Key Points
Azarias Capital Management initiated a 69,108-share position in Employers Holdings during the fourth quarter; the estimated transaction size was $2.98 million based on quarterly average pricing.
The quarter-end position value increased by approximately $2.98 million due to the initiation of a new holding.
This new holding places Employers Holdings outside the fund’s top five positions.
On January 22, Azarias Capital Management, L.P. disclosed a new position in Employers Holdings(NYSE:EIG), acquiring 69,108 shares in an estimated $2.98 million transaction based on quarterly average pricing.
What happened
According to its SEC filing dated January 22, Azarias Capital Management established a new position in Employers Holdings, acquiring 69,108 shares. The quarter-end position was valued at $2.98 million.
What else to know
This was a new position for the fund and accounted for 1.31% of 13F reportable AUM as of December 31.
Top five holdings after this filing:
- NYSEMKT: SPY: $72.60 million (31.8% of AUM)
- NYSEMKT: URG: $19.39 million (8.5% of AUM)
- NASDAQ: EU: $10.25 million (4.5% of AUM)
- NYSE: NXE: $9.93 million (4.3% of AUM)
- NYSE: MAN: $8.62 million (3.8% of AUM)
As of January 22, EIG shares were priced at $44.21, down 10% over the prior year and far underperforming the S&P 500’s roughly 14% gain in the same period.
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $904.80 million |
| Net income (TTM) | $62.50 million |
| Dividend yield | 2.85% |
| Price (as of January 22, 2026) | $44.21 |
Company snapshot
- Employers Holdings offers workers' compensation insurance primarily to small businesses in low to medium hazard industries across the United States.
- The company generates revenue through insurance premiums, leveraging a network of independent agents, brokers, and alternative distribution channels.
- It targets small business owners seeking specialized coverage and risk management solutions in the commercial property and casualty insurance market.
Employers Holdings is a specialty insurer focused on workers' compensation for small businesses, with a national footprint and a disciplined underwriting approach. The company differentiates itself through deep expertise in low to medium hazard industries and a multi-channel distribution strategy. Its scale and focus enable it to serve a broad client base while maintaining risk-adjusted profitability.
What this transaction means for investors
Employers Holdings just exited a volatile quarter marked by reserve strengthening and a sharp spike in its combined ratio, which climbed to 129.7% in the third quarter as loss trends worsened in California. The company reported an $8.3 million net loss, or $0.36 per share, even as net premiums earned rose 3% to $192.1 million and policies in force hit a record high. Management responded decisively, concluding an off-cycle reserve review, tightening underwriting, and approving a $125 million debt-funded recapitalization alongside an expanded $250 million share repurchase authorization. It also maintained its quarterly dividend at $0.32 per share.
At roughly $44 per share, the stock sits well below its adjusted book value of $51.31, even after absorbing conservative reserve actions. Against a portfolio dominated by broad equity exposure through SPY and selective uranium names, this position stands out as a contrarian insurance bet rather than a defensive filler.
Where to invest $1,000 right now
When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 937%* — a market-crushing outperformance compared to 194% for the S&P 500.
They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you joinStock Advisor.
*Stock Advisor returns as of January 23, 2026.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
