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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): November 24, 2010
 
EMPLOYERS HOLDINGS, INC.
(Exact Name of Registrant as Specified in its Charter)
                                               

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

 
 
 
 
 
 
Section 7 – Regulation FD
 
Item 7.01.       Regulation FD Disclosure.
 
In connection with presentations by senior management of Employers Holdings, Inc. (the "Company") with certain analysts and investors, the Company is disclosing certain information (the "Disclosed Information").
 
Statements made in the Disclosed Information that are not historical are forward-looking statements that reflect management's current views with respect to future events and performance and may include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical fact. Such statements are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. See "Forward-looking Statements" in the Disclosed Information.
 
A copy of the Disclosed Information is furnished as Exhibit 99.1 to this Current Report on Form 8-K. The information set forth under "Item 7.01. Regulation FD Disclosure" and in Exhibit 99.1 is intended to be furnished pursuant to Item 7.01. Such information, including Exhibit 99.1, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing. The furnishing of information pursuant to Item 7.01 shall not be deemed an admission by the Company as to the materiality of such information.
 
Section 9 – Financial Statements and Exhibits
 
Item 9.01.        Financial Statements and Exhibits.
 
 
99.1       Presentation Materials
 
 
 
 
 
 
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.
 
 
EMPLOYERS HOLDINGS, INC.
   
   
 
By:
/s/ William E. Yocke
 
Name:
William E. Yocke
 
Title:
Executive Vice President and Chief Financial Officer
 
Dated:    November 24, 2010
 
 
 
 
 
Exhibit Index
 
Exhibit No.
  
Exhibit
99.1
  
Presentation Materials

ex99_1.htm
Exhibit 99.1
 
Employers Holdings, Inc.
Investor Presentation
November, 2010
 
 
 
1
Safe Harbor Disclosure
This slide presentation is for informational purposes only. It should be read in conjunction with our Form 10-K for the year 2009, our Form
10-Qs and our Form 8-Ks filed with the Securities and Exchange Commission (SEC), all of which are available on the “Investor Relations”
section of our website at www.employers.com.
Non-GAAP Financial Measures
In presenting Employers Holdings, Inc.’s (EMPLOYERS) results, management has included and discussed certain non-GAAP financial
measures, as defined in Regulation G. Management believes these non-GAAP measures better explain EMPLOYERS results allowing for
a more complete understanding of underlying trends in our business. These measures should not be viewed as a substitute for those
determined in accordance with GAAP. The reconciliation of these measures to their most comparable GAAP financial measures is included
in this presentation or in our Form 10-K for the year 2009, our Form 10-Qs and our Form 8-Ks filed with the Securities and Exchange
Commission (SEC) and available in the “Investor Relations” section of our website at www.employers.com.
Forward-looking Statements
This presentation may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include statements regarding anticipated future results and can be identified by the fact that they do not relate
strictly to historical or current facts. They often include words like "believe”, "expect”, "anticipate”, "estimate" and "intend" or future or
conditional verbs such as "will”, "would”, "should”, "could" or "may”. All subsequent written and oral forward-looking statements attributable
to us or individuals acting on our behalf are expressly qualified in their entirety by these cautionary statements.
Any forward-looking statements made in this presentation reflect EMPLOYERS current views with respect to future events, business
transactions and business performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act
of 1995. Such statements involve risks and uncertainties, which may cause actual results to differ materially from those set forth in these
statements.
We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future
events or otherwise.
Copyright © 2010 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. The company, through its subsidiaries, operates in 30 states. 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.
 
 
 
2
Overview
Business
· Specialty provider of workers’ compensation
 insurance
· Coverage generally required by statute
 Ø Medical, temporary/permanent indemnity, death
Geographic
· Diversified: 30 states with concentrations in
 CA, FL, WI, IL and NV
 Ø Unique markets by state and area
Customers
· Small “Main Street” businesses
· Low-to-medium hazard exposure industries
 Ø Top classes include restaurants, physicians, dentists,
 clerical, retail stores
· Distribution through agents and strategic
 partners
$38 billion per year
industry
(2010, A.M. Best)
Highly focused
business model
Operate in 76% of
total market
(2010, A.M. Best)
 
 
 
3
Selectively Expanding Footprint
2000
2002
2006
2007
FL
NM
MD
TX
OK
KS
NE
SD
ND
MT
WY
CO
UT
ID
AZ
NV
WA
CA
OR
KY
ME
PA
NH
MA
CT
VA
WV
OH
IN
IL
NC
TN
SC
AL
AR
LA
MO
IA
MN
MS
VT
NJ
DE
RI
2008
1913 - 1999
 State WC
 fund in NV
2000
 Privatization
2007
 Demutualization
 and IPO - entry
 into FL, IL and
 OR
2002
 Acquisition,
 book of
 business in
 CA, UT, ID,
 MT, CO
2005 Formation of
 mutual hold co
2008 Acquisition of
 AmCOMP
 Incorporated,
 entry into IA
2006 Entry into
 TX, AZ
In Force Premiums Written (%)
09/30/10
GA
Highlights
(at September 30, 2010)
•  12 Mo. NPW: $307 million
• Adjusted BV per share: $22.69
•  Q 3 CR before LPT: 117.5%
 
 
 
Current operating environment is characterized by high levels of unemployment, reduced
work hours, price competition and historically low yields.
• This year, combined four regional operating units into two,
 consolidated offices and reduced staffing by 160
• Total savings from combined actions over last two years
 are expected to be $34 million in 2011 ($25 million in
 underwriting and other operating expense and $9 million in
 loss adjustment expense)
4
Current trends - actions
• Positive net rate in California which represents half our
 book of business for seventeen months (through August)
• Adding agents and policies; deploying rapid quote system -
 with focus in newer states
• Two year targets: add over 900 agencies and 20,000
 policies
 
 
 
5
$ million
# policies
Market Penetration
Purchased
Fremont
Book of
Business
Purchased
AmCOMP
Incorporated
Policy Count ‘02-’09
CAGR = 9.3%
NPW ‘02-’09 CAGR = 10.2%
* Trailing Twelve Months
 
 
 
6
Disciplined Risk Selection
Hazard Group A
Hazard Group B
Hazard Group C
Hazard Group D
Hazard Group E
Hazard Group F
Hazard Group G
Lower
Risk
Higher
Risk
EMPLOYERS = 83% of Total
In Force Premium, Hazard
Groups A - D
% In Force Premiums, 12/31/09
EMPLOYERS
Top 10 Classes
EMPLOYERS
Top 10 Classes
NCCI
Hazard
Group
%
In Force
Premium
Focused guidelines and selection within industry-defined classes
 
 
 
7
Delivering Superior Loss Ratios
Consistently lower Loss and LAE Ratios than the industry
A.M. Best, “Aggregates and Averages”
 
 
 
8
Strategic Partnerships
Unique Distribution Network
Industry Focused
• 1,600 in place
• Strong relationships
 with agents 
• Two key partners
 Ø ADP
 Ø Anthem Blue Cross
Restaurants and
physicians are our top
two classes of customers
• California Restaurant Association
 provider of choice
• California Medical Association
 sponsorship
• NFIB (National Federation of
 Independent Business)
  
Independent Agents and Brokers
 
 
 
9
Increasing Points of Access
Partnerships
… a distribution
advantage by
expanding market
reach and providing
local knowledge
… in high persistency
… about 20% of 
in-force premiums 
at 9/30/10
 
 
 
10
Strong Retention Rates
Strategic partnerships result in consistently higher retention rates
 
 
 
11
Superior Claims Management
 
 
 
Key Highlights
INCOME STATEMENT ($ million except
per share)
Q3 2010
Q 2 2010
Q 1 2010
Q 3 2009
Net premiums earned
80.7
78.2
79.3
98.2
Net investment income
20.7
20.6
21.3
22.3
GAAP net income
10.1
16.5
16.1
30.6
Net income before the LPT
5.3
12.1
11.7
25.9
Earnings per share before the LPT
.13
0.29
0.27
0.57
BALANCE SHEET ($ million)
9/30/10
6/30/10
3/31/10
12/31/09
Total investments
2,084.2
 2,012.3
2,027.4
2,029.6
Cash and cash equivalents
144.0
 193.1
190.3
 191.6
Total assets
3,583.2
 3,614.2
3,651.5
3,676.7
Reserves for loss and LAE
2,325.8
 2,359.4
2,393.9
2,425.7
Shareholders’ equity
528.8
 521.3
509.2
 498.4
Equity including LPT deferred gain
903.8
 901.1
893.4
 887.0
UNDERWRITING
Q3 2010
Q 2 2010
Q 1 2010
Q 3 2009
Loss ratio before LPT
71.3
 63.2%
56.3%
59.1%
Combined ratio before LPT
117.5
107.4%
111.3%
93.7%
Change in net rate (premium in-force/insured
payroll)
-4% (since 12/31/09)
-6% (since 9/30/09)
-2% (since 12/31/09)
-6% (since 6/30/09)
-1% (since 12/31/09)
-5% (since 6/30/09)
 
Change in insured payroll
-11% (since 12/31/09)
-15% (since 9/30/09)
-9% (since 12/31/09)
-16% (since 6/30/09)
-7% (since 12/31/09)
-17% (since 6/30/09)
 
FINANCIAL
9/30/10
6/30/10
3/31/10
12/31/09
Book value per share
$22.69
$21.63
$20.91
$20.67
Return on average adjusted equity (12
mos.)
3.9%
 6.4%
6.9%
 7.5%
 
 
 
13
Loss Portfolio Transfer (LPT)
 Claims 6/30/1995 and prior - Approximately
 3,500 claims open as of 9/30/10 with 4.5%
 closing each year
 Remaining liabilities at 9/30/10: $857.5 million
 
 
 
14
Return on Average Adjusted Equity, Increasing
Book Value per Share
NOTE: 50,000,002 pro forma shares prior to February 5, 2007 (IPO date)
 Return on Average Equity includes deferred gain related to the LPT - equity in the ROE calculation is averaged for the period
(Pro
forma)
(Pro
forma)
* Trailing Twelve Months
 
 
 
15
History of Reserve Strength
Reserve Review
Reserve Development
Net reserves for workers’ comp industry estimated to be deficient by $9 Billion at 12/31/09 (1)
(1) NCCI, “State of the Line” - May 6, 2010 - an increase of 50% from $6 billion in 2008
Net Calendar Year Reserve Releases for
Prior Accident Years ($ million)
$16.6
million
YTD
 
 
 
 
 
16
Strong Capital Position
($ million)
.7 to 1
NPW/Statutory
Surplus Ratio
$355 million
extraordinary
dividends to
parent in 2008
Statutory surplus provides a solid basis for underwriting
$150 million
extraordinary
dividends to
parent in 2010
 
 
 
 
 
 
 
 
17
Prudent Capital Management
Investing in the Future
Returning Capital to Shareholders
Holding Company Flexibility at 9/30/10
• Debt to total capital ratio - 12.7%
• $400 million in cash and securities
• Generating capital to invest in operations/securities
• Deploying capital - opportunistic acquisitions
 – Acquired AmCOMP (October, 2008) - equity value $189 million with expected savings of $20 - $22 million in 2010
• Controlling costs
 – Underwriting and other operating expense declined 23.6% over prior year’s third quarter
 – TOTAL expected savings from cost controls: $34 million beginning in 2011 (75% operating expense; 25% LAE)
• Dividends - $0.24 per share or $11 million per year - subject to Board approval
• Share Repurchases - $50 million complete with additional $100 million authorized through June, 2012
Common share repurchases and
dividends as a percent of net income
before the LPT
 
 
 
18
• 96% fixed maturities with an
 average weighted rating of AA
• Average book yield of 4.3%
• Tax equivalent book yield of 5.4%
• Effective duration of 4.9
• Managed by Conning Asset
 Management
High Quality Investment Portfolio
Portfolio at 9/30/10
$2.1 billion fair market value
 
 
 
19
High Quality Reinsurance
Program Structure, Effective 7/1/10
Reinsurance Management
Reinsurers by Market
 
 
 
20
Summary of Financial Strength
Strong
Underwriting
Leverage
Conservative
Reserving
High Quality
Investment
Portfolio
Catastrophe
Reinsurance
Program
.7 to 1 NPW to
Surplus at 9/30/10
$2.1 billion -
approximately 96%
invested in fixed
maturities with
average weighted
rating of AA
Track record of
reserve strength:
since IPO, $199.5
million favorable
prior AY reserve
development as of
9/30/10
Coverage up to
$200 M loss
 
 
 
21
Key Strategies
FOCUS
GROWTH
CAPITAL
• Target attractive
 small business
 market
• Maintain
 disciplined risk
 selection,
 underwriting,
 pricing and
 claims operations
• Focus on
 underwriting
 profitability
• Selectively
 expand into
 additional
 markets
• Increase
 penetration in
 current markets
• Leverage
 infrastructure,
 technology and
 systems
• Develop existing
 and new
 distribution
 partners
• Invest in core
 operations
• Invest in strategic
 acquisitions
• Return capital to
 shareholders
 
 
 
22
Key Strengths
• Strong underwriting franchise with established presence in attractive markets
 – 97 year operating history - attractive, underserved target market segment with
 growth opportunities
• Unique, long-standing strategic distribution relationships
• Conservative risk profile and prudent capital management
• Strong financial position and strong balance sheet
 – rated A- by A.M. Best
• Experienced management team with deep knowledge of workers’ compensation
 – average 27 years experience with the ability to manage through challenging
 operating conditions
 
 
 
23
Douglas D. Dirks
President & Chief Executive Officer
Employers Holdings, Inc.


William E. (Ric) Yocke
Chief Financial Officer
Employers Holdings, Inc.



Analyst Contact:

Vicki Erickson
Vice President, Investor
Relations
Employers Holdings, Inc.
(775) 327-2794
verickson@employers.com
10375 Professional Circle
Reno, NV 89521
(775) 327-2700
 
 
 
Appendix
 
 
 
24
Stock Ownership Limitations
As a reminder to investors, Employers Holdings, Inc. (EMPLOYERS) owns four insurance companies, domiciled in three
different states. These wholly-owned insurers are regulated by insurance commissioners and are subject to the statutes
and regulations of the various states where they are domiciled and authorized to transact insurance. As a result,
EMPLOYERS has the following stock ownership limitations, which must be satisfied prior to certain stock transactions.
● For a period of five years following the effective date of the Plan of Conversion of EMPLOYERS, which was February 5,
   2007, no person may directly or indirectly acquire or offer to acquire in any manner beneficial ownership of 5% or more of
   any class of EMPLOYERS voting securities without the prior approval by the Nevada Commissioner of Insurance of an
   application for acquisition under Section 693A.500 of the Nevada Revised Statutes.
● Under Nevada insurance law, the Nevada Commissioner of Insurance may not approve an application for such
   acquisition unless the Commissioner finds that (1) the acquisition will not frustrate the plan of conversion as approved by
   our members and the Commissioner, (2) the board of directors of Employers Insurance Company of Nevada has
   approved the acquisition or extraordinary circumstances not contemplated in the plan of conversion have arisen which
   would warrant approval of the acquisition, and (3) the acquisition is consistent with the purpose of relevant Nevada
   insurance statutes to permit conversions on terms and conditions that are fair and equitable to the members eligible to
   receive consideration.
● Furthermore, any person or entity who individually or together with an affiliate (as defined by applicable law) seeks to
   directly or indirectly acquire in any manner, at any time, beneficial ownership of 5% or more of any class of EMPLOYERS
   voting securities, will be subject to certain requirements, including the prior approval of the proposed acquisition by
   certain state insurance regulators, depending upon the circumstances involved. Any such acquisition without prior
   satisfaction of applicable regulatory requirements may be deemed void under state law.
 
 
 
25
Operating Organization
Employers Holdings, Inc.
Employers
Insurance Company
of Nevada
Employers
Compensation
Insurance Company
Employers
Preferred
Insurance Company
Employers
Occupational
Health, Inc.
Employers
Assurance
Company
Employers Group, Inc.
 
 
 
26
Income Statement ($ million)
2005
2006
2007
2008
2009
Gross Written Premium
$ 451.4
$ 386.8
$ 351.8
$ 318.4
$ 379.9
Net Written Premium
432.5
372.2
339.7
308.3
368.3
Net Earned Premium
438.3
393.0
346.9
328.9
404.2
Net Investment Income
54.4
68.2
78.6
78.1
90.5
Net Income
137.6
171.6
120.3
101.8
83.0
Net Income Before LPT
93.8
152.2
102.2
83.4
65.0
Balance Sheet ($ million)
2005
2006
2007
2008
2009
Total Investments
$ 1,595.8
$ 1,715.7
$ 1,726.3
$ 2,042.9
$ 2,029.6
Cash and Cash Equivalents
61.1
80.0
149.7
202.9
191.6
Total Assets
3,188.8
3,266.8
3,264.3
3,825.1
3,676.7
Reserves for Loss and LAE
2,350.0
2,307.8
2,269.7
2,506.5
2,425.7
Shareholders’ Equity
144.6
303.8
379.5
444.7
498.4
Equity Including LPT Deferred Gain
607.0
746.8
804.5
851.3
887.0
Selected Operating Results
 
 
 
27
Calendar Year Combined Ratio
84.9%
72.6%
85.6%
(LPT is 10%)
(LPT is 4.9%)
91.5%
(LPT is 5.2%)
(LPT is 5.6%)
(LPT is 4.5%)
102.5%
111.3%
(LPT is 5.5%)
107.4%
(LPT is 5.6%)
117.5%
(LPT is 5.9%)
 
 
 
FL
NM
MD
TX
OK
KS
NE
SD
ND
MT
WY
CO
UT
ID
AZ
NV
WA
CA
OR
KY
NY
PA
MA
CT
VA
WV
OH
IN
NC
TN
SC
AL
AR
LA
MO
IA
MN
MS
VT
NJ
DE
RI
GA
28
Regional Pricing Trends: 01/01/10 thru 12/31/10
Corporate Headquarters
 States Licensed, actively writing
States Licensed, not actively writing
%     Employers Insurance Co of NV (EICN)
%   Employers Comp Ins Company (ECIC)
%   Employers Assurance Co (EAC)
%   Employers Preferred Insurance Co (EPIC)
+3.0%
-7.4%
-4.2%
-9.7%
-2.6%
-18.8%
-0.1%
-24.5%
+7.0% -4.5%
-6.7%
-37.4%
+2.3%
-28.7%
+22.0%
-6.1%
-27.0%
-
29.8
%
+3.7%
-14.3%
+14.2%
-28.1%
-19.1%
-28.3%
+4.4%
-37.8%
-13.7%
-1.1%
-1.3%
-34.7%
+2.2%
-42.1%
-9.6%
-9.6%
-0.2%
-4.2%
-7.6%
-7.5%
+6.2%
-28.1%
-5.8%
-5.8%
+8.7%
-24.1%
-0.1%
-0.1%
-6.4%
+1.9%
+5.8%
-32.6%
-9.8%
-9.8%
-21.2%
-10.0%
+3.0%
+3.0%
-6.8%
-6.8%
-4.2%
-4.2%
-6.8%
-4.2%
+0.7%
ME
NH
WESTERN
EASTERN
-5.3%
-5.3%
-10.3%
-
10.3
%
+3.4%
DC