Overview

• US workers' comp insurer's Q2 net premiums earned rose 11.4% yr/yr

• Adjusted EPS for Q2 missed analyst expectations

• Company repurchased $5.6 mln in shares during the quarter

Outlook

• Company did not provide specific guidance for the current quarter or full year

Result Drivers

• PREMIUM GROWTH - Co said net premiums earned rose due to strong policy and premium retention in renewals and higher payroll audit adjustments

• HIGHER CLAIMS COSTS - Loss and loss adjustment expenses benefited from $7.3 million of favorable case reserve development on accident years 2023 and prior

• LOWER INVESTMENT INCOME - Net investment income declined due to lower average investable assets, as capital was returned to shareholders

Company press release: ID:nBw51VPr9a

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 Gross Premiums		$85.97 mln
Q2 Adjusted EPS	Miss	$0.44	$0.52 (4 Analysts)
Q2 EPS		$0.78
Q2 Net Income		$14.60 mln
Q2 Combined Ratio		95.40%
Q2 Underwriting Profit		$3.56 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 $36.71, about 7.1% above its July 20 closing price of $34.29

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 15 three months ago

Reuters Recommended Reads

• July 20 - W. R. Berkley second-quarter profit rises on strong underwriting

• July 20 - US insurance buyers see relief in property, cyber but casualty costs keep climbing: Alliant

• July 21 - Marsh quarterly profit rises on strength in risk management business

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