AMERISAFE (AMSF) Q4 2024 earnings summary

Executive summary

• Gross premiums written increased 3.9% in Q4 and 3.1% for the full year, driven by strong premium retention and new business production.

• Voluntary premiums rose 8.5% in Q4 and 4.6% for the year, with in-force policy count up 9.6% year-over-year.

• Net income for 2024 was $55.4 million, with a return on equity of 20.2% for the year, reflecting strong profitability despite a competitive market.

• Combined ratios were 86.1% for Q4 and 88.7% for the year, driven by disciplined risk selection, pricing, and claims handling.

• Focus on agent relationships and high-hazard risk appetite contributed to growth in a competitive market.

Financial highlights

• Q4 net income was $13.2 million ($0.69 per diluted share), down from $19.2 million in Q4 2023; full-year net income was $55.4 million, down from $62.1 million in 2023.

• Net premiums earned increased 1.3% year-over-year to $270.6 million in 2024; Q4 net premiums earned were $66.5 million, up 1.2%.

• Net investment income declined 6.8% year-over-year to $29.2 million, mainly due to a lower investable asset base after a special dividend.

• Operating net income for 2024 was $48.4 million, down 13.5% year-over-year.

• Book value per share at year-end was $13.51, down 11.6% after special dividend payment.

Outlook and guidance

• Expectation to maintain accident-year loss ratio at 71% in 2025.

• Continued focus on top-line growth and insuring profitable high-hazard risks.

• Audit premium expected to remain positive in 2025, though deceleration is anticipated.

• Management expects continued growth and profitability, emphasizing disciplined underwriting and claims management.