Amerisafe Combined Ratio Widens as Written Premiums Fall

The Tip Desk · November 9, 2026 · 4 min read

Net premiums earned rose 3.0% to $73.3 million in the third quarter as the net combined ratio reached 96.5% and diluted earnings fell to $0.39 a share.

Amerisafe, Inc. (AMSF), a specialty workers’ compensation insurer focused on high-hazard industries, reported that gross premiums written fell 4.5% from a year earlier to $76.7 million in the third quarter ended September 30, 2026, reversing the 7.9% year-over-year increase to $86.0 million in the second quarter.

Net premiums earned rose 3.0% to $73.3 million, slowing from 11.4% year-over-year growth to $77.3 million in the second quarter. Voluntary premiums on policies written in the quarter increased 0.8% versus the third quarter of 2025, down from a 5.7% year-over-year increase in the second quarter. Payroll audits remained additive, but policy cancellations and other related premium adjustments more than offset that contribution; audits and related adjustments decreased premiums written by $1.6 million in the third quarter of 2026, after contributing $4.1 million in the second quarter.

President and Chief Executive Officer Janelle Frost said third-quarter results reflected an increasingly competitive workers’ compensation market, softer audit premium, and higher expenses that weighed on the net combined ratio. She said the company maintained disciplined pricing, delivered favorable prior-year loss reserve development, and saw encouraging improvement in new business activity late in the quarter.

The net combined ratio widened to 96.5% from 95.4% in the second quarter. Loss and loss adjustment expenses incurred were $45.9 million. Those expenses benefited from $6.9 million of favorable case reserve development, primarily on accident years 2023 and prior, producing a net loss ratio of 62.6%. The current accident year loss ratio was 72.0%. The net underwriting expense ratio rose to 32.5% from 31.8% in the second quarter. The company said the year-over-year increase from 31.1% in the third quarter of 2025 was primarily attributable to increased insurance-related assessments, higher compensation costs, and higher commission expense. Policyholder dividends were $1.05 million and the net dividend ratio was 1.4%. Pre-tax underwriting profit declined to $2.5 million from $3.6 million in the second quarter.

Net income fell 47.9% from a year earlier to $7.2 million, or $0.39 a share, after a 4.6% year-over-year increase to $14.6 million, or $0.78 a share, in the second quarter. Operating net income was $7.4 million, or $0.40 a share. Return on average equity declined to 11.8% from 23.5% in the second quarter.

Net investment income increased 0.6% year over year to $6.6 million, after a 2.4% year-over-year decline to $6.5 million in the second quarter. The company said the increase was driven by an improved portfolio book yield and disciplined expense management, partially offset by lower average investable assets compared with the prior-year period, primarily due to capital returned through dividends and share repurchases. Net unrealized losses on equity securities were $0.2 million, after $8.1 million of net unrealized gains in the second quarter. Pre-tax investment yield was 3.5%. As of September 30, 2026, the carrying value of the investment portfolio, including cash and cash equivalents, was $753.3 million.

During the third quarter, the company paid a regular quarterly cash dividend of $0.41 a share on September 25, 2026, a 5.1% increase compared with the third quarter of 2025. On October 27, 2026, the board declared a quarterly cash dividend of $0.41 a share, payable on December 11, 2026, to shareholders of record as of December 4, 2026. The company repurchased 5,450 shares at an average cost of $30.18 a share, including commissions and excise tax, for a total of $0.2 million. Remaining outstanding share repurchase authorization as of September 30, 2026, was $7.1 million. Book value per share was $12.80 at September 30, 2026, down from $13.49 at June 30, 2026.

Frost said that as the company moves forward it remains focused on sustaining late-quarter new-business momentum while continuing to apply underwriting discipline, proactive claims management and specialized safety expertise.