Amerisafe Net Premiums Accelerate as Underwriting Costs Rise
The insurance provider reported net premiums earned of $77.3 million for the second quarter.
Amerisafe (AMSF), the insurance provider, reported net premiums earned of $77.3 million in the second quarter, an 11.4% increase year-over-year.
The growth in premiums accelerated from the 9.0% increase recorded in the first quarter. Gross premiums written also rose 7.9% year-over-year to $85.9 million, up from a 5.6% increase in the prior quarter.
Underwriting performance declined as the net combined ratio expanded to 95.4%. This figure rose from 91.7% in the second quarter of 2024 and 93.2% in the first quarter of 2025. The net loss ratio increased to 62.6%, compared to 58.6% in the same period last year.
Operating expenses added to the margin pressure. The net underwriting expense ratio rose to 31.8% from 31.3% a year ago. This result reversed a trend of improvement seen in the first quarter, when the ratio was 29.7% compared to 29.9% year-over-year.
Operating net income declined 17.9% year-over-year to $8.3 million. This followed a similar trajectory to the first quarter, which saw a 17.4% year-over-year decline. Net investment income also fell 2.4% year-over-year to $6.5 million.
Despite the dip in operating income, return on average equity rose to 23.5%. This was an increase from 21.2% in the second quarter of 2024 and 13.1% in the first quarter of 2025. The company also reported net unrealized gains on equity securities of $8.1 million, reversing net unrealized losses of $1.7 million from the previous quarter.
Growth in voluntary premiums on policies written increased 5.7% year-over-year, though this slowed from 8.2% growth in the first quarter. Payroll audits and related premium adjustments contributed $4.1 million to written premiums, up from $1.5 million in the second quarter of 2024.
Amerisafe increased its quarterly cash dividend 5.1% year-over-year to $0.41 a share. The company repurchased 184,093 shares for $5.6 million during the quarter, leaving $7.3 million in remaining authorization.