AMERISAFE (AMSF) Q4 2025 earnings summary

Executive summary

• Achieved strong ROE of 18.5% and a combined ratio of 91.3% for 2025, despite a prolonged soft market and 12 years of rate declines in workers' compensation.

• Voluntary premiums and policy count grew 10.2% year-over-year, with premium growth achieved despite rate declines and increased competition.

• Net income for 2025 was $47.1 million, down 15% from 2024, with diluted EPS of $2.47, a 14.5% decrease.

• Specialized underwriting, safety services, and disciplined claims management drove consistent returns and incremental growth.

Financial highlights

• Gross premium written (GPW) grew 11.7% in Q4 2025 and 6.7% for the full year to $313.9 million; voluntary premium up 10.5% in Q4 and 10.2% for the year.

• Net premiums earned were $73.6M in Q4 (up 10.7% YoY) and $283.1M for the year (up 4.6%).

• Net income was $10.4M ($0.55/diluted share) in Q4 and $47.1M for the year; net operating income was $9.8M in Q4 and $41.8M for the year.

• Net investment income rose 2.5% to $77.1M in Q4 but fell 7.6% to $27M for the year.

• Underwriting profit fell 19.5% to $24.6 million.

Outlook and guidance

• Rate declines are expected to continue in the negative mid-single-digit range for 2026.

• Loss ratio for 2026 is expected to remain at 72% due to ongoing pressure from loss costs and claim severity.

• Growth momentum is considered sustainable due to improved agency relationships and operational execution.

• Management remains focused on profitable underwriting, safety services, and diligent risk selection.

• The Board increased the regular quarterly cash dividend by 5.1% to $0.41 per share, payable March 20, 2026.