UPDATE 1-Amerisafe Q3 profit up on lower expenses

* Q3 EPS $0.74 vs $0.65 a year ago

* Total expenses fall almost 19 percent

* Net premiums earned down 18 percent

Nov 5 (Reuters) - Insurer Amerisafe Inc's (AMSF.O) third-quarter profit rose, despite a sharp drop in premiums earned, as the company managed to keep its expenses low.

The workers' compensation insurer earned $15 million, or 74 cents a share, compared with $13.3 million, or 65 cents a share, a year earlier.

Total expenses fell almost 19 percent to $46.5 million, while loss and loss adjustment expense fell almost 21 percent.

Net premiums earned too dropped more than 18 percent to $58.1 million during the quarter.

Analysts on average were expecting 54 cents a share, according to Thomson Reuters I/B/E/S.

Net combined ratio stood at 79.3 percent, down from 79.4 percent a year earlier. Combined ratio is the percentage of premiums an insurer has to pay out in claims and expenses, and a lower number means the insurer makes more money.

Shares of the DeRidder, Louisiana-based company closed at $18.62 Thursday on Nasdaq. (Reporting by Jochelle Mendonca in Bangalore; Editing by Anil D'Silva) (jochelle.mendonca@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: jochelle.mendonca.reuters.com@reuters.net))