Amerisafe Inc.: Q3 FY2025 earnings call

What management said about Q3 FY2025, from the documents filed with the SEC on 29 October 2025: press release. Guidance figures: 1 new, 1 kept. The quarter’s numbers.

Key takeaways

Sixth straight quarter of growth: Management said the company reported its sixth consecutive quarter of growth in both gross premiums written and net premiums earned. Source
Voluntary premiums up 10.6%: Voluntary premiums on policies written in the quarter rose 10.6%, which the company attributed to policy and premium retention and new business production. Source
Combined ratio at 90.6%: Net combined ratio was 90.6% for the quarter against 90.9% a year earlier; nine-month net combined ratio was 90.5% against 89.6%. Source
Prior-year reserve development reduced losses: Net loss reserve development for prior accident years reduced loss and loss adjustment expenses by $8.9 million in the quarter. The prior accident year loss ratio was -12.5%. Source
Investment income down 12.3%: Net investment income fell to $6.6 million, attributed to lower investable assets after the special dividend paid in the fourth quarter of 2024. Source
Book value per share $14.47: Book value per share was $14.47 at September 30, 2025, up 7.1% from December 31, 2024, and down 12.3% from $16.50 a year earlier. Source
Special and regular dividends declared: On October 28, 2025, the board declared a $1.00 special cash dividend and a $0.39 regular cash dividend, payable December 12, 2025. Source

“We remain focused on strengthening our team, advancing our technology, and maintaining underwriting discipline - all in support of sustained performance and long-term shareholder value.”
G. Janelle Frost, President and Chief Executive Officer

Guidance

Area	Period	Figure	Against last quarter
Dividends Source	Payable December 12, 2025	$1.00 per share special cash dividend	New
Dividends Source	Payable December 12, 2025	$0.39 per share regular quarterly cash dividend	Kept

What changed from last quarter

New: Special cash dividend of $1.00 per share declared; the prior-quarter release declared only the regular $0.39 quarterly dividend. Source

Results and growth drivers

Sixth straight quarter of growth: Management said the company reported its sixth consecutive quarter of growth in both gross premiums written and net premiums earned. Source
Net premiums earned rose 6.2%: Net premiums earned were $71,196 thousand, up 6.2% from $67,050 thousand; nine-month net premiums earned rose 2.6%. Source
Quarterly net income fell 3.5%: Net income was $13.8 million for the quarter, down 3.5%, and $36.7 million for the nine months, down 13.1% from the prior-year period. Source
Diluted EPS lower in both periods: Diluted EPS was $0.72 for the quarter against $0.75, and $1.92 for nine months against $2.21. Operating EPS was $0.55 against $0.58, a non-GAAP measure. Source
Underwriting profit rose in quarter: Pre-tax underwriting profit was $6,693 thousand, up 9.1%; nine-month underwriting profit was $19,922 thousand, down 6.7%. Source
Return on average equity 20.5%: Return on average equity was 20.5% for the quarter against 18.6% a year earlier, and 18.4% for nine months against 18.6%. Source

Premium volume and business profile

Voluntary premiums up 10.6%: Voluntary premiums on policies written in the quarter rose 10.6%, which the company attributed to policy and premium retention and new business production. Source
Gross premiums written up 7.2%: Gross premiums written were $80,321 thousand, up 7.2%; nine-month gross premiums written were $243,809 thousand, up 5.3%. Source
Payroll audit premium adjustments lower: Payroll audits and related premium adjustments added $2.5 million to written premiums in the quarter, down from $4.0 million a year earlier. Source
Net premiums written increased: Net premiums written were $75,987 thousand, up from $70,989 thousand; ceded premiums written were $4,334 thousand against $3,951 thousand. Source
Markets workers' compensation in 27 states: The company focuses on small to mid-sized employers in hazardous industries, principally construction, trucking, logging and lumber, agriculture and manufacturing. Source

“Our continued success in the market reflects the strength of the AMERISAFE value proposition: delivering exceptional service to employers and their workers in high-hazard industries, from the initial application through the final claims payment.”
G. Janelle Frost, President and Chief Executive Officer

Loss, expense and tax ratios

Combined ratio at 90.6%: Net combined ratio was 90.6% for the quarter against 90.9% a year earlier; nine-month net combined ratio was 90.5% against 89.6%. Source
Prior-year reserve development reduced losses: Net loss reserve development for prior accident years reduced loss and loss adjustment expenses by $8.9 million in the quarter. The prior accident year loss ratio was -12.5%. Source
Net loss ratio edged up: Net loss ratio was 58.5% against 58.4%; the current accident year loss ratio was 71.0%, the same as the prior-year quarter. Source
Expense ratio fell with scale: Net underwriting expense ratio was 31.1% against 31.7%. The company tied the lower ratio to scale from premium and policy count growth. Source
Policyholder dividends rose 38.8%: Policyholder dividends were $712 thousand, up 38.8%; the net dividend ratio was 1.0% against 0.8%. Source
Effective tax rate rose to 21.0%: The effective tax rate was 21.0% against 19.5%, which the company attributed to higher state income taxes. Source

Investment income and portfolio

Investment income down 12.3%: Net investment income fell to $6.6 million, attributed to lower investable assets after the special dividend paid in the fourth quarter of 2024. Source
Equity securities gains $4.1 million: Net unrealized gains on equity securities were $4.1 million for the quarter, which management linked to equity market performance; nine-month gains were $2.8 million. Source
Pre-tax investment yield eased: Pre-tax investment yield was 3.2% against 3.4% a year earlier; tax-equivalent yield was 3.9% against 3.8%. Source
Portfolio carrying value $817.0 million: The carrying value of the investment portfolio, including cash and cash equivalents, was $817.0 million at September 30, 2025. Source
No realized gains in quarter: Net realized gains on investments were nil for the quarter against $158 thousand a year earlier; nine-month net realized gains were $3,118 thousand. Source

Capital, book value and shareholder returns

Book value per share $14.47: Book value per share was $14.47 at September 30, 2025, up 7.1% from December 31, 2024, and down 12.3% from $16.50 a year earlier. Source
Special and regular dividends declared: On October 28, 2025, the board declared a $1.00 special cash dividend and a $0.39 regular cash dividend, payable December 12, 2025. Source
Repurchases of $1.3 million: The company repurchased 30,860 shares at an average cost of $43.72 in the quarter. The remaining repurchase authorization was $24.9 million at September 30. Source
Operating return on adjusted equity 15.3%: Operating return on average adjusted equity was 15.3% for the quarter against 14.2%; nine-month figure was 15.7% against 15.4%. This is a non-GAAP measure. Source

Balance sheet and reserves

Loss reserves fell since year-end: Reserves for loss and loss adjustment expenses were $617,860 thousand at September 30, against $651,309 thousand at December 31, 2024 and $624,095 thousand at June 30, 2025. Source
Premium balances rose since year-end: Premiums receivable, net were $167,882 thousand against $142,659 thousand at December 31, 2024. Unearned premiums were $143,575 thousand against $121,926 thousand. Source
Shareholders' equity increased: Shareholders’ equity was $274,773 thousand at September 30, 2025, against $257,341 thousand at December 31, 2024. Total assets were $1,164,944 thousand. Source
Cash and equivalents rose: Cash and cash equivalents were $54,747 thousand at September 30, against $44,045 thousand at December 31, 2024. Source

Coming up, as management said on 29 October 2025

Dividend payment date: The special and regular dividends are payable December 12, 2025, to shareholders of record as of December 5, 2025. Source

Figures management reported

Figure	Reported
Combined ratio Source	90.6%
Net premiums written Source	$75,987 thousand
Prior-year reserve development Source	$8.9 million
Investment income Source	$6.6 million
Book value per share Source	$14.47

Risks management discussed

Financial: Investment income is lower because investable assets fell after the special dividend paid in the fourth quarter of 2024. Source
External: Equity securities gains depend on equity market performance; the quarter's $4.1 million gain was attributed to that performance. Source
Regulatory: The effective tax rate rose because of higher state income taxes. Source
Demand: Payroll audit and related premium adjustments added less to written premiums than in the prior-year quarter. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

AMERISAFE ANNOUNCES 2025 THIRD QUARTER RESULTS

Voluntary Premiums on Policies Written in the Quarter Increased 10.6%

DeRidder, LA - October 29, 2025 - AMERISAFE, Inc. (Nasdaq: AMSF), a specialty provider of workers’ compensation insurance focused on high-hazard industries, today announced results for the third quarter ended September 30, 2025.

	Three Months Ended			Nine Months Ended
	September 30,			September 30,
	2025	2024	% Change	2025	2024	% Change
	(in thousands, except per share data)			(in thousands, except per share data)
Gross premiums written	$80,321	$74,940	7.2%	$243,809	$231,442	5.3%
Net premiums earned	71,196	67,050	6.2%	209,462	204,129	2.6%
Net investment income	6,566	7,485	-12.3%	19,909	22,298	-10.7%
Net realized gains (losses) on investments (pre-tax)	-	158	NM	3,118	(181)	NM
Net unrealized gains on equity securities (pre-tax)	4,117	3,873	NM	2,794	8,591	NM
Net income	13,818	14,324	-3.5%	36,722	42,242	-13.1%
Diluted earnings per share	$0.72	$0.75	-4.0%	$1.92	$2.21	-13.1%
Operating net income	10,566	11,140	-5.2%	32,052	35,598	-10.0%
Operating earnings per share	$0.55	$0.58	-5.2%	$1.68	$1.86	-9.7%
Book value per share	$14.47	$16.50	-12.3%	$14.47	$16.50	-12.3%
Net combined ratio	90.6%	90.9%		90.5%	89.6%
Return on average equity	20.5%	18.6%		18.4%	18.6%

G. Janelle Frost, President and Chief Executive Officer, commented, “We are pleased to report our sixth consecutive quarter of growth in both gross premiums written and net premiums earned. Voluntary premiums on policies written also demonstrated continued momentum, increasing by 10.6%. Our continued success in the market reflects the strength of the AMERISAFE value proposition: delivering exceptional service to employers and their workers in high-hazard industries, from the initial application through the final claims payment. We remain focused on strengthening our team, advancing our technology, and maintaining underwriting discipline - all in support of sustained performance and long-term shareholder value.”

INSURANCE RESULTS

	Three Months Ended			Nine Months Ended
	September 30,			September 30,
	2025	2024	% Change	2025	2024	% Change
	(in thousands)			(in thousands)
Gross premiums written	$80,321	$74,940	7.2%	$243,809	$231,442	5.3%
Net premiums earned	71,196	67,050	6.2%	209,462	204,129	2.6%
Loss and loss adjustment expenses incurred	41,679	39,150	6.5%	122,498	119,765	2.3%
Underwriting and certain other operating costs, commissions, salaries and benefits	22,112	21,252	4.0%	64,457	60,379	6.8%
Policyholder dividends	712	513	38.8%	2,585	2,634	-1.9%
Underwriting profit (pre-tax)	$6,693	$6,135	9.1%	$19,922	$21,351	-6.7%
Insurance Ratios:
Current accident year loss ratio	71.0%	71.0%		71.0%	71.0%
Prior accident year loss ratio	-12.5%	-12.6%		-12.5%	-12.3%
Net loss ratio	58.5%	58.4%		58.5%	58.7%
Net underwriting expense ratio	31.1%	31.7%		30.8%	29.6%
Net dividend ratio	1.0%	0.8%		1.2%	1.3%
Net combined ratio	90.6%	90.9%		90.5%	89.6%

Voluntary premiums on policies written in the quarter were 10.6% higher than in the third quarter of 2024, driven by strong policy and premium retention, coupled with robust new business production.
Payroll audits and related premium adjustments contributed an additional $2.5 million to written premiums in the quarter, compared to $4.0 million in the third quarter of 2024.
Net loss ratio for the quarter was 58.5%, compared to 58.4% in the third 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 $8.9 million.
Underwriting expense ratio for the quarter was 31.1%, compared with 31.7% in the third quarter of 2024. The improvement reflects the benefits of scale as premium and policy count growth continues to expand our portfolio.
The effective tax rate for the quarter was 21.0% compared to 19.5% for the third quarter of 2024, due to an increase in state income taxes.

INVESTMENT RESULTS

	Three Months Ended			Nine Months Ended
	September 30,			September 30,
	2025	2024	% Change	2025	2024	% Change
	(in thousands)			(in thousands)
Net investment income	$6,566	$7,485	-12.3%	$19,909	$22,298	-10.7%
Net realized gains (losses) on investments (pre-tax)	-	158	NM	3,118	(181)	NM
Net unrealized gains on equity securities (pre-tax)	4,117	3,873	NM	2,794	8,591	NM
Pre-tax investment yield	3.2%	3.4%		3.2%	3.3%
Tax-equivalent yield (1)	3.9%	3.8%		3.9%	3.8%

The tax equivalent yield is calculated using the effective interest rate and the appropriate marginal tax rate.
Net investment income for the quarter decreased 12.3% to $6.6 million compared to the third quarter of 2024, due to a decrease in investable assets year-over-year as a result of the special dividend paid in the fourth quarter of 2024.
Net unrealized gains on equity securities totaled $4.1 million for the quarter, driven by continued strength in equity market performance.
As of September 30, 2025, the carrying value of AMERISAFE’s investment portfolio, including cash and cash equivalents, was $817.0 million.

CAPITAL MANAGEMENT

On October 28, 2025, the Board of Directors of AMERISAFE declared a special cash dividend of $1.00 per share and a regular cash dividend of $0.39 per share, payable on December 12, 2025, to shareholders of record as of December 5, 2025.

During the third quarter of 2025, the Company repurchased 30,860 shares at an average cost (including commissions and excise tax) of $43.72 per share, a total of $1.3 million. Since the inception of our initial share repurchase program in February 2010, we have repurchased 1,776,468 shares at an average cost of $26.00, for a total of $46.2 million. The remaining outstanding share repurchase authorization under the program as of September 30, 2025 was $24.9 million.

Book value per share on September 30, 2025, was $14.47, an increase of 7.1% from $13.51 on December 31, 2024.

SUPPLEMENTAL INFORMATION

	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2025	2024	2025	2024
	(in thousands, except share and per share data)
Net income	$13,818	$14,324	36,722	$42,242
Less:
Net realized gains (losses) on investments	-	158	3,118	(181)
Net unrealized gains on equity securities (pre-tax)	4,117	3,873	2,794	8,591
Tax effect (1)	(865)	(847)	(1,242)	(1,766)
Operating net income (2)	$10,566	$11,140	32,052	$35,598
Average shareholders’ equity (3)	$270,172	$307,682	$266,057	$303,411
Less:
Average accumulated other comprehensive loss	(5,619)	(6,118)	(6,276)	(4,935)
Average adjusted shareholders’ equity (2)	$275,791	$313,800	$272,333	$308,346
Diluted weighted average common shares	19,072,061	19,113,103	19,106,556	19,156,976
Return on average equity (4)	20.5%	18.6%	18.4%	18.6%
Operating return on average adjusted equity (2)	15.3%	14.2%	15.7%	15.4%
Diluted earnings per share	$0.72	$0.75	$1.92	$2.21
Operating earnings per share (2)	$0.55	$0.58	$1.68	$1.86

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%.
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.
Average shareholders’ equity is calculated by taking the average of the beginning and ending shareholders’ equity for the applicable period.
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 October 30, 2025, at 10:30 a.m. Eastern Time to discuss the results for the quarter. To participate in the conference call, dial 786-297-8744 (Conference Code 1713082) 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

Forward-looking statements notice

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 SEC, including AMERISAFE’s Annual Report on Form 10-K and as may be further amended by subsequent filings with the SEC. 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.

Tables to Follow -

AMERISAFE, INC. AND SUBSIDIARIES

Consolidated Statements of Income

(in thousands, except per share amounts)

	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2025	2024	2025	2024
	(unaudited)		(unaudited)
Revenues:
Gross premiums written	$80,321	$74,940	$243,809	$231,442
Ceded premiums written	(4,334)	(3,951)	(12,698)	(11,904)
Net premiums written	$75,987	$70,989	$231,111	$219,538
Net premiums earned	$71,196	$67,050	$209,462	$204,129
Net investment income	6,566	7,485	19,909	22,298
Net realized gains (losses) on investments	-	158	3,118	(181)
Net unrealized gains on equity securities	4,117	3,873	2,794	8,591
Fee and other income	97	129	378	177
Total revenues	81,976	78,695	235,661	235,014
Expenses:
Loss and loss adjustment expenses incurred	41,679	39,150	122,498	119,765
Underwriting and other operating costs	22,112	21,252	64,457	60,379
Policyholder dividends	712	513	2,585	2,634
Provision for investment related credit loss benefit	(8)	(13)	(36)	(46)
Total expenses	64,495	60,902	189,504	182,732
Income before taxes	17,481	17,793	46,157	52,282
Income tax expense	3,663	3,469	9,435	10,040
Net income	$13,818	$14,324	$36,722	$42,242
Basic EPS:
Net income	$13,818	$14,324	$36,722	$42,242
Basic weighted average common shares	18,980,807	19,042,152	19,018,293	19,082,374
Basic earnings per share	$0.73	$0.75	$1.93	$2.21
Diluted EPS:
Net income	$13,818	$14,324	$36,722	$42,242
Diluted weighted average common shares:
Weighted average common shares	18,980,807	19,042,152	19,018,293	19,082,374
Restricted stock and RSUs	91,254	70,951	88,263	74,602
Diluted weighted average common shares	19,072,061	19,113,103	19,106,556	19,156,976
Diluted earnings per share	$0.72	$0.75	$1.92	$2.21

AMERISAFE, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

(in thousands)

	September 30,	December 31,
	2025	2024
	(unaudited)
Assets
Investments	$762,280	$788,778
Cash and cash equivalents	54,747	44,045
Amounts recoverable from reinsurers	113,918	117,019
Premiums receivable, net	167,882	142,659
Deferred income taxes	18,854	19,448
Deferred policy acquisition costs	21,758	19,151
Other assets	25,505	26,691
	$1,164,944	$1,157,791
Liabilities and Shareholders’ Equity
Liabilities:
Reserves for loss and loss adjustment expenses	$617,860	$651,309
Unearned premiums	143,575	121,926
Insurance-related assessments	17,436	14,852
Other liabilities	111,300	112,363
Shareholders’ equity	274,773	257,341
Total liabilities and shareholders’ equity	$1,164,944	$1,157,791

Contacts
Andy Omiridis, EVP & CFO
AMERISAFE
337.463.9052