AMERISAFE Announces 2025 First Quarter Results

April 29, 2025 --

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 per share 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 operating costs, 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) on equity 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

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