Employers Addresses California Cumulative Trauma Claims in Q4 Earnings Call

Insurer details steps to manage elevated claim frequency, capital returns, and new excess workers' comp product launch

Published on Feb. 23, 2026

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Employers (NYSE:EIG) used its fourth-quarter 2025 earnings call to detail steps it is taking to address elevated claim frequency tied to California cumulative trauma (CT) filings, while highlighting capital returns, expense management initiatives, and the rollout of a new excess workers' compensation product.

Why it matters

Employers is a leading workers' compensation insurer, and its response to the surge in California CT claims provides insights into broader industry trends and challenges. The company's actions to manage this issue, as well as its strategic moves to diversify and enhance profitability, are closely watched by investors and industry analysts.

The details

CEO Kathy Antonello said the elevated frequency of California CT claims remains a California-specific issue, noting that claim frequency in other states and within non-CT claims in California 'continues to trend favorably.' Antonello said the company recognized early that the CT environment was creating a hard market in California and responded with rate increases and tightened underwriting restrictions on several classes of business. CFO Mike Pedraja reported gross premiums written of $156.8 million, down 11% from the prior-year quarter, primarily due to lower new business and final audit premiums, partially offset by higher renewal business. Losses and loss adjustment expenses increased 18.7% to $134.4 million, driven by the 2025 accident year. Underwriting expenses fell 10% to $39.8 million due to expense management efforts.

  • Employers reported Q4 2025 earnings on February 23, 2026.

The players

Kathy Antonello

Chief Executive Officer of Employers.

Mike Pedraja

Chief Financial Officer of Employers.

Employers

A publicly traded property and casualty insurance holding company headquartered in Des Moines, Iowa, specializing in workers' compensation coverage and other commercial insurance products.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

What’s next

Employers plans to write its first excess workers' compensation business effective July 1, 2026, and intends to scale the product cautiously as it learns.

The takeaway

Employers' response to the surge in California cumulative trauma claims, along with its strategic initiatives to diversify its product offerings and enhance profitability, highlight the ongoing challenges and opportunities facing the workers' compensation insurance industry.