AMERISAFE(US:AMSF)2025-04-30 20:01Financial Performance - Gross premiums written increased to $83,784,000 in Q1 2025, up from $80,074,000 in Q1 2024, representing a growth of 3%[15] - Net premiums written rose to $79,605,000 in Q1 2025, compared to $76,148,000 in Q1 2024, reflecting an increase of 6%[15] - Net income for Q1 2025 was $8,949,000, a decrease of 47% from $16,925,000 in Q1 2024[15] - Total revenues decreased to $72,597,000 in Q1 2025, down from $80,489,000 in Q1 2024, a decline of 10%[15] - Comprehensive income for Q1 2025 was $10,555,000, down from $15,379,000 in Q1 2024, a decrease of 31%[18] - Basic earnings per share (EPS) for Q1 2025 was $0.47, down from $0.89 in Q1 2024, reflecting a 47.2% decline[39] - Diluted EPS for Q1 2025 was $0.47, compared to $0.88 in Q1 2024, indicating a 46.6% decrease[39] - Net investment income decreased by 9.7% to $6.7 million in Q1 2025 from $7.4 million in Q1 2024[103] - The net combined ratio for Q1 2025 was 89.1%, compared to 87.3% in Q1 2024[98] - Return on average equity decreased to 13.8% in Q1 2025 from 22.8% in Q1 2024[98] - Book value per share decreased to $13.69 in Q1 2025 from $15.74 in Q1 2024[98] Cash Flow and Dividends - Cash dividends declared per common share increased to $0.39 in Q1 2025 from $0.37 in Q1 2024, a rise of 5.4%[15] - Net cash provided by operating activities was $(1.792) million for Q1 2025, a significant decline from $7.506 million in Q1 2024[1] - Net cash used in operating activities was $1.8 million in Q1 2025, a decrease of $9.3 million from $7.5 million in Q1 2024[110] - The company paid dividends to shareholders totaling $7.424 million in Q1 2025, compared to $7.075 million in Q1 2024, reflecting a 4.9% increase[1] - The Board declared a regular cash dividend of $0.39 per share on April 29, 2025, payable on June 20, 2025[90] Assets and Liabilities - Total assets as of March 31, 2025, were $1,156,717,000, slightly down from $1,157,791,000 as of December 31, 2024[13] - Total liabilities decreased to $895,904,000 as of March 31, 2025, from $900,450,000 as of December 31, 2024, a reduction of 0.6%[13] - Shareholders' equity increased to $260,813,000 as of March 31, 2025, compared to $257,341,000 as of December 31, 2024, an increase of 1%[13] Claims and Reserves - The net balance for unpaid loss and loss adjustment expenses at the end of March 31, 2025, was $529.464 million, down from $550.580 million at the end of March 31, 2024[60] - The total incurred losses for the current accident year as of March 31, 2025, were $48.908 million, compared to $48.597 million for the same period in 2024[60] - The company recorded favorable prior accident year development of $8.7 million in Q1 2025, compared to $8.6 million in Q1 2024[117] - The total net development for the accident year was $8.7 million for 2025, compared to $8.6 million for 2024[118] - Claims reported during the three months ended March 31, 2025, were 906, slightly up from 900 in the same period of 2024[119] - Claims closed during the same period were 864, down from 1,091 in 2024, indicating a decrease in claim resolution speed[119] - The company does not intend to modify its assumptions for establishing reserves despite recent favorable results in certain accident years[120] - The reserves for loss and loss adjustment expenses may exhibit greater volatility due to the focus on higher severity, lower frequency claims[121] Investments - The carrying value of the investment portfolio was $825.8 million as of March 31, 2025, down 0.8% from $832.8 million at the end of 2024[113] - The total fair value of financial instruments was $370,202,000, with $69,623,000 classified as Level 1 inputs and $300,579,000 as Level 2 inputs[75] - The fair value of securities available-for-sale—fixed maturity totaled $314,726,000, consisting of $14,147,000 in U.S. Treasury securities and $300,579,000 in corporate bonds and other securities[75] - The total fair value of equity securities was $55,476,000 as of March 31, 2025[81] - The company reported a net unrealized gain on equity securities of $3.152 million in Q1 2025, contrasting with a net unrealized loss of $(4.776) million in Q1 2024[1] - The Company recognized $3.2 million of net unrealized losses on equity securities for the three months ended March 31, 2025, compared to $4.8 million of net unrealized gains for the same period in 2024[52] Operational Insights - The Company operates solely within the U.S. as a monoline insurance company, focusing on workers' compensation insurance for small to mid-sized employers[85] - The return on average equity and growth in book value per share are key financial measures used to evaluate performance[86] - There have been no material changes in the company's market risk profile since December 31, 2024[123] - The company continues to evaluate the effectiveness of its disclosure controls and procedures, concluding they were effective as of the end of the reporting period[124] - No changes in internal control over financial reporting have materially affected the company's controls during the reporting period[126]