AMSF Falls Short of Q4 Earnings Expectations Even as Premiums Increase, Raises Dividend

AMERISAFE, Inc. Q4 2025 Earnings Overview

AMERISAFE, Inc. (AMSF) posted adjusted earnings of $0.51 per share for the fourth quarter of 2025, falling short of the Zacks Consensus Estimate by 10.5%. This figure also represents a 23.9% decrease compared to the same period last year.

The company’s operating revenue reached $80.75 million, reflecting a 9.8% increase year-over-year and surpassing analyst expectations by 0.6%.

Quarterly results were pressured by higher costs, declining rates, and greater-than-anticipated loss severity. However, these challenges were partially balanced by growth in net premiums earned—supported by strong policy retention and new business—as well as a modest uptick in investment income.

Highlights: Price, Consensus, and EPS Trends

Full-Year 2025 Results

For the entire year, AMERISAFE reported operating earnings of $2.19 per share, a 13.4% drop from the previous year. Operating revenues climbed 3.5% to $310.5 million, while total expenses increased by 7.7% to $258.4 million.

Net income for the year was $47.1 million, down 15% year-over-year. Pre-tax underwriting profit declined 19.5% to $24.6 million.

Fourth Quarter 2025 Performance Details

• Net premiums earned rose 10.7% to $73.6 million, slightly above the consensus estimate by 0.2%.
• Net investment income improved 2.5% to $7.1 million, driven by a higher book yield and reduced expenses, beating estimates by 6.2%.
• Fee and other income dropped 14.5% year-over-year.
• Total expenses surged 20.3% to $68.9 million, mainly due to increased loss and adjustment costs, as well as higher underwriting and operating expenses.
• Pre-tax underwriting profit was $4.7 million, a 49.2% decline from the prior year.
• Operating net income for the quarter was $9.8 million, down 23.7% year-over-year.
• The net combined ratio worsened by 750 basis points to 93.6, compared to the consensus estimate of 90.8.

Financial Position as of December 31, 2025

• Cash and cash equivalents stood at $61.9 million, up from $44 million at the end of 2024.
• Total assets decreased to $1.13 billion from $1.16 billion a year earlier.
• Shareholders’ equity was $251.6 million, compared to $257.3 million at the end of the previous year.
• Book value per share was $13.39, a 0.9% decrease year-over-year.
• Return on average equity dropped by 270 basis points to 15.8%.

Capital Management Updates

During the fourth quarter of 2025, AMERISAFE repurchased $8 million worth of its common stock. For the full year, buybacks totaled $12.1 million, leaving $16.9 million available under the current repurchase authorization as of year-end.

The company’s board also approved a quarterly cash dividend of $0.41 per share, marking a 5.1% increase from the prior year. This dividend is scheduled for payment on March 20, 2026, to shareholders of record as of March 13.

AMERISAFE currently holds a Zacks Rank #3 (Hold).

How Peers Fared This Quarter

Other companies in the Finance sector have also released their quarterly results:

• RLI Corp (RLI): Reported Q4 2025 operating earnings of $0.94 per share, beating expectations by 23.6% and up 80.8% year-over-year. Operating revenue was $449 million (up 3%), though slightly below estimates. Premiums written fell 2.1% to $463.2 million, mainly due to weaker performance in the Property Segment.
• W. R. Berkley Corporation (WRB): Delivered operating income of $1.13 per share, narrowly missing estimates by 0.9% and remaining flat year-over-year. Net premiums written increased 2.1% to $3 billion, below projections. Operating revenues reached $3.7 billion (up 5.9%), while net investment income grew 6.6% to $338.2 million. Total expenses rose 7.2% to $3.1 billion.
• The Hartford Insurance Group, Inc. (HIG): Posted adjusted operating earnings of $4.06 per share for Q4 2025, exceeding estimates by 27.9% and rising 38% year-over-year. Operating revenues increased 8.9% to $5.2 billion, with earned premiums up 5.7% to $6.1 billion. Net investment income surged 16.5% to $832 million, and pre-tax income jumped 31.6% to $1.4 billion.