CORRECTED-Employers Holdings Q2 EPS ex LPT beats estimates

Reuters
Jul 31
CORRECTED-Employers Holdings <a href="https://laohu8.com/S/QTWO">Q2</a> EPS ex LPT beats estimates

Removes the word "adjusted" from overview and headline

Overview

  • Employers Holdings Q2 rev decreases 2% yr/yr, net premiums earned up 6%

  • EPS excluding LPT beats analysts' expectations

  • Co returns $31.4 mln to shareholders via dividends and share repurchases

Outlook

  • Company plans full actuarial study in Q3 2025 to assess claim trends

  • Employers Holdings focuses on profitability over growth in future quarters

  • Company sees increased uncertainty due to rise in cumulative trauma claims

  • Employers Holdings reallocates reserves due to recent claim trends

Result Drivers

  • PREMIUMS MIX - Gross premiums written decreased due to reductions in middle market new business, while smaller policy size bands grew

  • CLAIMS IMPACT - Loss and loss adjustment expenses rose due to increased cumulative trauma claims in California, affecting reserve allocations

  • EXPENSE RATIO - Commission and underwriting expense ratios improved due to lower agency incentive accruals and increased automation

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Revenue

$203.30 mln

Q2 EPS ex LPT

Beat

$1.16

$0.99 (4 Analysts)

Q2 EPS

$1.23

Q2 Net Income Ex LPT

Beat

$28 mln

$23.40 mln (2 Analysts)

Q2 Net Income

$29.70 mln

Q2 Pretax Profit

$37 mln

Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the property & casualty insurance peer group is "buy."

  • Wall Street's median 12-month price target for Employers Holdings Inc is $55.50, about 16.8% above its July 29 closing price of $46.18

  • The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release: ID:nGNX7HwcZP

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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