AMERISAFE Reports 3.1% Increase in Gross Premiums for Fiscal Year 2024

AMERISAFE, Inc. reported a solid financial performance for the fiscal year ending December 31, 2024, with gross premiums written reaching $294.1 million, a 3.1% increase from $285.4 million in 2023. The company's net premiums earned also saw a modest rise, totaling $270.6 million compared to $267.1 million in the previous year. However, net income decreased to $55.4 million, down from $62.1 million in 2023, reflecting a net income per share of $2.91, compared to $3.24 in the prior year. The decline in profitability was attributed to increased loss and loss adjustment expenses, which rose to $157.3 million from $148.3 million in 2023.

The company experienced favorable development in its loss reserves, with a reduction of $34.9 million in prior accident year reserves, compared to $41.4 million in 2023. This favorable development was primarily driven by lower-than-expected severity of injuries and effective claims management practices. As of December 31, 2024, AMERISAFE's reserves for loss and loss adjustment expenses stood at $651.3 million, a decrease from $674.0 million in 2023. The company reported a net loss ratio of 58.1% for 2024, up from 55.5% in 2023, indicating a slight increase in claims relative to earned premiums.

Strategically, AMERISAFE continues to focus on small to mid-sized employers in hazardous industries, including construction and trucking. The company has maintained a strong policy renewal rate of 94.2% for voluntary business, reflecting its commitment to customer retention. AMERISAFE operates in 27 states and is licensed in an additional 20 states, the District of Columbia, and the U.S. Virgin Islands, indicating a broad geographic footprint. The company also reported a total of 9,300 voluntary business policyholders as of December 31, 2024.

In terms of operational metrics, AMERISAFE's employee headcount was 362 full-time employees and 8 part-time employees as of the end of 2024. The company has emphasized the importance of its workforce, with 61% of employees being female and a significant portion of leadership positions held by women. The company’s proactive approach to safety and claims management has contributed to its competitive advantage in the workers' compensation insurance market.

Looking ahead, AMERISAFE aims to maintain underwriting profitability and increase market penetration in its existing states. The company plans to leverage its specialized underwriting expertise and comprehensive safety services to enhance its market share. However, it acknowledges the cyclical nature of the workers' compensation insurance industry and the potential impact of economic conditions on its operations. The company remains committed to managing its capital effectively and optimizing its reinsurance strategies to support future growth.