DeRidder, LA – AMERISAFE, Inc. (Nasdaq:AMSF), a specialty provider of hazardous workers’ compensation insurance, recently announced results for the third quarter ended September 30, 2017.
G. Janelle Frost, President and Chief Executive Officer, said, “Capital strength and continued profitable underwriting led to this quarter’s declaration of an extraordinary dividend. AMERISAFE is well positioned for the future and remains committed to the underwriting discipline and claims management that provides protection to our policyholders and returns to our shareholders.”
Gross premiums written in the quarter decreased by $1.8 million, or 2.0%, primarily due to lower voluntary premiums written. Voluntary premium for policies written during the quarter ended September 30, 2017 declined by 1.9% compared with the third quarter of 2016.
Payroll audits and related premium adjustments decreased premiums written by $1.1 million in the third quarter of 2017, compared to a decrease of $1.2 million in the third quarter of 2016.
The current accident year loss ratio for the third quarter was 69.0%, an increase of 1.1 percentage points from 67.9% in 2016. During the quarter, the Company experienced favorable loss development for prior accident years which reduced loss and loss adjustment expenses by $10.3 million, primarily attributable to accident years 2015, 2014 and 2013. The favorable reserve development reflects improved trends for closing claims and by favorable case reserve development on claims during the quarter.
For the quarter ended September 30, 2017, the underwriting expense ratio was 22.7% compared to 23.1% in the same quarter in 2016. The decrease in the quarter was due to lower assessments and commission expense compared with last year’s third quarter.
The effective tax rate for the quarter ended September 30, 2017 was 29.6% compared with 31.2% for the third quarter of 2016. The decrease in the tax rate resulted from a higher proportion of tax-exempt income to underwriting income relative to the third quarter of 2016.
The complete results release is available here: AMERISAFE 2017 Third Quarter Results