AMERISAFE Reports Q2 2025 Net Income of $13.96 Million, Revenue Growth to $81.09 Million

AMERISAFE, Inc. reported its financial results for the second quarter and first half of 2025, showing a net income of $13.96 million for the three months ended June 30, 2025, compared to $10.99 million for the same period in 2024. This translates to earnings per share of $0.73, up from $0.58 a year earlier. For the first six months of 2025, net income was $22.90 million, down from $27.92 million in the same period of 2024. The company’s total revenues for the second quarter increased to $81.09 million from $75.83 million year-over-year, driven by a 4.3% rise in gross premiums written, which reached $79.70 million.

In terms of operational metrics, AMERISAFE's net premiums earned for the second quarter were $69.38 million, a slight increase from $68.63 million in the prior year. The company also reported net investment income of $6.69 million, down from $7.45 million in the same quarter of 2024, attributed to lower average invested asset balances. The net combined ratio for the quarter was 91.7%, indicating a slight deterioration from 90.5% in the previous year, while the return on average equity improved to 21.2% from 14.6%.

AMERISAFE's total assets as of June 30, 2025, were $1.155 billion, a marginal decrease from $1.158 billion at the end of 2024. The company’s liabilities also decreased to $889.54 million from $900.45 million, primarily due to a reduction in reserves for loss and loss adjustment expenses, which fell to $624.10 million from $651.31 million. The company reported favorable development in prior accident years, contributing to a reduction in loss reserves.

Strategically, AMERISAFE continues to focus on its core business of providing workers' compensation insurance to small and mid-sized employers in hazardous industries. The company is actively marketing its services in 27 states and is licensed in an additional 20 states, the District of Columbia, and the U.S. Virgin Islands. The company has also reauthorized its share repurchase program, allowing for the repurchase of up to $25 million of its common stock, reflecting its commitment to returning value to shareholders.

Looking ahead, AMERISAFE remains cautious about market conditions, including the cyclical nature of the workers' compensation insurance industry and potential economic fluctuations. The company has indicated that it will continue to monitor its underwriting practices and claims management strategies to adapt to changing market dynamics.