Oct 29, 2026 earnings call — Third quarter results and underwriting discipline
Net premiums earned increased 3% to $73.3 million for the quarter.
Revenue $0.1B (est $0.1B) · EPS $0.40 (est $0.48)
Key quotes
"Our approach remains unchanged. Preserve underwriting integrity through the cycle to create superior value for our shareholders."
"We experienced $6.9 million of favorable reserve development during the quarter, primarily from accident years 2023 and prior."
"As a result, the tax equivalent book yield increased to 4%, up nine basis points from the third quarter of 2025."
Analyst Q&A 3
Claim frequency, rate filings, audits, competition
Q (Mark Hughes · Truist): He asked whether reported claim frequency is changing—accelerating or driven by lower premiums rather than more claims. He also asked for specifics on rate filings, account size versus payroll, the audit premium decline, and whether competition is more aggressive.
A: Management said absolute reported claim counts are up and in-force policies grew 4% year over year. They said loss cost declines average about 5%-6% going into 2027. They noted audit premium remained positive but was much lower this quarter and that competition has intensified with some competitors acting irrationally and chasing premium over profitability.
"We're having to battle more and more to keep the accounts we have, much less writing new business." — Vincent Gagliano
Large losses, assessments, growth outlook
Q (David Samar · Citizens): He asked how large losses year-to-date compare with last year, which states drove higher expense ratio assessments, and whether slower voluntary growth is the new normal.
A: Management said at quarter end they had 18 claims over $1 million versus 17 at last year's third quarter (they finished last year with 25). They said the higher expense ratio is partly due to the earned premium denominator and three states had assessments, with Delaware being the biggest. Management does not expect slower voluntary growth to be the new normal and remains focused on mid-single-digit growth for the year.
"At quarter end for the year, we would've had 18 claims over $1 million." — Janelle Frost (CEO)
Medical inflation and competition effects
Q (Mark Hughes · Truist): He asked whether medical inflation (hospital costs) is driving higher frequency, and what ‘irrational’ competition means for how management runs the business.
A: Management said medical inflation is showing up most in hospitalization and hospital costs, which are putting the greatest pressure. On competition, they said anecdotes of aggressive pricing, commissions, and dividends increased in the quarter, but AMERISAFE will not chase unprofitable business and is focusing on long-term profitable growth and operational efficiencies; commission expense is modestly higher year-to-date.
"Hospitalization and hospital costs are probably where we're seeing the greatest pressure." — Janelle Frost (CEO)