DeRidder, LA – AMERISAFE, Inc. (Nasdaq: AMSF), a specialty provider of workers’ compensation insurance focused on high hazard industries, recently announced results for the first quarter ended March 31, 2021.
G. Janelle Frost, President and Chief Executive Officer, stated, “We are optimistic that vaccination rollout will strengthen the economy and add some normalcy back to daily living. However, optimism alone will not change the trajectory of the workers’ compensation market. The soft market continued in the quarter. Competition remained robust, while loss costs continued to decline. We are pleased to report an 84.6% combined ratio in the quarter through disciplined underwriting, competitive pricing, slight policy growth, and favorable case loss development from prior accident years.”
- Voluntary premiums written in the quarter were lower by $2.4 million, or 3.0%, compared with the first quarter of 2020.
- Payroll audits and related premium adjustments were lower by $3.3 million than the first quarter of 2020. While audits completed this quarter resulted in positive audit premiums, amounts were lower than the first quarter of 2020. This quarter’s audits included periods of activity impacted by COVID-19. Audits and other adjustments increased premiums written by $0.3 million in the first quarter of 2021, compared to an increase in premiums written of $3.6 million in the first quarter of 2020.
- The current accident year loss ratio for the first quarter was 72.0%, one half point lower than the 72.5% ratio for accident year 2020. During the quarter, the Company experienced favorable net loss development for prior accident years, which reduced loss and loss adjustment expenses by $11.4 million, primarily from accident years 2015 through 2018.
- For the quarter ended March 31, 2021, the underwriting expense ratio was 26.8% compared with 26.9% in the same quarter in 2020. The decrease was primarily due to a decrease in premium and loss-based assessments compared with the first quarter of 2020.
- The effective tax rate for the quarter ended March 31, 2021 was 18.3%, largely unchanged from 18.4% for the first quarter of 2020.
The complete results release is available here: AMERISAFE 2021 First Quarter Results