UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2024

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD FROM TO

Commission File Number:

001-12251

AMERISAFE, INC.

(Exact Name of Registrant as Specified in Its Charter)

Texas	75-2069407
(State of Incorporation)	(I.R.S. Employer Identification Number)
2301 Highway 190 West, DeRidder, Louisiana	70634
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code: (337) 463-9052

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common	AMSF	NASDAQ

Indicate by check mark whether the Registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of July 19, 2024, there were 19,068,286 shares of the Registrant’s common stock, par value $0.01 per share, outstanding.

TABLE OF CONTENTS

		Page
		No.
FORWARD-LOOKING STATEMENTS		3
PART I - FINANCIAL INFORMATION
Item 1	Financial Statements	4
Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22
Item 3	Quantitative and Qualitative Disclosures About Market Risk	27
Item 4	Controls and Procedures	28
PART II - OTHER INFORMATION
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	29
Item 5	Other Information	29
Item 6	Exhibits	30

2

FORWARD-LOOKING STATEMENTS

This report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and 21E of the Securities Exchange Act of 1934. You should not place undue reliance on these statements. These forward-looking statements include statements that reflect the current views of our senior management with respect to our financial performance and future events with respect to our business and the insurance industry in general. Statements that include the words “expect,” “intend,” “plan,” “believe,” “project,” “forecast,” “estimate,” “may,” “should,” “anticipate” and similar statements of a future or forward-looking nature identify forward-looking statements. Forward-looking statements address matters that involve risks and uncertainties. Accordingly, there are or will be important factors that could cause our actual results to differ materially from those indicated in these statements. We believe that these factors include, but are not limited to, the following:

•the cyclical nature of the workers’ compensation insurance industry;

•increased competition on the basis of types of insurance offered, premium rates, coverage availability, payment terms, claims management, safety services, policy terms, overall financial strength, financial ratings and reputation;

•changes in relationships with independent agencies (including retail and wholesale brokers and agents);

•general economic conditions, including recession, inflation, performance of financial markets, interest rates, unemployment rates, fluctuating asset values and global health pandemics;

•developments in capital markets that adversely affect the performance of our investments;

•technology breaches or failures, including those resulting from a malicious cyber attack on the Company or its policyholders and service providers;

•decreased level of business activity of our policyholders caused by decreased business activity generally, and in particular in the industries we target;

•greater frequency or severity of claims and loss activity than our underwriting, reserving or investment practices anticipate based on historical experience or industry data;

•adverse developments in economic, competitive, judicial or regulatory conditions within the workers’ compensation insurance industry;

•loss of the services of any of our senior management or other key employees;

•changes in regulations, laws, rates, rating factors, or taxes applicable to the Company, its policyholders or the agencies that sell its insurance;

•changes in current accounting standards or new accounting standards;

•changes in legal theories of liability under our insurance policies;

•changes in rating agency policies, practices or ratings;

•changes in the availability, cost or quality of reinsurance and the failure of our reinsurers to pay claims in a timely manner or at all;

•the effects of U.S. involvement in hostilities with other countries and large-scale acts of terrorism, or the threat of hostilities or terrorist acts; and

•other risks and uncertainties described from time to time in the Company’s filings with the Securities and Exchange Commission (SEC).

The foregoing factors should not be construed as exhaustive and should be read together with the other cautionary statements in this report, and under the caption “Risk Factors” in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023. If one or more events related to these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may differ materially from what we anticipate.

3

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements.

AMERISAFE, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

	June 30, 2024			December 31, 2023
	(unaudited)
Assets
Investments:
Fixed maturity securities—held-to-maturity, at amortized cost net of allowance    for credit losses of $149 and $182 in 2024 and 2023, respectively,    (fair value $448,608 and $473,092 in 2024 and 2023, respectively)	$	464,834		$	483,575
Fixed maturity securities—available-for-sale, at fair value    (amortized cost $299,652, allowance for credit losses of $0 in 2024    and amortized cost $326,171, allowance for credit losses of $0 in 2023)		287,589			317,064
Equity securities, at fair value    (cost $36,019 and $44,046 in 2024 and 2023, respectively)		53,839			57,147
Short-term investments		47,335			—
Total investments		853,597			857,786
Cash and cash equivalents		30,611			38,682
Amounts recoverable from reinsurers    (net of allowance for credit losses of $322 and $360 in 2024 and 2023, respectively)		123,335			129,963
Premiums receivable    (net of allowance for credit losses of $4,265 and $4,674 in 2024 and 2023, respectively)		150,914			132,861
Deferred income taxes		21,781			20,403
Accrued interest receivable		8,176			8,274
Property and equipment, net		6,384			6,349
Deferred policy acquisition costs		19,506			17,975
Federal income tax recoverable		1,555			1,781
Other assets		17,670			15,088
Total assets	$	1,233,529		$	1,229,162
Liabilities and shareholders’ equity
Liabilities:
Reserves for loss and loss adjustment expenses	$	663,985		$	673,994
Unearned premiums		128,055			116,585
Amounts held for others		48,403			53,694
Policyholder deposits		34,167			34,522
Insurance-related assessments		16,661			16,896
Accounts payable and other liabilities		38,766			41,020
Payable for investments purchased		2,500			—
Total liabilities		932,537			936,711
Shareholders’ equity:
Common stock: voting—$0.01 par value authorized shares—50,000,000    in 2024 and 2023; 20,729,551 and 20,704,448 shares issued; and 19,068,286    and 19,135,008 shares outstanding in 2024 and 2023, respectively		207			207
Additional paid-in capital		223,359			222,078
Treasury stock, at cost (1,661,265 and 1,569,440 shares in 2024 and 2023,    respectively)		(41,042	)		(36,929	)
Accumulated earnings		128,028			114,289
Accumulated other comprehensive loss, net		(9,560	)		(7,194	)
Total shareholders’ equity		300,992			292,451
Total liabilities and shareholders’ equity	$	1,233,529		$	1,229,162

See accompanying notes.

4

AMERISAFE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except share and per share data)

(unaudited)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2024			2023			2024			2023
Revenues
Gross premiums written	$	76,428		$	71,704		$	156,502		$	154,191
Ceded premiums written		(4,027	)		(3,965	)		(7,953	)		(8,144	)
Net premiums written	$	72,401		$	67,739		$	148,549		$	146,047
Net premiums earned	$	68,633		$	65,598		$	137,079		$	134,779
Net investment income		7,447			7,724			14,813			15,157
Net realized gains (losses) on investments		(117	)		75			(339	)		333
Net unrealized gains (losses) on equity securities		(58	)		2,048			4,718			3,417
Fee and other income (losses)		(75	)		214			48			411
Total revenues		75,830			75,659			156,319			154,097
Expenses
Loss and loss adjustment expenses incurred		40,624			35,645			80,615			74,654
Underwriting and certain other operating costs		7,273			7,427			12,584			12,583
Commissions		5,917			5,845			11,799			11,648
Salaries and benefits		7,239			6,700			14,744			12,723
Policyholder dividends		1,049			490			2,121			1,421
Provision for investment related credit loss benefit		(16	)		(16	)		(33	)		(35	)
Total expenses		62,086			56,091			121,830			112,994
Income before income taxes		13,744			19,568			34,489			41,103
Income tax expense		2,751			3,941			6,571			8,137
Net income	$	10,993		$	15,627		$	27,918		$	32,966
Earnings per share
Basic	$	0.58		$	0.82		$	1.46		$	1.72
Diluted	$	0.57		$	0.81		$	1.46		$	1.72
Shares used in computing earnings per share
Basic		19,083,232			19,139,735			19,102,700			19,135,564
Diluted		19,146,294			19,196,755			19,171,206			19,200,377
Cash dividends declared per common share	$	0.37		$	0.34		$	0.74		$	0.68

See accompanying notes.

5

AMERISAFE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands)

(unaudited)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2024			2023			2024			2023
Net income	$	10,993		$	15,627		$	27,918		$	32,966
Other comprehensive income:
Unrealized gain (loss) on debt securities, net of tax		(820	)		(2,616	)		(2,366	)		1,728
Comprehensive income	$	10,173		$	13,011		$	25,552		$	34,694

See accompanying notes.

6

AMERISAFE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

Three Months Ended June 30, 2024 and 2023

(in thousands, except share data)

(unaudited)

	Common Stock				Additional Paid-In		Treasury Stock						Accumulated			Accumulated Other Comprehensive
	Shares		Amounts		Capital		Shares			Amounts			Earnings			Loss			Total
Balance at March 31, 2024		20,704,448	$	207	$	222,443		(1,569,440	)	$	(36,929	)	$	124,113		$	(8,740	)	$	301,094
Comprehensive income:
Net income		—		—		—		—			—			10,993			—			10,993
Other comprehensive    income:
Change in unrealized    losses on debt    securities, net of tax		—		—		—		—			—			—			(820	)		(820	)
Comprehensive income:																				10,173
Common stock issued		25,103		—		565		—			—			—			—			565
Purchase of treasury stock		—		—		—		(91,825	)		(4,113	)		—			—			(4,113	)
Share-based compensation		—		—		351		—			—			—			—			351
Dividends to shareholders		—		—		—		—			—			(7,078	)		—			(7,078	)
Balance at June 30, 2024		20,729,551	$	207	$	223,359		(1,661,265	)	$	(41,042	)	$	128,028		$	(9,560	)	$	300,992
	Common Stock				Additional Paid-In		Treasury Stock						Accumulated			Accumulated Other Comprehensive
	Shares		Amounts		Capital		Shares			Amounts			Earnings			Loss			Total
Balance at March 31, 2023		20,677,086	$	207	$	220,556		(1,522,699	)	$	(34,758	)	$	156,334		$	(9,484	)	$	332,855
Comprehensive income:
Net income		—		—		—		—			—			15,627			—			15,627
Other comprehensive    income:
Change in unrealized    losses on debt    securities, net of tax		—		—		—		—			—			—			(2,616	)		(2,616	)
Comprehensive income:																				13,011
Common stock issued		25,627		—		944		—			—			—			—			944
Share-based compensation		—		—		259		—			—			—			—			259
Dividends to shareholders		—		—		—		—			—			(6,502	)		—			(6,502	)
Balance at June 30, 2023		20,702,713	$	207	$	221,759		(1,522,699	)	$	(34,758	)	$	165,459		$	(12,100	)	$	340,567

See accompanying notes.

7

AMERISAFE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

Six Months Ended June 30, 2024 and 2023

(in thousands, except share data)

(unaudited)

	Common Stock				Additional Paid-In		Treasury Stock						Accumulated			Accumulated Other Comprehensive
	Shares		Amounts		Capital		Shares			Amounts			Earnings			Loss			Total
Balance at December 31, 2023		20,704,448	$	207	$	222,078		(1,569,440	)	$	(36,929	)	$	114,289		$	(7,194	)	$	292,451
Comprehensive income:
Net income		—		—		—		—			—			27,918			—			27,918
Other comprehensive    income:
Change in unrealized    losses on debt    securities, net of tax		—		—		—		—			—			—			(2,366	)		(2,366	)
Comprehensive income:																				25,552
Common stock issued		25,103		—		565		—			—			—			—			565
Purchase of treasury stock		—		—		—		(91,825	)		(4,113	)		—			—			(4,113	)
Share-based compensation		—		—		716		—			—			—			—			716
Dividends to shareholders		—		—		—		—			—			(14,179	)		—			(14,179	)
Balance at June 30, 2024		20,729,551	$	207	$	223,359		(1,661,265	)	$	(41,042	)	$	128,028		$	(9,560	)	$	300,992
	Common Stock				Additional Paid-In		Treasury Stock						Accumulated			Accumulated Other Comprehensive
	Shares		Amounts		Capital		Shares			Amounts			Earnings			Loss			Total
Balance at December 31, 2022		20,678,572	$	207	$	220,299		(1,522,699	)	$	(34,758	)	$	145,512		$	(13,828	)	$	317,432
Comprehensive income:
Net income		—		—		—		—			—			32,966			—			32,966
Other comprehensive    income:
Change in unrealized    losses on debt    securities, net of tax		—		—		—		—			—			—			1,728			1,728
Comprehensive income:																				34,694
Common stock issued		24,141		—		944		—			—			—			—			944
Share-based compensation		—		—		516		—			—			—			—			516
Dividends to shareholders		—		—		—		—			—			(13,019	)		—			(13,019	)
Balance at June 30, 2023		20,702,713	$	207	$	221,759		(1,522,699	)	$	(34,758	)	$	165,459		$	(12,100	)	$	340,567

See accompanying notes.

8

AMERISAFE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

	Six Months Ended June 30,
	2024			2023
Operating activities
Net income	$	27,918		$	32,966
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		558			699
Net amortization of investments		847			1,872
Change in investment related allowance for credit losses		(33	)		(35	)
Deferred income taxes		(750	)		(1,102	)
Net realized (gains) losses on investments		339			(333	)
Net unrealized gains on equity securities		(4,718	)		(3,417	)
Net realized losses on disposal of assets		209			2
Share-based compensation		1,398			646
Changes in operating assets and liabilities:
Premiums receivable, net		(20,454	)		(18,666	)
Accrued interest receivable		98			41
Deferred policy acquisition costs		(1,531	)		(1,526	)
Other assets		(1,648	)		(180	)
Reserves for loss and loss adjustment expenses		(10,009	)		(11,424	)
Unearned premiums		11,470			11,268
Reinsurance balances		5,722			2,585
Amounts held for others and policyholder deposits		(5,646	)		2,750
Federal income taxes recoverable		226			3,754
Accounts payable and other liabilities		918			843
Net cash provided by operating activities		4,914			20,743
Investing activities
Purchases of investments held-to-maturity		(5,465	)		(9,596	)
Purchases of investments available-for-sale		(6,639	)		(38,107	)
Purchases of short-term investments		(46,957	)		(46,347	)
Proceeds from maturities of investments held-to-maturity		22,393			24,488
Proceeds from sales and maturities of investments available-for-sale		35,313			20,818
Proceeds from sales of equity securities		7,933			262
Proceeds from sales and maturities of short-term investments		—			14,175
Purchases of property and equipment		(802	)		(37	)
Net cash provided by (used in) investing activities		5,776			(34,344	)
Financing activities
Finance lease purchases		(42	)		(47	)
Share-based compensation related tax withholding		(429	)		(779	)
Purchase of treasury stock		(4,113	)		—
Dividends to shareholders		(14,177	)		(13,120	)
Net cash used in financing activities		(18,761	)		(13,946	)
Change in cash and cash equivalents		(8,071	)		(27,547	)
Cash and cash equivalents at beginning of period		38,682			61,469
Cash and cash equivalents at end of period	$	30,611		$	33,922

See accompanying notes.

9

AMERISAFE, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

Note 1. Basis of Presentation

AMERISAFE, Inc. (the Company) is an insurance holding company incorporated in the state of Texas. The accompanying unaudited consolidated financial statements include the accounts of AMERISAFE and its subsidiaries: American Interstate Insurance Company (AIIC) and its insurance subsidiaries, Silver Oak Casualty, Inc. (SOCI) and American Interstate Insurance Company of Texas (AIICTX), Amerisafe Risk Services, Inc. (RISK) and Amerisafe General Agency, Inc. (AGAI). AIIC and SOCI are property and casualty insurance companies organized under the laws of the state of Nebraska. AIICTX is a property and casualty insurance company organized under the laws of the state of Texas. RISK, a wholly owned subsidiary of the Company, is a claims and safety service company currently servicing only affiliated insurance companies. AGAI, a wholly owned subsidiary of the Company, is a general agent for the Company. AGAI sells insurance, which is underwritten by AIIC, SOCI and AIICTX, as well as by nonaffiliated insurance carriers.

The terms “AMERISAFE,” the “Company,” “we,” “us” or “our” refer to AMERISAFE, Inc. and its consolidated subsidiaries, as the context requires.

The Company provides workers’ compensation insurance for small to mid-sized employers engaged in hazardous industries, principally construction, trucking, logging and lumber, agriculture, manufacturing, telecommunications, and maritime. Assets and revenues of AIIC and its subsidiaries represent at least 95% of comparable consolidated amounts of the Company for each of the six months ended June 30, 2024 and 2023.

In the opinion of management of the Company, the accompanying unaudited consolidated financial statements contain all adjustments (consisting of normal recurring accruals) necessary to present fairly the financial position, the results of operations and cash flows for the periods presented. The unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q under the Securities Exchange Act of 1934 and therefore do not include all information and footnotes to be in conformity with accounting principles generally accepted in the United States (GAAP). The results for the interim periods are not necessarily indicative of the results of operations that may be expected for the year. The unaudited consolidated financial statements contained herein should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2023.

The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of our assets, liabilities, revenues and expenses and related disclosures. Some of the estimates result from judgments that can be subjective and complex and, consequently, actual results in future periods might differ from these estimates.

Reclassifications

Certain prior year amounts have been reclassified to conform with the current year presentation. The reclassifications have not changed the results of operations of prior periods.

Adopted Accounting Guidance

The Company has not adopted any new accounting guidance in 2024.

Prospective Accounting Guidance

In November 2023, the Financial Accounting Standards Board issued guidance that requires expanded reportable segment disclosures, primarily related to significant segment expenses which are regularly provided to the chief operating decision maker. The guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within annual periods beginning after December 15, 2024. Retrospective application is required. The Company is currently evaluating the impact of this disclosure-only requirement. All other issued but not yet effective accounting and reporting standards as of June 30, 2024 are either not applicable to the Company or are not expected to have a material impact on the Company.

Note 2. Restricted Stock, Restricted Stock Units, and Stock Options

As of June 30, 2024, the Company has three equity incentive plans: the AMERISAFE Non-Employee Director Restricted Stock Plan (the Restricted Stock Plan), the AMERISAFE 2012 Equity and Incentive Compensation Plan (the 2012 Incentive Plan) and the 2022 Equity and Incentive Compensation Plan (the 2022 Incentive Plan). In connection with the approval of the 2022 Incentive Plan by the Company’s shareholders at the annual meeting of shareholders in June 2022, no further grants will be made under the 2012 Incentive Plan. All grants made under the 2012 Incentive Plan will continue in effect, subject to the terms and conditions of the 2012

10

Incentive Plan. See Note 12 to our consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2023 for additional information regarding the Company’s incentive plans.

During the six months ended June 30, 2024, the Company issued 12,993 shares of common stock to executive officers pursuant to vested performance awards. During the six months ended June 30, 2024, the Company awarded 12,110 shares of restricted common stock to non-employee directors. The market value of these shares totaled $1.1 million. During the six months ended June 30, 2023, the Company issued 18,561 shares of common stock to executive officers pursuant to vested performance awards. During the six months ended June 30, 2023, the Company awarded 9,856 shares of restricted common stock to non-employee directors. The market value of these shares totaled $1.5 million.

The Company had no stock options outstanding as of June 30, 2024.

The Company recognized share-based compensation expense of $0.7 million in the quarter ended June 30, 2024 and $0.4 million in the same period in 2023. The Company recognized share-based compensation expense of $1.4 million in the six months ended June 30, 2024 and $0.6 million in the same period in 2023.

Note 3. Earnings Per Share

The Company computes earnings per share (EPS) in accordance with FASB Accounting Standards Codification (ASC) Topic 260, Earnings Per Share. The Company has no participating unvested common shares which contain nonforfeitable rights to dividends and applies the treasury stock method in computing basic and diluted earnings per share.

Basic EPS is calculated by dividing net income by the weighted-average number of common shares outstanding during the period.

The diluted EPS calculation includes potential common shares assumed issued under the treasury stock method, which reflects the potential dilution that would occur if any restricted stock or RSUs become vested.

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2024		2023		2024	2023
	(in thousands, except share and per share amounts)
Basic EPS:
Net income	$	10,993	$	15,627