DeRidder, Louisiana-based workers’ compensation insurance company, Amerisafe Inc., has reported a first quarter profit of $10.8 million.
The company posted revenue of $79.2 million in the period; adjusted revenue was $86.9 million.
Gross premiums written in the first quarter of 2020 decreased by $6.0 million, or 6.5%, compared with the first quarter of 2019, driven by voluntary premiums which were 5.8% lower than the first quarter of 2019.
Payroll audits and related premium adjustments increased premiums written by $3.6 million in the first quarter of 2020, compared to an increase in premiums written of $4.5 million in the first quarter of 2019.
The current accident year loss ratio for the first quarter was 72.5%, unchanged from the 72.5% ratio for accident year 2019. During the quarter, the company experienced favorable net loss development for prior accident years, which reduced loss and loss adjustment expenses by $13.6 million, attributable primarily to accident years 2012 through 2017.
For the quarter ended March 31, 2020, the underwriting expense ratio was 26.9% compared with 24.3% in the same quarter in 2019. The increase in the ratio was primarily due to a decrease in net earned premium and an increase in premium based insurance assessments compared with the first quarter of 2019.
Amerisafe said it had profit of 56 cents per share. Earnings, adjusted for investment costs, were 88 cents per share.
Amerisafe shares have climbed 2% since the beginning of the year. Shares hit $67.50 at the end of the trading day on April 29, marking a 12-month increase of 15%.
The company is a specialty provider of workers’ compensation insurance focused on small to mid-sized employers engaged in hazardous industries, principally construction, trucking, logging and lumber, manufacturing, and agriculture. Amerisafe actively markets workers’ compensation insurance in 27 states.
Source: Amerisafe
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