We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Amerisafe (AMSF) Earnings, Revenues Miss Estimates in Q2
Read MoreHide Full Article
Amerisafe Inc.'s (AMSF - Free Report) second-quarter 2016 operating earnings per share of 85 cents missed the Zacks Consensus Estimate by 1.2%. Nonetheless, the bottom line inched up 1.2% year over year on the back of continued focus on disciplined underwriting.
Amerisafe’s total revenue declined 0.3% year over year to $97 million but missed the Zacks Consensus Estimate of $100 million. Net premiums written amounted to $100.7 million in the reported quarter, down 2.7% from the year-ago quarter.
Amerisafe’s insurance business reported a 2.6% decline in gross premiums written to $103.2 million. Net premiums earned were down 5.1% year over year to $90.7 million.
Net investment income, which represented nearly 6.3% of the total revenue, decreased 10% year over year to $6.2 million. The downside was attributable to a decline in the value of an investment in a limited partnership hedge fund.
Insurance loss adjustment expenses declined 14.2% year over year to $49 million. This was one of the primary factors behind the 8.6% year-over-year decrease in Amerisafe’s total expense to $72 million.
Underwriting profit jumped 14% year over year to $17.8 million. Also, net combined ratio improved 320 basis points to 80.4%.
Financial Update
Amerisafe exited the quarter with cash and cash equivalents worth $70.2 million, up 1% from year-end 2015. Total shareholders’ equity was $495.9 million as of Jun 30, 2016, up from $454 million at the end of 2015.
Operating return on equity was 13.7% in the quarter, up from 12.3% a year ago. Book value per share came in at $25.83, up 3.9% year over year.
During the quarter, no shares were bought back under the repurchase plan. The company paid a dividend of 18 cents per share. On Jul 26, the board declared a quarterly dividend of 18 cents to be paid on Sep 23, 2016 to shareholders on record as of Sep 9, 2016.
Zacks Rank & Peer Performance
Currently, Amerisafe carries a Zacks Rank #3 (Hold). Among the other players in the insurance industry that have reported their earnings so far, the bottom line at The Travelers Companies, Inc. (TRV - Free Report) and First American Financial Corporation (FAF - Free Report) beat their respective Zacks Consensus Estimate, while earnings of RLI Corp. (RLI - Free Report) missed the same.
Want the latest recommendations from Zacks Investment Research? Today, you candownload 7 Best Stocks for the Next 30 Days.Click to get this free report >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Amerisafe (AMSF) Earnings, Revenues Miss Estimates in Q2
Amerisafe Inc.'s (AMSF - Free Report) second-quarter 2016 operating earnings per share of 85 cents missed the Zacks Consensus Estimate by 1.2%. Nonetheless, the bottom line inched up 1.2% year over year on the back of continued focus on disciplined underwriting.
Quarter in Detail
Amerisafe’s total revenue declined 0.3% year over year to $97 million but missed the Zacks Consensus Estimate of $100 million. Net premiums written amounted to $100.7 million in the reported quarter, down 2.7% from the year-ago quarter.
Amerisafe’s insurance business reported a 2.6% decline in gross premiums written to $103.2 million. Net premiums earned were down 5.1% year over year to $90.7 million.
Net investment income, which represented nearly 6.3% of the total revenue, decreased 10% year over year to $6.2 million. The downside was attributable to a decline in the value of an investment in a limited partnership hedge fund.
Insurance loss adjustment expenses declined 14.2% year over year to $49 million. This was one of the primary factors behind the 8.6% year-over-year decrease in Amerisafe’s total expense to $72 million.
Underwriting profit jumped 14% year over year to $17.8 million. Also, net combined ratio improved 320 basis points to 80.4%.
Financial Update
Amerisafe exited the quarter with cash and cash equivalents worth $70.2 million, up 1% from year-end 2015. Total shareholders’ equity was $495.9 million as of Jun 30, 2016, up from $454 million at the end of 2015.
Operating return on equity was 13.7% in the quarter, up from 12.3% a year ago. Book value per share came in at $25.83, up 3.9% year over year.
AMERISAFE INC Price, Consensus and EPS Surprise
AMERISAFE INC Price, Consensus and EPS Surprise | AMERISAFE INC Quote
Dividend and Share Repurchase Update
During the quarter, no shares were bought back under the repurchase plan. The company paid a dividend of 18 cents per share. On Jul 26, the board declared a quarterly dividend of 18 cents to be paid on Sep 23, 2016 to shareholders on record as of Sep 9, 2016.
Zacks Rank & Peer Performance
Currently, Amerisafe carries a Zacks Rank #3 (Hold). Among the other players in the insurance industry that have reported their earnings so far, the bottom line at The Travelers Companies, Inc. (TRV - Free Report) and First American Financial Corporation (FAF - Free Report) beat their respective Zacks Consensus Estimate, while earnings of RLI Corp. (RLI - Free Report) missed the same.
Want the latest recommendations from Zacks Investment Research? Today, you candownload 7 Best Stocks for the Next 30 Days. Click to get this free report >>