Why Is Amerisafe (AMSF) Up 2.4% Since Last Earnings Report?

Core Viewpoint - Amerisafe's recent earnings report indicates a mixed performance with adjusted earnings per share meeting estimates but showing a year-over-year decline, while operating revenues improved slightly but missed consensus expectations [2][4]. Financial Performance - Adjusted earnings per share for Q3 2025 were 55 cents, matching the Zacks Consensus Estimate, but down 5.2% from the previous year [2]. - Operating revenues increased by 4% year over year to $78 million, although this was 0.5% below the consensus estimate [2]. - Net premiums earned rose 6.2% year over year to $71.2 million, driven by strong policy retention and new business growth, but fell short of the Zacks Consensus Estimate of $72 million [4]. - Net investment income decreased by 12.3% year over year to $6.6 million due to reduced investable assets following a special dividend [4]. - Total expenses increased by 5.9% year over year to $64.5 million, attributed to higher loss and adjustment expenses [5]. Underwriting and Ratios - The net combined ratio improved by 30 basis points to 90.6%, meeting the consensus mark, supported by better underwriting expense ratios [6]. - Pre-tax underwriting profit was reported at $6.7 million, reflecting a 9.1% year-over-year increase [5]. Financial Position - As of September 30, 2025, cash and cash equivalents stood at $54.7 million, up 24.3% from the end of 2024 [7]. - Total assets reached $1.2 billion, a slight increase of 0.6% from the end of 2024 [7]. - Shareholders' equity decreased by 6.8% to $274.8 million, with book value per share at $14.47, down 12.3% year over year [7]. Capital Management - Amerisafe repurchased common shares worth $1.3 million in Q3 2025, with a remaining repurchase capacity of $24.9 million [8]. - The company announced a quarterly cash dividend of 39 cents per share and a special cash dividend of $1.00 per share, both payable on December 12, 2025 [9]. Market Outlook - Estimates for Amerisafe have trended downward over the past month, indicating a potential shift in market sentiment [10][12]. - The company holds a Zacks Rank 3 (Hold), suggesting an expectation of in-line returns in the coming months [12]. Industry Comparison - Amerisafe operates within the Zacks Insurance - Accident and Health industry, where competitor Globe Life reported a revenue increase of 4.1% year over year, with an EPS of $4.81 compared to $3.49 a year ago [13].