Employers Holdings, Inc. - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - PRESENTATION MATERIAL

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8-K - FORM 8-K - Employers Holdings, Inc.	form8-k.htm

Exhibit 99.1

Employers Holdings, Inc.

Investor Presentation

March, 2010

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.

Overview

Business

· Specialty provider of workers’ compensation
insurance

· Coverage required by statute

Ø Medical, temporary/permanent indemnity, death

Geographic

· 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

$45 billion
per year
industry
(2008, A.M. Best)

Highly
focused
business
model

Operate in
74% of total
market
(2008, A.M. Best)

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

2000

2002

2006

2007

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

$ million

# policies

Increasing Market Penetration

Purchased
Fremont Book
of Business

Purchased
AmCOMP
Incorporated

Policy Count ‘02-’09

CAGR = 9.3%

NPW ‘02-’09 CAGR = 10.2%

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

Top 10 Classes

NCCI
Hazard
Group

%
In Force
Premium

Focused Guidelines and Selection within Industry-defined Classes

Delivering Superior Loss Ratios

Consistently Lower Loss and LAE Ratios than the Industry

A.M. Best, “Aggregates and Averages”

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 Businesses)

Independent Agents and Brokers

Increasing Points of Access

Partnerships

… a distribution
advantage by
expanding market
reach and providing
local knowledge

… in high persistency

… about 19% of in
force premiums in 2009

Strong Retention Rates

Strategic Partnerships Result in Consistently Higher Retention Rates

Superior Claims Management

Key Highlights

Income Statement ($ million except $ per share)	Q 4 2009	Q 4 2008	2009	2008
Net Written Premium	72.2	89.0	368.3	308.3
Net Earned Premium	90.0	106.1	404.2	328.9
Net Investment Income	21.8	22.1	90.5	78.1
Net Income	11.3	15.9	83.0	101.8
Net Income Before LPT	6.6	11.3	65.0	83.4
Earnings Before LPT per Share	.15	.23	1.41	1.69
Balance Sheet ($ million)			12/31/2009	12/31/2008
Total Investments			2,029.6	2,042.9
Cash and Cash Equivalents			191.6	202.9
Total Assets			3,676.7	3,825.1
Reserves for Loss and LAE			2,425.7	2,506.5
Shareholders’ Equity			498.4	444.7
Equity Including LPT Deferred Gain			887.0	851.3
Underwriting Ratios	Q 4 2009	Q 4 2008	2009	2008
Loss Ratio Before LPT	58.2%	57.2%	57.5%	47.1
Combined Ratio Before LPT	111.7%	103.4%	102.5%	91.5
Financial Ratios			2009	2008
Book Value per Share			$20.67	$17.43
Return on Average Adjusted Equity			7.5%	10.1%

Strong Capital Position

($ million)

.6 to 1
NPW/Statutory
Surplus Ratio

$355 million
extraordinary
dividends to
parent in 2008

Strong Growth in Statutory Surplus Provides a Solid Basis for Underwriting

Loss Portfolio Transfer (LPT)

Claims 6/30/1995 and prior - Approximately 3,500 claims
open as of 12/31/09 with 5% closing each year

Remaining liabilities at 12/31/09: $888.4 million

NOTE: 50,000,002 pro forma shares prior to February 5, 2007 (IPO date)

(millions)

Continuing Profits

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)

Consistently Profitable Underwriting

Underwriting model targets a
100% combined ratio and a 12-
13% return on a premium dollar

NOTE: LPT percentages include reserve adjustments

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%

Expense ratio includes 1.4 points of non-
recurring integration costs . The policyholder
dividend ratio was 1.7 points versus 0.4 last
year. LPT contingent profit commission of
$15 million lowered commission expense
ratio by 3.7 points.

History of Reserve Strength

Reserve Review

Reserve Development

Net reserves for workers’ comp industry estimated to be deficient by $6 Billion at 12/31/08 (1)

(1) NCCI, “2009 State of the Line”

Net Calendar Year Reserve Releases for
Prior Accident Years ($ million)

Prudent Capital Management

Share
Repurchases

Investing in the Future

Returning Capital to Shareholders

Holding Company Flexibility at 12/31/09

• Debt ratio - 15%

– Wells Fargo Secured Credit Facility - $100 million remaining

– $32 million of acquired surplus notes

• $197 million in cash and securities (two thirds tied to Wells Fargo Credit Facility)

• Ordinary dividend capacity from operating companies in 2010 - $114.5 million

• 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

– Generally flat Q 4 expenses excluding integration/restructuring

– Extensive budget review with staff reductions in 2009 and 2010 (acquisition savings, consolidation and recognized
efficiencies)

Dividends

• 97% fixed maturities with an average
weighted AA+ rating

• Average book yield of 4.5%

• Tax equivalent book yield of 5.6%

• Effective duration of 5.02

• Managed by Conning Asset Management

• Minimal impacts during challenging
markets

– 2009 OTTI of $1.9 million

– 2008 OTTI of $12.7 million

High Quality Investment Portfolio

Portfolio at 12/31/09

$2.0 billion fair market value

High Quality Reinsurance

Program Structure, Effective 7/1/09

Reinsurance Management

Reinsurers by Market

Summary of Financial Strength

Strong

Underwriting

Leverage

Conservative
Reserving

High Quality
Investment
Portfolio

Catastrophe
Reinsurance
Program

.6 to 1 NPW to
Surplus at
12/31/09

$2 billion - 97%
invested in fixed
maturity with average
weighted rating of AA+

Track record of
reserve strength:
since IPO, $183
million favorable
prior AY reserve
development as of
12/31/09

Coverage up to
$200 M loss

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

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

Stock Ownership Limitations

As a reminder to investors, Employers Holdings, Inc. (“EIG”) owns several insurance companies, domiciled in several
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, EIG 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 EIG, which is 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
EIG’s 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 EIG’s 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.

Appendix

Organization

Employers Holdings, Inc.

Employers

Insurance
Company

of Nevada

Employers

Compensation

Insurance

Company

Employers

Preferred

Insurance
Company

Employers

Occupational

Health, Inc.

Employers

Assurance

Company

Elite

Insurance

Services

EIG Services,
Inc.

Pinnacle

Benefits, Inc.

AmSERV,

Inc.

Employers Group, Inc.

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

Regional, Pricing Trends 09/30/09 thru 04/01/10

MIDWEST

WESTERN

PACIFIC

Corporate Headquarters

Regional Headquarters

SOUTHEAST

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%

-6.8%

-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%

+5.8%

-32.6%

-21.2%

-10.0%

-2.8%

+0.4%

-4.2%

-7.6%

-7.5%

+6.2%

-28.1%

-5.8%

+8.7%

-24.1%

-0.1%

Employers Holdings, Inc. - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - PRESENTATION MATERIAL - March 22, 2010

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