AMERISAFE (AMSF) Q3 2025 earnings summary

Executive summary

• Achieved a 20.5% return on average equity and a 90.6% combined ratio for Q3 2025, marking the sixth consecutive quarter of top-line growth, with gross premiums written up 7.2% and voluntary premiums up 10.6% year-over-year.

• Net income for Q3 2025 was $13.8 million ($0.72 per diluted share), down from $14.3 million in Q3 2024, reflecting a 3.5% year-over-year decline.

• Net premiums earned rose 6.2% year-over-year, with broad-based growth supported by an 11% increase in policy count and strong renewal retention at 93.6%.

• Focus remains on high-hazard industries, maintaining underwriting discipline and advancing technology to support long-term shareholder value.

Financial highlights

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

• Net investment income decreased 12.3% to $6.6 million due to lower average investable assets after a special dividend.

• Book value per share was $14.47 at September 30, 2025, down from $16.50 a year earlier but up 7.1% year-to-date; statutory surplus reached $259 million.

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

• Net unrealized gains on equity securities were $4.1 million in Q3 2025, up from $3.9 million in Q3 2024.

Outlook and guidance

• Management expresses confidence in the durability of the current growth strategy, focusing on organic growth, disciplined underwriting, and technology investments.

• 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.

• Forward-looking statements caution that actual results may differ due to market, operational, and regulatory risks.