AMERISAFE(AMSF) - 2024 Q4 - Annual Results

Financial Performance - AMERISAFE reported a net income of $55.4 million for the year 2024, with a return on equity of 20.2%[1][3]. - The company experienced a 31.2% decline in net income for Q4 2024 compared to Q4 2023, dropping to$ 13.2 million[3][8]. - Operating net income for the full year 2024 decreased by 13.5% to $48.4 million compared to 2023[3][8]. - Net income for Q4 2024 was$ 13,194,000, down from $19,181,000 in Q4 2023, reflecting a decrease of 31.1%[19]. - Basic earnings per share (EPS) for Q4 2024 was$ 0.69, compared to $1.00 in Q4 2023, a decline of 31.0%[19]. Premiums and Revenues - Net premiums earned increased by 1.3% year-over-year to$ 270.6 million for the full year 2024[3][4]. - Gross premiums written rose by 3.1% year-over-year to $294.1 million for the full year 2024[4][5]. - Gross premiums written for Q4 2024 were$ 62,702,000, an increase from $60,324,000 in Q4 2023, representing a growth of 2.3%[19]. - Total revenues for the twelve months ended December 31, 2024, were$ 309,043,000, slightly up from $306,853,000 in 2023, indicating a growth of 0.4%[19]. Investment Income - The company’s net investment income fell by 6.8% to$ 29.2 million for the full year 2024[6][7]. - Net investment income decreased to $6,914,000 in Q4 2024 from$ 8,077,000 in Q4 2023, a decline of 14.4%[19]. - The company reported net unrealized gains on equity securities of $9,508,000 for the twelve months ended December 31, 2024, compared to$ 1,228,000 in 2023, an increase of 676.5%[19]. Expenses and Ratios - The net combined ratio for the year was 88.7%, up from 85.9% in 2023, indicating increased underwriting costs[3][4]. - The underwriting expense ratio increased to 29.6% for the full year 2024, compared to 29.3% in 2023[5][4]. - Total expenses for the twelve months ended December 31, 2024, were $239,987,000, up from$ 229,476,000 in 2023, an increase of 4.6%[19]. Assets and Equity - The company's total assets decreased to $1,157,791,000 as of December 31, 2024, from$ 1,229,162,000 in 2023, a reduction of 5.8%[21]. - Reserves for loss and loss adjustment expenses were $651,309,000 as of December 31, 2024, down from$ 673,994,000 in 2023, a decrease of 3.4%[21]. - Shareholders' equity decreased to $257,341,000 as of December 31, 2024, from$ 292,451,000 in 2023, a decline of 12.0%[21]. Dividends and Tax - AMERISAFE's board of directors announced a 5.4% increase in the quarterly dividend, raising it from $0.37 to$ 0.39 per share[7][8]. - The effective tax rate for the full year 2024 remained unchanged at 19.7%[5][7].