Employers : Third Quarter 2023 Investor Presentation

INVESTOR PRESENTATION

Third Quarter 2023

Forward-Looking Statements

In this presentation, 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, economic or market conditions, including the evolving nature of the COVID-19 pandemic, current levels of inflation, changes in interest rates, labor market expectations, catastrophic events or geo-political conditions, legislative or regulatory actions or court decisions, business growth, retention rates, loss costs, claim trends and the impact of key business initiatives, future technologies and planned investments. 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. The Company and its management caution investors that such forward-looking statements are not guarantees of future performance. Risks and uncertainties are inherent in the Company'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 the Company's public filings with the U.S. Securities and Exchange Commission (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.

Filings with the SEC

The Company's filings with the SEC and its quarterly investor presentations can be accessed through the "Investors" link on the Company's website, www.employers.com. The Company's filings with the SEC can also be accessed through the SEC's EDGAR Database at www.sec.gov (EDGAR CIK No. 0001379041).

© 2023 EMPLOYERS. All rights reserved.

EMPLOYERS® and America's small business insurance specialist® are registered trademarks of EIG Services, Inc. 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 operates throughout the United States, with the exception of four states that are served exclusively by their state funds. Insurance is offered through Employers Insurance Company of Nevada, Employers Compensation Insurance Company, Employers Preferred Insurance Company, Employers Assurance Company and Cerity Insurance Company, all rated A- (Excellent) by the A.M. Best Company. Not all companies do business in all jurisdictions. See www.employers.comand www.cerity.comfor coverage availability.

www.employers.com

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EMPLOYERS®

Business Overview

www.employers.com

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Who We Are (the Numbers)

EMPLOYERS® is a mono-line writer of workers' compensation (WC) insurance

focused on low-to-mediumhazard risk small businesses.

MARKETS AND DISTRIBUTION

$590 Million

Gross Written Premiums

as of 9/30/2023

Low-to-Medium Hazard Focus

Shown as a percentage of 9/30/23 in-force premium

94%	6%
Hazard Groups	Hazard Groups
A-E (lower risk)	F-G (higher risk)

Premium Contribution

Specialty

Agents,

Distribution

Partners

Traditional and DTC

Insurance33%

Agents

67%

$722 Million

In-force Premium

at September 30, 2023 (incl. est. audit premium)

126,120 in-force policies $5,725 average policy size

Nationwide Platform

as of 9/30/2023

www.employers.com

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Who We Are (the Words)

Over 100-year operating history

Strong underwriting focus with established presence in attractive markets

Record number of policies in-force, excellent operating ratios

Unique, long-standing strategic distribution relationships

Conservative risk profile and prudent capital management

Solid financial position and strong balance sheet

UNIQUE GROWTH DRIVERS SPECIFIC TO EMPLOYERS

Transforming how small businesses and insurance agents utilize digital capabilities to improve their customer experience

1. enhancing the agent experience and agent
   efficiency
   (ii) providing direct-to-

customer workers'

compensation insurance policies through our Cerity brand, which was developed to meet the needs of small businesses seeking an online experience

www.employers.com

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What We Write

Top Ten Employer Classifications	% of Premium
Restaurants & Other Eating Places	19%
Traveler Accommodation	7%
Automobile Dealers	4%
Automotive Repair and Maintenance	4%
Services to Buildings and Dwellings	4%
Offices of Physicians	3%
Real Estate Management	3%
Schools	3%
Other Store Retailers	3%
Wholesale Stores	2%

Classes of Business

Food & Beverage	Personal Services
Tech and Scientific services	Clothing retail
Legal and Financial services	Personal product retail
Hospitality	Medical professions
Landscaping services	Architecture and Engineering
Printing and Publishing	services
Office, Home and Garden
Retail
Therapeutic Services
Educational
Commercial janitorial
Plumbing and HVAC
Flooring Installation
Electricians
Painting and Wallpaper

EMPLOYERS® and Cerity® each plan to further expand into other

low-to-medium hazard group classes of business in the future

% of Premium as of December 31, 2022

www.employers.com

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Marketing And Distribution

We market and sell our workers' compensation insurance products through:

• Local, regional, specialty and national insurance agents and brokers;
• National, regional, and local trade groups and associations; and
• Direct-to-customerinteractions.

Traditional Insurance	Specialty Agents and	DTC
Agents and Brokers	Distribution Partners	Direct-to-customer
~67%	~32%	~1%
of in-force premium	of in-force premium	of in-force premium

We establish and maintain strong, long-term relationships with our vetted and appointed traditional insurance agencies that actively market our products and services. We offer ease of doing business, provide responsive service, and pay competitive commissions. Our sales representatives and underwriters work closely with these agencies to market and underwrite our business. This results in enhanced understanding of the businesses, the risks we underwrite, and the needs of prospective customers. We do not delegate underwriting authority to agents or brokers.

We had approximately 2,523 traditional insurance agencies that marketed and sold our insurance products at December 31, 2022.

We have developed and continue to add other important and emerging distribution channels for our products and services including payroll companies, and health care and property and casualty insurers, as well as digital agents and marketplaces.

A meaningful concentration of our business is being generated by our specialty agent Automatic Data Processing, Inc. (ADP). As part of its services, ADP sells our workers' compensation insurance product along with its payroll and accounting services through its insurance agency and field sales staff. ADP generated 15% of our ending 2022 in-force premiums.

Our digital distribution channel utilizes proprietary application programming interfaces (APIs) to submit, quote and bind applications for workers' compensation insurance. Digital agents generated 5% of our ending 2022 in- force premiums.

To address the changing buying behaviors of small and micro-businesses, we launched Cerity, which offers digital insurance solutions, including direct-to-customer workers' compensation coverage.

Cerity specializes in smaller risks in those classes of business where we believe that customers prefer an online experience and offers a digital and mobile-friendly experience that allows small businesses to easily acquire and maintain their policies.

as of 9/30/2023

www.employers.com

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2022 Workers' Compensation Market

	RANK	GROUP/COMPANY NAME	DIRECT PREMIUMS WRITTEN	MARKET SHARE %
	1	TRAVELERS GRP	$3,807,285,569	6.7
	2	HARTFORD FIRE & CAS GRP	$3,636,838,515	6.4
	3	AMTRUST FINANCIAL SERV GRP	$3,161,523,545	5.6
	4	ZURICH INS GRP	$2,749,958,192	4.8
	5	CHUBB LTD GRP	$2,441,329,450	4.3
	6	LIBERTY MUT GRP	$2,313,554,530	4.1
	7	BERKSHIRE HATHAWAY GRP	$2,082,410,484	3.7
	8	BCBS OF MI GRP	$1,749,368,291	3.1
	9	STATE INS FUND	$1,565,411,145	2.8	New York State Fund
	10	OLD REPUBLIC GRP	$1,430,734,111	2.5
	11	AMERICAN FINANCIAL GRP	$1,268,115,751	2.2
	12	WR BERKLEY CORP GRP	$1,201,494,940	2.1
	13	AMERICAN INTL GRP	$1,198,023,013	2.1
	14	STATE COMPENSATION INS FUND	$1,176,756,581	2.1	California		State Fund
	15	TEXAS MUT INS CO	$1,060,021,072	1.9	Texas State Fund
	16	ICW GRP ASSETS INC GRP	$978,619,126	1.7
	17	CNA INS GRP	$946,503,851	1.7
	18	FAIRFAX FIN GRP	$756,434,412	1.3
	19	ARCH INS GRP	$750,914,636	1.3
	20	EMPLOYERS HOLDINGS GRP	$705,259,913	1.24
	21	STARR GRP	$616,989,496	1.1
	22	MARKEL CORP GRP	$607,119,433	1.1
	23	SAIF CORP	$538,913,585	1.0
	24	ENCOVA MUT INS GRP	$528,336,075	0.9
	25	COPPERPOINT GRP	$519,615,648	0.9
		**INDUSTRY TOTAL**	$56,887,488,702	100.0

Employers market share increased 12 bps from 2021;

We now rank in the Top 20 in Workers' Compensation writers

www.employers.com

Source: 2022 NAIC P&C Report

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Valuation and Comparing Public Comps

Top Ten Publicly-held Workers' Compensation Writers

(EIG and AMSF are the only pure-play publicly traded workers' compensation writers)

Price-to-book Ratio

3.00

2.50								2.82
2.00								2.37
1.50		Peer Average: 1.70x		1.58	1.71	1.62
1.00	1.04	1.01	1.22	1.25
0.50
0.00
AIG	EIG	CNA	ORI	HIG	TRV	CB	AMSF WRB

100% Workers' Comp Focused on lowand midhazard accounts

100% Workers' Comp

Focused on highhazard accounts

Calculations of Price-to-Book use prices as of the close on 9/30/2023 and book value as of 6/30/2023 (except EIG as of 9/30/2023)	Source: FactSet

www.employers.com

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$ in millions

Market Conditions

			In-Force Policies and Premium
$750
										175,000
										$722
$700											150,000
$650											125,000
	$627									126,120
$600											100,000
$550	85,494	BEFORE				AFTER		75,000
		COVID-19				COVID-19
$500		PANDEMIC				PANDEMIC		50,000
12/31/17	12/31/18		12/31/19	12/31/20*	12/31/21*	12/31/22*	9/30/23*
				In-Force Premium			Policies In-Force
		* 2020 - 2023 in-force premiums include an estimate of audit premium

Q3 2023 Update

Reached a record-level of 126,120 policies in-force

# of policies

www.employers.com

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