Exhibit 99.1 LOGO AMERISAFE ANNOUNCES 2024 THIRD QUARTER RESULTS DeRidder, LA – October 23, 2024 - AMERISAFE, Inc. (Nasdaq: AMSF), a specialty provider of workers' compensation insurance focused on high-hazard industries, today announced results for the third quarter ended September 30, 2024. | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |----------------------------------------------------------------------------|------------------|----------------------------------------------- ...

AMERISAFE, Inc. (AMSF) is currently considered expensive on a relative basis, with the stock trading at a 22X forward 12-month price-to-earnings (P/E) ratio, which is at a premium compared with its five-year median of 20.21X and the Zacks Insurance - Accident and Health average of 13.36X. A premium valuation generally indicates that the market has strong confidence in the company’s prospects. However, this necessitates scrutiny to determine if this higher price is warranted. Image Source: Zacks Investment R ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 Title of each class Trading Symbol(s) Name of each exchange on which registered Common AMSF NASDAQ FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission File Number: 001-12251 AMERISAFE, INC. (Exact Name of Regis ...

Financial Data and Key Metrics Changes - For Q2 2024, AMERISAFE reported net income of $11 million or $0.57 per diluted share, down from $15.6 million or $0.81 per diluted share in Q2 2023 [9] - Gross written premiums increased to $76.4 million in Q2 2024 from $71.7 million in Q2 2023, reflecting a year-over-year growth of 6.6% [9][10] - The expense ratio improved to 29.8% from 30.4% in the prior year [10] - Book value per share was $15.78, and operating return on average equity was 14.4% [11] Business Line Data and Key Metrics Changes - The accident year loss ratio remained stable at 71%, consistent with the prior year [7] - Audit premiums increased significantly, contributing $7.3 million compared to $4.8 million in Q2 2023 [9] Market Data and Key Metrics Changes - The overall approved loss cost decreased by approximately 8% to 9% for the year, aligning with NCCI predictions [20] - Wage inflation in the industry was around 6%, primarily driven by increased wages rather than new employees [31] Company Strategy and Development Direction - AMERISAFE is focused on profitable growth through enhanced agent engagement and pipeline efficiency, which has led to increased policy count and retention rates [6][14] - The company emphasizes disciplined underwriting to maintain long-term profitability in a competitive marketplace [6][8] Management's Comments on Operating Environment and Future Outlook - Management noted that the workers' compensation market remains profitable despite rate softening, with a competitive environment necessitating disciplined underwriting [6] - There are concerns about medical inflation and its potential impact on costs, although current fee schedules are effectively containing costs [22][40] Other Important Information - The company declared a regular quarterly cash dividend of $0.37 per share [11] - AMERISAFE was recognized in Ward's 50 top-performing property and casualty companies for the 16th consecutive year, highlighting its financial strength and stability [51] Q&A Session Summary Question: Can you expand on the growth in the quarter? - Management indicated that growth is attributed to improved agency relationships and pipeline efficiency, with voluntary debt growth of 2.7% in the quarter [14] Question: What was the ELCM in the quarter? - The ELCM was reported at 148 [15] Question: Any details on approved loss costs? - Approved loss costs are down approximately 8% to 9% for the year, consistent with NCCI predictions [20] Question: How have large claims trended? - There have been four claims over $1 million in the first six months, indicating a stable trend [26] Question: What is driving the increase in the expense ratio? - The increase is due to investments in sales and underwriting, which are expected to level off [34] Question: How is policy count growth distributed? - Policy count growth is not concentrated in specific distribution partners or geographies, but rather due to overall efficiency improvements [36] Question: What is the outlook on severity with changes in Florida's reimbursement schedules? - Management acknowledged the potential impact of Florida's changes but emphasized their claims adjusters' expertise in managing reserves effectively [39] Question: What conditions would lead to a bottoming out of loss costs? - A combined ratio above 100 in the industry would help slow the decline in loss costs [43]

For the quarter ended June 2024, Amerisafe (AMSF) reported revenue of $76.01 million, up 3.4% over the same period last year. EPS came in at $0.58, compared to $0.73 in the year-ago quarter.The reported revenue represents a surprise of +2.44% over the Zacks Consensus Estimate of $74.2 million. With the consensus EPS estimate being $0.61, the EPS surprise was -4.92%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectat ...

Amerisafe (AMSF) came out with quarterly earnings of $0.58 per share, missing the Zacks Consensus Estimate of $0.61 per share. This compares to earnings of $0.73 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -4.92%. A quarter ago, it was expected that this insurance provider would post earnings of $0.66 per share when it actually produced earnings of $0.69, delivering a surprise of 4.55%.Over the last four quarters, the comp ...

[AMERISAFE Second Quarter 2024 Results](index=1&type=section&id=AMERISAFE%20ANNOUNCES%202024%20SECOND%20QUARTER%20RESULTS) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) AMERISAFE's Q2 2024 results show net premiums earned growth, but decreased net income and diluted EPS, with a higher net combined ratio Q2 & H1 2024 Financial Highlights (in thousands) | Metric | Q2 2024 | Q2 2023 | % Change | H1 2024 | H1 2023 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Net premiums earned | $68,633 | $65,598 | 4.6% | $137,079 | $134,779 | 1.7% | | Net income | $10,993 | $15,627 | -29.7% | $27,918 | $32,966 | -15.3% | | Diluted earnings per share | $0.57 | $0.81 | -29.6% | $1.46 | $1.72 | -15.1% | | Operating net income | $11,131 | $13,950 | -20.2% | $24,459 | $30,004 | -18.5% | | Net combined ratio | 90.5% | 85.4% | N/A | 88.8% | 83.9% | N/A | | Book value per share | $15.78 | $17.76 | -11.1% | $15.78 | $17.76 | -11.1% | - CEO G. Janelle Frost noted that gross premiums written grew **6.6%** for the quarter, driven by new business generation, strong retention, and increased audit premiums, leading to an attractive underwriting profit[3](index=3&type=chunk) [Insurance Results](index=2&type=section&id=INSURANCE%20RESULTS) Q2 2024 gross premiums written increased, but the net combined ratio deteriorated due to a higher net loss ratio, despite favorable prior year development Q2 2024 Insurance Ratios (vs. Q2 2023) | Insurance Ratio | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Current accident year loss ratio | 71.0% | 71.0% | | Prior accident year loss ratio | -11.8% | -16.7% | | **Net loss ratio** | **59.2%** | **54.3%** | | Net underwriting expense ratio | 29.8% | 30.4% | | Net dividend ratio | 1.5% | 0.7% | | **Net combined ratio** | **90.5%** | **85.4%** | - Gross premiums written grew **6.6%** in Q2 2024, supported by a **2.7%** increase in voluntary premiums from higher policy count and strong retention[4](index=4&type=chunk) - Payroll audits and related adjustments added **$7.3 million** to premiums in Q2 2024, up from **$4.8 million** in Q2 2023, due to continued payroll strength[4](index=4&type=chunk) - The company experienced **$8.1 million** in favorable net loss reserve development from prior accident years (mainly 2020-2022), which reduced loss expenses for the quarter[4](index=4&type=chunk) [Investment Results](index=3&type=section&id=INVESTMENT%20RESULTS) Q2 2024 net investment income decreased due to a smaller portfolio, partially offset by higher reinvestment rates, with minor realized and unrealized losses Q2 2024 Investment Results (in thousands) | Metric | Q2 2024 | Q2 2023 | % Change | | :--- | :--- | :--- | :--- | | Net investment income | $7,447 | $7,724 | -3.6% | | Net realized gains (losses) | $(117) | $75 | NM | | Net unrealized gains (losses) on equity securities | $(58) | $2,048 | NM | - The decrease in net investment income was due to a reduced portfolio size, partially offset by increased reinvestment rates[6](index=6&type=chunk) - The carrying value of the investment portfolio, including cash and cash equivalents, was **$884.2 million** as of June 30, 2024[6](index=6&type=chunk) [Capital Management](index=3&type=section&id=CAPITAL%20MANAGEMENT) In Q2 2024, AMERISAFE repurchased shares and paid an increased quarterly dividend, leading to a rise in book value per share - The company repurchased **91,825 shares** in Q2 2024 at an average cost of **$44.79 per share**, totaling **$4.1 million**[7](index=7&type=chunk) - A regular quarterly cash dividend of **$0.37 per share** was paid in June 2024, representing an **8.8%** increase over 2023. A similar dividend was declared for September 2024[7](index=7&type=chunk) - Book value per share was **$15.78** on June 30, 2024, a **3.3%** increase from **$15.28** at the end of 2023[8](index=8&type=chunk) [Supplemental Information and Non-GAAP Reconciliation](index=4&type=section&id=SUPPLEMENTAL%20INFORMATION) This section reconciles GAAP to non-GAAP financial measures, adjusting for investment-related items to derive operating net income, which management believes enhances understanding of core performance Q2 2024 GAAP to Non-GAAP Reconciliation (in thousands) | Metric | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Net income (GAAP) | $10,993 | $15,627 | | Less: Net realized (gains) losses | (117) | 75 | | Less: Net unrealized (gains) losses | (58) | 2,048 | | Less: Tax effect | 37 | (446) | | **Operating net income (Non-GAAP)** | **$11,131** | **$13,950** | - Management believes non-GAAP measures like operating net income and operating EPS enhance investors' understanding of the company's core operating performance[10](index=10&type=chunk) [Consolidated Financial Statements](index=7&type=section&id=Consolidated%20Financial%20Statements) This section presents the unaudited consolidated financial statements for Q2 2024 and 2023, including the Statements of Income and Balance Sheets [Consolidated Statements of Income](index=7&type=section&id=Consolidated%20Statements%20of%20Income) For Q2 2024, total revenues remained flat, while increased expenses led to a decrease in income before taxes and net income compared to the prior year Consolidated Income Statement Highlights (in thousands) | Metric | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | | :--- | :--- | :--- | | Net premiums earned | $68,633 | $65,598 | | Total revenues | $75,830 | $75,659 | | Total expenses | $62,086 | $56,091 | | Income before taxes | $13,744 | $19,568 | | **Net income** | **$10,993** | **$15,627** | [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2024, total assets slightly increased, total liabilities decreased, and shareholders' equity rose, driven by net income partially offset by capital distributions Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total Investments | $853,597 | $857,786 | | Total Assets | $1,233,529 | $1,229,162 | | Reserves for loss and loss adjustment expenses | $663,985 | $673,994 | | Total Liabilities | $932,537 | $936,711 | | Total Shareholders' Equity | $300,992 | $292,451 | [Other Information](index=5&type=section&id=Other%20Information) This section provides conference call details, a company business overview, and a standard forward-looking statements disclaimer [Conference Call Information](index=5&type=section&id=CONFERENCE%20CALL%20INFORMATION) A conference call to discuss Q2 results is scheduled for July 30, 2024, at 10:30 a.m. ET, accessible via phone or webcast - A conference call to discuss Q2 results is scheduled for July 30, 2024, at 10:30 a.m. Eastern Time[11](index=11&type=chunk) [About AMERISAFE](index=5&type=section&id=ABOUT%20AMERISAFE) AMERISAFE is a specialty workers' compensation insurer for high-hazard industries, serving small to mid-sized employers across 27 states - AMERISAFE is a specialty provider of workers' compensation insurance for hazardous industries, including construction, trucking, logging, agriculture, and manufacturing, operating in 27 states[12](index=12&type=chunk) [Forward-Looking Statements](index=6&type=section&id=FORWARD%20LOOKING%20STATEMENTS) This section contains a standard disclaimer that forward-looking statements are based on management's estimates and are subject to risks and uncertainties, not guarantees of future performance - The press release contains forward-looking statements based on management's current estimates and projections, which are not guarantees of future performance and are subject to various risks and uncertainties[13](index=13&type=chunk)

[FORWARD-LOOKING STATEMENTS](index=4&type=section&id=FORWARD-LOOKING%20STATEMENTS) The report contains forward-looking statements subject to various risks and uncertainties that could cause actual results to differ materially from expectations - The report contains forward-looking statements subject to various risks and uncertainties that could cause actual results to differ materially from expectations[8](index=8&type=chunk) - Key risk factors include increased competition, changes in relationships with independent agencies, general economic conditions (recession, inflation, interest rates, unemployment), adverse developments in capital markets affecting investments, technology breaches, decreased business activity of policyholders, greater frequency or severity of claims, adverse regulatory or judicial conditions, loss of key employees, changes in regulations/laws/taxes/accounting standards, changes in legal theories of liability, rating agency policy changes, reinsurance availability/cost/quality, and effects of hostilities or terrorism[8](index=8&type=chunk) [PART I - FINANCIAL INFORMATION](index=5&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) This section presents the company's unaudited consolidated financial statements and management's discussion and analysis for the quarter ended March 31, 2024 [Item 1. Financial Statements](index=5&type=section&id=Item%201%20Financial%20Statements) This section presents the unaudited consolidated financial statements for AMERISAFE, Inc. and its subsidiaries for the quarter ended March 31, 2024, including the balance sheets, statements of income, comprehensive income, changes in shareholders' equity, and cash flows, along with detailed notes explaining the basis of presentation, accounting policies, and specific financial line items [Consolidated Balance Sheets](index=5&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) This section provides a snapshot of the company's financial position, detailing assets, liabilities, and shareholders' equity as of March 31, 2024, and December 31, 2023 | Metric (in thousands) | March 31, 2024 (unaudited) | December 31, 2023 | | :-------------------- | :------------------------- | :------------------ | | Total Assets | $1,243,143 | $1,229,162 | | Total Liabilities | $942,049 | $936,711 | | Total Shareholders' Equity | $301,094 | $292,451 | [Consolidated Statements of Income](index=7&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20INCOME) This section presents the company's financial performance, including revenues, expenses, and net income for the three months ended March 31, 2024 and 2023 | Metric (in thousands, except per share) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :------------------------------------ | :-------------------------------- | :-------------------------------- | | Gross Premiums Written | $80,074 | $82,487 | | Net Premiums Written | $76,148 | $78,308 | | Net Premiums Earned | $68,446 | $69,181 | | Net Investment Income | $7,366 | $7,433 | | Total Revenues | $80,489 | $78,438 | | Loss and Loss Adjustment Expenses Incurred | $39,991 | $39,009 | | Total Expenses | $59,744 | $56,903 | | Income Before Income Taxes | $20,745 | $21,535 | | Income Tax Expense | $3,820 | $4,196 | | Net Income | $16,925 | $17,339 | | Basic Earnings Per Share | $0.89 | $0.91 | | Diluted Earnings Per Share | $0.88 | $0.90 | | Cash Dividends Declared Per Common Share | $0.37 | $0.34 | [Consolidated Statements of Comprehensive Income](index=8&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20COMPREHENSIVE%20INCOME) This section details the company's comprehensive income, including net income and other comprehensive income components, for the three months ended March 31, 2024 and 2023 | Metric (in thousands) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :-------------------- | :-------------------------------- | :-------------------------------- | | Net Income | $16,925 | $17,339 | | Unrealized gain (loss) on debt securities, net of tax | $(1,546) | $4,344 | | Comprehensive Income | $15,379 | $21,683 | [Consolidated Statements of Changes in Shareholders' Equity](index=9&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CHANGES%20IN%20SHAREHOLDERS'%20EQUITY) This section outlines changes in the company's shareholders' equity, including net income, dividends, and other comprehensive income, for the periods presented | Shareholder Equity Component (in thousands) | Balance at Dec 31, 2023 | Net Income | Other Comprehensive Income | Share-based Compensation | Dividends to Shareholders | Balance at Mar 31, 2024 | | :---------------------------------------- | :---------------------- | :--------- | :------------------------- | :----------------------- | :------------------------ | :---------------------- | | Common Stock (Amounts) | $207 | — | — | — | — | $207 | | Additional Paid-In Capital | $222,078 | — | — | $365 | — | $222,443 | | Treasury Stock (Amounts) | $(36,929) | — | — | — | — | $(36,929) | | Accumulated Earnings | $114,289 | $16,925 | — | — | $(7,101) | $124,113 | | Accumulated Other Comprehensive Loss, net | $(7,194) | — | $(1,546) | — | — | $(8,740) | | **Total Shareholders' Equity** | **$292,451** | **$16,925**| **$(1,546)** | **$365** | **$(7,101)** | **$301,094** | | Shareholder Equity Component (in thousands) | Balance at Dec 31, 2022 | Net Income | Other Comprehensive Income | Share-based Compensation | Dividends to Shareholders | Balance at Mar 31, 2023 | | :---------------------------------------- | :---------------------- | :--------- | :------------------------- | :----------------------- | :------------------------ | :---------------------- | | Common Stock (Amounts) | $207 | — | — | — | — | $207 | | Additional Paid-In Capital | $220,299 | — | — | $257 | — | $220,556 | | Treasury Stock (Amounts) | $(34,758) | — | — | — | — | $(34,758) | | Accumulated Earnings | $145,512 | $17,339 | — | — | $(6,517) | $156,334 | | Accumulated Other Comprehensive Loss, net | $(13,828) | — | $4,344 | — | — | $(9,484) | | **Total Shareholders' Equity** | **$317,432** | **$17,339**| **$4,344** | **$257** | **$(6,517)** | **$332,855** | [Consolidated Statements of Cash Flows](index=10&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) This section details the company's cash inflows and outflows from operating, investing, and financing activities for the three months ended March 31, 2024 and 2023 | Cash Flow Activity (in thousands) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Net Cash Provided by Operating Activities | $7,506 | $13,466 | | Net Cash Used in Investing Activities | $(5,717) | $(27,197) | | Net Cash Used in Financing Activities | $(7,096) | $(6,528) | | Change in Cash and Cash Equivalents | $(5,307) | $(20,259) | | Cash and Cash Equivalents at Beginning of Period | $38,682 | $61,469 | | Cash and Cash Equivalents at End of Period | $33,375 | $41,210 | [Notes to Unaudited Consolidated Financial Statements](index=11&type=section&id=NOTES%20TO%20UNAUDITED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) This section provides detailed explanations and disclosures for the financial statements, covering the company's business, equity incentive plans, EPS calculation, investment portfolio breakdown, income tax policies, loss reserving methodologies, comprehensive income components, fair value measurements, treasury stock, and subsequent events [Note 1. Basis of Presentation](index=11&type=section&id=Note%201.%20Basis%20of%20Presentation) This note describes the company's business and the accounting principles used in preparing the unaudited consolidated financial statements - AMERISAFE, Inc. is an insurance holding company providing workers' compensation insurance for small to mid-sized employers in hazardous industries (construction, trucking, logging, agriculture, manufacturing, telecommunications, maritime)[28](index=28&type=chunk)[29](index=29&type=chunk) - The unaudited consolidated financial statements are prepared in accordance with Form 10-Q instructions and GAAP, involving management estimates and assumptions[30](index=30&type=chunk)[31](index=31&type=chunk) [Note 2. Restricted Stock, Restricted Stock Units, and Stock Options](index=11&type=section&id=Note%202.%20Restricted%20Stock%2C%20Restricted%20Stock%20Units%2C%20and%20Stock%20Options) This note details the company's equity incentive plans, including awards of restricted stock units and related compensation expenses - The Company awarded **10,384 restricted stock units** to officers with a market value of **$0.5 million** during Q1 2024, compared to 9,064 units (**$0.5 million** market value) in Q1 2023[36](index=36&type=chunk) - Share-based compensation expense was **$0.7 million** in Q1 2024, up from **$0.2 million** in Q1 2023[36](index=36&type=chunk) [Note 3. Earnings Per Share](index=12&type=section&id=Note%203.%20Earnings%20Per%20Share) This note provides the calculation of basic and diluted earnings per share for the periods presented | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :----- | :-------------------------------- | :-------------------------------- | | Basic EPS | $0.89 | $0.91 | | Diluted EPS | $0.88 | $0.90 | | Basic Weighted Average Common Shares | 19,122,168 | 19,131,356 | | Diluted Weighted Average Common Shares | 19,211,282 | 19,235,411 | [Note 4. Investments](index=12&type=section&id=Note%204.%20Investments) This note details the composition and fair value of the company's investment portfolio, including held-to-maturity, available-for-sale, and equity securities Held-to-Maturity Securities at March 31, 2024 (in thousands) | Category | Amortized Cost | Allowance for Credit Losses | Carrying Amount | Gross Unrecognized Gains | Gross Unrecognized Losses | Fair Value | | :------- | :------------- | :-------------------------- | :-------------- | :----------------------- | :------------------------ | :--------- | | States and political subdivisions | $412,900 | $(37) | $412,863 | $2,804 | $(13,871) | $401,796 | | Corporate bonds | $48,164 | $(126) | $48,038 | — | $(2,078) | $45,960 | | U.S. agency-based mortgage-backed securities | $3,183 | — | $3,183 | $19 | $(150) | $3,052 | | U.S. Treasury securities and obligations of U.S. government agencies | $11,209 | — | $11,209 | $14 | $(379) | $10,844 | | Asset-backed securities | $31 | $(2) | $29 | — | — | $29 | | **Totals** | **$475,487** | **$(165)** | **$475,322** | **$2,837** | **$(16,478)** | **$461,681** | Available-for-Sale Securities at March 31, 2024 (in thousands) | Category | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Allowance for Credit Losses | | :------- | :------------- | :--------------------- | :---------------------- | :--------- | :-------------------------- | | States and political subdivisions | $122,545 | $260 | $(7,013) | $115,792 | — | | Corporate bonds | $159,284 | $1,509 | $(4,042) | $156,751 | — | | U.S. agency-based mortgage-backed securities | $5,032 | — | $(502) | $4,530 | — | | U.S. Treasury securities and obligations of U.S. government agencies | $14,830 | — | $(1,230) | $13,600 | — | | **Totals** | **$301,691** | **$1,769** | **$(12,787)** | **$290,673** | **—** | Equity Securities at March 31, 2024 (in thousands) | Category | Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | | :------- | :--- | :--------------------- | :---------------------- | :--------- | | Domestic common stock | $44,045 | $17,878 | — | $61,923 | | **Total equity securities** | **$44,045** | **$17,878** | **—** | **$61,923** | - Net realized losses on investments were **$0.2 million** in Q1 2024, primarily from available-for-sale fixed maturity securities, compared to net realized gains of **$0.3 million** in Q1 2023[58](index=58&type=chunk) - Net unrealized gains on equity securities recognized through income increased to **$4.8 million** in Q1 2024 from **$1.4 million** in Q1 2023[59](index=59&type=chunk) [Note 5. Income Taxes](index=17&type=section&id=Note%205.%20Income%20Taxes) This note explains the company's income tax policies, effective tax rates, and deferred tax assets and liabilities - The Company had no valuation allowance against deferred income tax assets and liabilities as of March 31, 2024 and 2023[60](index=60&type=chunk) - Income tax expense differs from the U.S. federal statutory rate of **21%** primarily due to tax-exempt investment income and state income tax accruals[60](index=60&type=chunk) [Note 6. Loss Reserves](index=17&type=section&id=Note%206.%20Loss%20Reserves) This note describes the methodologies for estimating loss and loss adjustment expenses and details prior accident year development - Reserves for loss and loss adjustment expenses are estimated based on individual case-basis valuations, statistical analyses, and historical experience for reported and unreported claims[61](index=61&type=chunk) - The Company experienced favorable prior accident year development, reducing loss and loss adjustment expenses incurred by **$8.6 million** in Q1 2024 and **$10.1 million** in Q1 2023[63](index=63&type=chunk) [Note 7. Comprehensive Income and Accumulated Other Comprehensive Loss](index=18&type=section&id=Note%207.%20Comprehensive%20Income%20and%20Accumulated%20Other%20Comprehensive%20Loss) This note outlines the components of comprehensive income and changes in accumulated other comprehensive loss - Comprehensive income includes net income plus unrealized gains and losses on available-for-sale investment securities, net of a **21% tax rate**[66](index=66&type=chunk) Changes in Accumulated Other Comprehensive Loss (in thousands) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :----- | :-------------------------------- | :-------------------------------- | | Balance, beginning of period | $(7,194) | $(13,828) | | Other comprehensive income (loss) before reclassification | $(1,637) | $4,339 | | Amounts reclassified from accumulated other comprehensive loss | $91 | $5 | | Net current period other comprehensive income (loss) | $(1,546) | $4,344 | | Balance, end of period | $(8,740) | $(9,484) | [Note 8. Fair Value Measurements](index=19&type=section&id=Note%208.%20Fair%20Value%20Measurements) This note explains the fair value hierarchy and provides details on assets measured at fair value on a recurring basis - Fair value measurements are based on a hierarchy of inputs: Level 1 (quoted prices in active markets), Level 2 (observable inputs other than Level 1 quoted prices), and Level 3 (unobservable inputs)[74](index=74&type=chunk) Assets Measured at Fair Value on a Recurring Basis at March 31, 2024 (in thousands) | Category | Level 1 Inputs | Level 2 Inputs | Level 3 Inputs | Total Fair Value | | :------- | :------------- | :------------- | :------------- | :--------------- | | Securities available-for-sale—fixed maturity: | | | | | | States and political subdivisions | — | $115,792 | — | $115,792 | | Corporate bonds | — | $156,751 | — | $156,751 | | U.S. agency-based mortgage-backed securities | — | $4,530 | — | $4,530 | | U.S. Treasury securities | $13,600 | — | — | $13,600 | | **Total securities available-for-sale—fixed maturity** | **$13,600** | **$277,073** | **—** | **$290,673** | | Equity securities: | | | | | | Domestic common stock | $61,923 | — | — | $61,923 | | **Total** | **$75,523** | **$277,073** | **—** | **$352,596** | - Equity and treasury securities are generally Level 1 assets, while other fixed maturity securities and short-term investments are Level 2 assets[83](index=83&type=chunk) [Note 9. Treasury Stock](index=23&type=section&id=Note%209.%20Treasury%20Stock) This note details the company's share repurchase program and treasury stock activities - The Company's share repurchase program, reauthorized in October 2016 with a **$25.0 million limit**, had **$10.4 million** available for future purchases as of March 31, 2024[87](index=87&type=chunk) - No shares were repurchased during the three months ended March 31, 2024 or 2023[87](index=87&type=chunk) [Note 10. Subsequent Events](index=23&type=section&id=Note%2010.%20Subsequent%20Events) This note discloses significant events occurring after the balance sheet date, such as dividend declarations - On April 23, 2024, the Board of Directors declared a quarterly cash dividend of **$0.37 per share**, payable on June 21, 2024[88](index=88&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition, results of operations, and key trends, including a business overview, critical accounting policies, detailed analysis of revenue and expense drivers, liquidity, capital resources, and prior year loss development [Business Overview](index=24&type=section&id=Business%20Overview) This section describes AMERISAFE's specialization in workers' compensation insurance for hazardous industries and its operational strategies - AMERISAFE specializes in workers' compensation insurance for small to mid-sized employers in hazardous industries (e.g., construction, trucking, logging), characterized by higher premium rates and less frequent but more severe claims[92](index=92&type=chunk) - The company employs proactive safety reviews, intensive claims management, and audit services to reduce overall claim costs and ensure appropriate premiums[92](index=92&type=chunk) - AMERISAFE actively markets insurance in **27 states** through independent agencies and its wholly-owned agency subsidiary, and is licensed in an additional **20 states**[93](index=93&type=chunk) [Critical Accounting Policies](index=24&type=section&id=Critical%20Accounting%20Policies) This section highlights accounting policies requiring significant management estimates and assumptions, crucial for financial reporting - Management identifies critical accounting policies as those requiring significant estimates and assumptions, including reserves for loss and loss adjustment expenses, amounts recoverable from reinsurers, premiums receivable, assessments, deferred policy acquisition costs, deferred income taxes, credit losses on investment securities, and share-based compensation[95](index=95&type=chunk) [Results of Operations](index=25&type=section&id=Results%20of%20Operations) The company's Q1 2024 financial results show a decrease in gross and net premiums written and earned, stable net investment income, a shift to net realized losses on investments, and increased net unrealized gains on equity securities. Total expenses increased, driven by higher loss and LAE and operating costs, leading to a slight decrease in net income and diluted EPS, while the net combined ratio worsened [Consolidated Results of Operations for Three Months Ended March 31, 2024 Compared to March 31, 2023](index=25&type=section&id=Consolidated%20Results%20of%20Operations%20for%20Three%20Months%20Ended%20March%2031%2C%202024%20Compared%20to%20March%2031%2C%202023) This section provides a detailed comparative analysis of the company's financial performance for the first quarter of 2024 versus 2023 Consolidated Financial Results (in thousands, except per share and ratios) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | Change (%) | | :------------------------------------ | :-------------------------------- | :-------------------------------- | :--------- | | Gross Premiums Written | $80,074 | $82,487 | -2.9% | | Net Premiums Earned | $68,446 | $69,181 | -1.1% | | Net Investment Income | $7,366 | $7,433 | -0.9% | | Total Revenues | $80,489 | $78,438 | +2.6% | | Total Expenses | $59,744 | $56,903 | +5.0% | | Net Income | $16,925 | $17,339 | -2.4% | | Diluted Earnings Per Common Share | $0.88 | $0.90 | -2.2% | | Net Combined Ratio | 87.3% | 82.2% | +5.1 pp | | Return on Average Equity | 22.8% | 21.3% | +1.5 pp | | Book Value Per Share | $15.74 | $17.38 | -9.5% | - Gross premiums written decreased by **2.9%** to **$80.1 million**, primarily due to a **$2.5 million** decrease in payroll audits and related premium adjustments, partially offset by a **$0.3 million** increase in residual market premium[98](index=98&type=chunk) - Net premiums earned decreased by **1.1%** to **$68.4 million**, mainly due to the decrease in net premiums written[99](index=99&type=chunk) - Net investment income remained stable at **$7.4 million**, despite a **6.0% decrease** in average invested assets. The pre-tax investment yield increased to **3.3%** (from 3.1%) and tax-equivalent yield to **3.7%** (from 3.5%)[100](index=100&type=chunk) - Net realized losses on investments were **$0.2 million** in Q1 2024, a shift from net realized gains of **$0.3 million** in Q1 2023, primarily due to sales of fixed maturity securities[101](index=101&type=chunk) - Net unrealized gains on equity securities increased significantly to **$4.8 million** in Q1 2024, up from **$1.4 million** in Q1 2023[102](index=102&type=chunk) - Loss and loss adjustment expenses incurred increased by **2.5%** to **$40.0 million**. The net loss ratio was **58.4%** in Q1 2024, up from **56.4%** in Q1 2023[103](index=103&type=chunk) - Underwriting and certain other operating costs, commissions, and salaries and benefits increased to **$18.7 million** (from $17.0 million), primarily due to the absence of a **$3.3 million** profit sharing reinsurance commission benefit in Q1 2023 and a **$1.0 million** increase in compensation expense. The expense ratio rose to **27.3%** (from 24.5%)[104](index=104&type=chunk) - Income tax expense decreased to **$3.8 million** (from $4.2 million), with the effective tax rate falling to **18.4%** (from 19.5%) due to a higher proportion of tax-exempt investment income[105](index=105&type=chunk) [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is primarily driven by premiums, investment income, and investment sales. Net cash provided by operating activities decreased in Q1 2024, while net cash used in investing activities significantly reduced due to changes in investment purchases and sales. Net cash used in financing activities increased due to higher dividend payments [Investment Portfolio](index=28&type=section&id=Investment%20Portfolio) This section details the composition and changes in the company's investment portfolio, a key component of its liquidity - Net cash provided by operating activities decreased by **$6.0 million** to **$7.5 million** in Q1 2024, mainly due to an **$11.8 million** decrease in reinsurance recoveries and a **$0.4 million** decrease in investment income, partially offset by a **$5.9 million** decrease in losses paid and a **$0.5 million** increase in premium collections[106](index=106&type=chunk) - Net cash used in investing activities significantly decreased to **$5.7 million** in Q1 2024 (from $27.2 million in Q1 2023), driven by higher proceeds from investment sales and maturities (**$36.9 million** vs. $24.1 million) and lower investment purchases (**$41.9 million** vs. $51.2 million)[107](index=107&type=chunk) - Net cash used in financing activities increased to **$7.1 million** (from $6.5 million) in Q1 2024, primarily due to higher dividends paid to shareholders[108](index=108&type=chunk) - The total investment portfolio, including cash and cash equivalents, increased by **0.4%** to **$899.9 million** at March 31, 2024[109](index=109&type=chunk) Investment Portfolio Composition at March 31, 2024 (in thousands) | Category | Carrying Amount | Percentage of Portfolio | | :------- | :-------------- | :---------------------- | | Fixed maturity securities—held-to-maturity: | | | | States and political subdivisions | $412,863 | 45.9% | | Corporate bonds | $48,038 | 5.3% | | U.S. agency-based mortgage-backed securities | $3,183 | 0.4% | | U.S. Treasury securities and obligations of U.S. government agencies | $11,209 | 1.2% | | Asset-backed securities | $29 | — | | **Total fixed maturity securities—held-to-maturity** | **$475,322** | **52.8%** | | Fixed maturity securities—available-for-sale: | | | | States and political subdivisions | $115,792 | 12.9% | | Corporate bonds | $156,751 | 17.4% | | U.S. agency-based mortgage-backed securities | $4,530 | 0.5% | | U.S. Treasury securities and obligations of U.S. government agencies | $13,600 | 1.5% | | **Total fixed maturity securities—available-for-sale** | **$290,673** | **32.3%** | | Equity securities | $61,923 | 6.9% | | Short-term investments | $38,641 | 4.3% | | Cash and cash equivalents | $33,375 | 3.7% | | **Total investments, including cash and cash equivalents** | **$899,934** | **100.0%** | [Prior Year Development](index=28&type=section&id=Prior%20Year%20Development) The company recorded favorable prior accident year development of $8.6 million in Q1 2024, primarily from accident years prior to 2019, and saw a decrease in open claims. This favorable development is attributed to new information from claims adjusters and claims reaching maximum medical improvement, though reserve estimates remain inherently uncertain due to the nature of hazardous industry claims - The Company recorded favorable prior accident year development of **$8.6 million** in Q1 2024, compared to **$10.1 million** in Q1 2023[112](index=112&type=chunk) Net Favorable Development by Accident Year (in millions) | Accident Year | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :------------ | :-------------------------------- | :-------------------------------- | | 2023 | — | — | | 2022 | — | — | | 2021 | — | — | | 2020 | $1.7 | $1.5 | | 2019 | $1.4 | $2.5 | | Prior to 2019 | $5.5 | $6.1 | | **Total net development** | **$8.6** | **$10.1** | - The number of open claims decreased by **495** to **3,812** at March 31, 2024, compared to March 31, 2023[115](index=115&type=chunk) - Favorable loss development was largely due to favorable case reserve development from closed claims and claims where the worker had reached maximum medical improvement[115](index=115&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=30&type=section&id=Item%203%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks are credit risk, interest rate risk, and equity price risk, with no material changes in its market risk profile since December 31, 2023 - Major components of market risk affecting the company are credit risk, interest rate risk, and equity price risk[118](index=118&type=chunk) - There have been no material changes in the quantitative or qualitative aspects of the company's market risk profile since December 31, 2023[118](index=118&type=chunk) [Item 4. Controls and Procedures](index=31&type=section&id=Item%204%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of March 31, 2024, providing reasonable assurance for financial reporting. The report acknowledges the inherent limitations of any control system and states no material changes in internal control over financial reporting during the period - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of March 31, 2024[119](index=119&type=chunk) - Management acknowledges that any system of controls has inherent limitations and cannot provide absolute assurance against all misstatements[120](index=120&type=chunk) - There have been no material changes in the company's internal control over financial reporting during the quarter ended March 31, 2024[121](index=121&type=chunk) [PART II - OTHER INFORMATION](index=32&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) This section provides additional information including details on equity security sales, other disclosures, and a list of exhibits [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=32&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company's share repurchase program, reauthorized in October 2016, had $10.4 million available for future purchases as of March 31, 2024. No shares were repurchased during the first quarter of 2024 or 2023 - As of March 31, 2024, the company had repurchased a total of **1,569,440 shares** for **$36.9 million** under its share repurchase program[123](index=123&type=chunk) - There was **$10.4 million** available for future share purchases under the program as of March 31, 2024[123](index=123&type=chunk) - No shares were repurchased during the three months ended March 31, 2024, or March 31, 2023[123](index=123&type=chunk) [Item 5. Other Information](index=32&type=section&id=Item%205.%20Other%20Information) No directors or officers of the company adopted, modified, or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the first fiscal quarter of 2024 - No directors or officers adopted, modified, or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the quarter ended March 31, 2024[124](index=124&type=chunk) [Item 6. Exhibits](index=33&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications required by the Sarbanes-Oxley Act and XBRL-related documents - Exhibits include certifications from G. Janelle Frost and Anastasios Omiridis pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002[126](index=126&type=chunk)[127](index=127&type=chunk)[128](index=128&type=chunk) - XBRL Instance Document, Taxonomy Extension Schema Document, and Cover Page Interactive Data File are also included as exhibits[129](index=129&type=chunk)

AMERISAFE, Inc.’s (AMSF) shares have declined 10% since it reported first-quarter 2024 results on Apr 24. Despite an earnings beat, investors may have been worried about weakness in underwriting results inducing a deterioration in the net combined ratio. An elevated operating expense level, resulting from an increase in loss and loss adjustment expenses incurred, underwriting and other operating costs and policyholder dividends, also contributed to the downside.AMSF reported first-quarter adjusted earnings ...

Financial Data and Key Metrics Changes - AMERISAFE reported net income of $16.9 million or $0.88 per diluted share for Q1 2024, compared to $17.3 million or $0.90 per diluted share in Q1 2023, indicating a decrease in net income primarily due to lower earned premium and net investment income [9][10] - The combined ratio for the quarter was 87.3%, and the return on equity (ROE) was 22.8% [6] - Gross written premiums decreased by 2.9% year-over-year to $80.1 million from $82.5 million in Q1 2023 [9][10] - Total underwriting and other expenses increased to $18.7 million, resulting in an expense ratio of 27.3%, up from 24.5% in the prior year [10] Business Line Data and Key Metrics Changes - Premiums for policies written in the quarter were relatively flat compared to Q1 2023, with a strong retention rate of 94.9% [6] - New business submissions and bonds increased year-over-year, reflecting higher agent engagement [7] - The accident year loss ratio remained consistent at 71%, with $8.6 million of favorable development on prior accident years attributed to proactive claims handling [8] Market Data and Key Metrics Changes - Workers' compensation rates across the industry continued to decline in Q1 2024, influenced by favorable frequency trends and modest increases in severity [6] - Payroll growth for the quarter was reported at 7.6%, with wage increases accounting for 6.4% of that growth [15] - The National Council on Compensation Insurance (NCCI) indicated approved loss costs for 2024 are trending in the 7% to 8% range [18] Company Strategy and Industry Competition - AMERISAFE's strategy focuses on evaluating risk through safety services and underwriting, maintaining competitiveness in a declining rate environment [6] - The competitive landscape remains stable, with no significant new capital entering the market, and companies are not aggressively pursuing market share despite rate decreases [20] - The company emphasizes the importance of agent relationships to capture new business opportunities in a competitive market [24][25] Management's Comments on Operating Environment and Future Outlook - Management noted that while wage growth is still positive, it is not as robust as in 2023, and they expect this trend to moderate throughout 2024 [15][30] - Concerns about the sustainability of rate decreases and medical cost inflation were highlighted as ongoing challenges for the industry [20] - The company remains optimistic about its ability to deliver strong returns to shareholders despite challenging market conditions [35] Other Important Information - The investment portfolio's net investment income decreased by 0.9% to $7.4 million, with a tax-equivalent book yield of 3.75% [11][12] - Book value per share increased by 3% to $15.74, and the statutory surplus rose to $270.5 million, up 6.1% from the previous quarter [13] Q&A Session Summary Question: What was the ELCM for the quarter? - The ELCM was reported at $144 [14] Question: Can you provide specific numbers for payroll growth and wage growth? - Payroll growth was 7.6%, with 6.4% attributed to wage increases [15] Question: How is the competitive environment characterized? - The competitive environment remains unchanged, with no new capital entering the space and companies maintaining discipline despite rate decreases [20] Question: Were there any large losses in the quarter? - There were two claims in excess of $1 million, consistent with the previous year [22] Question: Did the company buy back any stock in the quarter? - The company did not engage in stock buybacks during the quarter [22] Question: What contributed to the decrease in investment income despite higher yields? - The decrease was attributed to asset-based decreases due to a special dividend [28]