AMERISAFE, Inc. (NASDAQ: AMSF) reported fourth‑quarter and full‑year 2025 results on February 26, 2026. Total revenue reached $81.6 million, up 10.2% year‑over‑year, while net income was $13.8 million. Earnings per share were $0.51, missing the consensus estimate of $0.57 by $0.06.
Revenue growth was driven by a 10.2% increase in premium earnings, reflecting stronger demand in the company’s high‑hazard workers’ compensation portfolio. Gross premiums written for the quarter were $70.055 million, up 7.2% from the prior year, underscoring continued expansion in core segments.
Profitability was pressured by a rise in loss severity. The accident‑year loss ratio climbed to 72.0%, up from 71.0% in the first three quarters, while the annual combined ratio remained at 91.3%. The higher loss ratio was attributed to an increase in large, $1 million+ claims, which grew to 17 year‑to‑date from 13 the previous year.
Capital allocation remained aggressive. The board raised the quarterly dividend from $0.39 to $0.41 per share, a 5.1% increase. Share repurchases totaled 197,672 shares at an average price of $40.27, amounting to $8.0 million in the quarter and $12.1 million for the year, reflecting confidence in the company’s valuation.
Management emphasized the company’s focus on profitable underwriting. "The AMERISAFE team has successfully grown premium over the last seven quarters, despite the headwinds of rate declines and heavy competition," said President and CEO G. Janelle Frost. "Countering the growth, higher‑than‑anticipated loss severity emerged in the fourth quarter; as such, we increased our current accident year loss ratio to 72.0% from 71.0% estimated through the first three quarters of 2025. We maintained a strong annual combined ratio of 91.3% and return on average equity of 18.5%." Frost added, "Through both hard and soft markets, we remain squarely focused on profitable underwriting through excellent safety services, diligent risk selection, appropriate product pricing, and personalized claims management."
Investors reacted to the earnings miss and the elevated loss ratio, which tempered enthusiasm for the company’s growth trajectory. The EPS miss and higher loss severity were cited as key factors influencing market sentiment.
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