Amerisafe Q2 gross premiums rise 4.3%, adjusted EPS misses estimates

Reuters
Jul 25
Amerisafe <a href="https://laohu8.com/S/QTWO">Q2</a> gross premiums rise 4.3%, adjusted EPS misses estimates

Overview

  • Amerisafe Q2 gross premiums rise 4.3% yr/yr, driven by 12.8% voluntary premium growth

  • Adjusted EPS for Q2 marginally misses analysts' expectations, per LSEG data

  • Net investment income declines 10.2% due to decreased investable assets

Result Drivers

  • VOLUNTARY PREMIUM GROWTH - Voluntary premiums on policies written increased 12.8%, driven by stable policy retention and robust new business production

  • LOSS RATIO IMPROVEMENT - Favorable net loss reserve development for prior accident years reduced loss and loss adjustment expenses by $8.6 mln, improving the loss ratio to 58.6%

  • UNDERWRITING EXPENSES - Underwriting expense ratio rose to 31.3% due to higher insurance-based assessments and sustained business investment

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Gross Premiums

$79.70 mln

Q2 Adjusted EPS

Miss

$0.53

$0.54 (4 Analysts)

Q2 EPS

$0.73

Q2 Net Income

$13.96 mln

Q2 Combined Ratio

91.7%

Q2 Underwriting Profit

$5.74 mln

Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "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 $54.00, about 18.5% above its July 23 closing price of $44.00

  • The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 23 three months ago

Press Release: ID:nBw8rDKXka

(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.)

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