Amerisafe Q1 Net Income Declines 9%, Premiums Up 5.6% to $88.5M
Amerisafe reported Q1 net income of $8.15 million, or $0.43 diluted EPS, down 9% year-on-year as operating EPS fell 16.7% to $0.50. Gross premiums written rose 5.6% to $88.5 million while the net combined ratio widened to 93.2% from 89.1%.
1. Q1 Earnings and EPS
Amerisafe generated net income of $8.15 million for the quarter, translating to $0.43 diluted EPS, down 9% from $8.95 million and $0.47 in Q1 2025. Operating net income was $9.45 million, or $0.50 per share, a 16.7% decrease driven by investment and underwriting fluctuations.
2. Premium and Underwriting Metrics
The company achieved gross premiums written of $88.5 million, up 5.6% from $83.8 million, and net premiums earned rose 9.0% to $75.1 million. Loss and loss adjustment expenses increased, pushing the net combined ratio to 93.2% from 89.1%, despite improvements in expense discipline.
3. Investment Results
Net investment income totaled $6.6 million, a 0.8% decline due to lower investable asset balances, while net unrealized losses on equity securities were $1.65 million. The investment portfolio stood at $773.6 million at quarter-end, delivering a 3.4% pre-tax yield.
4. Capital Actions and Balance Sheet
Amerisafe paid a quarterly dividend of $0.41 per share, a 5.1% increase year-over-year, and repurchased 119,959 shares at an average price of $33.60 for $4.0 million, leaving $12.9 million of repurchase authorization. Book value per share was $13.18, down 3.7% year-over-year.