Reports $62.1 Million of Net Income, Return
on Equity of 20.4% and
Net Combined Ratio of 85.9% in 2023
AMERISAFE, Inc. (Nasdaq: AMSF), a specialty provider of
workers’ compensation insurance focused on high-hazard industries,
today announced results for the fourth quarter and year ended
December 31, 2023.
Three Months Ended Twelve Months Ended December
31, December 31,
2023
2022
% Change
2023
2022
% Change (in thousands, except per share data) (in
thousands, except per share data) Net premiums earned
$
65,712
$
66,073
-0.5
%
$
267,125
$
271,698
-1.7
%
Net investment income
8,077
7,642
5.7
%
31,339
27,223
15.1
%
Net realized gains on investments (pre-tax)
1,113
1,038
7.2
%
6,579
3,440
91.3
%
Net unrealized gain (losses) on equity securities (pre-tax)
5,120
4,892
NM
1,228
(8,092
)
NM
Net income
19,181
20,778
-7.7
%
62,108
55,602
11.7
%
Diluted earnings per share
$
1.00
$
1.08
-7.4
%
$
3.23
$
2.88
12.2
%
Operating net income
14,257
16,093
-11.4
%
55,940
59,277
-5.6
%
Operating earnings per share
$
0.74
$
0.84
-11.9
%
$
2.91
$
3.07
-5.2
%
Book value per share
$
15.28
$
16.57
-7.8
%
$
15.28
$
16.57
-7.8
%
Net combined ratio
85.5
%
82.0
%
85.9
%
83.6
%
Return on average equity
24.4
%
24.1
%
20.4
%
15.5
%
G. Janelle Frost, President and Chief Executive Officer,
commented: “AMERISAFE’s value proposition to our policyholders,
agents, and shareholders rests on our service and delivering on our
commitments to them. The Company collaborates closely with insured
parties to assess risks, bolster safety measures, and meticulously
handle claims to achieve optimal results. The Company’s disciplined
approach resulted in gross premium written growth of 8.4% and a
combined ratio of 85.5% for the fourth quarter, and a 20.4% ROAE
for the full year. Our capital strength and approach to the
high-hazard workers’ compensation market position AMERISAFE for
solid performance and ability to create long-term shareholder value
into the future.”
INSURANCE RESULTS
Three Months Ended Twelve Months Ended December
31, December 31,
2023
2022
% Change
2023
2022
% Change (in thousands) (in thousands)
Gross premiums written
$
60,324
$
55,647
8.4
%
$
285,355
$
276,110
3.3
%
Net premiums earned
65,712
66,073
-0.5
%
267,125
271,698
-1.7
%
Loss and loss adjustment expenses incurred
36,455
36,524
-0.2
%
148,263
152,316
-2.7
%
Underwriting and certain other operating costs, commissions,
salaries and benefits
18,988
17,421
9.0
%
78,313
72,032
8.7
%
Policyholder dividends
732
182
302.2
%
2,957
2,699
9.6
%
Underwriting profit (pre-tax)
$
9,537
$
11,946
-20.2
%
$
37,592
$
44,651
-15.8
%
Insurance Ratios: Current accident year loss ratio
71.0
%
71.0
%
71.0
%
71.0
%
Prior accident year loss ratio
-15.5
%
-15.7
%
-15.5
%
-14.9
%
Net loss ratio
55.5
%
55.3
%
55.5
%
56.1
%
Net underwriting expense ratio
28.9
%
26.4
%
29.3
%
26.5
%
Net dividend ratio
1.1
%
0.3
%
1.1
%
1.0
%
Net combined ratio
85.5
%
82.0
%
85.9
%
83.6
%
- Voluntary premiums on policies written in the quarter were 4.7%
higher than in the fourth quarter of 2022, primarily due to an
increase in policy count partially offset by continued declines in
approved loss costs. For the full year, voluntary premiums
increased by 0.3%.
- Payroll audits and related premium adjustments increased
premiums written by $4.8 million in the fourth quarter of 2023,
compared to an increase of $2.3 million in the fourth quarter of
2022. For the full year 2023, audits and related premium
adjustments increased premiums by $24.0 million, compared to an
increase of $14.0 million in 2022.
- The loss ratio for both the fourth quarter and full year was
55.5%. During the quarter, the Company experienced favorable net
loss reserve development for prior accident years, which reduced
loss and loss adjustment expenses by $10.2 million, primarily from
accident years 2018 through 2021. For the full year, the Company
experienced favorable development on prior accident years of $41.4
million, compared with $40.6 million in 2022. The Company
attributes its lower claim severities for prior years to proactive
claims handling.
- For the quarter that ended December 31, 2023, the underwriting
expense ratio was 28.9% compared with 26.4% in the same quarter in
2022, as a result of slightly lower earned premium and increased
insurance related assessments. For the year ended December 31,
2023, the underwriting expense ratio was 29.3%, compared with 26.5%
in 2022, largely due to slightly lower earned premium and increased
insurance related assessments.
- The effective tax rate for the full year 2023 was 19.7%
compared with 17.8% for 2022. The rate was slightly higher than
last year due to a decrease in the proportion of tax-exempt
interest income relative to taxable interest income and
underwriting profit.
INVESTMENT RESULTS
Three Months Ended Twelve Months Ended December
31, December 31,
2023
2022
% Change
2023
2022
% Change (in thousands) (in thousands) Net
investment income
$
8,077
$
7,642
5.7
%
$
31,339
$
27,223
15.1
%
Net realized gains on investments (pre-tax)
1,113
1,038
7.2
%
6,579
3,440
91.3
%
Net unrealized gains (losses) on equity securities (pre-tax)
5,120
4,892
NM
1,228
(8,092
)
NM
Pre-tax investment yield
3.5
%
3.1
%
3.4
%
2.7
%
Tax-equivalent yield (1)
3.7
%
3.4
%
3.7
%
3.4
%
________________________________
(1)
The tax equivalent yield is calculated
using the effective interest rate and the appropriate marginal tax
rate.
- Net investment income for the quarter and full year ended
December 31, 2023, increased 5.7% to $8.1 million and 15.1% to
$31.3 million, respectively, due to higher fixed income
reinvestment rates in relation to portfolio rolloff.
- Net unrealized gains on equity securities were $5.1 million in
the fourth quarter. The full year unrealized gain of $1.2 million
is reflective of favorable equity market returns during the
year.
- As of December 31, 2023, the carrying value of AMERISAFE’s
investment portfolio, including cash and cash equivalents, was
$896.5 million.
CAPITAL MANAGEMENT
During the fourth quarter of 2023, the Company repurchased
46,741 shares at an average cost (including commissions and excise
tax) of $46.45 per share for a total of $2.2 million. The remaining
outstanding share repurchase authorization as of December 31, 2023
is $10.4 million.
In an accompanying announcement, the Company’s Board of
Directors increased the regular quarterly dividend by 8.8% from
$0.34 per share to $0.37 per share, payable on March 22, 2024, to
shareholders of record as of March 8, 2024.
SUPPLEMENTAL INFORMATION
Three Months Ended Twelve Months Ended December
31, December 31,
2023
2022
2023
2022
(in thousands, except share and per share data) Net
income
$
19,181
$
20,778
$
62,108
$
55,602
Less: Net realized gains on investments
1,113
1,038
6,579
3,440
Net unrealized gains (losses) on equity securities
5,120
4,892
1,228
(8,092
)
Tax effect (1)
(1,309
)
(1,245
)
(1,639
)
977
Operating net income (2)
$
14,257
$
16,093
$
55,940
$
59,277
Average shareholders’ equity (3)
$
314,167
$
345,226
$
304,942
$
358,378
Less: Average accumulated other comprehensive loss
(13,779
)
(16,896
)
(10,511
)
(146
)
Average adjusted shareholders’ equity (2)
$
327,946
$
362,122
$
315,453
$
358,524
Diluted weighted average common shares
19,220,250
19,209,279
19,226,021
19,321,717
Return on average equity (4)
24.4
%
24.1
%
20.4
%
15.5
%
Operating return on average adjusted equity (2)
17.4
%
17.8
%
17.7
%
16.5
%
Diluted earnings per share
$
1.00
$
1.08
$
3.23
$
2.88
Operating earnings per share (2)
$
0.74
$
0.84
$
2.91
$
3.07
________________________________
(1)
The tax effect of net realized losses on
investments and net unrealized gains (losses) on equity securities
is calculated with an effective tax rate of 21%.
(2)
Operating net income, average adjusted
shareholders’ equity, operating return on average adjusted equity
and operating earnings per share are non-GAAP financial measures.
Management believes that investors’ understanding of core operating
performance is enhanced by AMERISAFE’s disclosure of these
financial measures.
(3)
Average shareholders’ equity is calculated
by taking the average of the beginning and ending shareholders’
equity for the applicable period.
(4)
Return on average equity is calculated by
dividing the annualized net income by the average shareholders’
equity.
NON-GAAP FINANCIAL MEASURES
This release contains non-GAAP financial measures within the
meaning of Regulation G promulgated by the U.S. Securities and
Exchange Commission (the SEC) and includes a reconciliation of
non-GAAP financial measures to the most directly comparable
financial measures calculated in accordance with GAAP in the
Supplemental Information in this release.
Management believes that investors’ understanding of core
operating performance is enhanced by AMERISAFE’s disclosure of
these financial measures which include operating net income,
average adjusted shareholders’ equity, operating return on average
adjusted equity and operating earnings per share.
CONFERENCE CALL INFORMATION
AMERISAFE has scheduled a conference call for February 22, 2024,
at 10:30 a.m. Eastern Time to discuss the results for the quarter
and comment on future periods. To participate in the conference
call, dial 323-794-2423 (Conference Code 9182860) at least ten
minutes before the call begins.
Investors, analysts and the general public will also have the
opportunity to listen to the conference call over the Internet by
visiting the “Investor Relations Home” page of the “Investors”
section of the Company’s website (http://www.amerisafe.com). To
listen to the live call on the web, please visit the website at
least fifteen minutes before the call begins to register, download
and install any necessary audio software. For those who cannot
listen to the live webcast, an archive will be available shortly
after the call at the same website location.
ABOUT AMERISAFE
AMERISAFE, Inc. is a specialty provider of workers’ compensation
insurance focused on small to mid-sized employers engaged in
hazardous industries, principally construction, trucking, logging
and lumber, agriculture, and manufacturing. AMERISAFE actively
markets workers’ compensation insurance in 27 states.
FORWARD LOOKING STATEMENTS
Statements made in this press release that are not historical
facts, including statements accompanied by words such as “will,”
“believe,” “anticipate,” “expect,” “estimate,” or similar words are
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 regarding AMERISAFE’s
plans and performance. These statements are based on management’s
estimates, assumptions and projections as of the date of this
release and are not guarantees of future performance and include
statements regarding management’s views and expectations of the
workers’ compensation market, the Company’s growth opportunities,
underwriting margins and actions by competitors. Actual results may
differ materially from the results expressed or implied in these
statements if the underlying assumptions prove to be incorrect or
as the results of risks, uncertainties and other factors on the
business and operations of the Company and our policyholders and
the market value of our investment portfolio. Additional factors
that may affect our results are set forth in the Company’s filings
with the Securities and Exchange Commission, including AMERISAFE’s
Annual Report on Form 10-K. AMERISAFE cautions you not to place
undue reliance on the forward-looking statements contained in this
release. AMERISAFE does not undertake any obligation to publicly
update or revise any forward-looking statements to reflect future
events, information or circumstances that arise after the date of
this release.
AMERISAFE, INC. AND
SUBSIDIARIES
Consolidated Statements of
Income
(in thousands, except per
share amounts)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2023
2022
2023
2022
(unaudited) (unaudited) Revenues: Gross
premiums written
$
60,324
$
55,647
$
285,355
$
276,110
Ceded premiums written
(4,365
)
(2,690
)
(16,621
)
(10,527
)
Net premiums written
$
55,959
$
52,957
$
268,734
$
265,583
Net premiums earned
$
65,712
$
66,073
$
267,125
$
271,698
Net investment income
8,077
7,642
31,339
27,223
Net realized gains on investments
1,113
1,038
6,579
3,440
Net unrealized gains (losses) on equity securities
5,120
4,892
1,228
(8,092
)
Fee and other income
94
116
582
468
Total revenues
80,116
79,761
306,853
294,737
Expenses: Loss and loss adjustment expenses incurred
36,455
36,524
148,263
152,316
Underwriting and other operating costs
18,988
17,421
78,313
72,032
Policyholder dividends
732
182
2,957
2,699
Provision for investment related credit loss expense (benefit)
(6
)
(16
)
(57
)
44
Total expenses
56,169
54,111
229,476
227,091
Income before taxes
23,947
25,650
77,377
67,646
Income tax expense
4,766
4,872
15,269
12,044
Net income
$
19,181
$
20,778
$
62,108
$
55,602
Three Months Ended Twelve Months Ended
December 31, December 31,
2023
2022
2023
2022
(unaudited) (unaudited) Basic
EPS: Net income
$
19,181
$
20,778
$
62,108
$
55,602
Basic weighted average common shares
19,159,911
19,131,271
19,149,080
19,233,241
Basic earnings per share
$
1.00
$
1.09
$
3.24
$
2.89
Diluted EPS: Net income
$
19,181
$
20,778
$
62,108
$
55,602
Diluted weighted average common shares: Weighted average
common shares
19,159,911
19,131,271
19,149,080
19,233,241
Restricted stock and RSUs
60,339
78,008
76,941
88,476
Diluted weighted average common shares
19,220,250
19,209,279
19,226,021
19,321,717
Diluted earnings per share
$
1.00
$
1.08
$
3.23
$
2.88
AMERISAFE, INC. AND
SUBSIDIARIES
Consolidated Balance
Sheets
(in thousands)
December 31, December 31,
2023
2022
(unaudited) Assets Investments
$
857,786
$
888,987
Cash and cash equivalents
38,682
61,469
Amounts recoverable from reinsurers
129,963
125,677
Premiums receivable, net
132,861
121,713
Deferred income taxes
20,403
22,794
Deferred policy acquisition costs
17,975
17,401
Other assets
31,492
31,238
$
1,229,162
$
1,269,279
Liabilities and Shareholders’ Equity Liabilities:
Reserves for loss and loss adjustment expenses
$
673,994
$
696,037
Unearned premiums
116,585
114,976
Insurance-related assessments
16,896
17,653
Other liabilities
129,236
123,181
Shareholders’ equity
292,451
317,432
Total liabilities and shareholders’ equity
$
1,229,162
$
1,269,279
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240221323970/en/
Andy Omiridis, EVP & CFO AMERISAFE 337.463.9052
Grafico Azioni AMERISAFE (NASDAQ:AMSF)
Storico
Da Gen 2025 a Feb 2025
Grafico Azioni AMERISAFE (NASDAQ:AMSF)
Storico
Da Feb 2024 a Feb 2025
