to the same period of 2025. The decrease for the three months ended March 31, 2026 was primarily attributable to reduced distributions from our investments in private equity limited partnerships, which were elevated in the prior period, partially offset by higher yields on fixed maturity securities resulting from our investment rebalancing activity in 2025.
Current report
Other Income
Current report
Interest and financing expenses include fees and interest associated with borrowings under the credit facility and advances and other credit arrangements with the Federal Home Loan Bank of San Francisco (FHLB).
Current report
Interest and financing expenses were $1.1 million for the three months ended March 31, 2026, compared to $0.1 million for the corresponding period of 2025. The increase for the three months ended March 31, 2026, resulted primarily from interest expense associated with our various advances with the FHLB.
Current report
Income Tax Expense
Current report
In November 2025, EHI entered into two three-year intercompany loan agreements with its insurance subsidiaries: one with EICN (the "EICN Agreement") and one jointly with EAC, ECIC, EPIC, and CIC (the "Omnibus Agreement"). Together, the agreements provide approximately $200.0 million of lending capacity, with individual advances bearing interest at the prevailing rate published by the FHLB for advances of comparable duration. As of March 31, 2026, $140.0 million is outstanding under these intercompany loan agreements.
Current report
On February 17, 2026, EHI borrowed $20.0 million under the Credit Agreement as part of the Company’s recapitalization plan. The advance bears interest at a rate of 5.50% based on the three-month Adjusted Term SOFR, with a reset date of May 18, 2026. As of March 31, 2026, $20.0 million was outstanding under the Credit Agreement. The outstanding balance is classified as long-term debt as the Credit Agreement does not expire until May 28, 2027. Advances can be repaid at any time without prepayment penalties or additional fees.
Current report
(1) On February 5, 2026, the terms of this advance were revised from an interest rate of 3.70% and a maturity date of December 21, 2026, to an interest rate of 3.79% and a maturity date of May 31, 2029.
Current report
These advances were assumed by EHI through the intercompany loan agreements as described above and executed as part of the Company’s recapitalization plan. Interest incurred and paid on these borrowings during the three months ended March 31, 2026 was $0.9 million.
Current report
Net cash provided by financing activities for the three months ended March 31, 2026 related primarily to FHLB advances and borrowings on the Credit Agreement offset by stockholder dividend payments and common stock repurchases.
Current report
Debt
Current report
We obtained advances from the FHLB totaling $105.0 million, bearing interest rates ranging from 3.74% to 3.87%, of which none are payable within 12 months. Additionally, we had $20.0 million outstanding under our Credit Agreement, of which none is payable within 12 months.
Removed paragraphs (30)
Previous report
We pursue profitable growth opportunities by focusing on disciplined underwriting and claims management, utilizing medical provider networks designed to produce superior medical and indemnity outcomes, establishing and maintaining strong, long-term relationships with traditional and specialty insurance agencies, developing important alternative distribution channels, and offering workers' compensation solutions directly to customers.
Previous report
•Gross premiums written increased 1.5% and decreased 0.1%;
Previous report
•Net premiums earned increased 2.9% and 2.5%;
Previous report
•Net investment income decreased 1.9% and increased 6.2%;
Previous report
•Losses and LAE increased 58.5% and 30.4%;
Previous report
•Commission expense decreased 10.9% and 6.2%;
Previous report
•Underwriting expenses decreased 9.6% and 4.8%;
Previous report
•Underwriting (loss) income of $(57.1) million and $(71.8) million compared to $(0.7) million and $7.4 million; and
Previous report
•Other non-recurring expenses of $1.1 million.
Previous report
Three and Nine Months Ended September 30, 2025
Previous report
Our 2025 underwriting results demonstrate moderate growth in net premiums earned, accompanied by reductions in both commission expense and underwriting expenses. These improvements were offset by higher losses and LAE compared to the same periods of 2024. Our 2025 investment results were strong, driven by solid net investment income and favorable net realized and unrealized gains.
Previous report
Three and Nine Months Ended September 30, 2024
Previous report
Our 2024 underwriting results reflect moderate increases in net premiums earned, compared to the same periods of 2023, due to higher new and renewal business premiums, as well as favorable prior year loss reserve development and lower underwriting expenses. Our 2024 investment results benefited from strong and steady net investment income and moderate net realized and unrealized gains.
Previous report
Net premiums earned were $192.1 million and $573.4 million for the three and nine months ended September 30, 2025, respectively, compared to $186.6 million and $559.3 million for the corresponding periods of 2024.
Previous report
The increase in our calendar year losses and LAE during the three months ended September 30, 2025, as compared to the same period of 2024, was primarily due to a higher current accident year loss and LAE estimate and reserve strengthening related to prior accident years. During the three months ended September 30, 2025, we increased the current accident year loss and LAE ratio to 72.0%, a three point increase from the year-to-date loss and LAE ratio of 69.0% at June 30, 2025. The increase was attributable to increased cumulative trauma (CT) claim frequency in California. Incurred losses and LAE for the three months ended September 30, 2025 include a cumulative adjustment of $11.4 million to year-to-date incurred losses and LAE at June 30, 2025 to reflect the three point increase to the current accident year loss and LAE ratio.
Previous report
During the three months ended September 30, 2025, we increased prior accident year loss and LAE estimates for our voluntary business by $38.2 million, with the reserve strengthening related primarily to accident years 2023 and 2024 being partially offset by net favorable development of loss and LAE estimates for accident years 2021 and prior. The increase in loss and LAE estimates for accident years 2023 and 2024 was due to the increased CT claim frequency in California and conservative modifications in our reserving approach across our complete book of business.
Previous report
Prior accident year adverse loss reserve development totaled $39.4 million during the nine months ended September 30, 2025, which included $38.9 million net adverse loss reserve development on our voluntary risk business and $0.5 million net adverse loss reserve development on our assigned risk business. Prior accident year favorable loss reserve development on our voluntary risk business totaled $9.3 million during the nine months ended September 30, 2024.
Previous report
We refined the presentation of certain expenses associated with our involuntary premium during 2024. This revision, which was immaterial, reduced both our third quarter 2024 and the first nine months of 2024 commission expense and commission expense ratio by approximately $0.6 million and $1.8 million and 0.3 percentage points, respectively, and increased our respective underwriting expenses and underwriting expense ratio by the same amounts. These revisions had no effect on our total expenses or net income.
Previous report
The reduction in our commission expense ratio for the three months ended September 30, 2025 was primarily related to an increase in the proportion of renewal premiums, which are typically subject to a lower commission rate, and lower agency incentive accruals. The reduction in our commission expense ratio for the nine months ended September 30, 2025 was primarily related to an increase in the proportion of renewal premiums, which are subject to a lower commission rate, a release of commissions payable associated with non-performing policies sent to collections, and lower agency incentive accruals.
Previous report
Net investment income decreased 1.9% and increased 6.2% during the three and nine months ended September 30, 2025, respectively, compared to the same periods of 2024. The decrease for the three months ended September 30, 2025 was due to lower invested balances, along with lower yields on cash equivalents and short-term investments throughout the quarter. The increase for the nine months ended September 30, 2025 was primarily the result of returns from our investments in private equity limited partnerships, along with higher book yields on our fixed maturity securities.
Previous report
Other Income (Loss)
Previous report
Interest and financing expenses include fees and interest associated with our credit facilities, finance lease interest, and other financing fees.
Previous report
Interest and financing expenses were $0.2 million and $0.3 million for the three and nine months ended September 30, 2025, respectively, compared to less than $0.1 million and $0.1 million for the corresponding periods of 2024.
Previous report
Other non-recurring expenses
Previous report
Other non-recurring expenses were $1.1 million for each of the three and nine months ended September 30, 2025. During the three months ended September 30, 2025, we recorded charges of $1.3 million of employee severance costs in connection with a third quarter 2025 reorganization, which was undertaken to better align our resources with our business objectives. These charges were offset by other miscellaneous one-time items.
Previous report
Income Tax (Benefit) Expense
Previous report
During the second quarter of 2025, EPIC made a $23.9 million dividend payment to EGI, which in turn distributed that amount to EHI. As a result of that dividend payment, EPIC cannot pay dividends for the remainder of 2025 without prior regulatory approval.
Previous report
During the second quarter of 2025, EAC made a $23.6 million dividend payment to EGI, which in turn distributed that amount to EHI. As a result of that dividend payment, EAC cannot pay dividends for the remainder of 2025 without prior regulatory approval.
Previous report
During the third quarter of 2025, CIC made a $5.9 million dividend payment to EGI, which in turn distributed that amount to EHI. As a result of that dividend payment, CIC cannot pay dividends for the remainder of 2025 without prior regulatory approval.
Previous report
EHI had no borrowings under the Credit Agreement during the nine months ended September 30, 2025.
Reworded paragraphs (50)
Previous wording
You should read the following discussion and analysis in conjunction with our consolidated financial statements and the related notes thereto included in Item 1 of Part I. Unless otherwise indicated, all references to "we," "us," "our," "the Company," or similar terms refer to EHI, together with its subsidiaries. In this Quarterly Report on Form 10-Q, 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 conditions, including current or future levels of inflation, potential implications of increased tariffs, changes in interest rates, labor market expectations, catastrophic events or geo-political conditions, legislative or regulatory actions or court decisions, business growth, retention rates, loss costs, claim trends and the impact of key business initiatives, future technologies and planned investments. Certain of these statements may constitute "forward-looking" statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and are often identified by words such as "may," "will," "could," "would," "should," "expect," "plan," "anticipate," "target," "project," "intend," "believe," "estimate," "predict," "potential," "pro forma," "seek," "likely," or "continue," or other comparable terminology and their negatives. The Company and its management caution investors that such forward-looking statements are not guarantees of future performance. Risks and uncertainties are inherent in the Company’s future performance. Factors that could cause the Company's actual results to differ materially from those indicated by such forward-looking statements include, among other things, those discussed or identified from time to time in the Company’s public filings with the SEC, including the risks detailed in the Company's Annual Reports on Form 10-K and in the Company's Quarterly Reports on Form 10-Q. Except as required by applicable securities laws, the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Current wording
You should read the following discussion and analysis in conjunction with our consolidated financial statements and the related notes thereto included in Item 1 of Part I. Unless otherwise indicated, all references to "we," "us," "our," "the Company," or similar terms refer to EHI, together with its subsidiaries. In this Quarterly Report on Form 10-Q, 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 conditions, including current or future levels of inflation, potential implications of increased tariffs, changes in interest rates, labor market expectations, catastrophic events or geo-political conditions, legislative or regulatory actions or court decisions, business growth, retention rates, loss costs, claim trends and the impact of key business initiatives, future technologies and planned investments. Certain of these statements may constitute "forward-looking" statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and are often identified by words such as "may," "will," "could," "would," "should," "expect," "plan," "anticipate," "target," "project," "intend," "believe," "estimate," "predict," "potential," "pro forma," "seek," "likely," or "continue," or other comparable terminology and their negatives. The Company and its management caution investors that such forward-looking statements are not guarantees of future performance. Risks and uncertainties are inherent in the Company’s future performance. Factors that could cause the Company's actual results to differ materially from those indicated by such forward-looking statements include, among other things, those discussed or identified from time to time in the Company’s public filings with the SEC, including the risks detailed in the Company's Annual Reports on Form 10-K and in the Company's subsequent Quarterly Reports on Form 10-Q. Except as required by applicable securities laws, the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Previous wording
We are a Nevada holding company. Through our insurance subsidiaries, we provide workers’ compensation insurance coverage to small and mid-sized businesses engaged in low-to-medium hazard industries. Workers’ compensation insurance is provided under a statutory system wherein most employers are required to provide coverage for their employees’ medical, disability, vocational rehabilitation, and/or death benefit costs for work-related injuries or illnesses. We provide workers’ compensation insurance throughout most of the United States, with a concentration in California, where 46% of our trailing twelve month gross written premiums are generated. Our revenues primarily consist of net premiums earned, net investment income, and net realized and unrealized gains and losses on investments.
Current wording
We are a Nevada holding company with insurance subsidiaries that are specialty providers of workers’ compensation insurance and related services. Workers’ compensation insurance is provided under a statutory system wherein most employers are required to provide coverage for their employees’ medical, disability, vocational rehabilitation, and/or death benefit costs for work-related injuries or illnesses.
Previous wording
The insurance industry is highly competitive, and there is significant competition in the national workers’ compensation industry that is based on price and quality of services. We compete with other specialty workers’ compensation carriers, state agencies, multi-line insurance companies, professional employer organizations, self-insurance funds, and state insurance pools.
Current wording
The insurance industry is highly competitive based on price and quality of services. We compete with other specialty workers’ compensation carriers, state agencies, multi-line insurance companies, professional employer organizations, self-insurance funds, and state insurance pools.
Previous wording
We target small to mid-sized businesses, as we believe that this market is traditionally characterized by higher profitability and stronger persistency when compared to the U.S. workers’ compensation insurance industry in general. We believe we can price our policies at levels that are competitive and profitable over the long-term given our expertise in underwriting and claims handling in this market segment. Our underwriting approach is to consistently underwrite small to mid-sized business accounts at appropriate and competitive prices without sacrificing long-term profitability and stability for short-term revenue growth.
Current wording
For guaranteed cost workers’ compensation, we believe we can price our policies at levels that are competitive and profitable over the long term given our expertise in underwriting and claims handling and our decades of data and experience. We target small to mid-sized businesses, as we believe this market is traditionally characterized by higher profitability and longer retention. Our distribution strategy consists of establishing and maintaining strong, long-term relationships with traditional and specialty insurance agencies, developing alternative distribution channels, and offering direct-to-consumer workers’ compensation through our website.
Previous wording
We believe we have a cost-effective and scalable information technology infrastructure that complements our geographic reach and business model. We continue to invest in technology to automate business processes and further develop our data analytic capabilities, which we believe will enable us to reduce our operating costs over the long-term and set a foundation for our future needs. We believe our technology saves our insurance agents and brokers, and our policyholders, considerable time and maintains our competitiveness in our target markets.
Current wording
We believe we have a cost-effective and scalable information technology infrastructure that complements our geographic reach and business model. We continue to invest in technology to automate business processes and further develop our data analytics and artificial intelligence capabilities, which we believe will enable us to reduce our operating costs over the long-term and support our future needs. We believe our technology is a strategic advantage that saves our distribution partners and policyholders considerable time and maintains our competitiveness in our target markets.
Previous wording
We continue to execute ongoing business initiatives focused on achieving process excellence and efficiency, as well as, delivering self-service options to policyholders, agents, and injured workers. Additionally, we are actively pursuing strategies to diversify our geographic and economic sector risk exposures, expand our risk appetite, and broaden our product offerings.
Current wording
We continue to execute ongoing business initiatives focused on achieving process excellence and efficiency, as well as delivering self-service options to policyholders, agents, and injured workers. We are also actively pursuing strategies to diversify our risk exposure across geographies and economic sectors, expand our risk appetite, and broaden our product offerings.
Previous wording
Our net (loss) income was $(8.3) million and $34.2 million for the three and nine months ended September 30, 2025, respectively, compared to $30.3 million and $90.3 million for the corresponding periods of 2024. The key factors that affected our financial performance during the three and nine months ended September 30, 2025, compared to the same periods of 2024, included:
Current wording
Our net income was $10.2 million for the three months ended March 31, 2026, compared to $12.8 million for the corresponding period of 2025. The key factors that affected our financial performance during the three months ended March 31, 2026, compared to the same period of 2025, included:
Previous wording
•Net realized and unrealized gains on investments of $21.2 million and $29.3 million compared to $10.9 million and $24.5 million;
Current wording
•Net realized and unrealized losses on investments of $1.7 million compared to $12.8 million;
Previous wording
Our consolidated financial results of operations for the three and nine months ended September 30, 2025 and 2024 are as follows:
Current wording
Our consolidated financial results of operations for the three months ended March 31, 2026 and 2025 are as follows:
Previous wording
Underwriting income or loss is determined by deducting losses and LAE, commission expense, and underwriting expenses from net premiums earned. Our underwriting results for the three and nine months ended September 30, 2025 and 2024 are as follows:
Current wording
Underwriting income or loss is determined by deducting losses and LAE, commission expense, and underwriting expenses from net premiums earned. Our underwriting results for the three months ended March 31, 2026 and 2025 are as follows:
Previous wording
Gross premiums written were $183.9 million and $599.3 million for the three and nine months ended September 30, 2025, respectively, compared to $181.2 million and $599.9 million for the corresponding periods of 2024. For the three months ended September 30, 2025, the increase in gross premiums written was largely driven by growth in renewal business premiums. For the nine months ended September 30, 2025, gross premiums written were flat, as increases in renewal business premiums were offset by decreases in new business premiums. Nonetheless, we closed another quarter with a record number of policies in-force. Total in-force policies at September 30, 2025 were 135,414 compared to 134,421 in-force policies at June 30, 2025, and 130,767 in-force policies at December 31, 2024.
Current wording
Gross premiums written were $180.8 million for the three months ended March 31, 2026, compared to $212.1 million for the corresponding period of 2025. For the three months ended March 31, 2026, the decrease in gross premiums written was largely driven by declines in both new and renewal business premiums driven predominately by our pricing and underwriting actions taken in 2025 to return to historical underwriting margins. Total in-force policies at March 31, 2026 were 130,321 compared to 133,121 in-force policies at March 31, 2025.
Previous wording
Net premiums written were $182.4 million and $594.2 million for the three and nine months ended September 30, 2025, respectively, compared to $179.6 million and $594.8 million for the corresponding periods of 2024. Reinsurance premiums ceded were $1.5 million and $5.1 million for the three and nine months ended September 30, 2025, respectively, compared to $1.6 million and $5.1 million for the corresponding periods of 2024.
Current wording
Net premiums written were $179.4 million for the three months ended March 31, 2026, compared to $210.3 million for the corresponding period of 2025. Reinsurance premiums ceded were $1.4 million for the three months ended March 31, 2026, compared to $1.8 million for the corresponding period of 2025.
Previous wording
Losses and LAE represents our largest expense item and includes claim payments made, amortization of the Deferred Gain, Contingent Commission adjustments, estimates for future claim payments and changes in those estimates for current and prior accident years, and costs associated with investigating, defending, and adjusting claims. The accuracy of our financial reporting depends in large part on determining our losses and LAE reserves, which are inherently uncertain as they are estimates of the ultimate cost of individual claims based on actuarial estimation techniques. We believe that our loss estimates are adequate; however, ultimate losses will not be known with any certainty for many years.
Current wording
Losses and LAE represents our largest expense item and includes claim payments made, amortization of the Deferred Gain, estimates for future claim payments and changes in those estimates for current and prior accident years, and costs associated with investigating, defending, and adjusting claims. The accuracy of our financial reporting depends in large part on determining our losses and LAE reserves, which are inherently uncertain as they are estimates of the ultimate cost of individual claims based on actuarial estimation techniques. We believe that our loss estimates are adequate; however, ultimate losses will not be known with any certainty for many years.
Previous wording
Prior accident year adverse loss reserve development during the three months ended September 30, 2025 included $0.4 million of net favorable loss reserve development on our assigned risk business. Prior accident year favorable loss reserve development on our assigned risk business totaled $0.1 million during the three months ended September 30, 2024.
Current wording
The increase in our calendar year losses and LAE during the three months ended March 31, 2026, as compared to the same period of 2025, was primarily due to a higher current accident year loss and LAE estimate due to increased cumulative trauma (CT) claim frequency in California. Prior accident year favorable loss reserve development totaled $0.1 million on our assigned risk business during the three months ended March 31, 2026. Prior accident year unfavorable loss reserve development totaled $1.3 million during the three months ended March 31, 2025, which included $0.6 million of net unfavorable loss reserve development on our assigned risk business.
Previous wording
Our commission expense ratio was 12.0% and 12.6% for the three and nine months ended September 30, 2025, respectively, compared to 13.8% for each of the corresponding periods of 2024, and our commission expense was $23.0 million and $72.1 million for the three and nine months ended September 30, 2025, respectively, compared to $25.8 million and $76.9 million for the corresponding periods of 2024. The decrease in our commission expense for the three and nine months ended September 30, 2025, was primarily related to lower agency incentive accruals, which are specific to individual contracts and vary with agency targets, and a release of commissions payable associated with non-performing policies sent to collections.
Current wording
Our commission expense ratio was 13.1% for the three months ended March 31, 2026, compared to 12.6% for the corresponding period of 2025, and our commission expense was $23.7 million for the three months ended March 31, 2026, compared to $23.0 million for the corresponding period of 2025. The increase in our commission expense ratio and our commission expense for the three months ended March 31, 2026 was primarily driven by a release of commissions payable associated with non-performing policies sent to collections totaling $1.4 million that was recognized in the first quarter of 2025.
Previous wording
Our underwriting expense ratio was 20.6% and 21.9% for the three and nine months ended September 30, 2025, respectively, compared to 23.5% and 23.6% for the corresponding periods of 2024, and our underwriting expenses were $39.6 million and $125.7 million for the three and nine months ended September 30, 2025, respectively, compared to $43.8 million and $132.0 million for the corresponding periods of 2024. The reduction in our underwriting expense ratio for the three and nine months ended September 30, 2025 was driven by our disciplined focus on expense reduction.
Current wording
Our underwriting expense ratio was 22.6% for the three months ended March 31, 2026, compared to 23.4% for the corresponding period of 2025, and our underwriting expenses were $40.9 million for the three months ended March 31, 2026, compared to $42.9 million for the corresponding period of 2025. The decrease in our underwriting expense ratio for the three months ended March 31, 2026 was driven by our disciplined focus on expense reduction and our underwriting decisions to reduce policyholder dividends.
Previous wording
The decrease in underwriting expenses for the nine months ended September 30, 2025, was primarily the result of decreases in (i) compensation-related expenses of $7.9 million, of which $5.3 million related to incentives; (ii) depreciation and amortization of $2.7 million; and (iii) policyholder dividends of $1.7 million. These decreases were partially offset by lower internal AO and other expense allocations of $7.4 million, each compared to the same period of 2024.
Current wording
The decrease in underwriting expenses for the three months ended March 31, 2026 was primarily the result of lower compensation-related expenses of $2.6 million and policyholder dividends of $1.7 million. These decreases were partially offset by lower internal AO and other expense allocations of $2.0 million, each compared to the same period of 2025.
Previous wording
Realized and unrealized gains and losses on our investments are reported separately from our net investment income. Realized gains and losses on investments include the gain or loss on a security at the time of sale compared to its original or adjusted cost (equity securities) or amortized cost (fixed maturity securities). Realized losses are also recognized for adverse changes in our CECL allowance or when securities are written down because of an other-than-temporary impairment. Changes in the fair value of equity securities and other invested assets are also included in Net realized and unrealized gains on investments on our Consolidated Statements of Comprehensive Income (Loss).
Current wording
Realized and unrealized gains and losses on our investments are reported separately from our net investment income. Realized gains and losses on investments include the gain or loss on a security at the time of sale compared to its original or adjusted cost (equity securities) or amortized cost (fixed maturity securities). Realized losses are also recognized for adverse changes in our CECL allowance or when securities are written down because of an other-than-temporary impairment. Changes in the fair value of equity securities and other invested assets are also included in Net realized and unrealized losses on investments on our Consolidated Statements of Comprehensive Income (Loss).
Previous wording
Net realized and unrealized gains on investments were $21.2 million and $29.3 million for the three and nine months ended September 30, 2025, respectively, compared to $10.9 million and $24.5 million for the corresponding periods of 2024. The Net realized and unrealized gains on investments for the three months ended September 30, 2025 and 2024 included $23.7 million and $12.8 million of net realized and unrealized gains on equity securities and other investments, respectively, partially offset by $2.5 million and $1.9 million of net realized losses on fixed maturity securities, respectively. The Net realized and unrealized gains on investments for the nine months ended September 30, 2025 and 2024 included $32.8 million and $30.8 million of net realized and unrealized gains on equity securities and other investments, respectively, partially offset by $3.5 million and $6.3 million of net realized losses on fixed maturity securities, respectively.
Current wording
Net realized and unrealized losses on investments were $1.7 million for the three months ended March 31, 2026, compared to $12.8 million for the corresponding period of 2025. The net realized and unrealized losses on investments for the three months ended March 31, 2026 and 2025 included $1.2 million and $11.9 million of net realized and unrealized losses on equity securities and other investments, respectively, and $0.5 million and $0.9 million of net realized losses on fixed maturity securities, respectively.
Previous wording
The Net investment gains and losses on our equity securities during the three and nine months ended September 30, 2024 were largely consistent with the performance of the U.S. equity markets. The net investment gains on our other investments during the nine months ended September 30, 2024 resulted primarily from an increase in the underlying value of the private equity limited partnership interests we own. The net realized investment losses on our fixed maturity securities during the three and nine months ended September 30, 2024 were primarily the result of sales associated with the rebalancing of our fixed maturity investment portfolio partially offset by a $0.5 million and $1.3 million decrease in our allowance for CECL, respectively.
Current wording
The net investment losses on our equity securities during the three months ended March 31, 2026 were largely consistent with the performance of the U.S. equity markets. The net investment gains on our other investments during the three months ended March 31, 2026 resulted from an increase in the underlying value of the private equity limited partnership interests we own. The net realized investment losses on our fixed maturity securities during the three months ended March 31, 2026 included a $0.3 million increase in our allowance for CECL.
Previous wording
The net investment gains on our equity securities during the three and nine months ended September 30, 2025 were largely consistent with the performance of the U.S. equity markets. The net investment gains on our other investments during the three months ended September 30, 2025 resulted primarily from an increase in the underlying value of the private equity limited partnership interests we own. The net investment gains on our other investments during the nine months ended September 30, 2025 resulted primarily from an increase in the underlying value of the private equity limited partnership interests we own partially offset by a reduction in net asset value due to distributed investment returns from those same investments. The net realized investment losses on our fixed maturity securities during the three and nine months ended September 30, 2025 were primarily the result of sales associated with the rebalancing of our fixed maturity investment portfolio partially offset in each period by a $0.5 million decrease in our allowance for CECL.
Current wording
The net investment losses on our equity securities during the three months ended March 31, 2025 were largely consistent with the performance of the U.S. equity markets. The net investment losses on our other investments during the three months ended March 31, 2025 included the returns from our investments in private equity limited partnerships. The net realized investment losses on our fixed maturity securities during the three months ended March 31, 2025 included a $0.3 million increase in our allowance for CECL.
Previous wording
Other income (loss) consists of net gains and losses on fixed assets, non-investment interest, and other miscellaneous income and expense items.
Current wording
Other income consists of net gains and losses on fixed assets, non-investment interest, and other miscellaneous income and expense items.
Previous wording
Income tax (benefit) expense was $(2.9) million and $7.4 million for the three and nine months ended September 30, 2025, respectively, compared to $6.4 million and $21.8 million for the corresponding periods of 2024. The effective tax rates were 25.9% and 17.8% for the three and nine months ended September 30, 2025, respectively, compared to 17.4% and 19.4% for the corresponding periods of 2024. The effective rates during each of the periods presented deviate favorably from the statutory rate of 21.0% due to, in part, income tax benefits and exclusions associated with tax-advantaged investment income, LPT adjustments, Deferred Gain amortization and related adjustments, and tax credits utilized.
Current wording
Income tax expense was $2.6 million for the three months ended March 31, 2026, compared to $3.1 million for the corresponding period of 2025. The effective tax rate was 20.3% for the three months ended March 31, 2026, compared to 19.5% for the corresponding period of 2025. The effective rates during each of the periods presented deviate favorably from the statutory rate of 21.0% due to, in part, income tax benefits and exclusions associated with tax-advantaged investment income, LPT adjustments, Deferred Gain amortization and related adjustments, and tax credits utilized.
Previous wording
EHI is a holding company and its ability to fund its operations is contingent upon its existing capital and the ability of its subsidiaries to pay it dividends. Any payments of dividends by our insurance subsidiaries are restricted by state insurance laws and regulations, including laws establishing minimum solvency and liquidity thresholds. EHI requires cash to pay dividends to its stockholders, repurchase its common stock, provide additional surplus to its insurance subsidiaries, and fund its operating expenses.
Current wording
EHI is a holding company and its ability to fund its operations is contingent upon its existing capital, the ability of its subsidiaries to pay it dividends, and the availability of loan capacity through its intercompany loan agreements with its insurance subsidiaries and credit facility. Any payments of dividends by our insurance subsidiaries are restricted by state insurance laws and regulations, including laws establishing minimum solvency and liquidity thresholds. EHI requires cash to pay dividends to its stockholders, repurchase its common stock, provide additional surplus to its insurance subsidiaries, and fund its operating expenses.
Previous wording
During the first quarter of 2025, EICN made a $14.0 million dividend payment to EGI, which in turn distributed that amount to EHI. As a result of that dividend payment, EICN cannot pay dividends for the remainder of 2025 without prior regulatory approval.
Current wording
During the first quarter of 2026, EICN made a $10.8 million dividend payment to EGI, which in turn distributed that amount to EHI. As a result of that dividend payment, EICN cannot pay dividends for the remainder of 2026 without prior regulatory approval.
Previous wording
During the first quarter of 2025, ECIC made a $23.5 million dividend payment to EGI, which in turn distributed that amount to EHI. As a result of that dividend payment, ECIC cannot pay dividends for the remainder of 2025 without prior regulatory approval.
Current wording
During the first quarter of 2026, ECIC made a $20.4 million dividend payment to EGI, which in turn distributed that amount to EHI. As a result of that dividend payment, ECIC cannot pay dividends for the remainder of 2026 without prior regulatory approval.
Previous wording
Total cash and investments at the holding company were $41.2 million at September 30, 2025, consisting of $9.4 million of cash and cash equivalents, $6.1 million of fixed maturity securities, and $25.7 million of equity securities.
Current wording
Total cash and investments at the holding company were $42.3 million at March 31, 2026, consisting of $37.9 million of cash and cash equivalents, $3.9 million of fixed maturity securities, and $0.5 million of equity securities.
Previous wording
On May 28, 2024, EHI entered into the Credit Agreement which provides for a $25.0 million, unsecured, three-year revolving credit facility and is guaranteed by EGI and CGI. Borrowings under the Credit Agreement may be used for working capital and general corporate purposes of EHI and its subsidiaries. Pursuant to the terms of the Credit Agreement, EHI has an option to request an increase of the credit available under the facility up to a maximum facility amount of $35.0 million, subject to the consent of the lender(s) and the satisfaction of certain conditions.
Current wording
On May 28, 2024, EHI entered into a Credit Agreement (the Credit Agreement) which provides for a $25.0 million, unsecured, three-year revolving credit facility and is guaranteed by EGI and CGI. Borrowings under the Credit Agreement may be used for working capital and general corporate purposes of EHI and its subsidiaries. Pursuant to the terms of the Credit Agreement, EHI has an option to request an increase of the credit available under the facility up to a maximum facility amount of $35.0 million, subject to the consent of the lender(s) and the satisfaction of certain conditions.
Previous wording
The interest rates applicable to loans under the Credit Agreement are generally based on, at EHI's option: (i) a base rate, defined as the higher of the Prime Rate, the Federal Funds Rate plus 1.25% and the Adjusted Term SOFR Rate for a one-month tenor plus 1.75%, or (ii) an Adjusted Term SOFR Rate, defined as the applicable Adjusted Term SOFR Rate plus 1.75%. Borrowings under the Credit Agreement may be used for working capital and general corporate purposes of EHI and its subsidiaries.
Current wording
The interest rates applicable to loans under the Credit Agreement are generally based on, at EHI's option: (i) a base rate, defined as the higher of the Prime Rate, the Federal Funds Rate plus 0.50% and the Adjusted Term SOFR for a one-month tenor plus 1.00%, or (ii) an Adjusted Term SOFR, defined as the applicable Adjusted Term SOFR plus 1.50%. Borrowings under the Credit Agreement may be used for working capital and general corporate purposes of EHI and its subsidiaries. Interest paid and/or fees incurred pursuant to the Credit Agreement, as applicable, was $0.1 million for each of the three months ended March 31, 2026 and 2025.
Previous wording
Total cash and investments held by our operating subsidiaries was $2,505.5 million at September 30, 2025, consisting of $157.6 million of cash and cash equivalents, and restricted cash, $1,973.4 million of fixed maturity securities, $264.6 million of equity securities, $104.3 million of other invested assets, and $5.6 million of short-term investments. Sources of immediate and unencumbered liquidity at our operating subsidiaries as of September 30, 2025 consisted of $157.4 million of cash and cash equivalents, $257.1 million of publicly traded equity securities whose proceeds are available within two business days, and $721.8 million of highly liquid fixed maturity securities whose proceeds are also available within two business days. We believe that our subsidiaries’ liquidity needs over the next 12 months and for the longer-term period thereafter will be met with cash from operations, investment income, and maturing investments.
Current wording
Total cash and investments held by our operating subsidiaries was $2,445.9 million at March 31, 2026, consisting of $115.4 million of cash and cash equivalents, and restricted cash, $2,029.8 million of fixed maturity securities, $190.3 million of equity securities, $95.8 million of other invested assets, and $14.6 million of short-term investments. Sources of immediate and unencumbered liquidity at our operating subsidiaries as of March 31, 2026 consisted of $115.2 million of cash and cash equivalents, $182.8 million of publicly traded equity securities whose proceeds are available within two business days, and $762.9 million of highly liquid fixed maturity securities whose proceeds are also available within two business days. We believe that our subsidiaries’ liquidity needs over the next 12 months and for the longer-term period thereafter will be met with cash from operations, investment income, and maturing investments.
Previous wording
Each of our insurance subsidiaries are members of the FHLB. Membership allows our subsidiaries access to collateralized advances, which may be used to support and enhance liquidity management. The amount of advances that may be taken is dependent on our statutory admitted assets on a per company basis.
Current wording
Each of our insurance subsidiaries are members of the FHLB. Membership allows our subsidiaries access to collateralized advances, which may be used to support and enhance liquidity management. The amount of advances that may be taken is dependent on our statutory admitted assets on a per company basis. The following table summarizes the terms and maturities of the advances outstanding at March 31, 2026.
Previous wording
Various state laws and regulations require us to hold investment securities or letters of credit on deposit with certain states in which we do business. Securities having a fair value of $575.9 million and $630.9 million were on deposit at September 30, 2025 and December 31, 2024, respectively. These laws and regulations govern both the amount and types of investment securities that are eligible for deposit. Additionally, standby letters of credit from the FHLB have been issued in lieu of $170.0 million of securities on deposit at both September 30, 2025 and December 31, 2024.
Current wording
Various state laws and regulations require us to hold investment securities or letters of credit on deposit with certain states in which we do business. Securities having a fair value of $587.0 million and $587.4 million were on deposit at March 31, 2026 and December 31, 2025, respectively. These laws and regulations govern both the amount and types of investment securities that are eligible for deposit. Additionally, standby letters of credit from the FHLB have been issued in lieu of $170.0 million of securities on deposit at both March 31, 2026 and December 31, 2025.
Previous wording
Certain reinsurance contracts require funds owned by us to be held in trust for the benefit of the ceding reinsurer to secure the outstanding liabilities we have assumed. The fair value of fixed maturity securities held in trust for the benefit of our ceding reinsurers was $3.1 million and $3.0 million at September 30, 2025 and December 31, 2024, respectively.
Current wording
Certain reinsurance contracts require funds owned by us to be held in trust for the benefit of the ceding reinsurer to secure the outstanding liabilities we have assumed. The fair value of fixed maturity securities held in trust for the benefit of our ceding reinsurers was $3.0 million and $3.1 million at March 31, 2026 and December 31, 2025, respectively.
Previous wording
Net cash provided by operating activities for the nine months ended September 30, 2025, included net premiums received of $584.3 million and investment income received of $85.2 million. The cash provided by these operating activities were partially offset by net claims payments of $417.4 million, underwriting expenses paid of $120.7 million, commissions paid of $74.4 million, other non-recurring expenses paid of $1.1 million, and federal income taxes paid of $11.6 million.
Current wording
Net cash provided by operating activities for the three months ended March 31, 2026 included net premiums received of $178.3 million and investment income received of $28.2 million. The cash provided by these operating activities was partially offset by net claims payments of $129.7 million, underwriting expenses paid of $46.7 million, commissions paid of $26.8 million and interest paid of $1.1 million.
Previous wording
Net cash provided by operating activities for the nine months ended September 30, 2024, included net premiums received of $575.4 million, investment income received of $79.8 million, and cash received of $14.6 million for the Contingent Commission. The cash provided by these operating activities were largely offset by net claims payments of $381.7 million, underwriting and general and administrative expenses paid of $124.1 million, commissions paid of $77.6 million, and federal income taxes paid of $23.0 million.
Current wording
Net cash provided by operating activities for the three months ended March 31, 2025 included net premiums received of $192.7 million, investment income received of $32.8 million, and federal tax refund received of $2.8 million. The cash provided by these operating activities was partially offset by net claims payments of $132.9 million, underwriting expenses paid of $54.1 million, and commissions paid of $26.6 million.
Previous wording
Net cash used in investing activities for the nine months ended September 30, 2024, related primarily to investment of premiums received, the receipt of Contingent Commission, and the reinvestment of funds from investment sales, maturities, redemptions, and interest income. The cash used in these investment activities was partially offset by investment sales, maturities, and redemptions whose proceeds were used to fund claims payments, underwriting expenses, stockholder dividend payments, and common stock repurchases.
Current wording
Net cash used in investing activities for the three months ended March 31, 2026 related primarily to investments of premiums received and the reinvestment of funds from investment sales, maturities, redemptions and interest income. The cash outflows used in these activities were partially offset by investment sales, maturities, and redemptions whose proceeds were used to fund claims payments, underwriting expenses, stockholder dividend payments, and common stock repurchases.
Previous wording
Net cash provided by investing activities for the nine months ended September 30, 2025, related primarily to returns from our investments, investment sales, maturities, and redemptions whose proceeds were used to fund claims payments, underwriting expenses, stockholder dividend payments, and common stock repurchases. Those investing cash inflows were partially offset by investments of premiums received and the reinvestment of funds from investment sales, maturities, redemptions and interest income.
Current wording
Net cash provided by investing activities for the three months ended March 31, 2025 related primarily to returns from our investments, investment sales, maturities, and redemptions whose proceeds were used to fund claims payments, underwriting expenses, stockholder dividend payments, and common stock repurchases. Those investing cash inflows were partially offset by investments of premiums received and the reinvestment of funds from investment sales, maturities, redemptions and interest income.
Previous wording
Net cash used in financing activities for each of the nine months ended September 30, 2025 and 2024, related primarily to stockholder dividend payments and common stock repurchases.
Current wording
Net cash used in financing activities for the three months ended March 31, 2025 related primarily to stockholder dividend payments and common stock repurchases.
Previous wording
We paid $22.8 million in dividends to our stockholders and eligible equity plan award holders for each of the nine months ended September 30, 2025 and 2024. The declaration and payment of future dividends to our stockholders, including any special dividends, will be at the discretion of our Board of Directors (Board) and will depend upon many factors including our financial position, capital requirements of our operating subsidiaries, legal and regulatory requirements, and any other factors that our Board deems relevant. On October 29, 2025, the Board declared a quarterly dividend per share of $0.32, which is payable November 26, 2025 to stockholders of record on November 12, 2025.
Current wording
We paid $6.3 million and $7.5 million in dividends to our stockholders and eligible equity plan award holders for the three months ended March 31, 2026 and 2025, respectively. The declaration and payment of future dividends to our stockholders, including any special dividends, will be at the discretion of our Board of Directors (Board) and will depend upon many factors including our financial position, capital requirements of our operating subsidiaries, legal and regulatory requirements, and any other factors that our Board deems relevant. On April 29, 2026, the Board declared a quarterly dividend per share of $0.34, which represents a 6.25% increase over the $0.32 dividend paid in March 2026, which is payable May 27, 2026 to stockholders of record on May 13, 2026.
Previous wording
We repurchased 1,049,401 shares of our common stock for $45.2 million during the three months ended September 30, 2025 and we repurchased 1,937,502 shares of our common stock for $88.6 million during the nine months ended September 30, 2025. Future repurchases of our common stock will be at the discretion of our Board and will depend upon many factors, including our financial position, capital requirements of our operating subsidiaries, general business and socioeconomic conditions, legal, tax, regulatory, and/or contractual restrictions, and any other factors that our Board deems relevant.
Current wording
We repurchased 1,812,329 shares of our common stock for $76.9 million during the three months ended March 31, 2026. Future repurchases of our common stock will be at the discretion of our Board and will depend upon many factors, including our financial position, capital requirements of our operating subsidiaries, general business and socioeconomic conditions, legal, tax, regulatory, and/or contractual restrictions, and any other factors that our Board deems relevant.
Showing the first 40 of 50 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
We provide workers’ compensation insurance throughout most of the United States, with a concentration in California, where 46% of our trailing twelve month gross written premiums, excluding adjustments, are generated. In February 2026, we launched a new excess workers’ compensation product that will be offered to self-insured enterprises in several jurisdictions across the United States. Our revenues primarily consist of net premiums earned, net investment income, and net realized and unrealized gains and losses on investments.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
The increase in our calendar year losses and LAE during the nine months ended September 30, 2025, as compared to the same period of 2024, was due to a higher current accident year loss and LAE ratio, 72.0% versus 64.0%, respectively, and net reserve strengthening of prior accident year loss and LAE estimates described above.
Previous report — wording carried elsewhere
The decrease in underwriting expenses for the three months ended September 30, 2025, was primarily the result of decreases in (i) compensation-related expenses of $4.0 million, of which $2.0 million related to incentives; (ii) policyholder dividends of $0.8 million; and (iii) net CECL provision on premiums receivable of $0.5 million. These decreases were partially offset by lower internal AO and other expense allocations of $2.0 million, each compared to the same period of 2024.