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AMERISAFE (AMSF) Q3 Earnings Beat Estimates, Revenues Miss
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AMERISAFE, Inc. (AMSF - Free Report) 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.
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.
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.
Of the insurance industry players that have reported third-quarter results so far, the bottom line of Aflac Incorporated (AFL - Free Report) , First American Financial Corporation (FAF - Free Report) and Cincinnati Financial Corporation (CINF - Free Report) beat the Zacks Consensus Estimate.
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AMERISAFE (AMSF) Q3 Earnings Beat Estimates, Revenues Miss
AMERISAFE, Inc. (AMSF - Free Report) 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.
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-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 - Free Report) , First American Financial Corporation (FAF - Free Report) and Cincinnati Financial Corporation (CINF - Free Report) beat the Zacks Consensus Estimate.