Start here if you're new
what it is
It sells workers' compensation insurance to small and mid-sized businesses and invests the float while claims work their way through the system.
how it gets paid
Last year Employers made $859M in revenue. Other U.S. workers' comp premiums was the main engine at $417.5M, or 49% of sales.
why growth slowed
Revenue fell 2.5% last year. $1.42 of quarterly EPS matters most because the full-year 2024 estimate is $4.71.
what just happened
Revenue hit $688M and EPS reached $1.42, but the bigger story is how lumpy this business can look quarter to quarter.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
45/100 earnings predictability — expect surprises
17.3x trailing p/e — the market's not buying it — or you found a deal
3.3% dividend yield — cash in your pocket every quarter
4.3% return on capital — nothing to write home about
xvary composite: 67/100 — average
What they do
It sells workers' compensation insurance to small and mid-sized businesses and invests the float while claims work their way through the system.
This is a narrow business, and that is the point. Employers focuses on low-to-medium hazard industries, has 100+ years of workers' comp experience on its website, and serves a coverage line most employers are legally required to buy. If you run payroll, you need this insurance, and that makes demand stickier than a normal optional product.
How they make money
$859M
annual revenue · their business grew -2.5% last year
California workers' comp premiums
$355.6M
flat
Other U.S. workers' comp premiums
$417.5M
flat
Net investment income
$68.7M
up
Realized and unrealized investment gains
$17.2M
dn
The products that matter
core insurance coverage
Workers' Compensation Insurance
$859M · entire revenue base
It's the whole $859M business. That keeps the story easy to follow, but it also means the stock lives and dies on one product line.
100% of revenue
supplementary high-limit coverage
Excess Workers' Comp
launched feb 2026
This launched in Feb. 2026, so there is no disclosed revenue contribution in this snapshot yet. For now, it's a watchlist item, not part of the current $859M story.
too early to size
Key numbers
9.3x
2024 eps
Earnings per share → profit per share → so what: at $43.83, you are paying about 9.3 times the $4.71 2024 estimate.
46%
california mix
Almost half the premium base comes from one state, which makes your upside and downside unusually concentrated.
3.3%
dividend yield
Dividend yield → cash paid to you each year relative to the stock price → so what: you get paid while you wait, if underwriting stays stable.
4.3%
return on capital
Return on capital → profit on the money running the business → so what: this is cheap, but it is not a high-powered compounding machine.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 2 — safer than 80% of stocks
- price stability 85 / 100
B++ — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for EIG right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Revenue hit $688M and EPS reached $1.42, but the bigger story is how lumpy this business can look quarter to quarter.
EDGAR shows latest-quarter revenue of $688M, up 188% vs. prior year, and EPS of $1.42, up 494%. Value Line's 2024 quarterly EPS line was steadier at $1.11, $1.25, $1.21, and $1.14, which is a nice reminder that insurance math loves timing.
$688M
revenue
$1.42
eps
+188%
revenue growth
the number that mattered
$1.42 of quarterly EPS matters most because the full-year 2024 estimate is $4.71, so one quarter supplied about 30% of that total.
source: company earnings report, 2026
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What could go wrong
the top risk is profit margin contraction in workers' comp.
high
profit margin contraction
Net margin fell to 11.4% in Q3 2025 from 13.8% a year earlier. On a shrinking revenue base, that kind of compression hits fast.
puts the remaining $10.8M annual profit at risk of disappearing
med
revenue decline in a one-line business
$859M of annual revenue fell 2.5% last year. Because workers' comp is essentially the whole company, a weak top line is the whole story, not one chapter of it.
pressures the full $859M revenue base
med
dividend optics outrunning earnings reality
A 3.3% yield looks attractive. It also draws attention to a stock whose trailing earnings just fell 90.3%. If profits stay this thin, the income story gets harder to defend.
turns the yield from a cushion into a question mark
low
new product contribution may stay immaterial
Excess Workers' Comp launched in Feb. 2026, but this snapshot gives no revenue contribution yet. That means you should treat it as optionality, not a fix for today's numbers.
adds little if the core book keeps weakening
shrinking margins and shrinking revenue are squeezing a business that produced only $10.8M of annual profit on $859M of revenue.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
profit recovery from the $10.8M baseline
This is the number to watch first. A one-line insurer does not need heroic growth, but it does need profits that look sturdier than $10.8M.
calendar
Q1 2026 earnings report
Expected on or around Apr. 30, 2026. You want to see whether the Q4 loss was a wobble or the start of a weaker earnings run.
trend
Excess Workers' Comp adoption
The product launched in Feb. 2026. Early traction matters because right now the current revenue mix is still basically one line item.
risk
dividend support versus earnings pressure
$0.32 each quarter is attractive on paper. If earnings stay weak, the market will stop treating that 3.3% yield like free money.
Analyst rankings
earnings predictability
45 / 100
Low predictability means the business has not delivered smooth earnings. In human-speak: analysts don't trust the profit line to behave.
risk rank
2
This score says the stock screens safer than most. In human terms: the balance sheet looks steadier than the earnings.
price stability
85 / 100
The share price has been relatively calm. That's useful if you own it for income, but calm prices do not fix weak underwriting results.
source: institutional data
Institutional activity
institutional ownership data for EIG is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$44
current price
n/a
target midpoint · n/a from current
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