AMSF Q1 Earnings Miss Estimates on Higher Costs, Soft Underwriting

AMERISAFE, Inc. AMSF reported first-quarter 2026 adjusted earnings per share of 50 cents, which missed the Zacks Consensus Estimate of 52 cents. The bottom line declined 16.7% year over year.

Operating revenues increased 7.9% year over year to $81.75 million but missed the consensus estimate by 0.9%.

The quarterly result was affected by higher expenses and weaker underwriting margins, with additional pressure from lower fee income and weaker investment income. Stronger premium growth partially offset the downside.

AMERISAFE, Inc. Price, Consensus and EPS SurpriseAMERISAFE, Inc. Price, Consensus and EPS Surprise

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

AMSF’s Q1 Performance

Net premiums earned of $75.1 million advanced 9% year over year. The metric missed the Zacks Consensus Estimate by 0.8%. Net investment income declined 0.8% year over year to $6.6 million due to lower average investable assets, partly offset by higher yield and lower expenses. The reported figure missed the Zacks Consensus Estimate by 1.5%. Fee and other income fell 63.3% year over year.

Total expenses escalated 13.9% year over year to $69.9 million due to higher loss and loss adjustment expenses incurred, underwriting and other operating costs and policyholder dividends.

AMERISAFE’s pre-tax underwriting profit amounted to $5.1 million, which fell 31.5% year over year. Operating net income of $9.5 million declined 17.4% year over year in the reported quarter.

The net combined ratio deteriorated 410 basis points year over year to 93.2. The Zacks Consensus Estimates was pegged at 92.7.

Financial Update (as of March 31, 2026)

AMERISAFE exited the first quarter with cash and cash equivalents of $34.2 million, down from $61.9 million at the end of 2025. Total assets declined to $1.12 billion from $1.13 billion at the end of 2025.

Shareholders’ equity decreased to $246.6 million from $251.6 million a year ago.

Book value per share was $13.18, down 3.7% year over year. Return on average equity declined 70 basis points year over year to 13.1%.

Capital Deployment Update

AMERISAFE bought back common shares worth $4 million during the first quarter. As of March 31, 2026, it had $12.9 million left under its share buyback program.

Management approved a quarterly cash dividend of 41 cents per share, which will be paid on June 19, 2026, to shareholders of record as of June 12, 2026.

AMSF’s Zacks Rank

The company 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

The Progressive Corporation PGR reported first-quarter 2026 earnings per share of $4.96, which beat the Zacks Consensus Estimate by 2.5%. The bottom line increased 6.7% year over year. PGR’s net premiums written were $23.6 billion in the reported quarter, up 6.5% from $22.2 billion a year ago. Net premiums earned grew 8% to $20.9 billion, which beat the Zacks Consensus Estimate by 1.5%.

Story Continues

Progressive’s operating revenues grew 8.2% year over year to $22.3 billion, driven by higher net premiums earned, an increase in net investment income, a rise in fees and other revenues and higher service revenues. The top line missed the Zacks Consensus Estimate by 1.2%

The Travelers Companies, Inc. TRV reported first-quarter 2026 core income of $7.71 per share, which beat the Zacks Consensus Estimate by 10.5%. The bottom line surged fourfold year over year. The increase was primarily driven by lower catastrophe losses and higher net investment income. Travelers’ total revenues remain flat at $11.9 billion. The top-line figure, however, missed the Zacks Consensus Estimate by 3.7%.

Net written premiums increased 2% year over year to a record $10.3 billion, driven by strong growth across Business Insurance and Bond & Specialty Insurance segments. TRV’s net investment income increased 8.4% year over year to $1 billion, primarily due to the long-term fixed income investment portfolio.

Chubb Limited CB reported first-quarter 2026 core operating income of $6.82 per share, which outpaced the Zacks Consensus Estimate by 5.2%. The bottom line decreased 85.2% year over year. Total operating revenues improved 11.8% year over year to $15.3 billion. The top line beat the Zacks Consensus Estimate by 3%.

Net premiums written improved 10.7% year over year to $14 billion in the quarter. Our estimate was $13.6 billion, while the Zacks Consensus Estimate was pegged at $13.5 billion. Net investment income was $1.7 billion, up 9.5% year over year. The Zacks Consensus Estimate was pegged at $1.8 billion, and our estimate was $2 billion.

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This article originally published on Zacks Investment Research (zacks.com).

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