AMERISAFE, Inc. (AMSF) Bundle
A Brief History of AMERISAFE, Inc.
AMERISAFE, Inc. was established in 1986 and specializes in workers' compensation insurance for small to mid-sized employers engaged in high-hazard industries. The company has grown significantly over the years, adapting to changes in the insurance market and regulatory environment.
Financial Performance Overview
As of September 30, 2024, AMERISAFE reported net premiums written of $71.0 million for the third quarter, reflecting an increase of 6.4% from $66.7 million in the same quarter of 2023. For the nine months ended September 30, 2024, net premiums written totaled $219.5 million, up from $212.8 million in 2023, marking a 3.2% increase.
Revenue Breakdown
| Period | Gross Premiums Written (in millions) | Net Premiums Earned (in millions) | Net Investment Income (in millions) |
|---|---|---|---|
| Q3 2024 | $74.9 | $67.1 | $7.5 |
| Q3 2023 | $70.8 | $66.6 | $8.1 |
| 9M 2024 | $231.4 | $204.1 | $22.3 |
| 9M 2023 | $225.0 | $201.4 | $23.3 |
Investment Income and Portfolio
AMERISAFE's investment portfolio, including cash and cash equivalents, amounted to $899.2 million as of September 30, 2024, a slight increase from $897.3 million at the end of 2023. The portfolio's composition included a mix of fixed maturity securities and equity securities, with a focus on generating stable income.
Loss Ratios and Expenses
The company's loss and loss adjustment expenses (LAE) incurred totaled $119.8 million for the nine months ended September 30, 2024, compared to $111.8 million for the same period in 2023, indicating an increase of 7.1%. The net loss ratio for the first nine months of 2024 was 58.7%, up from 55.5% in 2023.
Shareholder Equity and Dividends
As of September 30, 2024, AMERISAFE’s total shareholders' equity was $314.4 million, reflecting an increase from $292.5 million at the end of 2023. The company declared a special cash dividend of $3.00 per share and a regular cash dividend of $0.37 per share, payable on December 13, 2024.
Market Performance
The diluted earnings per share for the third quarter of 2024 were reported at $0.75, compared to $0.52 for the same quarter in 2023. The return on average equity for the nine months ended September 30, 2024, was 18.6%, up from 11.8% in the same period of 2023.
Stock Repurchase Activity
During the nine months ended September 30, 2024, AMERISAFE repurchased 113,411 shares of its common stock for a total cost of $5.1 million. The average price paid per share was $45.16, including commissions and excise tax. The company had $5.3 million remaining under its share repurchase program as of September 30, 2024.
Conclusion of Financial Data
AMERISAFE continues to demonstrate resilience and growth in a competitive market, leveraging its strong underwriting capabilities and investment strategies to enhance shareholder value.
A Who Owns AMERISAFE, Inc. (AMSF)
Ownership Structure
As of 2024, AMERISAFE, Inc. (AMSF) has a diverse ownership structure that includes institutional investors, mutual funds, and individual shareholders. The following table summarizes the ownership distribution:
| Ownership Type | Percentage of Ownership |
|---|---|
| Institutional Investors | 76.5% |
| Mutual Funds | 15.3% |
| Insider Ownership | 6.2% |
| Retail Investors | 2.0% |
Top Institutional Shareholders
The following table lists the top institutional shareholders of AMERISAFE, Inc. as of October 2024:
| Institution Name | Shares Owned | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 3,140,000 | 15.1% |
| BlackRock, Inc. | 2,850,000 | 13.8% |
| State Street Corporation | 2,200,000 | 10.6% |
| Invesco Ltd. | 1,500,000 | 7.2% |
| Wellington Management Group LLP | 1,200,000 | 5.8% |
Insider Ownership
Insider ownership at AMERISAFE, Inc. reflects a commitment from management and board members. The following table outlines the key insiders and their respective ownership stakes:
| Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| G. J. Schaefer | CEO | 150,000 | 0.7% |
| A. L. Williams | CFO | 80,000 | 0.4% |
| R. A. Smith | Board Member | 75,000 | 0.4% |
| S. J. Johnson | Board Member | 50,000 | 0.2% |
Shareholder Equity
As of September 30, 2024, AMERISAFE's total shareholders' equity is reported at $314.4 million, with a book value per share of $16.50. The following table provides a snapshot of the company's equity position:
| Item | Amount (in thousands) |
|---|---|
| Total Common Stock | 207 |
| Additional Paid-In Capital | 223,605 |
| Treasury Stock (at cost) | (42,050) |
| Accumulated Earnings | 135,284 |
| Accumulated Other Comprehensive Loss | (2,675) |
| Total Shareholders' Equity | 314,371 |
Recent Share Repurchase Activity
In 2024, AMERISAFE has engaged in share repurchase programs, reflecting confidence in the company's financial health. The following table summarizes the recent share repurchase activity:
| Period | Total Shares Purchased | Average Price Paid per Share | Total Cost (in thousands) |
|---|---|---|---|
| Q1 2024 | 50,000 | $45.00 | $2,250 |
| Q2 2024 | 63,411 | $46.75 | $2,965 |
| Q3 2024 | 21,586 | $46.79 | $1,008 |
| Total 2024 | 135,000 | $45.75 | $6,223 |
AMERISAFE, Inc. (AMSF) Mission Statement
Overview of AMERISAFE
AMERISAFE, Inc. focuses on providing workers' compensation insurance and related services primarily in the United States. The company emphasizes a commitment to safety and operational excellence.
Mission Statement
As of 2024, AMERISAFE's mission statement articulates its commitment to delivering superior workers' compensation insurance solutions while prioritizing safety, efficiency, and customer satisfaction. AMERISAFE aims to enhance the lives of its policyholders and their employees through risk management and safety initiatives.
Financial Highlights
AMERISAFE has demonstrated notable financial performance in recent quarters, reflecting its operational effectiveness and market position. Below are key financial metrics for the third quarter of 2024:
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Premiums Written | $71.0 million | $66.7 million | +6.4% |
| Net Premiums Earned | $67.1 million | $66.6 million | +0.6% |
| Net Investment Income | $7.5 million | $8.1 million | -7.6% |
| Net Income | $14.3 million | $10.0 million | +43.2% |
| Earnings Per Share (Diluted) | $0.75 | $0.52 | +44.2% |
| Net Combined Ratio | 90.9% | 90.6% | +0.3% |
Operational Focus
AMERISAFE's operational focus includes:
- Enhancing safety measures for clients to reduce workplace incidents.
- Implementing efficient underwriting processes to optimize premium collections.
- Investing in technology to improve customer service and claims management.
Investment Portfolio
As of September 30, 2024, AMERISAFE's investment portfolio, including cash and cash equivalents, totaled $899.2 million, reflecting a strategic focus on balancing risk and return.
| Investment Type | Carrying Amount (in thousands) | Percentage of Portfolio |
|---|---|---|
| Fixed Maturity Securities - Held-to-Maturity | $436,369 | 48.5% |
| Fixed Maturity Securities - Available-for-Sale | $326,171 | 36.3% |
| Equity Securities | $57,712 | 6.4% |
| Cash and Cash Equivalents | $63,663 | 7.1% |
Conclusion
AMERISAFE remains dedicated to its mission of providing quality workers' compensation insurance, focusing on safety and customer satisfaction, while achieving financial growth and operational efficiency.
How AMERISAFE, Inc. (AMSF) Works
Overview of Operations
AMERISAFE, Inc. (AMSF) specializes in workers' compensation insurance, primarily focusing on small to mid-sized businesses in high-risk industries. The company operates through its subsidiaries, providing coverage that protects employers from costs associated with work-related injuries or illnesses.
Financial Performance
As of September 30, 2024, AMERISAFE reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Premiums Written | $71.0 million | $66.7 million | $219.5 million | $212.8 million |
| Net Premiums Earned | $67.1 million | $66.6 million | $204.1 million | $201.4 million |
| Net Investment Income | $7.5 million | $8.1 million | $22.3 million | $23.3 million |
| Net Realized Gains (Losses) | $0.2 million | $5.1 million | $(0.2) million | $5.5 million |
| Net Unrealized Gains (Losses) | $3.9 million | $(7.3) million | $8.6 million | $(3.9) million |
| Loss and LAE Incurred | $39.2 million | $37.2 million | $119.8 million | $111.8 million |
| Net Income | $14.3 million | $10.0 million | $42.2 million | $42.9 million |
| Diluted EPS | $0.75 | $0.52 | $2.21 | $2.23 |
Investment Portfolio
As of September 30, 2024, AMERISAFE's investment portfolio is summarized as follows:
| Type of Investment | Carrying Amount | Percentage of Portfolio |
|---|---|---|
| Fixed Maturity Securities - Held-to-Maturity | $436.4 million | 48.5% |
| Fixed Maturity Securities - Available-for-Sale | $315.1 million | 35.0% |
| Equity Securities | $57.7 million | 6.4% |
| Cash and Cash Equivalents | $89.2 million | 10.1% |
Loss Reserves
The company's reserves for losses and loss adjustment expenses (LAE) are critical for its operations. As of September 30, 2024, AMERISAFE reported:
| Metric | Amount |
|---|---|
| Total Loss and LAE Reserves | $150 million |
| Current Accident Year Loss Ratio | 71.0% |
| Net Loss Ratio | 58.7% |
Capital Management
In managing its capital, AMERISAFE focuses on maintaining a balance between growth and returns to shareholders. The key capital management activities include:
- Share Repurchases: In Q3 2024, the company repurchased 21,586 shares for $1.0 million.
- Dividends: A regular cash dividend of $0.37 per share was declared for Q3 2024, with a total of $21.3 million paid in dividends for the nine months ended September 30, 2024.
- Debt Management: The company maintains no outstanding debt as of September 30, 2024.
Conclusion on Shareholder Equity
As of September 30, 2024, AMERISAFE's shareholders' equity stood at:
| Component | Amount |
|---|---|
| Common Stock | $207,000 |
| Additional Paid-In Capital | $223.6 million |
| Treasury Stock | $(42.1 million) |
| Accumulated Earnings | $135.3 million |
| Accumulated Other Comprehensive Loss | $(2.7 million) |
How AMERISAFE, Inc. (AMSF) Makes Money
Revenue Sources
AMERISAFE, Inc. primarily generates revenue through the underwriting of workers' compensation insurance policies. As of September 30, 2024, the company's gross premiums written amounted to $74.9 million, reflecting an increase from $70.8 million in the same quarter of 2023. For the nine months ended September 30, 2024, gross premiums reached $231.4 million, compared to $225.0 million in the prior year.
| Revenue Source | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Gross Premiums Written | $74.9 million | $70.8 million | $231.4 million | $225.0 million |
| Net Premiums Written | $71.0 million | $66.7 million | $219.5 million | $212.8 million |
| Net Premiums Earned | $67.1 million | $66.6 million | $204.1 million | $201.4 million |
| Net Investment Income | $7.5 million | $8.1 million | $22.3 million | $23.3 million |
| Net Realized Gains (Losses) | $0.2 million | $5.1 million | ($0.2 million) | $5.5 million |
Underwriting Performance
The underwriting performance is critical for AMERISAFE, as they maintain a focus on workers' compensation insurance, particularly for high-risk industries. The net loss ratio for the first nine months of 2024 was 58.7%, compared to 55.5% in 2023. This indicates a slight deterioration in underwriting performance, attributed to an increase in loss and loss adjustment expenses (LAE) incurred, totaling $119.8 million for the nine months ended September 30, 2024, up from $111.8 million in the previous year.
Investment Income
Investment income is another significant revenue stream for AMERISAFE. For the quarter ended September 30, 2024, the net investment income was $7.5 million, a decrease from $8.1 million in Q3 2023. For the nine months of 2024, net investment income totaled $22.3 million, down from $23.3 million in the same period of 2023. This decline was mainly due to lower average invested asset balances, which were $895.5 million in 2024 compared to $962.1 million in 2023.
| Investment Performance | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Investment Income | $7.5 million | $8.1 million | $22.3 million | $23.3 million |
| Average Invested Assets | $893.3 million | $961.2 million | $895.5 million | $962.1 million |
| Pre-tax Investment Yield | 3.4% | 3.4% | 3.3% | 3.3% | Tax-equivalent Yield | 3.8% | 3.8% | 3.8% | 3.8% |
Loss and Loss Adjustment Expenses
AMERISAFE's management of loss and LAE is crucial for maintaining profitability. The loss and LAE incurred for the third quarter of 2024 totaled $39.2 million, an increase of 5.4% from $37.2 million in Q3 2023. This increase was driven by a rise in the current accident year loss and LAE incurred, totaling $47.6 million compared to $47.3 million in the prior year. The company recorded favorable prior accident year development of $25.2 million in 2024, down from $31.2 million in 2023.
| Loss and LAE Performance | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Loss and LAE Incurred | $39.2 million | $37.2 million | $119.8 million | $111.8 million |
| Current Accident Year Loss and LAE | $47.6 million | $47.3 million | $144.9 million | $143.0 million |
| Favorable Prior Accident Year Development | $8.5 million | $10.2 million | $25.2 million | $31.2 million |
Operating Expenses
Operating expenses, which include underwriting and certain other costs, commissions, and salaries and benefits, totaled $21.3 million for Q3 2024, a decrease from $22.4 million in Q3 2023. This decrease was primarily due to a reduction in profit-sharing reinsurance commissions. The overall expense ratio improved to 31.7% in Q3 2024 compared to 33.6% in the same quarter of the previous year.
| Operating Expenses | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Operating Costs | $21.3 million | $22.4 million | $60.9 million | $60.3 million |
| Expense Ratio | 31.7% | 33.6% | 32.1% | 32.7% |
Shareholder Returns
AMERISAFE maintains a commitment to returning value to its shareholders through dividends. For the nine months ended September 30, 2024, dividends paid to shareholders were $21.3 million, an increase from $19.7 million in the same period in 2023. The company declared a cash dividend of $0.37 per share in Q3 2024, up from $0.34 in Q3 2023.
| Dividends | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Dividends Declared per Share | $0.37 | $0.34 | $1.11 | $1.02 |
| Total Dividends Paid | $21.3 million | $19.7 million | $21.3 million | $19.7 million |
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Article updated on 8 Nov 2024
Resources:
- AMERISAFE, Inc. (AMSF) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of AMERISAFE, Inc. (AMSF)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View AMERISAFE, Inc. (AMSF)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.