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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED
JUNE 30,
2025
or
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM TO
Commission File Number:
001-12251
AMERISAFE, INC.
(Exact Name of Registrant as Specified in Its Charter)
Texas
75-2069407
(State of Incorporation)
(I.R.S. Employer Identification Number)
2301 Highway 190 West
,
DeRidder
,
Louisiana
70634
(Address of Principal Executive Offices)
(Zip Code)
Registrant’s telephone number, including area code: (
337
)
463-9052
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common
AMSF
NASDAQ
Indicate by check mark whether the Registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes
☒
No
☐
Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files).
Yes
☒
No
☐
Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
☒
Accelerated filer
☐
Non-accelerated filer
☐
Smaller reporting company
☐
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
☐
Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes
☐
No
☒
As of July 18, 2025, there were
18,990,652
shares of the Registrant’s common stock, par value $0.01 per share, outstanding.
This report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and 21E of the Securities Exchange Act of 1934. Forward-looking statements are all statements other than statements of historical facts. You should not place undue reliance on these statements. These forward-looking statements include statements that reflect the current views of our senior management with respect to our financial performance and future events with respect to our business and the insurance industry in general. Statements that include the words “expect,” “intend,” “plan,” “believe,” “project,” “forecast,” “estimate,” “may,” “should,” “could,” “to be,” “anticipate” and similar statements of a future or forward-looking nature identify forward-looking statements.
Forward-looking statements address matters that involve risks and uncertainties. Forward-looking statements are not guarantees of future performance. Accordingly, there are or will be important factors that could cause our actual results to differ materially from those expressed or implied in these statements. We believe that these factors include, but are not limited to, the following:
•
the cyclical nature of the workers’ compensation insurance industry;
•
increased competition on the basis of types of insurance offered, premium rates, coverage availability, payment terms, claims management, safety services, policy terms, overall financial strength, financial ratings and reputation;
•
changes in relationships with independent agencies (including retail and wholesale brokers and agents);
•
general economic conditions, including recession, inflation, performance of financial markets, interest rates, unemployment rates, fluctuating asset values and global health pandemics;
•
developments in capital markets that adversely affect the performance of our investments;
•
technology breaches or failures, including those resulting from a malicious cyber attack on the Company or its policyholders and service providers;
•
in the industries we target, decreased level of business activity of our policyholders caused by downturn in business activity generally;
•
greater frequency or severity of claims and loss activity than our underwriting, reserving or investment practices anticipate based on historical experience or industry data;
•
adverse developments in economic, competitive, judicial or regulatory conditions within the workers’ compensation insurance industry;
•
loss of the services of any of our senior management or other key employees;
•
changes in regulations, laws, rates, rating factors, or taxes applicable to the Company, its policyholders or the agencies that sell its insurance;
•
changes in current accounting standards or new accounting standards;
•
changes in legal theories of liability under our insurance policies;
•
changes in rating agency policies, practices or ratings;
•
changes in the availability, cost or quality of reinsurance and the failure of our reinsurers to pay claims in a timely manner or at all;
•
the effects of U.S. involvement in hostilities with other countries and large-scale acts of terrorism, or the threat of hostilities or terrorist acts; and
•
other risks and uncertainties described in more detail under the heading "Risk Factors" in Item 1A of this report and from time to time in the Company’s other filings with the Securities and Exchange Commission (SEC).
The foregoing factors should not be construed as exhaustive and should be read together with the other risks described in this report and other factors described under the caption “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2024 and as may be further amended by subsequent filings with the SEC. If one or more events related to these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may differ materially from what we anticipate. Investors are cautioned that many of the assumptions upon which these forward-looking statements are based are likely to change after the date the forward-looking statements are made. We undertake no obligation to update or revise any forward-looking statements, which speak only as of the date made, notwithstanding any changes in our assumptions, actual experience or other changes that arise after the date of this report.
3
PART I - FINANCI
AL INFORMATION
Item 1. Financi
al Statements.
AMERISAFE, INC. AND SUBSIDIARIES
CONSOLIDA
TED BALANCE SHEETS
(in thousands, except share data)
June 30, 2025
December 31, 2024
(unaudited)
Assets
Investments:
Fixed maturity securities—held-to-maturity, at amortized cost net of allowance
for credit losses of $
88
and $
116
in 2025 and 2024, respectively,
(fair value $
371,355
and $
399,721
in 2025 and 2024, respectively)
$
384,822
$
413,061
Fixed maturity securities—available-for-sale, at fair value
(amortized cost $
316,286
, allowance for credit losses of $
0
in 2025
and amortized cost $
318,975
, allowance for credit losses of $
0
in 2024)
306,715
307,750
Equity securities, at fair value
(cost $
31,164
and $
36,020
in 2025 and 2024, respectively)
52,451
58,629
Short-term investments
14,900
9,338
Total investments
758,888
788,778
Cash and cash equivalents
48,465
44,045
Amounts recoverable from reinsurers
(net of allowance for credit losses of $
290
and $
300
in 2025 and 2024, respectively)
115,771
117,019
Premiums receivable
(net of allowance for credit losses of $
3,887
and $
4,238
in 2025 and 2024, respectively)
166,344
142,659
Deferred income taxes
20,073
19,448
Accrued interest receivable
7,458
7,327
Property and equipment, net
6,563
5,887
Deferred policy acquisition costs
21,149
19,151
Federal income tax recoverable
2,395
2,180
Other assets
8,008
11,297
Total assets
$
1,155,114
$
1,157,791
Liabilities and shareholders’ equity
Liabilities:
Reserves for loss and loss adjustment expenses
$
624,095
$
651,309
Unearned premiums
138,784
121,926
Amounts held for others
35,971
38,657
Policyholder deposits
33,974
33,867
Insurance-related assessments
17,386
14,852
Accounts payable and other liabilities
39,293
38,409
Payable for investments purchased
41
1,430
Total liabilities
889,544
900,450
Shareholders’ equity:
Common stock: voting—$
0.01
par value authorized shares—
50,000,000
in 2025 and 2024;
20,764,355
and
20,733,166
shares issued; and
19,018,747
and
19,050,315
shares outstanding in 2025 and 2024, respectively
208
207
Additional paid-in capital
225,674
223,956
Treasury stock, at cost (
1,745,608
and
1,682,851
shares in 2025 and 2024,
respectively)
(
44,848
)
(
42,052
)
Accumulated earnings
92,097
84,105
Accumulated other comprehensive loss, net
(
7,561
)
(
8,875
)
Total shareholders’ equity
265,570
257,341
Total liabilities and shareholders’ equity
$
1,155,114
$
1,157,791
See accompanying notes.
4
AMERISAFE, INC. AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF INCOME
(in thousands, except share and per share data)
(unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2025
2024
2025
2024
Revenues
Gross premiums written
$
79,704
$
76,428
$
163,488
$
156,502
Ceded premiums written
(
4,185
)
(
4,027
)
(
8,364
)
(
7,953
)
Net premiums written
$
75,519
$
72,401
$
155,124
$
148,549
Net premiums earned
$
69,381
$
68,633
$
138,266
$
137,079
Net investment income
6,691
7,447
13,343
14,813
Net realized gains (losses) on investments
3,116
(
117
)
3,118
(
339
)
Net unrealized gains (losses) on equity securities
1,829
(
58
)
(
1,323
)
4,718
Fee and other income (losses)
71
(
75
)
281
48
Total revenues
81,088
75,830
153,685
156,319
Expenses
Loss and loss adjustment expenses incurred
40,660
40,624
80,819
80,615
Underwriting and certain other operating costs
8,053
7,273
14,313
12,584
Commissions
6,234
5,917
12,289
11,799
Salaries and benefits
7,459
7,239
15,743
14,744
Policyholder dividends
1,239
1,049
1,873
2,121
Provision for investment related credit loss benefit
(
12
)
(
16
)
(
28
)
(
33
)
Total expenses
63,633
62,086
125,009
121,830
Income before income taxes
17,455
13,744
28,676
34,489
Income tax expense
3,500
2,751
5,772
6,571
Net income
$
13,955
$
10,993
$
22,904
$
27,918
Earnings per share
Basic
$
0.73
$
0.58
$
1.20
$
1.46
Diluted
$
0.73
$
0.57
$
1.20
$
1.46
Shares used in computing earnings per share
Basic
19,038,360
19,083,232
19,037,339
19,102,700
Diluted
19,119,600
19,146,294
19,120,530
19,171,206
Cash dividends declared per common share
$
0.39
$
0.37
$
0.78
$
0.74
See accompanying notes.
5
AMERISAFE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEM
ENTS OF COMPREHENSIVE INCOME
(in thousands)
(unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2025
2024
2025
2024
Net income
$
13,955
$
10,993
$
22,904
$
27,918
Other comprehensive income:
Unrealized gain (loss) on debt securities, net of tax
(
292
)
(
820
)
1,314
(
2,366
)
Comprehensive income
$
13,663
$
10,173
$
24,218
$
25,552
See accompanying notes.
6
AMERISAFE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
Three Months Ended June 30, 2025 and 2024
(in thousands, except share data)
(unaudited)
Common Stock
Additional
Paid-In
Treasury Stock
Accumulated
Accumulated
Other
Comprehensive
Shares
Amounts
Capital
Shares
Amounts
Earnings
Loss
Total
Balance at March 31, 2025
20,733,166
$
207
$
224,327
(
1,682,851
)
$
(
42,052
)
$
85,600
$
(
7,269
)
$
260,813
Comprehensive income:
Net income
—
—
—
—
—
13,955
—
13,955
Other comprehensive
income:
Change in unrealized
losses on debt
securities, net of tax
—
—
—
—
—
—
(
292
)
(
292
)
Comprehensive income:
13,663
Common stock issued
31,189
1
943
—
—
—
—
944
Purchase of treasury stock
—
—
—
(
62,757
)
(
2,796
)
—
—
(
2,796
)
Share-based compensation
—
—
404
—
—
—
—
404
Dividends to shareholders
—
—
—
—
—
(
7,458
)
—
(
7,458
)
Balance at June 30, 2025
20,764,355
$
208
$
225,674
(
1,745,608
)
$
(
44,848
)
$
92,097
$
(
7,561
)
$
265,570
Common Stock
Additional
Paid-In
Treasury Stock
Accumulated
Accumulated
Other
Comprehensive
Shares
Amounts
Capital
Shares
Amounts
Earnings
Loss
Total
Balance at March 31, 2024
20,704,448
$
207
$
222,443
(
1,569,440
)
$
(
36,929
)
$
124,113
$
(
8,740
)
$
301,094
Comprehensive income:
Net income
—
—
—
—
—
10,993
—
10,993
Other comprehensive
income:
Change in unrealized
losses on debt
securities, net of tax
—
—
—
—
—
—
(
820
)
(
820
)
Comprehensive income:
10,173
Common stock issued
25,103
—
565
—
—
—
—
565
Purchase of treasury stock
—
—
—
(
91,825
)
(
4,113
)
—
—
(
4,113
)
Share-based compensation
—
—
351
—
—
—
—
351
Dividends to shareholders
—
—
—
—
—
(
7,078
)
—
(
7,078
)
Balance at June 30, 2024
20,729,551
$
207
$
223,359
(
1,661,265
)
$
(
41,042
)
$
128,028
$
(
9,560
)
$
300,992
See accompanying notes.
7
AMERISAFE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
Six Months Ended June 30, 2025 and 2024
(in thousands, except share data)
(unaudited)
Common Stock
Additional
Paid-In
Treasury Stock
Accumulated
Accumulated
Other
Comprehensive
Shares
Amounts
Capital
Shares
Amounts
Earnings
Loss
Total
Balance at December 31, 2024
20,733,166
$
207
$
223,956
(
1,682,851
)
$
(
42,052
)
$
84,105
$
(
8,875
)
$
257,341
Comprehensive income:
Net income
—
—
—
—
—
22,904
—
22,904
Other comprehensive
income:
Change in unrealized
losses on debt
securities, net of tax
—
—
—
—
—
—
1,314
1,314
Comprehensive income:
24,218
Common stock issued
31,189
1
943
—
—
—
—
944
Purchase of treasury stock
—
—
—
(
62,757
)
(
2,796
)
—
—
(
2,796
)
Share-based compensation
—
—
775
—
—
—
—
775
Dividends to shareholders
—
—
—
—
—
(
14,912
)
—
(
14,912
)
Balance at June 30, 2025
20,764,355
$
208
$
225,674
(
1,745,608
)
$
(
44,848
)
$
92,097
$
(
7,561
)
$
265,570
Common Stock
Additional
Paid-In
Treasury Stock
Accumulated
Accumulated
Other
Comprehensive
Shares
Amounts
Capital
Shares
Amounts
Earnings
Loss
Total
Balance at December 31, 2023
20,704,448
$
207
$
222,078
(
1,569,440
)
$
(
36,929
)
$
114,289
$
(
7,194
)
$
292,451
Comprehensive income:
Net income
—
—
—
—
—
27,918
—
27,918
Other comprehensive
income:
Change in unrealized
losses on debt
securities, net of tax
—
—
—
—
—
—
(
2,366
)
(
2,366
)
Comprehensive income:
25,552
Common stock issued
25,103
—
565
—
—
—
—
565
Purchase of treasury stock
—
—
—
(
91,825
)
(
4,113
)
—
—
(
4,113
)
Share-based compensation
—
—
716
—
—
—
—
716
Dividends to shareholders
—
—
—
—
—
(
14,179
)
—
(
14,179
)
Balance at June 30, 2024
20,729,551
$
207
$
223,359
(
1,661,265
)
$
(
41,042
)
$
128,028
$
(
9,560
)
$
300,992
See accompanying notes.
8
AMERISAFE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Six Months Ended June 30,
2025
2024
Operating activities
Net income
$
22,904
$
27,918
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation
409
558
Net amortization of investments
446
847
Change in investment related allowance for credit losses
(
28
)
(
33
)
Deferred income taxes
(
974
)
(
750
)
Net realized (gains) losses on investments
(
3,118
)
339
Net unrealized (gains) losses on equity securities
1,323
(
4,718
)
Net realized losses on disposal of assets
—
209
Share-based compensation
1,816
1,398
Changes in operating assets and liabilities:
Premiums receivable, net
(
23,314
)
(
20,454
)
Accrued interest receivable
(
131
)
98
Deferred policy acquisition costs
(
1,998
)
(
1,531
)
Other assets
649
(
1,648
)
Reserves for loss and loss adjustment expenses
(
27,214
)
(
10,009
)
Unearned premiums
16,858
11,470
Reinsurance balances
1,248
5,722
Amounts held for others and policyholder deposits
(
2,579
)
(
5,646
)
Federal income taxes recoverable
(
215
)
226
Accounts payable and other liabilities
3,683
918
Net cash provided by (used in) operating activities
(
10,235
)
4,914
Investing activities
Purchases of investments held-to-maturity
—
(
5,465
)
Purchases of investments available-for-sale
(
14,491
)
(
6,639
)
Purchases of equity securities
(
213
)
—
Purchases of short-term investments
(
5,469
)
(
46,957
)
Proceeds from maturities of investments held-to-maturity
30,473
22,393
Proceeds from sales and maturities of investments available-for-sale
15,628
35,313
Proceeds from sales of equity securities
8,232
7,933
Purchases of property and equipment
(
1,084
)
(
802
)
Net cash provided by investing activities
33,076
5,776
Financing activities
Finance lease purchases
(
42
)
(
42
)
Share-based compensation related tax withholding
(
673
)
(
429
)
Purchase of treasury stock
(
2,796
)
(
4,113
)
Dividends to shareholders
(
14,910
)
(
14,177
)
Net cash used in financing activities
(
18,421
)
(
18,761
)
Change in cash and cash equivalents
4,420
(
8,071
)
Cash and cash equivalents at beginning of period
44,045
38,682
Cash and cash equivalents at end of period
$
48,465
$
30,611
See accompanying notes.
9
AMERISAFE, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
Note 1. Basis of Presentation
AMERISAFE, Inc. (the Company) is an insurance holding company incorporated in the state of Texas. The accompanying unaudited consolidated financial statements include the accounts of the Company and its subsidiaries: American Interstate Insurance Company (AIIC) and its insurance subsidiaries, Silver Oak Casualty, Inc. (SOCI) and American Interstate Insurance Company of Texas (AIICTX), Amerisafe Risk Services, Inc. (RISK) and Amerisafe General Agency, Inc. (AGAI). AIIC and SOCI are property and casualty insurance companies organized under the laws of the state of Nebraska. AIICTX is a property and casualty insurance company organized under the laws of the state of Texas. RISK, a wholly owned subsidiary of the Company, is a claims and safety service company currently servicing only affiliated insurance companies. AGAI, a wholly owned subsidiary of the Company, is a general agent for the Company. AGAI sells insurance, which is underwritten by AIIC, SOCI and AIICTX, as well as by nonaffiliated insurance carriers.
The terms “AMERISAFE,” the “Company,” “we,” “us” or “our” refer to AMERISAFE, Inc. and its consolidated subsidiaries, as the context requires.
The Company provides workers’ compensation insurance for small to mid-sized employers engaged in hazardous industries, principally construction, trucking, logging and lumber, agriculture, manufacturing, maritime, and telecommunications. Assets and revenues of AIIC and its subsidiaries represent at least
95
% of comparable consolidated amounts of the Company for each of the
six months ended June 30, 2025 and 2024.
In the opinion of management of the Company, the accompanying unaudited consolidated financial statements contain all adjustments (consisting of normal recurring accruals) necessary to present fairly the financial position, the results of operations and cash flows for the periods presented. The unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q under the Securities Exchange Act of 1934, as amended (the Exchange Act), and therefore do not include all information and footnotes to be in conformity with accounting principles generally accepted in the United States (GAAP). The results for the interim periods are not necessarily indicative of the results of operations that may be expected for the year. The unaudited consolidated financial statements contained herein should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2024.
The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of our assets, liabilities, revenues and expenses and related disclosures. Some of the estimates result from judgments that can be subjective and complex and, consequently, actual results in future periods might differ from these estimates.
Adopted Accounting Guidance
The Company has not adopted any new accounting guidance in 2025
.
Prospective Accounting Guidance
In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2023-09, Improvements to Income Tax Disclosures, that requires expanded income tax disclosures, including the disaggregation of existing disclosures related to the tax rate reconciliation and income taxes paid. The guidance is effective for our Annual Report on Form 10-K for the year ended December 31, 2025. Early adoption of the new standard is permitted; however, we have not elected to early adopt the standard. Prospective application is required, with retrospective application permitted. We have analyzed the impacts and will provide the required disclosures upon adoption.
In November 2024, the FASB issued Accounting Standards Update 2024-03, Expense Disaggregation Disclosures, which requires disclosure of specified information about certain costs and expenses in the notes to the financial statements. The guidance is effective for our Annual Report on Form 10-K for the year ended December 31, 2027, and interim reporting periods beginning in 2028. Early adoption of the new standard is permitted; however, we have not elected to early adopt the standard. Prospective application is required, with retrospective application permitted. We are evaluating the impact of this disclosure-only requirement.
Note 2. Restricted Stock, Restricted Stock Units, and Stock Options
As of June 30, 2025
, the Company has
three
equity
incentive plans: the AMERISAFE Non-Employee Director Restricted Stock Plan (the Restricted Stock Plan), the AMERISAFE 2012 Equity and Incentive Compensation Plan (the 2012 Incentive Plan) and the 2022 Equity and Incentive Compensation Plan (the 2022 Incentive Plan). In connection with the approval of the 2022 Incentive Plan by the Company’s shareholders at the annual meeting of shareholders in June 2022, no further grants will be made under the 2012
10
Incentive
Plan. All grants made under the 2012 Incentive Plan will continue in effect, subject to the terms and conditions of the 2012 Incentive Plan. See Note 12 to our consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2024 for additional information regarding the Company’s incentive plans.
During the six months ended June 30, 2025, the Company issued
19,737
shares of common stock to executive officers pursuant to vested performance awards. During the six months ended June 30, 2025
, the Company awarded
11,452
shares of restricted common stock to non-employee directors. The market value of these shares totaled $
1.4
million. During the six months ended June 30, 2024, the Company issued
12,993
shares of common stock to executive officers pursuant to vested performance awards. During the six months ended June 30, 2024, the Company awarded
12,110
shares of restricted common stock to non-employee directors. The market value of these shares totaled $
1.1
million.
The Company had
no
stock options outstanding as of
June 30, 2025.
The Company recognized share-based compensation expense of $
0.7
million in the quarter ended June 30, 2025 and $
0.7
million in the same period in 2024. The Company recognized share-based compensation expense of $
1.8
million in the six months ended June 30, 2025 and $
1.4
million in the same period in 2024
.
Note 3. Earnings Per Share
The Company computes earnings per share (EPS) in accordance with FASB Accounting Standards Codification (ASC) Topic 260,
Earnings Per Share
. The Company has no participating unvested common shares which contain nonforfeitable rights to dividends and applies the treasury stock method in computing basic and diluted earnings per share.
Basic EPS is calculated by dividing net income by the weighted-average number of common shares outstanding during the period.
The diluted EPS calculation includes potential common shares assumed issued under the treasury stock method, which reflects the potential dilution that would occur if any restricted stock or RSUs vest.
Three Months Ended
Six Months Ended
June 30,
June 30,
2025
2024
2025
2024
(in thousands, except share and per share amounts)
Basic EPS
:
Net income
$
13,955
$
10,993
$
22,904
$
27,918
Basic weighted average common shares
19,038,360
19,083,232
19,037,339
19,102,700
Basic earnings per common share
$
0.73
$
0.58
$
1.20
$
1.46
Diluted EPS
:
Net income
$
13,955
$
10,993
$
22,904
$
27,918
Diluted weighted average common shares:
Weighted average common shares
19,038,360
19,083,232
19,037,339
19,102,700
Restricted stock and RSUs
81,240
63,062
83,191
68,506
Diluted weighted average common shares
19,119,600
19,146,294
19,120,530
19,171,206
Diluted earnings per common share
$
0.73
$
0.57
$
1.20
$
1.46
11
Note 4. Investments
The amortized cost, allowance for credit losses, carrying amount, gross unrecognized gains and losses, and the fair value of those investments classified as held-to-maturity at
June 30, 2025 are summarized as follows:
Amortized
Cost
Allowance for Credit Losses
Carrying
Amount
Gross
Unrecognized
Gains
Gross
Unrecognized
Losses
Fair
Value
(in thousands)
States and political subdivisions
$
351,907
$
(
27
)
$
351,880
$
593
$
(
13,102
)
$
339,371
Corporate bonds
21,899
(
61
)
21,838
6
(
697
)
21,147
U.S. agency-based mortgage-backed securities
2,573
—
2,573
21
(
114
)
2,480
U.S. Treasury securities and obligations
of U.S. government agencies
8,522
—
8,522
9
(
183
)
8,348
Asset-backed securities
9
—
9
—
—
9
Totals
$
384,910
$
(
88
)
$
384,822
$
629
$
(
14,096
)
$
371,355
The amortized cost, gross unrealized gains and losses, fair value, and the allowance for credit losses of those investments classified as available-for-sale at
June 30, 2025 are summarized as follows:
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair
Value
Allowance for
Credit Losses
(in thousands)
States and political subdivisions
$
165,127
$
164
$
(
9,592
)
$
155,699
$
—
Corporate bonds
131,993
2,136
(
1,276
)
132,853
—
U.S. agency-based mortgage-backed securities
4,265
—
(
377
)
3,888
—
U.S. Treasury securities and obligations
of U.S. government agencies
14,901
—
(
626
)
14,275
—
Totals
$
316,286
$
2,300
$
(
11,871
)
$
306,715
$
—
The cost, gross unrealized gains and losses, and the fair value of equity securities at
June 30, 2025 are summarized as follows:
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair
Value
(in thousands)
Equity securities:
Domestic common stock - Exchange Traded Funds
$
31,164
$
21,287
$
—
$
52,451
Total equity securities
$
31,164
$
21,287
$
—
$
52,451
The amortized cost, allowance for credit losses, carrying amount, gross unrecognized gains and losses, and the fair value of those investments classified as held-to-maturity at
December 31, 2024 are summarized as follows:
Amortized
Cost
Allowance for Credit Losses
Carrying
Amount
Gross
Unrecognized
Gains
Gross
Unrecognized
Losses
Fair
Value
(in thousands)
States and political subdivisions
$
368,056
$
(
30
)
$
368,026
$
1,810
$
(
13,568
)
$
356,268
Corporate bonds
33,849
(
86
)
33,763
6
(
1,099
)
32,670
U.S. agency-based mortgage-backed securities
2,781
—
2,781
11
(
149
)
2,643
U.S. Treasury securities and obligations
of U.S. government agencies
8,478
—
8,478
11
(
362
)
8,127
Asset-backed securities
13
—
13
—
—
13
Totals
$
413,177
$
(
116
)
$
413,061
$
1,838
$
(
15,178
)
$
399,721
12
The amortized cost, gross unrealized gains and losses, fair value, and the allowance for credit losses of those investments classified as available-for-sale at
December 31, 2024 are summarized as follows:
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair
Value
Allowance for
Credit Losses
(in thousands)
States and political subdivisions
$
156,488
$
148
$
(
8,430
)
$
148,206
$
—
Corporate bonds
143,070
1,248
(
2,783
)
141,535
—
U.S. agency-based mortgage-backed securities
4,545
—
(
486
)
4,059
—
U.S. Treasury securities and obligations
of U.S. government agencies
14,872
—
(
922
)
13,950
—
Totals
$
318,975
$
1,396
$
(
12,621
)
$
307,750
$
—
The cost, gross unrealized gains and losses, and the fair value of equity securities at
December 31, 2024 are summarized as follows:
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair
Value
(in thousands)
Equity securities:
Domestic common stock - Exchange Traded Funds
$
36,020
$
22,609
$
—
$
58,629
Total equity securities
$
36,020
$
22,609
$
—
$
58,629
A summary of the carrying amounts and fair value of investments in fixed maturity securities classified as held-to-maturity, by contractual maturity, is as follows:
June 30, 2025
December 31, 2024
Carrying
Amount
Fair
Value
Carrying
Amount
Fair
Value
(in thousands)
Maturity:
Within one year
$
40,378
$
40,159
$
49,303
$
48,831
After one year through five years
83,088
80,890
93,087
89,418
After five years through ten years
122,326
117,611
115,307
109,812
After ten years
136,448
130,206
152,570
149,004
U.S. agency-based mortgage-backed securities
2,573
2,480
2,781
2,643
Asset-backed securities
9
9
13
13
Totals
$
384,822
$
371,355
$
413,061
$
399,721
A summary of the amortized cost and fair value of investments in fixed maturity securities classified as available-for-sale, by contractual maturity, is as follows:
June 30, 2025
December 31, 2024
Amortized
Cost
Fair
Value
Amortized
Cost
Fair
Value
(in thousands)
Maturity:
Within one year
$
33,100
$
32,828
$
23,944
$
23,806
After one year through five years
79,530
78,719
97,996
95,500
After five years through ten years
73,355
72,208
71,233
68,494
After ten years
126,036
119,072
121,257
115,891
U.S. agency-based
mortgage-backed securities
4,265
3,888
4,545
4,059
Totals
$
316,286
$
306,715
$
318,975
$
307,750
13
The following table summarizes the fair value and gross unrealized losses on securities classified as available-for-sale, aggregated by major investment category and length of time that the individual securities have been in a continuous unrealized loss position as of
June 30, 2025
.
Less Than 12 Months
12 Months or Greater
Total
Fair Value of
Investments
with
Unrealized
Losses
Gross
Unrealized
Losses
Fair Value of
Investments
with
Unrealized
Losses
Gross
Unrealized
Losses
Fair Value of
Investments
with
Unrealized
Losses
Gross
Unrealized
Losses
(in thousands)
June 30, 2025
Available-for-Sale
States and political subdivisions
$
74,676
$
3,173
$
70,884
$
6,419
$
145,560
$
9,592
Corporate bonds
13,152
120
37,848
1,156
51,000
1,276
U.S. agency-based mortgage-backed securities
—
—
3,888
377
3,888
377
U.S. Treasury securities and obligations
of U.S. government agencies
—
—
14,275
626
14,275
626
Total available-for-sale securities
$
87,828
$
3,293
$
126,895
$
8,578
$
214,723
$
11,871
At June 30, 2025, we held
185
individual fixed maturity securities classified as available-for-sale that were in an unrealized loss position.
The following table summarizes the fair value and gross unrealized losses on securities classified as available-for-sale, aggregated by major investment category and length of time that the individual securities have been in a continuous unrealized loss position as of December 31,
2024
.
Less Than 12 Months
12 Months or Greater
Total
Fair Value of
Investments
with
Unrealized
Losses
Gross
Unrealized
Losses
Fair Value of
Investments
with
Unrealized
Losses
Gross
Unrealized
Losses
Fair Value of
Investments
with
Unrealized
Losses
Gross
Unrealized
Losses
(in thousands)
December 31, 2024
Available-for-Sale
States and political subdivisions
$
100,190
$
5,748
$
27,446
$
2,682
$
127,636
$
8,430
Corporate bonds
71,069
1,790
19,000
993
90,069
2,783
U.S. agency-based mortgage-backed securities
3,840
446
219
40
4,059
486
U.S. Treasury securities and obligations
of U.S. government agencies
—
—
13,950
922
13,950
922
Total available-for-sale securities
$
175,099
$
7,984
$
60,615
$
4,637
$
235,714
$
12,621
The following table illustrates the changes in the allowance for credit losses by major security type of the investments classified as held-to-maturity for the quarter ended
June 30, 2025.
States and
Political
Subdivisions
Corporate
Bonds
U.S. Agency
-Based
Mortgage-
Backed
Securities
U.S.
Treasury
Securities
and
Obligations
of U.S.
Government
Agencies
Asset-Backed
Securities
Totals
(in thousands)
Balance at March 31, 2025
$
29
$
71
$
—
$
—
$
—
$
100
Provision for credit loss benefit
(
2
)
(
10
)
—
—
—
(
12
)
Balance at June 30, 2025
$
27
$
61
$
—
$
—
$
—
$
88
14
The following table illustrates the changes in the allowance for credit losses by major security type of the investments classified as held-to-maturity for the
six months ended June 30, 2025.
States and
Political
Subdivisions
Corporate
Bonds
U.S. Agency
-Based
Mortgage-
Backed
Securities
U.S.
Treasury
Securities
and
Obligations
of U.S.
Government
Agencies
Asset-Backed
Securities
Totals
(in thousands)
Balance at December 31, 2024
$
30
$
86
$
—
$
—
$
—
$
116
Provision for credit loss benefit
(
3
)
(
25
)
—
—
—
(
28
)
Balance at June 30, 2025
$
27
$
61
$
—
$
—
$
—
$
88
As of June 30, 2025, the Company has established an allowance for credit losses on
390
held-to-maturity securities totaling $
0.1
million. Most of those securities were issued by states and political subdivisions (
378
securities) and corporate bonds (
11
securities).
The Company has
no
allowance for credit losses on investments classified as available-for-sale for the period ended
June 30, 2025.
The credit rating used for held-to-maturity fixed income securities is the rating for each security as published by Moody’s, Standard and Poor's, and Fitch to determine the probability of default. If there are two ratings, the lower rating is used. If there are three ratings, the median rating is used. If there is one rating, that rating is used. For corporate fixed income securities (given a rating), the probability of default comes from Moody’s annual study of corporate bond defaults published each February. The maximum maturity using the default rate is
20
years (any maturity greater than
20
years will use the 20-year rate). For municipal fixed income securities (given a rating), the probability of default comes from Moody’s study of municipal bond defaul
ts published annually.
The calculation of the credit loss allowance takes the amortized cost of the fixed income security and assumes default and recovery based on the average recovery rates from the Moody’s default studies. The amortized cost of the security, plus any accrued interest, minus the amount recovered, is the estimated full amount the Company could lose in a default scenario. This amount is then multiplied by the probability of default to determine the allowance for credit loss. The lower the security is rated, the higher likelihood of default, and therefore a higher allowance for credit loss. The longer to the maturity date of a security, the higher the default risk.
The table below presents the amortized cost of held-to-maturity securities aggregated by credit quality indicator as of
June 30, 2025.
States and
Political
Subdivisions
Corporate
Bonds
U.S. Agency
-Based
Mortgage-
Backed
Securities
U.S.
Treasury
Securities
and
Obligations
of U.S.
Government
Agencies
Asset-Backed
Securities
Totals
Amortized Cost
(in thousands)
AAA/AA/A ratings
$
351,252
$
9,987
$
2,573
$
8,522
$
—
$
372,334
Baa/BBB ratings
655
11,912
—
—
9
12,576
Total
$
351,907
$
21,899
$
2,573
$
8,522
$
9
$
384,910
15
Net realized gains in the quarter ended June 30, 2025 were $
3.1
million and net realized losses in the quarter ended June 30, 2024 were $
0.1
million, both resulting from the sales of equity and fixed maturity securities classified as available-for-sale.
Net realized gains in the six months ended June 30, 2025 were $
3.1
million and net realized losses in the six months ended June 30, 2024 were $
0.3
million, both resulting primarily from the sales of equity and fixed maturity securities classified as available-for-sale.
During the second quarter of 2025, we recognized through income $
1.8
million of net unrealized gains on equity securities. During the second quarter of 2024, we recognized through income $
0.1
million of net unrealized losses on equity securities.
During the six months ended June 30, 2025, we recognized through income $
1.3
million of net unrealized losses on equity securities. During the six months ended June 30, 2024, we recognized through income $
4.7
million of net unrealized gains on equity securities.
Investment income is recognized as it is earned. The discount or premium on fixed maturity securities is amortized using the “constant yield” method. Anticipated prepayments, where applicable, are considered when determining the amortization of premiums or discounts. Realized investment gains and losses are determined using the specific identification method.
The Company invests in Exchange Traded Funds with the objective of diversifying portfolio holdings.
Note 5. Income Taxes
In accordance with FASB ASC Topic 740, “Income Taxes,” we provide for the recognition and measurement of deferred income tax benefits based on the likelihood of their realization in future years. As of June 30, 2025 and 2024
, we had
no
valuation allowance against our deferred income tax assets and liabilities.
Income tax expense from operations is different from the amount computed by applying the U.S. federal income tax statutory rate of
21
% to income before income taxes primarily due to the impact of tax-exempt investment income and state income tax accruals.
The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. There were
no
uncertain tax positions for either of the periods ended
June 30, 2025 and 2024.
Tax years 2021 through 2024
are subject to examination by the federal and state taxing authorities.
Note 6. Loss Reserves
We record reserves for estimated losses under insurance policies that we write and for loss adjustment expenses related to the investigation and settlement of policy claims. Our reserves for loss and loss adjustment expenses represent the estimated cost of all reported and unreported loss and loss adjustment expenses incurred and unpaid as of a given point in time. The reserves for loss and loss adjustment expenses are estimated using individual case-basis valuations, statistical analyses and estimates based upon experience for unreported claims and their associated loss and loss adjustment expenses. Such estimates may be more or less than the amounts ultimately paid when the claims are settled. The estimates are subject to the effects of trends in loss severity and frequency. Although considerable variability is inherent in these estimates, management believes that the reserves for loss and loss adjustment expenses are adequate. The estimates are continually reviewed internally and periodically evaluated with our independent actuary. Adjustments are made as experience develops and new information becomes known. Any such adjustments are included in income from current operations. See Note 9 to our consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2024 for additional information regarding our loss and loss adjustment expense development.
16
The following table provides the Company’s liability for unpaid loss and loss adjustment expenses, net of related amounts recoverable from reinsurers, for the
six months ended June 30, 2025 and 2024:
Six Months Ended June 30,
2025
2024
(in thousands)
Balance, beginning of period
$
651,309
$
673,994
Less amounts recoverable from reinsurers
on unpaid loss and loss adjustment expenses
112,742
119,746
Net balance, beginning of period
538,567
554,248
Add incurred related to:
Current accident year
98,170
97,326
Prior accident years
(
17,351
)
(
16,711
)
Total incurred
80,819
80,615
Less paid related to:
Current accident year
15,305
12,670
Prior accident years
90,805
74,940
Total paid
106,110
87,610
Net balance, end of period
513,276
547,253
Add amounts recoverable from reinsurers
on unpaid loss and loss adjustment expenses
110,819
116,732
Balance, end of period
$
624,095
$
663,985
The foregoing reconciliation reflects favorable development of the net reserves at June 30, 2025 and June 30, 2024. The favorable development reduced loss and loss adjustment expenses incurred by $
17.4
million and $
16.7
million during each of the first six months of 2025 and 2024, respectively. The revisions to the Company’s reserves reflect new information gained by claims adjusters in the normal course of adjusting claims and is reflected in the financial statements when the information becomes available. It is typical for more serious claims to take several years or longer to settle and the Company continually revises estimates as more information about claimants’ medical conditions and potential disability becomes known and the claims get closer to being settled. Multiple factors can cause loss development both unfavorable and favorable. The favorable loss development we experienced across accident years was largely due to two factors: (1) lower than expected severity of injuries in these accident years compared to our original and revised estimates; and (2) favorable case reserve development from closed claims and claims where the worker had reached maximum medical improvement. We believe the favorable case reserve development resulted primarily from an intensive claims management focus with the Company actively seeking to settle claims.
The table below presents the change in the allowance for credit losses on amounts recoverable from reinsurers for the three and
six months ended June 30, 2025 and 2024.
Three Months Ended
Six Months Ended
June 30,
June 30,
2025
2024
2025
2024
(in thousands)
Balance, beginning of period
$
294
$
309
$
300
$
360
Provision for credit loss expense (benefit)
(
4
)
13
(
10
)
(
38
)
Balance, end of period
$
290
$
322
$
290
$
322
Note 7. Comprehensive
Income and Accumulated Other Comprehensive Loss
Comprehensive income includes net income plus unrealized gains and losses on our available-for-sale investment securities, net of tax. In reporting comprehensive income on a net basis in the statements of comprehensive income
, we used a
21
% tax rate in
2025 and 2024. The difference between net income as reported and comprehensive income was due primarily to changes in unrealized gains and losses, net of tax on available-for-sale debt securities.
17
The following table illustrates the changes in the balance of each component of accumulated other comprehensive
loss for each period presented in the interim financial statements.
Three Months Ended
Six Months Ended
June 30,
June 30,
2025
2024
2025
2024
(in thousands)
Balance, beginning of period
$
(
7,269
)
$
(
8,740
)
$
(
8,875
)
$
(
7,194
)
Other comprehensive income (loss) before
reclassification
(
650
)
(
866
)
951
(
2,503
)
Amounts reclassified from accumulated other
comprehensive loss
358
46
363
137
Net current period other comprehensive
income (loss)
(
292
)
(
820
)
1,314
(
2,366
)
Balance, end of period
$
(
7,561
)
$
(
9,560
)
$
(
7,561
)
$
(
9,560
)
The sale or credit loss allowance adjustment of an available-for-sale security results in amounts being reclassified from accumulated other comprehensive loss
to current period net income.
The effects of reclassifications out of accumulated other comprehensive
loss
by the respective line items of net income are presented in the following table.
Component of Accumulated Other
Three Months Ended
Six Months Ended
Affected line item in the
Comprehensive Loss
June 30,
June 30,
statement of income
2025
2024
2025
2024
(in thousands)
Unrealized losses on
debt securities, net of tax
$
(
453
)
$
(
58
)
$
(
459
)
$
(
174
)
Net realized gains (losses)
on investments
(
453
)
(
58
)
(
459
)
(
174
)
Income before income taxes
Unrealized losses on
debt securities, net of tax
95
12
96
37
Income tax expense
$
(
358
)
$
(
46
)
$
(
363
)
$
(
137
)
Net income
Note 8. Fair Values of Financial Instruments
The Company carries available-for-sale securities and equity securities at fair value in our consolidated financial statements and determines fair value measurements and disclosure in accordance with FASB ASC Topic 820,
Fair Value Measurements and Disclosures.
The Company determines the fair values of its financial instruments based on the fair value hierarchy established in ASC Topic 820, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard defines fair value, describes three levels of inputs that may be used to measure fair value, and expands disclosures about fair value measurements.
Fair value is defined in ASC Topic 820 as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is the price to sell an asset or transfer a liability and, therefore, represents an exit price, not an entry price. Fair value is the exit price in the principal market (or, if lacking a principal market, the most advantageous market) in which the reporting entity would transact. Fair value is a market-based measurement, not an entity-specific measurement, and, as such, is determined based on the assumptions that market participants would use in pricing the asset or liability. The exit price objective of a fair value measurement applies regardless of the reporting entity’s intent and/or ability to sell the asset or transfer the liability at the measurement date.
ASC Topic 820 requires the use of valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities. The income approach uses valuation techniques to convert future amounts, such as cash flows or earnings, to a single present value amount on a discounted basis. The cost approach is based on the amount that currently would be required to replace the service capacity of an asset, also known as current replacement cost. Valuation techniques used to measure fair value are to be consistently applied.
18
In ASC Topic 820, inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, for example, the risk inherent in a particular valuation technique used to measure fair value (such as a pricing model) and/or the risk inherent in the inputs to the valuation technique. Inputs may be observable or unobservable:
•
Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity.
•
Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.
Valuation techniques used to measure fair value are intended to maximize the use of observable inputs and minimize the use of unobservable inputs. ASC Topic 820 establishes a fair value hierarchy that prioritizes the use of inputs used in valuation techniques into the following three levels:
•
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.
•
Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability, or inputs that are derived principally from or corroborated by observable market data.
•
Level 3 inputs are unobservable inputs for the asset or liability. Unobservable inputs are to be used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date.
In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon internally developed models that primarily use, as inputs, observable market-based parameters.
The fair values of the Company’s investments are based upon prices provided by an independent pricing service. The Company has reviewed these prices for reasonableness and has not adjusted any prices received from the independent provider. Securities reported at fair value utilizing Level 1 inputs represent assets whose fair value is determined based upon observable unadjusted quoted market prices for identical assets in active markets. Securities reported at fair value using Level 2 inputs represent assets whose fair value is determined using observable market information such as previous day trade prices, quotes from less active markets or quoted prices of securities with similar characteristics. There were no transfers between Level 1 and Level 2 during the six months ended June 30, 2025.
At
June 30, 2025, assets measured at fair value on a recurring basis are summarized below:
June 30, 2025
Level 1
Inputs
Level 2
Inputs
Level 3
Inputs
Total Fair
Value
(in thousands)
Financial instruments carried at fair value, classified as a part of:
Securities available-for-sale—fixed maturity:
States and political subdivisions
$
—
$
155,699
$
—
$
155,699
Corporate bonds
—
132,853
—
132,853
U.S. agency-based mortgage-backed securities
—
3,888
—
3,888
U.S. Treasury securities
14,275
—
—
14,275
Total securities available-for-sale—fixed maturity
14,275
292,440
—
306,715
Equity securities:
Domestic common stock - Exchange Traded Funds
52,451
—
—
52,451
Total
$
66,726
$
292,440
$
—
$
359,166
19
At
June 30, 2025, assets measured at amortized cost net of allowance for credit losses are summarized below:
June 30, 2025
Level 1
Inputs
Level 2
Inputs
Level 3
Inputs
Total Fair
Value
(in thousands)
Securities held-to-maturity—fixed maturity:
States and political subdivisions
$
—
$
339,371
$
—
$
339,371
Corporate bonds
—
21,147
—
21,147
U.S. agency-based mortgage-backed securities
—
2,480
—
2,480
U.S. Treasury securities
8,348
—
—
8,348
Asset-backed securities
—
9
—
9
Total held-to-maturity
$
8,348
$
363,007
$
—
$
371,355
At
December 31, 2024, assets measured at fair value on a recurring basis are summarized below:
December 31, 2024
Level 1
Inputs
Level 2
Inputs
Level 3
Inputs
Total Fair
Value
(in thousands)
Financial instruments carried at fair value, classified as a part of:
Securities available-for-sale—fixed maturity:
States and political subdivisions
$
—
$
148,206
$
—
$
148,206
Corporate bonds
—
141,535
—
141,535
U.S. agency-based mortgage-backed securities
—
4,059
—
4,059
U.S. Treasury securities
13,950
—
—
13,950
Total securities available-for-sale—fixed maturity
$
13,950
$
293,800
$
—
$
307,750
Equity securities:
Domestic common stock - Exchange Traded Funds
58,629
—
—
58,629
Total
$
72,579
$
293,800
$
—
$
366,379
At
December 31, 2024, assets measured at amortized cost net of allowance for credit losses are summarized below:
December 31, 2024
Level 1
Inputs
Level 2
Inputs
Level 3
Inputs
Total Fair
Value
(in thousands)
Securities held-to-maturity—fixed maturity:
States and political subdivisions
$
—
$
356,268
$
—
$
356,268
Corporate bonds
—
32,670
—
32,670
U.S. agency-based mortgage-backed securities
—
2,643
—
2,643
U.S. Treasury securities
8,127
—
—
8,127
Asset-backed securities
—
13
—
13
Total held-to-maturity
$
8,127
$
391,594
$
—
$
399,721
The Company determines fair value amounts for financial instruments using available third-party market information. When such information is not available, the Company determines the fair value amounts using appropriate valuation methodologies. Nonfinancial instruments such as real estate, property and equipment, deferred policy acquisition costs, deferred income taxes and loss and loss adjustment expense reserves are excluded from the fair value disclosure.
Cash and Cash Equivalents
—The carrying amounts reported in the accompanying consolidated balance sheets for these financial instruments approximate their fair values, which are characterized as Level 1 assets.
Investments
—The fair values for fixed maturity and equity securities are based on prices obtained from an independent pricing service. Equity and treasury securities are characterized as Level 1 assets, as their fair values are based on quoted prices in active markets. Fixed maturity securities, other than treasury securities, are characterized as Level 2 assets, as their fair values are determined using observable market inputs.
Short Term Investments
—The carrying amounts reported in the accompanying consolidated balance sheets for these financial instruments approximate their fair values. These securities are characterized as Level 2 assets in the fair value hierarchy.
20
The following table summarizes the carrying amounts and corresponding fair values for financial instruments:
As of June 30, 2025
As of December 31, 2024
Carrying
Amount
Fair
Value
Carrying
Amount
Fair
Value
(in thousands)
Assets:
Fixed maturity securities—held-to-maturity
$
384,822
$
371,355
$
413,061
$
399,721
Fixed maturity securities—available-for-sale
306,715
306,715
307,750
307,750
Equity securities
52,451
52,451
58,629
58,629
Short-term investments
14,900
14,900
9,338
9,338
Cash and cash equivalents
48,465
48,465
44,045
44,045
Note 9. Treasury Stock
The Company’s Board of Directors (the Board) initiated a share repurchase program in February 2010. In October 2016
, the Board reauthorized this program with a limit of $
25.0
million with no expiration date. As of
June 30, 2025, $
2.5
million was available for future repurchases. The repurchases may be effected from time to time pursuant to trading plans meeting the requirements of Rule 10b5-1 under the Exchange Act. The share repurchase program does not obligate the Company to repurchase any shares of the Company's common stock and may be modified, increased, suspended or terminated at the discretion of the Board. The Board's determinations will depend on a variety of factors including, but not limited to, the market conditions and applicable regulatory considerations. It is anticipated that any future repurchases will be funded from available capital.
During the three and six months ended June 30, 2025, the Company repurchased
62,757
shares of its common stock under the share repurchase program for $
2.8
million, or an average price of $
44.55
per share, including commissions and excise tax. During the three and six months ended June 30, 2024, the Company repurchased
91,825
shares of its common stock under the share repurchase program.
I
n July 2025, the Company announced that the Board reauthorized the share repurchase program that replaces the Company's prior program, authorizing the repurchase of shares of the Company's common stock in an aggregate amount of up to $
25.0
million with no expiration date. As of July 24, 2025, $
25.0
million was available for future repurchases of the Company’s common stock under the repurchase program.
Note 10. Segment Reporting
The Company operates as a
single
reportable segment, Insurance Operations, through our wholly-owned subsidiaries. Profits, losses and assets are evaluated on a consolidated basis.
We are a specialty provider of workers’ compensation insurance focused on small to mid-sized employers engaged in high hazard industries. Our Insurance Operations segment derives premium revenues from the sales of workers’ compensation insurance through independent agencies, including retail and wholesale brokers and agents. The accounting policies of the Insurance Operations are the same as those described in the "Summary of Significant Accounting Policies" in Note 1 to our consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2024.
Two of the key financial measures used to evaluate our performance are return on average equity and growth in book value per share. We calculate return on average equity by dividing annual net income by the average of annual shareholders’ equity. We calculate book value per share by dividing ending shareholders’ equity by the number of common shares outstanding.
The measure of segment assets is reported on the balance sheet as total consolidated assets.
The Company does not have intra-entity sales or asset transfers.
The Company is a monoline insurance company operating solely within the U.S. and does
no
t have revenue from transactions with a single policyholder accounting for 10% or more of its revenues.
There are no differences from our Annual Report on Form 10-K for the year ended December 31, 2024 in the basis of segmentation or in the basis of measurement of segment profit or loss.
Note 11. Subsequent Events
21
On July 4,2025, the One Big Beautiful Bill Act (OBBBA) was enacted and includes tax reform provisions that amend, eliminate and extend tax rules under the Inflation Reduction Act of 2022 and the Tax Cuts and Jobs Act of 2017 and makes other changes to the Internal revenue Code of 1986, as amended (the Code). While the Company is reviewing the impact of the OBBBA on the Company, the changes to the Code pursuant to the OBBBA are not expected to have a material impact on the Company's results of operations.
On
July 22, 2025
, the Board declared a regular cash dividend of $
0.39
per share, payable on
September 26, 2025
to shareholders of record as of
September 12, 2025
. The Board considers the declaration and payment of a regular cash dividend each calendar quarter and any such declaration and payment of dividends is at the discretion of the Board.
On July 23, 2025, the Board reauthorized the share repurchase program that replaces the Company's prior program, authorizing the repurchase of shares of the Company's common stock in an aggregate amount of up to $
25.0
million with no expiration date. As of July 24, 2025, $
25.0
million was available for future repurchases of the Company’s common stock under the repurchase program.
22
Item 2. Management’s Discussion and Analysis of
Financial Condition and Results of Operations.
The financial and business analysis below provides information which the Company believes is relevant to an assessment and understanding of its consolidated financial position, results of operations and cash flows. The following discussion should be read in conjunction with the accompanying unaudited consolidated financial statements and the related notes included in Item 1 of Part I of this Quarterly Report on Form 10-Q, together with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024. This discussion includes forward-looking statements that are not guarantees of future performance and are not necessarily indicative of future operating results. See “Forward-Looking Statements” in Part I above for further discussion.
The terms “AMERISAFE,” the “Company,” “we,” “us” or “our” refer to AMERISAFE, Inc. and its consolidated subsidiaries, as the context requires.
Business Overview
AMERISAFE is a holding company that markets and underwrites workers’ compensation insurance through its insurance subsidiaries. Workers’ compensation insurance covers statutorily prescribed benefits that employers are obligated to provide to their employees who are injured in the course and scope of their employment. Our business strategy is focused on providing this coverage to small to mid-sized employers engaged in hazardous industries, principally construction, trucking, logging and lumber, agriculture, manufacturing, maritime, and telecommunications. Employers engaged in hazardous industries typically pay substantially higher than average rates for workers’ compensation insurance compared to employers in other industries, as measured per payroll dollar. These higher premium rates are due to the nature of the work performed and the inherent workplace danger of our target employers. Hazardous industry employers also tend to have less frequent but more severe claims as compared to employers in other industries due to the nature of their businesses. We provide proactive safety reviews of most employers’ workplaces. These safety reviews are a vital component of our underwriting process and are aimed at promoting safer workplaces. We utilize intensive claims management practices that we believe permit us to effectively manage the overall cost of our claims. In addition, our audit services ensure that our policyholders pay the appropriate premiums required under the terms of their policies and enable us to monitor payroll patterns that cause underwriting, safety or fraud concerns. We believe that the higher premiums typically paid by our policyholders, together with our disciplined underwriting and safety, claims and audit services, provide us with the opportunity to earn attractive returns for our shareholders.
We actively market our insurance in 27 states through independent agencies (including retail and wholesale brokers and agents), as well as through our wholly owned insurance agency subsidiary. We are also licensed in an additional 20 states, the District of Columbia, and the U.S. Virgin Islands.
Critical Accounting Policies
Understanding our accounting policies is key to understanding our financial statements. Management considers some of these policies to be very important to the presentation of our financial results because they require us to make significant estimates and assumptions. These estimates and assumptions affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures. Some of the estimates result from judgments that can be subjective and complex and, consequently, actual results in future periods might differ from these estimates.
Management believes that the most critical accounting policies relate to the reporting of reserves for loss and loss adjustment expenses, including losses that have occurred but have not been reported prior to the reporting date, amounts recoverable from reinsurers, premiums receivable, assessments, deferred policy acquisition costs, deferred income taxes, credit losses on investment securities, and share-based compensation. These critical accounting policies are more fully described in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Annual Report on Form 10-K for the year ended December 31, 2024. We have not changed any of these policies from those previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2024.
23
Results of Operations
The following table summarizes our consolidated financial results for the three and six months ended June 30, 2025 and 2024.
Three Months Ended
Six Months Ended
June 30,
June 30,
2025
2024
2025
2024
(dollars in thousands, except percentages and per share data)
(unaudited)
Gross premiums written
$
79,704
$
76,428
$
163,488
$
156,502
Net premiums earned
69,381
68,633
138,266
137,079
Net investment income
6,691
7,447
13,343
14,813
Total revenues
81,088
75,830
153,685
156,319
Total expenses
63,633
62,086
125,009
121,830
Net income
13,955
10,993
22,904
27,918
Diluted earnings per common share
$
0.73
$
0.57
$
1.20
$
1.46
Other Key Measures
Net combined ratio (1)
91.7
%
90.5
%
90.5
%
88.8
%
Return on average equity (2)
21.2
%
14.6
%
17.5
%
18.8
%
Book value per share (3)
$
13.96
$
15.78
$
13.96
$
15.78
(1)
The net combined ratio is calculated by dividing the sum of loss and loss adjustment expenses incurred, underwriting and certain other operating costs, commissions, salaries and benefits, and policyholder dividends by net premiums earned in the current period. The net combined ratio is a key measure of underwriting performance traditionally used in the insurance industry. A net combined ratio under 100% generally reflects profitable underwriting results.
(2)
Return on average equity is calculated by dividing the annualized net income by the average shareholders’ equity for the applicable period.
(3)
Book value per share is calculated by dividing shareholders’ equity by the total outstanding shares of our common stock as of the end of the reported period.
Consolidated Results of Operations for Three Months Ended June 30, 2025 Compared to June 30, 2024
Gross Premiums Written
. Gross premiums written for the quarter ended June 30, 2025 were $79.7 million, compared to $76.4 million for the same period in 2024, an increase of 4.3%. The increase was attributable to a $8.5 million increase in voluntary premiums on policies written during the period and a $0.5 million increase in residual market premiums. These increases were partially offset by a $5.8 million decrease in premiums resulting from payroll audits and related premium adjustments for policies written in previous quarters.
Net Premiums Written
. Net premiums written for the quarter ended June 30, 2025 were $75.5 million, compared to $72.4 million for the same period in 2024, an increase of 4.3%. The increase was primarily attributable to the increase in gross premiums written. As a percentage of gross premiums earned, ceded premiums were 5.7% for the second quarter of 2025 compared to 5.5% for the second quarter of 2024. The increase in ceded premiums as a percentage of gross premiums earned is a result of a change in our 2025 reinsurance treaties. For additional information, see Item 1, “Business—Reinsurance” in our Annual Report on Form 10-K for the year ended December 31, 2024.
Net Premiums Earned
. Net premiums earned for the second quarter of 2025 were $69.4 million, compared to $68.6 million for the same period in 2024, an increase of 1.1%. The increase was primarily attributable to the increase in net premiums written during the period.
24
Net Investment Income
. Net investment income for the quarter ended June 30, 2025 was $6.7 million, compared to $7.4 million for the same period in 2024, a decrease of 10.2%. The decrease was due to lower average invested asset balances in the period compared to the same period in the prior year. Average invested assets, including cash and cash equivalents, were $813.1 million in the quarter ended June 30, 2025 compared to an average of $888.7 million for the same period in 2024, a decrease of 8.5%. The pre-tax investment yield on our investment portfolio was 3.3% per annum during each of the quarters ended June 30, 2025 and 2024. The tax-equivalent yield on our investment portfolio was 3.9% per annum for the quarter ended June 30, 2025 compared to 3.8% per annum for the same period in 2024. The tax-equivalent yield is calculated using the effective interest rate and the appropriate marginal tax rate.
Net Realized Gains (Losses) on Investments
. Net realized gains on investments for the three months ended June 30, 2025 were $3.1 million compared to net realized losses of $0.1 million for the same period in 2024. Both net realized gains in the second quarter of 2025 and net realized losses in the second quarter of 2024 were mostly attributable to sales of equity and fixed maturity securities classified as available-for-sale.
Net Unrealized Gains (Losses) on Equity Securities
. The market value of our equity securities increased by $1.8 million for the three months ended June 30, 2025 compared to a decrease of $0.1 million for the same period in 2024.
Loss and Loss Adjustment Expenses Incurred
. Loss and loss adjustment expenses (LAE) incurred totaled $40.7 million for the three months ended June 30, 2025, compared to $40.6 million for the same period in 2024, an increase of $0.1 million, or 0.1%. The current accident year loss and LAE incurred totaled $49.3 million for the three months ended June 30, 2025, compared to $48.7 million for the same period in 2024. As of June 30, 2025, our initial estimate for loss and LAE for accident years 2025 and 2024 remains at 71.0% of net premiums earned, and is based on long-term claim frequency and severity trends, as well as medical inflation. We recorded favorable prior accident year development of $8.6 million in the second quarter of 2025, compared to favorable prior accident year development of $8.1 million in the same period of 2024, as further discussed below in “Prior Year Development.” Our net loss ratio was 58.6% in the second quarter of 2025, compared to 59.2% for the same period of 2024.
Underwriting and Certain Other Operating Costs, Commissions and Salaries and Benefits
. Underwriting and certain other operating costs, commissions and salaries and benefits for the quarter ended June 30, 2025 were $21.7 million, compared to $20.4 million for the same period in 2024. This increase was primarily due to a $1.1 million decrease in profit sharing reinsurance commission, a $0.5 million increase in insurance related assessments, a $0.3 million increase in mandatory pooling arrangement fees, and a $0.3 million increase in commission expense. Partially offsetting these amounts was a $0.9 million decrease in professional fees. Our expense ratio was 31.3% in the second quarter of 2025 compared to 29.8% in the second quarter of 2024.
Income Tax Expense
. Income tax expense for the three months ended June 30, 2025 was $3.5 million, compared to $2.8 million for the same period in 2024. The effective tax rate for the Company for the quarter ended June 30, 2025 was 20.1% compared to 20.0% in the second quarter of 2024. The increase in the effective tax rate was due to a lower proportion of income from tax-exempt investments for the three months ended June 30, 2025 compared with the same period of 2024.
Consolidated Results of Operations for Six Months Ended June 30, 2025 Compared to June 30, 2024
Gross Premiums Written
. Gross premiums written for the six months ended June 30, 2025 were $163.5 million, compared to $156.5 million for the same period in 2024, an increase of 4.5%. The increase was attributable to a $13.7 million increase in voluntary premiums on policies written during the period and a $0.5 million increase in residual market premiums
.
These increases were partially offset by a $7.1 million decrease in gross premiums written resulting from payroll audits and related premium adjustments for policies written in previous quarters.
Net Premiums Written
. Net premiums written for the six months ended June 30, 2025 were $155.1 million, compared to $148.5 million for the same period in 2024, an increase of 4.4%. The increase was primarily attributable to an increase in gross premiums written. As a percentage of gross premiums earned, ceded premiums were 5.7% for the first six months of 2025, compared to 5.5% in the same period of 2024. The increase in ceded premiums as a percentage of gross premiums earned is a result of a change in our 2025 reinsurance treaties. For additional information, see Item 1, “Business—Reinsurance” in our Annual Report on Form 10-K for the year ended December 31, 2024.
Net Premiums Earned
. Net premiums earned for the six months ended June 30, 2025 were $138.3 million, compared to $137.1 million for the same period in 2024, an increase of 0.9%. The increase was primarily attributable to the increase in net premiums written during the period.
25
Net Investment Income
. Net investment income for the first six months of 2025 was $13.3 million, compared to $14.8 million for the same period in 2024, a decrease of 9.9%. The decrease was due to lower average invested asset balances in the period compared to the same period in the prior year. Average invested assets, including cash and cash equivalents, were $824.1 million in the six months ended June 30, 2025, compared to an average of $895.2 million in the same period in 2024, a decrease of 7.9%. The pre-tax investment yield on our investment portfolio was 3.3% per annum for each of the six months ended June 30, 2025 and 2024. The tax-equivalent yield on our investment portfolio was 3.9% per annum for the first six months of 2025 compared to 3.8% per annum for the same period in 2024. The tax-equivalent yield is calculated using the effective interest rate and the appropriate marginal tax rate.
Net Realized Gains (Losses) on Investments
. Net realized gains on investments for the six months ended June 30, 2025 were $3.1 million compared to net realized losses of $0.3 million for the same period in 2024. Both net realized gains in the first six months of 2025 and net realized losses in the first six months of 2024 were mostly attributable to the sales of equity and fixed maturity securities classified as available-for-sale.
Net Unrealized Gains (Losses) on Equity Securities
. The market value of our equity securities decreased by $1.3 million for the six months ended June 30, 2025 compared to an increase of $4.7 million for the same period in 2024.
Loss and Loss Adjustment Expenses Incurred
. Loss and LAE incurred totaled $80.8 million for the six months ended June 30, 2025, compared to $80.6 million for the same period in 2024, an increase of $0.2 million, or 0.3%. The current accident year loss and LAE incurred totaled $98.2 million for the six months ended June 30, 2025, compared to $97.3 million for the same period in 2024. As of June 30, 2025, our initial estimate for loss and LAE for accident years 2025 and 2024 remains at 71.0% of net premiums earned, and is based on long-term claim frequency and severity trends, as well as medical inflation. We recorded favorable prior accident year development of $17.4 million in the first six months of 2025, compared to favorable prior accident year development of $16.7 million in the same period of 2024, as further discussed below in “Prior Year Development.” Our net loss ratio was 58.5% in the first six months of 2025, compared to 58.8% for the same period of 2024.
Underwriting and Certain Other Operating Costs, Commissions and Salaries and Benefits
. Underwriting and certain other operating costs, commissions and salaries and benefits for the six months ended June 30, 2025 were $42.3 million, compared to $39.1 million for the same period in 2024, an increase of 8.2%. This increase was primarily due to an increase in insurance related assessments of $2.6 million, an increase in compensation expense of $0.9 million and an increase in commission expense of $0.5 million. Offsetting these amounts were a decrease in professional fees of $1.0 million and a $0.4 million decrease in taxes and fees. Our expense ratio was 30.6% in the first six months of 2025 compared to 28.5% for the same period of 2024.
Income Tax Expense.
Income tax expense for the six months ended June 30, 2025 was $5.8 million, compared to $6.6 million for the same period in 2024. The effective tax rate for the Company increased to 20.1% for the six months ended June 30, 2025 from 19.1% for the six months ended June 30, 2024. The increase in the effective tax rate was due to increased state taxes and the movement of the state deferred tax asset for the six months ended June 30, 2025 compared with the six months ended June 30, 2024.
Liquidity and Capital Resources
Our principal sources of operating funds are premiums, investment income and proceeds from sales and maturities of investments. Our primary uses of operating funds include payments of claims and operating expenses. Currently, we pay claims using cash flow from operations and invest the remaining funds.
Net cash used in operating activities was $10.2 million for the six months ended June 30, 2025, which represented a $15.1 million decrease from $4.9 million in net cash provided by operating activities for the six months ended June 30, 2024. This decrease in operating cash flow was due to a $19.3 million increase in losses paid, a $2.1 million decrease in net investment income and a $1.2 million decrease in reinsurance recoveries. Partially offsetting these impacts were a $4.6 million increase in premium collections, a $1.9 million decrease in underwriting expenses paid, a $0.4 million decrease in dividends paid to policyholders and a $0.4 million decrease in federal taxes paid.
Net cash provided by investing activities was $33.1 million for the six months ended June 30, 2025, compared to net cash provided by investment activities of $5.8 million for the same period in 2024. Cash provided by sales and maturities of investments totaled $54.3 million for the six months ended June 30, 2025, compared to $65.6 million for the same period in 2024. A total of $20.2 million in cash was used to purchase investments in the six months ended June 30, 2025, compared to $59.1 million in purchases for the same period in 2024. A total of $1.1 million in cash was used to purchase property and equipment in the six months ended June 30, 2025, compared to $0.8 million for the same period in 2024.
26
Net cash used in financing activities in the six months ended June 30, 2025 was $18.4 million, compared to net cash used in financing activities of $18.8 million for the same period in 2024. In the six months ended June 30, 2025, $14.9 million of cash was used for dividends paid to shareholders compared to $14.2 million in the same period of 2024. In the six months ended June 30, 2025, there were repurchases of outstanding shares of our common stock of $2.8, million compared to $4.1 million for the same period in 2024. Share-based compensation related payroll tax withholding was $0.7 million in the six months ended June 30, 2025, compared to $0.4 million in the same period in 2024.
Investment Portfolio
The carrying value of our investment portfolio, including cash and cash equivalents, totaled $807.4 million at June 30, 2025, compared to $832.8 million at December 31, 2024, a decrease of 3.1%. Purchases of fixed maturity securities are classified as available-for-sale or held-to-maturity at the time of purchase based on the individual security. The Company has the ability and positive intent to hold certain investments until maturity. Therefore, fixed maturity securities classified as held-to-maturity, as defined by FASB ASC Topic 320,
Investments-Debt and Equity Securities
, are recorded at amortized cost net of allowance for credit losses. Our equity securities and fixed maturity securities classified as available-for-sale are reported at fair value.
The composition of our investment portfolio, including cash and cash equivalents, as of June 30, 2025, is shown in the following table:
Carrying
Amount
Percentage of
Portfolio
(in thousands)
Fixed maturity securities—held-to-maturity:
States and political subdivisions
$
351,880
43.6
%
Corporate bonds
21,838
2.6
%
U.S. agency-based mortgage-backed securities
2,573
0.3
%
U.S. Treasury securities and obligations of
U.S. government agencies
8,522
1.1
%
Asset-backed securities
9
—
Total fixed maturity securities—held-to-maturity
384,822
47.6
%
Fixed maturity securities—available-for-sale:
States and political subdivisions
155,699
19.3
%
Corporate bonds
132,853
16.5
%
U.S. agency-based mortgage-backed securities
3,888
0.5
%
U.S. Treasury securities and obligations of
U.S. government agencies
14,275
1.8
%
Total fixed maturity securities—available-for-sale
306,715
38.1
%
Equity securities
52,451
6.5
%
Short-term investments
14,900
1.8
%
Cash and cash equivalents
48,465
6.0
%
Total investments, including cash and cash equivalents
$
807,353
100.0
%
Our debt securities classified as available-for-sale are “marked to market” as of the end of each calendar quarter. As of that date, unrealized gains and losses that are not credit related are recorded to accumulated other comprehensive loss. Any available-for-sale credit related losses would be recognized as a credit loss allowance on the balance sheet with a corresponding adjustment to earnings, limited by the amount that the fair value is less than the amortized cost basis. Both the credit loss allowance and adjustment to net income can be reversed if conditions change.
For our debt securities classified as held-to-maturity, non-credit related unrecognized gains and losses are not recorded in the financial statements until realized. Effective upon the adoption of ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses, management is required to estimate held-to-maturity expected credit related losses and recognize a credit loss allowance on the balance sheet with a corresponding adjustment to earnings. Subsequent adjustments to the estimated expected credit related losses are recognized through earnings within the category “provision for investment related credit loss benefit” and adjustments to the credit loss allowance.
27
Prior Year Development
The Company recorded favorable prior accident year development of $8.6 million in the three months ended June 30, 2025. The table below sets forth the favorable development for the three and six months ended June 30, 2025 and 2024 for accident years 2020 through 2024 and, collectively, for all accident years prior to 2020.
Three Months Ended
Six Months Ended
June 30,
June 30,
2025
2024
2025
2024
(in millions)
Accident Year
2024
$
—
$
—
$
—
$
—
2023
1.2
—
1.2
—
2022
1.5
1.3
2.4
1.3
2021
0.2
1.4
3.6
1.4
2020
2.0
1.8
4.8
3.5
Prior to 2020
3.7
3.6
5.4
10.5
Total net development
$
8.6
$
8.1
$
17.4
$
16.7
The table below sets forth the number of open claims as of June 30, 2025 and 2024, and the number of claims reported and closed during the three and six months then ended.
Three Months Ended
Six Months Ended
June 30,
June 30,
2025
2024
2025
2024
Open claims at beginning of period
3,840
3,812
3,798
4,003
Claims reported
984
988
1,890
1,888
Claims closed
(800
)
(912
)
(1,664
)
(2,003
)
Open claims at end of period
4,024
3,888
4,024
3,888
The number of open claims at June 30, 2025 increased by 136 claims as compared to the number of open claims at June 30, 2024. At June 30, 2025, our incurred amounts for certain accident years, primarily 2017 through 2022, developed more favorably than management previously expected. The revisions to the Company’s reserves reflect new information gained by claims adjusters in the normal course of adjusting claims and is reflected in the Company's financial statements when the information becomes available. It is typical for more serious claims to take several years or longer to settle and the Company continually revises estimates as more information about claimants’ medical conditions and potential disability becomes known and the claims get closer to being settled. Multiple factors can cause both favorable and unfavorable loss development. The favorable loss development we experienced across accident years was largely due to favorable case reserve development from closed claims and claims where the worker had reached maximum medical improvement.
The assumptions we used in establishing our reserves were based on our historical claims data. However, as of June 30, 2025, actual results for certain accident years have been better than our assumptions would have predicted. We do not presently intend to modify our assumptions for establishing reserves in light of recent results. However, if actual results for current and future accident years are consistent with, or different than, our results in these recent accident years, our historical claims data will reflect this change and, over time, will impact the reserves we establish for future claims.
Our reserves for loss and loss adjustment expenses are inherently uncertain and our focus on providing workers’ compensation insurance to employers engaged in hazardous industries generally results in us receiving relatively fewer but more severe claims than many other workers’ compensation insurance companies. As a result of this focus on higher severity, lower frequency business, our reserve for loss and loss adjustment expenses may have greater volatility than other workers’ compensation insurance companies. For additional information, see Item 1, “Business—Loss Reserves” in our Annual Report on Form 10-K for the year ended December 31, 2024.
28
Item 3. Quantitative and Qualitati
ve Disclosures About Market Risk.
Market risk is the risk of potential economic loss principally arising from adverse changes in the fair value of financial instruments. The major components of market risk affecting us are credit risk, interest rate risk, and equity price risk. We currently have no exposure to foreign currency risk.
Since December 31, 2024, there have been no material changes in the quantitative or qualitative aspect of our market risk profile. For additional information regarding the Company’s exposure to certain market risks, see Item 7A, “Quantitative and Qualitative Disclosures About Market Risk” in our Annual Report on Form 10-K for the year ended December 31, 2024.
Item 4. Controls
and Procedures.
Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we have evaluated the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act as of the end of the period covered by this report). Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of the end of the period covered by this report to provide reasonable assurance that information we are required to disclose in reports that are filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms promulgated by the SEC. We note that the design of any system of controls is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving the stated goals under all potential future conditions.
Because of inherent limitations, management does not expect that our disclosure controls and procedures and our internal controls over financial reporting will prevent or detect all misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with policies and procedures may deteriorate. Any control system, no matter how well designed and operated, is based upon certain assumptions and can only provide reasonable, not absolute assurance that its objectives will be met. Further, no evaluation of controls can provide absolute assurance that misstatements due to errors or fraud will not occur or that all control issues and instances of fraud, if any within the Company, have been detected.
There have not been any changes in our internal control over financial reporting during the period covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
29
PART II—OTHER
INFORMATION
Item 2. Unregistered Sales of Equi
ty Securities and Use of Proceeds.
As of June 30, 2025, we had repurchased a total of 1,745,608 shares of our outstanding common stock for $44.8 million since inception of our share repurchase program in 2010. The repurchases may be effected from time to time pursuant to trading plans meeting the requirements of Rule 10b5-1 under the Exchange Act. The share repurchase program does not obligate the Company to repurchase any shares of the Company's common stock and may be modified, suspended or terminated at the discretion of the Board. The Board's determination will depend on a variety of factors including, but not limited to, the market conditions and applicable regulatory considerations. It is anticipated that any future repurchases will be funded from available capital.
The following table summarizes the Company’s purchases of its common stock, par value $0.01 per share, during the three months ended June 30, 2025:
Period
Total Number of
Shares Purchased
Average Price Paid
per Share (1)
Total Number of
Shares Purchased as
Part of Publicly
Announced Program
Approximate Dollar
Value of Shares that
May Yet Be Purchased
Under the Program (2)
(in thousands)
April 1, 2025 to April 30, 2025
—
$
—
—
$
5,318
May 1, 2025 to May 31, 2025
131
45.47
131
5,312
June 1, 2025 to June 30, 2025
62,626
44.55
62,626
2,522
Total
62,757
62,757
(1) Average price paid per share includes commissions and excise tax.
(2) On October 28, 2016, the Company announced that the Board reauthorized the Company’s share repurchase program, authorizing the Company to purchase up to $25.0 million of shares of its outstanding common stock in the aggregate with no expiration date. In July 2025, the Company announced that the Board reauthorized the share repurchase program that replaces the Company's prior program, authorizing the repurchase of shares of the Company's common stock in an aggregate amount of up to $25.0 million with no expiration date. As of July 24, 2025, $25.0 million was available for future repurchases of the Company’s common stock under the repurchase program.
Item 5. Other Information.
During the Company's fiscal quarter ended June 30, 2025
, none of the Company's
directors or officers
adopted, modified or
terminated
a
Rule 10b5-1 trading arrangement
or a
non-Rule 10b5-1 trading arrangement.
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Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)
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SIGNAT
URES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
AMERISAFE, INC.
July 25, 2025
/s/ G. Janelle Frost
G. Janelle Frost
President, Chief Executive Officer and Director
(Principal Executive Officer)
July 25, 2025
/s/ Anastasios Omiridis
Anastasios Omiridis
Executive Vice President and Chief Financial Officer
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