AMERISAFE Reports 11.4% Net Premiums Earned Growth and Strong Q2 2026 Results with Rising Dividends and Shareholder Returns 12521

AMERISAFE Reports Q2 2026 Results: Premium Growth, Robust Returns, and Capital Actions

Key Highlights from the Second Quarter 2026 Results

11.4% Growth in Net Premiums Earned: AMERISAFE, Inc. (Nasdaq: AMSF) delivered its ninth consecutive quarter of top-line growth, with net premiums earned rising to \$77.3 million from \$69.4 million in Q2 2025.
Return on Average Equity (ROAE): Reached 23.5% for the quarter and 18.1% for the first half of 2026, demonstrating strong profitability and efficient capital deployment.
Net Income: Increased to \$14.6 million from \$14.0 million year-over-year, a 4.6% increase. Diluted EPS rose to \$0.78 from \$0.73 (+6.8%).
Operating Net Income and EPS Decline: Operating net income fell to \$8.3 million from \$10.0 million (-17.9%), with operating EPS down to \$0.44 from \$0.53 (-17.0%), primarily due to lower underwriting profits and investment income.
Book Value Per Share: Decreased to \$13.49 from \$13.96 (-3.4%), attributed to capital returns via dividends and share repurchases.
Capital Management:
- Q2 dividend increased 5.1% to \$0.41 per share.
- 184,093 shares repurchased at \$30.58 per share (\$5.6 million total).
- \$7.3 million remaining under share repurchase authorization.
Investment Portfolio: \$770.7 million in carrying value (including cash/cash equivalents) as of June 30, 2026.
Net Combined Ratio: 95.4% for Q2 2026, up from 91.7% in Q2 2025, pointing to increased claims and expenses.

Detailed Financial Performance

Premiums and Revenue

Gross Premiums Written: Rose 7.9% year-over-year to \$86.0 million in Q2 2026. For the first half of 2026, gross premiums were \$174.5 million (+6.7%).
Net Premiums Written: \$81.8 million in Q2 2026, up from \$75.5 million.
Net Premiums Earned: \$77.3 million, up 11.4% from \$69.4 million.
Total Revenues: \$92.0 million in Q2 2026, compared to \$81.1 million in Q2 2025, driven by premium growth and higher unrealized investment gains.

Claims, Expenses, and Underwriting

Loss and Loss Adjustment Expenses: \$48.3 million, up 18.9% from \$40.7 million, driven largely by higher claim volumes and less favorable prior-year reserve development.
Underwriting and Operating Costs: \$24.6 million, up 13.1% from \$21.7 million, due to higher write-offs that are not expected to recur.
Policyholder Dividends: \$0.8 million, down 38.1% from \$1.2 million, reflecting lower dividend obligations.
Underwriting Profit: Fell sharply to \$3.6 million (down 37.9% from \$5.7 million), as claims and expenses outpaced premium growth.
Net Combined Ratio: Increased to 95.4% from 91.7%, indicating higher claims and expenses relative to premiums. This could be a concern for future profitability if the trend is not reversed.
Net Loss Ratio: Rose to 62.6% from 58.6%, reflecting higher claims costs.
Net Underwriting Expense Ratio: 31.8%, up from 31.3%.

Investment Income

Net Investment Income: \$6.5 million, down 2.4% year-over-year, due to lower investable assets as a result of capital returns.
Unrealized Gains on Equity Securities: \$8.1 million, a major improvement from \$1.8 million in Q2 2025, reflecting strong equity markets.
Pre-tax Investment Yield: 3.4% (up from 3.3%). Tax-equivalent yield was 3.9%.

Capital Actions and Shareholder Returns

Dividend: The Board declared a \$0.41 per share quarterly cash dividend (payable September 25, 2026), representing a 5.1% year-over-year increase.
Share Repurchases: 184,093 shares were repurchased at an average price of \$30.58 per share (\$5.6 million). Since program inception, 2.28 million shares have been repurchased at an average price of \$28.01 per share, totaling \$63.8 million. \$7.3 million remains under the authorization.
Book Value Per Share: At quarter-end, book value per share was \$13.49, up 0.7% from December 31, 2025, but down from Q2 2025 due to capital returns to shareholders.

Operational Insights

Renewal Book Strength: Voluntary premiums on policies written in the quarter rose 5.7% due to strong policy and premium retention.
Payroll Audits: Payroll audits and premium adjustments contributed \$4.1 million to premiums written, up from \$1.5 million a year ago.
Favorable Reserve Development: The quarter benefited from \$7.3 million in favorable case reserve development from accident years 2023 and prior, though this was less than the \$8.6 million benefit in Q2 2025.
Tax Rate: The effective tax rate remained unchanged at 20.1%.

Forward-Looking Statements and Risks

Management reiterated its focus on underwriting discipline, pricing adequacy, and capital management to support long-term value creation.
While premium growth and ROE remain strong, the rising combined ratio and declining operating profits highlight the importance of monitoring claims trends and expense management.
Share repurchase activity and dividend growth continue to be key elements of shareholder return, but also reduce book value and investable assets.
AMERISAFE cautions that forward-looking statements are based on current estimates and actual results may differ due to competitive, economic, and regulatory factors.

Conference Call Information

AMERISAFE will host a conference call on July 22, 2026, at 10:30 a.m. Eastern Time to discuss these results. Investors can join by dialing 786-297-8744 (Conference Code: 9523038) or via the “Investor Relations” section of the company’s website.

About AMERISAFE

AMERISAFE, Inc. specializes in workers’ compensation insurance for small to mid-sized employers in hazardous industries such as construction, trucking, logging, agriculture, services, manufacturing, and maritime, operating in 27 states.

Potential Share Price Impacts

Positive: Strong premium growth, consistent capital returns (dividends and buybacks), robust ROE, and healthy investment gains could support the share price.
Negative: Rising combined ratio, declining operating earnings, and lower book value per share may raise concerns about profitability and future capital flexibility.
Shareholder Actions: The increase in dividends and ongoing repurchases are likely to be well received, but the sustainability of these returns will depend on future underwriting and investment performance.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should review the full company filings and consult with their financial advisors before making investment decisions. All forward-looking statements are subject to risks and uncertainties as outlined in AMERISAFE’s filings with the SEC.