Amerisafe Q2 adjusted EPS misses estimates

Overview

• US workers' comp insurer's Q2 net premiums earned rose 11.4% yr/yr

• Adjusted EPS for Q2 missed analyst expectations

• Company repurchased $5.6 mln in shares during the quarter

Outlook

• Company did not provide specific guidance for the current quarter or full year

Result Drivers

• PREMIUM GROWTH - Co said net premiums earned rose due to strong policy and premium retention in renewals and higher payroll audit adjustments

• HIGHER CLAIMS COSTS - Loss and loss adjustment expenses benefited from $7.3 million of favorable case reserve development on accident years 2023 and prior

• LOWER INVESTMENT INCOME - Net investment income declined due to lower average investable assets, as capital was returned to shareholders

Company press release: ID:nBw51VPr9a

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the property & casualty insurance peer group is "buy."

• Wall Street's median 12-month price target for Amerisafe Inc is $36.71, about 7.1% above its July 20 closing price of $34.29

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 15 three months ago

Reuters Recommended Reads

• July 20 - W. R. Berkley second-quarter profit rises on strong underwriting

• July 20 - US insurance buyers see relief in property, cyber but casualty costs keep climbing: Alliant

• July 21 - Marsh quarterly profit rises on strength in risk management business

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)