Business
AMERISAFE Announces 2020 First Quarter Results
Reports Net Combined Ratio of 83.5% DERIDDER, La., April 29, 2020 (GLOBE NEWSWIRE) -- AMERISAFE, Inc. (Nasdaq: AMSF), a specialty provider of workers’
About this update from Amerisafe, Inc.
[{"type":"text","content":"Reports Net Combined Ratio of 83.5%\nDERIDDER, La., April 29, 2020 (GLOBE NEWSWIRE) -- AMERISAFE, Inc. (Nasdaq: AMSF), a specialty provider of workers’ compensation insurance focused on high hazard industries, today announced results for the first quarter ended March 31, 2020.\n Three Months Ended March 31, 2020 2019 % Change (in thousands, except per share data) Net premiums earned$78,990 $84,948 -7.0%Net investment income 7,749 8,015 -3.3%Net realized gains on investments, pretax 992 59 NM Net unrealized gains (losses) on equity securities (pre-tax) (8,763) 2,158 NM Net income 10,800 19,400 -44.3%Diluted earnings per share$0.56 $1.01 -44.6%Operating net income 16,939 17,649 -4.0%Operating earnings per share$0.88 $0.91 -3.3%Book value per share$22.64 $22.33 1.4%Net combined ratio 83.5% 84.0% Return on average equity 10.0% 18.5% G. Janelle Frost, President and Chief Executive Officer, noted, “AMERISAFE, like so many others, is protecting the safety and health of its employees and customers by following guidance of state and federal authorities. While doing so, we produced a net combined ratio of 83.5% in the first quarter, while providing uninterrupted service to our policyholders, agents and injured workers. This was a good start to a year in which businesses around the world are facing unprecedented times. I believe our foundation is firm with strong liquidity, no debt, disciplined operations and a dedicated workforce.” INSURANCE RESULTS Three Months Ended March 31, 2020 2019 % Change (in thousands) Gross premiums written$87,071 $93,107 -6.5%Net premiums earned 78,990 84,948 -7.0%Loss and loss adjustment expenses incurred 43,647 49,614 -12.0%Underwriting and certain other operating costs, commissions, salaries and benefits 21,284 20,667 3.0%Policyholder dividends 1,023 1,100 -7.0%Underwriting profit (pre-tax)$13,062 $13,567 -3.7% Insurance Ratios: Current accident year loss ratio 72.5% 72.5% Prior accident year loss ratio -17.2% -14.1% Net loss ratio 55.3% 58.4% Net underwriting expense ratio 26.9% 24.3% Net dividend ratio 1.3% 1.3% Net combined ratio 83.5% 84.0% Gross premiums written in the first quarter of 2020 decreased by $6.0 million, or 6.5%, compared with the first quarter of 2019, driven by voluntary premiums which were 5.8% lower than the first quarter of 2019.Payroll audits and related premium adjustments increased ...