) has improved 2.2% since it reported a 54.3% improvement in its
third-quarter 2013 operating earnings per share to 54 cents on
Oct 31. Results were also ahead of the Zacks Consensus Estimate
of 48 cents per share. Moreover, operating net income climbed
56.2% year over year to $10.1 million.
Including after-tax net realized losses of $0.7 million
against an after-tax net realized gain of $0.99 million in the
year-ago period, net income stood at $9.6 million or 52 cents per
share, compared with $7.1 million or 38 cents per share,
respectively, in the prior-year quarter.
Reported results reflect higher premiums that shored up the
top line as well as the underwriting results. However, the
positives were partially offset by insurance loss and loss
adjustment expenses (LAE).
Amerisafe's total revenues for the reported quarter were$88
million, up 9.5% from the prior-year quarter. However, revenues
lagged the Zacks Consensus Estimate of $93 million. Gross
premiums written for the quarter were $86.1 million, reflecting
an 11.5%year-over-year expansion. The uptick was driven by
payroll audits and related premium adjustments for policies
written in previous periods. These adjustments increased premiums
by $0.7 million in the reported quarter, while the same had
boosted premiums by $3.1 million in the year-ago quarter. A
sequential improvement in pricing in the workers compensation
market also aided the upside.
Furthermore, voluntary premiums written by Amerisafe jumped 14.3%
year over year in the reported quarter. In addition, net premiums
earned increased 12.7 % from the year-ago quarter to $81.6
million. Net investment income, which represented about 7.9% of
total revenue, was $6.9 million for the reported quarter, up 2.1%
from the prior-year quarter.
Conversely, insurance loss and loss adjusted expenses (LAE)
increased 5.9% year over year to $57 million (or about 69.9% of
net premiums earned). As a result, total expenses of Amerisafe
grew 5.9% year over year to $75.6 million, while net underwriting
expense ratio improved to 22.6% from 22.8% in the year-ago
quarter, due to an improvement in premiums earned.
Cash and cash equivalents as of Sep 30, 2013 were $116.8
million, up from $92.7 million at year end 2012. Amerisafe's
total assets as of Sep 30, 2013, were $1.3 billion, up from $1.2
billion at Dec 31, 2012. Shareholders' equity stood at $1.3
billion at the end of the first nine months of 2013, compared to
$1.2 billion at year end 2012.
Amerisafe's Board declared a cash dividend of 8 cents a share
on Oct 28, 2013. Meanwhile, the company did not buy back any
shares during the third quarter. The Board has extended the
ongoing share buyback program through Dec 2013. Since the
initiation of the program, Amerisafe has bought back about 1.26
million shares for $22.4 million.
Performance of Other Insurers
On Oct 29, 2013,
) reported in line third-quarter 2013 operating earnings of $1.47
On Oct 22, 2013,
) reported third-quarter 2013 operating net income of $2.49 per
share, ahead of the Zacks Consensus Estimate of $2.21.
On Oct 28, 2013,
Montpelier Re Holdings Ltd.
) reported third-quarter 2013 operating net income of $1.38 per
share, beating the Zacks Consensus Estimate of 74 cents by a
Amerisafe currently carries a Zacks Rank #2 (Buy).
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MONTPELIER RE (MRH): Free Stock Analysis
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