AMERISAFE — Q3 2026 Earnings Summary

Financial Performance:

• Net premiums earned increased 3.0% to $73.3 million for the three months ended September 30, 2026, compared to $71.2 million in the prior year period; for the nine months ended September 30, 2026, net premiums earned rose 7.7% to $225.7 million from $209.5 million.
• Gross premiums written decreased 4.5% to $76.7 million for the quarter, down from $80.3 million in 2025; for the nine-month period, gross premiums written increased 3.0% to $251.1 million from $243.8 million.
• Net income was $7.2 million for the quarter, a 47.9% decrease from $13.8 million in 2025; for the nine months, net income fell 18.5% to $29.9 million from $36.7 million.
• Diluted earnings per share (EPS) were $0.39 for the quarter, down 45.8% from $0.72 in 2025; for the nine months, diluted EPS decreased 16.7% to $1.60 from $1.92.
• Operating net income was $7.4 million for the quarter, a 30.0% decline from $10.6 million in 2025; for the nine months, operating net income dropped 21.7% to $25.1 million from $32.1 million.
• Operating diluted EPS were $0.40 for the quarter, down 27.3% from $0.55 in 2025; for the nine months, operating diluted EPS fell 20.2% to $1.34 from $1.68.
• Net combined ratio was 96.5% for the quarter, compared to 90.6% in 2025; for the nine months, the net combined ratio was 95.0% versus 90.5% in 2025.
• Net loss ratio was 62.6% for the quarter, up from 58.5% in 2025; for the nine months, it was 62.3% compared to 58.5%.
• Net underwriting expense ratio was 32.5% for the quarter, up from 31.1% in 2025; for the nine months, it was 31.3% versus 30.8%.
• Net dividend ratio was 1.4% for the quarter, up from 1.0% in 2025; for the nine months, it was 1.4% compared to 1.2%.
• Return on average equity was 11.8% for the quarter, down from 20.5% in 2025; for the nine months, it was 16.3% compared to 18.4%.
• Book value per share was $12.80 as of September 30, 2026, a decrease of 11.5% from $14.47 in the prior year period.
• Net investment income was $6.6 million for the quarter, a 0.6% increase from $6.6 million in 2025; for the nine months, it decreased 0.9% to $19.7 million from $19.9 million.
• Pre-tax investment yield was 3.5% for the quarter, up from 3.2% in 2025; for the nine months, it was 3.4% compared to 3.2%.
• Tax-equivalent yield was 4.0% for the quarter and nine months, up from 3.9% in the prior year periods.
• Loss and loss adjustment expenses incurred were $45.9 million for the quarter, a 10.2% increase from $41.7 million in 2025; for the nine months, they rose 14.9% to $140.7 million from $122.5 million.
• Underwriting and other operating costs were $23.8 million for the quarter, a 7.9% increase from $22.1 million in 2025; for the nine months, they increased 9.7% to $70.7 million from $64.5 million.
• Policyholder dividends were $1.1 million for the quarter, a 48.0% increase from $0.7 million in 2025; for the nine months, they rose 18.0% to $3.1 million from $2.6 million.
• Effective tax rate was 20.0% for the quarter, down from 21.0% in 2025.
• Carrying value of the investment portfolio, including cash and cash equivalents, was $753.3 million as of September 30, 2026.

Business Segments and Product Lines:

• Voluntary premiums on policies written in the quarter increased 0.8% compared to the third quarter of 2025, driven by strong renewal pricing and continued policy count growth.
• Payroll audits and related premium adjustments decreased premiums written by $1.6 million in the third quarter of 2026, compared with an increase of $2.5 million in the same period in 2025.
• Loss and loss adjustment expenses benefited from $6.9 million of favorable case reserve development, primarily on accident years 2023 and prior.
• Underwriting expense ratio increase was primarily attributable to increased insurance-related assessments, higher compensation costs, and higher commission expense.

Risks and Challenges:

• The net combined ratio was weighed down by an increasingly competitive workers' compensation market, softer audit premium, and higher expenses.
• Net unrealized losses on equity securities were $0.2 million in the third quarter of 2026, compared with $4.1 million of net unrealized gains in the third quarter of 2025.
• Net realized losses on investments were $0.1 million for the quarter and $0.1 million for the nine months, compared to $0 and $3.1 million of gains in the prior year periods, respectively.

Management Commentary and Tone:

• G. Janelle Frost, President and CEO, stated that third-quarter results reflected market competition, softer audit premium, and higher expenses but noted maintained disciplined pricing and favorable prior-year loss reserve development.
• Management highlighted encouraging improvement in new business activity late in the quarter.
• The company remains focused on sustaining momentum while applying underwriting discipline, proactive claims management, and specialized safety expertise to underpin long-term value.

Other Key Points:

• The Company paid a regular quarterly cash dividend of $0.41 per share on September 25, 2026, representing a 5.1% increase compared to the third quarter of 2025.
• On October 27, 2026, the Board of Directors declared a quarterly cash dividend of $0.41 per share, payable on December 11, 2026, to shareholders of record as of December 4, 2026.
• The Company repurchased 5,450 shares of common stock under its share repurchase program at an average cost of $30.18 per share for a total of $0.2 million during the quarter.
• Since the inception of the share repurchase program in 2010, the Company has repurchased 2,283,642 shares at an average cost of $28.01 per share for a total of $64.0 million.
• The remaining outstanding share repurchase authorization as of September 30, 2026, was $7.1 million.
• Book value per share decreased 4.4% from $13.39 at December 31, 2025, to $12.80 at September 30, 2026.
• A conference call to discuss the results is scheduled for October 29, 2026, at 10:00 a.m. Eastern Time.