8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of report (Date of earliest event reported): April 29, 2021

AMERISAFE, INC.

(Exact Name of Registrant as Specified in Charter)

Texas	001-12251	75-2069407
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

2301 Highway 190 West

DeRidder, Louisiana 70634

(Address of Principal Executive Offices) (Zip Code)

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

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered or to be registered pursuant to Section 12(b) of the Act.

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	AMSF	Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

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.  ☐

Item 2.02. Results of Operations and Financial Condition.

On April 29, 2021, AMERISAFE, Inc. (the “Company”) issued a press release announcing its financial results for the first quarter ended March 31, 2021. A copy of the Company’s press release is attached as Exhibit 99.1 to this Current Report on Form 8-K.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit No.	Description
99.1	Press Release of AMERISAFE, Inc. dated April 29, 2021 (Financial Results)
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

AMERISAFE, INC.
By:	/s/ Neal A. Fuller
	Neal A. Fuller, Executive Vice President and Chief Financial Officer

Date: April 29, 2021

EX-99.1

Exhibit 99.1

Neal A. Fuller, EVP & CFO AMERISAFE 337.463.9052

AMERISAFE ANNOUNCES 2021 FIRST QUARTER RESULTS

Reports Net Combined Ratio of 84.6%

DeRidder, LA – April 29, 2021 - AMERISAFE, Inc. (Nasdaq: AMSF), a specialty provider of workers’ compensation insurance focused on high hazard industries, today announced results for the first quarter ended March 31, 2021.

	Three Months Ended March 31,
	2021			2020			% Change
	(in thousands, except per share data)
Net premiums earned	$	70,746		$	78,990			-10.4	%
Net investment income		6,583			7,749			-15.0	%
Net realized gains on investments (pretax)		319			992			-67.8	%
Net unrealized gains (losses) on equity securities (pre-tax)		5,511			(8,763	)		NM
Net income		19,312			10,800			78.8	%
Diluted earnings per share	$	0.99		$	0.56			76.8	%
Operating net income		14,706			16,939			-13.2	%
Operating earnings per share	$	0.76		$	0.88			-13.6	%
Book value per share	$	23.16		$	22.64			2.3	%
Net combined ratio		84.6	%		83.5	%
Return on average equity		17.4	%		10.0	%

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.”

INSURANCE RESULTS

	Three Months Ended March 31,
	2021			2020			% Change
	(in thousands)
Gross premiums written	$	81,514		$	87,071			-6.4	%
Net premiums earned		70,746			78,990			-10.4	%
Loss and loss adjustment expenses incurred		39,517			43,647			-9.5	%
Underwriting and certain other operating costs, commissions, salaries and benefits		18,967			21,284			-10.9	%
Policyholder dividends		1,350			1,023			32.0	%
Underwriting profit (pre-tax)	$	10,912		$	13,036			-16.3	%
Insurance Ratios:
Current accident year loss ratio		72.0	%		72.5	%
Prior accident year loss ratio		-16.1	%		-17.2	%
Net loss ratio		55.9	%		55.3	%
Net underwriting expense ratio		26.8	%		26.9	%
Net dividend ratio		1.9	%		1.3	%
Net combined ratio		84.6	%		83.5	%

• 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.

2

• 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.

INVESTMENT RESULTS

	Three Months Ended March 31,
	2021			2020			% Change
	(in thousands)
Net investment income	$	6,583		$	7,749			-15.0	%
Net realized gains on investments (pre-tax)		319			992			-67.8	%
Net unrealized gains (losses) on equity securities (pre-tax)		5,511			(8,763	)		NM
Pre-tax investment yield		2.3	%		2.6	%
Tax-equivalent yield (1)		2.8	%		3.0	%

(1) The tax equivalent yield is calculated using the effective interest rate and the appropriate marginal tax rate.

• Net investment income for the quarter ended March 31, 2021, decreased 15.0% to $6.6 million from $7.7 million in the first quarter of 2020, due to lower investment yields on fixed-income securities.

• Net realized gains on securities sold were $0.3 million for the first quarter of 2021, compared to $1.0 million in the first quarter of 2020.

• As of March 31, 2021, the carrying value of AMERISAFE’s investment portfolio, including cash and cash equivalents, was $1.2 billion.

CAPITAL MANAGEMENT

During the first quarter of 2021, the Company paid a regular quarterly cash dividend of $0.29 per share on March 26, 2021 which represented an 7.4% increase in the quarterly dividend compared with 2020. On April 27, 2021 the Company’s Board of Directors declared a quarterly cash dividend of $0.29 per share, payable on June 25, 2021 to shareholders of record as of June 18, 2021.

Book value per share at March 31, 2021 was $23.16, an increase of 2.0% from $22.70 at December 31, 2020.

3

SUPPLEMENTAL INFORMATION

	Three Months Ended March 31,
	2021			2020
	(in thousands, except share and per share data)
Net income	$	19,312		$	10,800
Less:
Net realized gains on investments		319			992
Net unrealized gains (losses) on equity securities		5,511			(8,763	)
Tax effect (1)		(1,224	)		1,632
Operating net income (2)	$	14,706		$	16,939
Average shareholders’ equity (3)	$	443,221		$	433,586
Less:
Average accumulated other comprehensive income		18,495			12,953
Average adjusted shareholders’ equity (2)	$	424,726		$	420,633
Diluted weighted average common shares		19,408,804			19,352,245
Return on average equity (4)		17.4	%		10.0	%
Operating return on average adjusted equity (2)		13.9	%		16.1	%
Diluted earnings per share	$	0.99		$	0.56
Operating earnings per share (2)	$	0.76		$	0.88

(1) The tax effect of net realized losses on investments and net unrealized gains (losses) on equity securities is calculated with an effective tax rate of 21%.

(2) Operating net income, operating return on average adjusted equity and operating earnings per share are non-GAAP financial measures. Management believes that investors’ understanding of core operating performance is enhanced by AMERISAFE’s disclosure of these financial measures.

(3) Average shareholders’ equity is calculated by taking the average of the beginning and ending shareholders’ equity.

(4) Return on average equity is calculated by dividing the annualized net income by the average shareholders’ equity.

4

CONFERENCE CALL INFORMATION

AMERISAFE has scheduled a conference call for April 30, 2021, at 10:30 a.m. Eastern Time to discuss the results for the quarter and comment on future periods. To participate in the conference call, dial 323-794-2093 (Conference Code 9686208) at least ten minutes before the call begins.

Investors, analysts and the general public will also have the opportunity to listen to the conference call over the Internet by visiting http://www.amerisafe.com. To listen to the live call on the web, please visit the website at least fifteen minutes before the call begins to register, download and install any necessary audio software. For those who cannot listen to the live webcast, an archive will be available shortly after the call at http://www.amerisafe.com.

ABOUT AMERISAFE

AMERISAFE, Inc. is a specialty provider of workers’ compensation insurance focused on small to mid-sized employers engaged in hazardous industries, principally construction, trucking, logging and lumber, manufacturing, and agriculture. AMERISAFE actively markets workers’ compensation insurance in 27 states.

5

FORWARD LOOKING STATEMENTS

Statements made in this press release that are not historical facts, including statements accompanied by words such as “will,” “believe,” “anticipate,” “expect,” “estimate,” or similar words are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding AMERISAFE’s plans and performance. These statements are based on management’s estimates, assumptions and projections as of the date of this release and are not guarantees of future performance and include statements regarding management’s views and expectations of the workers’ compensation market, the Company’s growth opportunities, underwriting margins and actions by competitors. Actual results may differ materially from the results expressed or implied in these statements if the underlying assumptions prove to be incorrect or as the results of risks, uncertainties and other factors. Other factors that may affect our results are set forth in the Company’s filings with the Securities and Exchange Commission, including AMERISAFE’s Annual Report on Form 10-K for the year ended December 31, 2020. AMERISAFE cautions you not to place undue reliance on the forward-looking statements contained in this release. AMERISAFE does not undertake any obligation to publicly update or revise any forward-looking statements to reflect future events, information or circumstances that arise after the date of this release.

- Tables to Follow -

6

AMERISAFE, INC. AND SUBSIDIARIES

Consolidated Statements of Income

(in thousands)

	Three Months Ended March 31,
	2021			2020
	(unaudited)
Revenues:
Gross premiums written	$	81,514		$	87,071
Ceded premiums written		(2,517	)		(2,783	)
Net premiums written	$	78,997		$	84,288
Net premiums earned	$	70,746		$	78,990
Net investment income		6,583			7,749
Net realized gains on investments		319			992
Net unrealized gains (losses) on equity securities		5,511			(8,763	)
Fee and other income		192			201
Total revenues		83,351			79,169
Expenses:
Loss and loss adjustment expenses incurred		39,517			43,647
Underwriting and other operating costs		18,967			21,284
Policyholder dividends		1,350			1,023
Provision for investment related credit loss benefit		(108	)		(26	)
Total expenses		59,726			65,928
Income before taxes		23,625			13,241
Income tax expense		4,313			2,441
Net income	$	19,312		$	10,800

7

AMERISAFE, INC. AND SUBSIDIARIES

Consolidated Statements of Income (cont.)

(in thousands, except per share amounts)

	Three Months Ended March 31,
	2021		2020
	(unaudited)
Basic EPS:
Net income	$	19,312	$	10,800
Basic weighted average common shares		19,311,710		19,266,016
Basic earnings per share	$	1.00	$	0.56
Diluted EPS:
Net income	$	19,312	$	10,800
Diluted weighted average common shares:
Weighted average common shares		19,311,710		19,266,016
Restricted stock and stock options		97,094		86,229
Diluted weighted average common shares		19,408,804		19,352,245
Diluted earnings per share	$	0.99	$	0.56

8

AMERISAFE, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

(in thousands)

	March 31, 2021		December 31, 2020
	(unaudited)
Assets
Investments	$	1,125,134	$	1,088,744
Cash and cash equivalents		33,074		61,757
Amounts recoverable from reinsurers		110,717		105,803
Premiums receivable, net		165,170		156,760
Deferred income taxes		14,506		13,665
Deferred policy acquisition costs		18,684		17,810
Other assets		27,294		26,316
	$	1,494,579	$	1,470,855
Liabilities and Shareholders’ Equity
Liabilities:
Reserves for loss and loss adjustment expenses	$	759,758	$	760,561
Unearned premiums		137,511		129,260
Insurance-related assessments		18,441		17,995
Other liabilities		131,243		124,223
Shareholders’ equity		447,626		438,816
Total liabilities and shareholders’ equity	$	1,494,579	$	1,470,855

# # #

9

XML

Document and Entity Information	Apr. 29, 2021
Cover [Abstract]
Entity Registrant Name	AMERISAFE INC
Amendment Flag	false
Entity Central Index Key	0001018979
Document Type	8-K
Document Period End Date	Apr. 29, 2021
Entity Incorporation State Country Code	TX
Entity File Number	001-12251
Entity Tax Identification Number	75-2069407
Entity Address, Address Line One	2301 Highway 190 West
Entity Address, City or Town	DeRidder
Entity Address, State or Province	LA
Entity Address, Postal Zip Code	70634
City Area Code	(337)
Local Phone Number	463-9052
Written Communications	false
Soliciting Material	false
Pre Commencement Tender Offer	false
Pre Commencement Issuer Tender Offer	false
Security 12b Title	Common Stock, par value $0.01 per share
Trading Symbol	AMSF
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false