Subscribe to Entrepreneur for $5
Subscribe

AMERISAFE (AMSF) Q3 Earnings Beat Estimates, Revenues Miss

Amerisafe's (AMSF) third-quarter earnings reflects benefit from reduced expenses, partly offset by decline in revenues.

By
This story originally appeared on Zacks

AMERISAFE, Inc. AMSF reported third-quarter 2021 earnings of $1.02 per share, which outpaced the Zacks Consensus Estimate by 39.7%. However, the bottom line declined 12.1% year over year.

- Zacks

The company’s results benefited from reduced expenses, partly offset by dampened revenues and lower underwriting profit.

Quarter in Detail

The company’s operating revenues of $74 million plunged 12% year over year due to lower net premiums earned and softer net investment income. The top line missed the consensus mark by 3.4%.

Net premiums earned fell 9.6% year over year to $67.6 million in the third quarter due to reduced voluntary premiums resulting from consistently lower approved state loss costs.

Net investment income of $6.1 million slumped 14.4% year over year primarily due to decline in investment yields on fixed-income securities.

Pre-tax underwriting profit fell 5.2% year over year to $19.3 million in the quarter under review.

Total expenses of $48.3 million decreased 11.1% year over year on account of lower loss and loss adjustment expenses incurred.

Net combined ratio improved 130 basis points (bps) year over year to 71.5% in the third quarter.

AMERISAFE, Inc. Price, Consensus and EPS Surprise

AMERISAFE, Inc. Price, Consensus and EPS Surprise

AMERISAFE, Inc. price-consensus-eps-surprise-chart | AMERISAFE, Inc. Quote

Financial Update (as of Sep 30, 2021)

The company exited the third quarter with cash and cash equivalents of $123.1 million, which doubled itself from the 2020-end level.

Total assets of $1.5 billion inched up 0.6% from the figure as of Dec 31, 2020.

Shareholders’ equity totaled $480.2 million, which rose 9.4% from the level at the 2020 end.

Book value per share of $24.80 dipped 0.5% year over year.

Operating return on average adjusted equity came in at 17.2%, which contracted 260 bps year over year.

Dividend Update

Concurrent with the third-quarter earnings release, AMERISAFE’s board of directors approved a quarterly dividend of 29 cents per share. The dividend will be paid out on Dec 17, 2021, to shareholders of record as of Dec 3.

Besides, the company announced a special cash dividend of $4.00 per share, which will be paid on Nov 17, 2021, to shareholders of record as of Nov 10.

Zacks Rank

AMERISAFE currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Insurers

Of the insurance industry players that have reported third-quarter results so far, the bottom line of Aflac Incorporated AFL, First American Financial Corporation FAF and Cincinnati Financial Corporation CINF beat the Zacks Consensus Estimate.



Bitcoin, Like the Internet Itself, Could Change Everything

Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.

Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly. 

See 3 crypto-related stocks now >>



Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

 

Aflac Incorporated (AFL): Free Stock Analysis Report

 

Cincinnati Financial Corporation (CINF): Free Stock Analysis Report

 

AMERISAFE, Inc. (AMSF): Free Stock Analysis Report

 

First American Financial Corporation (FAF): Free Stock Analysis Report

 

To read this article on Zacks.com click here.

 

Zacks Investment Research