Core Points - AMERISAFE, Inc. has increased its quarterly dividend by 8.8%, raising it from $0.34 to $0.37 per share [1] - The new dividend will be payable on March 22, 2024, to shareholders of record as of March 8, 2024 [1] - Since initiating dividend payments in 2013, the company has declared a total of $43.26 in dividends per share, which includes $10.01 in regular dividends and $33.25 in special dividends [1] Company Overview - AMERISAFE, Inc. specializes in providing workers' compensation insurance, primarily targeting small to mid-sized employers in high-hazard industries such as construction, trucking, logging, agriculture, and manufacturing [2] - The company actively markets its insurance products across 27 states [2]

[Overall Performance Highlights](index=1&type=section&id=Overall%20Performance%20Highlights) AMERISAFE reported strong full-year 2023 results with net income of $62.1 million and a return on equity of 20.4%, despite a slight decrease in Q4 net income, achieving 8.4% growth in gross premiums written for Q4 and maintaining a disciplined approach to high-hazard workers' compensation Key Financial Metrics (Q4 and FY 2023 vs 2022, in thousands) | Metric | Three Months Ended Dec 2023 | Three Months Ended Dec 2022 | % Change (QoQ) | Twelve Months Ended Dec 2023 | Twelve Months Ended Dec 2022 | % Change (YoY) | | :----------------------------------------- | :-------------------------- | :-------------------------- | :------------- | :--------------------------- | :--------------------------- | :------------- | | Net premiums earned | $65,712 | $66,073 | -0.5% | $267,125 | $271,698 | -1.7% | | Net investment income | $8,077 | $7,642 | 5.7% | $31,339 | $27,223 | 15.1% | | Net income | $19,181 | $20,778 | -7.7% | $62,108 | $55,602 | 11.7% | | Diluted earnings per share | $1.00 | $1.08 | -7.4% | $3.23 | $2.88 | 12.2% | | Operating net income | $14,257 | $16,093 | -11.4% | $55,940 | $59,277 | -5.6% | | Operating earnings per share | $0.74 | $0.84 | -11.9% | $2.91 | $3.07 | -5.2% | | Book value per share | $15.28 | $16.57 | -7.8% | $15.28 | $16.57 | -7.8% | | Net combined ratio | 85.5% | 82.0% | | 85.9% | 83.6% | | | Return on average equity | 24.4% | 24.1% | | 20.4% | 15.5% | | - AMERISAFE reported **$62.1 million of Net Income**, **Return on Equity of 20.4%** and **Net Combined Ratio of 85.9%** in 2023[1](index=1&type=chunk) - **Gross premium written growth of 8.4%** and a **combined ratio of 85.5%** for the fourth quarter, and a **20.4% ROAE** for the full year[2](index=2&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) The CEO emphasized AMERISAFE's commitment to policyholders, agents, and shareholders through risk assessment, safety measures, and meticulous claims handling, which drove solid performance and positions the company for future value creation - AMERISAFE's value proposition rests on service and delivering on commitments to policyholders, agents, and shareholders[2](index=2&type=chunk) - The Company collaborates closely with insured parties to assess risks, bolster safety measures, and meticulously handle claims to achieve optimal results[2](index=2&type=chunk) - The Company's capital strength and approach to the high-hazard workers' compensation market position AMERISAFE for solid performance and ability to create long-term shareholder value[2](index=2&type=chunk) [INSURANCE RESULTS](index=2&type=section&id=INSURANCE%20RESULTS) This section details AMERISAFE's underwriting performance, including premium growth, loss ratios, and operational factors influencing profitability [Underwriting Performance and Ratios](index=2&type=section&id=Underwriting%20Performance%20and%20Ratios) Gross premiums written increased by 8.4% in Q4 2023 and 3.3% for the full year, driven by voluntary premiums and payroll audits, while net premiums earned saw slight declines, and the net combined ratio for the full year was 85.9%, an increase from 83.6% in 2022, primarily due to a higher underwriting expense ratio Insurance Performance Metrics (Q4 and FY 2023 vs 2022, in thousands) | Metric | Three Months Ended Dec 2023 | Three Months Ended Dec 2022 | % Change (QoQ) | Twelve Months Ended Dec 2023 | Twelve Months Ended Dec 2022 | % Change (YoY) | | :------------------------------------------------------------------------------------------------ | :-------------------------- | :-------------------------- | :------------- | :--------------------------- | :--------------------------- | :------------- | | Gross premiums written | $60,324 | $55,647 | 8.4% | $285,355 | $276,110 | 3.3% | | Net premiums earned | $65,712 | $66,073 | -0.5% | $267,125 | $271,698 | -1.7% | | Loss and loss adjustment expenses incurred | $36,455 | $36,524 | -0.2% | $148,263 | $152,316 | -2.7% | | Underwriting and certain other operating costs, commissions, salaries and benefits | $18,988 | $17,421 | 9.0% | $78,313 | $72,032 | 8.7% | | Policyholder dividends | $732 | $182 | 302.2% | $2,957 | $2,699 | 9.6% | | Underwriting profit (pre-tax) | $9,537 | $11,946 | -20.2% | $37,592 | $44,651 | -15.8% | | **Insurance Ratios:** | | | | | | | | Current accident year loss ratio | 71.0% | 71.0% | | 71.0% | 71.0% | | | Prior accident year loss ratio | -15.5% | -15.7% | | -15.5% | -14.9% | | | Net loss ratio | 55.5% | 55.3% | | 55.5% | 56.1% | | | Net underwriting expense ratio | 28.9% | 26.4% | | 29.3% | 26.5% | | | Net dividend ratio | 1.1% | 0.3% | | 1.1% | 1.0% | | | Net combined ratio | 85.5% | 82.0% | | 85.9% | 83.6% | | - **Gross premiums written increased by 8.4%** in the fourth quarter of 2023 and **3.3%** for the full year 2023[4](index=4&type=chunk) - The **net combined ratio for the full year 2023 was 85.9%**, an increase from 83.6% in 2022[4](index=4&type=chunk) [Operational Highlights](index=2&type=section&id=Operational%20Highlights) Voluntary premiums increased by 4.7% in Q4 due to higher policy count, while payroll audits significantly boosted premiums written, and the company reported favorable net loss reserve development for prior accident years, reducing loss and loss adjustment expenses, attributed to proactive claims handling, with the underwriting expense ratio increasing due to lower earned premium and higher insurance-related assessments - **Voluntary premiums on policies written in Q4 2023 were 4.7% higher** than in Q4 2022, primarily due to an increase in policy count[4](index=4&type=chunk) - Payroll audits and related premium adjustments increased premiums written by **$4.8 million** in Q4 2023 and **$24.0 million** for the full year 2023[4](index=4&type=chunk) - Favorable net loss reserve development for prior accident years reduced loss and loss adjustment expenses by **$10.2 million** in Q4 and **$41.4 million** for the full year 2023, attributed to proactive claims handling[4](index=4&type=chunk) - The **underwriting expense ratio increased to 28.9%** in Q4 and **29.3% for FY 2023**, due to slightly lower earned premium and increased insurance related assessments[4](index=4&type=chunk) - The **effective tax rate for the full year 2023 was 19.7%**, up from 17.8% for 2022, due to a decrease in the proportion of tax-exempt interest income relative to taxable interest income and underwriting profit[4](index=4&type=chunk) [INVESTMENT RESULTS](index=3&type=section&id=INVESTMENT%20RESULTS) This section analyzes AMERISAFE's investment income, portfolio performance, and the impact of market conditions on its financial results [Investment Income and Portfolio Performance](index=3&type=section&id=Investment%20Income%20and%20Portfolio%20Performance) Net investment income increased significantly for both Q4 and the full year 2023, driven by higher fixed income reinvestment rates, and the company also reported net unrealized gains on equity securities, reflecting positive equity market returns Investment Performance Metrics (Q4 and FY 2023 vs 2022, in thousands) | Metric | Three Months Ended Dec 2023 | Three Months Ended Dec 2022 | % Change (QoQ) | Twelve Months Ended Dec 2023 | Twelve Months Ended Dec 2022 | % Change (YoY) | | :----------------------------------------- | :-------------------------- | :-------------------------- | :------------- | :--------------------------- | :--------------------------- | :------------- | | Net investment income | $8,077 | $7,642 | 5.7% | $31,339 | $27,223 | 15.1% | | Net realized gains on investments (pre-tax) | $1,113 | $1,038 | 7.2% | $6,579 | $3,440 | 91.3% | | Net unrealized gains (losses) on equity securities (pre-tax) | $5,120 | $4,892 | NM | $1,228 | ($8,092) | NM | | Pre-tax investment yield | 3.5% | 3.1% | | 3.4% | 2.7% | | | Tax-equivalent yield | 3.7% | 3.4% | | 3.7% | 3.4% | | - **Net investment income increased 5.7% to $8.1 million** in Q4 and **15.1% to $31.3 million** for the full year 2023, due to higher fixed income reinvestment rates[6](index=6&type=chunk) - **Net unrealized gains on equity securities were $5.1 million** in Q4 and **$1.2 million** for the full year, reflecting favorable equity market returns[6](index=6&type=chunk) - The carrying value of AMERISAFE's investment portfolio, including cash and cash equivalents, was **$896.5 million** as of December 31, 2023[6](index=6&type=chunk) [CAPITAL MANAGEMENT](index=3&type=section&id=CAPITAL%20MANAGEMENT) This section outlines AMERISAFE's strategies for managing capital, including share repurchases and dividend adjustments, to enhance shareholder value [Shareholder Returns and Capital Allocation](index=3&type=section&id=Shareholder%20Returns%20and%20Capital%20Allocation) AMERISAFE continued its capital management efforts by repurchasing shares and increasing its regular quarterly dividend - The Company repurchased **46,741 shares** at an average cost of **$46.45 per share** for a total of **$2.2 million** in Q4 2023[7](index=7&type=chunk) - The remaining outstanding share repurchase authorization as of December 31, 2023, is **$10.4 million**[7](index=7&type=chunk) - The Board of Directors increased the regular quarterly dividend by **8.8% from $0.34 per share to $0.37 per share**[7](index=7&type=chunk) [SUPPLEMENTAL INFORMATION](index=4&type=section&id=SUPPLEMENTAL%20INFORMATION) This section provides additional financial details, including reconciliations of non-GAAP measures and management's rationale for their use [Non-GAAP Financial Measures Reconciliation](index=4&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation) This section provides a reconciliation of non-GAAP financial measures, such as operating net income and operating earnings per share, to their most directly comparable GAAP measures, which management believes enhances understanding of core operating performance Reconciliation of GAAP to Non-GAAP Financial Measures (Q4 and FY 2023 vs 2022, in thousands except per share amounts) | Metric | Three Months Ended Dec 2023 | Three Months Ended Dec 2022 | Twelve Months Ended Dec 2023 | Twelve Months Ended Dec 2022 | | :----------------------------------------- | :-------------------------- | :-------------------------- | :--------------------------- | :--------------------------- | | Net income | $19,181 | $20,778 | $62,108 | $55,602 | | Less: Net realized gains on investments | $1,113 | $1,038 | $6,579 | $3,440 | | Less: Net unrealized gains (losses) on equity securities | $5,120 | $4,892 | $1,228 | ($8,092) | | Add: Tax effect (1) | ($1,309) | ($1,245) | ($1,639) | $977 | | Operating net income (2) | $14,257 | $16,093 | $55,940 | $59,277 | | Return on average equity (4) | 24.4% | 24.1% | 20.4% | 15.5% | | Operating return on average adjusted equity (2) | 17.4% | 17.8% | 17.7% | 16.5% | | Diluted earnings per share | $1.00 | $1.08 | $3.23 | $2.88 | | Operating earnings per share (2) | $0.74 | $0.84 | $2.91 | $3.07 | - **Operating net income for FY 2023 was $55.94 million**, compared to GAAP net income of **$62.11 million**[8](index=8&type=chunk) - **Operating earnings per share for FY 2023 was $2.91**, compared to diluted EPS of **$3.23**[8](index=8&type=chunk) [Management's Rationale for Non-GAAP Measures](index=5&type=section&id=Management%27s%20Rationale%20for%20Non-GAAP%20Measures) Management uses non-GAAP measures like operating net income and operating earnings per share to provide investors with a clearer view of the company's core operating performance, excluding certain non-recurring or non-operational items - Management believes that investors' understanding of core operating performance is enhanced by AMERISAFE's disclosure of non-GAAP financial measures[9](index=9&type=chunk) - Non-GAAP measures include operating net income, average adjusted shareholders' equity, operating return on average adjusted equity, and operating earnings per share[9](index=9&type=chunk) [CORPORATE INFORMATION](index=5&type=section&id=CORPORATE%20INFORMATION) This section provides essential corporate details, including conference call schedules, company profile, and forward-looking statement disclaimers [Conference Call Information](index=5&type=section&id=Conference%20Call%20Information) AMERISAFE scheduled a conference call for February 22, 2024, to discuss the results and future outlook, with details provided for participation via phone and webcast - AMERISAFE scheduled a conference call for **February 22, 2024, at 10:30 a.m. Eastern Time** to discuss the results for the quarter and comment on future periods[10](index=10&type=chunk) - Investors, analysts, and the general public can listen to the conference call over the Internet by visiting the 'Investor Relations Home' page of the 'Investors' section of the Company's website (http://www.amerisafe.com)[10](index=10&type=chunk) [About AMERISAFE](index=5&type=section&id=About%20AMERISAFE) AMERISAFE is a specialty provider of workers' compensation insurance, focusing on small to mid-sized employers in high-hazard industries across 27 states - AMERISAFE, Inc. is a specialty provider of workers' compensation insurance focused on small to mid-sized employers engaged in hazardous industries[11](index=11&type=chunk) - Key industries served include construction, trucking, logging and lumber, agriculture, and manufacturing[11](index=11&type=chunk) - AMERISAFE actively markets workers' compensation insurance in **27 states**[11](index=11&type=chunk) [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) This section contains a standard disclaimer regarding forward-looking statements, cautioning that actual results may differ materially from projections due to various risks and uncertainties, and the company does not undertake to update these statements - Statements in the press release that are not historical facts are forward-looking statements, based on management's estimates, assumptions, and projections[12](index=12&type=chunk) - Actual results may differ materially due to risks, uncertainties, and other factors, as set forth in the Company's filings with the SEC, including the Annual Report on Form 10-K[12](index=12&type=chunk) - AMERISAFE cautions not to place undue reliance on forward-looking statements and does not undertake any obligation to publicly update or revise them[12](index=12&type=chunk) [CONSOLIDATED FINANCIAL STATEMENTS](index=6&type=section&id=CONSOLIDATED%20FINANCIAL%20STATEMENTS) This section presents AMERISAFE's official financial statements, including detailed income statements and balance sheets for the reported periods [Consolidated Statements of Income](index=6&type=section&id=Consolidated%20Statements%20of%20Income) The Consolidated Statements of Income provide a detailed breakdown of revenues (premiums, investment income) and expenses (loss & LAE, underwriting costs, policyholder dividends) leading to net income and earnings per share for Q4 and the full year 2023 and 2022 Consolidated Statements of Income (Q4 and FY 2023 vs 2022, in thousands except per share amounts) | Metric | Three Months Ended Dec 2023 | Three Months Ended Dec 2022 | Twelve Months Ended Dec 2023 | Twelve Months Ended Dec 2022 | | :---------------------------------------------------------------- | :-------------------------- | :-------------------------- | :--------------------------- | :--------------------------- | | Gross premiums written | $60,324 | $55,647 | $285,355 | $276,110 | | Net premiums earned | $65,712 | $66,073 | $267,125 | $271,698 | | Net investment income | $8,077 | $7,642 | $31,339 | $27,223 | | Total revenues | $80,116 | $79,761 | $306,853 | $294,737 | | Loss and loss adjustment expenses incurred | $36,455 | $36,524 | $148,263 | $152,316 | | Underwriting and other operating costs | $18,988 | $17,421 | $78,313 | $72,032 | | Total expenses | $56,169 | $54,111 | $229,476 | $227,091 | | Income before taxes | $23,947 | $25,650 | $77,377 | $67,646 | | Income tax expense | $4,766 | $4,872 | $15,269 | $12,044 | | Net income | $19,181 | $20,778 | $62,108 | $55,602 | | Basic earnings per share | $1.00 | $1.09 | $3.24 | $2.89 | | Diluted earnings per share | $1.00 | $1.08 | $3.23 | $2.88 | - **Total revenues for FY 2023 increased to $306.85 million** from **$294.74 million** in FY 2022[15](index=15&type=chunk) - **Net income for FY 2023 was $62.11 million**, resulting in **diluted EPS of $3.23**[15](index=15&type=chunk) [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) The Consolidated Balance Sheets present the company's financial position as of December 31, 2023, and 2022, detailing assets (investments, cash, receivables) and liabilities (reserves, unearned premiums) and shareholders' equity Consolidated Balance Sheets (as of Dec 31, 2023 vs 2022, in thousands) | Metric | December 31, 2023 | December 31, 2022 | | :----------------------------------------- | :---------------- | :---------------- | | **Assets:** | | | | Investments | $857,786 | $888,987 | | Cash and cash equivalents | $38,682 | $61,469 | | Total Assets | $1,229,162 | $1,269,279 | | **Liabilities and Shareholders' Equity:** | | | | Reserves for loss and loss adjustment expenses | $673,994 | $696,037 | | Unearned premiums | $116,585 | $114,976 | | Total Liabilities and Shareholders' Equity | $1,229,162 | $1,269,279 | | Shareholders' equity | $292,451 | $317,432 | - **Total assets decreased from $1,269.28 million in 2022 to $1,229.16 million in 2023**[16](index=16&type=chunk) - **Shareholders' equity decreased from $317.43 million in 2022 to $292.45 million in 2023**[16](index=16&type=chunk) - **Reserves for loss and loss adjustment expenses decreased from $696.04 million in 2022 to $673.99 million in 2023**[16](index=16&type=chunk)

AMERISAFE, Inc. (AMSF) is slated to report its fourth-quarter 2023 results on Feb 21, after the closing bell. The company’s earnings missed estimates in the last reported quarter.What Do the Estimates Say?The Zacks Consensus Estimate for fourth-quarter earnings per share (EPS) of 66 cents indicates a 21.4% decrease from the year-ago quarter’s reported earnings of 84 cents. The consensus estimate has witnessed no movement in the past week.The Zacks Consensus Estimate for fourth-quarter revenues is pegged at ...

Group 1 - AMERISAFE, Inc. will release its 2023 fourth quarter and full year financial results on February 21, 2024, after market close [1] - A conference call and live webcast will be held on February 22, 2024, at 10:30 AM Eastern Time [1] - The company specializes in workers' compensation insurance for high-hazard industries, including construction, trucking, logging, agriculture, and manufacturing [2] Group 2 - AMERISAFE actively markets its insurance products in 27 states [2]

Financial Data and Key Metrics Changes - In Q3 2023, AMERISAFE reported net income of $10 million or $0.52 per diluted share, compared to $11.4 million or $0.59 per diluted share in Q3 2022, indicating a decrease in net income [8][9] - The combined ratio for the quarter was 90.6%, and return on average equity was 11.8% [5] - Gross written premiums increased to $70.8 million, a 3.9% year-over-year growth from $68.2 million in Q3 2022 [8][9] - The expense ratio rose to 33.6% from 28.9% in the same quarter last year, primarily due to increased underwriting and other expenses [9] Business Line Data and Key Metrics Changes - The accident year loss ratio remained steady at 71%, with favorable prior year development of $10.2 million, contributing 15.2% loss ratio points [6] - Payroll audit and related premium adjustments increased premiums written by $5.6 million, compared to an increase of $3.4 million in Q3 2022 [8] Market Data and Key Metrics Changes - The overall workers' compensation market remained stable, with declining rates partially offset by wage inflation [5] - Wage inflation was reported at 5.9%, down from previous quarters but still higher than the industry average [17] Company Strategy and Development Direction - AMERISAFE's strategy focuses on maintaining underwriting discipline and high retention rates, achieving a 95% retention rate for renewal policies [5] - The company declared a special dividend of $3.50, reflecting operational excellence and commitment to shareholder value [7] - A new Chief Sales Officer was appointed to enhance relationships with agents and improve business processes [24] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the potential impact of medical inflation on workers' compensation but noted no significant data indicating a widespread effect [13] - The company is closely monitoring the economic environment and claims trends, particularly in the construction sector, which remains resilient [27] - Management expressed confidence in the company's capital position and the potential for future growth, while also considering strategic options such as mergers and acquisitions [30] Other Important Information - The investment portfolio showed a net investment income increase of 16.1% to $8.1 million, driven by higher yields [10] - Book value per share increased by 5.7% from year-end 2022, reaching $17.51 [12] Q&A Session Summary Question: ELCM number - The ELCM number was reported as 150 [12] Question: Impact of medical inflation on workers' compensation - Management believes medical inflation will eventually affect the workers' compensation system but lacks significant data to confirm this [13][14] Question: Top line growth support - Growth in policy count and audit premiums contributed to the top line, despite rate declines [16] Question: Large claims count - The company reported eight claims over $1 million, down from eleven the previous year [18] Question: Reinsurance treaties and profit sharing - Adverse development from older treaties caused a reduction in profit sharing, but it did not impact overall net aggregate development [20] Question: Development of COVID years claims - Claims from the COVID years are developing within expectations, with no significant deviations noted [22] Question: Construction end market outlook - Payrolls in the construction sector remain strong, indicating resilience despite potential downturns in commercial construction [27] Question: Capital position and special dividend - The special dividend reflects excess capital built from profitable underwriting, with no current plans to leverage debt [30] Question: Loss cost trends - NCCI's latest loss cost average is around 7.5%, while AMERISAFE's effective loss costs for the quarter averaged around 5% [32]

[Forward-Looking Statements](index=3&type=section&id=FORWARD-LOOKING%20STATEMENTS) This section contains forward-looking statements, cautioning that actual results may differ due to various identified risk factors - This report contains forward-looking statements regarding the company's financial performance and future events. It cautions readers not to place undue reliance on these statements as actual results could differ materially due to various risk factors[9](index=9&type=chunk) - Key risk factors identified include the cyclical nature of the workers' compensation industry, increased competition, changes in relationships with independent agencies, general economic conditions (including inflation and interest rates), capital market performance, technology breaches, and changes in regulations or accounting standards[9](index=9&type=chunk) [PART I - FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Financial Statements](index=4&type=section&id=Item%201%20Financial%20Statements) This section presents the unaudited consolidated financial statements for the period ended September 30, 2023, including balance sheets, income statements, and cash flows, with detailed accounting notes [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) Consolidated Statements of Income Highlights (in thousands, except per share data) | Metric | Q3 2023 | Q3 2022 | 9 Months 2023 | 9 Months 2022 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | $72,640 | $71,380 | $226,737 | $214,976 | | **Net Premiums Earned** | $66,634 | $67,790 | $201,413 | $205,625 | | **Net Investment Income** | $8,105 | $6,983 | $23,262 | $19,581 | | **Net Income** | $9,961 | $11,361 | $42,927 | $34,824 | | **Diluted EPS** | $0.52 | $0.59 | $2.23 | $1.80 | Consolidated Balance Sheet Highlights (in thousands) | Metric | Sep 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | **Total Investments** | $889,019 | $888,987 | | **Total Assets** | $1,296,636 | $1,269,279 | | **Total Liabilities** | $960,753 | $951,847 | | **Total Shareholders' Equity** | $335,883 | $317,432 | Consolidated Statements of Cash Flows Highlights (in thousands) | Metric | 9 Months 2023 | 9 Months 2022 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $25,875 | $36,066 | | **Net cash provided by (used in) investing activities** | ($7,390) | $14,391 | | **Net cash used in financing activities** | ($20,705) | ($30,227) | [Notes to Unaudited Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) These notes detail accounting policies, investment specifics, loss reserves, fair value measurements, and subsequent events, with no new accounting guidance adopted in 2023 - The Company provides workers' compensation insurance for small to mid-sized employers in hazardous industries like construction, trucking, logging, and manufacturing[35](index=35&type=chunk) Investment Portfolio Summary (Sep 30, 2023, in thousands) | Category | Amortized Cost/Cost | Fair Value | | :--- | :--- | :--- | | **Held-to-Maturity Securities** | $487,166 | $452,019 | | **Available-for-Sale Securities** | $331,798 | $306,040 | | **Equity Securities** | $46,944 | $54,926 | - The company recorded favorable development on prior accident years' loss reserves, reducing loss and loss adjustment expenses by **$31.2 million** in the first nine months of 2023, compared to a **$30.2 million** reduction in the same period of 2022[74](index=74&type=chunk) - Subsequent to the quarter end, on October 24, 2023, the Board of Directors declared a special cash dividend of **$3.50 per share** and a regular quarterly cash dividend of **$0.34 per share**[100](index=100&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q3 and YTD 2023 financial performance, covering premium growth, investment income, expense management, loss reserves, liquidity, and capital resources [Results of Operations](index=23&type=section&id=Results%20of%20Operations) Results show mixed performance with increased gross premiums, decreased net premiums due to higher reinsurance, significant investment income growth, and a higher net combined ratio Key Performance Metrics | Metric | Q3 2023 | Q3 2022 | 9 Months 2023 | 9 Months 2022 | | :--- | :--- | :--- | :--- | :--- | | **Gross Premiums Written** | $70.8M | $68.2M | $225.0M | $220.5M | | **Net Premiums Earned** | $66.6M | $67.8M | $201.4M | $205.6M | | **Net Investment Income** | $8.1M | $7.0M | $23.3M | $19.6M | | **Net Income** | $10.0M | $11.4M | $42.9M | $34.8M | | **Net Combined Ratio** | 90.6% | 85.4% | 86.1% | 84.1% | - The increase in gross premiums written was mainly driven by a **$2.3 million** increase in payroll audits and related premium adjustments in Q3 2023 and a **$7.6 million** increase for the nine-month period[111](index=111&type=chunk)[119](index=119&type=chunk) - Net premiums earned and written were impacted by higher reinsurance costs, as the company purchased higher levels of coverage at generally higher prices in 2023[112](index=112&type=chunk)[120](index=120&type=chunk) - The expense ratio increased to **33.6%** in Q3 2023 from **28.9%** in Q3 2022, primarily due to a decrease in profit sharing reinsurance commission and an increase in commission expense[117](index=117&type=chunk) [Liquidity and Capital Resources](index=25&type=section&id=Liquidity%20and%20Capital%20Resources) Primary funds from premiums and investment income, with operating cash flow decreasing to **$25.9 million** from **$36.1 million** due to lower collections and higher expenses Cash Flow Summary (Nine Months Ended Sep 30, in millions) | Activity | 2023 | 2022 | | :--- | :--- | :--- | | **Operating Cash Flow** | $25.9 | $36.1 | | **Investing Cash Flow** | ($7.4) | $14.4 | | **Financing Cash Flow** | ($20.7) | ($30.2) | - In the first nine months of 2023, the company paid **$19.7 million** in dividends to shareholders, an increase from **$18.0 million** in the same period of 2022[129](index=129&type=chunk) - No shares of common stock were repurchased in the first nine months of 2023, compared to **$12.2 million** in repurchases during the same period in 2022[129](index=129&type=chunk) [Prior Year Development](index=27&type=section&id=Prior%20Year%20Development) Favorable development on prior accident year loss reserves totaled **$31.2 million** in 9M 2023, slightly up from **$30.2 million** in 9M 2022, driven by case reserve development Favorable Prior Accident Year Development (in millions) | Period | 2023 | 2022 | | :--- | :--- | :--- | | **Three Months Ended Sep 30** | $10.2 | $10.4 | | **Nine Months Ended Sep 30** | $31.2 | $30.2 | - The number of open claims decreased to **4,222** at September 30, 2023, from **4,479** at September 30, 2022[135](index=135&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=28&type=section&id=Item%203%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes in market risk profile since year-end 2022, with primary risks being credit, interest rate, and equity price risk - There have been no material changes in the quantitative or qualitative aspects of the company's market risk profile since year-end 2022[139](index=139&type=chunk) - The major components of market risk are credit risk, interest rate risk, and equity price risk[139](index=139&type=chunk) [Controls and Procedures](index=28&type=section&id=Item%204%20Controls%20and%20Procedures) Management, including CEO and CFO, deemed disclosure controls effective as of September 30, 2023, with no material changes to internal controls during the quarter - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[140](index=140&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that materially affected or are likely to materially affect the controls[142](index=142&type=chunk) [PART II - OTHER INFORMATION](index=29&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Unregistered Sales of Equity Securities and Use of Proceeds](index=29&type=section&id=Item%202%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No shares were repurchased in 9M 2023, with **$12.6 million** remaining available for future purchases under the share repurchase program - No shares were repurchased during the nine months ended September 30, 2023[144](index=144&type=chunk) - As of September 30, 2023, the company had **$12.6 million** available for future purchases under its share repurchase program[144](index=144&type=chunk) [Other Information](index=29&type=section&id=Item%205%20Other%20Information) No directors or officers adopted, modified, or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q3 2023 - No directors or officers adopted, modified, or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during Q3 2023[145](index=145&type=chunk) [Exhibits](index=30&type=section&id=Item%206%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO/CFO certifications and Inline XBRL documents - The report includes certifications from CEO G. Janelle Frost and CFO Anastasios Omiridis pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act[147](index=147&type=chunk)[148](index=148&type=chunk)[149](index=149&type=chunk) - Interactive data files (XBRL) are included as exhibits to the filing[150](index=150&type=chunk)[151](index=151&type=chunk)[152](index=152&type=chunk)[153](index=153&type=chunk)

Financial Data and Key Metrics Changes - AMERISAFE reported net income of $15.6 million or $0.81 per diluted share for Q2 2023, an increase from $6.1 million or $0.32 per diluted share in Q2 2022 [9] - Operating net income for Q2 2023 was $14 million or $0.73 per diluted share, compared to $13.1 million or $0.68 per diluted share in the same quarter last year [9] - The company reported a combined ratio of 85.4% and a return on average equity of 18.6% [5][9] - Gross written premiums decreased by 3.7% year-over-year to $71.7 million from $74.5 million [9] Business Line Data and Key Metrics Changes - Voluntary premium decreased by 2.3% due to continued rate pressure [10] - Payroll audit and related premium adjustments decreased by $800,000 compared to Q2 2022, while stand-alone payroll audits increased by $200,000 [10] - The current accident year loss ratio remained steady at 71%, with favorable prior period development of $10.9 million [6][9] Market Data and Key Metrics Changes - The overall workers' compensation market remains profitable, with an industry-wide combined ratio below 100% [5] - AMERISAFE's policy retention rate was 93% for Q2, consistent with recent experience despite competitive pressures [6] Company Strategy and Development Direction - AMERISAFE aims to maintain strong margins in the high-hazard workers' compensation market and is focused on retaining policyholders while attracting new business [5][7] - The company is exploring partnerships with other carriers and has appointed a new Chief Sales Officer to enhance agent relationships and broaden the business pipeline [29][35] Management's Comments on Operating Environment and Future Outlook - Management noted that competitive pressures and rate declines are expected to continue, but strong payrolls may offset these challenges [6] - The company anticipates medical inflation to increase, which will be reflected in case reserves [7][32] - Management expressed confidence in the company's ability to deliver robust returns to shareholders despite market challenges [7] Other Important Information - AMERISAFE's investment portfolio reported a 19.1% increase in net investment income to $7.7 million [11] - The company declared a quarterly cash dividend of $0.34 per share for Q3 2023 [14] - Book value per share increased by 7.2% to $17.76 from $16.57 at the end of 2022 [14] Q&A Session Summary Question: Can you elaborate on wage inflation trends? - Management indicated that wage growth has moderated to around 5% in Q2 2023, down from double-digit growth in previous quarters, with construction being the largest segment showing healthy numbers [17][18] Question: What is the outlook for capital management? - Management stated that the Board actively discusses capital management and plans to continue returning capital to shareholders while seeking organic growth opportunities [21] Question: What is the audit premium for the quarter? - The audit premium for Q2 was reported at $4.8 million [22] Question: What should be expected for ceded premiums going forward? - Management confirmed that the current run rate for ceded premiums is expected to remain around $5 million to $5.5 million [24] Question: What is a good baseline for expenses going forward? - Management indicated that $20 million to $20.5 million is a good baseline for future expenses [27] Question: Any updates on partnerships or new business initiatives? - Management is still exploring partnerships and is optimistic about the new Chief Sales Officer's potential to enhance business development [29] Question: What is the anticipated tax rate going forward? - Management suggested that a tax rate of 19.5% is a reasonable expectation [34]

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, 2023 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 ...

AMERISAFE, Inc. (NASDAQ:AMSF) Q1 2023 Earnings Conference Call April 27, 2023 11:00 AM ET Company Participants Kathryn Shirley - Chief Administrative Officer Janelle Frost - President & CEO Andy Omiridis - CFO Conference Call Participants Matt Carletti - JMP Mark Hughes - Truist Securities Bob Farnam - Janney Operator Good day, and welcome to the AMERISAFE 2023 First Quarter Earnings Call. Today's conference is being recorded. At this time, I'd like to turn the presentation over to Ms. Kathryn Shirley. Plea ...

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 MARCH 31, 2023 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 Regi ...