Nov. 5, 2009 (PR Newswire) --

DERIDDER, La., Nov. 5 /PRNewswire-FirstCall/ -- AMERISAFE, Inc. (Nasdaq: AMSF), a specialty provider of high hazard workers' compensation insurance, today announced results for the third quarter ended September 30, 2009.

Three Months Ended      Nine Months Ended
September 30,            September 30,
--------------------     -----------------
2009        2008        2009        2008
----        ----        ----        ----
(In thousands)
Gross premiums written      $55,119     $75,767    $207,085    $242,739

Net income                   15,071      13,359      39,834      38,109
Net combined ratio             79.3%       79.4%       84.0%       84.0%
Return on average equity       19.3%       20.5%       17.8%       20.3%

Net income in the third quarter of 2009 was $15.1 million compared to net income of $13.4 million in the 2008 third quarter, an increase of 12.8%. Pre-tax income for the third quarter of 2009 included $6.7 million of favorable prior year loss development and $2.0 million of realized gains from sales of certain equity securities and one previously impaired fixed maturity security. Pre-tax income for the third quarter of 2008 included $6.6 million of favorable prior year loss development, realized losses of $2.9 million from the sale of equity securities and other-than-temporary impairments, and income of $703,000 from a reinsurance commutation. Return on average equity for the 2009 third quarter was 19.3% compared to 20.5% for the same period in 2008.

Gross premiums written in the third quarter of 2009 were $55.1 million, a decrease of 27.3%, compared to $75.8 million in the third quarter of 2008. Both the voluntary premiums written in the quarter and audit premiums for policies written in prior periods decreased in the third quarter of 2009. These decreases were compounded by a $5.0 million decrease in earned but unbilled (EBUB) premium. The EBUB premium estimate was updated to reflect expected future decreased premium from policy audits resulting from projected lower payrolls during the current economic climate.

Net investment income was $6.9 million for the third quarter of 2009, compared to $7.7 million for the third quarter of 2008, a decrease of 10.8%. Third quarter revenues totaled $67.2 million, a decrease of 11.9%, compared to revenues of $76.3 million in the prior year period.

Net income for the nine months ended September 30, 2009 was $39.8 million compared to $38.1 million for the same period in 2008, an increase of 4.5%. For the nine-month period ended September 30, 2009, pre-tax income included $13.1 million of favorable prior year loss development, realized gains of $2.0 million from sales of certain securities, and income of $344,000 from a reinsurance commutation. For the nine-month period ended September 30, 2008, pre-tax income included $11.1 million of favorable prior year loss development, $2.9 million of realized losses from sales of certain equity securities and other-than-temporary impairments, and income of $1.7 million from reinsurance commutations. Net investment income decreased to $21.2 million for the nine months ended September 30, 2009, from $22.9 million for the same period in 2008, a decrease of 7.4%. The Company's return on average equity was 17.8% for the nine months ended September 30, 2009 compared to 20.3% for the same period in 2008.

For the nine months ended September 30, 2009, gross premiums written totaled $207.1 million, a 14.7% decrease from gross premiums written of $242.7 million for the same period in 2008. Revenues for the nine months ended September 30, 2009 totaled $218.2 million, an 8.4% decrease from revenues of $238.4 million for the same period in 2008.

In the third quarter of 2009, diluted earnings per share allocable to common shareholders were $0.74 compared to $0.65 in the same period of 2008. Weighted average diluted shares outstanding for the third quarter of 2009 totaled 19,273,287 shares compared to 19,207,487 shares in the third quarter of 2008.

For the nine months ended September 30, 2009, diluted earnings per share allocable to common shareholders were $1.95 compared to $1.87 in the same period of 2008. Weighted average diluted shares outstanding for the nine months ended September 30, 2009 totaled 19,247,406 shares compared to 19,119,207 shares in the nine months ended September 30, 2008.

The net combined ratio for the third quarter of 2009 was 79.3% compared to 79.4% for the same period in 2008. Loss and loss adjustment expenses for the third quarter of 2009 were $33.4 million, or 57.4% of net premiums earned, compared to $42.0 million, or 58.9% of net premiums earned, for the same period in 2008. Total underwriting expenses for the third quarter of 2009 were $12.5 million, or 21.6% of net premiums earned, compared to $14.5 million, or 20.3% of net premiums earned, for the third quarter 2008.

The net combined ratio for both the nine months ended September 30, 2009 and the nine months ended September 30, 2008 was 84.0%. Loss and loss adjustment expenses for the nine months ended September 30, 2009 were $120.6 million, or 62.2% of net premiums earned, compared to $139.2 million, or 63.9% of net premiums earned, for the same period in 2008. Total underwriting expenses for the nine months ended September 30, 2009 were $41.8 million, or 21.5% of net premiums earned, compared to $43.1 million, or 19.8% of net premiums earned, for the same period in 2008.