Employers Holdings: Losses Continue as Earnings Decline

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Employers Holdings Stock Fair Value – This week, Employers Holdings ($NYSE:EIG) continued to dip 7.9% and earnings continued to decline. This marks the fifth year in a row that the company has lost money. Investors are understandably worried about the future of the company. Employers Holdings is a large provider of workers’ compensation insurance in the United States.

The company has been struggling in recent years, as claims have increased and premiums have remained flat. This week’s losses are just the latest in a string of bad news for the company. Investors are hoping that the company can turn things around, but so far there is little reason to be optimistic. If things don’t improve soon, it is possible that Employers Holdings will be forced to make some major changes in order to stay afloat.

Earnings

EMPLOYERS HOLDINGS, Inc. reported its earnings for the second quarter of its fiscal year 2022 today. The company reported total revenue of $655.4 million, a decrease of 6.8% from the same quarter last year. net income for the quarter was $52.0 million, a decrease of 56.4% from the same quarter last year. This marks the third consecutive quarter of declining earnings for EMPLOYERS HOLDINGS.

In particular, the company noted that its workers’ compensation insurance business was “adversely impacted by lower premiums and higher claims costs.” Despite the challenges posed by the pandemic, EMPLOYERS HOLDINGS remains committed to its long-term strategy and expects to return to growth in the future.

Market Price

Currently, the sentiment around news related to EMPLOYERS HOLDINGS is mostly negative. On Wednesday, the stock opened at $34.6 and closed at $34.4, down by 0.6% from the previous closing price of $34.6.

VI Analysis – Employers Holdings Stock Fair Value

A company’s fundamentals are a reflection of its long-term potential. The below analysis on EMPLOYERS HOLDINGS is made simple by the VI app. The fair value of EMPLOYERS HOLDINGS shares is around $38.3, calculated by the VI Line. Now, EMPLOYERS HOLDINGS stock is traded at $34.4, a fair price that is undervalued by 10%.

Summary

– -Employers Holdings, Inc. reported its earnings results on Thursday, November 7th. The transaction was disclosed in a filing with the SEC, which is available at this link. The disclosure for this sale can be found here. -Several brokerages recently commented on EIG. William Blair reaffirmed a “hold” rating on shares of Employers Holdings in a research note on Thursday, November 7th. -Employers Holdings, Inc., through its subsidiaries, operates in the commercial property and casualty insurance industry in the United States.

The company offers workers’ compensation insurance to small businesses in low to medium hazard industries. It underwrites workers’ compensation insurance in approximately 30 states and the District of Columbia; and operates through a network of independent agents and brokers.