AMERISAFE Announces 2026 First Quarter Results

Key Terms

net combined ratio financial

Net combined ratio measures an insurance company's underwriting profitability by comparing claims paid and operating costs to earned premiums after accounting for reinsurance. A ratio below 100% means the insurer is making money on its insurance policies; above 100% means it is paying out more in claims and costs than it receives in premiums. Investors use it like a household budget check to see whether the core insurance business is sustainably profitable or dependent on investment income.

net loss ratio financial

Net loss ratio is the share of an insurer’s premium revenue that goes toward paying claims and claim-related expenses after deducting reinsurance and similar adjustments. For investors, it shows how much of the company’s core revenue is eaten by payouts — like a shop that tells you what percent of sales is spent on refunds — so a lower net loss ratio generally signals healthier underwriting and higher potential profitability.

underwriting profit financial

Underwriting profit is the money an insurer keeps from its core insurance business after paying claims, covering operating costs, and accounting for reinsurance — essentially premiums collected minus the direct costs of providing coverage. It matters to investors because it shows whether the company’s insurance operations are sustainably profitable on their own, like the margin a store earns on goods sold before counting interest or investment gains.

net investment income financial

Net investment income is the money an investor or fund actually keeps from its investments after subtracting the costs of running those investments (like management fees, interest, and losses). Think of it as your paycheck from owning assets: gross returns minus the bills needed to earn them. Investors watch it because it shows how profitable the investment activities are, influences dividend payouts and cash available for growth, and helps compare true performance across funds or companies.

tax-equivalent yield financial

Tax-equivalent yield is the pre-tax interest rate a taxable investment must offer to match the after-tax return of a tax-exempt investment. Think of it like comparing take-home pay: one paycheck is tax-free and another is larger before taxes, and you calculate how big the taxed paycheck must be to end up with the same net amount. Investors use it to fairly compare taxable and tax-exempt bonds when deciding where their money will earn more after taxes.

non-GAAP financial measures financial

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

effective tax rate financial

The effective tax rate is the percentage of a company's profits that it pays in taxes. It shows how much of its earnings go to taxes after all deductions and credits are considered. For investors, it indicates how much of the company's income is taken by taxes, impacting overall profitability and financial health.

Reports 8.2% Growth in Voluntary Premiums on Policies Written

DERIDDER, La.--(BUSINESS WIRE)-- AMERISAFE, Inc. (Nasdaq: AMSF), a specialty provider of workers’ compensation insurance focused on high-hazard industries, today announced results for the first quarter ended March 31, 2026.

	Three Months Ended
	March 31,
		2026				2025			% Change
	(in thousands, except per share data)
Gross premiums written	$	88,500			$	83,784			5.6	%
Net premiums earned		75,072				68,885			9.0	%
Net investment income		6,597				6,652			-0.8	%
Net realized gains (losses) on investments (pre-tax)		(3	)			2			NM
Net unrealized losses on equity securities (pre-tax)		(1,653	)			(3,152	)		NM
Net income		8,145				8,949			-9.0	%
Diluted earnings per share	$	0.43			$	0.47			-8.5	%
Operating net income		9,453				11,438			-17.4	%
Operating earnings per share	$	0.50			$	0.60			-16.7	%
Book value per share	$	13.18			$	13.69			-3.7	%
Net combined ratio		93.2	%			89.1	%
Return on average equity		13.1	%			13.8	%

G. Janelle Frost, President and Chief Executive Officer, commented, “AMERISAFE delivered a strong start to 2026, marking our eighth consecutive quarter of growth in both gross premiums written and net premiums earned, with net premiums earned increasing 9.0% during the first quarter. We continued to demonstrate expense discipline, achieving a third consecutive quarter of year over year improvement in the expense ratio. Despite a competitive market environment, we believe our targeted focus on high hazard industries continues to create meaningful opportunities for profitable growth and attractive returns on equity. Our disciplined underwriting approach, strong balance sheet, and consistent capital management—supported by the dedication of our employees—remain central to our strategy. We are confident in our ability to execute our long-term objectives and to deliver reliable value for shareholders while providing exceptional service to small and mid-sized businesses and their workers.”

INSURANCE RESULTS
	Three Months Ended
	March 31,
		2026				2025			% Change
	(in thousands)
Gross premiums written	$	88,500			$	83,784			5.6	%
Net premiums earned		75,072				68,885			9.0	%
Loss and loss adjustment expenses incurred		46,440				40,159			15.6	%
Underwriting and certain other operating costs, commissions, salaries and benefits		22,269				20,599			8.1	%
Policyholder dividends		1,229				634			93.8	%
Underwriting profit (pre-tax)	$	5,134			$	7,493			-31.5	%
Insurance Ratios:
Current accident year loss ratio		72.0	%			71.0	%
Prior accident year loss ratio		-10.1	%			-12.7	%
Net loss ratio		61.9	%			58.3	%
Net underwriting expense ratio		29.7	%			29.9	%
Net dividend ratio		1.6	%			0.9	%
Net combined ratio		93.2	%			89.1	%

• Voluntary premiums on policies written in the quarter increased 8.2%, compared to the first quarter of 2025, due to strong new business production and solid premium and policy retention.
• Payroll audits and related premium adjustments contributed $3.7 million to premiums written in the quarter, compared to $5.0 million in the first quarter of 2025.
• Loss and loss adjustment expenses were reduced by $7.6 million in the quarter due to favorable case reserve development on accident years 2023 and prior, resulting in a net loss ratio of 61.9%, compared to $8.7 million and 58.3%, respectively, in the prior-year quarter.
• Underwriting expense ratio for the quarter was 29.7%, compared to 29.9% in the first quarter of 2025, reflecting improved operating scale as growth in premium volume and policy count continues to outpace controllable cost increases.
• Our effective tax rate for the quarter was 19.8%, compared to 20.2% in the prior-year quarter.

INVESTMENT RESULTS
	Three Months Ended
	March 31,
		2026				2025			% Change
	(in thousands)
Net investment income	$	6,597			$	6,652			-0.8	%
Net realized gains (losses) on investments (pre-tax)		(3	)			2			NM
Net unrealized losses on equity securities (pre-tax)		(1,653	)			(3,152	)		NM
Pre-tax investment yield		3.4	%			3.2	%
Tax-equivalent yield (1)		3.9	%			3.8	%

(1)	The tax equivalent yield is calculated using the effective interest rate and the appropriate marginal tax rate.

• Net investment income decreased 0.8% to $6.6 million for the quarter, driven by lower average investable assets compared to the prior-year period, partially offset by a higher overall book yield and reduced expenses.
• Net unrealized losses on equity securities were $1.7 million for the quarter, driven by market volatility and lower valuations across the equity portfolio.
• As of March 31, 2026, the carrying value of AMERISAFE’s investment portfolio, including cash and cash equivalents, was $773.6 million.

CAPITAL MANAGEMENT

During the first quarter of 2026, the Company paid a regular quarterly cash dividend of $0.41 per share on March 20, 2026, representing a 5.1% increase compared to the first quarter of 2025. On April 21, 2026, the Board of Directors of AMERISAFE declared a quarterly cash dividend of $0.41 per share, payable on June 19, 2026, to shareholders of record as of June 12, 2026.

Also during the quarter, the Company repurchased 119,959 shares of its common stock under the Company’s share repurchase program at an average cost of $33.60 per share, including commissions and excise tax, for a total of $4.0 million. Since the inception of its share repurchase program in 2010, the Company has repurchased 2,094,099 shares at an average cost of $27.79 per share, including commissions and excise tax, for a total of $58.2 million. The remaining outstanding share repurchase authorization under the program as of March 31, 2026, was $12.9 million.

Book value per share at March 31, 2026, was $13.18, a decrease of 1.6% from $13.39 at December 31, 2025.

SUPPLEMENTAL INFORMATION
	Three Months Ended
	March 31,
		2026				2025
Net income		8,145			$	8,949
Less:
Net realized gains (losses) on investments		(3	)			2
Net unrealized losses on equity securities (pre-tax)		(1,653	)			(3,152	)
Tax effect (1)		348				661
Operating net income (2)		9,453			$	11,438
Average shareholders’ equity (3)	$	249,098			$	259,077
Less:
Average accumulated other comprehensive loss		(4,441	)			(8,072	)
Average adjusted shareholders’ equity (2)	$	253,539			$	267,149
Diluted weighted average common shares		18,863,395				19,154,426
Return on average equity (4)		13.1	%			13.8	%
Operating return on average adjusted equity (2)		14.9	%			17.1	%
Diluted earnings per share	$	0.43			$	0.47
Operating earnings per share (2)	$	0.50			$	0.60
________________________________

(1)	The tax effect of net realized gains (losses) on investments and net unrealized 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 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 April 22, 2026, at 4:30 p.m. Eastern Time to discuss the results for the quarter. To participate in the conference call, dial 786-297-8744 (Conference Code: 5803016) 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, services, manufacturing, and maritime. AMERISAFE actively markets workers’ compensation insurance in 27 states.

CAUTIONARY STATEMENT REGARDING 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, 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
	March 31,
		2026				2025
	(unaudited)
Revenues:
Gross premiums written	$	88,500			$	83,784
Ceded premiums written		(4,069	)			(4,179	)
Net premiums written	$	84,431			$	79,605
Net premiums earned	$	75,072			$	68,885
Net investment income		6,597				6,652
Net realized gains (losses) on investments		(3	)			2
Net unrealized losses on equity securities		(1,653	)			(3,152	)
Fee and other income		77				210
Total revenues		80,090				72,597
Expenses:
Loss and loss adjustment expenses incurred		46,440				40,159
Underwriting and other operating costs		22,269				20,599
Policyholder dividends		1,229				634
Provision for investment related credit loss benefit		(8	)			(16	)
Total expenses		69,930				61,376
Income before taxes		10,160				11,221
Income tax expense		2,015				2,272
Net income	$	8,145			$	8,949
Basic EPS:
Net income	$	8,145			$	8,949
Basic weighted average common shares		18,759,526				19,036,309
Basic earnings per share	$	0.43			$	0.47
Diluted EPS:
Net income	$	8,145			$	8,949
Diluted weighted average common shares:
Weighted average common shares		18,759,526				19,036,309
Restricted stock and RSUs		103,869				118,117
Diluted weighted average common shares		18,863,395				19,154,426
Diluted earnings per share	$	0.43			$	0.47

AMERISAFE, INC. AND SUBSIDIARIES Consolidated Balance Sheets (in thousands)
	March 31,			December 31,
	2026			2025
	(unaudited)
Assets
Investments	$	739,350		$	734,855
Cash and cash equivalents		34,226			61,926
Amounts recoverable from reinsurers		104,802			108,098
Premiums receivable, net		175,210			160,944
Deferred income taxes		18,322			17,572
Deferred policy acquisition costs		22,126			21,085
Other assets		28,923			26,064
	$	1,122,959		$	1,130,544
Liabilities and Shareholders’ Equity
Liabilities:
Reserves for loss and loss adjustment expenses	$	601,861		$	613,583
Unearned premiums		144,862			135,503
Insurance-related assessments		16,774			15,979
Other liabilities		112,865			113,881
Shareholders’ equity		246,597			251,598
Total liabilities and shareholders’ equity	$	1,122,959		$	1,130,544

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260422198013/en/

G. Janelle Frost
President & CEO
AMERISAFE
337.463.9052

Source: AMERISAFE, Inc.