Loading...
•
Mar 31, 2020
Amerisafe Q1 2020 Earnings Report
AMERISAFE reported first quarter results with a net combined ratio of 83.5%.
Key Takeaways
AMERISAFE reported a net combined ratio of 83.5% for the first quarter of 2020. The company's net income was $10.8 million, or $0.56 per diluted share, compared to $19.4 million, or $1.01 per diluted share, for the same period in 2019. Operating net income was $16.939 million, or $0.88 per diluted share.
AMERISAFE produced a net combined ratio of 83.5% in the first quarter.
Gross premiums written decreased by 6.5% compared to the first quarter of 2019, driven by lower voluntary premiums.
The company experienced favorable net loss development for prior accident years, reducing loss and loss adjustment expenses by $13.6 million.
Net unrealized losses on equity investments were $8.8 million, decreasing overall net income by $0.36 per share.
Forward Guidance
Premiums in future periods will depend on the ongoing economic impact of COVID-19. Investment income may decline, and the market value of investment securities may decrease, depending on the ongoing economic impact.
Positive Outlook
- AMERISAFE's employees' dedication and professionalism provided unwavering service to policyholders, agents and injured workers.
- The company is conducting business with no disruption to operations.
- The company has communicated with all critical third-party vendors to confirm continuity of services.
- All claims reporting continues to be reported via telephone as per procedures, pre-COVID-19.
- The company is working and communicating with customers utilizing virtual meeting tools along with access via phone, email and through the website.
Challenges Ahead
- There is some uncertainty about the impact to policyholders from COVID-19 and their business operations, including payrolls, which is a primary source of premium revenue for AMERISAFE.
- Premiums in future periods will depend on the ongoing economic impact of COVID-19.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...