DeRidder, La.-based workers’ compensation insurer Amerisafe Inc. reported net income of $6.6 million in the fourth quarter of 2009, an increase of 15 percent over the $5.7 million recorded in the fourth quarter of 2008. Gross premiums written in the fourth quarter of 2009 were $49.4 million compared to $65.1 million in the fourth quarter of 2008, a decrease of 24.2 percent.
The company adjusted the current accident year loss ratio for the full year from 69.0 percent to 73.8 percent. For the fourth quarter of 2009, this adjustment resulted in $12.1 million of additional loss and loss adjustment expense related to the current accident year. The current accident year loss ratio adjustment was primarily driven by severe claims occurring in the fourth quarter of 2009.
Fourth quarter revenues totaled $64.0 million for both 2009 and 2008. Revenues in the fourth quarter of 2008 were impacted by $16.0 million of net realized losses on investments.
Net income for 2009 was $46.4 million compared to $43.8 million for 2008, an increase of 5.9 percent. Excluding net realized after-tax capital gains and losses, operating net income for 2009 was $44.4 million compared to $59.1 million for 2008, a decrease of 24.8 percent.
For 2009, gross premiums written totaled $256.5 million, a 16.7 percent decrease from gross premiums written of $307.8 million for 2008. Revenues for 2009 totaled $282.2 million, a 6.7 percent decrease from revenues of $302.4 million for 2008.
The net combined ratio for the quarter ended Dec. 31, 2009, was 96.7 percent compared to 73.7 percent for the same period in 2008. The net combined ratio for 2009 was 86.9 percent compared to 81.4 percent for 2008.
Amerisafe is a specialty provider of workers’ compensation insurance focused on small to mid-sized employers engaged in hazardous industries, principally construction, trucking, agriculture, logging, oil and gas, and maritime.
Source: Amerisafe Inc., http://www.amerisafe.com.
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