Workers’ compensation insurance carrier Amerisafe reported first-quarter earnings that outpaced estimates and increased the bottom line by nearly 60% year over year.
The insurer’s earnings per share of $1.26 outstripped the Zacks Consensus Estimate by 57%, the equity research company said, thanks to solid underwriting results, efficient claims management and expense control.
Amerisafe reported total operative revenues of $012 million, which increased 1% year over year and led to higher net premiums earned of $96 million. The company also experienced a 0.4% decline in gross premium written to $100 million, while net premiums increased 1.2% year over year.
Net investment income represented almost 6% of total revenue, which decreased 11.5$ year over year to $6 million. That decrease was due to a decline in the value of an investment in a limited partnership head fund, the company said – something that has been affecting many insurance carriers.
Meanwhile, underwriting profits were strong, jumping 97.4% year over year to $28 million. Loss adjustment expenses fell 22% to $47 million, contributing to the 16% decrease in total expenses.
Operating return on equity was 20.8% in the quarter, up from 13.4% in the same period a year ago.
The company has cash and investments worth $79.3 million – an increase of 14% from 2015.
No shares were bought back during the quarter under Amerisafe’s repurchase plan.
