• Net income of $21.9 million ($0.66 per diluted share), operating income of $21.6 million ($0.65 per diluted share).
• Annualized operating return on adjusted stockholders' equity of 8.8%.
• Combined ratio of 92.7%, combined ratio before the impact of the LPT of 94.0%.
• Net written premiums of $177.6 million, net earned premiums of $187.9 million.
• The Board of Directors approved a quarterly dividend of $0.15 per share.

RENO, Nev.--(BUSINESS WIRE)--Oct. 25, 2017-- Employers Holdings, Inc. (“EHI” or the “Company”) (NYSE:EIG) today reported the following for the third quarter of 2017: (i) net income of $21.9 million ($0.66 per diluted share); (ii) net income before the impact of the LPT of $19.4 million ($0.59 per diluted share); and (iii) operating income of $21.6 million ($0.65 per diluted share).

The Company's operating income for the third quarter of 2017 increased $2.9 million year-over-year. This increase primarily reflects an increase in underwriting income resulting from higher net premiums earned and a lower combined ratio.

The Company's net income and net income before the impact of the LPT for the third quarter of 2017 decreased by $0.7 million and $0.2 million, respectively, year-over-year. These decreases primarily reflect a third quarter 2017 write-off of $7.5 million ($4.9 million after tax) of previously capitalized costs relating to the development of information technology capabilities that had not yet been placed in service, partially offset by increases in underwriting income, investment income and realized investment gains.

The Company’s GAAP book value per share of $28.28, book value per share of $33.42 and adjusted book value per share of $30.62; increased 9.8%, 7.1% and 6.1% year-to-date, respectively, each including dividends declared.

Chief Executive Officer Douglas Dirks commented on the results:

“We produced strong operating results this quarter. Our operating income per diluted share increased 14%, or eight cents per share, and our combined ratio before the impact of the LPT improved 1.2 percentage points, demonstrating our disciplined underwriting strategy. Final audit premium and new premium growth each continue to be strong, contributing to our top line growth.

Our net income and net income before the impact of the LPT this quarter was adversely impacted by a $7.5 million pretax write-off of previously capitalized costs relating to the development of information technology capabilities that had not yet been placed in service. We incurred this charge as part of our continual evaluation of ongoing technology initiatives.

Our balance sheet remains strong as we continue to grow stockholders’ equity and book value per share. We continue to experience high levels of retention for our in-force policies, despite competitive market conditions, while improving loss costs.”

Summary ofThird Quarter 2017 Operating Results
(All comparisons vs. third quarter 2016, unless noted otherwise).

Net earned premiums of $187.9 million increased $14.6 million due to increases in final audit premiums and new business writings, partially offset by declines in renewal business premium.

The loss ratio before the impact of the LPT of 63.5% decreased 1.1 percentage points reflecting the continued impacts of 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.

The commission expense ratio of 12.6% increased 0.3 percentage points due mainly to increases in agency incentives and in the amount of business produced by our partnerships and alliances.

The underwriting and other operating expense ratio of 17.9% decreased 0.4 percentage points due mainly to the increase in net premiums earned.

Net investment income of $18.5 million increased $0.6 million due to slightly higher pre-tax book yields.

Stockholders’ Equity including the Deferred Gain, Third Quarter 2017 Dividend Declaration

Stockholders’ equity including the deferred reinsurance gain was $1,083.5 million, an increase of 5.4% year-over-year.

On October 25, 2017, the Board of Directors declared a fourth quarter 2017 dividend of $0.15 per share. The dividend is payable on November 22, 2017 to stockholders of record as of November 8, 2017.

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, October 26, 2017, 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 95693677.

The Company provides a list of portfolio securities in the Calendar of Events, “Investors” section of its website at www.employers.com. The Company also provides its filings with the Securities and Exchange Commission and its investor presentations on its website.

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. 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).

Copyright © 2017 EMPLOYERS. All rights reserved. EMPLOYERS^® and America's small business insurance specialist. ^® are registered trademarks of Employers Insurance Company of Nevada. 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. Insurance subsidiaries include 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: http://www.employers.com.

Employers Holdings, Inc.
Third Quarter 2017
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											Nine Months Ended
		September 30,											September 30,
		2017				2016				% change			2017				2016				% change
Selected financial highlights:
Gross insurance premiums written		$	179.2			$	164.4			9	%		$	561.3			$	545.7			3	%
Net insurance premiums written		177.6				163.0				9			556.8				540.4				3
Net insurance premiums earned		187.9				173.3				8			535.0				522.8				2
Net investment income		18.5				17.9				3			55.4				54.1				2
Underwriting income(1)		13.7				11.3				21			34.2				29.7				15
Net income before impact of the LPT Agreement(1)		19.4				19.6				(1	)		61.4				57.6				7
Operating income(1)		21.6				18.7				16			60.2				51.9				16
Net income		21.9				22.6				(3	)		69.9				71.2				(2	)
Comprehensive income		22.2				17.4				28			86.0				105.2				(18	)
Total assets													3,835.4				3,824.3				—
Stockholders' equity													917.1				850.1				8
Stockholders' equity including deferred reinsurance gain(2)													1,083.5				1,027.9				5
Adjusted stockholders' equity(2)													992.9				910.3				9
Annualized operating return on adjusted stockholders' equity(3)		8.8		%		8.2		%		7	%		8.3		%		7.8		%		6	%
Amounts per share:
Cash dividends declared per share		$	0.15			$	0.09			67	%		$	0.45			$	0.27			67	%
Net income per diluted share(4)		0.66				0.69				(4	)		2.12				2.16				(2	)
Net income before impact of the LPT per diluted share(4)		0.59				0.59				—			1.86				1.74				7
Operating income per diluted share(4)		0.65				0.57				14			1.82				1.57				16
GAAP book value per share(2)													28.28				26.47				7
Book value per share(2)													33.42				32.01				4
Adjusted book value per share(2)													30.62				28.35				8
Combined ratio before impact of the LPT:(5)
Loss and loss adjustment expense ratio:
Current year		63.7		%		64.1		%					63.7		%		65.6		%
Prior year		(0.2		)		0.5							(0.1		)		(0.3		)
Loss and loss adjustment expense ratio		63.5		%		64.6		%					63.6		%		65.3		%
Commission expense ratio		12.6				12.3							12.4				12.1
Underwriting and other operating expense ratio		17.9				18.3							19.1				19.5
Combined ratio before impact of the LPT		94.0		%		95.2		%					95.2		%		96.9		%
(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
		September 30, 2017				December 31, 2016
ASSETS
Investments, cash and cash equivalents		$	2,695.3			$	2,623.4
Accrued investment income		19.3				20.6
Premiums receivable, net		331.5				304.7
Reinsurance recoverable on paid and unpaid losses		560.9				588.7
Deferred policy acquisition costs		48.1				44.3
Deferred income taxes, net		42.8				59.4
Contingent commission receivable—LPT Agreement		31.1				31.1
Other assets		106.4				101.2
Total assets		$	3,835.4			$	3,773.4
LIABILITIES
Unpaid losses and LAE		$	2,298.9			$	2,301.0
Unearned premiums		331.1				310.3
Commissions and premium taxes payable		53.0				48.8
Deferred reinsurance gain—LPT Agreement		166.4				174.9
Notes payable		20.0				32.0
Other liabilities		48.9				65.8
Total liabilities		$	2,918.3			$	2,932.8
STOCKHOLDERS' EQUITY
Common stock and additional paid-in capital		$	377.8			$	372.6
Retained earnings		832.4				777.2
Accumulated other comprehensive income, net		90.6				74.5
Treasury stock, at cost		(383.7		)		(383.7		)
Total stockholders’ equity		917.1				840.6
Total liabilities and stockholders’ equity		$	3,835.4			$	3,773.4
Stockholders' equity including deferred reinsurance gain (1)		$	1,083.5			$	1,015.5
Adjusted stockholders' equity (1)		992.9				941.0
GAAP Book Value per Share (1)		$	28.28			$	26.16
Book value per share (1)		33.42				31.61
Adjusted Book Value per Share (1)		30.62				29.29

(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, except per share amounts
		Three Months Ended												Nine Months Ended
		September 30,												September 30,
		2017						2016						2017						2016
Underwriting revenues:
Gross premiums written		$			179.2			$			164.4			$			561.3			$			545.7
Premiums ceded		(1.6				)		(1.4				)		(4.5				)		(5.3				)
Net premiums written		177.6						163.0						556.8						540.4
Net premiums earned		187.9						173.3						535.0						522.8
Underwriting expenses:
Losses and LAE incurred		(116.9				)		(109.0				)		(332.0				)		(328.0				)
Commission expense		(23.7				)		(21.3				)		(66.7				)		(63.5				)
Underwriting and other operating expenses		(33.6				)		(31.7				)		(102.1				)		(101.6				)
Underwriting income		13.7						11.3						34.2						29.7
Net investment income		18.5						17.9						55.4						54.1
Net realized gains on investments		4.1						1.6						7.4						9.1
Gain on redemption of notes payable		—						—						2.1						—
Other income		0.4						—						0.5						0.6
Interest expense		(0.3				)		(0.4				)		(1.1				)		(1.2				)
Other expenses		(7.5				)		—						(7.5				)		—
Income tax expense		(7.0				)		(7.8				)		(21.1				)		(21.1				)
Net income		21.9						22.6						69.9						71.2
Net unrealized gains on investments arising during the period, net of tax		3.0						(4.2				)		20.9						39.9
Reclassification adj. for realized gains in net income, net of tax		(2.7				)		(1.0				)		(4.8				)		(5.9				)
Comprehensive income		$			22.2			$			17.4			$			86.0			$			105.2
Add (subtract)
Amortization of deferred reinsurance gain - losses		$			(2.1	)		$			(2.5	)		$			(7.0	)		$			(7.2	)
Amortization of deferred reinsurance gain - contingent commission		(0.4				)		(0.5				)		(1.5				)		(1.5				)
LPT reserve adjustment		—						—						—						(3.1				)
LPT contingent commission adjustments		—						—						—						(1.8				)
Net income before impact of the LPT Agreement (1)		$			19.4			$			19.6			$			61.4			$			57.6
Add (subtract)
Impact of the LPT Agreement		$			(2.5	)		$			(3.0	)		$			(8.5	)		$			(13.6	)
Net realized gains on investments, net of tax		(2.7				)		(1.0				)		(4.8				)		(5.9				)
Gain on redemption of notes payable, net of tax		—						—						(1.4				)		—
Write-off of previously capitalized costs, net of tax		4.9						—						4.9						—
Amortization of intangibles, net of tax		—						0.1						0.1						0.2
Operating income 1		$			21.6			$			18.7			$			60.2			$			51.9
(1) See Page 10 regarding our use of Non-GAAP Financial Measures.

EMPLOYERS HOLDINGS, INC.
Return on Equity (unaudited)
$ in millions, except per share amounts
				Three Months Ended												Nine Months Ended
				September 30,												September 30,
				2017						2016						2017						2016
Net income		A		$			21.9			$			22.6			$			69.9			$			71.2
Add (subtract):
Impact of LPT Agreement				(2.5				)		(3.0				)		(8.5				)		(13.6				)
Net realized gains on investments, net of tax				(2.7				)		(1.0				)		(4.8				)		(5.9				)
Gain on redemption of notes payable, net of tax				—						—						(1.4				)		—
Write-off of previously capitalized costs, net of tax				4.9						—						4.9						—
Amortization of intangibles, net of tax				—						0.1						0.1						0.2
Operating income (1)		B		$			21.6			$			18.7			$			60.2			$			51.9
Stockholders' equity - end of period				$			917.1			$			850.1			$			917.1			$			850.1
Stockholders' equity - beginning of period				899.2						845.3						840.6						760.8
Average stockholders' equity		C		$			908.2			$			847.7			$			878.9			$			805.5
Stockholders' equity - end of period				$			917.1			$			850.1			$			917.1			$			850.1
Add (subtract):
Deferred reinsurance gain				166.4						177.8						166.4						177.8
Accumulated other comprehensive income, net of tax				(90.6				)		(117.6				)		(90.6				)		(117.6				)
Adjusted stockholders' equity - end of period				992.9						910.3						992.9						910.3
Adjusted stockholders' equity - beginning of period				977.8						903.2						941.0						866.7
Average adjusted stockholders' equity (1)		D		$			985.4			$			906.8			$			967.0			$			888.5
Return on stockholders' equity		A / C		2.4				%		2.7				%		8.0				%		8.8				%
Annualized return on stockholders' equity				9.6						10.7						10.6						11.8
Operating return on adjusted stockholders' equity (1)		B / D		2.2				%		2.1				%		6.2				%		5.8				%
Annualized operating return on adjusted stockholders' equity (1)				8.8						8.2						8.3						7.8
(1) See Page 10 for information regarding our use of Non-GAAP Financial Measures.

EMPLOYERS HOLDINGS, INC.
Combined Ratios (unaudited)
$ in millions, except per share amounts
				Three Months Ended												Nine Months Ended
				September 30,												September 30,
				2017						2016						2017						2016
Net premiums earned		A		$			187.9			$			173.3			$			535.0			$			522.8
Losses and LAE incurred		B		116.9						109.0						332.0						328.0
Amortization of deferred reinsurance gain - losses				2.1						2.5						7.0						7.2
Amortization of deferred reinsurance gain - contingent commission				0.4						0.5						1.5						1.5
LPT reserve adjustment				—						—						—						3.1
LPT contingent commission adjustments				—						—						—						1.8
Losses and LAE before impact of the LPT (1)		C		$			119.4			$			112.0			$			340.5			$			341.6
Prior year loss reserve development				(0.2				)		0.8						(0.5				)		(1.5				)
Losses and LAE before impact of the LPT - current accident year		D		$			119.6			$			111.2			$			341.0			$			343.1
Commission expense		E		$			23.7			$			21.3			$			66.7			$			63.5
Underwriting and other operating expenses		F		33.6						31.7						102.1						101.6
GAAP combined ratio:
Loss and LAE ratio		B/A		62.2				%		62.9				%		62.1				%		62.7				%
Commission expense ratio		E/A		12.6						12.3						12.4						12.1
Underwriting and other operating expense ratio		F/A		17.9						18.3						19.1						19.5
GAAP combined ratio				92.7				%		93.5				%		93.6				%		94.3				%
Combined ratio before impact of the LPT: (1)
Loss and LAE ratio before impact of the LPT		C/A		63.5				%		64.6				%		63.6				%		65.3				%
Commission expense ratio		E/A		12.6						12.3						12.4						12.1
Underwriting and other operating expense ratio		F/A		17.9						18.3						19.1						19.5
Combined ratio before impact of the LPT				94.0				%		95.2				%		95.2				%		96.9				%
Combined ratio before impact of the LPT: current accident year (1)
Loss and LAE ratio before impact of the LPT		D/A		63.7				%		64.1				%		63.7				%		65.6				%
Commission expense ratio		E/A		12.6						12.3						12.4						12.1
Underwriting and other operating expense ratio		F/A		17.9						18.3						19.1						19.5
Combined ratio before impact of the LPT: current accident year				94.1				%		94.7				%		95.3				%		97.2				%
(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												Nine Months Ended
		September 30,												September 30,
		2017						2016						2017						2016
Unpaid losses and LAE at beginning of period		$			2,284.9			$			2,332.3			$			2,301.0			$			2,347.5
Reinsurance recoverable on unpaid losses and LAE		559.8						598.8						580.0						628.2
Net unpaid losses and LAE at beginning of period		1,725.1						1,733.5						1,721.0						1,719.3
Losses and LAE incurred:
Current year losses		119.7						111.1						341.0						343.1
Prior year losses on voluntary business		—						—						—						—
Prior year losses on involuntary business		(0.2				)		0.8						(0.5				)		(1.5				)
Total losses incurred		119.5						111.9						340.5						341.6
Losses and LAE paid:
Current year losses		23.5						23.7						45.2						42.8
Prior year losses		75.3						83.2						270.5						279.6
Total paid losses		98.8						106.9						315.7						322.4
Net unpaid losses and LAE at end of period		1,745.8						1,738.5						1,745.8						1,738.5
Reinsurance recoverable on unpaid losses and LAE		553.1						591.5						553.1						591.5
Unpaid losses and LAE at end of period		$			2,298.9			$			2,330.0			$			2,298.9			$			2,330.0

EMPLOYERS HOLDINGS, INC.
Consolidated Investment Portfolio (unaudited)
$ in millions
		September 30, 2017																	December 31, 2016
Investment Positions:		Cost or Amortized Cost				Net Unrealized Gain				Fair Value						%			Fair Value				%
Fixed maturities		$	2,360.6			$	55.5			$	2,416.1					90	%		$	2,344.4			89	%
Equity securities		119.3				83.9				203.2						8			192.2				7
Short-term investments		5.5				—				5.5						—			16.0				1
Cash and cash equivalents		69.4				—				69.4						3			67.2				3
Restricted cash and cash equivalents		1.1				—				1.1						—			3.6				—
Total investments and cash		$	2,555.9			$	139.4			$	2,695.3					100	%		$	2,623.4			100	%
Breakout of Fixed Maturities:
U.S. Treasuries and Agencies		$	143.1			$	2.9			$	146.0					6	%		$	140.2			6	%
States and Municipalities		671.0				29.4				700.4						29			851.6				36
Corporate Securities		1,040.3				20.0				1,060.3						44			956.7				41
Mortgage-Backed Securities		451.8				3.0				454.8						19			353.5				15
Asset-Backed Securities		54.4				0.2				54.6						2			42.4				2
Total fixed maturities		$	2,360.6			$	55.5			$	2,416.1					100	%		$	2,344.4			100	%
Weighted average book yield														3.2%							3.1%
Weighted average tax equivalent yield														3.7%							3.6%
Average credit quality (S&P)														AA-							AA-
Duration														4.1							4.3

EMPLOYERS HOLDINGS, INC.
Book Value Per Share (unaudited)
$ in millions, except per share amounts
		September 30, 2017				December 31, 2016				September 30, 2016				December 31, 2015
Numerators:
Stockholders' equity	A	$	917.1			$	840.6			$	850.1			$	760.8
Plus: Deferred reinsurance gain		166.4				174.9				177.8				189.5
Stockholders' equity including deferred reinsurance gain (1)	B	1,083.5				1,015.5				1,027.9				950.3
Less: Accumulated other comprehensive income, net of tax		90.6				74.5				117.6				83.6
Adjusted stockholders' equity (1)	C	$	992.9			$	941.0			$	910.3			$	866.7
Denominator (shares outstanding)	D	32,423,929				32,128,922				32,109,976				32,216,480
GAAP book value per share (1)	A / D	$	28.28			$	26.16			$	26.47			$	23.62
Book value per share (1)	B / D	33.42				31.61				32.01				29.50
Adjusted book value per share (1)	C / D	30.62				29.29				28.35				26.90
Cash dividends declared per share		$	0.45			$	0.36			$	0.27			$	0.24
YTD Change in: (2)
GAAP book value per share		9.8		%						13.2		%
Book value per share		7.1								9.4
Adjusted book value per share		6.1								6.4
(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 in the period.

EMPLOYERS HOLDINGS, INC.
Earnings Per Share (unaudited)
$ in millions, except per share amounts
				Three Months Ended								Nine Months Ended
				September 30,								September 30,
				2017				2016				2017				2016
Numerators:
Net income		A		$	21.9			$	22.6			$	69.9			$	71.2
Add (subtract):
Impact of the LPT Agreement				(2.5		)		(3.0		)		(8.5		)		(13.6		)
Net income before impact of LPT (1)		B		$	19.4			$	19.6			$	61.4			$	57.6
Net realized gains on investments, net of tax				(2.7		)		(1.0		)		(4.8		)		(5.9		)
Gain on redemption of notes payable, net of tax				—				—				(1.4		)		—
Write-off of previously capitalized costs, net of tax				4.9				—				4.9				—
Amortization of intangibles, net of tax				—				0.1				0.1				0.2
Operating income (1)		C		$	21.6			$	18.7			$	60.2			$	51.9
Denominators:
Average common shares outstanding (basic)		D		32,563,800				32,449,617				32,454,443				32,497,478
Average common shares outstanding (diluted)		E		33,053,985				32,948,962				33,007,217				33,015,873
Net income per share:
Basic		A / D		$	0.67			$	0.70			$	2.15			$	2.19
Diluted		A / E		0.66				0.69				2.12				2.16
Net income before impact of the LPT per share: (1)
Basic		B / D		$	0.60			$	0.60			$	1.89			$	1.77
Diluted		B / E		0.59				0.59				1.86				1.74
Operating income per share: (1)
Basic		C / D		$	0.66			$	0.58			$	1.85			$	1.60
Diluted		C / E		0.65				0.57				1.82				1.57
(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 a "non-GAAP financial measure" as defined in Regulation G pursuant to Section 401 of the Sarbanes - Oxley Act of 2002. 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 impact 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 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.

Operating income (see Page 4 for calculations)is net income before the impact of the LPT Agreement, net realized gains (losses) on investments (net of tax), gain on redemption of notes payable (net of tax), write-off of previously capitalized costs (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.

Stockholders' equity including the deferred reinsurance gain is stockholders' equity including the deferred reinsurance 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 reinsurance 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 Operating 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.

GAAP book value per share , Book value per share 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.

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: http://www.businesswire.com/news/home/20171025006235/en/

Source: Employers Holdings, Inc.

Employers Holdings, Inc.
Media:
Ty Vukelich, 775-327-2677
tvukelich@employers.com
or
Analysts:
Mike Paquette, 775-327-2562
mwoodard@employers.com