Employers

Q2 FY2026 EarningsQ2 FY26 results significantly exceeded consensus expectations on the bottom line despite a top-line miss: revenue was $220.2M vs. $203.5M expected, while GAAP EPS reached $1.59, far surpassing the $0.68 consensus. The earnings beat was primarily driven by $18.7M in net realized and unrealized investment gains and a lower-than-expected effective tax rate of 16.1% vs. 20.1% consensus. However, core underwriting performance remained under pressure with a combined ratio of 105.8%, reflecting a 19.6% YoY decline in gross premiums written as the company prioritizes pricing discipline over volume.