# EDGAR Filing Document

**Accession Number:** 0001379041
**File Stem:** 0001379041-23-000015
**Filing Date:** 2023-2
**Character Count:** 58015
**Document Hash:** abb39471a03f22a43a68090611b141fa
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001379041-23-000015.hdr.sgml**: 20230216

**ACCESSION NUMBER**: 0001379041-23-000015

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 16

**CONFORMED PERIOD OF REPORT**: 20230216

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Other Events

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230216

**DATE AS OF CHANGE**: 20230216

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Employers Holdings, Inc.
- **CENTRAL INDEX KEY:** 0001379041
- **STANDARD INDUSTRIAL CLASSIFICATION:** FIRE, MARINE & CASUALTY INSURANCE [6331]
- **IRS NUMBER:** 043850065
- **STATE OF INCORPORATION:** NV
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-33245
- **FILM NUMBER:** 23638757

**BUSINESS ADDRESS:**
- **STREET 1:** 10375 PROFESSIONAL CIRCLE
- **CITY:** RENO
- **STATE:** NV
- **ZIP:** 89521
- **BUSINESS PHONE:** 775-327-2936

**MAIL ADDRESS:**
- **STREET 1:** 10375 PROFESSIONAL CIRCLE
- **CITY:** RENO
- **STATE:** NV
- **ZIP:** 89521

?xml version="1.0" ? eig-20230216

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**——————**

**FORM 8-K**

**——————**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

**——————**

**Date of report (Date of earliest event reported): February 16, 2023** 

**EMPLOYERS HOLDINGS, INC.** 

(Exact Name of Registrant as Specified in its Charter)

**——————**

---

| | | | |
|:---|:---|:---|:---|
| **Nevada** | **Nevada** | **Nevada** | **Nevada** |
| (State or Other Jurisdiction of Incorporation) | (State or Other Jurisdiction of Incorporation) | (State or Other Jurisdiction of Incorporation) | (State or Other Jurisdiction of Incorporation) |
| **001-33245** | | | **04-3850065** |
| (Commission File Number) | | | (I.R.S. Employer Identification No.) |
| **10375 Professional Circle** | **10375 Professional Circle** | **10375 Professional Circle** | **10375 Professional Circle** |
| | **Reno,** | **Nevada** | |
| (Address of Principal Executive Offices) | (Address of Principal Executive Offices) | (Address of Principal Executive Offices) | (Address of Principal Executive Offices) |
| | **89521** | **89521** | |
| | (Zip Code) | (Zip Code) | |

---

Registrant's telephone number including area code: **(888) 682-6671** 

**No change since last report**

(Former Name or Address, if Changed Since Last Report)

**——————**

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| Common Stock, $0.01 par value per share | EIG | New York Stock Exchange |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. □

------

**Section 2 – Financial Information**

**Item 2.02.&nbsp;&nbsp;&nbsp;&nbsp;Results of Operations and Financial Condition.**

On February 16, 2023, Employers Holdings, Inc. (the "Company") issued a press release and financial supplement announcing results for the fourth quarter and fiscal year ended December 31, 2022. The press release and financial supplement are attached hereto as Exhibits 99.1 and 99.2, respectively, and are incorporated herein by reference, and are being furnished, not filed, under Item 2.02 to this Current Report on Form 8-K.

**Section 8 – Other Information**

**Item 8.01.&nbsp;&nbsp;&nbsp;&nbsp;Other Events.**

On February 15, 2023, the Company's Board of Directors declared a first quarter 2023 cash dividend of $0.26 per share on the Company's common stock. The dividend is payable on March 15, 2023 to stockholders of record as of March 1, 2023.

**Section 9 – Financial Statements and Exhibits**

**Item 9.01.&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements and Exhibits.**

99.1&nbsp;&nbsp;&nbsp;&nbsp;Employers Holdings, Inc. press release, dated February 16, 2023.

99.2&nbsp;&nbsp;&nbsp;&nbsp;Employers Holdings, Inc. financial supplement, dated February 16, 2023.

**SIGNATURE**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
| <br>EMPLOYERS HOLDINGS, INC. | <br>EMPLOYERS HOLDINGS, INC. | |
| Dated: | February 16, 2023 | /s/ Michael S. Paquette |
| | | Michael S. Paquette |
| | | Executive Vice President, |
| | | Chief Financial Officer |

---

**Exhibit Index**

---

| | | |
|:---|:---|:---|
| <u>Exhibit No.</u> | <u>Exhibit</u> | |
| 99.1 | <u>[Employers Holdings, Inc. press release, dated](ex991_pressxreleasex202212.htm)</u> | February 16, 2023 |
| 99.2 | <u>[Employers Holdings, Inc. financial supplement, dated](ex992_finsupplementx202212.htm)</u> | February 16, 2023 |

---

## Exhibit 99.1

![employerslogo12312019b.jpg](employerslogo12312019b.jpg)**Exhibit 99.1**

*news release*

For Immediate Release

**Employers Holdings, Inc. Reports Fourth Quarter 2022 and Full-Year Financial Results;** 

**Declares Quarterly Cash Dividend of $0.26 per Share**

**Company to Host Conference Call on Friday, February 17, 2023, at 11:00 a.m. Eastern Standard Time**

**Reno, Nevada – February 16, 2023 – Employers Holdings, Inc. (the "Company") (NYSE:EIG),** a holding company with subsidiaries that are specialty providers of workers' compensation insurance and services focused on select, small businesses engaged in low-to-medium hazard industries, today reported financial results for its fourth quarter and year ended December 31, 2022.

**Fourth Quarter 2022 Financial Highlights**

• Net income of $47.2 million, or $1.72 per diluted share;

• Adjusted net income of $34.4 million, or $1.25 per diluted share;

• Net investment income of $27.0 million, up 53% year-over-year;

• Net realized and unrealized gains on investments recorded through the income statement of $13.7 million;

• Gross premiums written of $173.8 million, up 22% year-over-year;

• Net premiums earned of $181.1 million, up 16% year-over-year;

• Favorable prior year loss reserve development of $23.2 million, versus $24.2 million a year ago;

• Returned $43.6 million to stockholders through a combination of share repurchases, quarterly and special dividends.

**Full-Year 2022 Financial Highlights**

• Net income of $48.4 million, or $1.75 per diluted share;

• Adjusted net income of $81.0 million, or $2.93 per diluted share;

• Net investment income of $89.8 million, up 24% year-over-year;

• Net realized and unrealized losses on investments recorded through the income statement of $51.8 million;

• Gross premiums written of $714.2 million, up 21% year-over-year;

• Net premiums earned of $675.2 million, up 18% year-over-year;

• Record number of ending policies in-force of 121,356, up 9% year-over-year;

• Favorable prior year loss reserve development of $33.5 million, versus $39.8 million a year ago;

• Returned $121.7 million to stockholders through a combination of share repurchases, quarterly and special dividends;

• Adjusted Book value per share of $43.78, up 3.0% year-over-year including dividends declared.

**CEO Commentary**

Chief Executive Officer Katherine Antonello commented: "We are pleased with our fourth quarter and full-year 2022 results and closed the year with strong revenue growth driven by sharp increases in both premium writings and net investment income. The growth in written premium in 2022 resulted from a 16% increase in new business coupled with an 8% increase in renewal business, and notable audit premium recognition.

"We maintained our current accident year loss and loss adjustment expense ratio on voluntary business at 64.0%, largely consistent with the 63.5% we recorded throughout 2021. During the fourth quarter, we recognized $23.2 million of net favorable prior year loss reserve development resulting from lower-than-expected loss emergence."

Ms. Antonello continued, "Underwriting discipline remains a top priority as we continue to thoughtfully execute our growth strategy for both Employers and Cerity. The higher premium we experienced throughout 2022, along with our strict focus on managing our fixed expenses, resulted in a consolidated underwriting and general and administrative expense ratio of 24.7% for 2022, far lower than any other year since 2018.

------

"Our Cerity operating segment, which offers direct-to-consumer digital workers' compensation insurance solutions, continues to successfully grow its business within our targeted low-to-medium hazard groups. Cerity's written premium increased to $6.7 million in 2022, from just $1.5 million in 2021.

"Our active capital management efforts throughout 2022, which consisted of $30.4 million of share repurchases, $28.8 million of regular quarterly dividends and $61.5 million of special dividends, coupled with the greater economies of scale we are achieving, bode well for the future of Employers. Our strong balance sheet and abundant underwriting capital are highly supportive of our plans for continued growth and success. Finally, I want to thank our dedicated employees for an outstanding 2022. The unwavering service you provide our agents, our policyholders and their injured workers drive our continued success."

**Summary of Consolidated Fourth Quarter 2022 Results**

(All comparisons vs. fourth quarter 2021, unless noted otherwise).

Gross premiums written were $173.8 million, an increase of 22%. The increase was primarily due to higher new and renewal business writings and higher final audit premiums. Net earned premiums were $181.1 million, an increase of 16%.

Losses and loss adjustment expenses were $91.2 million, an increase of 29%. The increase was primarily due to higher earned premium and lower favorable prior year loss reserve development. The Company recognized $23.2 million of favorable prior year loss reserve development during the quarter versus $24.2 million a year ago.

Commission expenses were $26.0 million, an increase of 21%. The increase was primarily due to higher earned premiums and higher 2022 agency incentive accruals.

Underwriting and general and administrative expenses were $46.7 million, an increase of 19%. The increase resulted primarily from higher premium taxes, assessments, policyholder dividends and bad debt expenses, each of which vary with earned premium.

Net investment income was $27.0 million, an increase of 53%. The increase was due to higher bond yields and higher invested balances of fixed maturity securities, short-term investments and cash and cash equivalents, as measured by amortized cost.

Income tax expense was $8.7 million (15.6% effective rate) versus $13.6 million (19.9% effective rate). The effective rates in each period included income tax benefits and exclusions associated with tax-advantaged investment income, LPT adjustments, and deferred gain amortization. The effective rate in the fourth quarter of 2022 further benefited from pre-privatization favorable prior year loss and loss adjustment expense reserve adjustments and a non-recurring tax benefit attributable to the repeal of Internal Revenue Code section 847.

The Company's book value per share including the deferred gain of $38.67 decreased by 12.3% during 2022, computed after taking into account dividends declared. This measure was adversely impacted by $202.3 million of after-tax unrealized losses arising from fixed maturity securities (which are reflected on the balance sheet) and $38.2 million of net after tax unrealized losses arising from equity securities and other investments (which are reflected on the income statement). The Company's adjusted book value per share of $43.78 increased by 3.0% during 2022, computed after taking into account dividends declared. This measure was adversely impacted by $38.2 million of net after tax unrealized losses arising from equity securities and other investments (which are reflected on the income statement).

**Summary of Fourth Quarter 2022 Results by Segment**

(see page 16 of the Financial Supplement for a description of our reportable segments. All comparisons are vs. fourth quarter 2021, unless noted otherwise).

**Employers Segment**

The Employers segment reported net income before income taxes of $58.7 million versus $69.7 million.

Highlights included the following:

–Underwriting income of $24.2 million versus $27.5 million;

–Calendar year combined ratio of 86.6% versus 82.4%;

–Current accident year loss and loss adjustment expense ratio of 64.3% versus 64.2%;

–Favorable prior year loss reserve development of 12.8 percentage points versus 15.6 percentage points;

–Commission expense ratio of 14.5% versus 13.7%;

–Underwriting expense ratio of 20.6% versus 20.1%;

–Net investment income of $24.3 million versus $16.7 million; and

–Net realized and unrealized gains on investments of $12.0 million versus $24.8 million.

------

**Cerity Segment**

The Cerity segment reported a net loss before income tax of $1.6 million versus $2.4 million.

Highlights included the following:

–Underwriting loss of $3.3 million versus $3.2 million;

–Gross premiums written of $3.2 million versus $0.5 million;

–Consistent current accident year loss and loss adjustment expense ratios to that of the Employers segment;

–Favorable prior year loss reserve development of $0.1 million,

–Net investment income of $1.4 million versus $0.7 million; and

–Net realized and unrealized gains on investments of $0.3 million versus $0.1 million.

**Corporate and Other**

Corporate and Other activities reported net income (loss) before income taxes of $(1.2) million versus $1.1 million. Highlights included the following:

–LPT amortization, which served to reduce losses and loss adjustment expenses, of $2.0 million versus $5.4 million;

–Net investment income of $1.3 million versus $0.3 million;

–Net realized and unrealized gains on investments of $1.4 million versus $0.1 million, and

–General and administrative expenses of $5.7 million versus $4.6 million.

**Share Repurchases and First Quarter 2023 Dividend Declarations**

During the fourth quarter of 2022, the Company repurchased 40,355 shares of its common stock at an average price of $42.15 per share. During the period from January 1, 2023 through February 15, 2023, the Company repurchased a further 98,631 shares of its common stock at an average price of $42.75 per share. The Company currently has a remaining share repurchase authorization of $43.2 million.

On February 15, 2023, the Board of Directors declared a first quarter 2023 dividend of $0.26 per share. The dividend is payable on March 15, 2023 to stockholders of record as of March 1, 2023.

**Earnings Conference Call and Webcast**

The Company will host a conference call on Friday, February 17, 2023 at 11:00 a.m. Eastern Standard Time / 8:00 a.m. Pacific Standard Time.

To participate in the live conference call you must first register*<u>here</u>*. Once registered you will receive dial-in numbers and a unique PIN number.

The webcast will be accessible on the Company's web site at *<u>www.employers.com</u>* through the "<u>Investors</u>" link. An archived version of the webcast will be accessible on the Company's website following the live call.

**Reconciliation of Non-GAAP Financial Measures to GAAP**

The information in this press release should be read in conjunction with the Financial Supplement that is attached to this press release and available on our website.

Within this earnings release we present various financial measures, some of which are "non-GAAP financial measures" as defined in Regulation G pursuant to Section 401 of the Sarbanes - Oxley Act of 2002. A description of these non-GAAP financial measures, as well as a reconciliation of such non-GAAP measures to our most directly comparable GAAP financial measures is included in the attached Financial Supplement. 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.

**Forward-Looking Statements**

In this press release, the Company and its management discuss and make statements based on currently available information regarding their intentions, beliefs, current expectations, and projections of, among other things, the Company's future performance, including the effects of the Coronavirus (COVID-19) pandemic, business growth, retention rates, loss costs, claim trends and the impact of key business initiatives, future technologies and planned investments. Certain of these statements may constitute "forward-looking" statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and are often identified by words such as "may," "will," "could," "would," "should," "expect," "plan," "anticipate," "target," "project,"

------

"intend," "believe," "estimate," "predict," "potential," "*pro forma*," "seek," "likely," or "continue," or other comparable terminology and their negatives. The Company and its management caution investors that such forward-looking statements are not guarantees of future performance. Risks and uncertainties are inherent in the Company's future performance. Factors that could cause the Company's actual results to differ materially from those indicated by such forward-looking statements include, among other things, those discussed or identified from time to time in the Company's public filings with the SEC, including the risks detailed in the Company's Quarterly Reports on Form 10-Q and the Company's Annual Reports on Form 10-K. Except as required by applicable securities laws, the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

**Filings with the SEC**

The Company's filings with the SEC and its quarterly investor presentations can be accessed through the "Investors" link on the Company's website, *<u>www.employers.com.</u>* The Company's filings with the SEC can also be accessed through the SEC's EDGAR Database at *<u>www.sec.gov</u>* (EDGAR CIK No. 0001379041).

**About Employers Holdings, Inc.**

EMPLOYERS® and America's small business insurance specialist® are registered trademarks of EIG Services, Inc. Employers Holdings, Inc. is a holding company with subsidiaries that are specialty providers of workers' compensation insurance and services focused on select, small businesses engaged in low-to-medium hazard industries. The Company operates throughout the United States, with the exception of four states that are served exclusively by their state funds. Insurance is offered through Employers Insurance Company of Nevada, Employers Compensation Insurance Company, Employers Preferred Insurance Company, Employers Assurance Company and Cerity Insurance Company, all rated A- (Excellent) by the A.M. Best Company. Not all companies do business in all jurisdictions. See *<u>www.employers.com</u>* and *<u>www.cerity.com</u>* for coverage availability.

**Contact Information**

Company Contact:

Mike Paquette (775) 327-2562 or <u>mpaquette@employers.com</u>

Investor Relations Contact:

Karin Daly, The Equity Group Inc. (212) 836-9632 or kdaly<u>@equityny.com</u>

## Exhibit 99.2

**Exhibit 99.2**

**Employers Holdings, Inc.**

Fourth Quarter and Full Year 2022

Financial Supplement

February 16, 2023

![employerslogo12312019.jpg](employerslogo12312019.jpg)

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**EMPLOYERS HOLDINGS, INC.**

**Table of Contents**

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| | |
|:---|:---|
| **Page** | |
| **<u>[3](#i2270087d16784f72a956b47306f753d3_10)</u>** | Consolidated Financial Highlights |
| **<u>[4](#i2270087d16784f72a956b47306f753d3_13)</u>** | Summary Consolidated Balance Sheets |
| **<u>[5](#i2270087d16784f72a956b47306f753d3_16)</u>** | Summary Consolidated Income Statements |
| **<u>6-9</u>** | Net Income Before Income Taxes by Segment |
| **<u>[10](#i2270087d16784f72a956b47306f753d3_25)</u>** | Return on Equity |
| **<u>[11](#i2270087d16784f72a956b47306f753d3_28)</u>** | Roll-forward of Unpaid Losses and LAE |
| **<u>[12](#i2270087d16784f72a956b47306f753d3_31)</u>** | Consolidated Investment Portfolio |
| **<u>[13](#i2270087d16784f72a956b47306f753d3_34)</u>** | Book Value Per Share |
| **<u>[14](#i2270087d16784f72a956b47306f753d3_37)</u>** | Earnings Per Share |
| **<u>[15](#i2270087d16784f72a956b47306f753d3_40)</u>** | Non-GAAP Financial Measures |
| **<u>[16](#i2270087d16784f72a956b47306f753d3_43)</u>** | Description of Reportable Segments |

---

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**EMPLOYERS HOLDINGS, INC.**

**Consolidated Financial Highlights (unaudited)**

**$ in millions, except per share amounts**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | | **Years Ended** | **Years Ended** | |
| | **December 31,** | **December 31,** | | **December 31,** | **December 31,** | |
| | **2022** | **2021** |<br>**% change** | **2022** | **2021** |<br>**% change** |
| ***Selected financial highlights:*** |  |  |  |  |  |  |
| Gross premiums written | $173.8 | $142 | 22% | $714.2 | $589.7 | 21% |
| Net premiums written | 171.9 | 140.4 | 22 | 707.2 | 583.1 | 21 |
| Net premiums earned | 181.1 | 156.4 | 16 | 675.2 | 574.4 | 18 |
| Net investment income | 27.0 | 17.7 | 53 | 89.8 | 72.7 | 24 |
| Net income before impact of the LPT<sup>(1)</sup> | 45.2 | 49.5 | (9) | 40.1 | 107.8 | (63) |
| Adjusted net income<sup>(1)</sup> | 34.4 | 29.8 | 15 | 81.0 | 67.9 | 19 |
| Net income before income taxes | 55.9 | 68.4 | (18) | 55.8 | 147.0 | (62) |
| Net income | 47.2 | 54.8 | (14) | 48.4 | 119.3 | (59) |
| Comprehensive income (loss) | 67.2 | 37.0 | 82 | (151.1) | 64.8 | (333) |
| Total assets |  |  |  | 3716.7 | 3783.2 | (2) |
| Stockholders' equity |  |  |  | 944.2 | 1213.1 | (22) |
| Stockholders' equity including the Deferred Gain<sup>(2)</sup> |  |  |  | 1050.3 | 1327.5 | (21) |
| Adjusted stockholders' equity<sup>(2)</sup> |  |  |  | 1189.2 | 1266.9 | (6) |
| Annualized adjusted return on stockholders' equity<sup>(3)</sup> | 11.6% | 9.5% | 22% | 6.6% | 5.5% | 20 |
| ***Amounts per share:*** |  |  |  |  |  |  |
| Cash dividends declared per share | $1.51 | $0.25 | 504% | $3.28 | $1.00 | 228% |
| Earnings per diluted share<sup>(4)</sup> | 1.72 | 1.94 | (11) | 1.75 | 4.17 | (58) |
| Earnings per diluted share before impact of the LPT<sup>(4)</sup> | 1.65 | 1.76 | (6) | 1.45 | 3.77 | (62) |
| Adjusted earnings per diluted share<sup>(4)</sup> | 1.25 | 1.06 | 18 | 2.93 | 2.37 | 24 |
| Book value per share<sup>(2)</sup> |  |  |  | 34.76 | 43.73 | (21) |
| Book value per share including the Deferred Gain<sup>(2)</sup> |  |  |  | 38.67 | 47.85 | (19) |
| Adjusted book value per share<sup>(2)</sup> |  |  |  | 43.78 | 45.67 | (4) |
| ***Financial information by Segment***<sup>(5)</sup>***:*** |  |  |  |  |  |  |
| Net income (loss) before income taxes: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Employers | $58.7 | $69.7 | (16)% | $75.3 | $161.3 | (53)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Cerity | (1.6) | (2.4) | 33 | (9.9) | (9.6) | (3) |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate and Other | (1.2) | 1.1 | (209)% | (9.6) | (4.7) | (104) |
| (1) See Page 5 for calculations and Page 15 for information regarding our use of Non-GAAP Financial Measures. | (1) See Page 5 for calculations and Page 15 for information regarding our use of Non-GAAP Financial Measures. | (1) See Page 5 for calculations and Page 15 for information regarding our use of Non-GAAP Financial Measures. | (1) See Page 5 for calculations and Page 15 for information regarding our use of Non-GAAP Financial Measures. | (1) See Page 5 for calculations and Page 15 for information regarding our use of Non-GAAP Financial Measures. | (1) See Page 5 for calculations and Page 15 for information regarding our use of Non-GAAP Financial Measures. | (1) See Page 5 for calculations and Page 15 for information regarding our use of Non-GAAP Financial Measures. |
| (2) See Page 13 for calculations and Page 15 for information regarding our use of Non-GAAP Financial Measures. | (2) See Page 13 for calculations and Page 15 for information regarding our use of Non-GAAP Financial Measures. | (2) See Page 13 for calculations and Page 15 for information regarding our use of Non-GAAP Financial Measures. | (2) See Page 13 for calculations and Page 15 for information regarding our use of Non-GAAP Financial Measures. | (2) See Page 13 for calculations and Page 15 for information regarding our use of Non-GAAP Financial Measures. | (2) See Page 13 for calculations and Page 15 for information regarding our use of Non-GAAP Financial Measures. | (2) See Page 13 for calculations and Page 15 for information regarding our use of Non-GAAP Financial Measures. |
| (3) See Page 10 for calculations and Page 15 for information regarding our use of Non-GAAP Financial Measures. | (3) See Page 10 for calculations and Page 15 for information regarding our use of Non-GAAP Financial Measures. | (3) See Page 10 for calculations and Page 15 for information regarding our use of Non-GAAP Financial Measures. | (3) See Page 10 for calculations and Page 15 for information regarding our use of Non-GAAP Financial Measures. | (3) See Page 10 for calculations and Page 15 for information regarding our use of Non-GAAP Financial Measures. | (3) See Page 10 for calculations and Page 15 for information regarding our use of Non-GAAP Financial Measures. | (3) See Page 10 for calculations and Page 15 for information regarding our use of Non-GAAP Financial Measures. |
| (4) See Page 14 for calculations and Page 15 for information regarding our use of Non-GAAP Financial Measures. | (4) See Page 14 for calculations and Page 15 for information regarding our use of Non-GAAP Financial Measures. | (4) See Page 14 for calculations and Page 15 for information regarding our use of Non-GAAP Financial Measures. | (4) See Page 14 for calculations and Page 15 for information regarding our use of Non-GAAP Financial Measures. | (4) See Page 14 for calculations and Page 15 for information regarding our use of Non-GAAP Financial Measures. | (4) See Page 14 for calculations and Page 15 for information regarding our use of Non-GAAP Financial Measures. | (4) See Page 14 for calculations and Page 15 for information regarding our use of Non-GAAP Financial Measures. |
| (5) See Pages 6-9 for details and Page 16 for a description of our reportable segments. | (5) See Pages 6-9 for details and Page 16 for a description of our reportable segments. | (5) See Pages 6-9 for details and Page 16 for a description of our reportable segments. | (5) See Pages 6-9 for details and Page 16 for a description of our reportable segments. | (5) See Pages 6-9 for details and Page 16 for a description of our reportable segments. | (5) See Pages 6-9 for details and Page 16 for a description of our reportable segments. | (5) See Pages 6-9 for details and Page 16 for a description of our reportable segments. |

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**EMPLOYERS HOLDINGS, INC.**

**Summary Consolidated Balance Sheets (unaudited)**

**$ in millions, except per share amounts**

---

| | | |
|:---|:---|:---|
| | **December 31,<br>2022** | **December 31,<br>2021** |
| **ASSETS** | | |
| Available for sale: |  |  |
| Investments, cash and cash equivalents | $2658.2 | $2811.3 |
| Accrued investment income | 19.0 | 14.5 |
| Premiums receivable, net | 305.9 | 244.7 |
| Reinsurance recoverable, net of allowance, on paid and unpaid losses and LAE | 451.3 | 483.8 |
| Deferred policy acquisition costs | 48.3 | 43.7 |
| Deferred income taxes, net | 62.7 |  |
| Contingent commission receivable—LPT Agreement | 13.9 | 13.9 |
| Other assets | 157.4 | 171.3 |
| Total assets | $3716.7 | $3783.2 |
| **LIABILITIES** |  |  |
| Unpaid losses and LAE | $1960.7 | $1981.2 |
| Unearned premiums | 339.5 | 304.7 |
| Commissions and premium taxes payable | 58.2 | 42.1 |
| Deferred Gain | 106.1 | 114.4 |
| FHLB Advances <sup>(1)</sup> | 182.5 |  |
| Other liabilities | 125.5 | 127.7 |
| Total liabilities | $2772.5 | $2570.1 |
| **STOCKHOLDERS' EQUITY** |  |  |
| Common stock and additional paid-in capital | $415.2 | $411.3 |
| Retained earnings | 1295.6 | 1338.5 |
| Accumulated other comprehensive (loss) income, net | (138.9) | 60.6 |
| Treasury stock, at cost | (627.7) | (597.3) |
| Total stockholders' equity | 944.2 | 1213.1 |
| Total liabilities and stockholders' equity | $3716.7 | $3783.2 |
| Stockholders' equity including the Deferred Gain <sup>(2)</sup> | $1050.3 | $1327.5 |
| Adjusted stockholders' equity <sup>(2)</sup> | 1189.2 | 1266.9 |
| Book value per share <sup>(2)</sup> | $34.76 | $43.73 |
| Book value per share including the Deferred Gain <sup>(2)</sup> | 38.67 | 47.85 |
| Adjusted book value per share <sup>(2)</sup> | 43.78 | 45.67 |
| (1) FHLB = Federal Home Loan Bank | (1) FHLB = Federal Home Loan Bank | (1) FHLB = Federal Home Loan Bank |
| (2) See Page 13 for calculations and Page 15 for information regarding our use of Non-GAAP Financial Measures. | (2) See Page 13 for calculations and Page 15 for information regarding our use of Non-GAAP Financial Measures. | (2) See Page 13 for calculations and Page 15 for information regarding our use of Non-GAAP Financial Measures. |

---

------

**EMPLOYERS HOLDINGS, INC.**

**Summary Consolidated Income Statements (unaudited)**

**$ in millions**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Years Ended** | **Years Ended** |
| | **December 31,** | **December 31,** | **December 31,** | **December 31,** |
| | **2022** | **2021** | **2022** | **2021** |
| **Revenues:** |  |  |  |  |
| Net premiums earned | $181.1 | $156.4 | $675.2 | $574.4 |
| Net investment income | 27.0 | 17.7 | 89.8 | 72.7 |
| Net realized and unrealized gains (losses) on investments<sup>(1)</sup> | 13.7 | 25.0 | (51.8) | 54.6 |
| Other income |  | 0.7 | 0.3 | 1.4 |
| Total revenues | 221.8 | 199.8 | 713.5 | 703.1 |
| **Expenses:** |  |  |  |  |
| Losses and LAE incurred | (91.2) | (70.7) | (391.0) | (315.2) |
| Commission expense | (26.0) | (21.4) | (95.9) | (76.1) |
| Underwriting and general and administrative expenses | (46.7) | (39.2) | (167.3) | (160.2) |
| Interest and financing expenses | (2.0) | (0.1) | (3.5) | (0.5) |
| Other expenses |  |  |  | (4.1) |
| Total expenses | (165.9) | (131.4) | (657.7) | (556.1) |
| Net income before income taxes | 55.9 | 68.4 | 55.8 | 147.0 |
| Income tax expense | (8.7) | (13.6) | (7.4) | (27.7) |
| **Net income** | 47.2 | 54.8 | 48.4 | 119.3 |
| Unrealized AFS investment gains (losses) arising during the period, net of tax | 19.9 | (17.4) | (202.3) | (51.3) |
| Reclassification adjustment for realized AFS investment gains (losses) in net income, net of tax | 0.1 | (0.4) | 2.8 | (3.2) |
| **Total Comprehensive income (loss)** | $67.2 | $37.0 | $(151.1) | $64.8 |
| Net income | $47.2 | $54.8 | $48.4 | $119.3 |
| Amortization of the Deferred Gain - losses | (1.7) | (1.7) | (6.8) | (6.7) |
| Amortization of the Deferred Gain - contingent commission | (0.3) | (0.5) | (1.5) | (1.7) |
| LPT reserve adjustment |  | (2.6) |  | (2.6) |
| LPT contingent commission adjustments |  | (0.5) |  | (0.5) |
| **Net income before impact of the LPT Agreement** <sup>(2)</sup> | $45.2 | $49.5 | $40.1 | $107.8 |
| Net realized and unrealized (gains) losses on investments | (13.7) | (25.0) | 51.8 | (54.6) |
| Non-recurring severance costs and asset impairment charges |  |  |  | 4.1 |
| Income tax expense (benefit) related to items excluded from Net income  | 2.9 | 5.3 | (10.9) | 10.6 |
| **Adjusted net income** <sup>(2)</sup> | $34.4 | $29.8 | $81.0 | $67.9 |
| (1) Includes unrealized gains (losses) on equity securities and other invested assets of $16.9 million and $23.6 million for the three months ended December 31 2022 and 2021, respectively, and $(72.3) million and $34.9 million for the year ended December 31, 2022 and 2021, respectively | (1) Includes unrealized gains (losses) on equity securities and other invested assets of $16.9 million and $23.6 million for the three months ended December 31 2022 and 2021, respectively, and $(72.3) million and $34.9 million for the year ended December 31, 2022 and 2021, respectively | (1) Includes unrealized gains (losses) on equity securities and other invested assets of $16.9 million and $23.6 million for the three months ended December 31 2022 and 2021, respectively, and $(72.3) million and $34.9 million for the year ended December 31, 2022 and 2021, respectively | (1) Includes unrealized gains (losses) on equity securities and other invested assets of $16.9 million and $23.6 million for the three months ended December 31 2022 and 2021, respectively, and $(72.3) million and $34.9 million for the year ended December 31, 2022 and 2021, respectively | (1) Includes unrealized gains (losses) on equity securities and other invested assets of $16.9 million and $23.6 million for the three months ended December 31 2022 and 2021, respectively, and $(72.3) million and $34.9 million for the year ended December 31, 2022 and 2021, respectively |
| (2) See Page 15 regarding our use of Non-GAAP Financial Measures. |  |  |  |  |

---

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**EMPLOYERS HOLDINGS, INC.**

**Net Income Before Income Taxes by Segment**<sup>(1)</sup> **(unaudited)**

**$ in millions**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Year Ended December 31, 2022** | | **Employers** | **Cerity** | **Corporate and Other** | **Consolidated** |
| Gross premiums written |  | $707.5 | $6.7 | $— | $714.2 |
| Net premiums written |  | 700.5 | 6.7 |  | 707.2 |
| Net premiums earned | **A** | 672.1 | 3.1 |  | 675.2 |
| Net investment income |  | 82.1 | 4.1 | 3.6 | 89.8 |
| Net realized and unrealized losses on investments |  | (44.0) | (1.3) | (6.5) | (51.8) |
| Other income |  | 0.3 |  |  | 0.3 |
| Total revenues |  | 710.5 | 5.9 | (2.9) | 713.5 |
| Losses and LAE incurred | **B** | (397.5) | (1.8) | 8.3 | (391.0) |
| Commission expense | **C** | (95.8) | (0.1) |  | (95.9) |
| Underwriting expenses | **D** | (138.9) | (13.9) |  | (152.8) |
| General and administrative expenses |  |  |  | (14.5) | (14.5) |
| Interest and financing expenses |  | (3.0) |  | (0.5) | (3.5) |
| Total expenses |  | (635.2) | (15.8) | (6.7) | (657.7) |
| **Net income (loss) before income taxes** |  | $75.3 | $(9.9) | $(9.6) | $55.8 |
| **Underwriting income (loss)** | **A+B+C+D** | $39.9 | $(12.7) |  |  |
| Loss and LAE expense ratio: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current year |  | 64.1% | n/m |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior years |  | (5.0) | n/m |  |  |
| Loss and LAE ratio |  | 59.1 | n/m |  |  |
| Commission expense ratio |  | 14.3 | n/m |  |  |
| Underwriting expense ratio |  | 20.7 | n/m |  |  |
| **Combined ratio** |  | 94.1% | n/m |  |  |
| n/m - not meaningful |  |  |  |  |  |
| (1) See Page 16 for a description of our reportable segments. |  |  |  |  |  |

---

------

**EMPLOYERS HOLDINGS, INC.**

**Net Income Before Income Taxes by Segment**<sup>(1)</sup> **(unaudited)**

**$ in millions**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Year Ended December 31, 2021** | | **Employers** | **Cerity** | **Corporate and Other** | **Consolidated** |
| Gross premiums written |  | $588.2 | $1.5 | $— | $589.7 |
| Net premiums written |  | 581.6 | 1.5 |  | 583.1 |
| Net premiums earned | **A** | 573.7 | 0.7 |  | 574.4 |
| Net investment income |  | 69.3 | 2.8 | 0.6 | 72.7 |
| Net realized and unrealized gains (losses) on investments |  | 54.5 | 0.3 | (0.2) | 54.6 |
| Other income |  | 1.4 |  |  | 1.4 |
| Total revenues |  | 698.9 | 3.8 | 0.4 | 703.1 |
| Losses and LAE incurred | **B** | (326.2) | (0.5) | 11.5 | (315.2) |
| Commission expense | **C** | (76.1) |  |  | (76.1) |
| Underwriting expenses | **D** | (131.2) | (12.9) |  | (144.1) |
| General and administrative expenses |  |  |  | (16.1) | (16.1) |
| Interest and financing expenses |  |  |  | (0.5) | (0.5) |
| Other expenses |  | (4.1) |  |  | (4.1) |
| Total expenses |  | (537.6) | (13.4) | (5.1) | (556.1) |
| **Net income (loss) before income taxes** |  | $161.3 | $(9.6) | $(4.7) | $147.0 |
| **Underwriting income (loss)** | **A+B+C+D** | $40.2 | $(12.7) |  |  |
| Loss and LAE expense ratio: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current year |  | 63.8% | n/m |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior years |  | (6.9) |  |  |  |
| Loss and LAE ratio |  | 56.9 | n/m |  |  |
| Commission expense ratio |  | 13.3 | n/m |  |  |
| Underwriting expense ratio |  | 22.9 | n/m |  |  |
| **Combined ratio** |  | 93.1% | n/m |  |  |
| n/m - not meaningful |  |  |  |  |  |
| (1) See Page 16 for a description of our reportable segments. |  |  |  |  |  |

---

------

**EMPLOYERS HOLDINGS, INC.**

**Net Income Before Income Taxes by Segment**<sup>(1)</sup> **(unaudited)**

**$ in millions**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Three Months Ended December 31, 2022** | | **Employers** | **Cerity** | **Corporate and Other** | **Consolidated** |
| Gross premiums written |  | $170.6 | $3.2 | $— | $173.8 |
| Net premiums written |  | 168.8 | 3.1 |  | 171.9 |
| Net premiums earned | **A** | 180.0 | 1.1 |  | 181.1 |
| Net investment income |  | 24.3 | 1.4 | 1.3 | 27.0 |
| Net realized and unrealized gains on investments |  | 12.0 | 0.3 | 1.4 | 13.7 |
| Total revenues |  | 216.3 | 2.8 | 2.7 | 221.8 |
| Losses and LAE incurred | **B** | (92.7) | (0.5) | 2.0 | (91.2) |
| Commission expense | **C** | (26.1) | 0.1 |  | (26.0) |
| Underwriting expenses | **D** | (37.0) | (4.0) |  | (41.0) |
| General and administrative expenses |  |  |  | (5.7) | (5.7) |
| Interest and financing expenses |  | (1.8) |  | (0.2) | (2.0) |
| Total expenses |  | (157.6) | (4.4) | (3.9) | (165.9) |
| **Net income (loss) before income taxes** |  | $58.7 | $(1.6) | $(1.2) | $55.9 |
| **Underwriting income (loss)** | **A+B+C+D** | $24.2 | $(3.3) |  |  |
| Loss and LAE expense ratio: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current year |  | 64.3% | n/m |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior years |  | (12.8) | n/m |  |  |
| Loss and LAE ratio |  | 51.5 | n/m |  |  |
| Commission expense ratio |  | 14.5 | n/m |  |  |
| Underwriting expense ratio |  | 20.6 | n/m |  |  |
| **Combined ratio** |  | 86.6% | n/m |  |  |
| n/m - not meaningful |  |  |  |  |  |
| (1) See Page 16 for a description of our reportable segments. |  |  |  |  |  |

---

------

**EMPLOYERS HOLDINGS, INC.**

**Net Income Before Income Taxes by Segment**<sup>(1)</sup> **(unaudited)**

**$ in millions**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Three Months Ended December 31, 2021** | | **Employers** | **Cerity** | **Corporate and Other** | **Consolidated** |
| Gross premiums written |  | $141.5 | $0.5 | $— | $142 |
| Net premiums written |  | 139.9 | 0.5 |  | 140.4 |
| Net premiums earned | **A** | 156.1 | 0.3 |  | 156.4 |
| Net investment income |  | 16.7 | 0.7 | 0.3 | 17.7 |
| Net realized and unrealized gains on investments |  | 24.8 | 0.1 | 0.1 | 25.0 |
| Other income |  | 0.7 |  |  | 0.7 |
| Total revenues |  | 198.3 | 1.1 | 0.4 | 199.8 |
| Losses and LAE incurred | **B** | (75.9) | (0.2) | 5.4 | (70.7) |
| Commission expense | **C** | (21.4) |  |  | (21.4) |
| Underwriting expenses | **D** | (31.3) | (3.3) |  | (34.6) |
| General and administrative expenses |  |  |  | (4.6) | (4.6) |
| Interest and financing expenses |  |  |  | (0.1) | (0.1) |
| Total expenses |  | (128.6) | (3.5) | 0.7 | (131.4) |
| **Net income (loss) before income taxes** |  | $69.7 | $(2.4) | $1.1 | $68.4 |
| **Underwriting income (loss)** | **A+B+C+D** | $27.5 | $(3.2) |  |  |
| Loss and LAE expense ratio: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current year |  | 64.2% | n/m |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior years |  | (15.6) |  |  |  |
| Loss and LAE ratio |  | 48.6 | n/m |  |  |
| Commission expense ratio |  | 13.7 | n/m |  |  |
| Underwriting expense ratio |  | 20.1 | n/m |  |  |
| **Combined ratio** |  | 82.4% | n/m |  |  |
| n/m - not meaningful |  |  |  |  |  |
| (1) See Page 16 for a description of our reportable segments. |  |  |  |  |  |

---

------

**EMPLOYERS HOLDINGS, INC.**

**Return on Equity (unaudited)**

**$ in millions**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Three Months Ended** | **Three Months Ended** | **Years Ended** | **Years Ended** |
| | | **December 31,** | **December 31,** | **December 31,** | **December 31,** |
| | | **2022** | **2021** | **2022** | **2021** |
| **Net income** | **A** | $47.2 | $54.8 | $48.4 | $119.3 |
| Impact of the LPT Agreement |  | (2.0) | (5.3) | (8.3) | (11.5) |
| Net realized and unrealized (gains) losses on investments |  | (13.7) | (25.0) | 51.8 | (54.6) |
| Non-recurring severance costs and asset impairment charges |  |  |  |  | 4.1 |
| Income tax expense (benefit) related to items excluded from Net income |  | 2.9 | 5.3 | (10.9) | 10.6 |
| **Adjusted net income**<sup>(1)</sup> | **B** | $34.4 | $29.8 | $81.0 | $67.9 |
| Stockholders' equity - end of period |  | $944.2 | $1213.1 | $944.2 | $1213.1 |
| Stockholders' equity - beginning of period |  | 919.0 | 1189.9 | 1213.1 | 1212.8 |
| **Average stockholders' equity** | **C** | $931.6 | $1201.5 | $1078.7 | $1213 |
| Stockholders' equity - end of period |  | $944.2 | $1213.1 | $944.2 | $1213.1 |
| Deferred Gain - end of period |  | 106.1 | 114.4 | 106.1 | 114.4 |
| Accumulated other comprehensive loss (income), before taxes - end of period |  | 175.8 | (76.7) | 175.8 | (76.7) |
| Income tax related to accumulated other comprehensive (loss) income - end of period |  | (36.9) | 16.1 | (36.9) | 16.1 |
| Adjusted stockholders' equity - end of period |  | 1189.2 | 1266.9 | 1189.2 | 1266.9 |
| Adjusted stockholders' equity - beginning of period |  | 1186.0 | 1230.7 | 1266.9 | 1223.1 |
| **Average adjusted stockholders' equity**<sup>(1)</sup> | **D** | $1187.6 | $1248.8 | $1228.1 | $1245.0 |
| Return on stockholders' equity | **A / C** | 5.1% | 4.6% | 4.5% | 9.8% |
| **Annualized return on stockholders' equity** |  | 20.3 | 18.2 |  |  |
| Adjusted return on stockholders' equity<sup>(1)</sup> | **B / D** | 2.9 | 2.4 | 6.6 | 5.5 |
| **Annualized adjusted return on stockholders' equity**<sup>(1)</sup> |  | 11.6 | 9.5 |  |  |
| (1) See Page 15 for information regarding our use of Non-GAAP Financial Measures. | (1) See Page 15 for information regarding our use of Non-GAAP Financial Measures. | (1) See Page 15 for information regarding our use of Non-GAAP Financial Measures. | (1) See Page 15 for information regarding our use of Non-GAAP Financial Measures. | (1) See Page 15 for information regarding our use of Non-GAAP Financial Measures. | (1) See Page 15 for information regarding our use of Non-GAAP Financial Measures. |

---

------

**EMPLOYERS HOLDINGS, INC.**

**Roll-forward of Unpaid Losses and LAE (unaudited)**

**$ in millions**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Years Ended** | **Years Ended** |
| | **December 31,** | **December 31,** | **December 31,** | **December 31,** |
| | **2022** | **2021** | **2022** | **2021** |
| Unpaid losses and LAE at beginning of period | $1979.9 | $2002.1 | $1981.2 | $2069.4 |
| Less reinsurance recoverable on unpaid losses and LAE | 456.4 | 478.4 | 476.9 | 497.0 |
| Net unpaid losses and LAE at beginning of period | 1523.5 | 1523.7 | 1504.3 | 1572.4 |
| Losses and LAE incurred: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Current year  | 116.5 | 100.3 | 432.8 | 366.5 |
| &nbsp;&nbsp;&nbsp;Prior years - voluntary business | (22.5) | (23.0) | (32.1) | (38.0) |
| &nbsp;&nbsp;&nbsp;Prior years - involuntary business | (0.7) | (1.2) | (1.4) | (1.8) |
| Total losses incurred | 93.3 | 76.1 | 399.3 | 326.7 |
| Losses and LAE paid: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Current year  | 42.1 | 34.0 | 92.5 | 76.6 |
| &nbsp;&nbsp;&nbsp;Prior years | 59.4 | 61.5 | 295.8 | 318.2 |
| Total paid losses | 101.5 | 95.5 | 388.3 | 394.8 |
| Net unpaid losses and LAE at end of period | 1515.3 | 1504.3 | 1515.3 | 1504.3 |
| Reinsurance recoverable, excluding CECL allowance, on unpaid losses and LAE | 445.4 | 476.9 | 445.4 | 476.9 |
| Unpaid losses and LAE at end of period | $1960.7 | $1981.2 | $1960.7 | $1981.2 |

---

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 $2.0 million and $5.3 million for the three months ended December 31, 2022 and 2021, respectively, and $8.3 million and $11.5 million for the year ended December 31, 2022 and 2021, respectively.

------

**EMPLOYERS HOLDINGS, INC.**

**Consolidated Investment Portfolio (unaudited)**

**$ in millions**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2021** | **December 31, 2021** |
| **Investment Positions:** | **Cost or Amortized**<br>**Cost**<sup>(1)</sup> | **Net Unrealized Gain (Loss)** | **Fair Value** | **%** | **Fair Value** | **%** |
| Fixed maturity securities | $2366.7 | $(175.9) | $2186.3 | 82% | $2342.7 | 83% |
| Equity securities | 150.9 | 52.8 | 203.7 | 8 | 344.4 | 12 |
| Other invested assets | 54.4 | 5.3 | 59.7 | 2 | 38.4 | 1 |
| Short-term investments | 119.1 |  | 119.1 | 4 | 10.5 |  |
| Cash and cash equivalents | 89.2 |  | 89.2 | 3 | 75.1 | 3 |
| Restricted cash and cash equivalents | 0.2 |  | 0.2 |  | 0.2 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total investments and cash** | $2780.5 | $(117.8) | $2658.2 | 100% | $2811.3 | 100% |
| **Breakout of Fixed Maturity Securities:** |  |  |  |  |  |  |
| U.S. Treasuries and Agencies | $97.3 | $(4.4) | $92.9 | 4% | $68.1 | 3% |
| States and Municipalities | 326.7 | (9.1) | 317.6 | 15 | 436.1 | 19 |
| Corporate Securities | 963.4 | (92.5) | 868.1 | 40 | 1080.3 | 46 |
| Mortgage-Backed Securities | 465.0 | (49.7) | 415.3 | 19 | 414.1 | 18 |
| Asset-Backed Securities | 74.0 | (7.9) | 66.1 | 3 | 68.5 | 3 |
| Collateralized loan obligations | 268.1 | (7.2) | 260.9 | 12 | 85.4 | 4 |
| Bank loans and other | 172.2 | (5.1) | 165.4 | 8 | 190.2 | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total fixed maturity securities** | $2366.7 | $(175.9) | $2186.3 | 100% | $2342.7 | 100% |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| Weighted average ending book yield | 3.9 | % | 3.0 | % |
| Average credit quality (S&P) | A | A | A+ | A+ |
| Duration | 3.9 | 3.9 | 3.4 | 3.4 |
| (1) Amortized cost excludes an allowance for current expected credit losses (CECL) of $4.5 million | (1) Amortized cost excludes an allowance for current expected credit losses (CECL) of $4.5 million | (1) Amortized cost excludes an allowance for current expected credit losses (CECL) of $4.5 million |  |  |

---

------

**EMPLOYERS HOLDINGS, INC.**

**Book Value Per Share (unaudited)**

**$ in millions, except per share amounts**

---

| | | | |
|:---|:---|:---|:---|
| | | **December 31,<br>2022** | **December 31,<br>2021** |
| **Numerators:** | | | |
| **Stockholders' equity** | **A** | $944.2 | $1213.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred Gain |  | 106.1 | 114.4 |
| **Stockholders' equity including the Deferred Gain**<sup>(1)</sup> | **B** | 1050.3 | 1327.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss (income), before taxes |  | 175.8 | (76.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes related to accumulated other comprehensive (loss) income, before taxes |  | (36.9) | 16.1 |
| **Adjusted stockholders' equity**<sup>(1)</sup> | **C** | $1189.2 | $1266.9 |
| **Denominator (shares outstanding)** | **D** | 27160748 | 27741400 |
| Book value per share<sup>(1)</sup> | **A / D** | $34.76 | $43.73 |
| Book value per share including the Deferred Gain<sup>(1)</sup> | **B / D** | 38.67 | 47.85 |
| Adjusted book value per share<sup>(1)</sup> | **C / D** | 43.78 | 45.67 |
| Cash dividends declared per share |  | $3.28 | $1.00 |
| **YTD Change in:**<sup>(2)</sup> |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Book value per share |  | (13.0)% | 5.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Book value per share including the Deferred Gain |  | (12.3) | 4.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted book value per share |  | 3.0 | 9.0 |
| (1) See Page 15 for information regarding our use of Non-GAAP Financial Measures. | (1) See Page 15 for information regarding our use of Non-GAAP Financial Measures. | (1) See Page 15 for information regarding our use of Non-GAAP Financial Measures. | (1) See Page 15 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. | (2) Reflects the change per share after taking into account dividends declared in the period. | (2) Reflects the change per share after taking into account dividends declared in the period. | (2) Reflects the change per share after taking into account dividends declared in the period. |

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**EMPLOYERS HOLDINGS, INC.**

**Earnings Per Share (unaudited)**

**$ in millions, except per share amounts**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Three Months Ended** | **Three Months Ended** | **Years Ended** | **Years Ended** |
| | | **December 31,** | **December 31,** | **December 31,** | **December 31,** |
| | | **2022** | **2021** | **2022** | **2021** |
| **Numerators:** |  |  |  |  |  |
| **Net income** | **A** | $47.2 | $54.8 | $48.4 | $119.3 |
| Impact of the LPT Agreement |  | (2.0) | (5.3) | (8.3) | (11.5) |
| **Net income before impact of the LPT** <sup>(1)</sup> | **B** | $45.2 | $49.5 | $40.1 | $107.8 |
| Net realized and unrealized (gains) losses on investments |  | (13.7) | (25.0) | 51.8 | (54.6) |
| Non-recurring severance costs and asset impairment charges |  |  |  |  | 4.1 |
| Income tax expense (benefit) related to items excluded from Net income |  | 2.9 | 5.3 | (10.9) | 10.6 |
| **Adjusted net income** <sup>(1)</sup> | **C** | $34.4 | $29.8 | $81.0 | $67.9 |
| **Denominators:** |  |  |  |  |  |
| Average common shares outstanding (basic) | **D** | 27258246 | 27931565 | 27503941 | 28289118 |
| Average common shares outstanding (diluted) | **E** | 27435134 | 28178237 | 27680988 | 28600993 |
| **Earnings per share:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | **A / D** | $1.73 | $1.96 | $1.76 | $4.22 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | **A / E** | 1.72 | 1.94 | 1.75 | 4.17 |
| **Earnings per share before impact of the LPT:**<sup>(1)</sup> |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | **B / D** | $1.66 | $1.77 | $1.46 | $3.81 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | **B / E** | 1.65 | 1.76 | 1.45 | 3.77 |
| **Adjusted earnings per share:**<sup>(1)</sup> |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | **C / D** | $1.26 | $1.07 | $2.95 | $2.40 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | **C / E** | 1.25 | 1.06 | 2.93 | 2.37 |
| (1) See Page 15 for information regarding our use of Non-GAAP Financial Measures. | (1) See Page 15 for information regarding our use of Non-GAAP Financial Measures. | (1) See Page 15 for information regarding our use of Non-GAAP Financial Measures. | (1) See Page 15 for information regarding our use of Non-GAAP Financial Measures. | (1) See Page 15 for information regarding our use of Non-GAAP Financial Measures. | (1) See Page 15 for information regarding our use of Non-GAAP Financial Measures. |

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**<u>Non-GAAP Financial Measures</u>**

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 does not result in 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 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 is being amortized through June 30, 2024. 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 13 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 13 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 10 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 13 for calculations).* Management believes that these valuation measures are widely used by our investors, analysts and other interested parties.

***Net income before impact of the 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.

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**<u>Description of Reportable Segments</u>**

The Company has determined that it has two reportable segments: Employers and Cerity. Each of these segments represents a separate and distinct underwriting platform through which the Company conducts insurance business.

The nature and composition of each reportable segment and its Corporate and Other activities are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Employers segment is defined as traditional business offered through the EMPLOYERS brand name through its agents, including business originated from its strategic partnerships and alliances;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Cerity segment is defined as business offered under the Cerity brand name, which includes the Company's direct-to-customer business; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Corporate and Other activities consist of those holding company expenses that are not considered to be underwriting in nature, the financial impact of the LPT agreement and legacy (pre-acquisition) business assumed and ceded by Cerity Insurance Company. These expenses are not considered to be part of a reportable segment and are not otherwise allocated to a reportable segment.