AMERISAFE, Inc.

AMERISAFE reported second-quarter 2026 net income of $14.6 million, or $0.78 per diluted share, versus $14.0 million, or $0.73 per diluted share, in the prior-year quarter. Operating net income was $8.3 million, or $0.44 per diluted share, versus $10.0 million, or $0.53 per diluted share, a year ago. Gross written premiums increased 7.9% to $86.0 million from $79.7 million, and net premiums earned increased 11.4% to $77.3 million from $69.4 million. Total underwriting and other expenses were $24.6 million versus $21.7 million, with an expense ratio of 31.8% compared with 31.3%. Net investment income was $6.5 million, down 2.4% year over year. The current accident year loss ratio remained 72%, and the company recognized $7.3 million of favorable reserve development. At quarter end, AMERISAFE held about $771 million in investments, cash and cash equivalents, book value per share was $13.49, and statutory surplus was $200.8 million. Management did not provide formal next-quarter or full-year financial guidance on the call; instead, it reiterated a focus on profitable growth and said it still feels good about sustaining a mid-single-digit growth trajectory.

CEO Janelle Frost said AMERISAFE’s specialized underwriting in high-hazard workers’ comp continues to differentiate the company even as the market gradually softens. She highlighted strong renewal retention, healthy payroll growth among insureds, and robust audit activity as signs the core business is still performing well. Her tone was confident but cautious, emphasizing profitable growth, underwriting discipline, capital strength, and long-term shareholder value rather than chasing volume.

CFO Guillermo Ramos emphasized that earnings remained solid despite higher expenses and lower investment income. He cited the $14.6 million net income figure, 11.4% growth in net premiums earned to $77.3 million, and a 31.8% expense ratio, noting the increase was driven by one-time items that he does not expect to recur; the bad-debt write-off was approximately $700,000. He also pointed to a conservative balance sheet with $771 million in investments, cash and cash equivalents, a 4.2-year duration, AA- average credit quality, and $5.6 million of unrealized losses on held-to-maturity securities, while noting the company repurchased about 181,000 shares for $5.6 million.

Analysts focused on competition, audit activity, medical inflation, and the implications of California’s recent rate actions. Management said competition is intense and has become a bit more aggressive among regular competitors, especially package carriers, but reiterated that the company’s strategy has not changed: stay selective, work with the right agencies, and prioritize profitable growth over pure volume. On audit activity, management said payroll growth of roughly 4.5% to 4.7% was supportive and that stronger wage inflation should help future audit premiums, while medical inflation and higher severities remain a real industry pressure point. On rates, management said California’s 10% advisory increase partly reflects California-specific issues but also broader medical-cost pressure, and that 2027 filings still look like continued reductions, though maybe at a slightly slower pace.