Workers’ compensation company Amerisafe Inc. reported a 29.7% drop in net income in the second quarter to $11 million.

The workers’ compensation insurer attributed the decline in part to changes in investment results.

According to A.M. Best, the company saw a 4.6% increase in net premiums earned, totaling $68.6 million. However, the combined ratio worsened to 90.5, up from 85.4 in the same quarter last year. The increase was due to higher loss ratios.

Voluntary premiums on written policies increased 2.7% during the quarter compared to the second quarter of 2023. This growth was driven by increased policy counts and strong retention, despite continued declines in certified loss costs.

Amerisafe reported a net loss before tax on investments of $117,000 for the quarter, compared to a gain of $75,000 in the year-ago period. Additionally, the company incurred a net loss before tax on securities of $58,000, compared to a gain of $2 million in the year-ago quarter.

Chairman and CEO J. Janelle Frost (pictured above) noted that new business generation, along with strong retention and increased audit premiums, contributed to the growth. This was also supported by favorable loss development from prior incident years.

Amerisafe Inc.’s underwriting entities currently have a Financial Strength Rating of A (Excellent) from Best’s. Amerisafe Inc. (NASDAQ: AMSF) shares closed at $49.68 on July 29, down 1.86% from the previous day’s close.

In other workers’ compensation news, Insurance Commissioner Ricardo Lara recently asked the Workers’ Compensation Insurance Rating Bureau (WCIRB) to conduct an in-depth study and collect data on silicosis claims over the past decade.

The initiative aims to better understand the implications of occupational diseases to ensure that affected workers obtain their legitimate rights.

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