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| Share Name | Share Symbol | Market | Type |
|---|---|---|---|
| AMERISAFE Inc | NASDAQ:AMSF | NASDAQ | Common Stock |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 58.07 | 23.23 | 92.33 | 3 | 09:43:26 |
From May 2024 to Nov 2024
AMERISAFE, Inc. (Nasdaq: AMSF), a specialty provider of workers’ compensation insurance focused on high-hazard industries, today announced results for the second quarter ended June 30, 2024.
Three Months Ended
Six Months Ended
June 30,
June 30,
2024
2023
% Change
2024
2023
% Change
(in thousands, except per share data) (in thousands, except per share data) Net premiums earned$
68,633
$
65,598
4.6
%
$
137,079
$
134,779
1.7
%
Net investment income
7,447
7,724
-3.6
%
14,813
15,157
-2.3
%
Net realized gains (losses) on investments (pre-tax)
(117
)
75
NM
(339
)
333
NM
Net unrealized gains (losses) on equity securities (pre-tax)
(58
)
2,048
NM
4,718
3,417
NM
Net income
10,993
15,627
-29.7
%
27,918
32,966
-15.3
%
Diluted earnings per share$
0.57
$
0.81
-29.6
%
$
1.46
$
1.72
-15.1
%
Operating net income
11,131
13,950
-20.2
%
24,459
30,004
-18.5
%
Operating earnings per share$
0.58
$
0.73
-20.5
%
$
1.28
$
1.56
-17.9
%
Book value per share$
15.78
$
17.76
-11.1
%
$
15.78
$
17.76
-11.1
%
Net combined ratio
90.5
%
85.4
%
88.8
%
83.9
%
Return on average equity
14.6
%
18.6
%
18.8
%
20.0
%
G. Janelle Frost, President and Chief Executive Officer, noted, “We are pleased with our second-quarter results. New business generation, along with strong retention and increased audit premiums generated gross premiums written growth of 6.6% for the quarter. Enhancing the profitable growth was favorable loss development from prior accident years. In all, we produced an attractive underwriting profit and added to the year's robust returns."
INSURANCE RESULTS
Three Months Ended
Six Months Ended
June 30,
June 30,
2024
2023
% Change
2024
2023
% Change
(in thousands) (in thousands) Gross premiums written$
76,428
$
71,704
6.6
%
$
156,502
$
154,191
1.5
%
Net premiums earned
68,633
65,598
4.6
%
137,079
134,779
1.7
%
Loss and loss adjustment expenses incurred
40,624
35,645
14.0
%
80,615
74,654
8.0
%
Underwriting and certain other operating costs, commissions, salaries and benefits
20,429
19,972
2.3
%
39,127
36,954
5.9
%
Policyholder dividends
1,049
490
114.1
%
2,121
1,421
49.3
%
Underwriting profit (pre-tax)$
6,531
$
9,491
-31.2
%
$
15,216
$
21,750
-30.0
%
Insurance Ratios: Current accident year loss ratio
71.0
%
71.0
%
71.0
%
71.0
%
Prior accident year loss ratio
-11.8
%
-16.7
%
-12.2
%
-15.6
%
Net loss ratio
59.2
%
54.3
%
58.8
%
55.4
%
Net underwriting expense ratio
29.8
%
30.4
%
28.5
%
27.4
%
Net dividend ratio
1.5
%
0.7
%
1.5
%
1.1
%
Net combined ratio
90.5
%
85.4
%
88.8
%
83.9
%
INVESTMENT RESULTS
Three Months Ended
Six Months Ended
June 30,
June 30,
2024
2023
% Change
2024
2023
% Change
(in thousands) (in thousands) Net investment income$
7,447
$
7,724
-3.6
%
$
14,813
$
15,157
-2.3
%
Net realized gains (losses) on investments (pre-tax)
(117
)
75
NM
(339
)
333
NM
Net unrealized gains (losses) on equity securities (pre-tax)
(58
)
2,048
NM
4,718
3,417
NM
Pre-tax investment yield
3.3
%
3.2
%
3.3
%
3.2
%
Tax-equivalent yield (1)
3.8
%
3.6
%
3.8
%
3.6
%
___________(1)
The tax equivalent yield is calculated using the effective interest rate and the appropriate marginal tax rate.
CAPITAL MANAGEMENT
During the second quarter of 2024, the Company repurchased 91,825 shares at an average cost (including commissions and excise tax) of $44.79 per share, a total of $4.1 million. Since the inception of our initial share repurchase program in February 2010, we have repurchased 1,661,265 shares at an average cost of $24.71, a total of $41.0 million. The remaining outstanding share repurchase authorization as of June 30, 2024 is $6.3 million.
The Company also paid a regular quarterly cash dividend of $0.37 per share on June 21, 2024, which represented an 8.8% increase in the quarterly dividend compared with 2023. On July 26, 2024, the Company’s Board of Directors declared a quarterly cash dividend of $0.37 per share, payable on September 20, 2024, to shareholders of record as of September 6, 2024.
Book value per share on June 30, 2024, was $15.78, an increase of 3.3% from $15.28 on December 31, 2023.
SUPPLEMENTAL INFORMATION
Three Months Ended
Six Months Ended
June 30,
June 30,
2024
2023
2024
2023
(in thousands, except share and per share data) Net income$
10,993
$
15,627
$
27,918
$
32,966
Less: Net realized gains (losses) on investments
(117
)
75
(339
)
333
Net unrealized gains (losses) on equity securities (pre-tax)
(58
)
2,048
4,718
3,417
Tax effect (1)
37
(446
)
(920
)
(788
)
Operating net income (2)$
11,131
$
13,950
$
24,459
$
30,004
Average shareholders’ equity (3)
$
301,043
$
336,711
$
296,722
$
329,000
Less: Average accumulated other comprehensive loss
(9,150
)
(10,792
)
(8,377
)
(12,964
)
Average adjusted shareholders’ equity (2)$
310,193
$
347,503
$
305,099
$
341,964
Diluted weighted average common shares
19,146,294
19,196,755
19,171,206
19,200,377
Return on average equity (4)
14.6
%
18.6
%
18.8
%
20.0
%
Operating return on average adjusted equity (2)
14.4
%
16.1
%
16.0
%
17.5
%
Diluted earnings per share$
0.57
$
0.81
$
1.46
$
1.72
Operating earnings per share (2)
$
0.58
$
0.73
$
1.28
$
1.56
(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 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 July 30, 2024, at 10:30 a.m. Eastern Time to discuss the results for the quarter and comment on future periods. To participate in the conference call, dial 786-789-4833 (Conference Code 9064151) 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 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 views and expectations of the workers’ compensation market, the Company’s growth opportunities, underwriting margins and actions by competitors. Actual results may differ materially from the results expressed or implied in these statements if the underlying assumptions prove to be incorrect or as the results of risks, uncertainties, and other factors on the business and operations of the Company and our policyholders and the market value of our investment portfolio. Additional factors that may affect our results are set forth in the Company’s filings with the 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 publicly update or revise any forward-looking statements to reflect future events, information, or circumstances that arise after the date of this release.
AMERISAFE, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(in thousands, except per share amounts)
Three Months Ended
Six Months Ended
June 30,
June 30,
2024
2023
2024
2023
(unaudited) (unaudited) Revenues: Gross premiums written$
76,428
$
71,704
$
156,502
$
154,191
Ceded premiums written
(4,027
)
(3,965
)
(7,953
)
(8,144
)
Net premiums written$
72,401
$
67,739
$
148,549
$
146,047
Net premiums earned
$
68,633
$
65,598
$
137,079
$
134,779
Net investment income
7,447
7,724
14,813
15,157
Net realized gains (losses) on investments
(117
)
75
(339
)
333
Net unrealized gains (losses) on equity securities
(58
)
2,048
4,718
3,417
Fee and other income (losses)
(75
)
214
48
411
Total revenues
75,830
75,659
156,319
154,097
Expenses: Loss and loss adjustment expenses incurred
40,624
35,645
80,615
74,654
Underwriting and other operating costs
20,429
19,972
39,127
36,954
Policyholder dividends
1,049
490
2,121
1,421
Provision for investment related credit loss benefit
(16
)
(16
)
(33
)
(35
)
Total expenses
62,086
56,091
121,830
112,994
Income before taxes
13,744
19,568
34,489
41,103
Income tax expense
2,751
3,941
6,571
8,137
Net income
$
10,993
$
15,627
$
27,918
$
32,966
Basic EPS: Net income
$
10,993
$
15,627
$
27,918
$
32,966
Basic weighted average common shares
19,083,232
19,139,735
19,102,700
19,135,564
Basic earnings per share
$
0.58
$
0.82
$
1.46
$
1.72
Diluted EPS: Net income
$
10,993
$
15,627
$
27,918
$
32,966
Diluted weighted average common shares: Weighted average common shares
19,083,232
19,139,735
19,102,700
19,135,564
Restricted stock and RSUs
63,062
57,020
68,506
64,813
Diluted weighted average common shares
19,146,294
19,196,755
19,171,206
19,200,377
Diluted earnings per share
$
0.57
$
0.81
$
1.46
$
1.72
AMERISAFE, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands)
June 30,
December 31,
2024
2023
(unaudited) Assets Investments$
853,597
$
857,786
Cash and cash equivalents
30,611
38,682
Amounts recoverable from reinsurers
123,335
129,963
Premiums receivable, net
150,914
132,861
Deferred income taxes
21,781
20,403
Deferred policy acquisition costs
19,506
17,975
Other assets
33,785
31,492
$
1,233,529
$
1,229,162
Liabilities and Shareholders’ Equity Liabilities: Reserves for loss and loss adjustment expenses
$
663,985
$
673,994
Unearned premiums
128,055
116,585
Insurance-related assessments
16,661
16,896
Other liabilities
123,836
129,236
Shareholders’ equity
300,992
292,451
Total liabilities and shareholders’ equity
$
1,233,529
$
1,229,162
View source version on businesswire.com: https://www.businesswire.com/news/home/20240729190019/en/
Andy Omiridis, EVP & CFO AMERISAFE 337.463.9052
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