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Amerisafe (AMSF) Q3 Earnings and Revenues Beat Estimates

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Amerisafe Inc. (AMSF - Free Report) reported third-quarter 2017 operating earnings per share of 87 cents, which surpassed the Zacks Consensus Estimate by 13%. However, earnings declined 6.5% year over year due to a 6.1% fall in operating income.

Quarter in Detail

Amerisafe’s total operating revenues decreased 5.5% year over year to $92.9 million and surpassed the Zacks Consensus Estimate by 1%.

Gross premiums written in the quarter decreased 2%, primarily due to lower voluntary premiums written.

Net investment income decreased 2.7% year over year to $7.8 million.

Total expenses came in at $69.2 million, down 4.1% year over year. For the third quarter, the underwriting expense ratio was 22.7%, reflecting an improvement of 40 basis points (bps) from the prior-year quarter.  The improvement came on the back of lower loss-based assessments and commissions year over year.

 

AMERISAFE, Inc. Price, Consensus and EPS Surprise

AMERISAFE, Inc. Price, Consensus and EPS Surprise | AMERISAFE, Inc. Quote

Financial Update

Amerisafe exited the quarter with cash and cash equivalents of $80.4 million, up 36.4% from year-end 2016.

As of Sep 30, 2017, total shareholders’ equity was $494.9 million, up 8.5% from the end of 2016.

Operating return on equity was 13.8%, down 60 bps year over year.

Book value per share as of Sep 30, 2017 was $25.72, down 3% year over year.

Dividend and Share Repurchase

The company paid a regular quarterly cash dividend of 20 cents per share on Sep 22, 2017. 

On Oct 23, 2017, the board of directors approved a quarterly cash dividend of 20 cents per share, payable on Dec 28, 2017 to shareholders on record as of December 14, 2017.

Further, owing to the company’s capital strength and continued underwriting profits, the board of directors declared an extraordinary dividend of $3.50 per share, payable on Dec 28, 2017 to shareholders on record as of Dec 14, 2017.

During the quarter, no shares were repurchased under the company’s share repurchase plan.

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 Companies in the Finance Sector

Among the other firms in the finance sector that have reported their third-quarter earnings so far, American Express Company (AXP - Free Report) , Nasdaq (NDAQ - Free Report) and Discover Financial Services (DFS - Free Report) beat their respective Zacks Consensus Estimate.

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