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Employers Holdings (Employers Holdings) Return-on-Tangible-Equity : 19.90% (As of Dec. 2023)


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What is Employers Holdings Return-on-Tangible-Equity?

Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Employers Holdings's annualized net income for the quarter that ended in Dec. 2023 was $182.4 Mil. Employers Holdings's average shareholder tangible equity for the quarter that ended in Dec. 2023 was $916.7 Mil. Therefore, Employers Holdings's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2023 was 19.90%.

The historical rank and industry rank for Employers Holdings's Return-on-Tangible-Equity or its related term are showing as below:

EIG' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 4.7   Med: 13.31   Max: 17.3
Current: 12.97

During the past 13 years, Employers Holdings's highest Return-on-Tangible-Equity was 17.30%. The lowest was 4.70%. And the median was 13.31%.

EIG's Return-on-Tangible-Equity is ranked better than
52.72% of 478 companies
in the Insurance industry
Industry Median: 11.77 vs EIG: 12.97

Employers Holdings Return-on-Tangible-Equity Historical Data

The historical data trend for Employers Holdings's Return-on-Tangible-Equity can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Employers Holdings Return-on-Tangible-Equity Chart

Employers Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 15.03 10.51 10.26 4.70 12.71

Employers Holdings Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Return-on-Tangible-Equity Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 21.37 10.38 15.29 6.32 19.90

Competitive Comparison of Employers Holdings's Return-on-Tangible-Equity

For the Insurance - Specialty subindustry, Employers Holdings's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Employers Holdings's Return-on-Tangible-Equity Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Employers Holdings's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Employers Holdings's Return-on-Tangible-Equity falls into.



Employers Holdings Return-on-Tangible-Equity Calculation

Employers Holdings's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2023 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Dec. 2023 )  (A: Dec. 2022 )(A: Dec. 2023 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Dec. 2023 )  (A: Dec. 2022 )(A: Dec. 2023 )
=118.1/( (894.4+964.1 )/ 2 )
=118.1/929.25
=12.71 %

Employers Holdings's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2023 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Dec. 2023 )  (Q: Sep. 2023 )(Q: Dec. 2023 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Dec. 2023 )  (Q: Sep. 2023 )(Q: Dec. 2023 )
=182.4/( (869.2+964.1)/ 2 )
=182.4/916.65
=19.90 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Dec. 2023) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


Employers Holdings  (NYSE:EIG) Return-on-Tangible-Equity Explanation

Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.


Be Aware

Net Income is used.

Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.


Employers Holdings Return-on-Tangible-Equity Related Terms

Thank you for viewing the detailed overview of Employers Holdings's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.


Employers Holdings (Employers Holdings) Business Description

Traded in Other Exchanges
Address
10375 Professional Circle, Reno, NV, USA, 89521
Employers Holdings Inc provides workers' compensation insurance, primarily to small businesses in low- to medium hazard industries. Its customers are employers, and the insurance premiums that those employers pay account for more than 90% of total company revenue. Substantially all of the remaining revenue is generated through investments. The company operates exclusively in the United States, and it generates more than half of its business in California. By industry, the company has the most exposure to restaurants, which account for roughly a fourth of the total premiums the company earns.
Executives
Katherine H. Antonello officer: EVP, Chief Actuary 10375 PROFESSIONAL CIRCLE, RENO NV 89521
Alejandro Perez-tenessa director 10375 PROFESSIONAL CIRCLE, RENO NV 89521
Michael J Mcsally director 10375 PROFESSIONAL CIRCLE, RENO NV 89521
Christopher Laws officer: EVP, Chief Actuary 10375 PROFESSIONAL CIRCLE, RENO NV 89521
Tracey Lynn Berg officer: EVP, Chief Information Officer 10375 PROFESSIONAL CIRCLE, RENO NV 89521
Stephen V Festa officer: Sr VP & CCO, EICN and ECIC 9790 GATEWAY DRIVE, SUITE 200, RENO NV 89521
Douglas D Dirks director, officer: President and CEO of EIG 10375 PROFESSIONAL CIRCLE, RENO NV 89521
De Figueiredo Joao M director 10375 PROFESSIONAL CIRCLE, RENO NV 89521
James R Kroner director 600 FOURTH STREET, P.O. BOX 6000, SIOUX CITY IA 51102-6000
Jeanne L Mockard director PUTNAM INVESTMENTS, ONE POST OFFICE SQUARE, BOSTON MA 02109
Lawrence S Rogers officer: SVP, Chief Underwriting Office 10375 PROFESSIONAL CIRCLE, RENO NV 89521
Richard W Blakey director 10375 PROFESSIONAL CIRCLE, RENO NV 89521
John M. Mutschink officer: SVP, Chief HR Officer 10375 PROFESSIONAL CIRCLE, RENO NV 89521
Michael Scott Paquette officer: EVP, Chief Financial Officer EMPLOYERS HOLDINGS, INC., 10375 PROFESSIONAL CIRCLE, RENO NV 89521
Barry J. Vogt officer: SVP, Chief Claims Officer 10375 PROFESSIONAL CIRCLE, RENO NV 89521