- 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.
For further details see:
Employers Holdings Leveraged To Improving Employment And Rates