Employers 8K Declares Quarterly Cash Dividend of $0.25 per Share | EIG 17 Feb 21

Exhibit 99.2

Employers Holdings, Inc.

Fourth Quarter and Full Year 2020

Financial Supplement

February 17, 2021

EMPLOYERS HOLDINGS, INC.

Table of Contents


Page

3						Consolidated Financial Highlights

4						Summary Consolidated Balance Sheets

5						Summary Consolidated Income Statements

6-9						Net Income Before Income Taxes by Segment

10						Return on Equity

11						Roll-forward of Unpaid Losses and LAE

12						Consolidated Investment Portfolio

13						Book Value Per Share

14						Earnings Per Share

15						Non-GAAP Financial Measures

16						Description of Reportable Segments

EMPLOYERS HOLDINGS, INC.

Consolidated Financial Highlights (unaudited)

$ in millions, except per share amounts


	Three Months Ended								Years Ended
	December 31,								December 31,
	2020			2019			% change		2020			2019			% change
Selected financial highlights:
Gross premiums written	$	123.9		$	143.8		(14)	%	$	580.1		$	696.9		(17)	%
Net premiums written	122.9			142.4			(14)		574.9			691.5			(17)
Net premiums earned	151.5			169.7			(11)		615.3			695.8			(12)
Net investment income	18.0			22.6			(20)		76.3			88.1			(13)
Net income before impact of the LPT(1)	59.5			29.6			101		107.9			144.4			(25)
Adjusted net income(1)	42.8			15.5			176		93.5			104.0			(10)
Net income before income taxes	80.4			41.4			94		147.7			193.8			(24)
Net income	64.0			31.8			101		119.8			157.1			(24)
Comprehensive income	67.4			29.0			132		169.6			236.1			(28)
Total assets									3,922.6			4,004.1			(2)
Stockholders' equity									1,212.8			1,165.8			4
Stockholders' equity including the Deferred Gain(2)									1,338.2			1,302.9			3
Adjusted stockholders' equity(2)									1,223.1			1,237.6			(1)
Annualized adjusted return on stockholders' equity(3)	14.2		%	5.0		%	184	%	7.6		%	8.6		%	(12)
Amounts per share:
Cash dividends declared per share	$	0.25		$	0.22		14	%	$	1.00		$	0.88		14	%
Earnings per diluted share(4)	2.19			0.99			121		3.97			4.83			(18)
Earnings per diluted share before impact of the LPT(4)	2.04			0.92			122		3.57			4.44			(20)
Adjusted earnings per diluted share(4)	1.46			0.48			204		3.10			3.20			(3)
Book value per share(2)									42.46			37.18			14
Book value per share including the Deferred Gain(2)									46.85			41.55			13
Adjusted book value per share(2)									42.82			39.47			8
Financial information by Segment(5):
Net income (loss) before income taxes:
Employers	$	83.4		$	46.9		78	%	$	164.0		$	208.0		(21)	%
Cerity	(3.6)			(4.2)			14		(13.5)			(15.6)			13
Corporate and Other	0.6			(1.3)			146		(2.8)			1.4			(300)

(1) See Page 5 for calculations and Page 15 for information regarding our use of Non-GAAP Financial Measures.
(2) See Page 13 for calculations and Page 15 for information regarding our use of Non-GAAP Financial Measures.
(3) See Page 10 for calculations and Page 15 for information regarding our use of Non-GAAP Financial Measures.
(4) See Page 14 for calculations and Page 15 for information regarding our use of Non-GAAP Financial Measures.
(5) See Pages 6-9 for details and Page 16 for a description of our reportable segments.

EMPLOYERS HOLDINGS, INC.

Summary Consolidated Balance Sheets (unaudited)

$ in millions, except per share amounts


	December 31, 2020		December 31, 2019
ASSETS









Investments, cash and cash equivalents	$	2,917.8	$	2,933.6
Accrued investment income	15.3		16.4
Premiums receivable, net	232.1		285.7


Reinsurance recoverable, net of allowance, on paid and unpaid losses and LAE	504.2		539.7
Deferred policy acquisition costs	43.2		47.9


Contingent commission receivable—LPT Agreement	13.4		13.2
Other assets	196.6		167.6
Total assets	$	3,922.6	$	4,004.1

LIABILITIES
Unpaid losses and LAE	$	2,069.4	$	2,192.8
Unearned premiums	299.1		337.1
Commissions and premium taxes payable	43.0		48.6
Deferred Gain	125.4		137.1
FHLB Advances (1)	20.0		—
Other liabilities	152.9		122.7
Total liabilities	$	2,709.8	$	2,838.3

STOCKHOLDERS' EQUITY


Common stock and additional paid-in capital	$	404.9	$	397.0
Retained earnings	1,247.9		1,158.8
Accumulated other comprehensive income, net	115.1		65.3
Treasury stock, at cost	(555.1)		(455.3)
Total stockholders’ equity	1,212.8		1,165.8
Total liabilities and stockholders’ equity	$	3,922.6	$	4,004.1

Stockholders' equity including the Deferred Gain (2)	$	1,338.2	$	1,302.9
Adjusted stockholders' equity (2)	1,223.1		1,237.6

Book value per share (2)	$	42.46	$	37.18
Book value per share including the Deferred Gain (2)	46.85		41.55
Adjusted book value per share (2)	42.82		39.47

(1) FHLB = Federal Home Loan Bank
(2) See Page 13 for calculations and Page 15 for information regarding our use of Non-GAAP Financial Measures.

EMPLOYERS HOLDINGS, INC.

Summary Consolidated Income Statements (unaudited)

$ in millions


	Three Months Ended				Years Ended
	December 31,				December 31,
	2020		2019		2020		2019
Revenues:
Net premiums earned	$	151.5	$	169.7	$	615.3	$	695.8
Net investment income	18.0		22.6		76.3		88.1
Net realized and unrealized gains on investments(1)	21.3		17.8		19.0		51.1

Other income	0.3		0.2		0.8		0.9
Total revenues	191.1		210.3		711.4		835.9
Expenses:






Losses and LAE incurred	(47.9)		(97.6)		(302.4)		(365.9)
Commission expense	(18.9)		(20.4)		(78.8)		(88.1)
Underwriting and general and administrative expenses	(43.4)		(50.9)		(181.3)		(187.5)
Interest and financing expenses	(0.4)		—		(0.4)		(0.6)
Other expenses	(0.1)		—		(0.8)		—
Total expenses	(110.7)		(168.9)		(563.7)		(642.1)
Net income before income taxes	80.4		41.4		147.7		193.8

Income tax expense	(16.4)		(9.6)		(27.9)		(36.7)
Net income	64.0		31.8		119.8		157.1
Unrealized AFS investment gains (losses) arising during the period, net of tax(2)	5.3		(2.0)		53.4		82.1
Reclassification adjustment for realized AFS investment gains in net income, net of tax(2)	(1.9)		(0.8)		(3.6)		(3.1)
Total Comprehensive income	$	67.4	$	29.0	$	169.6	$	236.1
Net income	$	64.0	$	31.8	$	119.8	$	157.1




Amortization of the Deferred Gain - losses	(2.6)		(1.8)		(8.7)		(8.9)
Amortization of the Deferred Gain - contingent commission	(0.5)		(0.4)		(1.8)		(1.8)
LPT reserve adjustment	(1.2)		—		(1.2)		(1.8)
LPT contingent commission adjustments	(0.2)		—		(0.2)		(0.2)
Net income before impact of the LPT Agreement (3)	$	59.5	$	29.6	$	107.9	$	144.4
Net realized and unrealized gains on investments	(21.3)		(17.8)		(19.0)		(51.1)

Abandonment of operating leases	0.1		—		0.8		—

Income tax expense related to items excluded from Net income	4.5		3.7		3.8		10.7

Adjusted net income (3)	$	42.8	$	15.5	$	93.5	$	104.0

(1) Includes unrealized gains and losses on equity securities and other invested assets of $17.8 million and $16.3 million for the three months ended December 31 2020 and 2019, respectively, and $(6.3) million and $33.8 million for the year ended December 31, 2020 and 2019, respectively.
(2) AFS = Available for Sale securities
(3) See Page 15 regarding our use of Non-GAAP Financial Measures.

EMPLOYERS HOLDINGS, INC.

Net Income Before Income Taxes by Segment(1) (unaudited)

$ in millions


		Employers			Cerity		Corporate and Other		Consolidated
Year Ended December 31, 2020		(in millions)
Gross premiums written		$	579.8		$	0.3	$	—	$	580.1
Net premiums written		574.6			0.3		—		574.9

Net premiums earned	A	615.1			0.2		—		615.3
Net investment income		72.1			3.1		1.1		76.3
Net realized and unrealized gains (losses) on investments		20.9			—		(1.9)		19.0
Other income		0.8			—		—		0.8
Total revenues		708.9			3.3		(0.8)		711.4







Losses and LAE incurred	B	(314.2)			(0.1)		11.9		(302.4)
Commission expense	C	(78.8)			—		—		(78.8)
Underwriting expenses	D	(151.1)			(16.6)		—		(167.7)
General and administrative expenses		—			—		(13.6)		(13.6)
Interest and financing expenses		(0.1)			—		(0.3)		(0.4)
Other expenses		(0.7)			(0.1)		—		(0.8)
Total expenses		(544.9)			(16.8)		(2.0)		(563.7)
Net income (loss) before income taxes		$	164.0		$	(13.5)	$	(2.8)	$	147.7

Underwriting income (loss)	A+B+C+D	$	71.0		$	(16.5)

Loss and LAE expense ratio:
Current year		64.3		%	n/m
Prior years		(13.2)			—
Loss and LAE ratio		51.1			n/m
Commission expense ratio		12.8			n/m
Underwriting expense ratio		24.6			n/m
Combined ratio		88.5		%	n/m

n/m - not meaningful
(1) See Page 16 for a description of our reportable segments.

EMPLOYERS HOLDINGS, INC.

Net Income Before Income Taxes by Segment(1) (unaudited)

$ in millions


		Employers			Cerity		Corporate and Other		Consolidated
Year Ended December 31, 2019		(in millions)
Gross premiums written		$	696.8		$	0.1	$	—	$	696.9
Net premiums written		691.4			0.1		—		691.5

Net premiums earned	A	695.8			—		—		695.8
Net investment income		84.1			0.3		3.7		88.1
Net realized and unrealized gains on investments		47.7			0.1		3.3		51.1
Other income		0.9			—		—		0.9
Total revenues		828.5			0.4		7.0		835.9







Losses and LAE incurred	B	(378.6)			—		12.7		(365.9)
Commission expense	C	(88.1)			—		—		(88.1)
Underwriting expenses	D	(153.2)			(16.0)		—		(169.2)
General and administrative expenses		—			—		(18.3)		(18.3)
Interest and financing expenses		(0.6)			—		—		(0.6)
Total expenses		(620.5)			(16.0)		(5.6)		(642.1)
Net income (loss) before income taxes		$	208.0		$	(15.6)	$	1.4	$	193.8

Underwriting income (loss)	A+B+C+D	$	75.9		$	(16.0)

Loss and LAE expense ratio:
Current year		65.6		%	n/m
Prior years		(11.2)			—
Loss and LAE ratio		54.4			n/m
Commission expense ratio		12.7			n/m
Underwriting expense ratio		22.0			n/m
Combined ratio		89.1		%	n/m

n/m - not meaningful
(1) See Page 16 for a description of our reportable segments.

EMPLOYERS HOLDINGS, INC.

Net Income Before Income Taxes by Segment(1) (unaudited)

$ in millions


		Employers			Cerity		Corporate and Other		Consolidated
Three Months Ended December 31, 2020		(in millions)
Gross premiums written		$	123.7		$	0.2	$	—	$	123.9
Net premiums written		122.7			0.2		—		122.9

Net premiums earned	A	151.4			0.1		—		151.5
Net investment income		17.2			0.6		0.2		18.0
Net realized and unrealized gains on investments		20.8			0.5		—		21.3
Other income		0.3			—		—		0.3
Total revenues		189.7			1.2		0.2		191.1








Losses and LAE incurred	B	(52.4)			—		4.5		(47.9)
Commission expense	C	(18.9)			—		—		(18.9)
Underwriting expenses	D	(34.9)			(4.7)		—		(39.6)
General and administrative expenses		—			—		(3.8)		(3.8)
Interest and financing expenses		(0.1)			—		(0.3)		(0.4)
Other expenses		—			(0.1)		—		(0.1)
Total expenses		(106.3)			(4.8)		0.4		(110.7)
Net income (loss) before income taxes		$	83.4		$	(3.6)	$	0.6	$	80.4

Underwriting income (loss)	A+B+C+D	$	45.2		$	(4.6)

Loss and LAE expense ratio:
Current year		60.8		%	n/m
Prior years		(26.2)			—
Loss and LAE ratio		34.6			n/m
Commission expense ratio		12.5			n/m
Underwriting expense ratio		23.1			n/m
Combined ratio		70.2		%	n/m

n/m - not meaningful
(1) See Page 16 for a description of our reportable segments.

EMPLOYERS HOLDINGS, INC.

Net Income Before Income Taxes by Segment(1) (unaudited)

$ in millions


		Employers			Cerity		Corporate and Other		Consolidated
Three Months Ended December 31, 2019		(in millions)
Gross premiums written		$	143.8		$	—	$	—	$	143.8
Net premiums written		142.4			—		—		142.4

Net premiums earned	A	169.7			—		—		169.7
Net investment income		21.8			0.1		0.7		22.6
Net realized and unrealized gains on investments		17.4			—		0.4		17.8
Other income		0.1			—		0.1		0.2
Total revenues		209.0			0.1		1.2		210.3








Losses and LAE incurred	B	(99.9)			—		2.3		(97.6)
Commission expense	C	(20.4)			—		—		(20.4)
Underwriting expenses	D	(41.8)			(4.3)		—		(46.1)
General and administrative expenses		—			—		(4.8)		(4.8)

Total expenses		(162.1)			(4.3)		(2.5)		(168.9)
Net income (loss) before income taxes		$	46.9		$	(4.2)	$	(1.3)	$	41.4

Underwriting income (loss)	A+B+C+D	$	7.6		$	(4.3)

Loss and LAE expense ratio:
Current year		65.6		%	n/m
Prior years		(6.7)			—
Loss and LAE ratio		58.9			n/m
Commission expense ratio		12.0			n/m
Underwriting expense ratio		24.6			n/m
Combined ratio		95.5		%	n/m

n/m - not meaningful
(1) See Page 16 for a description of our reportable segments.

EMPLOYERS HOLDINGS, INC.

Return on Equity (unaudited)

$ in millions


		Three Months Ended						Years Ended
		December 31,						December 31,
		2020			2019			2020			2019

Net income	A	$	64.0		$	31.8		$	119.8		$	157.1

Impact of the LPT Agreement		(4.5)			(2.2)			(11.9)			(12.7)
Net realized and unrealized gains on investments		(21.3)			(17.8)			(19.0)			(51.1)

Abandonment of operating leases		0.1			—			0.8			—

Income tax expense related to items excluded from Net income		4.5			3.7			3.8			10.7

Adjusted net income(1)	B	$	42.8		$	15.5		$	93.5		$	104.0

Stockholders' equity - end of period		$	1,212.8		$	1,165.8		$	1,212.8		$	1,165.8
Stockholders' equity - beginning of period		1,167.4			1,160.4			1,165.8			1,018.2
Average stockholders' equity	C	$	1,190.1		$	1,163.1		$	1,189.3		$	1,092.0

Stockholders' equity - end of period		$	1,212.8		$	1,165.8		$	1,212.8		$	1,165.8
Deferred Gain - end of period		125.4			137.1			125.4			137.1

Accumulated other comprehensive income, before taxes - end of period		(145.7)			(82.6)			(145.7)			(82.6)

Income tax related to accumulated other comprehensive income - end of period		30.6			17.3			30.6			17.3
Adjusted stockholders' equity - end of period		1,223.1			1,237.6			1,223.1			1,237.6
Adjusted stockholders' equity - beginning of period		1,185.4			1,231.7			1,237.6			1,181.5
Average adjusted stockholders' equity(1)	D	$	1,204.3		$	1,234.7		$	1,230.4		$	1,209.6

Return on stockholders' equity	A / C	5.4		%	2.7		%	10.1		%	14.4		%

Annualized return on stockholders' equity		21.5			10.9

Adjusted return on stockholders' equity(1)	B / D	3.6			1.3			7.6			8.6

Annualized adjusted return on stockholders' equity(1)		14.2			5.0

(1) See Page 15 for information regarding our use of Non-GAAP Financial Measures.

EMPLOYERS HOLDINGS, INC.

Roll-forward of Unpaid Losses and LAE (unaudited)

$ in millions


	Three Months Ended				Years Ended
	December 31,				December 31,
	2020		2019		2020		2019

Unpaid losses and LAE at beginning of period	$	2,141.4	$	2,197.3	$	2,192.8	$	2,207.9
Less reinsurance recoverable on unpaid losses and LAE	513.7		527.1		532.5		504.4
Net unpaid losses and LAE at beginning of period	1,627.7		1,670.2		1,660.3		1,703.5
Losses and LAE incurred:
Current year	92.1		111.3		395.9		456.1
Prior years - voluntary business	(38.7)		(11.5)		(80.2)		(77.5)
Prior years - involuntary business	(1.0)		0.1		(1.4)		—
Total losses incurred	52.4		99.9		314.3		378.6
Losses and LAE paid:
Current year	32.9		43.1		83.6		106.6
Prior years	74.8		66.7		318.6		315.2
Total paid losses	107.7		109.8		402.2		421.8
Net unpaid losses and LAE at end of period	1,572.4		1,660.3		1,572.4		1,660.3
Reinsurance recoverable, excluding CECL allowance, on unpaid losses and LAE	497.0		532.5		497.0		532.5
Unpaid losses and LAE at end of period	$	2,069.4	$	2,192.8	$	2,069.4	$	2,192.8

Total losses and LAE shown in the above table exclude amortization of the Deferred Gain, LPT Reserve Adjustments, and LPT Contingent Commission Adjustments, which totaled $4.5 million and $2.2 million for the three months ended December 31, 2020 and 2019, respectively, and $11.9 million and $12.7 million for the year ended December 31, 2020 and 2019, respectively.

EMPLOYERS HOLDINGS, INC.

Consolidated Investment Portfolio (unaudited)

$ in millions


	December 31, 2020				December 31, 2019
Investment Positions:	Cost or Amortized Cost		Net Unrealized Gain (Loss)		Fair Value		%		Fair Value		%
Fixed maturity securities	$	2,333.6	$	145.6	$	2,479.2	85	%	$	2,485.9	85	%


Equity securities	119.1		96.1		215.2		7		263.4		9
Other invested assets	36.8		(0.6)		36.2		1		29.1		1
Short-term investments	26.5		0.1		26.6		1		—		—
Cash and cash equivalents	160.4		—		160.4		5		154.9		5
Restricted cash and cash equivalents	0.2		—		0.2		—		0.3		—
Total investments and cash	$	2,676.6	$	241.2	$	2,917.8	100	%	$	2,933.6	100	%

Breakout of Fixed Maturity Securities:


U.S. Treasuries and Agencies	$	77.1	$	4.3	$	81.4	3	%	$	88.5	4	%
States and Municipalities	449.4		33.3		482.7		19		484.5		19
Corporate Securities	963.5		82.9		1,046.4		42		1,079.0		43


Mortgage-Backed Securities	539.3		24.1		563.4		23		591.0		24
Asset-Backed Securities	42.0		0.6		42.6		2		61.2		2
Collateralized loan obligations	84.4		(0.8)		83.6		3		—		—


Bank loans and other	177.9		1.2		179.1		7		181.7		7
Total fixed maturity securities	$	2,333.6	$	145.6	$	2,479.2	100	%	$	2,485.9	100	%


Weighted average ending book yield	3.0	%	3.3	%

Average credit quality (S&P)	A+		A+
Duration	3.2		3.3

EMPLOYERS HOLDINGS, INC.

Book Value Per Share (unaudited)

$ in millions, except per share amounts


		December 31, 2020			December 31, 2019
Numerators:
Stockholders' equity	A	$	1,212.8		$	1,165.8
Plus: Deferred Gain		125.4			137.1
Stockholders' equity including the Deferred Gain(1)	B	1,338.2			1,302.9

Accumulated other comprehensive income, before taxes		(145.7)			(82.6)

Income taxes related to accumulated other comprehensive income, before taxes		30.6			17.3
Adjusted stockholders' equity(1)	C	$	1,223.1		$	1,237.6

Denominator (shares outstanding)	D	28,564,798			31,355,378

Book value per share(1)	A / D	$	42.46		$	37.18
Book value per share including the Deferred Gain(1)	B / D	46.85			41.55
Adjusted book value per share(1)	C / D	42.82			39.47

Cash dividends declared per share		$	1.00		$	0.88

YTD Change in:(2)
Book value per share		16.9		%	22.5		%
Book value per share including the Deferred Gain		15.2			19.1
Adjusted book value per share		11.0			11.9

(1) See Page 15 for information regarding our use of Non-GAAP Financial Measures.
(2) Reflects the change per share after taking into account dividends declared in the period.

EMPLOYERS HOLDINGS, INC.

Earnings Per Share (unaudited)

$ in millions, except per share amounts


		Three Months Ended				Years Ended
		December 31,				December 31,
		2020		2019		2020		2019
Numerators:
Net income	A	$	64.0	$	31.8	$	119.8	$	157.1

Impact of the LPT Agreement		(4.5)		(2.2)		(11.9)		(12.7)
Net income before impact of the LPT (1)	B	$	59.5	$	29.6	$	107.9	$	144.4
Net realized and unrealized gains on investments		(21.3)		(17.8)		(19.0)		(51.1)

Abandonment of operating leases		0.1		—		0.8		—

Income tax expense related to items excluded from Net income		4.5		3.7		3.8		10.7

Adjusted net income (1)	C	$	42.8	$	15.5	$	93.5	$	104.0

Denominators:
Average common shares outstanding (basic)	D	28,931,963		31,700,259		29,912,063		32,120,578
Average common shares outstanding (diluted)	E	29,227,878		32,120,929		30,204,864		32,539,718

Earnings per share:
Basic	A / D	$	2.21	$	1.00	$	4.01	$	4.89
Diluted	A / E	2.19		0.99		3.97		4.83

Earnings per share before impact of the LPT:(1)
Basic	B / D	$	2.06	$	0.93	$	3.61	$	4.50
Diluted	B / E	2.04		0.92		3.57		4.44

Adjusted earnings per share:(1)
Basic	C / D	$	1.48	$	0.49	$	3.13	$	3.24
Diluted	C / E	1.46		0.48		3.10		3.20

(1) See Page 15 for information regarding our use of Non-GAAP Financial Measures.

Non-GAAP Financial Measures

Within this earnings release we present the following measures, each of which are "non-GAAP financial measures." A reconciliation of these measures to the Company's most directly comparable GAAP financial measures is included herein. Management believes that these non-GAAP measures are important to the Company's investors, analysts and other interested parties who benefit from having an objective and consistent basis for comparison with other companies within our industry. Management further believes that these measures are more relevant than comparable GAAP measures in evaluating our financial performance.

The LPT Agreement is a non-recurring transaction that does not result in ongoing cash benefits to the Company. Management believes that providing non-GAAP measures that exclude the effects of the LPT Agreement (amortization of deferred reinsurance gain, adjustments to LPT Agreement ceded reserves and adjustments to contingent commission receivable) is useful in providing investors, analysts and other interested parties a meaningful understanding of the Company's ongoing underwriting performance.

Deferred reinsurance gain (Deferred Gain) reflects the unamortized gain from the LPT Agreement. This gain has been deferred and is being amortized using the recovery method, whereby the amortization is determined by the proportion of actual reinsurance recoveries to total estimated recoveries, except for the contingent profit commission, which is being amortized through June 30, 2024. Amortization is reflected in losses and LAE incurred.

Adjusted net income (see Page 5 for calculations) is net income excluding the effects of the LPT Agreement, net realized and unrealized gains and losses on investments (net of tax), and any miscellaneous non-recurring transactions (net of tax). Management believes that providing this non-GAAP measures is helpful to investors, analysts and other interested parties in identifying trends in the Company's operating performance because such items have limited significance to its ongoing operations or can be impacted by both discretionary and other economic factors and may not represent operating trends.

Stockholders' equity including the Deferred Gain (see Page 13 for calculations) is stockholders' equity including the Deferred Gain. Management believes that providing this non-GAAP measure is useful in providing investors, analysts and other interested parties a meaningful measure of the Company's total underwriting capital.

Adjusted stockholders' equity (see Page 13 for calculations) is stockholders' equity including the Deferred Gain, less accumulated other comprehensive income (net of tax). Management believes that providing this non-GAAP measure is useful to investors, analysts and other interested parties since it serves as the denominator to the Company's adjusted return on stockholders' equity metric.

Return on stockholders' equity and Adjusted return on stockholders' equity (see Page 10 for calculations). Management believes that these profitability measures are widely used by our investors, analysts and other interested parties.

Book value per share, Book value per share including the Deferred Gain, and Adjusted book value per share (see Page 13 for calculations). Management believes that these valuation measures are widely used by our investors, analysts and other interested parties.

Net income before impact of the LPT (see Page 5 for calculations). Management believes that these performance and underwriting measures are widely used by our investors, analysts and other interested parties.

Description of Reportable Segments

In 2019, the Company made changes to its corporate structure, mainly involving the launch and further development of a new digital insurance platform offered under the Cerity brand name (Cerity), resulting in changes to its reportable segments. As a result, the Company has determined that it has two reportable segments: Employers and Cerity. Each of these segments represents a separate and distinct underwriting platform through which the Company conducts insurance business.

The nature and composition of each reportable segment and its Corporate and Other activities are as follows:

•The Employers segment is defined as traditional business offered through the EMPLOYERS brand name (Employers) through its agents, including business originated from its strategic partnerships and alliances;

•The Cerity segment is defined as business offered under the Cerity brand name, which includes the Company's direct-to-customer business; and

•Corporate and Other activities consist of those holding company expenses that are not considered to be underwriting in nature, the financial impact of the LPT agreement and legacy (pre-acquisition) business assumed and ceded by Cerity Insurance Company. These expenses are not considered to be part of a reportable segment and are not otherwise allocated to a reportable segment.

Employers (EIG) 8-KDeclares Quarterly Cash Dividend of $0.25 per Share