• Net income of $51.8 million ($1.57 per diluted share), adjusted net income of $30.9 million ($0.94 per diluted share),
• Net investment income of $21.8 million, up 12% year-over-year,
• Gross premiums written of $210.0 million, down 1% year-over-year,
• Combined ratio of 90.4%, combined ratio before the impact of the LPT of 91.9%.

RENO, Nev.--(BUSINESS WIRE)--Apr. 24, 2019-- Employers Holdings, Inc. (“EHI” or the “Company”) (NYSE:EIG) today reported the following for the first quarter of 2019: (i) net income of $51.8 million ($1.57 per diluted share); (ii) net income before the impact of the LPT of $49.3 million ($1.50 per diluted share); and (iii) adjusted net income of $30.9 million ($0.94 per diluted share).

The Company's adjusted net income for the first quarter of 2019 increased $1.6 million year-over-year. This increase primarily reflects the after-tax impact of the following items: (i) $22.0 million of favorable prior year loss reserve development on voluntary business versus $12.0 million of favorable development a year ago, (ii) $21.8 million of net investment income versus $19.4 million a year ago; partially offset by (iii) $47.5 million of underwriting and other operating expenses versus $39.2 million a year ago.

The Company's net income and net income before the impact of the LPT for the first quarter of 2019 increased by $26.2 million and $26.3 million, respectively, year-over-year. These first quarter 2019 net income measures were each favorably impacted by the after-tax impact of the items previously mentioned, as well as the after-tax impact of $21.2 million of unrealized investment gains relating to the Company’s equity investments versus $12.9 of unrealized investment losses recognized a year ago.

The Company’s book value per share of $33.22, book value per share including the Deferred Gain of $37.78 and adjusted book value per share of $37.04 increased by 7.6%, 6.6%, and 3.3% during the first three months of 2019, respectively, each computed after taking into account dividends declared. Book value per share and book value per share including the Deferred Gain at March 31, 2019 were each favorably impacted by $37.3 million of net after tax unrealized gains from the Company’s portfolio of fixed maturity securities.

Chief Executive Officer Douglas Dirks commented on the results: “Our first quarter results were highly satisfying and largely consistent with our expectations. During the quarter, we delivered a 10.4% annualized return on adjusted equity, nearly maintained our top line despite pricing headwinds, actively bought back our stock and executed well on our previously announced plan of aggressive development and implementation of new technologies and capabilities to transform and enhance the digital experience of our customers.”

Summary ofFirst Quarter 2019 Operating Results

(All comparisons vs. first quarter 2018, unless noted otherwise).

Gross premiums written were $210.0 million, a decrease of 1%. The decrease was due primarily to a decrease in final audit premiums as well as a decrease in average premium rates. Net earned premiums were $174.8 million, a decrease of 1% year-over-year.

The loss and LAE ratio before the impact of the LPT of 52.1% decreased 3.4 percentage points reflecting observed favorable paid loss trends, including those resulting from our key business initiatives including: an emphasis on settling open claims; diversifying our risk exposure across geographic markets; and leveraging data-driven strategies to target, underwrite and price profitable classes of business across all of our markets. During the quarter, the Company: (i) increased its current accident year loss and LAE ratio on its voluntary business to 64.5%, versus 62.5% a year ago; and (ii) recognized 12.7 percentage points of favorable prior year loss reserve development versus 7.0 percentage points a year ago.

The commission expense ratio of 12.6% decreased 0.8 percentage points, primarily as a result of a decrease in projected 2019 agency incentive commissions.

The underwriting and other operating expense ratio of 27.1% increased 4.9 percentage points. Expenses associated with our aggressive development and implementation of new digital technologies and capabilities contributed 3.9 percentage points to the increase. The remaining 1.0 percentage point increase resulted from significantly higher than anticipated recoveries of bad debts a year ago than those experienced in the current quarter.

Net investment income of $21.8 million increased 12%, primarily as a result of the Company's strong operating cash flows, as well as higher pre-tax book yields.

Income tax expense was $10.0 million (a 16.2% effective rate) versus $3.8 million (a 12.9% effective rate). The increase in the effective rate is due primarily to having a higher proportion of fully taxable income in the current quarter than a year ago.

Share Repurchases and Second Quarter Dividend Declaration

During the first quarter of 2019, the Company repurchased 670,837 shares of its common stock at an average price of $40.90 per share. During the period from April 1, 2019 through April 23, 2019, the Company repurchased a further 241,264 shares of its common shares at an average price of $40.77 per share.

On April 24, 2019, the Board of Directors authorized a $50 million expansion to its existing share repurchase program and extended the repurchase authority pursuant to the expanded program through June 30, 2020. As a result of this action, the Company currently has a remaining share repurchase authorization of $58.1 million.

On April 24, 2019, the Board of Directors also declared a second quarter 2019 dividend of $0.22 per share. The dividend is payable on May 22, 2019 to stockholders of record as of May 8, 2019.

Conference Call and Webcast, Reports Filed with The Securities and Exchange Commission (the "SEC") and Supplemental Materials

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

Reconciliation of Non-GAAP Financial Measures to GAAP

Within this earnings release we present various financial measures, some of which are a "non-GAAP financial measure" 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 the Company's most directly comparable GAAP financial measures is included in the attached Financial Supplement. Management believes that these non-GAAP measures are meaningful 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. These non-GAAP measures are not a substitute for GAAP measures and investors should be careful when comparing the Company's non-GAAP financial measures to similarly titled measures used by other companies. Other companies may calculate these measures differently, and, therefore, these measures may not be comparable.

The Company will host a conference call on Thursday, April 25, 2019, at 8:30 a.m. Pacific Daylight Time. The conference call will be available via a live web cast on the Company's web site at www.employers.com. An archived version will be available several hours after the call. The conference call replay number is (404) 537-3406 or (855) 859-2056 with a pass code of 4049627.

The Company provides its filings with the SEC and its investor presentations on its website at www.employers.com.

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, 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. EHI and its management caution investors that such forward-looking statements are not guarantees of future performance. Risks and uncertainties are inherent in EHI'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 EHI'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.

The SEC filings for EHI can be accessed through the “Investors” link on the Company's website, www.employers.com, or through the SEC's EDGAR Database at www.sec.gov (EHI EDGAR CIK No. 0001379041).

About Employers Holdings, Inc.

Employers Holdings, Inc. (NYSE:EIG) 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, through its subsidiaries, operates in 45 states and the District of Columbia. Insurance is offered by Employers Insurance Company of Nevada, Employers Compensation Insurance Company, Employers Preferred Insurance Company, and Employers Assurance Company, all rated A- (Excellent) by A.M. Best Company. Additional information can be found at: www.employers.com.

Copyright © 2019 EMPLOYERS. All rights reserved.

EMPLOYERS® and America's small business insurance specialist® are registered trademarks of Employers Insurance Company of Nevada. Insurance is offered through Employers Compensation Insurance Company, Employers Insurance Company of Nevada, Employers Preferred Insurance Company, Employers Assurance Company. Not all insurers do business in all jurisdictions.

Employers Holdings, Inc.

First Quarter 2019

Financial Supplement

EMPLOYERS HOLDINGS, INC.
Table of Contents
Page
1				Consolidated Financial Highlights
2				Summary Consolidated Balance Sheets
3				Summary Consolidated Income Statements
4				Return on Equity
5				Combined Ratios
6				Roll-forward of Unpaid Losses and LAE
7				Consolidated Investment Portfolio
8				Book Value Per Share
9				Earnings Per Share
10				Non-GAAP Financial Measures

EMPLOYERS HOLDINGS, INC.
Consolidated Financial Highlights (unaudited)
$ in millions, except per share amounts
		Three Months Ended
		March 31,
		2019				2018				% change
Selected financial highlights:
Gross premiums written		$	210.0			$	211.6			(1	)%
Net premiums written		208.7				210.1				(1	)
Net premiums earned		174.8				176.6				(1	)
Net investment income		21.8				19.4				12
Underwriting income(1)		16.7				18.3				(9	)
Net income before impact of the LPT(1)		49.3				23.0				114
Adjusted net income(1)		30.9				29.3				5
Net income		51.8				25.6				102
Comprehensive income (loss)		89.1				(9.8		)		n/m
Total assets		3,973.1				3,847.9				3
Stockholders' equity		1,071.7				930.3				15
Stockholders' equity including the Deferred Gain(2)		1,218.8				1,091.3				12
Adjusted stockholders' equity(2)		1,195.2				1,093.3				9
Annualized adjusted return on stockholders' equity(3)		10.4		%		11.2		%		(7	)%
Amounts per share:
Cash dividends declared per share		$	0.22			$	0.20			10	%
Earnings per diluted share(4)		1.57				0.77				104
Earnings per diluted share before impact of the LPT(4)		1.50				0.69				117
Adjusted earnings per diluted share(4)		0.94				0.88				7
Book value per share(2)		33.22				28.40				17
Book value per share including the Deferred Gain(2)		37.78				33.32				13
Adjusted book value per share(2)		37.04				33.38				11
Combined ratio before impact of the LPT:(5)
Loss and loss adjustment expense ratio:
Current year		64.8		%		62.5		%
Prior year		(12.7		)		(7.0		)
Loss and loss adjustment expense ratio		52.1		%		55.5		%
Commission expense ratio		12.6				13.4
Underwriting and other operating expenses ratio		27.1				22.2
Combined ratio before impact of the LPT		91.9		%		91.1		%
(1) See Page 3 for calculations and Page 10 for information regarding our use of Non-GAAP Financial Measures.
(2)See Page 8 for calculations and Page 10 for information regarding our use of Non-GAAP Financial Measures.
(3) See Page 4 for calculations and Page 10 for information regarding our use of Non-GAAP Financial Measures.
(4) See Page 9 for calculations and Page 10 for information regarding our use of Non-GAAP Financial Measures.
(5) See Page 5 for calculations and Page 10 for information regarding our use of Non-GAAP Financial Measures.

EMPLOYERS HOLDINGS, INC.
Summary Consolidated Balance Sheets (unaudited)
$ in millions, except per share amounts
		March 31, 2019				December 31, 2018
ASSETS
Investments, cash and cash equivalents		$	2,852.2			$	2,829.7
Accrued investment income		18.2				18.0
Premiums receivable, net		352.7				333.1
Reinsurance recoverable on paid and unpaid losses and LAE		505.4				511.1
Deferred policy acquisition costs		52.5				48.2
Deferred income taxes, net		12.9				26.9
Contingent commission receivable—LPT Agreement		32.0				32.0
Other assets		147.2				120.2
Total assets		$	3,973.1			$	3,919.2
LIABILITIES
Unpaid losses and LAE		$	2,189.3			$	2,207.9
Unearned premiums		368.9				336.3
Commissions and premium taxes payable		53.8				57.3
Deferred Gain		147.1				149.6
Notes payable		20.0				20.0
Other liabilities		122.3				129.9
Total liabilities		$	2,901.4			$	2,901.0
STOCKHOLDERS' EQUITY
Common stock and additional paid-in capital		$	388.7			$	389.4
Retained earnings(2)		1,075.1				1,030.7
Accumulated other comprehensive income (loss), net		23.6				(13.7		)
Treasury stock, at cost		(415.7		)		(388.2		)
Total stockholders’ equity		1,071.7				1,018.2
Total liabilities and stockholders’ equity		$	3,973.1			$	3,919.2
Stockholders' equity including the Deferred Gain (1)		$	1,218.8			$	1,167.8
Adjusted stockholders' equity (1)		1,195.2				1,181.5
Book value per share (1)		$	33.22			$	31.08
Book value per share including the Deferred Gain(1)		37.78				35.64
Adjusted book value per share (1)		37.04				36.06

(1) See Page 8 for calculations and Page 10 for information regarding our use of Non-GAAP Financial Measures.

EMPLOYERS HOLDINGS, INC.
Summary Consolidated Income Statements (unaudited)
$ in millions
		Three Months Ended
		March 31,
		2019				2018
Underwriting revenues:
Gross premiums written		$	210.0			$	211.6
Premiums ceded		(1.3		)		(1.5		)
Net premiums written		208.7				210.1
Net premiums earned		174.8				176.6
Underwriting expenses:
Losses and LAE incurred		(88.6		)		(95.4		)
Commission expense		(22.0		)		(23.7		)
Underwriting and other operating expenses		(47.5		)		(39.2		)
Underwriting income		16.7				18.3
Net investment income		21.8				19.4
Net realized and unrealized gains (losses) on investments(1)		23.3				(8.0		)
Other income		0.4				—
Interest and financing expenses		(0.4		)		(0.3		)
Income tax expense		(10.0		)		(3.8		)
Net income		51.8				25.6
Unrealized AFS investment gains (losses) arising during the period, net of tax(2)		37.8				(35.8		)
Reclassification adjustment for realized AFS investment (gains) losses in net income, net of tax(2)		(0.5		)		0.4
Comprehensive income (loss)		$	89.1			$	(9.8	)
Net Income		$	51.8			$	25.6
Amortization of the Deferred Gain - losses		(2.0		)		(2.1		)
Amortization of the Deferred Gain - contingent commission		(0.5		)		(0.5		)
Net income before impact of the LPT Agreement (3)		49.3				23.0
Net realized and unrealized (gains) losses on investments		(23.3		)		8.0
Income tax expense (benefit) related to items excluded from Net income		4.9				(1.7		)
Adjusted net income (3)		$	30.9			$	29.3

(1) Includes $21.2 million of unrealized gains on equity securities and $12.9 million of unrealized losses on equity securities for the three months ended March 31, 2019 and 2018, respectively.

(2) AFS = Available for Sale securities.

(3) See Page 10 regarding our use of Non-GAAP Financial Measures.

EMPLOYERS HOLDINGS, INC.
Return on Equity (unaudited)
$ in millions
				Three Months Ended
				March 31,
				2019				2018
Net income		A		$	51.8			$	25.6
Impact of the LPT Agreement				(2.5		)		(2.6		)
Net realized and unrealized (gains) losses on investments				(23.3		)		8.0
Amortization of intangibles				—				—
Income tax expense (benefit) related to items excluded from Net income				4.9				(1.7		)
Adjusted net income (1)		B		30.9				29.3
Stockholders' equity - end of period				$	1,071.7			$	930.3
Stockholders' equity - beginning of period				1,018.2				947.7
Average stockholders' equity		C		1,045.0				939.0
Stockholders' equity - end of period				$	1,071.7			$	930.3
Deferred Gain - end of period				147.1				161.0
Accumulated other comprehensive loss (income) - end of period				(29.9		)		2.5
Income taxes related to accumulated other comprehensive gains and losses - end of period				6.3				(0.5		)
Adjusted stockholders' equity - end of period				1,195.2				1,093.3
Adjusted stockholders' equity - beginning of period				1,181.5				1,003.9
Average adjusted stockholders' equity (1)		D		1,188.4				1,048.6
Return on stockholders' equity		A / C		5.0		%		2.7		%
Annualized return on stockholders' equity				19.8				10.9
Adjusted return on stockholders' equity (1)		B / D		2.6		%		2.8		%
Annualized adjusted return on stockholders' equity (1)				10.4				11.2
(1) See Page 10 for information regarding our use of Non-GAAP Financial Measures.

EMPLOYERS HOLDINGS, INC.
Combined Ratios (unaudited)
$ in millions
				Three Months Ended
				March 31,
				2019				2018
Net premiums earned		A		$	174.8			$	176.6
Losses and LAE incurred		B		88.6				95.4
Amortization of the Deferred Gain - losses				2.0				2.1
Amortization of the Deferred Gain - contingent commission				0.5				0.5
Losses and LAE before impact of the LPT (1)		C		91.1				98.0
Prior accident year favorable loss reserve development				(22.2		)		(12.4		)
Losses and LAE before impact of the LPT - current accident year		D		$	113.3			$	110.4
Commission expense		E		$	22.0			$	23.7
Underwriting and other operating expenses		F		47.5				39.2
Combined ratio:
Loss and LAE ratio		B/A		50.7		%		54.0		%
Commission expense ratio		E/A		12.6				13.4
Underwriting and other operating expenses ratio		F/A		27.1				22.2
Combined ratio				90.4		%		89.6		%
Combined ratio before impact of the LPT: (1)
Loss and LAE ratio before impact of the LPT		C/A		52.1		%		55.5		%
Commission expense ratio		E/A		12.6				13.4
Underwriting and other operating expenses ratio		F/A		27.1				22.2
Combined ratio before impact of the LPT				91.9		%		91.1		%
Combined ratio before impact of the LPT: current accident year (1)
Loss and LAE ratio before impact of the LPT		D/A		64.8		%		62.5		%
Commission expense ratio		E/A		12.6				13.4
Underwriting and other operating expenses ratio		F/A		27.1				22.2
Combined ratio before impact of the LPT: current accident year				104.6		%		98.1		%
(1) See Page 10 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
		March 31,
		2019				2018
Unpaid losses and LAE at beginning of period		$	2,207.9			$	2,266.1
Reinsurance recoverable on unpaid losses and LAE		504.4				537.0
Net unpaid losses and LAE at beginning of period		1,703.5				1,729.1
Losses and LAE incurred:
Current year losses		113.3				110.4
Prior year losses on voluntary business		(22.0		)		(12.0		)
Prior year losses on involuntary business		(0.2		)		(0.4		)
Total losses incurred		91.1				98.0
Losses and LAE paid:
Current year losses		7.4				5.9
Prior year losses		96.6				94.2
Total paid losses		104.0				100.1
Net unpaid losses and LAE at end of period		1,690.6				1,727.0
Reinsurance recoverable on unpaid losses and LAE		498.7				531.1
Unpaid losses and LAE at end of period		$	2,189.3			$	2,258.1

Total losses and LAE shown in the above table exclude amortization of the Deferred Gain, which totaled $2.5 million and $2.6 million for the three months ended March 31, 2019 and 2018, respectively.

EMPLOYERS HOLDINGS, INC.
Consolidated Investment Portfolio (unaudited)
$ in millions
		March 31, 2019																		December 31, 2018
Investment Positions:		Cost or Amortized Cost				Net Unrealized (Loss) Gain				Fair Value							%			Fair Value					%
Fixed maturities		$	2,491.1			$	29.9			$	2,521.0						88	%		$	2,496.4				88	%
Equity securities		147.2				89.2				236.4							8			206.3					7
Short-term investments		—				—				—							—			25.0					1
Cash and cash equivalents		92.3				—				92.3							3			101.4					4
Restricted cash and cash equivalents		2.5				—				2.5							—			0.6					—
Total investments and cash		$	2,733.1			$	119.1			$	2,852.2						100	%		$	2,829.7				100	%
Breakout of Fixed Maturities:
U.S. Treasuries and Agencies		$	117.3			$	0.6			$	117.9						5	%		$	117.8				5	%
States and Municipalities		497.7				21.8				519.5							21			528.0					21
Corporate Securities		1,075.3				10.7				1,086.0							43			1,090.4					44
Mortgage-Backed Securities		563.5				(2.2		)		561.3							22			545.8					22
Asset-Backed Securities		60.7				0.2				60.9							2			64.5					3
Bank Loans		176.6				(1.2		)		175.4							7			149.9					6
Total fixed maturities		$	2,491.1			$	29.9			$	2,521.0						100	%		$	2,496.4				100	%
Weighted average book yield														3.4	%						3.4	%
Average credit quality (S&P)														AA-							AA-
Duration														3.9							4.1

EMPLOYERS HOLDINGS, INC.
Book Value Per Share (unaudited)
$ in millions, except per share amounts
				March 31, 2019				December 31, 2018				March 31, 2018				December 31, 2017
Numerators:
Stockholders' equity		A		$	1,071.7			$	1,018.2			$	930.3			$	947.7
Plus: Deferred Gain				147.1				149.6				161.0				163.6
Stockholders' equity including the Deferred Gain (1)		B		1,218.8				1,167.8				1,091.3				1,111.3
Accumulated other comprehensive (income) loss				(29.9		)		17.3				2.5				(136.0		)
Income taxes related to accumulated other comprehensive gains and losses				6.3				(3.6		)		(0.5		)		28.6
Adjusted stockholders' equity (1)		C		$	1,195.2			$	1,181.5			$	1,093.3			$	1,003.9
Denominator (shares outstanding)		D		32,263,810				32,765,792				32,752,139				32,597,819
Book value per share (1)		A / D		$	33.22			$	31.08			$	28.40			$	29.07
Book value per share including the Deferred Gain(1)		B / D		37.78				35.64				33.32				34.09
Adjusted book value per share (1)		C / D		37.04				36.06				33.38				30.80
YTD Change in: (2)
Book value per share				7.6		%						(1.6		)%
Book value per share including the Deferred Gain				6.6								(1.7		)
Adjusted book value per share				3.3								9.0

(1) See Page 10 for information regarding our use of Non-GAAP Financial Measures.

(2) Reflects the change in book value per share after taking into account dividends declared of $0.22 and $0.20 for the three months ended March 31, 2019 and 2018, respectively.

EMPLOYERS HOLDINGS, INC.
Earnings Per Share (unaudited)
$ in millions, except per share amounts
				Three Months Ended
				March 31,
				2019				2018
Numerators:
Net income		A		$	51.8			$	25.6
Impact of the LPT Agreement				(2.5		)		(2.6		)
Net income before impact of the LPT (1)		B		49.3				23.0
Net realized and unrealized (gains) losses on investments				(23.3		)		8.0
Income tax expense (benefit) related to items excluded from Net income				4.9				(1.7		)
Adjusted net income (1)		C		$	30.9			$	29.3
Denominators:
Average common shares outstanding (basic)		D		32,442,287				32,830,481
Average common shares outstanding (diluted)		E		32,954,079				33,320,420
Earnings per share:
Basic		A / D		$	1.60			$	0.78
Diluted		A / E		1.57				0.77
Earnings per share before impact of the LPT: (1)
Basic		B / D		$	1.52			$	0.70
Diluted		B / E		1.50				0.69
Adjusted earnings per share: (1)
Basic		C / D		$	0.95			$	0.89
Diluted		C / E		0.94				0.88
(1) See Page 10 for information regarding our use of Non-GAAP Financial Measures.

Glossary of Financial Measures

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 any significant 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 4 for calculations)is net income excluding the effects of the LPT Agreement, net realized and unrealized gains (losses) on investments (net of tax), and amortization of intangible assets (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. The Company previously referred to Adjusted net income as Operating income.

Stockholders' equity including the Deferred Gain 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 8 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 operating return on equity metric.

Return on stockholders' equity and Adjusted return on stockholders' equity (see Page 4 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 8 for calculations). Management believes that these valuation measures are widely used by our investors, analysts and other interested parties. The Company previously referred to Book value per share as GAAP book value per share, and Book value per share including Deferred Gain as Book value per share.

Net income, Combined ratio, and Combined ratio before impact of the LPT (see Pages 3 and 5 for calculations). Management believes that these performance and underwriting measures are widely used by our investors, analysts and other interested parties.

View source version on businesswire.com: https://www.businesswire.com/news/home/20190424006038/en/

Source: Employers Holdings, Inc.

Mike Paquette (775) 327-2562 or mpaquette@employers.com