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 ...

AMERISAFE, Inc. (NASDAQ:AMSF) Q4 2022 Earnings Conference Call February 21, 2023 11:00 AM ET Company Participants Kathryn Shirley - Chief Administrative Officer Janelle Frost - President and CEO Andy Omiridis - Chief Financial Officer Conference Call Participants Mark Hughes - Truist Securities Operator Good day, and welcome to the AMERISAFE 2022 Fourth Quarter Earnings Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Kathryn Shirley. Please go ...

Premium Rates and Business Performance - The average premium rate paid by construction employers for workers' compensation coverage was $4.21 per $100 of payroll in 2022[19]. - The company achieved a policy renewal rate of 93.8% for voluntary business in 2022, slightly down from 94.4% in 2020[22][35]. - As of December 31, 2022, the company had over 8,100 voluntary business policyholders with an average annual policy written premium of $29,620[35]. - Gross premiums written in 2022 totaled $276.1 million, a decrease from $303.1 million in 2020, representing a decline of 8.9%[40]. - The voluntary business segment accounted for 96.4% of total gross premiums written in 2022, with construction being the largest contributor at 44.8%[40]. - Florida represented 11.8% of gross premiums written in 2022, making it the highest state contributor, followed by Georgia at 11.0%[43]. - Direct premiums written for the workers' compensation insurance industry were $52 billion in 2021, making it the sixth-largest property and casualty insurance line in the U.S.[34]. Claims Management and Loss Reserves - The company utilizes intensive claims management practices, with an average of 47 open indemnity claims per field case manager as of December 31, 2022[26]. - The average number of open indemnity claims per field claims manager (FCM) was 47 as of December 31, 2022, significantly lower than the industry average[56]. - As of December 31, 2022, the company's net reserve for loss and loss adjustment expenses was estimated at $583.5 million, including $12.6 million for mandatory pooling arrangements[74]. - The gross case loss and DCC reserves decreased to $559.6 million in 2022 from $605.9 million in 2021, reflecting a reduction in overall claims[77]. - The total incurred losses for the current accident year in 2022 amounted to $192.9 million, while prior accident years incurred losses were $(40.6) million[82]. - The gross unpaid loss, DCC, and AO reserves totaled $696.0 million as of December 31, 2022, down from $745.3 million in 2021[83]. - The company reported 4,104 new claims and closed 4,423 claims during the year ended December 31, 2022[82]. Investment Portfolio and Financial Management - The carrying value of the investment portfolio, including cash and cash equivalents, was $950.5 million, while the fair value was $926.9 million as of December 31, 2022[90]. - The company’s investment policy aims to preserve capital and surplus while maximizing after-tax income and total return[90]. - The majority of fixed maturity securities are classified as "held-to-maturity," with changes in non-credit related unrecognized gains and losses not reflected until realized[93]. - The pre-tax investment yield for the twelve months ended December 31, 2022, was 2.7% per annum[95]. - The investment portfolio had gross unrealized gains of $13.9 million and gross unrealized losses of $43.0 million, resulting in a fair value of $851.3 million[98]. - The average composite rating of the investment portfolio, excluding equity holdings, was "AA-" as of December 31, 2022[102]. Reinsurance and Risk Management - The reinsurance treaty program provides coverage for each loss occurrence up to $100.0 million, with a retention of $2.0 million[108]. - The company has 24 reinsurers participating in the 2023 reinsurance program, with most rated "A" or better by A.M. Best[111]. - Total amounts recoverable from reinsurers as of December 31, 2022, is $126,049,000[113]. - The company has reinsurance protection providing coverage of up to $100 million for losses arising from acts of terrorism, effective through December 31, 2023[117]. - A downgrade in the A.M. Best rating of significant reinsurers could adversely affect the company's financial condition[198]. Employee and Organizational Structure - As of December 31, 2022, the company employed 354 full-time and 12 part-time employees, with an average employee tenure of 10.8 years[127]. - Approximately 63% of the workforce is female, and women represent 57% of the company's leadership[127]. - The company offers competitive compensation and benefits programs to attract and retain talented employees[122]. - The company has established a scholarship endowment for dependents of employees and community members, emphasizing its commitment to education[126]. Regulatory Environment and Market Conditions - The company is subject to extensive state and federal regulations, which may limit its ability to increase profitability through premium rate adjustments[190]. - The workers' compensation insurance industry is cyclical, leading to fluctuations in revenues and net income, which may increase stock price volatility[164]. - Changes in accounting standards could materially impact the company's financial results, particularly regarding revenues, expenses, and loss reserves[182]. - Legal and administrative proceedings could materially adversely affect the company's operations or results, particularly regarding claims related to workers' compensation insurance[195].

AMERISAFE, Inc. (NASDAQ:AMSF) Q3 2022 Earnings Conference Call October 27, 2022 10:30 AM ET Company Participants Kathryn Shirley - Chief Administrative Officer Janelle Frost - President and CEO Andy Omiridis - Chief Financial Officer Conference Call Participants Mark Hughes - Truist Matt Carletti - JMP Operator Good day. And welcome to the AMERISAFE 2022 Third Quarter Earnings Conference Call. Today’s conference is being recorded. At this time, I’d like to turn the conference over to Kathryn Shirley, Chief ...