AMERISAFE Q2 Earnings Miss Estimates on Lower Underwriting Profit

AMERISAFE, Inc. AMSF reported second-quarter adjusted earnings per share of 53 cents, which missed the Zacks Consensus Estimate by 3.6%. The bottom line dropped 8.6% year over year.

Operating revenues were $76.1 million, which inched up year over year. The top line fell short of the consensus mark by 1.5%.

The weaker-than-expected quarterly results were affected by a drop in net investment income, softer underwriting results and elevated expense levels. Strong retention rates and new business growth partially offset the negatives.

AMERISAFE, Inc. Price, Consensus and EPS Surprise

AMERISAFE, Inc. price-consensus-eps-surprise-chart | AMERISAFE, Inc. Quote

AMSF’s Q2 Performance

Net premiums earned rose 1.1% year over year to $69.4 million in the quarter under review but lagged the Zacks Consensus Estimate of $70.5 million. The metric was aided by strong retention rates and new business growth.

Net investment income of $6.7 million tumbled 10.2% year over year due to reduced investable assets as a result of the special dividend paid in the fourth quarter of 2024. However, the metric beat the consensus mark of $6.6 million.

AMERISAFE reported a pre-tax underwriting profit of $5.7 million in the second quarter, which fell 12.2% year over year.

Total expenses of $63.6 million increased 2.5% year over year due to higher loss and loss adjustment expenses incurred, and underwriting and other operating costs.

Operating net income slipped 9.7% year over year to $10 million.

The net combined ratio was 91.7%, which deteriorated 120 basis points (bps) year over year and also came higher than the consensus mark of 90.5%. The metric suffered due to a deteriorating net underwriting expense ratio.

Financial Update (As of June 30, 2025)

AMERISAFE exited the second quarter with cash and cash equivalents of $48.5 million, which increased from the 2024-end level of $44 million.

Total assets of $1.2 billion decreased marginally from the figure at 2024-end.

Shareholders' equity of $265.6 million rose 3.2% from the 2024-end level.

Book value per share was $13.96 as of June 30, 2025, which fell 11.5% year over year.

Return on average equity improved 660 bps year over year to 21.2% in the quarter under review.

Capital Deployment Update

AMERISAFE bought back 62.8 thousand common shares in the second quarter of 2025 for $2.8 million. The company reauthorized the $25 million share repurchase program, which replaced its prior program.

Also, management announced a quarterly cash dividend of 39 cents per share, which will be paid out on Sept. 26, 2025, to its shareholders of record as of Sept. 12.

AMSF’s Zacks Rank & Key Picks

AMSF currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader finance space are Virtu Financial Inc VIRT, Marex Group PLC MRX and Acadian Asset Management Inc. AAMI, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Virtu Financial’s current-year earnings of $4.39 per share has witnessed four upward revisions in the past 30 days against none in the opposite direction. Virtu Financial beat earnings estimates in each of the trailing four quarters, with the average surprise being 20.2%. The consensus estimate for current-year revenues is pegged at $1.8 billion, implying 13.8% year-over-year growth.

The consensus estimate for Marex Group’s current-year earnings of $3.52 per share has witnessed one upward revision in the past 30 days against no movement in the opposite direction. Marex Group beat earnings estimates in each of the trailing four quarters, with the average surprise being 26.3%. The consensus estimate for current-year revenues is pegged at $1.8 billion, implying 12.4% year-over-year growth.

The Zacks Consensus Estimate for Acadian Asset Management’s current-year earnings is pegged at $3.18 per share, implying 15.2% year-over-year growth. In the past 30 days, Acadian Asset Management has witnessed one upward estimate revision against none in the opposite direction. The consensus mark for the current-year revenues is pegged at $560.8 million, indicating 10.9% year-over-year growth.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research