Employers
Employers' revenue fell 2.5% to $859 million in fiscal 2025. Its net margin was 1.3%, down from 13.5% a year earlier. Free cash flow was $45 million, down 41.5%. It paid out $213 million in dividends and buybacks, 477% of free cash flow. The diluted share count fell 6.6%.
Net margin is net income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on capital is after-tax operating income as a share of the money invested in the business: debt plus equity, minus cash. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.
Charts show fiscal years, from the 10-K filings.
What Employers does
Employers Holdings is an insurance holding company based in Reno, Nevada. Its subsidiaries specialize in workers' compensation insurance, which pays for medical care and lost wages when employees are hurt at work. They focus on small and mid-sized businesses in lower-hazard industries. In February 2026 it launched an excess workers' compensation product for self-insured enterprises.
It makes money by selling policies and collecting premiums, and by investing the premiums until claims are paid. It sells through traditional insurance agents, specialty agents, brokers and other distribution partners. It sells only one line of insurance. It operates in all states except North Dakota, Ohio, Washington and Wyoming, which are served only by state funds. Its business is concentrated in California.
It sells through five insurance companies, each of which has a financial strength rating of A (Excellent) from the rating firm AM Best.
Its biggest risks, as it describes them
- Pricing its policies too low could badly hurt its results.
- Selling a single line of insurance in a competitive market limits its ability to charge adequate rates.
- Its business is concentrated in California, tying results to that state's economy and rules.
- Its estimate of future claims could prove too low.
- A downgrade in its financial strength rating could cut the business it can write.
Income statement
From fiscal 2016 to 2025, earnings per share fell 19.5% a year and net income 22.5% a year, while buybacks cut the share count by 29%.
Returns on capital
Balance sheet
Five years at a glance
| Fiscal year end | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Cash and short-term investments | 86 | 208 | 260 | 68 | 170 |
| Debt incl. finance leases | — | — | — | 0 | 35 |
| Net debt (negative means net cash) | — | — | — | −68 | −135 |
| Net debt to EBITDA | — | — | — | −0.4x | −5.0x |
| Debt to equity | — | — | — | 0.0x | 0.0x |
| Interest coverage | 295.0x | 16.9x | 26.6x | 1,468.0x | 25.0x |
| Current ratio | — | — | — | — | — |
| Quick ratio | — | — | — | — | — |
Cash flow
Projections
Project Employers' revenue, net income and earnings per share five years ahead in a bull, a base and a bear case with your own figures, and see the share prices your P/E estimates give them, or value it with a discounted cash flow model. Every projected figure is yours: it is not a forecast of ours.
Insider trades
Over the 12 months between November 7, 2025 and November 6, 2026, 1 insider bought $79,460 of Employers shares on the open market, and 2 insiders sold $375,910.
| Date | Insider | Trade | Shares | Price | Value | Filing |
|---|---|---|---|---|---|---|
| Mar 10, 2026 | Christina M. OzunaChief Claims Officer | Sold | 4,500 | $39.88 | $179,460 | Form 4 |
| Mar 9, 2026 | Ann Marie SmithChief Actuarial and UW Officer | Sold | 5,000 | $39.29 | $196,450 | Form 4 |
| Feb 24, 2026 | Michael PedrajaEVP, Chief Financial Officer | Bought | 2,000 | $39.73 | $79,460 | Form 4 |
Indicators
Four widely used measures, worked out from the company's filings. The cutoffs are the ones their authors or users go by, not a verdict of ours.
| Indicator | FY23 | FY24 | FY25 |
|---|---|---|---|
| Piotroski F-score | — | — | — |
| Rule of 40 | 25.1% | 12.2% | 2.7% |
| Altman Z'' | — | — | — |
| Accruals ratio | 1.9% | 1.2% | −1.0% |
The nine F-score tests
| Test | FY23 | FY24 | FY25 |
|---|---|---|---|
| Net income is positive | Pass | Pass | Pass |
| Cash from operations is positive | Pass | Pass | Pass |
| Return on assets rose | Pass | Pass | Fail |
| Cash from operations exceeds net income | Fail | Fail | Pass |
| Debt fell relative to assets | — | — | Fail |
| Current ratio rose | — | — | — |
| Share count didn't rise | Pass | Pass | Pass |
| Gross margin rose | — | — | — |
| Revenue rose relative to assets | Pass | Pass | Fail |
| F-score | — | — | — |
Compare
Put Employers side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.
Similar companies
| Company | Year | Revenue growth | Operating margin | Free cash flow margin | Return on capital | Net debt to EBITDA | F-score | Compare |
|---|---|---|---|---|---|---|---|---|
| Employers | FY25 | −2.5% | — | 5.2% | 1.2% | −5.0x | — | |
| Palomar | FY25 | 58.2% | — | 46.7% | — | — | — | Compare |
| HCI Group | FY25 | 20.1% | — | 48.9% | — | −2.6x | — | Compare |
| Lemonade | FY25 | 40.1% | — | −3.5% | — | — | — | Compare |
| Assured Guaranty | FY25 | 27.3% | — | — | 10.2% | — | — | Compare |
10 years of figures
| Fiscal year | FY16 | FY17 | FY18 | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|---|---|---|---|---|
| Income statement | ||||||||||
| Revenue | 780 | 801 | 800 | 836 | 711 | 703 | 714 | 851 | 881 | 859 |
| Revenue growth | 3.7% | 2.8% | −0.1% | 4.4% | −14.9% | −1.2% | 1.5% | 19.3% | 3.5% | −2.5% |
| Gross profit | — | — | — | — | — | — | — | — | — | — |
| Research and development | — | — | — | — | — | — | — | — | — | — |
| Operating income | — | — | — | — | — | — | — | — | — | — |
| Net income | 107 | 101 | 141 | 157 | 120 | 119 | 48 | 118 | 119 | 11 |
| Diluted EPS (US$) | 3.24 | 3.06 | 4.24 | 4.83 | 3.97 | 4.17 | 1.75 | 4.45 | 4.71 | 0.46 |
| Diluted shares (millions) | 33 | 33 | 33 | 32 | 30 | 29 | 28 | 26 | 25 | 24 |
| Cash flow | ||||||||||
| Cash from operations | 123 | 142 | 180 | 122 | 33 | 11 | 100 | 49 | 76 | 45 |
| Capital expenditure | 1 | 0 | 0 | 1 | 0 | 0 | 0 | 0 | 0 | 0 |
| Free cash flow | 122 | 142 | 180 | 122 | 33 | 10 | 100 | 49 | 76 | 45 |
| Dividends paid | 12 | 20 | 27 | 28 | 30 | 29 | 90 | 30 | 30 | 30 |
| Share buybacks | 21 | 0 | 4 | 68 | 99 | 43 | 30 | 76 | 43 | 183 |
| Acquisitions | 0 | 0 | 0 | 16 | 0 | 0 | 0 | 0 | 0 | 0 |
| Stock-based compensation | 6 | 7 | 9 | 10 | 10 | 9 | 5 | 6 | 6 | 5 |
| Balance sheet at fiscal year end | ||||||||||
| Cash and short-term investments | 83 | 77 | 126 | 155 | 187 | 86 | 208 | 260 | 68 | 170 |
| Debt incl. finance leases | — | — | — | — | — | — | — | — | 0 | 35 |
| Total assets | 3,773 | 3,840 | 3,919 | 4,004 | 3,923 | 3,783 | 3,717 | 3,550 | 3,541 | 3,437 |
| Total liabilities | 2,933 | 2,892 | 2,901 | 2,838 | 2,710 | 2,570 | 2,772 | 2,536 | 2,473 | 2,481 |
| Shareholders' equity | 841 | 948 | 1,018 | 1,166 | 1,213 | 1,213 | 944 | 1,014 | 1,069 | 956 |
| Margins and ratios | ||||||||||
| Gross margin | — | — | — | — | — | — | — | — | — | — |
| Operating margin | — | — | — | — | — | — | — | — | — | — |
| Net margin | 13.7% | 12.6% | 17.6% | 18.8% | 16.8% | 17.0% | 6.8% | 13.9% | 13.5% | 1.3% |
| Free cash flow margin | 15.7% | 17.7% | 22.5% | 14.6% | 4.6% | 1.5% | 14.0% | 5.8% | 8.7% | 5.2% |
| Rule of 40 (growth + FCF margin) | 19.3% | 20.5% | 22.4% | 19.0% | −10.3% | 0.3% | 15.4% | 25.1% | 12.2% | 2.7% |
| Return on capital | — | — | — | — | — | — | — | — | — | 1.2% |
| Return on equity | 13.3% | 11.3% | 14.4% | 14.4% | 10.1% | 9.8% | 4.5% | 12.1% | 11.4% | 1.1% |
| Return on assets | 2.8% | 2.7% | 3.6% | 4.0% | 3.0% | 3.1% | 1.3% | 3.2% | 3.3% | 0.3% |
| Net debt to EBITDA | — | — | — | — | — | — | — | — | −0.4x | −5.0x |