AMERISAFE Q3 Earnings Met Estimates, New Business Growth Aids

AMERISAFE, Inc. AMSF reported third-quarter 2025 adjusted earnings per share of 55 cents, which matched the Zacks Consensus Estimate. The bottom line fell 5.2% year over year.

Operating revenues improved 4% year over year to $78 million. Yet, the top line missed the consensus mark by 0.5%.

The quarterly results gained from strong policy retention rates, new business growth and improved underwriting efficiency, which contributed to a rise in net premiums earned and an improved net combined ratio. However, the upside was partly offset by a decline in net investment income and an elevated expense level.

AMERISAFE, Inc. Price, Consensus and EPS Surprise

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

AMSF’s Q3 Performance

Net premiums earned of $71.2 million advanced 6.2% year over year on the back of strong policy retention rates and new business growth. However, the metric fell short of the Zacks Consensus Estimate of $72 million. 

Net investment income decreased 12.3% year over year to $6.6 million due to reduced investable assets following the special dividend paid in the fourth quarter of 2024. The reported figure marginally missed the consensus mark. 

Fee and other income tumbled 24.8% year over year in the quarter under review. 

AMERISAFE’s pre-tax underwriting profit amounted to $6.7 million, which rose 9.1% year over year.

Total expenses escalated 5.9% year over year to $64.5 million due to higher loss and loss adjustment expenses incurred, and underwriting and other operating costs.

Operating net income of $10.6 million declined 5.2% year over year in the third quarter.

The net combined ratio improved 30 basis points (bps) to 90.6% and met the consensus mark. The metric was aided by an improved net underwriting expense ratio.

Financial Update (As of Sept. 30, 2025)

AMERISAFE exited the third quarter with cash and cash equivalents of $54.7 million, which advanced 24.3% from the 2024-end level. 

Total assets of $1.2 billion inched up 0.6% from the figure at 2024-end.

Shareholders' equity of $274.8 million slipped 6.8% from the 2024-end level.

Book value per share was $14.47 as of Sept. 30, 2025, which decreased 12.3% year over year.

Return on average equity improved 190 bps year over year to 20.5% in the quarter under review.

Capital Deployment Update

AMERISAFE bought back common shares for $1.3 million in the third quarter of 2025. As of Sept. 30, 2025, the company had a leftover repurchase capacity of $24.9 million.

Also, management announced a quarterly cash dividend of 39 cents per share as well as approved a special cash dividend of $1.00 per share. Both the dividends will be paid out on Dec. 12, 2025, to its shareholders of record as of Dec. 5.

AMSF’s Zacks Rank

AMERISAFE currently has a Zacks Rank #4 (Sell).  

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Insurers

Of the insurance industry players that have reported third-quarter 2025 results so far, the bottom-line results of Cincinnati Financial Corporation CINF, RenaissanceRe Holdings Ltd. RNR and RLI Corp. RLI beat the respective Zacks Consensus Estimate.

Cincinnati Financial reported third-quarter 2025 operating income of $2.85 per share, which surpassed the Zacks Consensus Estimate by 41.8%. The bottom line increased 100.7% year over year. Total operating revenues in the quarter under review were $2.9 billion, which improved 12.1% year over year. The top line beat the consensus mark by 0.8%. Net written premiums climbed 9% year over year to $2.5 billion. Investment income, net of expenses, increased 14% year over year to $295 million. 

In its property & casualty (P&C) insurance business, CINF witnessed an underwriting income of $293 million, which increased nearly fivefold from the year-ago period.  The combined ratio, a measure of underwriting profitability, improved 920 (bps year over year to 88.2. In the Commercial Lines Insurance unit, total revenues of $1.2 billion increased 8% year over year, driven by an 8% rise in premiums earned. 

RenaissanceRe’s third-quarter 2025 operating income of $15.62 per share outpaced the Zacks Consensus Estimate by a whopping 64.6%. The bottom line soared 52.7% year over year.  Total operating revenues of $2.9 billion tumbled 4.5% year over year. The top line missed the consensus mark by 3.7%. Gross premiums written slipped 3.2% year over year to $2.3 billion. Net premiums earned of $2.4 billion declined 5.8% year over year. Net investment income came in at $438.4 million, which grew 3.4% year over year.  

RenaissanceRe reported an underwriting income of $770.2 million in the third quarter, which jumped 95.6% year over year. The combined ratio improved 1,640 bps year over year to 68.4%. The Property Segment recorded gross premiums written of $733.3 million in the third quarter, which fell 7.3% year over year. It generated an underwriting income of $791.5 million, which doubled year over year. The combined ratio improved 4,480 bps year over year to 15.5%. 

RLI reported third-quarter 2025 operating earnings of 83 cents per share, which beat the Zacks Consensus Estimate by 33.9%.  The bottom line increased 27.7% from the prior-year quarter. Operating revenues in the reported quarter were $449 million, up 5.3% year over year, driven by 4.7% higher net premiums earned and 12.5% higher net investment income. The top line beat the Zacks Consensus Estimate by 0.5%. 

Gross premiums written of $562.3 million increased 0.5% year over year.  Net investment income increased 12% year over year to $41.3 million. Our estimate was $42.4 million. The investment portfolio’s total return was 3% in the quarter. Underwriting income of $60.5 million increased 48.6% year over year. The combined ratio improved 450 basis points (bps) year over year to 85.1. Our estimate was 97.8.

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