AMERISAFE, Inc. (AMSF) | Investment Case

1. Company Snapshot

1.a. Company Description

AMERISAFE, Inc., an insurance holding company, underwrites workers' compensation insurance in the United States.The company's workers' compensation insurance policies provide benefits to injured employees for temporary or permanent disability, death, and medical and hospital expenses.It serves small to mid-sized employers engaged in hazardous industries, including construction, trucking, logging and lumber, agriculture, manufacturing, telecommunications, and maritime.

The company was incorporated in 1985 and is based in DeRidder, Louisiana.

Show Full description

1.b. Last Insights on AMSF

AMERISAFE's recent performance was negatively driven by a decline in earnings per share (EPS) of 8.8% year-over-year, despite beating Q4 earnings estimates of $0.60 per share. The company's EPS of $0.67 was lower than the $0.74 reported in the same quarter last year. Additionally, the company's increasing dividend payout, which was raised by 5.4% to 39 cents per share, may signal a shift in priorities towards shareholder returns rather than investing in growth initiatives."

1.c. Company Highlights

Last Price	30.18
Change Percentage	-0.40%
Open	30.46
Previous Close	30.3
Market Cap ( Millions)	564
Volume	201717
Year High	48.54
Year Low	29.45
M A 50	33.24
M A 200	39.4

FCF Yield	1.42%
Dividend Yield	8.55%
ROE	17.85%
Debt / Equity	0.00%
Net Debt / EBIDTA	-58.69%
Price To Book	2.3
Price Earnings Ratio	12.22
Price To FCF	70.63
Price To sales	1.74
EV / EBITDA	9.09

2. AMERISAFE Q1 2026: Steady Growth Amid Competitive Workers' Comp Landscape

First‑quarter 2026 saw AMERISAFE’s net premiums earn a 9 % lift to $75.1 million, while operating earnings climbed to $0.50 per share and net income reached $0.43 per diluted share. The combined ratio settled at 93.2 %, and the company’s P/E of 12.28, P/B of 2.31, and dividend yield of 8.5 % underscore a valuation that rewards steady underwriting performance.

Publication Date: Apr -27

                                    📋 Highlights
                                    Net Premiums Growth::
                                                Net premiums earned rose 9% to $75.1 million, with operating earnings of $0.50 per share.
Gross Premiums Expansion::
                                                Gross premiums written increased 5.6% to $88.5 million, driven by 8.2% new/renewal voluntary premium growth.
Expense Efficiency::
                                                Expense ratio improved to 29.7%, marking the third consecutive year-over-year reduction.
Share Repurchases::
                                                $4 million spent to repurchase 120,000 shares at $33.60 average cost.
Investment Quality::
                                                Portfolio maintains 3.9% tax-equivalent yield and an average AA- credit rating, with book value per share at $13.18.

                                

Financial Performance

Gross premiums written rose 5.6 % to $88.5 million, propelled by an 8.2 % increase in new and renewal voluntary premiums. Net premiums earned grew 9 % to $75.1 million, supporting operating earnings of $0.50 per share. The company’s operating net income of $9.5 million ($0.50 diluted) reflects disciplined underwriting, while the P/S ratio of 1.75 signals price appreciation relative to sales.

Underwriting & Retention

Retention for renewal policies stood at 92.4 %, indicating strong customer loyalty. The current accident year loss ratio was 72 %, but a favorable $7.6 million prior‑year development brought the net loss ratio down to 61.9 %. Management highlighted that the competitive workers’ compensation market still demands precise risk pricing and deep industry expertise.

Expense Management

The expense ratio improved to 29.7 %, marking the third consecutive year of year‑over‑year improvement. This efficiency gain, coupled with a 93.2 % combined ratio, keeps underwriting profitability on a solid trajectory. The company’s EV/EBITDA of 9.14 reflects a modest valuation for a firm with a low net debt/EBITDA of –0.59.

Investment & Balance Sheet

AMERISAFE’s investment portfolio remains high quality, yielding a tax‑equivalent return of 3.9 % and holding an average AA‑credit rating. Book value per share at quarter‑end was $13.18, and the company repurchased nearly 120,000 shares at an average of $33.60, signaling confidence in intrinsic value. The free cash flow yield of 1.41 % and ROE of 17.85 % highlight effective capital deployment.

Management Outlook

3. NewsRoom

Amerisafe: Keeps Growing Into A Soft Market, But The Easy Comparisons Are Behind It

Apr -29

Source: seekingalpha.com

AMERISAFE (NASDAQ:AMSF) Shares Gap Down After Earnings Miss

Apr -24

Source: defenseworld.net

AMERISAFE, Inc. (AMSF) Q1 2026 Earnings Call Transcript

Apr -22

Source: seekingalpha.com

AMSF Q1 Earnings Miss Estimates on Higher Costs, Soft Underwriting

Apr -22

Source: zacks.com

Amerisafe (AMSF) Lags Q1 Earnings and Revenue Estimates

Apr -22

Source: zacks.com

AMERISAFE Announces 2026 First Quarter Results

Apr -22

Source: businesswire.com

AMERISAFE Appoints New Chief Financial Officer

Apr -16

Source: businesswire.com

AMSF Stock Check: Strong Balance Sheet, But is Earnings Slowing?

Apr -14

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.43%)

6. Segments

Insurance and Related Activities

Expected Growth: 7.43%

Amerisafe's 7.43% growth in Insurance and Related Activities is driven by increasing demand for workers' compensation insurance, expansion into new markets, and a strong underwriting discipline. Additionally, the company's focus on providing specialized insurance products and services to high-hazard industries, such as construction and manufacturing, has contributed to its growth.

7. Detailed Products

Workers' Compensation Insurance

Provides coverage for work-related injuries and illnesses, helping employers protect their employees and manage the costs of workplace accidents.

Risk Management Services

Offers a range of services to help employers identify and mitigate workplace hazards, reducing the risk of accidents and injuries.

Safety Consulting Services

Provides expert guidance and support to help employers develop and implement effective safety programs and policies.

Claims Management Services

Provides expert claims management services to help employers manage and resolve workers' compensation claims efficiently and effectively.

Compliance Services

Offers compliance services to help employers navigate complex workers' compensation regulations and ensure compliance with state and federal laws.

8. AMERISAFE, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for AMERISAFE, Inc. is low because the company operates in a niche market, providing workers' compensation insurance to small and medium-sized businesses, which limits the availability of substitutes.

Bargaining Power Of Customers

The bargaining power of customers for AMERISAFE, Inc. is medium because while customers have some negotiating power, the company's specialized products and services limit the ability of customers to switch to alternative providers.

Bargaining Power Of Suppliers

The bargaining power of suppliers for AMERISAFE, Inc. is low because the company is not heavily dependent on a few key suppliers, and there are many alternative suppliers available.

Threat Of New Entrants

The threat of new entrants for AMERISAFE, Inc. is high because the workers' compensation insurance market is attractive and has low barriers to entry, making it easier for new companies to enter the market.

Intensity Of Rivalry

The intensity of rivalry for AMERISAFE, Inc. is medium because while there is some competition in the workers' compensation insurance market, the company's specialized products and services help to differentiate it from competitors.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	0.00%
Debt Cost	3.95%
Equity Weight	100.00%
Equity Cost	5.50%
WACC	5.50%
Leverage	0.00%

11. Quality Control: AMERISAFE, Inc. passed 3 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Investors Title

A-Score: 6.5/10

Value: 5.6

Growth: 4.7

Quality: 6.6

Yield: 9.0

Momentum: 6.0

Volatility: 7.0

1-Year Total Return ->

Tiptree

A-Score: 5.9/10

Value: 8.6

Growth: 7.7

Quality: 6.4

Yield: 4.0

Momentum: 3.5

Volatility: 5.3

1-Year Total Return ->

Employers Holdings

A-Score: 5.8/10

Value: 7.0

Growth: 5.0

Quality: 5.4

Yield: 7.0

Momentum: 1.5

Volatility: 8.7

1-Year Total Return ->

AMERISAFE

A-Score: 5.7/10

Value: 4.9

Growth: 2.2

Quality: 7.1

Yield: 10.0

Momentum: 1.0

Volatility: 9.0

1-Year Total Return ->

ICC Holdings

A-Score: 5.0/10

Value: 5.0

Growth: 7.3

Quality: 4.8

Yield: 0.0

Momentum: 7.0

Volatility: 6.0

1-Year Total Return ->

MBIA

A-Score: 4.9/10

Value: 8.1

Growth: 1.3

Quality: 5.0

Yield: 5.0

Momentum: 7.5

Volatility: 2.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

11.50%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

5.50%

AMERISAFE, Inc. - US03071H1005

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on AMSF

1.c. Company Highlights

Higher Yield

Lower Growth

Better Quality

Earnings Beats

Revenues Beats

Earnings Miss

Weak Momentum

Expensive

Revenues Miss

2. AMERISAFE Q1 2026: Steady Growth Amid Competitive Workers' Comp Landscape

Financial Performance

Underwriting & Retention

Expense Management

Investment & Balance Sheet

Management Outlook

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.43%)

6. Segments

Insurance and Related Activities

Expected Growth: 7.43%

7. Detailed Products

Workers' Compensation Insurance

Risk Management Services

Safety Consulting Services

Claims Management Services

Compliance Services

8. AMERISAFE, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: AMERISAFE, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

30.18$

Current Price

30.18$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA