TRV - Employers Holdings Leveraged To Improving Employment And Rates

• Employers Holdings is still seeing the financial impact of weaker workers comp demand during the pandemic, with underwriting income missing expectations and coming in at a small loss.
• Employers' results were hurt by lower than expected positive prior year development, as the company recognized two rare cat losses; underlying loss trends remain positive.
• The company has seen a long run of weak pricing and rates were down another 8% this quarter, but should improve as employment in the service sector picks up.
• I'm concerned that increased competition has made workers comp structurally less profitable than before, but Employers serves an attractive segment and looks undervalued on mid-single-digit core earnings growth.

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