Amerisafe Q3 gross premiums rise 7.2%, adjusted EPS misses estimates

Reuters10-30
Amerisafe Q3 gross premiums rise 7.2%, adjusted EPS misses estimates

Overview

  • Workers’ compensation insurance company Amerisafe's Q3 gross premiums rise 7.2% yr/yr

  • Adjusted EPS for Q3 misses analyst expectations

  • Net investment income for Q3 falls 12.3% yr/yr due to decreased investable assets

Outlook

  • Company did not provide specific future financial guidance

Result Drivers

  • VOLUNTARY PREMIUMS - Voluntary premiums on policies written increased 10.6%, driven by strong policy retention and new business production

  • UNDERWRITING EXPENSES - Underwriting expense ratio improved to 31.1% from 31.7%, reflecting benefits of scale from portfolio growth

  • INVESTMENT INCOME DECLINE - Net investment income decreased 12.3% due to decreased investable assets following a special dividend

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Gross Premiums

$80.32 mln

Q3 Adjusted EPS

Miss

$0.55

$0.56 (4 Analysts)

Q3 EPS

$0.72

Q3 Net Income

$13.82 mln

Q3 Combined Ratio

90.60%

Q3 Underwriting Profit

$6.69 mln

Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "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 $50.00, about 18.8% above its October 28 closing price of $40.60

  • The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 20 three months ago

Press Release: ID:nBw3CHfZJa

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(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.)

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