AMERISAFE (AMSF) Q3 2025 earnings summary

Executive summary

• Achieved sixth consecutive quarter of growth in gross premiums written and net premiums earned, with voluntary premiums up 10.6% year-over-year for Q3 2025.

• Gross premiums written increased 7.2% year-over-year for Q3 2025, driven by higher voluntary premiums and supported by broad-based policy count and payroll growth.

• Net income for Q3 2025 was $13.8 million ($0.72 per diluted share), down from $14.3 million in Q3 2024.

• Net combined ratio for Q3 2025 was 90.6%, indicating continued underwriting profitability.

• Focus remains on underwriting discipline, technology advancement, and team strengthening to support long-term shareholder value.

Financial highlights

• Gross premiums written were $80.3 million, up 7.2% from Q3 2024; net premiums earned rose 6.2% to $71.2 million.

• Net investment income declined 12.3% year-over-year to $6.6 million due to lower average investable assets.

• Book value per share was $14.47 at September 30, 2025, up 7.1% year-to-date but down from $16.50 a year earlier.

• Underwriting and other expenses totaled $22.1 million, with an expense ratio of 31.1%, down from 31.7% year-over-year.

• Return on average equity was 20.5% for Q3 2025, up from 18.6% in Q3 2024.

Outlook and guidance

• Management expresses confidence in the durability of the current growth strategy, focusing on disciplined underwriting, claims management, and technology investment.

• Wage growth in Q3 was 6.7%, with a 2% increase in new employee count, indicating a rebound from a slight decline in the previous quarter.

• Skilled labor jobs in high hazard industries are performing well, supporting premium growth despite broader economic uncertainties.

• No changes to critical accounting policies or business strategy were reported.