AMERISAFE Announces 2025 Second Quarter Results

About this update from Amerisafe, Inc.

Voluntary Premiums on Policies Written in the Quarter Increased 12.8% 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 second quarter ended June 30, 2025 . Three Months Ended Six Months Ended June 30 , June 30 , 2025 2024 % Change 2025 2024 % Change (in thousands, except per share data) (in thousands, except per share data) Gross premiums written $ 79,704 $ 76,428 4.3 % $ 163,488 $ 156,502 4.5 % Net premiums earned 69,381 68,633 1.1 % 138,266 137,079 0.9 % Net investment income 6,691 7,447 -10.2 % 13,343 14,813 -9.9 % Net realized gains (losses) on investments (pre-tax) 3,116 (117 ) NM 3,118 (339 ) NM Net unrealized gains (losses) on equity securities (pre-tax) 1,829 (58 ) NM (1,323 ) 4,718 NM Net income 13,955 10,993 26.9 % 22,904 27,918 -18.0 % Diluted earnings per share $ 0.73 $ 0.57 28.1 % $ 1.20 $ 1.46 -17.8 % Operating net income 10,048 11,131 -9.7 % 21,486 24,459 -12.2 % Operating earnings per share $ 0.53 $ 0.58 -8.6 % $ 1.12 $ 1.28 -12.5 % Book value per share $ 13.96 $ 15.78 -11.5 % $ 13.96 $ 15.78 -11.5 % Net combined ratio 91.7 % 90.5 % 90.5 % 88.8 % Return on average equity 21.2 % 14.6 % 17.5 % 18.8 % G. Janelle Frost , President and Chief Executive Officer, commented: “We are pleased to report another solid quarter, marked by our fifth straight quarter of growth in gross premiums written. Our voluntary premiums on policies written grew 12.8% through increased policy count and strong retention. We continue to differentiate AMERISAFE in a competitive market through our focus on serving high-hazard employers and their workers with exceptional service and risk management expertise. As we invest in our people and technology, we remain committed to maintaining strong underwriting profitability and delivering long-term value for our shareholders.” INSURANCE RESULTS Three Months Ended Six Months Ended June 30 , June 30 , 2025 2024 % Change 2025 2024 % Change (in thousands) (in thousands) Gross premiums written $ 79,704 $ 76,428 4.3 % $ 163,488 $ 156,502 4.5 % Net premiums earned 69,381 68,633 1.1 % 138,266 137,079 0.9 % Loss and loss adjustment expenses incurred 40,660 40,624 0.1 % 80,819 80,615 0.3 % Underwriting and certain other operating costs, commissions, salaries and benefits 21,746 20,429 6.4 % 42,345 39,127 8.2 % Policyholder dividends 1,239 1,049 18.1 % 1,873 2,121 -11.7 % Underwriting profit (pre-tax) $ 5,736 $ 6,531 -12.2 % $ 13,229 $ 15,216 -13.1 % Insurance Ratios: Current accident year loss ratio 71.0 % 71.0 % 71.0 % 71.0 % Prior accident year loss ratio -12.4 % -11.8 % -12.5 % -12.2 % Net loss ratio 58.6 % 59.2 % 58.5 % 58.8 % Net underwriting expense ratio 31.3 % 29.8 % 30.6 % 28.5 % Net dividend ratio 1.8 % 1.5 % 1.4 % 1.5 % Net combined ratio 91.7 % 90.5 % 90.5 % 88.8 % Voluntary premiums on policies written in the quarter were 12.8% higher than in the second quarter of 2024, driven by stable policy retention, strong premium retention, and robust new business production. Payroll audits and related premium adjustments contributed an additional $1.5 million to written premiums in the second quarter of 2025, compared to $7.3 million in the second quarter of 2024. The loss ratio for the second quarter was 58.6%, compared to 59.2% in the second 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 $8.6 million . The underwriting expense ratio in the quarter was 31.3%, compared to 29.8% in the prior-year quarter. The increase reflects the combination of insurance-based assessments, which added 100 basis points during the quarter, and sustained investment in the business, which continued to drive growth in both premium volume and in-force policy count. The effective tax rate for the quarter ended June 30, 2025 , was 20.1%, which is slightly higher than the 20.0% for the quarter ended June 30, 2024 . INVESTMENT RESULTS Three Months Ended Six Months Ended June 30 , June 30 , 2025 2024 % Change 2025 2024 % Change (in thousands) (in thousands) Net investment income $ 6,691 $ 7,447 -10.2 % $ 13,343 $ 14,813 -9.9 % Net realized gains (losses) on investments (pre-tax) 3,116 (117 ) NM 3,118 (339 ) NM Net unrealized gains (losses) on equity securities (pre-tax) 1,829 (58 ) NM (1,323 ) 4,718 NM Pre-tax investment yield 3.3 % 3.3 % 3.3 % 3.3 % Tax-equivalent yield (1) 3.9 % 3.8 % 3.9 % 3.8 % ________________________________ (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 June 30, 2025 , decreased 10.2% to $6.7 million , due to a decrease in investable assets year-over-year as a result of the special dividend in the fourth quarter of 2024. On a consecutive quarter basis, net investment income increased by 60 basis points. Net realized gains on investments were $3.1 million in the second quarter due to gains on equity securities. Net unrealized gains on equity securities totaled $1.8 million for the quarter, driven by strong equity market performance. As of June 30, 2025 , the carrying value of AMERISAFE’s investment portfolio, including cash and cash equivalents, was $807.4 million . CAPITAL MANAGEMENT During the second quarter of 2025, the Company repurchased 62,757 shares at an average cost (including commissions and excise tax) of $44.55 per share, a total of $2.8 million . Since the inception of our initial share repurchase program in February 2010 , we have repurchased 1,745,608 shares at an average cost of $25.69 , for a total of $44.8 million . The remaining outstanding share repurchase authorization as of June 30, 2025 , was $2.5 million . On July 23, 2025 , the Board reauthorized the share repurchase program that replaces the Company's prior program, authorizing the repurchase of shares of the Company's common stock in an aggregate amount of up to $25.0 million . The Company also paid a regular quarterly cash dividend of $0.39 per share on June 20, 2025 , which represented a 5.4% increase in the quarterly dividend compared with 2024. On July 22, 2025 , the Board declared a quarterly cash dividend of $0.39 per share, payable on September 26, 2025 , to shareholders of record as of September 12, 2025 . Book value per share on June 30, 2025 , was $13.96 , an increase of 3.3% from $13.51 on December 31, 2024 . SUPPLEMENTAL INFORMATION Three Months Ended Six Months Ended June 30 , June 30 , 2025 2024 2025 2024 (in thousands, except share and per share data) Net income $ 13,955 $ 10,993 22,904 $ 27,918 Less: Net realized gains (losses) on investments 3,116 (117 ) 3,118 (339 ) Net unrealized gains (losses) on equity securities (pre-tax) 1,829 (58 ) (1,323 ) 4,718 Tax effect (1) (1,038 ) 37 (377 ) (920 ) Operating net income (2) $ 10,048 $ 11,131 21,486 $ 24,459 Average shareholders’ equity (3) $ 263,192 $ 301,043 $ 261,456 $ 296,722 Less: Average accumulated other comprehensive loss (7,415 ) (9,150 ) (8,218 ) (8,377 ) Average adjusted shareholders’ equity (2) $ 270,607 $ 310,193 $ 269,674 $ 305,099 Diluted weighted average common shares 19,119,600 19,146,294 19,120,530 19,171,206 Return on average equity (4) 21.2 % 14.6 % 17.5 % 18.8 % Operating return on average adjusted equity (2) 14.9 % 14.4 % 15.9 % 16.0 % Diluted earnings per share $ 0.73 $ 0.57 $ 1.20 $ 1.46 Operating earnings per share (2) $ 0.53 $ 0.58 $ 1.12 $ 1.28 ________________________________ (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 July 25, 2025 , at 10:30 a.m. Eastern Time to discuss the results for the quarter. To participate in the conference call, dial 786-789-4797 (Conference Code 2260581) 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. Share repurchases may be effected from time to time pursuant to trading plans meeting the requirements of Rule 10b5-1 under the Exchange Act. The share repurchase program does not obligate the Company to repurchase any shares of the Company’s common stock and may be modified, increased, suspended or terminated at the discretion of the Board. The Board’s determination will depend on a variety of factors, including but not limited to, market conditions and applicable regulatory considerations. It is anticipated that any future repurchases will be funded from available capital. AMERISAFE, INC. AND SUBSIDIARIES Consolidated Statements of Income (in thousands, except per share amounts) Three Months Ended Six Months Ended June 30 , June 30 , 2025 2024 2025 2024 (unaudited) (unaudited) Revenues: Gross premiums written $ 79,704 $ 76,428 $ 163,488 $ 156,502 Ceded premiums written (4,185 ) (4,027 ) (8,364 ) (7,953 ) Net premiums written $ 75,519 $ 72,401 $ 155,124 $ 148,549 Net premiums earned $ 69,381 $ 68,633 $ 138,266 $ 137,079 Net investment income 6,691 7,447 13,343 14,813 Net realized gains (losses) on investments 3,116 (117 ) 3,118 (339 ) Net unrealized gains (losses) on equity securities 1,829 (58 ) (1,323 ) 4,718 Fee and other income 71 (75 ) 281 48 Total revenues 81,088 75,830 153,685 156,319 Expenses: Loss and loss adjustment expenses incurred 40,660 40,624 80,819 80,615 Underwriting and other operating costs 21,746 20,429 42,345 39,127 Policyholder dividends 1,239 1,049 1,873 2,121 Provision for investment related credit loss benefit (12 ) (16 ) (28 ) (33 ) Total expenses 63,633 62,086 125,009 121,830 Income before taxes 17,455 13,744 28,676 34,489 Income tax expense 3,500 2,751 5,772 6,571 Net income $ 13,955 $ 10,993 $ 22,904 $ 27,918 Basic EPS: Net income $ 13,955 $ 10,993 $ 22,904 $ 27,918 Basic weighted average common shares 19,038,360 19,083,232 19,037,339 19,102,700 Basic earnings per share $ 0.73 $ 0.58 $ 1.20 $ 1.46 Diluted EPS: Net income $ 13,955 $ 10,993 $ 22,904 $ 27,918 Diluted weighted average common shares: Weighted average common shares 19,038,360 19,083,232 19,037,339 19,102,700 Restricted stock and RSUs 81,240 63,062 83,191 68,506 Diluted weighted average common shares 19,119,600 19,146,294 19,120,530 19,171,206 Diluted earnings per share $ 0.73 $ 0.57 $ 1.20 $ 1.46 AMERISAFE, INC. AND SUBSIDIARIES Consolidated Balance Sheets (in thousands) June 30 , December 31 , 2025 2024 (unaudited) Assets Investments $ 758,888 $ 788,778 Cash and cash equivalents 48,465 44,045 Amounts recoverable from reinsurers 115,771 117,019 Premiums receivable, net 166,344 142,659 Deferred income taxes 20,073 19,448 Deferred policy acquisition costs 21,149 19,151 Other assets 24,424 26,691 $ 1,155,114 $ 1,157,791 Liabilities and Shareholders’ Equity Liabilities: Reserves for loss and loss adjustment expenses $ 624,095 $ 651,309 Unearned premiums 138,784 121,926 Insurance-related assessments 17,386 14,852 Other liabilities 109,279 112,363 Shareholders’ equity 265,570 257,341 Total liabilities and shareholders’ equity $ 1,155,114 $ 1,157,791 View source version on businesswire.com : https://www.businesswire.com/news/home/20250724569496/en/ Andy Omiridis , EVP & CFO AMERISAFE 337.463.9052 Source: AMERISAFE, Inc.

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