Financial Data and Key Metrics Changes - For Q1 2025, Amerisafe reported net income of $8.9 million or $0.47 per diluted share, down from $16.9 million or $0.88 per diluted share in Q1 2024 [11] - Operating net income decreased to $11.4 million or $0.60 per diluted share from $13.3 million or $0.69 per diluted share year-over-year [11] - Gross written premiums increased by 4.6% to $83.8 million compared to $80.1 million in Q1 2024 [11] - Net premiums earned rose by 60 basis points to $68.9 million from $68.4 million in the prior year [12] - The expense ratio increased to 29.9% from 27.3% due to higher expenses related to business investments [12][13] Business Line Data and Key Metrics Changes - Premiums on policies written in the quarter grew by 7.1% over the prior year quarter, with a retention rate of 93.1% [7][8] - The company experienced $5 million from payroll audits and other premium adjustments, down from $6.4 million in the previous year [8] Market Data and Key Metrics Changes - The competitive environment remains strong, driven by declining workers' compensation rates and challenges in other property and casualty lines [5][6] - The company noted a favorable frequency trend in claims, with a current accident year loss ratio of 71, consistent with the prior year [8] Company Strategy and Development Direction - Amerisafe continues to focus on incremental growth within its existing geographic footprint and risk appetite, leveraging relationships with agents and policyholders [5] - The company is investing in business growth despite a competitive market, aiming to maintain profitability [12] Management Comments on Operating Environment and Future Outlook - Management expressed caution regarding economic uncertainties such as tariffs, inflation, and interest rates, which could impact payrolls and premiums [6] - The company anticipates favorable frequency trends to continue, with modest severity trends expected [9] Other Important Information - The investment portfolio is of high quality, with a tax-equivalent book yield of 3.85% and a strong capital position [14][15] - Book value per share was reported at $13.69, with a statutory surplus of $243.6 million, up 3.6% from the previous year [15] Q&A Session Summary Question: Audit premium impact on previous quarters - Management provided audit premium figures for the previous year: Q1 was $6.4 million, Q2 was $7.3 million, Q3 was $4 million, and Q4 was $2.5 million [22][24] Question: Impact of recent hurricanes on work activity - There was a slight increase in audit premiums for rebuilding classifications in North Carolina and Georgia, but not as much in Florida [26] Question: Potential tariff impacts on business - Tariffs could impact medical costs, particularly in pharmacy and durable medical equipment, which account for about 15% of medical costs in workers' compensation [29] Question: Changes in competitive dynamics - There has been no significant change in the competitive landscape during the first quarter [35] Question: Expense ratio and future expectations - The increase in the expense ratio was approximately $1.9 million, and costs are expected to moderate as the year progresses [37] Question: State loss cost updates - The trend remains a decline in rates, with average decreases between 6% to 8% across states [39] Question: Medical inflation trends - There are increases in physician care costs, likely due to labor costs rather than tariffs [41] Question: Large losses in the quarter - The company reported two large losses in the quarter, which is below trend [56]

Financial Data and Key Metrics Changes - The company reported first quarter adjusted EBITDA of $57.5 million, up 12% year over year [5][10] - Adjusted net income for the quarter was $19.3 million, or $0.84 per diluted share, representing a 32% increase compared to $14.7 million, or $0.64 per diluted share, in the prior year [7][9] - Cash from operations was $6.9 million, while free cash flow was negative at $25.8 million, down $37.2 million year over year [10][16] Business Line Data and Key Metrics Changes - Surfactants and specialty products delivered double-digit adjusted EBITDA growth, while polymers adjusted EBITDA decreased slightly year over year [6][12] - Surfactant net sales were $430.3 million for the quarter, a 10% increase year over year, with sales volume growing 3% [12][13] - Polymer net sales were flat at $146.1 million, with a 7% increase in sales volume but a 7% decrease in selling prices [14][15] - Specialty product net sales increased by 11% to $16.8 million, primarily due to higher selling prices [15] Market Data and Key Metrics Changes - The company experienced double-digit volume growth in agricultural and oilfield end markets, while North American and European rigid polyol volume grew in low single digits [6][19] - Foreign currency translation negatively impacted net sales by 5% [13] Company Strategy and Development Direction - The company remains focused on customer acquisition, particularly in Tier two and Tier three markets, with over 400 new customers added in the first quarter [18][19] - The company is committed to developing next-generation rigid polyol technologies to enhance energy efficiency and cost performance [20] - The new Pasadena, Texas site is now operational, with expectations for full contribution in the second half of 2025 [21][23] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about delivering adjusted EBITDA and adjusted net income growth, as well as positive free cash flow in 2025 despite market uncertainties [22][23] - The company noted that the high interest rate environment continues to restrain growth in rigid polyol markets [6][19] Other Important Information - The effective tax rate was 20%, lower than the normal range of 24% to 26%, primarily due to favorable discrete items from a tax audit settlement [10][11] - The company paid $8.7 million in dividends during the first quarter and has increased its dividend for 57 consecutive years [8] Q&A Session Summary Question: Contribution of Pasadena facility - Management confirmed that the Pasadena facility is currently producing six products, with plans to produce over 60 products, and full contribution expected in 2026 [27][28] Question: Earnings contribution from Pasadena - Management indicated that Q2 is expected to show improvement but will still be negative, with positive contributions anticipated in Q3 and Q4 [32] Question: Decline in commodity consumer products - Management clarified that the decline is not due to intentional shifts but rather sluggish demand from consumer product customers [34][35] Question: Polymer business inventory costs - Management stated that high inventory costs were a drag on margins but are expected to improve in Q2 as those costs are cleared [36][37] Question: Down channel inventory levels - Management reported no significant overstocking in Q1 and noted strong volume growth continuing into April [43][44] Question: Customer mix and growth - Management confirmed that growth is coming from both Tier two and Tier three customers, as well as end market diversification [47][48] Question: Tariff impacts - Management indicated that while tariffs are a concern, most products are sourced and sold within regions, mitigating direct impacts [65][66] Question: Collaboration with customers - Management affirmed that collaborative work with customers continues without significant changes due to tariff announcements [68][70]

Group 1 - Skyward Specialty Insurance Group, Inc. will hold its first quarter 2025 earnings call on May 2 at 9:30 a.m. EDT, following a time change from the previously announced schedule [1] - The earnings results will be released after market close on May 1 and will be accessible on the company's investor website [2] - Investors can participate in the earnings call via a live audio webcast or conference call, with a replay available two hours after the call [3] Group 2 - Skyward Specialty is a growing specialty insurance company offering commercial property and casualty products through nine underwriting divisions [4] - The company's subsidiary insurance companies are rated A (Excellent) with a stable outlook by A.M. Best Company [5]

Financial Data and Key Metrics Changes - Net income for Q1 2025 was $25 million or $0.81 per diluted share, while core net income was $27.1 million or $0.88 per diluted share, reflecting the sustainability of earnings [17] - Core earnings per share was $0.88 supported by net interest income of $70.6 million, which was within the guidance range [10][17] - Total deposits increased by $446 million to $7.6 billion, with a significant portion attributed to political deposits growing by 11% [21][11] Business Line Data and Key Metrics Changes - Net loans receivable increased by $7 million or 0.2% to $4.6 billion, driven by increases in multifamily and commercial loans, while consumer solar and residential loans decreased [24][25] - Core non-interest income decreased to $9.1 million from $9.5 million in the previous quarter, primarily due to lower commercial banking fees [27] - Core non-interest expense increased to $41.5 million, mainly due to higher professional fees related to digital transformation [28] Market Data and Key Metrics Changes - Political deposits increased by $103 million to $1.1 billion, following historical patterns post-election [11] - The not-for-profit deposit segment grew significantly, increasing from $285 million at year-end 2020 to $1.37 billion at the end of Q1 2025, reflecting a 29% increase over the last twelve months [24] Company Strategy and Development Direction - The company plans to maintain a conservative approach while focusing on capital strength and liquidity to navigate uncertain environments [12][6] - A new $40 million share repurchase program was authorized, indicating a commitment to returning capital to shareholders [20] - The company is expanding its commercial PACE franchise to diversify volume and increase originations [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the bank's ability to adapt to changing market conditions and emphasized the importance of a strong balance sheet [6][7] - The outlook for C&I loan growth is expected to remain muted in Q2, with reacceleration anticipated in the latter half of the year [13] - Management remains optimistic about net interest margin expansion and revenue growth for the remainder of the year [32] Other Important Information - The allowance for credit losses on loans decreased to $57.7 million, with a ratio of 1.23% of total loans [30] - Non-performing assets totaled $33.9 million or 0.41% of total assets, reflecting an increase primarily due to commercial and industrial non-accrual loans [29] Q&A Session Summary Question: Any color on the $8.3 million loan that went on non-accrual this quarter? - Management indicated that the loan had been classified for some time and there is sufficient collateral value, allowing them to maintain no increase in reserve coverage [34][35] Question: Are you seeing funding dry up for clean energy projects? - Management confirmed that there is no observed decline in funding for clean energy projects and demand for electricity continues to rise [37][39] Question: What is the outlook for the political deposit franchise? - Management expressed optimism about the political deposit growth and noted strong performance across all sectors [52][53] Question: Where are you willing to take the capital ratios down to? - Management stated that they are comfortable maintaining a Tier 1 leverage ratio above 9% while being aggressive with the buyback program [44][47] Question: Have you seen any tangible impact from the new administration on lending or deposits? - Management reported no significant impact on lending or deposits, maintaining a strong deposit base across all segments [66][67]

Financial Data and Key Metrics Changes - Getty Realty reported an annualized base rent (ABR) of approximately $199 million, reflecting an increase of 11.2% compared to $179 million in the prior year [7][18] - The company generated adjusted funds from operations (AFFO) per share of $0.59, marking a 3.5% increase from the previous year's quarterly result [17][23] - General and administrative expenses (G&A) as a percentage of total revenue improved by 40 basis points to 13.2% [18] Business Line Data and Key Metrics Changes - The convenience and automotive retail sectors showed resilience, with strong performance from tenants despite macroeconomic challenges [7][8] - Rent coverage for convenience store assets remained consistent, while car wash sector rent coverage increased [8] - The company invested $10.9 million across six properties with an initial cash yield of 7.8% during the quarter [13] Market Data and Key Metrics Changes - The portfolio included 1,115 net leased properties with an occupancy rate of 99.7% and a weighted average lease term of ten years [12] - Approximately 61% of ABR came from the top 50 metropolitan statistical areas (MSAs) [12] Company Strategy and Development Direction - Getty Realty remains committed to a disciplined acquisition strategy, focusing on high-density metro areas and creditworthy operators under long-term leases [11] - The company aims to increase its investment pipeline, which currently exceeds $110 million, with a focus on development funding transactions [10][15] - The strategic focus includes diversifying into new sectors such as quick-service restaurants (QSR) while maintaining a small percentage of the overall portfolio [75] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the macroeconomic uncertainty affecting transaction and capital markets but expressed confidence in sourcing opportunities that align with their investment thesis [10][23] - The company reaffirmed its AFFO per share guidance for 2025, anticipating a range of $2.38 to $2.41 [23] Other Important Information - The company has no debt maturities until June 2028, with a weighted average debt maturity of 5.4 years and a weighted average cost of debt at 4.5% [21][22] - The company has received all rent due through April 2025 from Zips, which filed for bankruptcy in February [22] Q&A Session Summary Question: Can you describe the cadence of capital deployment in the next nine to twelve months for the $110 million investment pipeline? - Management indicated that about two-thirds of the pipeline consists of development funding, typically taking nine to twelve months from signing to completion [25][26] Question: Given the macro uncertainty, what is the current development demand? - Management noted ongoing discussions with operators looking to accelerate new store growth programs in 2025, but clarity is still needed as the year progresses [27] Question: How should we think about the timing of ZiPS rent income hitting the income statement? - Management expects the resolution of ZiPS to be completed by the end of the second quarter, with continuity of rent for sites remaining with ZiPS [36][37] Question: What impact have tariffs had on the existing tenant base? - Management stated that the impact of tariffs is still uncertain, but discussions with tenants are ongoing to assess potential effects [41] Question: What is the credit profile of new car wash tenants? - Management confirmed that the new tenants are established operators familiar with the markets of the properties [49][50] Question: How does the outcome of the ZiPS situation compare to underwriting new investments? - Management expressed confidence in their underwriting process, stating that the recovery from the ZiPS event does not alter their approach to future investments [80][82]

Financial Data and Key Metrics Changes - The company reported an adjusted net operating loss of $40.8 million or $0.99 per share for Q4 2024, and a net loss from continuing operations of $92.7 million or $2.25 per share, largely attributed to retroactive reinsurance structures [22][23] - The investment portfolio generated $93.1 million of net investment income from continuing operations, a 10.8% increase over 2023 [8] - The accident year combined ratio for the E&S segment was 91.8%, while excluding legacy structure purchases, it would have been 89.3% [11][25] Business Line Data and Key Metrics Changes - The E&S business grew by 2% in Q4, but if excluding the excess casualty unit, growth would have been 11.2% across the remaining divisions [14] - The Specialty Admitted segment generated a combined ratio of 95.3% for Q4 and 92.2% for the full year, with underwriting profit growth of 68.6% over the prior year [18][19] Market Data and Key Metrics Changes - Submission growth reached 9% for Q4 2024, with record highs in new and renewal submissions over the last four years [9][40] - The company experienced a positive renewal rate change of 9% in 2024, reflecting strong market momentum [12] Company Strategy and Development Direction - The company aims to focus on its insurance business following the divestiture of its Bermuda reinsurance operation and has executed several transactions to validate its balance sheet [7] - Plans for redomestication and improvements in technology and processes are expected to enhance organizational efficiency [9] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about profitability in 2024 while monitoring loss emergence as the accident year seasons [17] - The company anticipates a mid-teen operating return on tangible common equity for 2025, underpinned by a similar accident year loss ratio to 2024 [28] Other Important Information - The company completed a strategic review and reaffirmed its rating, which is expected to provide additional tailwinds into 2025 [42] - The company did not experience any net losses due to California wildfires and maintains a conservative property stance [34] Q&A Session Summary Question: What is the trend looking like for submission growth in 2025? - Management noted an increase in submissions and healthy growth across several divisions, with a reported 9% submission growth for Q4 2024 [40][42] Question: Can you provide insights on the loss picks and trends? - Management indicated a slight increase in loss trends, particularly in excess casualty and general casualty, but overall loss trends remain in the low single-digit range for 2025 [44]

Financial Data and Key Metrics Changes - The company reported an AFFO per share of $1.16 for 2024, marking an increase of 8.4% year over year and exceeding the Street consensus by over 9% at the start of 2024 [7] - Funds from operations (FFO) for Q4 was $0.30 per diluted share, while adjusted funds from operations (AFFO) was $0.35 per diluted share [22] - The board approved a quarterly dividend of $0.2425 per share, a 1% increase from Q4 2023, marking the seventh consecutive year of dividend increases [23] - The net debt to annualized adjusted EBITDA ratio was 5.2 times at the end of the year, reflecting a deleveraging from the end of 2023 [25] Business Line Data and Key Metrics Changes - In 2024, the company acquired 197 properties for $91 million at a weighted average cap rate of 7.6% [11] - The company anticipates acquisition volume in 2025 to be between $80 million and $90 million, targeting a weighted average cap rate at or above 7.5% [11] - The total net lump sum catch-up payment received during Q4 was $1.5 million, with an additional $400,000 received in 2025 [18] Market Data and Key Metrics Changes - The company reported a current occupancy rate of 99.8% and an average lease retention rate of 99% with the Postal Service over the past ten years [13] - The Postal Service's lease expenses represent only 1.5% of its total operating budget, indicating a stable relationship with the company [13][34] Company Strategy and Development Direction - The company aims to drive internal growth while pursuing an acquisition-driven external growth plan [7] - The management emphasized the importance of maintaining strong relationships with postal property owners to expand the portfolio [16] - The company is focused on executing leases for 2025 expirations and negotiating rents for 2026 expirations [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the Postal Service's continued tenancy and the stability of their lease agreements despite changes in leadership [33] - The Postal Service's recent cost-cutting measures are not expected to disrupt the company's operations or the facilities they invest in [39] - The company is optimistic about its acquisition pipeline and internal growth story, projecting AFFO for 2025 to be between $1.20 and $1.22 per share [10][27] Other Important Information - The company completed its first meaningful dispositions as a public company, selling two properties for total gross proceeds of $6.3 million [12] - The company has a $150 million senior unsecured revolving credit facility with $136 million undrawn, maintaining low leverage and minimizing exposure to variable rate debt [24] Q&A Session Summary Question: Impact of new postmaster general on lease agreements - Management indicated that the new postmaster general is not expected to change existing lease documents, as the company has a strong process in place for lease execution [33] Question: Postal Service's cost-cutting measures and facility eliminations - Management believes that the cost-cutting measures will not affect the infrastructure related to the facilities they invest in, as the Postal Service has stated there will be no disruption to their retail network [39] Question: Same-store NOI growth and G&A expenses - Management confirmed that the same-store NOI growth for 2025 is projected to be between 4% and 6%, with G&A expenses expected to increase slightly [46] Question: Catch-up rent payments in Q4 - Management clarified that the catch-up rent payments were part of the top-line revenue, and they are now caught up with the expiration schedule for leases [54]