Amerisafe, Inc. grew premiums at double-digit rates in the second quarter of 2026, but rising loss costs eroded underwriting profit by nearly 38%.
The workers' compensation insurer posted net premiums earned of $77.3 million for Q2 2026, an 11.4% increase from $69.4 million a year earlier. Gross premiums written rose 7.9% to $86 million, aided by a 5.7% gain in voluntary premiums.
Payroll audits contributed $4.1 million to premiums written, more than double the $1.5 million in the same period last year. That top-line growth, however, did not carry through to underwriting profit. Pre-tax underwriting income fell 37.9% to $3.6 million from $5.7 million in Q2 2025.
Loss and loss adjustment expenses climbed 18.9% to $48.3 million.
For the first half of 2026, net premiums earned were $152.3 million, up 10.2%. Net income for the period was $22.7 million, roughly flat with $22.9 million in H1 2025. The six-month net combined ratio was 94.3%, against 90.5% a year earlier.
The net combined ratio for Q2 2026 widened to 95.4% from 91.7% a year earlier. The net loss ratio increased to 62.6% from 58.6%, despite $7.3 million of favorable case reserve development on accident years 2023 and prior. The underwriting expense ratio edged up to 31.8% from 31.3%, a move the company attributed to higher prior-period write-offs it does not expect to recur.
The claims cost trend at Amerisafe mirrors a broader market pattern. Medical claim severity and indemnity claim severity each rose 4% industry-wide in 2025, per the National Council on Compensation Insurance (NCCI). The workers' comp sector posted a calendar year combined ratio of 91% for 2025, with inpatient utilization a growing driver of cost increases.
Net income for Q2 2026 was $14.6 million, up 4.6% from $14 million a year earlier. The result was partly supported by $8.1 million in net unrealized gains on equity securities. On an operating basis, net income fell 17.9% to $8.3 million, with earnings per share declining to $0.44 from $0.53.
President and CEO G. Janelle Frost said the results showed the company's focus on profitability and capital discipline. She pointed to return on average equity of 23.5% for the quarter and 18.1% for the first six months of 2026. Frost said the company remains committed to "underwriting discipline, appropriate pricing, and disciplined capital management."
Net investment income slipped 2.4% to $6.5 million. Lower average investable assets offset a higher book yield. The investment portfolio, including cash and equivalents, stood at $770.7 million on June 30.
The company paid a regular quarterly dividend of $0.41 per share in June and declared the same amount payable in September. Amerisafe repurchased 184,093 shares at an average cost of $30.58 for a total outlay of $5.6 million. Book value per share was $13.49 at June 30, 2026, up 0.7% from $13.39 at December 31, 2025.
Amerisafe markets workers' compensation insurance in 27 states. Its policyholders are predominantly small to mid-sized employers in hazardous industries, including construction, trucking, logging, and manufacturing.
