AMERISAFE(US:AMSF) ZACKS·2025-05-07 17:40Core Viewpoint - AMERISAFE, Inc. (AMSF) experienced a 5.5% decline in share price following the release of its first-quarter 2025 results, primarily due to decreased net investment income, weaker underwriting results, and elevated expenses impacting margins, although strong retention rates and new business growth provided some offset [1] Financial Performance - AMSF reported adjusted earnings per share of 60 cents, exceeding the Zacks Consensus Estimate by 1.7%, but reflecting a 13% year-over-year decline [2] - Operating revenues remained flat at $76 million year-over-year, falling short of the consensus estimate by 1.4% [2] - Net premiums earned increased by 0.6% year-over-year to $68.9 million, but were below the Zacks Consensus Estimate of $69.8 million, supported by strong retention rates and new business growth [3] - Net investment income decreased by 9.7% year-over-year to $6.7 million, missing the consensus mark of $6.9 million, attributed to reduced investable assets from a special dividend paid in the prior quarter [3] - Fee and other income surged by 70.7% year-over-year [3] - Pre-tax underwriting profit fell by 13.7% year-over-year to $7.5 million [4] - Total expenses rose by 2.7% year-over-year to $61.4 million, driven by higher loss and loss adjustment expenses and increased underwriting and operating costs [4] - Operating net income decreased by 14.2% year-over-year to $11.4 million [4] Ratios and Metrics - The net combined ratio was 89.1%, worsening by 180 basis points year-over-year but better than the consensus estimate of 91% [5] - Return on average equity declined by 900 basis points year-over-year to 13.8% [6] Capital Deployment - Management announced a quarterly cash dividend of 39 cents per share, scheduled for payment on June 20, 2025, to shareholders of record as of June 13 [7] Industry Comparison - Other insurers such as Arch Capital Group, RLI Corp., and Kinsale Capital Group reported better-than-expected bottom-line results in the same quarter [9]