AMERISAFE INC
For the period ended Jun 30, 2026. Filed Jul 23, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Jul 23, 2026
AMSF$19.59-3.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-04-23.
0001193125-26-173630
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-07-23.
0001193125-26-314074
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 41 previous paragraphs and 52 current paragraphs.
21 unchanged; 20 reworded; 5 added; 0 removed; 0 previous and 6 current paragraphs rearranged.
Tables are not compared: 4 previous and 4 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (5)
Current report
Net Unrealized Gains (Losses) on Equity Securities. The market value of our equity securities increased by $8.1 million for the three months ended June 30, 2026 compared to an increase of $1.8 million for the same period in 2025. The increase in the market value of our equity securities was primarily due to stronger U.S. equity markets compared to the prior-year period.
Current report
Net Premiums Earned. Net premiums earned for the six months ended June 30, 2026 were $152.3 million, compared to $138.3 million for the same period in 2025, an increase of 10.2%. The increase was primarily attributable to the increase in net premiums written.
Current report
Net Realized Gains (Losses) on Investments. Net realized losses on investments for the six months ended June 30, 2026 were $0.1 million compared to net realized gains of $3.1 million for the same period in 2025. The net realized losses in the first six months of 2026 were mostly attributable to the redemption of fixed maturity securities. The net realized gains in the first six months of 2025 were mostly attributable to the sales of equity and fixed maturity securities classified as available-for-sale.
Current report
Underwriting and Certain Other Operating Costs, Commissions and Salaries and Benefits. Underwriting and certain other operating costs, commissions and salaries and benefits for the six months ended June 30, 2026 were $46.9 million, compared to $42.3 million for the same period in 2025, an increase of 10.7%. This increase was primarily due to an increase in commission expense of $1.4 million, an increase in compensation expense of $0.9 million related to an incentive bonus true-up recorded in prior year, an increase in accounts receivable write-offs of $0.8 million, and a $0.7 million decrease in profit sharing reinsurance commission. Partially offsetting these amounts was a $0.3 million decrease in mandatory pooling arrangement fees. Our expense ratio was 30.8% in the first six months of 2026 compared to 30.6% for the same period of 2025.
Current report
Effective June 30, 2026, the Company entered into an agreement to commute its 2024 reinsurance treaty, which provided $10 million in coverage for each loss occurrence in excess of $10 million. As no losses were incurred subject to the treaty, the Company exercised its option to commute and receive the no claims bonus provided for under the reinsurance agreement. Pursuant to the commutation agreement, the Company expects to receive a cash settlement of $0.7 million. The Company previously recognized the amount due under the no claims bonus provision as a reinsurance recoverable. Accordingly, the commutation is not expected to have an impact on the Company’s financial position or results of operations in future periods, other than the collection of the previously recognized recoverable of $0.7 million.
Reworded paragraphs (20)
Previous wording
The following table summarizes our consolidated financial results for the three months ended March 31, 2026 and 2025.
Current wording
The following table summarizes our consolidated financial results for the three and six months ended June 30, 2026 and 2025.
Previous wording
Gross Premiums Written. Gross premiums written for the quarter ended March 31, 2026 were $88.5 million, compared to $83.8 million for the same period in 2025, an increase of 5.6%. The increase was attributable to a $6.3 million increase in voluntary premiums on policies written during the period. The increase was partially offset by a $1.4 million decrease in premiums resulting from payroll audits and related premium adjustments for policies written in previous quarters.
Current wording
Gross Premiums Written. Gross premiums written for the quarter ended June 30, 2026 were $86.0 million, compared to $79.7 million for the same period in 2025, an increase of 7.9%. The increase was attributable to a $4.3 million increase in voluntary premiums on policies written during the period and a $2.6 million increase in premiums resulting from payroll audits and related premium adjustments for policies written in previous quarters, partially offset by a $0.7 million decrease in residual market premium.
Previous wording
Net Premiums Written. Net premiums written for the quarter ended March 31, 2026 were $84.4 million, compared to $79.6 million for the same period in 2025, an increase of 6.1%. The increase was primarily attributable to the increase in gross premiums written. As a percentage of gross premiums earned, ceded premiums were 5.1% for the first quarter of 2026 compared to 5.7% for the first quarter of 2025. The decrease in ceded premiums as a percentage of gross premiums earned is a result of a change in our 2026 reinsurance treaties. For additional information, see Item 1, “Business—Reinsurance” in our Annual Report on Form 10-K for the year ended December 31, 2025.
Current wording
Net Premiums Written. Net premiums written for the quarter ended June 30, 2026 were $81.8 million, compared to $75.5 million for the same period in 2025, an increase of 8.3%. The increase was primarily attributable to the increase in gross premiums written. As a percentage of gross premiums earned, ceded premiums were 5.2% for the second quarter of 2026 compared to 5.7% for the second quarter of 2025. The decrease in ceded premiums as a percentage of gross premiums earned is a result of a change in our 2026 reinsurance treaties. For additional information, see Item 1, “Business—Reinsurance” in our Annual Report on Form 10-K for the year ended December 31, 2025.
Previous wording
Net Premiums Earned. Net premiums earned for the first quarter of 2026 were $75.1 million, compared to $68.9 million for the same period in 2025, an increase of 9.0%. The increase was primarily attributable to the increase in net premiums written during the period.
Current wording
Net Premiums Earned. Net premiums earned for the second quarter of 2026 were $77.3 million, compared to $69.4 million for the same period in 2025, an increase of 11.4%. The increase was primarily attributable to the increase in net premiums written.
Previous wording
Net Investment Income. Net investment income for the quarter ended March 31, 2026 was $6.6 million, compared to $6.7 million for the same period in 2025, a decrease of 0.8%. The decrease was due to slightly lower average invested asset balances in the period compared to the same period in the prior year. Average invested assets, including cash and cash equivalents, were $790.6 million in the quarter ended March 31, 2026 compared to an average of $835.5 million for the same period in 2025, a decrease of 5.4%. The pre-tax investment yield on our investment portfolio was 3.4% per annum during the quarter ended March 31, 2026 compared to 3.2% per annum for the same period in 2025. The tax-equivalent yield on our investment portfolio was 3.9% per annum for the quarter ended March 31, 2026 compared to 3.8% per annum for the same period in 2025. The tax-equivalent yield is calculated using the effective interest rate and the appropriate marginal tax rate.
Current wording
Net Investment Income. Net investment income for the quarter ended June 30, 2026 was $6.5 million, compared to $6.7 million for the same period in 2025, a decrease of 2.4%. The decrease was due to lower average invested asset balances in the period compared to the same period in the prior year. The decrease in average invested assets was primarily attributable to capital returned to shareholders through dividend payments and share repurchases, which reduced cash and invested asset balances during the period. Average invested assets, including cash and cash equivalents, were $772.6 million in the quarter ended June 30, 2026 compared to average invested assets of $813.1 million for the same period in 2025, a decrease of 5.0%. The pre-tax investment yield on our investment portfolio was 3.4% per annum during the quarter ended June 30, 2026 compared to 3.3% per annum for the same period in 2025. The tax-equivalent yield on our investment portfolio was 3.9% per annum for the quarters ended June 30, 2026 and 2025. The tax-equivalent yield is calculated using the effective interest rate and the appropriate marginal tax rate.
Previous wording
Net Realized Gains (Losses) on Investments. Net realized losses in the quarter ended March 31, 2026 were immaterial, compared to immaterial net realized gains for the same period in 2025. Net realized results for both periods were attributable to the sales of fixed maturity securities classified as available-for-sale and redemption of fixed maturity securities.
Current wording
Net Realized Gains (Losses) on Investments. Net realized losses on investments in the quarter ended June 30, 2026 were $0.1 million compared to net realized gains of $3.1 million for the same period in 2025. The net realized losses in the second quarter of 2026 were mostly attributable to the redemption of fixed maturity securities. The net realized gains in the second quarter of 2025 were mostly attributable to the sales of equity and fixed maturity securities classified as available-for-sale.
Previous wording
Loss and Loss Adjustment Expenses Incurred. Loss and loss adjustment expenses (LAE) incurred totaled $46.4 million for the three months ended March 31, 2026, compared to $40.2 million for the same period in 2025, an increase of $6.3 million, or 15.6%. The current accident year loss and LAE incurred totaled $54.1 million for the three months ended March 31, 2026, compared to $48.9 million for the same period in 2025. As of March 31, 2026, our initial estimate for loss and LAE for accident year 2026 is 72.0% of net premiums earned, reflective of pressure from continued rate decreases and long-term claim frequency and severity trends, as well as medical inflation. As of March 31, 2025, our initial estimate for loss and LAE for accident year 2025 was 71.0% of net premiums earned and was increased to 72.0% in the fourth quarter of 2025 largely due to the frequency of severity observed in that accident year. We recorded favorable prior accident year development of $7.6 million in the first quarter of 2026, compared to favorable prior accident year development of $8.7 million in the same period of 2025, as further discussed below in “Prior Year Development.” Our net loss ratio was 61.9% in the first quarter of 2026, compared to 58.3% for the same period of 2025.
Current wording
Loss and Loss Adjustment Expenses Incurred. Loss and loss adjustment expenses (LAE) incurred totaled $48.3 million for the three months ended June 30, 2026, compared to $40.7 million for the same period in 2025, an increase of $7.7 million, or 18.9%. The current accident year loss and LAE incurred totaled $55.6 million for the three months ended June 30, 2026, compared to $49.3 million for the same period in 2025. As of June 30, 2026, our estimate for loss and LAE for accident year 2026 continues to be 72.0% of net premiums earned, reflective of pressure from continued rate decreases and long-term claim frequency and severity trends, as well as medical inflation. Our initial estimate for loss and LAE for accident year 2025 of 71.0% of net premiums earned was increased to 72.0% in the fourth quarter of 2025 largely due to the frequency of severity observed in that accident year. We recorded favorable prior accident year development of $7.3 million in the second quarter of 2026, compared to favorable prior accident year development of $8.6 million in the same period of 2025, as further discussed below in “Prior Year Development.” Our net loss ratio was 62.6% in the second quarter of 2026, compared to 58.6% for the same period of 2025.
Previous wording
Underwriting and Certain Other Operating Costs, Commissions and Salaries and Benefits. Underwriting and certain other operating costs, commissions and salaries and benefits for the quarter ended March 31, 2026 were $22.3 million, compared to $20.6 million for the same period in 2025, an increase of 8.1%. This increase was primarily due to a $0.9 million decrease in profit sharing reinsurance commission and a $0.6 million increase in commission expense. Our expense ratio was 29.7% in the first quarter of 2026 compared to 29.9% in the first quarter of 2025.
Current wording
Underwriting and Certain Other Operating Costs, Commissions and Salaries and Benefits. Underwriting and certain other operating costs, commissions and salaries and benefits for the quarter ended June 30, 2026 were $24.6 million, compared to $21.7 million for the same period in 2025, an increase of 13.1%. This increase was primarily due to a $1.1 million increase in compensation expense related to an incentive bonus true-up recorded in prior year, a $0.8 million increase in accounts receivable write-offs and a $0.7 million increase in commission expense. Partially offsetting these amounts was a $0.3 million decrease in mandatory pooling arrangement fees. Our expense ratio was 31.8% in the second quarter of 2026 compared to 31.3% in the second quarter of 2025.
Previous wording
Net Unrealized Losses on Equity Securities. The market value of our equity securities decreased by $1.7 million for the three months ended March 31, 2026 compared to a decrease of $3.2 million for the same period in 2025.
Current wording
Net Unrealized Gains (Losses) on Equity Securities. The market value of our equity securities increased by $6.5 million for the six months ended June 30, 2026 compared to a decrease of $1.3 million for the same period in 2025. The increase in the market value of our equity securities was primarily due to stronger U.S. equity markets compared to the prior-year period.
Previous wording
Income Tax Expense. Income tax expense for the three months ended March 31, 2026 was $2.0 million, compared to $2.3 million for the same period in 2025. The effective tax rate for the Company for the quarter ended March 31, 2026 was 19.8% compared to 20.2% in the first quarter of 2025. The decrease in the effective tax rate was due to a higher proportion of income from tax-exempt investments for the three months ended March 31, 2026 compared with the same period of 2025.
Current wording
Income Tax Expense. Income tax expense for the six months ended June 30, 2026 was $5.7 million, compared to $5.8 million for the same period in 2025. The effective tax rate for the Company decreased to 20.0% for the six months ended June 30, 2026 from 20.1% for the six months ended June 30, 2025. The decrease in the effective tax rate reflected the impact of tax exempt investment income on the calculation of the Company's income tax provision for the six months ended June 30, 2026 compared to the six months ended June 30, 2025.
Previous wording
Net cash used in operating activities was $2.7 million for the three months ended March 31, 2026, which represented a $0.9 million increase from $1.8 million in net cash used in operating activities for the three months ended March 31, 2025. This decrease in operating cash flow was due to a $2.2 million increase in underwriting expenses paid and a $1.7 million increase in losses paid, partially offset by a $2.5 million increase in premium collections and a $0.6 million increase in reinsurance recoveries.
Current wording
Net cash used in operating activities was $0.9 million for the six months ended June 30, 2026, which represented a $9.3 million decrease from $10.2 million in net cash used in operating activities for the six months ended June 30, 2025. This decrease in cash used in operations was due to a $11.5 million increase in premium collections, a $3.8 million decrease in federal taxes paid, and a $1.5 million increase in reinsurance recoveries. Partially offsetting these impacts were a $5.4 million increase in underwriting expenses paid, a $1.3 million increase in losses paid and a $0.5 million decrease in net investment income.
Previous wording
Net cash used in investing activities was $12.5 million for the three months ended March 31, 2026, compared to net cash provided by investment activities of $9.9 million for the same period in 2025. Cash provided by sales and maturities of investments totaled $22.9 million for the three months ended March 31, 2026, compared to $20.4 million for the same period in 2025. A total of $35.3 million in cash was used to purchase investments in the three months ended March 31, 2026, compared to $10.5 million in purchases for the same period in 2025. There were immaterial purchases of property and equipment in the three months ended March 31, 2026 and 2025.
Current wording
Net cash provided by investing activities was $30.3 million for the six months ended June 30, 2026, compared to net cash provided by investment activities of $33.1 million for the same period in 2025. Cash provided by sales and maturities of investments totaled $73.0 million for the six months ended June 30, 2026, compared to $54.3 million for the same period in 2025. A total of $42.7 million in cash was used to purchase investments in the six months ended June 30, 2026, compared to $20.2 million in purchases for the same period in 2025. There were immaterial purchases of property and equipment in the six months ended June 30, 2026, compared to $1.1 million for the same period in 2025.
Previous wording
Net cash used in financing activities in the three months ended March 31, 2026 was $12.5 million, compared to net cash used in financing activities of $7.4 million for the same period in 2025. In the three months ended March 31, 2026, $7.8 million of cash was used for dividends paid to shareholders compared to $7.4 million in the same period of 2025. In the three months ended March 31, 2026, there were repurchases of outstanding shares of our common stock of $4.0 million compared to none for the same period in 2025. Share-based compensation-related payroll tax withholding was $0.7 million in the three months ended March 31, 2026, compared to none in the same period in 2025.
Current wording
Net cash used in financing activities in the six months ended June 30, 2026 was $25.8 million, compared to net cash used in financing activities of $18.4 million for the same period in 2025. In the six months ended June 30, 2026, $15.4 million of cash was used for dividends paid to shareholders compared to $14.9 million in the same period of 2025. In the six months ended June 30, 2026, there were repurchases of outstanding shares of our common stock of $9.7 million compared to $2.8 million for the same period in 2025. Share-based compensation related payroll tax withholding was $0.7 million in the six months ended June 30, 2026 and 2025.
Previous wording
The carrying value of our investment portfolio, including cash and cash equivalents, totaled $773.6 million at March 31, 2026, compared to $796.8 million at December 31, 2025, a decrease of 2.9%. Purchases of fixed maturity securities are classified as available-for-sale or held-to-maturity at the time of purchase based on the individual security. The Company has the ability and positive intent to hold certain investments until maturity. Therefore, fixed maturity securities classified as held-to-maturity, as defined by FASB ASC Topic 320, Investments-Debt and Equity Securities, are recorded at amortized cost net of allowance for credit losses. Our equity securities and fixed maturity securities classified as available-for-sale are reported at fair value.
Current wording
The carrying value of our investment portfolio, including cash and cash equivalents, totaled $770.7 million at June 30, 2026, compared to $796.8 million at December 31, 2025, a decrease of 3.3%. Purchases of fixed maturity securities are classified as available-for-sale or held-to-maturity at the time of purchase based on the individual security. The Company has the ability and positive intent to hold certain investments until maturity. Therefore, fixed maturity securities classified as held-to-maturity, as defined by FASB ASC Topic 320, Investments-Debt and Equity Securities, are recorded at amortized cost net of allowance for credit losses. Our equity securities and fixed maturity securities classified as available-for-sale are reported at fair value.
Previous wording
We classify the majority of our fixed maturity securities as “held-to-maturity.” We do not reflect any changes in non-credit related unrecognized gains and losses until realized. Upon the adoption of ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), management is required to estimate expected credit related losses for these securities and recognize a credit loss allowance on the balance sheet with a corresponding adjustment to earnings. Subsequent adjustments to the estimated expected credit related losses are recognized through earnings within the category “provision for investment related credit loss benefit”, and adjustments to the credit loss allowance. The remainder of our fixed maturity securities are classified as “available-for-sale.” These investments are valued at fair value at the end of each period, with changes in fair value flowing through other comprehensive income. Equity securities are valued at fair value with changes in the fair value recognized in net income.
Current wording
We classify the majority of our debt fixed maturity securities as “held-to-maturity”. We do not reflect any changes in non-credit related unrecognized gains and losses until realized. Upon the adoption of ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), management is required to estimate expected credit related losses for these securities and recognize a credit loss allowance on the balance sheet with a corresponding adjustment to earnings. Subsequent adjustments to the estimated expected credit related losses are recognized through earnings within the category “provision for investment related credit loss benefit” and adjustments to the credit loss allowance. The remainder of our fixed maturity securities are classified as “available-for-sale”. These investments are valued at fair value at the end of each period, with changes in fair value flowing through other comprehensive income. Equity securities are valued at fair value with changes in the fair value recognized in net income.
Previous wording
The Company recorded favorable prior accident year loss and loss adjustment expense development of $7.6 million in the three months ended March 31, 2026. The table below sets forth the favorable development for the three months ended March 31, 2026 and 2025 for accident years 2021 through 2025 and, collectively, for all accident years prior to 2021.
Current wording
The Company recorded favorable prior accident year loss and LAE development of $7.3 million in the three months ended June 30, 2026. The table below sets forth the favorable development for the three and six months ended June 30, 2026 and 2025 for accident years 2021 through 2025 and, collectively, for all accident years prior to 2021.
Previous wording
The table below sets forth the number of open claims as of March 31, 2026 and 2025, and the number of claims reported and closed during the three months then ended.
Current wording
The table below sets forth the number of open claims as of June 30, 2026 and 2025, and the number of claims reported and closed during the three and six months then ended.
Previous wording
The number of open claims at March 31, 2026 increased by 301 claims as compared to the number of open claims at March 31, 2025. The increase in the number of claims reported is directly correlated to the increase of our in-force policy count.
Current wording
The number of open claims at June 30, 2026 increased by 293 claims as compared to the number of open claims at June 30, 2025. The increase in the number of claims reported is directly correlated to the increase of our in-force policy count.
Previous wording
At March 31, 2026, our incurred amounts for certain accident years, primarily 2012, 2020 and 2023, developed more favorably than management previously expected. The revisions to the Company’s reserves reflect new information gained by claims adjusters in the normal course of adjusting claims and is reflected in the Company’s financial statements when the information becomes available. It is typical for more serious claims to take several years or longer to settle and the Company continually revises estimates as more information about claimants’ medical conditions and potential disability becomes known and the claims get closer to being settled. Multiple factors can cause both favorable and unfavorable loss development. The favorable loss development we experienced across accident years was largely due to favorable case reserve development from closed claims and claims where the worker had reached maximum medical improvement.
Current wording
At June 30, 2026, our incurred amounts for certain accident years developed more favorably than management previously expected. The revisions to the Company’s reserves reflect new information gained by claims adjusters in the normal course of adjusting claims and is reflected in the Company’s financial statements when the information becomes available. It is typical for more serious claims to take several years or longer to settle and the Company continually revises estimates as more information about claimants’ medical conditions and potential disability becomes known and the claims get closer to being settled. Multiple factors can cause both favorable and unfavorable loss development. The favorable loss development we experienced across accident years was largely due to favorable case reserve development from closed claims and claims where the worker had reached maximum medical improvement.
Previous wording
Our reserves for loss and loss adjustment expenses are inherently uncertain and our focus on providing workers’ compensation insurance to employers engaged in hazardous industries generally results in us receiving relatively fewer but more severe claims than many other workers’ compensation insurance companies. As a result of this focus on higher severity, lower frequency business, our reserve for loss and loss adjustment expenses may have greater volatility than other workers’ compensation insurance companies. For additional information, see Item 1, “Business—Loss Reserves” in our Annual Report on Form 10-K for the year ended December 31, 2025.
Current wording
Our reserves for loss and LAE are inherently uncertain and our focus on providing workers’ compensation insurance to employers engaged in hazardous industries generally results in us receiving relatively fewer but more severe claims than many other workers’ compensation insurance companies. As a result of this focus on higher severity, lower frequency business, our reserve for loss and LAE may have greater volatility than other workers’ compensation insurance companies. For additional information, see Item 1, “Business—Loss Reserves” in our Annual Report on Form 10-K for the year ended December 31, 2025.
Rearranged current paragraphs (6)
Current report — wording carried from elsewhere
Income Tax Expense. Income tax expense for the three months ended June 30, 2026 was $3.7 million, compared to $3.5 million for the same period in 2025. The effective tax rate for the quarters ended June 30, 2026 and 2025 was 20.1%.
Current report — wording carried from elsewhere
Consolidated Results of Operations for Six Months Ended June 30, 2026 Compared to June 30, 2025
Current report — wording carried from elsewhere
Gross Premiums Written. Gross premiums written for the six months ended June 30, 2026 were $174.5 million, compared to $163.5 million for the same period in 2025, an increase of 6.7%. The increase was attributable to a $10.7 million increase in voluntary premiums on policies written during the period and a $1.2 million increase in premiums resulting from payroll audits and related premium adjustments for policies written in previous quarters. These increases were partially offset by a $0.9 million decrease in residual market premium.
Current report — wording carried from elsewhere
Net Premiums Written. Net premiums written for the six months ended June 30, 2026 were $166.2 million, compared to $155.1 million for the same period in 2025, an increase of 7.1%. The increase was primarily attributable to an increase in gross premiums written. As a percentage of gross premiums earned, ceded premiums were 5.2% for the first six months of 2026, compared to 5.7% in the same period of 2025. The decrease in ceded premiums as a percentage of gross premiums earned is a result of a change in our 2026 reinsurance treaties. For additional information, see Item 1, “Business—Reinsurance” in our Annual Report on Form 10-K for the year ended December 31, 2025.
Current report — wording carried from elsewhere
Net Investment Income. Net investment income for the first six months of 2026 was $13.1 million, compared to $13.3 million for the same period in 2025, a decrease of 1.6%. The decrease was due to lower average invested asset balances in the period compared to the same period in the prior year. The decrease in average invested assets was primarily attributable to capital returned to shareholders through dividend payments and share repurchases, which reduced cash and invested asset balances during the period. Average invested assets, including cash and cash equivalents, were $782.8 million in the six months ended June 30, 2026, compared to average invested assets of $824.1 million in the same period in 2025, a decrease of 5.0%. The pre-tax investment yield on our investment portfolio was 3.3% per annum for each of the six months ended June 30, 2026, and 2025. The tax-equivalent yield on our investment portfolio was 3.9% per annum for the first six months of 2026 and 2025. The tax-equivalent yield is calculated using the effective interest rate and the appropriate marginal tax rate.
Current report — wording carried from elsewhere
Loss and Loss Adjustment Expenses Incurred. Loss and LAE incurred totaled $94.8 million for the six months ended June 30, 2026, compared to $80.8 million for the same period in 2025, an increase of $14.0 million, or 17.3%. The current accident year loss and LAE incurred totaled $109.7 million for the six months ended June 30, 2026, compared to $98.2 million for the same period in 2025. As of June 30, 2026, our estimate for loss and LAE for accident year 2026 continues to be 72.0% of net premiums earned, reflective of pressure from continued rate decreases and long-term claim frequency and severity trends, as well as medical inflation. Our initial estimate for loss and LAE for accident year 2025 of 71.0% of net premiums earned was increased to 72.0% in the fourth quarter of 2025 largely due to the frequency of severity observed in that accident year. We recorded favorable prior accident year development of $14.9 million in the first six months of 2026, compared to favorable prior accident year development of $17.4 million in the same period of 2025, as further discussed below in “Prior Year Development.” Our net loss ratio was 62.2% in the first six months of 2026, compared to 58.5% for the same period of 2025.