) fourth-quarter operating earnings of 49 cents breezed past the
Zacks Consensus Estimate by 25.6%. Results were up 53.1% year
over year from 32 cents earned in the year-ago quarter.
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AMERISAFE INC (AMSF): Free Stock Analysis
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Including net realized capital gains of $0.04 million, Amerisafe
reported net income of 50 cents in the fourth quarter, up 13.6%
year over year.
Quarterly Operational Update
Total revenues increased 14.2% year over year to $85.6 million in
the fourth quarter. This was driven by strong improvement in net
premiums earned (up 18.9% year over year). It surpassed the Zacks
Consensus Estimate of $83 million.
Net premiums written in the quarter increased 30.7% year over
year to $76.7 million. Voluntary premiums written in the quarter
increased 25.0% year over year. Payroll audits and related
premium adjustments for policies written in previous periods
increased premiums by $7.9 million compared to an increase in
premium by $3.8 million in the year-ago quarter.
Net investment income decreased 0.1% year over year to $6.7
Total expenses of $72.9 million in the quarter showed an increase
of 11.5% year over year driven by higher loss and loss adjustment
expenses (up 15.8% year over year) and policyholder dividends (up
14.8% year over year).
In the fourth quarter, underwriting profit for Amerisafe was $5.8
million, up 433.6% year over year.
The accident year 2008 contributed a favorable prior year
development of $2.7 million. Consequently, the current accident
year loss ratio was 76.5%, down 170 basis points from 78.2%
reported in the year-ago quarter.
Net combined ratio improved 580 basis points year over year to
Full Year Highlights
Adjusted earnings of $1.48 per share improved 29.8% year over
Including net realized capital gains of $1.9 million, Amerisafe
reported net income of $1.58 cents in the 2012, up 22.5% year
Total revenues for full year 2012 increased 14.5% year over year
to $321.2 million.
Underwriting profit in 2012 was $7.2 million compared with an
underwriting loss of $0.98 million in 2011.
For the year ending Dec 31, 2012, the prior accident year
development was $2.5 million, down 62.1% year over year. Current
accident year loss ratio for 2012 was 76.5%, down 170 basis
points from 78.2% reported in the year-ago quarter.
Net combined ratio improved 290 basis points year over year to
97.5% in 2012.
The company initiated a cash dividend policy with intention to
pay a dividend every quarter. The board of directors declared its
first quarterly cash dividend of 8 cents per share payable on Mar
28, 2013 to shareholders of record as of Mar 14, 2013. The cash
dividend is currently expected to be 32 cents per share on a
Amerisafe exited 2012 with cash and cash equivalents worth $92.7
million, up 103.5% year over year.
The investment portfolio of the company improved 0.3% year over
year to $808.1 million in 2012.
As of Dec 31, 2012, total assets of the company were $1.2
billion, up 6.7% year over year.
Shareholders' equity increased 9.1% year over year to $381.2
million at 2012 end.
Performance of Few Other Accident and Health
) reported fourth-quarter 2012 operating income of 82 cents per
share, beating the Zacks Consensus Estimate of 77 cents. Earnings
improved 5.1% year over year.
) fourth-quarter 2012 operating earnings per share of $1.48 came
in line with the Zacks Consensus Estimate and were slightly ahead
of the year-ago quarter's earnings of $1.45. Operating earnings
edged up 2.0% year over year to $697 million. A weak yen/dollar
exchange rate had a negative impact of 4 cents per share on the
Employers Holdings Inc.
) reported fourth-quarter 2012 adjusted earnings of 6 cents per
share, down 86.4% year over year. Results were also below the
Zacks Consensus Estimate of 8 cents.
Amerisafe currently carries a Zacks Rank #3 (Hold).