Workers’ compensation specialist Amerisafe Inc has announced a decline in net income for the second quarter, reporting a decrease of 29.7% to $11 million.
The specialty workers' compensation insurer attributed the drop in part to changes in investment results.
According to AM Best, the company saw a 4.6% increase in net premiums earned, totaling $68.6 million. However, the combined ratio worsened to 90.5, up from 85.4 in the same quarter last year. This increase was due to higher loss ratios.
Voluntary premiums on policies written during the quarter were 2.7% higher compared to the second quarter of 2023. This growth was driven by an increase in policy count and strong retention, despite ongoing declines in approved loss costs.
Amerisafe reported pretax net realized losses on investments of $117,000 for the quarter, compared to a gain of $75,000 in the prior-year period. Additionally, the company experienced pretax net unrealized losses on equity securities of $58,000, compared to a gain of $2 million in the same quarter of the previous year.
President and CEO G. Janelle Frost (pictured above) noted that new business generation, combined with strong retention and increased audit premiums, contributed to growth. This was further supported by favorable loss development from prior accident years.
Amerisafe Inc's underwriting entities currently hold a Best’s financial strength rating of A (Excellent). Shares of Amerisafe Inc. (NASDAQ: AMSF) closed at $49.68 on July 29, down 1.86% from the previous day's close.
In other news in the workers’ comp space, Insurance Commissioner Ricardo Lara has recently requested the Workers’ Compensation Insurance Rating Bureau (WCIRB) to conduct an in-depth study and gather data on silicosis claims over the past decade.
The initiative is aimed at a better understanding of the ramifications of the occupational disease to ensure that impacted workers receive their rightful benefits.
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