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Insurer Amerisafe misses estimates on higher costs
July 30, 2012 / 9:49 PM / 5 years ago

Insurer Amerisafe misses estimates on higher costs

* Q2 oper profit $0.18 vs est $0.40

* Net premiums earned rose 16 pct to $69.7 mln

* Net interest income rose marginally to $6.6 mln

July 30 (Reuters) - Workers’ compensation insurer Amerisafe Inc’s operating profit missed analysts’ estimates by a wide margin on higher loss and loss adjustment costs.

The insurer’s net income fell 25 percent to $3.4 million, or 19 cents per share, for the second quarter.

Operating profit fell to 18 cents per share, from 24 cents per share a year earlier.

Analysts on average had expected the company to post an operating profit of 40 cents per share, according to Thomson Reuters I/B/E/S.

Net premiums earned rose 16 percent to $69.7 million.

The company’s loss and loss adjustment costs rose 22 percent to $56.7 million.

“We were disappointed with the unfavorable loss development for accident years 2010 and 2011. These accident years have been problematic for the workers’ compensation industry as a whole,” Amerisafe Chief Operating Officer Geoff Banta said in a statement.

The insurer caters to businesses in hazardous industries including construction, trucking, logging and wood products, oil and gas and manufacturing.

Net interest income rose marginally to $6.6 million.

Shares of the company, which has a market capitalization of $487.3 million, closed at $26.31 on Monday on the Nasdaq.

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