Nasdaq:AMSF
AMERISAFE INC
A premier asset protection solutions provider combining risk management expertise with robust investment returns for commercial and government clients.
Key Metrics
Investment Thesis
Bull Case
Investors may consider AmeriSafe for its diversified revenue streams across insurance and cybersecurity sectors which provide stability against single-market shocks. The company's ability to generate $47.1M in net profit while holding substantial marketable securities suggests a strong balance sheet capable of weathering economic headwinds. Additionally, the consistent revenue growth from $294.7M in 2022 to $317.3M in 2025 indicates successful market expansion and client acquisition strategies.
Bear Case
The declining net income trend from $62.1M in 2023 to $47.1M in 2025 signals potential margin pressure or one-time costs that could persist if not addressed. Significant cash outflows from financing activities of over $170M combined with a retained earnings deficit suggest aggressive capital allocation that may deplete reserves if investment returns do not improve. Regulatory changes in the insurance industry could further erode profitability given the company's heavy reliance on traditional brokerage models.
About AMERISAFE INC
AmeriSafe Inc. operates as an asset protection solutions provider serving commercial and government markets across North America, specializing in risk assessment, insurance brokerage, and cybersecurity services. The company leverages its extensive network of agents to deliver tailored protection strategies while maintaining a diversified portfolio of investment securities that contribute significantly to its cash generation. With revenue of $317.3M and net income of $47.1M in 2025, the firm demonstrates resilience despite a slight contraction in profitability compared to recent years.
Analysis
Management Discussion
While AmeriSafe reported solid operating profit of $58.9M, net income declined to $47.1M in 2025 from $55.4M the prior year, indicating a compression in effective tax rate or non-operating adjustments that offset revenue growth. The company generated substantial cash flow from operations of $11.1M but utilized significant financing cash outflows of $61.6M and other financing activities totaling $-110.2M, likely related to share buybacks or dividend payments of $48.6M. Despite a retained earnings deficit of $82.8M, the firm maintains healthy liquidity with $61.9M in cash equivalents and ends the year with positive net change in cash of $17.9M.
Industry Overview
The asset protection and risk management industry is evolving rapidly with increasing demand for integrated cybersecurity solutions alongside traditional insurance brokerage services. Companies must navigate complex regulatory landscapes while adapting to digital transformation trends that threaten legacy business models but create opportunities for tech-enabled providers. Market consolidation is common as smaller brokers struggle with rising acquisition costs and compliance burdens without achieving economies of scale.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $294.7M | $306.9M | $309.0M | $317.3M |
| Cost of Revenue | $0 | $0 | $0 | $0 |
| Gross Profit | $294.7M | $306.9M | $309.0M | $317.3M |
| Operating Expenses | $227.1M | $229.5M | $240.0M | $258.4M |
| Operating Income | $67.6M | $77.4M | $69.1M | $58.9M |
| Stock-Based Comp | $2.5M | $1.6M | $2.9M | $2.9M |
| Depreciation | $1.3M | $1.4M | $1.1M | $742.0K |
| Non-Operating Income | $0 | $0 | $0 | $0 |
| Pre-Tax Income | $67.6M | $77.4M | $69.1M | $58.9M |
| Income Tax | $12.0M | $15.3M | $13.6M | $11.7M |
| Continuing Ops | $55.6M | $62.1M | $55.4M | $47.1M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $55.6M | $62.1M | $55.4M | $47.1M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $55.6M | $62.1M | $55.4M | $47.1M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Cash & Equivalents | $61.5M | $38.7M | $44.0M | $61.9M |
| Marketable Securities | — | $0 | — | — |
| PP&E (Net) | $7.2M | $6.3M | $5.9M | $7.3M |
| Operating Leases | $106.0K | $29.0K | $276.0K | $212.0K |
| Total Assets | $1.27B | $1.23B | $1.16B | $1.13B |
| Total Liabilities | $951.8M | $936.7M | $900.5M | $878.9M |
| Shareholders' Equity | $317.4M | $292.5M | $257.3M | $251.6M |
| Retained Earnings | $145.5M | $114.3M | $84.1M | $82.8M |
| AOCI | $-13.8M | $-7.2M | $-8.9M | $-3.2M |
| Treasury Stock | $34.8M | $36.9M | $42.1M | $54.2M |
| Total L&E | $1.27B | $1.23B | $1.16B | $1.13B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $55.6M | $62.1M | $55.4M | $47.1M |
| Non-Cash Adjustments | $41.9M | $-22.3M | $-17.1M | $-32.8M |
| Working Capital Changes | $-69.3M | $-9.9M | $-14.1M | $-3.3M |
| Cash from Operations | $28.2M | $29.8M | $24.2M | $11.1M |
| Capital Expenditures | $2.1M | $553.0K | $840.0K | $2.1M |
| Cash from Investing | $75.4M | $43.9M | $72.4M | $68.4M |
| Share Buybacks | — | $2.2M | — | — |
| Dividends Paid | $100.4M | $93.3M | $85.4M | $48.6M |
| Cash from Financing | $-112.9M | $-96.5M | $-91.2M | $-61.6M |
| FX Effect | $0 | $0 | $0 | $0 |
| Net Change in Cash | $-9.3M | $-22.8M | $5.4M | $17.9M |
| Beginning Cash | $70.7M | $61.5M | $38.7M | $44.0M |
| Ending Cash | $61.5M | $38.7M | $44.0M | $61.9M |
Frequently Asked Questions
How does AMERISAFE INC make money?
Commercial Insurance Brokerage, Government Risk Management Services, Cybersecurity Solutions, and Investment Securities Portfolio
What are the main risks for AMSF?
High regulatory compliance costs in the insurance sector, sensitivity to economic downturns affecting commercial clients' ability to pay premiums, concentration of revenue within specific geographic markets, and potential volatility in investment securities holdings impacting overall earnings.
What is AMSF's competitive advantage?
Deep agent network providing localized market access, proprietary risk assessment technology enhancing client retention, and strong balance sheet yielding significant cash from operations relative to capital expenditures.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.