AMERISAFE's Q4 Earnings Beat on Higher Premiums Earned

Core Viewpoint - AMERISAFE, Inc. reported mixed financial results for the fourth quarter and full year of 2024, with adjusted earnings per share beating estimates but overall revenues and net income declining year over year [1][3]. Group 1: Fourth Quarter Performance - Adjusted EPS for Q4 was 67 cents, exceeding the Zacks Consensus Estimate by 11.7%, but down 9.5% from the previous year [1]. - Operating revenues decreased by 0.5% year over year to $73.5 million, missing the consensus mark by 4.9% [1]. - Net premiums earned rose by 1.2% year over year to $66.5 million but fell short of estimates by 4.6% [4]. - Net investment income dropped 14.4% year over year to $6.9 million due to reduced investable assets [4]. - Total expenses increased to $57.3 million in Q4, up from $56.2 million a year ago [5]. - The net combined ratio worsened by 60 basis points year over year to 86.1%, although it was better than the consensus estimate of 90.95% [5]. Group 2: Full-Year Performance - Full-year operating revenues were $300.1 million, slightly up from $299 million the previous year [3]. - Total expenses rose to $240 million from $229.5 million in the prior year [3]. - Operating earnings per share decreased to $2.53 from $2.91 year over year [3]. - Net income fell to $55.4 million from $62.1 million a year ago [3]. - Pre-tax underwriting profit declined by 18.6% year over year to $30.6 million [3]. Group 3: Financial Position - As of December 31, 2024, cash and cash equivalents increased to $44 million from $38.7 million at the end of 2023 [6]. - Total assets decreased to $1.16 billion from $1.23 billion at the end of 2023 [6]. - Shareholders' equity fell to $257.3 million from $292.5 million at the end of 2023 [6]. - Book value per share increased by 11.6% to $13.51 as of December 31, 2024 [6]. Group 4: Return on Equity and Capital Deployment - Return on average equity decreased by 590 basis points year over year to 18.5% in Q4 [7]. - A quarterly cash dividend of 39 cents per share was announced, reflecting a 5.4% increase, to be paid on March 21, 2025 [8].