AMERISAFE, Inc. (AMSF) has reported a 17.34 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $19.07 million, or $0.99 a share in the quarter, compared with $23.07 million, or $1.21 a share for the same period last year.
Revenue during the quarter dropped 3.15 percent to $98.56 million from $101.76 million in the previous year period. Net premium earned for the quarter declined 3.09 percent or $2.94 million to $92.10 million. During the quarter, the company has written premium worth $78.35 million on net basis, down 9.68 percent or $8.39 million.
Total expenses move up marginally
Benefits, losses and expenses for the quarter were at $70.77 million, or 76.85 percent of premium earned from $67.99 million or 71.54 percent of premium earned in the last year period. Operating income for the quarter was $27.78 million, compared with $33.77 million in the previous year period.
Net investment income was at $7.86 million for the quarter, up 8.26 percent or $0.60 million from year-ago period. The company has booked a loss on investments of $1.47 million in the quarter compared with a gain of $0.02 million for the previous year period.
G. Janelle Frost, president and chief executive officer commented, "Underwriting margins across the industry continued to be pressured this quarter as competition increased and rates decreased. We are at a point in the underwriting cycle where the choice to remain focused on underwriting margins and sustainability is essential to providing long-term returns to shareholders. AMERISAFE's financial results this quarter are reflective of our focus over an extended period of time. Risk selection, appropriate product pricing and claims handling ultimately led to combined ratios of 76.8% this quarter and 77.0% for the year. Based on these results and our capital strength, AMERISAFE is well-positioned for the softening market cycle."
Liabilities outpace assets growth
Total assets increased 1.12 percent or $16.81 million to $1,518.86 million on Dec. 31, 2016. On the other hand, total liabilities were at $1,062.71 million as on Dec. 31, 2016, up 1.40 percent or $14.64 million from year-ago.
Return on assets stood at 1.26 percent in the quarter, down 0.28 from 1.54 percent in the last year period. At the same time, return on equity was at 4.18 percent in the quarter, down 0.90 from 5.08 percent in the last year period.
Investments move up marginally
Investments stood at $1,084.47 million as on Dec. 31, 2016, up 3.76 percent or $39.32 million from year-ago. Meanwhile, yield on investments went up 3 basis points to 0.72 percent in the quarter.
Meanwhile, reinsurance recoverables moved down 8.14 percent or $7.41 million over the year to $83.67 million on Dec. 31, 2016.
Shareholders equity was almost stable over the past one year at $456.15 million on Dec. 31, 2016.
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