Amerisafe Q2 gross premiums rise 4.3%, adjusted EPS misses estimates

Amerisafe

24/07/2025 21:37

Overview

Amerisafe Q2 gross premiums rise 4.3% yr/yr, driven by 12.8% voluntary premium growth

Adjusted EPS for Q2 marginally misses analysts' expectations, per LSEG data

Net investment income declines 10.2% due to decreased investable assets

Result Drivers

VOLUNTARY PREMIUM GROWTH - Voluntary premiums on policies written increased 12.8%, driven by stable policy retention and robust new business production

LOSS RATIO IMPROVEMENT - Favorable net loss reserve development for prior accident years reduced loss and loss adjustment expenses by $8.6 mln, improving the loss ratio to 58.6%

UNDERWRITING EXPENSES - Underwriting expense ratio rose to 31.3% due to higher insurance-based assessments and sustained business investment

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Gross Premiums
$79.70 mln
Q2 Adjusted EPS
Miss
$0.53
$0.54 (4 Analysts)
Q2 EPS
$0.73
Q2 Net Income
$13.96 mln
Q2 Combined Ratio
91.7%
Q2 Underwriting Profit
$5.74 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the property & casualty insurance peer group is "buy."

Wall Street's median 12-month price target for Amerisafe Inc is $54.00, about 18.5% above its July 23 closing price of $44.00

The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 23 three months ago

Press Release: ID:nBw8rDKXka

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)