Amerisafe Inc., a specialty provider of hazardous workers’ compensation insurance headquartered in DeRidder, La., saw a 19 percent growth in premium written during the first quarter ended March 31, 2012, compared with the first quarter of 2011.
The company recorded gross premiums written of $ 84,924,000 in the first quarter of 2012 versus $71,359,000 during the same period in 2011.
Commenting on these results, Allen Bradley, Amerisafe’s chairman and chief executive officer, stated, “We are pleased with the solid results of the first quarter. Workers’ compensation market conditions continue to improve both in terms of product pricing and demand. We remain focused on expanding our business in a responsible and profitable fashion.”
The company’s current accident year loss ratio is 76.5 percent compared with last year’s 77.0 percent. Its net underwriting expense ratio is 21.1 percent for Q1 2012 down from 24.2 percent in Q1 2011. The net combined ratio is 96.0 percent versus 98.3 percent in first quarter 2011.
During the first quarter of 2012, gross premiums written increased by $5.4 million due to positive payroll audits and related premium adjustments for policies written in previous periods, the company said in its announcement.
Payroll audits and related premium adjustments reduced premiums written by $0.1 million in the first quarter of 2011.
In the 2012 period, the company experienced favorable loss development for prior accident years which reduced loss and loss adjustment expenses by $1.6 million. Accident years prior to 2010 contributed favorable development of $5.2 million, while accident year 2010 experienced $3.6 million of unfavorable development.
Geoff Banta, president and chief operating officer, noted, “Our premium growth this quarter resulted from both increased organic growth and improving economic conditions within our core industries. We believe that our strengthened pricing bodes well for future underwriting results.”
Amerisafe actively markets workers’ compensation insurance in 35 states and the District of Columbia. It has a focus on small to mid-sized employers engaged in hazardous industries, principally construction, trucking and agriculture.