Exhibit 99.2
Employers Holdings, Inc.
Fourth Quarter and Full Year 2024
Financial Supplement
February 20, 2025
EMPLOYERS HOLDINGS, INC.
Table of Contents
| Page | ||||||||
| Consolidated Financial Highlights | ||||||||
| Summary Consolidated Balance Sheets | ||||||||
| Summary Consolidated Income Statements | ||||||||
| Return on Equity | ||||||||
| Combined Ratios | ||||||||
| Roll-forward of Unpaid Losses and LAE | ||||||||
| Consolidated Investment Portfolio | ||||||||
| Book Value Per Share | ||||||||
| Earnings Per Share | ||||||||
| Non-GAAP Financial Measures | ||||||||
EMPLOYERS HOLDINGS, INC.
Consolidated Financial Highlights (unaudited)
$ in millions, except per share amounts
| Three Months Ended | Years Ended | ||||||||||||||||||||||||||||||||||
| December 31, | December 31, | ||||||||||||||||||||||||||||||||||
| 2024 | 2023 | % change | 2024 | 2023 | % change | ||||||||||||||||||||||||||||||
| Selected financial highlights: | |||||||||||||||||||||||||||||||||||
| Gross premiums written | $ | 176.3 | $ | 178.2 | (1) | % | $ | 776.3 | $ | 767.7 | 1 | % | |||||||||||||||||||||||
| Net premiums written | 174.7 | 176.4 | (1) | 769.5 | 760.6 | 1 | |||||||||||||||||||||||||||||
| Net premiums earned | 190.2 | 187.5 | 1 | 749.5 | 721.9 | 4 | |||||||||||||||||||||||||||||
| Net investment income | 26.7 | 26.2 | 2 | 107.0 | 106.5 | — | |||||||||||||||||||||||||||||
Net income excluding LPT(1) | 28.4 | 44.4 | (36) | 113.0 | 110.9 | 2 | |||||||||||||||||||||||||||||
Adjusted net income(1) | 28.7 | 36.1 | (20) | 94.0 | 101.7 | (8) | |||||||||||||||||||||||||||||
| Net income before income taxes | 34.7 | 58.2 | (40) | 146.7 | 148.4 | (1) | |||||||||||||||||||||||||||||
| Net income | 28.3 | 45.6 | (38) | 118.6 | 118.1 | — | |||||||||||||||||||||||||||||
| Comprehensive income (loss) | (8.9) | 116.2 | (108) | 122.1 | 171.0 | (29) | |||||||||||||||||||||||||||||
| Total assets | 3,541.3 | 3,550.4 | — | ||||||||||||||||||||||||||||||||
| Stockholders' equity | 1,068.7 | 1,013.9 | 5 | ||||||||||||||||||||||||||||||||
Stockholders' equity including the Deferred Gain(2) | 1,162.7 | 1,113.1 | 4 | ||||||||||||||||||||||||||||||||
Adjusted stockholders' equity(2) | 1,245.2 | 1,199.1 | 4 | ||||||||||||||||||||||||||||||||
Annualized adjusted return on stockholders' equity(3) | 9.3 | % | 12.2 | % | (24) | % | 7.7 | % | 8.5 | % | (9) | ||||||||||||||||||||||||
| Amounts per share: | |||||||||||||||||||||||||||||||||||
| Cash dividends declared per share | $ | 0.30 | $ | 0.28 | 7 | % | $ | 1.18 | $ | 1.10 | 7 | % | |||||||||||||||||||||||
Earnings per diluted share(4) | 1.14 | 1.77 | (36) | 4.71 | 4.45 | 6 | |||||||||||||||||||||||||||||
Earnings per diluted share excluding LPT(4) | 1.14 | 1.72 | (34) | 4.49 | 4.18 | 7 | |||||||||||||||||||||||||||||
Adjusted earnings per diluted share(4) | 1.15 | 1.40 | (18) | 3.73 | 3.83 | (3) | |||||||||||||||||||||||||||||
Book value per share(2) | 43.52 | 39.96 | 9 | ||||||||||||||||||||||||||||||||
Book value per share including the Deferred Gain(2) | 47.35 | 43.88 | 8 | ||||||||||||||||||||||||||||||||
Adjusted book value per share(2) | 50.71 | 47.26 | 7 | ||||||||||||||||||||||||||||||||
Combined ratio excluding LPT:(5) | |||||||||||||||||||||||||||||||||||
| Loss and loss adjustment expense ratio: | |||||||||||||||||||||||||||||||||||
| Current year | 64.2 | % | 63.5 | % | 64.1 | % | 63.4 | % | |||||||||||||||||||||||||||
| Prior Year | (4.7) | (13.3) | (2.5) | (6.2) | |||||||||||||||||||||||||||||||
| Loss and loss adjustment expense ratio | 59.5 | % | 50.2 | % | 61.6 | % | 57.2 | % | |||||||||||||||||||||||||||
| Commission expense ratio | 12.8 | 14.0 | 13.5 | 13.9 | |||||||||||||||||||||||||||||||
| Underwriting and general and administrative expense ratio | 23.2 | 24.6 | 23.5 | 24.9 | |||||||||||||||||||||||||||||||
| Combined ratio excluding LPT | 95.5 | % | 88.8 | % | 98.6 | % | 96.0 | % | |||||||||||||||||||||||||||
| (1) See Page 5 for calculations and Page 12 for information regarding our use of Non-GAAP Financial Measures. | |||||||||||||||||||||||||||||||||||
(2) See Page 10 for calculations and Page 12 for information regarding our use of Non-GAAP Financial Measures. | |||||||||||||||||||||||||||||||||||
| (3) See Page 6 for calculations and Page 12 for information regarding our use of Non-GAAP Financial Measures. | |||||||||||||||||||||||||||||||||||
| (4) See Page 11 for calculations and Page 12 for information regarding our use of Non-GAAP Financial Measures. | |||||||||||||||||||||||||||||||||||
| (5) See Page 7 for calculations and Page 12 for information regarding our use of Non-GAAP Financial Measures. | |||||||||||||||||||||||||||||||||||
3
EMPLOYERS HOLDINGS, INC.
Summary Consolidated Balance Sheets (unaudited)
$ in millions, except per share amounts
| December 31, 2024 | December 31, 2023 | |||||||||||||
| ASSETS | ||||||||||||||
| Available for sale: | ||||||||||||||
| Investments, cash and cash equivalents | $ | 2,532.4 | $ | 2,504.7 | ||||||||||
| Accrued investment income | 15.7 | 16.3 | ||||||||||||
| Premiums receivable, net | 361.3 | 359.4 | ||||||||||||
| Reinsurance recoverable, net of allowance, on paid and unpaid losses and LAE | 417.8 | 433.8 | ||||||||||||
| Deferred policy acquisition costs | 59.6 | 55.6 | ||||||||||||
| Deferred income taxes, net | 38.3 | 43.4 | ||||||||||||
| Contingent commission receivable—LPT Agreement | — | 14.2 | ||||||||||||
| Other assets | 116.2 | 123.0 | ||||||||||||
| Total assets | $ | 3,541.3 | $ | 3,550.4 | ||||||||||
| LIABILITIES | ||||||||||||||
| Unpaid losses and LAE | $ | 1,808.2 | $ | 1,884.5 | ||||||||||
| Unearned premiums | 402.2 | 379.7 | ||||||||||||
| Commissions and premium taxes payable | 65.8 | 66.0 | ||||||||||||
| Deferred Gain | 94.0 | 99.2 | ||||||||||||
| Other liabilities | 102.4 | 107.1 | ||||||||||||
| Total liabilities | $ | 2,472.6 | $ | 2,536.5 | ||||||||||
| STOCKHOLDERS' EQUITY | ||||||||||||||
| Common stock and additional paid-in capital | $ | 424.8 | $ | 420.4 | ||||||||||
| Retained earnings | 1,472.9 | 1,384.3 | ||||||||||||
| Accumulated other comprehensive loss, net | (82.5) | (86.0) | ||||||||||||
| Treasury stock, at cost | (746.5) | (704.8) | ||||||||||||
| Total stockholders’ equity | 1,068.7 | 1,013.9 | ||||||||||||
| Total liabilities and stockholders’ equity | $ | 3,541.3 | $ | 3,550.4 | ||||||||||
Stockholders' equity including the Deferred Gain (1) | $ | 1,162.7 | $ | 1,113.1 | ||||||||||
Adjusted stockholders' equity (1) | 1,245.2 | 1,199.1 | ||||||||||||
Book value per share (1) | $ | 43.52 | $ | 39.96 | ||||||||||
Book value per share including the Deferred Gain (1) | 47.35 | 43.88 | ||||||||||||
Adjusted book value per share (1) | 50.71 | 47.26 | ||||||||||||
| (1) See Page 10 for calculations and Page 12 for information regarding our use of Non-GAAP Financial Measures. | ||||||||||||||
4
EMPLOYERS HOLDINGS, INC.
Summary Consolidated Income Statements (unaudited)
$ in millions
| Three Months Ended | Years Ended | ||||||||||||||||||||||
| December 31, | December 31, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||
| Net premiums earned | $ | 190.2 | $ | 187.5 | $ | 749.5 | $ | 721.9 | |||||||||||||||
| Net investment income | 26.7 | 26.2 | 107.0 | 106.5 | |||||||||||||||||||
Net realized and unrealized (losses) gains on investments(1) | (0.4) | 12.1 | 24.1 | 22.7 | |||||||||||||||||||
| Other income (loss) | 0.1 | (0.1) | 0.1 | (0.2) | |||||||||||||||||||
| Total revenues | 216.6 | 225.7 | 880.7 | 850.9 | |||||||||||||||||||
| Expenses: | |||||||||||||||||||||||
| Losses and LAE incurred | 113.2 | 92.9 | 456.2 | 405.7 | |||||||||||||||||||
| Commission expense | 24.4 | 26.3 | 101.2 | 100.0 | |||||||||||||||||||
| Underwriting and general and administrative expenses | 44.2 | 46.1 | 176.5 | 180.0 | |||||||||||||||||||
| Interest and financing expenses | 0.1 | 0.6 | 0.1 | 5.8 | |||||||||||||||||||
| Other expenses | — | 1.6 | — | 11.0 | |||||||||||||||||||
| Total expenses | (181.9) | (167.5) | (734.0) | (702.5) | |||||||||||||||||||
| Net income before income taxes | 34.7 | 58.2 | 146.7 | 148.4 | |||||||||||||||||||
| Income tax expense | (6.4) | (12.6) | (28.1) | (30.3) | |||||||||||||||||||
| Net income | 28.3 | 45.6 | 118.6 | 118.1 | |||||||||||||||||||
| Unrealized AFS investment (losses) gains arising during the period, net of tax | (39.2) | 66.6 | (3.5) | 46.6 | |||||||||||||||||||
| Reclassification adjustment for realized AFS investment gains in net income, net of tax | 2.0 | 4.0 | 7.0 | 6.3 | |||||||||||||||||||
| Total Comprehensive income | $ | (8.9) | $ | 116.2 | $ | 122.1 | $ | 171.0 | |||||||||||||||
| Net income | $ | 28.3 | $ | 45.6 | $ | 118.6 | $ | 118.1 | |||||||||||||||
| Amortization of the Deferred Gain - losses | (1.6) | (1.5) | (6.1) | (6.3) | |||||||||||||||||||
| Amortization of the Deferred Gain - contingent commission | — | (0.3) | (0.8) | (1.5) | |||||||||||||||||||
| LPT reserve adjustment | 1.7 | 0.9 | 1.7 | 0.9 | |||||||||||||||||||
| LPT contingent commission adjustments | — | (0.3) | (0.4) | (0.3) | |||||||||||||||||||
Net income excluding LPT Agreement (2) | $ | 28.4 | $ | 44.4 | $ | 113.0 | $ | 110.9 | |||||||||||||||
| Net realized and unrealized losses (gains) on investments | 0.4 | (12.1) | (24.1) | (22.7) | |||||||||||||||||||
| Lease termination and asset impairment charges | — | 1.6 | — | 11.0 | |||||||||||||||||||
Income tax (benefit) expense related to items excluded from Net income | (0.1) | 2.2 | 5.1 | 2.5 | |||||||||||||||||||
Adjusted net income (2) | $ | 28.7 | $ | 36.1 | $ | 94.0 | $ | 101.7 | |||||||||||||||
| (1) Includes unrealized gains on equity securities and other invested assets of $2.4 million and $17.8 million for the three months ended December 31, 2024 and 2023, respectively, and $30.5 million and $36.2 million for the year ended December 31, 2024 and 2023, respectively | |||||||||||||||||||||||
| (2) See Page 12 regarding our use of Non-GAAP Financial Measures. | |||||||||||||||||||||||
5
EMPLOYERS HOLDINGS, INC.
Return on Equity (unaudited)
$ in millions
| Three Months Ended | Years Ended | |||||||||||||||||||||||||
| December 31, | December 31, | |||||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||
| Net income | A | $ | 28.3 | $ | 45.6 | $ | 118.6 | $ | 118.1 | |||||||||||||||||
| Impact of the LPT Agreement | 0.1 | (1.2) | (5.6) | (7.2) | ||||||||||||||||||||||
| Net realized and unrealized losses (gains) on investments | 0.4 | (12.1) | (24.1) | (22.7) | ||||||||||||||||||||||
| Lease termination and asset impairment charges | — | 1.6 | — | 11.0 | ||||||||||||||||||||||
| Income tax (benefit) expense related to items excluded from Net income | (0.1) | 2.2 | 5.1 | 2.5 | ||||||||||||||||||||||
Adjusted net income(1) | B | $ | 28.7 | $ | 36.1 | $ | 94.0 | $ | 101.7 | |||||||||||||||||
| Stockholders' equity - end of period | $ | 1,068.7 | $ | 1,013.9 | $ | 1,068.7 | $ | 1,013.9 | ||||||||||||||||||
| Stockholders' equity - beginning of period | 1,093.4 | 919.0 | 1,013.9 | 944.2 | ||||||||||||||||||||||
| Average stockholders' equity | C | $ | 1,081.1 | $ | 966.5 | $ | 1,041.3 | $ | 979.1 | |||||||||||||||||
| Stockholders' equity - end of period | $ | 1,068.7 | $ | 1,013.9 | $ | 1,068.7 | $ | 1,013.9 | ||||||||||||||||||
| Deferred Gain - end of period | 94.0 | 99.2 | 94.0 | 99.2 | ||||||||||||||||||||||
| Accumulated other comprehensive loss, before taxes - end of period | 104.5 | 108.9 | 104.5 | 108.9 | ||||||||||||||||||||||
| Income tax related to accumulated other comprehensive loss - end of period | (22.0) | (22.9) | (22.0) | (22.9) | ||||||||||||||||||||||
| Adjusted stockholders' equity - end of period | 1,245.2 | 1,199.1 | 1,245.2 | 1,199.1 | ||||||||||||||||||||||
| Adjusted stockholders' equity - beginning of period | 1,232.5 | 1,175.8 | 1,199.1 | 1,189.2 | ||||||||||||||||||||||
Average adjusted stockholders' equity(1) | D | $ | 1,238.9 | $ | 1,187.5 | $ | 1,222.2 | $ | 1,194.2 | |||||||||||||||||
| Return on stockholders' equity | A / C | 2.6 | % | 4.7 | % | 11.4 | % | 12.1 | % | |||||||||||||||||
| Annualized return on stockholders' equity | 10.5 | 18.9 | ||||||||||||||||||||||||
Adjusted return on stockholders' equity(1) | B / D | 2.3 | 3.0 | 7.7 | 8.5 | |||||||||||||||||||||
Annualized adjusted return on stockholders' equity(1) | 9.3 | 12.2 | ||||||||||||||||||||||||
| (1) See Page 12 for information regarding our use of Non-GAAP Financial Measures. | ||||||||||||||||||||||||||
6
EMPLOYERS HOLDINGS, INC.
Combined Ratios (unaudited)
$ in millions, except per share amounts
| Three Months Ended | Years Ended | |||||||||||||||||||||||||
| December 31, | December 31, | |||||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||
| Net premiums earned | A | $ | 190.2 | $ | 187.5 | $ | 749.5 | $ | 721.9 | |||||||||||||||||
| Losses and LAE incurred | B | 113.2 | 92.9 | 456.2 | 405.7 | |||||||||||||||||||||
| Amortization of deferred reinsurance gain - losses | 1.6 | 1.5 | 6.1 | 6.3 | ||||||||||||||||||||||
| Amortization of deferred reinsurance gain - contingent commission | — | 0.3 | 0.8 | 1.5 | ||||||||||||||||||||||
| LPT reserve adjustment | (1.7) | (0.9) | (1.7) | (0.9) | ||||||||||||||||||||||
| LPT contingent commission adjustments | — | 0.3 | 0.4 | 0.3 | ||||||||||||||||||||||
Losses and LAE excluding LPT(1) | C | $ | 113.1 | $ | 94.1 | $ | 461.8 | $ | 412.9 | |||||||||||||||||
| Prior year loss reserve development | (9.1) | (24.9) | (18.4) | (44.9) | ||||||||||||||||||||||
| Losses and LAE excluding LPT - current accident year | D | $ | 122.2 | $ | 119.0 | $ | 480.2 | $ | 457.8 | |||||||||||||||||
| Commission expense | E | $ | 24.4 | $ | 26.3 | $ | 101.2 | $ | 100.0 | |||||||||||||||||
| Underwriting and general and administrative expense | F | $ | 44.2 | $ | 46.1 | $ | 176.5 | $ | 180.0 | |||||||||||||||||
| GAAP combined ratio: | ||||||||||||||||||||||||||
| Loss and LAE ratio | B/A | 59.5 | % | 49.5 | % | 60.9 | % | 56.2 | % | |||||||||||||||||
| Commission expense ratio | E/A | 12.8 | 14.0 | 13.5 | 13.9 | |||||||||||||||||||||
| Underwriting and general and administrative expense ratio | F/A | 23.2 | 24.6 | 23.5 | 24.9 | |||||||||||||||||||||
| GAAP combined ratio | 95.5 | % | 88.1 | % | 97.9 | % | 95.0 | % | ||||||||||||||||||
Combined ratio excluding LPT:(1) | ||||||||||||||||||||||||||
| Loss and LAE ratio excluding LPT | C/A | 59.5 | % | 50.2 | % | 61.6 | % | 57.2 | % | |||||||||||||||||
| Commission expense ratio | E/A | 12.8 | 14.0 | 13.5 | 13.9 | |||||||||||||||||||||
| Underwriting and general and administrative expense ratio | F/A | 23.2 | 24.6 | 23.5 | 24.9 | |||||||||||||||||||||
| Combined ratio excluding LPT | 95.5 | % | 88.8 | % | 98.6 | % | 96.0 | % | ||||||||||||||||||
Combined ratio excluding LPT: current accident year:(1) | ||||||||||||||||||||||||||
| Loss and LAE ratio excluding LPT | D/A | 64.2 | % | 63.5 | % | 64.1 | % | 63.4 | % | |||||||||||||||||
| Commission expense ratio | E/A | 12.8 | 14.0 | 13.5 | 13.9 | |||||||||||||||||||||
| Underwriting and general and administrative expenses ratio | F/A | 23.2 | 24.6 | 23.5 | 24.9 | |||||||||||||||||||||
| Combined ratio excluding LPT: current accident year | 100.2 | % | 102.1 | % | 101.1 | % | 102.2 | % | ||||||||||||||||||
| (1) See Page 12 for information regarding our use of Non-GAAP Financial Measures. | ||||||||||||||||||||||||||
7
EMPLOYERS HOLDINGS, INC.
Roll-forward of Unpaid Losses and LAE (unaudited)
$ in millions
| Three Months Ended | Years Ended | ||||||||||||||||||||||
| December 31, | December 31, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Unpaid losses and LAE at beginning of period | $ | 1,836.5 | $ | 1,913.4 | $ | 1,884.5 | $ | 1,960.7 | |||||||||||||||
| Less reinsurance recoverable on unpaid losses and LAE | 413.1 | 426.6 | 428.4 | 445.4 | |||||||||||||||||||
| Net unpaid losses and LAE at beginning of period | 1,423.4 | 1,486.8 | 1,456.1 | 1,515.3 | |||||||||||||||||||
| Losses and LAE incurred: | |||||||||||||||||||||||
| Current year | 122.2 | 119.1 | 480.2 | 457.8 | |||||||||||||||||||
| Prior years - voluntary business | (8.6) | (24.6) | (17.9) | (44.6) | |||||||||||||||||||
| Prior years - involuntary business | (0.5) | (0.3) | (0.5) | (0.3) | |||||||||||||||||||
| Total losses incurred | 113.1 | 94.2 | 461.8 | 412.9 | |||||||||||||||||||
| Losses and LAE paid: | |||||||||||||||||||||||
| Current year | 57.9 | 47.6 | 127.1 | 111.7 | |||||||||||||||||||
| Prior years | 82.8 | 77.3 | 395.0 | 360.4 | |||||||||||||||||||
| Total paid losses | 140.7 | 124.9 | 522.1 | 472.1 | |||||||||||||||||||
| Net unpaid losses and LAE at end of period | 1,395.8 | 1,456.1 | 1,395.8 | 1,456.1 | |||||||||||||||||||
| Reinsurance recoverable, excluding CECL allowance, on unpaid losses and LAE | 412.4 | 428.4 | 412.4 | 428.4 | |||||||||||||||||||
| Unpaid losses and LAE at end of period | $ | 1,808.2 | $ | 1,884.5 | $ | 1,808.2 | $ | 1,884.5 | |||||||||||||||
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 $(0.1) million and $1.2 million for the three months ended December 31, 2024 and 2023, respectively, and $5.6 million and $7.2 million for the year ended December 31, 2024 and 2023, respectively.
8
EMPLOYERS HOLDINGS, INC.
Consolidated Investment Portfolio (unaudited)
$ in millions
| December 31, 2024 | December 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Investment Positions: | Cost or Amortized Cost(1) | Net Unrealized Gain (Loss) | Fair Value | % | Fair Value | % | ||||||||||||||||||||||||||||||||||||||||||||
| Fixed maturity securities | $ | 2,203.1 | $ | (104.6) | $ | 2,097.4 | 83 | % | $ | 1,936.3 | 77 | % | ||||||||||||||||||||||||||||||||||||||
| Equity securities | 150.7 | 109.1 | 259.8 | 10 | 217.2 | 9 | ||||||||||||||||||||||||||||||||||||||||||||
| Other invested assets | 90.9 | 15.7 | 106.6 | 4 | 91.5 | 4 | ||||||||||||||||||||||||||||||||||||||||||||
| Short-term investments | 0.1 | — | 0.1 | — | 33.1 | 1 | ||||||||||||||||||||||||||||||||||||||||||||
| Cash and cash equivalents | 68.3 | — | 68.3 | 3 | 226.4 | 9 | ||||||||||||||||||||||||||||||||||||||||||||
| Restricted cash and cash equivalents | 0.2 | — | 0.2 | — | 0.2 | — | ||||||||||||||||||||||||||||||||||||||||||||
| Total investments and cash | $ | 2,513.3 | $ | 20.2 | $ | 2,532.4 | 100 | % | $ | 2,504.7 | 100 | % | ||||||||||||||||||||||||||||||||||||||
| Breakout of Fixed Maturity Securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. Treasuries and Agencies | $ | 61.4 | $ | (2.1) | $ | 59.3 | 3 | % | $ | 60.5 | 3 | % | ||||||||||||||||||||||||||||||||||||||
| States and Municipalities | 163.0 | (3.7) | 159.3 | 8 | 210.2 | 11 | ||||||||||||||||||||||||||||||||||||||||||||
| Corporate Securities | 849.2 | (46.0) | 803.0 | 38 | 895.8 | 46 | ||||||||||||||||||||||||||||||||||||||||||||
| Mortgage-Backed Securities | 733.1 | (47.9) | 684.9 | 33 | 426.0 | 22 | ||||||||||||||||||||||||||||||||||||||||||||
| Asset-Backed Securities | 216.0 | (2.0) | 214.0 | 10 | 128.0 | 7 | ||||||||||||||||||||||||||||||||||||||||||||
| Collateralized loan obligations | 35.5 | (0.2) | 35.3 | 2 | 91.5 | 5 | ||||||||||||||||||||||||||||||||||||||||||||
| Bank loans and other | 144.9 | (2.7) | 141.6 | 7 | 124.3 | 6 | ||||||||||||||||||||||||||||||||||||||||||||
| Total fixed maturity securities | $ | 2,203.1 | $ | (104.6) | $ | 2,097.4 | 100 | % | $ | 1,936.3 | 100 | % | ||||||||||||||||||||||||||||||||||||||
| Weighted average ending book yield on fixed income securities, cash, and cash equivalents | 4.5 | % | 4.3 | % | |||||||||||||
| Average credit quality (S&P) | A+ | A | |||||||||||||||
| Duration | 4.5 | 4.5 | |||||||||||||||
| (1) Amortized cost excludes an allowance for current expected credit losses (CECL) of $1.1 million | |||||||||||||||||
9
EMPLOYERS HOLDINGS, INC.
Book Value Per Share (unaudited)
$ in millions, except per share amounts
| December 31, 2024 | December 31, 2023 | ||||||||||||||||
| Numerators: | |||||||||||||||||
| Stockholders' equity | A | $ | 1,068.7 | $ | 1,013.9 | ||||||||||||
| Deferred Gain | 94.0 | 99.2 | |||||||||||||||
Stockholders' equity including the Deferred Gain(1) | B | 1,162.7 | 1,113.1 | ||||||||||||||
| Accumulated other comprehensive loss, before taxes | 104.5 | 108.9 | |||||||||||||||
| Income taxes related to accumulated other comprehensive loss, before taxes | (22.0) | (22.9) | |||||||||||||||
Adjusted stockholders' equity(1) | C | $ | 1,245.2 | $ | 1,199.1 | ||||||||||||
| Denominator (shares outstanding) | D | 24,556,706 | 25,369,753 | ||||||||||||||
Book value per share(1) | A / D | $ | 43.52 | $ | 39.96 | ||||||||||||
Book value per share including the Deferred Gain(1) | B / D | 47.35 | 43.88 | ||||||||||||||
Adjusted book value per share(1) | C / D | 50.71 | 47.26 | ||||||||||||||
| Cash dividends declared per share | $ | 1.18 | $ | 1.10 | |||||||||||||
YTD Change in:(2) | |||||||||||||||||
| Book value per share | 11.9 | % | 18.1 | % | |||||||||||||
| Book value per share including the Deferred Gain | 10.6 | 16.3 | |||||||||||||||
| Adjusted book value per share | 9.8 | 10.5 | |||||||||||||||
| (1) See Page 12 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. | |||||||||||||||||
10
EMPLOYERS HOLDINGS, INC.
Earnings Per Share (unaudited)
$ in millions, except per share amounts
| Three Months Ended | Years Ended | |||||||||||||||||||||||||
| December 31, | December 31, | |||||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||
| Numerators: | ||||||||||||||||||||||||||
| Net income | A | $ | 28.3 | $ | 45.6 | $ | 118.6 | $ | 118.1 | |||||||||||||||||
| Impact of the LPT Agreement | 0.1 | (1.2) | (5.6) | (7.2) | ||||||||||||||||||||||
Net income excluding LPT (1) | B | $ | 28.4 | $ | 44.4 | $ | 113.0 | $ | 110.9 | |||||||||||||||||
| Net realized and unrealized (gains) losses on investments | 0.4 | (12.1) | (24.1) | (22.7) | ||||||||||||||||||||||
| Lease termination and asset impairment charges | — | 1.6 | — | 11.0 | ||||||||||||||||||||||
| Income tax (benefit) expense related to items excluded from Net income | (0.1) | 2.2 | 5.1 | 2.5 | ||||||||||||||||||||||
Adjusted net income (1) | C | $ | 28.7 | $ | 36.1 | $ | 94.0 | $ | 101.7 | |||||||||||||||||
| Denominators: | ||||||||||||||||||||||||||
| Average common shares outstanding (basic) | D | 24,725,425 | 25,645,821 | 25,050,605 | 26,368,801 | |||||||||||||||||||||
| Average common shares outstanding (diluted) | E | 24,902,459 | 25,801,380 | 25,194,814 | 26,523,651 | |||||||||||||||||||||
| Earnings per share: | ||||||||||||||||||||||||||
| Basic | A / D | $ | 1.14 | $ | 1.78 | $ | 4.73 | $ | 4.48 | |||||||||||||||||
| Diluted | A / E | 1.14 | 1.77 | 4.71 | 4.45 | |||||||||||||||||||||
Earnings per share excluding LPT:(1) | ||||||||||||||||||||||||||
| Basic | B / D | $ | 1.15 | $ | 1.73 | $ | 4.51 | $ | 4.21 | |||||||||||||||||
| Diluted | B / E | 1.14 | 1.72 | 4.49 | 4.18 | |||||||||||||||||||||
Adjusted earnings per share:(1) | ||||||||||||||||||||||||||
| Basic | C / D | $ | 1.16 | $ | 1.41 | $ | 3.75 | $ | 3.86 | |||||||||||||||||
| Diluted | C / E | 1.15 | 1.40 | 3.73 | 3.83 | |||||||||||||||||||||
(1) See Page 12 for information regarding our use of Non-GAAP Financial Measures. | ||||||||||||||||||||||||||
11
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 no longer provides any 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 the 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 was amortized through June 30, 2024, the date of its final determination. 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, and 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 10 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 10 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 6 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 10 for calculations). Management believes that these valuation measures are widely used by our investors, analysts and other interested parties.
Net income excluding 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.
12