Specialty workers' compensation insurance focused on small/mid-sized businesses in lower-hazard industries. Generates revenue from insurance premiums and investment income on float. | AGI Score: 5/10 | P/TB: 0.85x | Buybacks: -17% share count change | Analysis date: 2026-03-13
Workers' comp insurer at 0.85x book with 17% share buyback. Classic Buffett-style: insurance float + disciplined underwriting + returning capital to shareholders. AGI score 5 reflects margin expansion from AI underwriting partially offset by demand headwinds (fewer workers = fewer injuries).
Specialty workers' compensation insurance focused on small/mid-sized businesses in lower-hazard industries. Generates revenue from insurance premiums and investment income on float.
Sector: Insurance | Employees: 623
Category: Labor Margin Play
Workers' comp insurers face mixed AGI impacts. Massive margin expansion potential: AGI can revolutionize underwriting (superior risk assessment), claims processing, fraud detection, and actuarial modeling. Workers' comp is analytically intensive, making it ideal for AGI automation. However, demand faces pressure from two sides: (1) as AGI automates work, there are fewer human workers needing workers' comp coverage, and (2) AGI-powered workplace safety systems reduce workplace injuries. The long-tail nature of workers' comp claims provides valuable investment float, though AGI may shorten claim resolution times. Regulatory moats provide stability but competitive advantages erode as all carriers gain similar AGI capabilities, forcing savings to customers via pricing competition. Net modest positive from near-term operational gains, though long-term demand faces headwinds.
Insurance float invested conservatively generates steady income. 17% buyback is real capital return. Small/mid-size employer focus = less competition from big insurers. AI-powered underwriting improves loss ratios. At 0.85x book, you're buying the insurance business at a discount.
AGI automates knowledge work, reducing the number of workers needing comp coverage. Competitive market forces savings from AI to customers via lower premiums. Workers' comp is cyclical — soft pricing cycles compress margins. Small company = limited investment options.
| Metric | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $780M | $801M | $800M | $836M | $711M | $703M | $714M | $851M | $881M | $859M |
| Net Income | $36M | $31M | $26M | $32M | $64M | $119M | $48M | $118M | $119M | $11M |
| Operating Income | — | — | — | — | — | — | — | — | — | — |
| Operating Cash Flow | $123M | $142M | $180M | $123M | $33M | $11M | $100M | $49M | $76M | $45M |
| CapEx | $700K | $400K | $300K | $700K | $100K | $300K | $100K | $0 | $100K | $100K |
| Total Assets | $4B | $4B | $4B | $4B | $4B | $4B | $4B | $4B | $4B | $3B |
| Stockholders Equity | $841M | $948M | $1B | $1B | $1B | $1B | $944M | $1B | $1B | $956M |
| Shares Outstanding | 32,434,580 | 32,501,576 | 32,884,828 | 32,120,578 | 29,912,063 | 28,289,118 | 27,503,941 | 26,368,801 | 25,050,605 | 23,386,329 |
| Free Cash Flow* | $122M | $142M | $180M | $122M | $33M | $10M | $100M | $49M | $76M | $45M |
| Share Count Change | — | +0.2% | +1.2% | -2.3% | -6.9% | -5.4% | -2.8% | -4.1% | -5.0% | -6.6% |
*FCF = Operating Cash Flow - CapEx
| Balance Sheet Item | Latest FY |
|---|---|
| Total Assets | $3B |
| PP&E (net) | $6M |
| Cash & Equivalents | $160M |
| Goodwill | $36M |
| Intangible Assets | $14M |
| Total Liabilities | $3B |
| Long-Term Debt | $19M |
| Stockholders Equity | $956M |
| Tangible Book Value | $906M |
Goodwill: $36M — this is a real risk; if written down, equity shrinks
Intangible Assets: $14M
PP&E: $6M — physical assets that could be liquidated
Tangible Book Value: $906M ($46.50 per share)
| Metric | Value | Notes |
|---|---|---|
| Book Value / Share | $49.06 | Stockholders equity / shares |
| Tangible Book Value / Share | $46.50 | Equity minus goodwill & intangibles |
| Price / Revenue | 0.89x | Market cap / TTM revenue |
| OCF Yield | 5.8% | Operating cash flow / market cap |
| FCF Yield | 5.6% | Free cash flow / market cap |
| Floor Price Estimate (60% TBV) | $27.90 | Conservative: 60% of tangible book value per share |
Tangible Book Value per share: $46.50
Conservative Floor (60% of TBV): $27.90 — At this price, you are buying hard assets at 60 cents on the dollar with margin of safety.
Current price $39.24 is below tangible book value ($46.50).
Buyback impact: Buybacks: -17% share count change. If management continues buying back shares below book value, per-share intrinsic value compounds upward even without earnings growth.
Item 1. Business General Employers Holdings, Inc. (EHI) is a holding company, which was incorporated in Nevada in 2005, with subsidiaries that are specialty providers of workers' compensation insurance and related services focused on small and mid-sized businesses engaged in lower hazard industries. In February 2026, we launched a new excess workers' compensation product that will be offered to self-insured enterprises in several jurisdictions across the United States (U.S.). We had 623 full-time employees at December 31, 2025 and our corporate headquarters are located at 5340 Kietzke Lane, Suite 202, Reno, Nevada, 89511. We operate throughout the U.S. with the exception of North Dakota, Ohio, Washington and Wyoming, which are served exclusively by their state funds. We offer insurance through Employers Insurance Company of Nevada (EICN), Employers Compensation Insurance Company (ECIC), Employers Preferred Insurance Company (EPIC), Employers Assurance Company (EAC) and Cerity Insurance Company (CIC), each of which has been assigned an AM Best Company, Inc. (AM Best) financial strength rating of "A" (Excellent). Our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, amendments to those reports, and Proxy Statements for our Annual Meetings of Stockholders are available free of charge on our website at www.employers.com as soon as reasonably practicable after they are electronically filed with or furnished to the SEC. Our website als
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the consolidated financial statements, the accompanying notes thereto, and the financial statement schedules included in Item 8 and Item 15 of this report. In addition to historical information, the following discussion contains forward-looking statements that are subject to risks and uncertainties and other factors described in Item 1A of this report. Our actual results in future periods may differ from those referred to herein due to several factors, including the risks described in the sections entitled "Risk Factors" and "Forward-Looking Statements" elsewhere in this report. General We are a Nevada holding company. Through our insurance subsidiaries, we provide workers' compensation insurance coverage to small and mid-sized businesses engaged in lower hazard industries. Workers' compensation insurance is provided under a statutory system wherein most employers are required to provide coverage for their employees' medical, disability, vocational rehabilitation, and/or death benefit costs for work-related injuries or illnesses. We provide workers' compensation insurance throughout most of the United States, with a concentration in California, where 46% of our 2025 gross written premiums were generated. Our revenues primarily consist of net premiums e
What assets exist? PP&E of $6M. Total assets of $3B Tangible book value of $906M. Goodwill of $36M is a risk.
Are buybacks real? Yes — Buybacks: -17% share count change. This is the AMR playbook: buy back shares below book value to compound per-share intrinsic value.
Is the business durable? Insurance with AGI score 5/10. Low AGI disruption risk — physical business that AGI does not easily replace.
What is the floor? At $27.90 (60% of TBV), downside is limited by hard assets. Current price $39.24 is above the floor estimate.
Data sources: SEC EDGAR XBRL, yfinance, 10-K filing extracts, AGI scoring framework. Analysis date: 2026-03-13.