Overview

• Workers’ compensation insurance company Amerisafe's Q3 gross premiums rise 7.2% yr/yr

• Adjusted EPS for Q3 misses analyst expectations

• Net investment income for Q3 falls 12.3% yr/yr due to decreased investable assets

Outlook

• Company did not provide specific future financial guidance

Result Drivers

• VOLUNTARY PREMIUMS - Voluntary premiums on policies written increased 10.6%, driven by strong policy retention and new business production

• UNDERWRITING EXPENSES - Underwriting expense ratio improved to 31.1% from 31.7%, reflecting benefits of scale from portfolio growth

• INVESTMENT INCOME DECLINE - Net investment income decreased 12.3% due to decreased investable assets following a special dividend

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the property & casualty insurance peer group is "buy."

• Wall Street's median 12-month price target for Amerisafe Inc is $50.00, about 18.8% above its October 28 closing price of $40.60

• The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 20 three months ago

Press Release: ID:nBw3CHfZJa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)