AMERISAFE NASDAQ: AMSF reported first-quarter 2026 results that management characterized as a “solid start to 2026,” citing premium growth, a sub-100 combined ratio, and continued underwriting discipline despite what executives described as a prolonged soft pricing environment in workers’ compensation.
Quarterly performance highlights
President and CEO Janelle Frost said the company grew net premiums earned by 9% year over year and delivered a combined ratio of 93.2%. AMERISAFE reported operating earnings of $0.50 per share for the quarter.
Frost framed results in the context of a competitive workers’ compensation market, pointing to “persistent industry headwinds such as claims severity and economic uncertainty,” while also noting that workers’ compensation “remains the most consistently profitable line within the P&C industry.” She attributed AMERISAFE’s performance to its focus on “appropriately priced risk selection and deep industry experience,” particularly within high-hazard industries.
Premium growth, retention, and pricing
Operations and Transformation Leader Vincent Gagliano said gross premiums written increased 5.6% to $88.5 million, up from $83.8 million in the first quarter of 2025. Retention on policies offered for renewal was 92.4%.
Gagliano said pricing “remained strong,” helping offset “continued downward pressure in filed loss costs.” He also said new business opportunities continued to grow amid “steady competition,” and that combined new and renewal voluntary premium increased 8.2% in the quarter.
In-force policy count rose 1.7% during the quarter and was up 9.5% since the first quarter of 2025, according to Gagliano. Audit premium and related adjustments were positive, adding $3.7 million in the quarter compared with $5.0 million in the year-ago period. Net earned premiums were $75.1 million, up 9% year over year.
Gagliano also discussed variability in policyholder dividends, noting that the company had not changed its strategy. He said the quarter’s result was within expectations and that, in states where AMERISAFE offers dividends, “the ultimate outcome depends upon individual policyholder experience.” With policy count growth, he said “it is not unexpected that more policyholders could qualify for dividends.”
Loss trends, prior-year development, and expense ratio
Frost said the current accident year loss ratio was 72% for the quarter, compared with 72% for accident year 2025 at 12 months and 71% at the first quarter of 2025. She attributed “modest upward pressure” on the current accident year to “continued rate pressure and general high claim severity,” while emphasizing that large claim losses can be “lumpy.” She added that AMERISAFE ended the first quarter with no claims with incurred value over $1 million, compared with two in the first quarter of accident year 2025.
For prior accident years, AMERISAFE recorded $7.6 million of favorable development, representing 10.1 points, compared with $8.7 million, or 12.7 points, in the prior-year quarter. The net loss ratio for the quarter was 61.9%, Frost said.
On expenses, Frost said total underwriting and other expenses were $22.3 million, producing an expense ratio of 29.7%, compared with 29.9% a year earlier. She called it the third consecutive quarter of year-over-year improvement, citing “disciplined expense management and continued operating leverage” as net earned premiums increased.
Investment portfolio, capital, and buybacks
AMERISAFE reported net income of $8.1 million, or $0.43 per diluted share, and operating net income of $9.5 million, or $0.50 per diluted share. In the year-ago quarter, the company posted net income of $8.9 million ($0.47 per diluted share) and operating net income of $11.4 million ($0.60 per diluted share). The effective tax rate was 19.8% versus 20.2% in the first quarter of 2025.
Net investment income decreased 0.8% to $6.6 million due to lower average investable assets, Frost said. However, she noted favorable new money yields, with the yield on new investments up 174 basis points compared with portfolio roll-off, which lifted the tax equivalent yield to 3.9%—7 basis points higher than the first quarter of 2025.
Frost described the investment portfolio as “high quality,” with an average AA- credit rating and a duration of 4.4 years. Asset allocation was “largely unchanged,” consisting of 61% municipals, 24% corporate bonds, 3% U.S. Treasuries and agencies, 7% equities, and 5% cash. About 43% of the portfolio was designated as held to maturity, with a net unrealized loss position of $7.9 million at quarter end, which Frost noted is not reflected in book value because held-to-maturity securities are carried at amortized cost.
During the quarter, AMERISAFE repurchased nearly 120,000 shares at an average cost of $33.60 per share, totaling $4 million. Remaining authorization under the repurchase program was $12.9 million as of March 31, Frost said. At quarter end, the company held approximately $774 million in cash and invested assets, and book value per share was $13.18.
Management commentary on market conditions
In the Q&A, Frost told Truist analyst Mark Hughes that there were “no marginal changes” in inflation versus what the company discussed at year-end. She said “medical inflation is real” and that AMERISAFE is “reserving properly for it,” adding that fee schedules are “doing their job in helping us contain costs.” Frost also pointed to prior commentary from NCCI that medical severity was up 6% and said she would expect “continued pressure on medical inflation industry-wide.”
On industry results, Frost said NCCI’s accident-year combined ratios have appeared to worsen over time, moving closer to 100% for the industry, and she expects continued pressure given “12 years of declining rates,” even as frequency has continued to decrease.
Asked about loss cost filings, Gagliano said AMERISAFE was still seeing “mid-single digit decreases” for the year, adding that in the company’s five biggest states, filings ranged from down nearly 9% to down 1.2%.
Regarding payroll, Gagliano said AMERISAFE saw wage growth of 4.5% for the quarter while headcount change was “essentially flat,” and he said payroll growth remained positive across major classes. Frost later said the company’s voluntary premium growth had been steady across its book of business, without “pockets” of outperformance by industry or state.
Brean Capital analyst Robert Farnam asked about asset and liability duration, and Frost said AMERISAFE’s average liability duration is “between three and four years,” which she attributed to the company’s “high touch” claims handling model aimed at settling claims more quickly.
Frost closed the call by reiterating that “thoughtful and measured growth with pricing adequacy” remains central to performance, and said the company remains confident in its strategy to deliver sustainable underwriting profitability and long-term shareholder value. She also noted that Guillermo Ramos is expected to assume CFO financial remarks starting next quarter, and that AMERISAFE planned to file its Form 10-Q on Thursday, April 23, after market close.
About AMERISAFE NASDAQ: AMSF
Amerisafe, Inc NASDAQ: AMSF is a specialty provider of workers' compensation insurance products and services in the United States. The company focuses on underwriting and managing workers' compensation policies for small to mid-sized public and private businesses, particularly in higher-hazard industries such as retail, manufacturing, distribution and wholesale. Through its network of independent agents, Amerisafe delivers tailored coverage solutions that combine robust risk management support with loss prevention programs designed to enhance workplace safety.
In addition to core insurance offerings, Amerisafe provides extensive risk control resources, including safety training, on-site consultations and claims management services.
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