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AMERISAFE Announces 2025 First Quarter Results
DERIDDER, La.--(BUSINESS WIRE)-- AMERISAFE, Inc. (Nasdaq: AMSF), a specialty provider of workers’ compensation insurance focused on high-hazard industries,
About this update from Amerisafe, Inc.
DERIDDER, La. --(BUSINESS WIRE)-- 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, 2025 . Three Months Ended March 31 , 2025 2024 % Change (in thousands, except pershare data) Net premiums earned $ 68,885 $ 68,446 0.6 % Net investment income 6,652 7,366 -9.7 % Net realized gains (losses) on investments (pre-tax) 2 (222 ) NM Net unrealized gains (losses) on equity securities (pre-tax) (3,152 ) 4,776 NM Net income 8,949 16,925 -47.1 % Diluted earnings per share $ 0.47 $ 0.88 -46.6 % Operating net income 11,438 13,327 -14.2 % Operating earnings per share $ 0.60 $ 0.69 -13.0 % Book value per share $ 13.69 $ 15.74 -13.0 % Net combined ratio 89.1 % 87.3 % Return on average equity 13.8 % 22.8 % G. Janelle Frost , President and Chief Executive Officer, commented: “AMERISAFE’s continued top-line growth was driven by consistent new business gains and strong premium retention. Looking ahead, we see continued opportunity within our targeted high-hazard markets to generate profitable growth and deliver industry leading returns. Our ability to protect small to mid-sized businesses and support injured workers — backed by our committed employees and a strong balance sheet — remains central to our long-term strategy.” INSURANCE RESULTS Three Months Ended March 31 , 2025 2024 % Change (in thousands) Gross premiums written $ 83,784 $ 80,074 4.6 % Net premiums earned 68,885 68,446 0.6 % Loss and loss adjustment expenses incurred 40,159 39,991 0.4 % Underwriting and certain other operatingcosts, commissions, salaries and benefits 20,599 18,698 10.2 % Policyholder dividends 634 1,072 -40.9 % Underwriting profit (pre-tax) $ 7,493 $ 8,685 -13.7 % Insurance Ratios: Current accident year loss ratio 71.0 % 71.0 % Prior accident year loss ratio -12.7 % -12.6 % Net loss ratio 58.3 % 58.4 % Net underwriting expense ratio 29.9 % 27.3 % Net dividend ratio 0.9 % 1.6 % Net combined ratio 89.1 % 87.3 % Voluntary premiums on policies written in the quarter were 7.1% higher than in the first quarter of 2024, driven by solid premium retention and continued momentum in new business production. Payroll audits and related premium adjustments contributed $5 million to written premiums in the first quarter of 2025, compared to $6.4 million in the first quarter of 2024. While payroll audits and other premium adjustments remain a meaningful component of written premiums, the year-over-year decline reflects a moderation in wage inflation. The loss ratio for the first quarter was 58.3%, compared to 58.4% in the first quarter of 2024. During the quarter, the Company experienced favorable net loss reserve development for prior accident years, which reduced loss and loss adjustment expenses by $8.7 million . For the quarter ended March 31, 2025 , the underwriting expense ratio was 29.9%, compared to 27.3% in the prior-year quarter. The increase reflects continued investment in the business, as demonstrated by growth in both premium volume and policy count. The effective tax rate for the quarter ended March 31, 2025 , was 20.2% compared with 18.4% for March 31, 2024 . The rate was slightly higher than last year due to a decrease in the proportion of tax-exempt interest income relative to taxable interest income and underwriting profit. INVESTMENT RESULTS Three Months Ended March 31 , 2025 2024 % Change (in thousands) Net investment income $ 6,652 $ 7,366 -9.7 % Net realized gains (losses) on investments (pre-tax) 2 (222 ) NM Net unrealized gains (losses) on equity securities (pre-tax) (3,152 ) 4,776 NM Pre-tax investment yield 3.2 % 3.3 % Tax-equivalent yield (1) 3.8 % 3.7 % ________________________________ (1) The tax equivalent yield is calculated using the effective interest rate and the appropriate marginal tax rate. Net investment income for the quarter ended March 31, 2025 , decreased 9.7% to $6.7 million , due to a decrease in investable assets following the payment of the special dividend in the fourth quarter of 2024. Net unrealized losses on equity securities were $3.2 million in the first quarter of 2025, driven by market volatility and lower valuations across the equity portfolio. These net unrealized losses contributed to the lower quarterly return on average equity. As of March 31, 2025 , the carrying value of the Company’s investment portfolio, including cash and cash equivalents, was $825.8 million . CAPITAL MANAGEMENT During the first quarter of 2025, the Company paid a regular quarterly cash dividend of $0.39 per share on March 21, 2025 , which represented a 5.4% increase in the quarterly dividend compared with 2024. On April 29, 2025 , the Company’s board of directors declared a quarterly cash dividend of $0.39 per share, payable on June 20, 2025 , to shareholders of record as of June 13, 2025 . Book value per share at March 31, 2025 , was $13.69 , an increase of 1.3% from $13.51 at December 31, 2024 . SUPPLEMENTAL INFORMATION Three Months Ended March 31 , 2025 2024 Net income $ 8,949 $ 16,925 Less: Net realized gains (losses) on investments 2 (222 ) Net unrealized gains (losses) onequity securities (pre-tax) (3,152 ) 4,776 Tax effect (1) 661 (956 ) Operating net income (2) $ 11,438 $ 13,327 Average shareholders’ equity (3) $ 259,077 $ 296,773 Less: Average accumulated other comprehensive loss (8,072 ) (7,967 ) Average adjusted shareholders’ equity (2) $ 267,149 $ 304,740 Diluted weighted average common shares 19,154,426 19,211,282 Return on average equity (4) 13.8 % 22.8 % Operating return on average adjusted equity (2) 17.1 % 17.5 % Diluted earnings per share $ 0.47 $ 0.88 Operating earnings per share (2) $ 0.60 $ 0.69 ________________________________ (1) The tax effect of net realized losses on investments and net unrealized gains (losses) on equity securities is calculated with an effective tax rate of 21%. (2) Operating net income, average adjusted shareholders’ equity, operating return on average adjusted equity and operating earnings per share are non-GAAP financial measures. Management believes that investors’ understanding of core operating performance is enhanced by AMERISAFE’s disclosure of these financial measures. (3) Average shareholders’ equity is calculated by taking the average of the beginning and ending shareholders’ equity for the applicable period. (4) Return on average equity is calculated by dividing the annualized net income by the average shareholders’ equity. NON-GAAP FINANCIAL MEASURES This release contains non-GAAP financial measures within the meaning of Regulation G promulgated by the U.S. Securities and Exchange Commission (the SEC ) and includes a reconciliation of non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with GAAP in the Supplemental Information in this release. Management believes that investors’ understanding of core operating performance is enhanced by AMERISAFE’s disclosure of these standard industry financial measures, which include operating net income, average adjusted shareholders’ equity, operating return on average adjusted equity, and operating earnings per share. CONFERENCE CALL INFORMATION AMERISAFE has scheduled a conference call for April 30, 2025 , at 10:30 a.m. Eastern Time to discuss the results for the quarter. To participate in the conference call, dial 786-789-4783 (Conference Code 9449343) at least ten minutes before the call begins. Investors, analysts, and the general public will also have the opportunity to listen to the conference call over the Internet by visiting the “Investor Relations Home” page of the “Investors” section of the Company’s website ( http://www.amerisafe.com ). To listen to the live call on the web, please visit the website at least fifteen minutes before the call begins to register, download, and install any necessary audio software. For those who cannot listen to the live webcast, an archive will be available shortly after the call at the same website location. ABOUT AMERISAFE AMERISAFE, Inc. is a specialty provider of workers’ compensation insurance focused on small to mid-sized employers engaged in hazardous industries, principally construction, trucking, logging and lumber, agriculture, and manufacturing. AMERISAFE actively markets workers’ compensation insurance in 27 states. FORWARD LOOKING STATEMENTS Statements made in this press release that are not historical facts, including statements accompanied by words such as “will,” “believe,” “anticipate,” “expect,” “estimate,” or similar words, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding AMERISAFE’s plans, expectations and performance. These statements are based on management’s estimates, assumptions and projections as of the date of this release and are not guarantees of future performance, and include statements regarding management’s current views and expectations of the workers’ compensation insurance market, AMERISAFE’s growth opportunities, underwriting margins and actions by competitors. Investors are cautioned that many of the assumptions upon which these forward-looking statements are based might change after the date the forward-looking statements are made. Actual results may differ materially from the results expressed or implied in the forward-looking statements if the underlying assumptions prove to be incorrect or changes otherwise occur, or as the results of the materialization of risks, uncertainties and other factors impacting the business and operations of the Company, our policyholders or the market value of our investment portfolio. Factors that may affect our results are set forth in the Company’s filings with the U.S. Securities and Exchange Commission , including AMERISAFE’s Annual Report on Form 10-K. AMERISAFE cautions you not to place undue reliance on the forward-looking statements contained in this release. AMERISAFE does not undertake any obligation to update or revise any forward-looking statements, which speak only as of the date made, notwithstanding any changes in its assumptions, changes in business plans, actual experience or other changes that arise after the date of this release. - Tables to Follow - AMERISAFE, INC. AND SUBSIDIARIES Consolidated Statements of Income (in thousands, except per share amounts) Three Months Ended March 31 , 2025 2024 (unaudited) Revenues: Gross premiums written $ 83,784 $ 80,074 Ceded premiums written (4,179 ) (3,926 ) Net premiums written $ 79,605 $ 76,148 Net premiums earned $ 68,885 $ 68,446 Net investment income 6,652 7,366 Net realized gains (losses) on investments 2 (222 ) Net unrealized gains (losses) on equity securities (3,152 ) 4,776 Fee and other income 210 123 Total revenues 72,597 80,489 Expenses: Loss and loss adjustment expenses incurred 40,159 39,991 Underwriting and other operating costs 20,599 18,698 Policyholder dividends 634 1,072 Provision for investment related credit loss benefit (16 ) (17 ) Total expenses 61,376 59,744 Income before taxes 11,221 20,745 Income tax expense 2,272 3,820 Net income $ 8,949 $ 16,925 Basic EPS: Net income $ 8,949 $ 16,925 Basic weighted average common shares 19,036,309 19,122,168 Basic earnings per share $ 0.47 $ 0.89 Diluted EPS: Net income $ 8,949 $ 16,925 Diluted weighted average common shares: Weighted average common shares 19,036,309 19,122,168 Restricted stock and RSUs 118,117 89,114 Diluted weighted average common shares 19,154,426 19,211,282 Diluted earnings per share $ 0.47 $ 0.88 AMERISAFE, INC. AND SUBSIDIARIES Consolidated Balance Sheets (in thousands) March 31 , December 31 , 2025 2024 (unaudited) Assets Investments $ 781,012 $ 788,778 Cash and cash equivalents 44,753 44,045 Amounts recoverable from reinsurers 114,278 117,019 Premiums receivable, net 156,746 142,659 Deferred income taxes 19,112 19,448 Deferred policy acquisition costs 20,422 19,151 Other assets 20,394 26,691 $ 1,156,717 $ 1,157,791 Liabilities and Shareholders’ Equity Liabilities: Reserves for loss and loss adjustment expenses $ 639,965 $ 651,309 Unearned premiums 132,646 121,926 Insurance-related assessments 15,888 14,852 Other liabilities 107,405 112,363 Shareholders’ equity 260,813 257,341 Total liabilities and shareholders’ equity $ 1,156,717 $ 1,157,791 View source version on businesswire.com : https://www.businesswire.com/news/home/20250429904627/en/ Andy Omiridis , EVP & CFO AMERISAFE 337.463.9052 Source: AMERISAFE, Inc.