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): February 22, 2022

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))

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.  ☐

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

Item 2.02. Results of Operations and Financial Condition.

On February 22, 2022, AMERISAFE, Inc. (the “Company”) issued a press release announcing its financial results for the fourth quarter and year ended December 31, 2021. A copy of the Company’s press release is attached as Exhibit 99.1 to this Current Report on Form 8-K.

On February 22, 2022, AMERISAFE, Inc. (the “Company”) issued a press release announcing an increase in the quarterly dividend to $0.31 per share. A copy of the Company’s press release is attached as Exhibit 99.2 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 February 22, 2022 (Financial Results)
99.2	Press Release of AMERISAFE, Inc. dated February 22, 2022 (Dividend)
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: February 22, 2022

EX-99.1

Exhibit 99.1

  Neal A. Fuller, EVP & CFO AMERISAFE 337.463.9052

AMERISAFE ANNOUNCES 2021 FOURTH QUARTER AND YEAR-END RESULTS

Increases loss ratio as result of catastrophic claim

Reports $65.8 Million of Net Income and Return on Equity of 15.7% in 2021

Increases quarterly dividend by 6.9%

DeRidder, LA – February 22, 2022—AMERISAFE, Inc. (Nasdaq: AMSF), a specialty provider of workers’ compensation insurance focused on high hazard industries, today announced results for the fourth quarter and year ended December 31, 2021.

	Three Months Ended December 31,									Twelve Months Ended December 31,
	2021			2020			% Change			2021			2020			% Change
	(in thousands, except per share data)									(in thousands, except per share data)
Net premiums earned	$	67,733		$	74,702			-9.3	%	$	275,993		$	304,427			-9.3	%
Net investment income		6,073			7,228			-16.0	%		25,435			29,364			-13.4	%
Net realized gains (losses) on investments (pretax)		205			(332	)		NM			1,695			1,132			NM
Net unrealized gains on equity securities (pre-tax)		4,289			6,553			NM			12,315			4,204			NM
Net income		3,541			28,501			-87.6	%		65,756			86,602			-24.1	%
Diluted earnings per share	$	0.18		$	1.47			-87.8	%	$	3.39		$	4.47			-24.2	%
Operating net income		(9	)		23,586			-100.0	%		54,688			82,387			-33.6	%
Operating earnings per share	$	—		$	1.22			-100.0	%	$	2.82		$	4.25			-33.6	%
Book value per share	$	20.62		$	22.70			-9.2	%	$	20.62		$	22.70			-9.2	%
Net combined ratio		112.9	%		70.4	%					85.7	%		76.3	%
Return on average equity		3.2	%		24.8	%					15.7	%		19.9	%

G. Janelle Frost, President and Chief Executive Officer, stated, “Our specialty is underwriting and servicing high-hazard workers’ compensation and in 2021, our strength in those specialties counterbalanced slow economic growth, strong competition, declining rates, and a variety of pandemic-related uncertainties. We were responsive to the competitive environment, while applying disciplined pricing, and continued our long-held commitment to personalized claims management. Despite experiencing our first catastrophic claim, we are pleased to report a combined ratio of 85.7% and a return on average equity of 15.7% for 2021.”

INSURANCE RESULTS

	Three Months Ended									Twelve Months Ended
	December 31,									December 31,
	2021			2020			% Change			2021			2020			% Change
	(in thousands)									(in thousands)
Gross premiums written	$	55,871		$	63,082			-11.4	%	$	278,294		$	303,090			-8.2	%
Net premiums earned		67,733			74,702			-9.3	%		275,993			304,427			-9.3	%
Loss and loss adjustment expenses incurred		59,197			36,260			63.3	%		160,798			157,226			2.3	%
Underwriting and certain other operating costs, commissions, salaries and benefits		16,714			15,589			7.2	%		72,051			71,906			0.2	%
Policyholder dividends		515			768			-32.9	%		3,715			3,453			7.6	%
Underwriting profit (pre-tax)	$	(8,693	)	$	22,085			-139.4	%	$	39,429		$	71,842			-45.1	%
Insurance Ratios:
Current accident year loss ratio		107.4	%		72.5	%					80.7	%		72.5	%
Prior accident year loss ratio		-20.0	%		-24.0	%					-22.4	%		-20.9	%
Net loss ratio		87.4	%		48.5	%					58.3	%		51.6	%
Net underwriting expense ratio		24.7	%		20.9	%					26.1	%		23.6	%
Net dividend ratio		0.8	%		1.0	%					1.3	%		1.1	%
Net combined ratio		112.9	%		70.4	%					85.7	%		76.3	%

• Voluntary premiums on policies written in the quarter were 9.4% lower than the fourth quarter of 2020, primarily due to continued declines in approved loss costs in the states in which we write business. For the full year, voluntary premiums decreased by 6.3%.

• Payroll audits and related premium adjustments increased premiums written by $0.1 million in the fourth quarter of 2021, compared to $1.3 million in the fourth quarter of 2020. For the full year 2021, audits and related premium adjustments reduced premiums by $1.2 million, compared to an increase in premiums of $6.4 million in 2020.

• As a result of information just developed on a fourth quarter catastrophic claim, the Company increased its accident year loss ratio from 72.0% to 80.7% for the full year. This claim involved several individuals who were severely injured in the same incident. The Company’s catastrophic reinsurance program covers amounts up to $10 million per individual, but amounts greater than $10 million per individual are retained by the Company. As a result, AMERISAFE has increased its net estimate after reinsurance for this loss by $24 million and has increased its net accident year loss ratio. As with all AMERISAFE claims, this reserve will be evaluated periodically as the claim develops. This is the first catastrophic claim on the Company’s catastrophe reinsurance layer in our history.

2

• During the quarter, the Company experienced favorable net loss reserve development for prior accident years, which reduced loss and loss adjustment expenses by $13.6 million, primarily from accident years 2019 through 2016. For the full year, the company experienced favorable development on prior accident years of $61.9 million, compared with $63.5 million in 2020. The Company currently is estimating that its current accident year loss ratio will be 71.0% for 2022.

• For the quarter ended December 31, 2021, the underwriting expense ratio was 24.7% compared with 20.9% in the same quarter in 2020, as a result of lower earned premium, increased bad debt from NCCI pools and increased loss- based assessments. For the year ended December 31, 2021, the underwriting expense ratio was 26.1%, compared with 23.6% in 2020, largely due to lower earned premium as underwriting and other expenses for the full year were largely unchanged.

• The effective tax rate for the full year 2021 was 17.2% compared with 19.0% for 2020. The rate was lower than last year due to an increase in the proportion of tax-exempt interest income relative to underwriting profit and also due to a reduction in a valuation allowance on deferred state tax assets.

INVESTMENT RESULTS

	Three Months Ended December 31,									Twelve Months Ended December 31,
	2021			2020			% Change			2021			2020			% Change
	(in thousands)									(in thousands)
Net investment income	$	6,073		$	7,228			-16.0	%	$	25,435		$	29,364			-13.4	%
Net realized gains (losses) on investments (pre-tax)		205			(332	)		NM			1,695			1,132			NM
Net unrealized gains on equity securities (pre-tax)		4,289			6,553			NM			12,315			4,204			NM
Pre-tax investment yield		2.2	%		2.4	%					2.3	%		2.5	%
Tax-equivalent yield (1)		2.7	%		2.9	%					2.7	%		2.9	%

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

3

• Net investment income for the quarter ended December 31, 2021, decreased 16.0% to $6.1 million from $7.2 million in the fourth quarter of 2020, due to lower interest rates on fixed income securities. For the full year 2021, net investment income was $25.4 million compared with $29.4 million for 2020, a decrease of 13.4%, due to lower yields on fixed income securities.

• Net unrealized gains on equity securities were $4.3 million in the fourth quarter and $12.3 million for the full year 2021.

• As of December 31, 2021, the carrying value of AMERISAFE’s investment portfolio, including cash and cash equivalents, was $1.1 billion.

CAPITAL MANAGEMENT

In an accompanying announcement, the Company’s Board of Directors increased the regular quarterly dividend by 6.9% from $0.29 per share to $0.31 per share, payable on March 25, 2022 to shareholders of record as of March 11, 2022.

4

SUPPLEMENTAL INFORMATION

	Three Months Ended December 31,						Twelve Months Ended December 31,
	2021			2020			2021			2020
	(in thousands, except share and per share data)
Net income	$	3,541		$	28,501		$	65,756		$	86,602
Less:
Net realized gains (losses) on investments		205			(332	)		1,695			1,132
Net unrealized gains on equity securities		4,289			6,553			12,315			4,204
Tax effect (1)		(944	)		(1,306	)		(2,942	)		(1,121	)
Operating net income (2)	$	(9	)	$	23,586		$	54,688		$	82,387
Average shareholders’ equity (3)	$	439,740		$	460,363		$	419,070		$	434,516
Less:
Average accumulated other comprehensive income		14,262			20,466			17,278			16,615
Average adjusted shareholders’ equity (2)	$	425,478		$	439,897		$	401,792		$	417,901
Diluted weighted average common shares		19,420,757			19,380,109			19,408,619			19,363,809
Return on average equity (4)		3.2	%		24.8	%		15.7	%		19.9	%
Operating return on average adjusted equity (2)		0.0	%		21.4	%		13.6	%		19.7	%
Diluted earnings per share	$	0.18		$	1.47		$	3.39		$	4.47
Operating earnings per share (2)	$	—		$	1.22		$	2.82		$	4.25

(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.

CONFERENCE CALL INFORMATION

AMERISAFE has scheduled a conference call for February 23, 2022, 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 773-305-6853 (Conference Code 7786013) at least ten minutes before the call begins.

5

Investors, analysts and the general public will also have the opportunity to listen to the conference call over the Internet by visiting the “Investor Relations Home” page of the “Investors” section of the Company’s website (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 the same website location.

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, agriculture, and manufacturing. AMERISAFE actively markets workers’ compensation insurance in 27 states.

6

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, including the impact of the COVID-19 pandemic on the business and operations of the Company and our policyholders and the market value of our investment portfolio. Additional 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. 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 -

7

AMERISAFE, INC. AND SUBSIDIARIES

Consolidated Statements of Income

(in thousands)

	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	2021			2020			2021			2020
	(unaudited)						(unaudited)
Revenues:
Gross premiums written	$	55,871		$	63,082		$	278,294		$	303,090
Ceded premiums written		(3,059	)		(2,348	)		(10,469	)		(10,276	)
Net premiums written	$	52,812		$	60,734		$	267,825		$	292,814
Net premiums earned	$	67,733		$	74,702		$	275,993		$	304,427
Net investment income		6,073			7,228			25,435			29,364
Net realized gains (losses) on investments		205			(332	)		1,695			1,132
Net unrealized gains on equity securities		4,289			6,553			12,315			4,204
Fee and other income		81			70			496			350
Total revenues		78,381			88,221			315,934			339,477
Expenses:
Loss and loss adjustment expenses incurred		59,197			36,260			160,798			157,226
Underwriting and other operating costs		16,714			15,589			72,051			71,906
Policyholder dividends		515			768			3,715			3,453
Provision for investment related credit loss expense (benefit)		23			(14	)		(79	)		(27	)
Total expenses		76,449			52,603			236,485			232,558
Income before taxes		1,932			35,618			79,449			106,919
Income tax expense		(1,609	)		7,117			13,693			20,317
Net income	$	3,541		$	28,501		$	65,756		$	86,602

8

AMERISAFE, INC. AND SUBSIDIARIES

Consolidated Statements of Income (cont.)

(in thousands, except per share amounts)

	Three Months Ended				Twelve Months Ended
	December 31,				December 31,
	2021		2020		2021		2020
	(unaudited)				(unaudited)
Basic EPS:
Net income	$	3,541	$	28,501	$	65,756	$	86,602
Basic weighted average common shares		19,345,324		19,309,055		19,332,391		19,288,996
Basic earnings per share	$	0.18	$	1.48	$	3.40	$	4.49
Diluted EPS:
Net income	$	3,541	$	28,501	$	65,756	$	86,602
Diluted weighted average common shares:
Weighted average common shares		19,345,324		19,309,055		19,332,391		19,288,996
Restricted stock and stock options		75,433		71,054		76,228		74,813
Diluted weighted average common shares		19,420,757		19,380,109		19,408,619		19,363,809
Diluted earnings per share	$	0.18	$	1.47	$	3.39	$	4.47

9

AMERISAFE, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

(in thousands)

	December 31, 2021		December 31, 2020
	(unaudited)
Assets
Investments	$	1,012,571	$	1,088,744
Cash and cash equivalents		70,722		61,757
Amounts recoverable from reinsurers		120,561		105,803
Premiums receivable, net		135,100		156,760
Deferred income taxes		14,384		13,665
Deferred policy acquisition costs		17,059		17,810
Other assets		32,327		26,316
	$	1,402,724	$	1,470,855
Liabilities and Shareholders’ Equity
Liabilities:
Reserves for loss and loss adjustment expenses	$	745,278	$	760,561
Unearned premiums		121,092		129,260
Insurance-related assessments		16,850		17,995
Other liabilities		120,181		124,223
Shareholders’ equity		399,323		438,816
Total liabilities and shareholders’ equity	$	1,402,724	$	1,470,855

# # #

10

EX-99.2

Exhibit 99.2

  Neal A. Fuller, EVP & CFO AMERISAFE 337.463.9052

AMERISAFE INCREASES DIVIDEND BY 6.9%

Increases Quarterly Dividend from $0.29 to $0.31 per Share

DeRidder, LA – February 22, 2022 - AMERISAFE, Inc. (Nasdaq: AMSF), a specialty provider of workers’ compensation insurance focused on high hazard industries, today announced that its Board of Directors has increased the quarterly dividend by 6.9%, from $0.29 to $0.31 per share.

The Board of Directors declared a quarterly cash dividend of $0.31 per share, payable on March 25, 2022 to shareholders of record as of March 11, 2022.

The Company began paying dividends in 2013. Since that time, the Company has paid $32.79 in dividends per share, comprising $7.04 in regular dividends and $25.75 in special dividends.

Additional information on the Company’s fourth quarter and 2021 full year earnings can be found in AMERISAFE’s accompanying earnings release issued today.

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, agriculture, and manufacturing. AMERISAFE actively markets workers’ compensation insurance in 27 states.

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Document and Entity Information	Feb. 22, 2022
Cover [Abstract]
Entity Registrant Name	AMERISAFE INC
Amendment Flag	false
Entity Central Index Key	0001018979
Document Type	8-K
Document Period End Date	Feb. 22, 2022
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
Entity Emerging Growth Company	false
Security 12b Title	Common Stock, par value $0.01 per share
Trading Symbol	AMSF
Security Exchange Name	NASDAQ