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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