Financial Data and Key Metrics Changes - In Q3, net income was $388 million or $4.73 per share, compared to $300 million or $3.44 per share a year ago, representing a significant increase [4] - Net operating income for the quarter was $394 million or $4.81 per share, a 38% increase over the $3.49 per share from a year ago [4] - Return on equity through September 30 was 21.9%, with book value per share at $69.52, up 12% from a year ago [4] Business Line Data and Key Metrics Changes - Total premium revenue in Q3 grew 5% year-over-year, with life premium revenue increasing 3% to $844 million and health premium revenue growing 9% to $387 million [6][7] - Life underwriting margin was $482 million, up 24% from a year ago, while health underwriting margin increased 25% to $108 million [6][7] - Administrative expenses were $90 million for the quarter, a 1% increase over the previous year, maintaining a consistent percentage of 7.3% of premium [7] Market Data and Key Metrics Changes - The company serves the lower middle to middle-income market, which is significantly underserved and presents substantial growth potential [5] - The average producing agent count has nearly doubled over the past ten years, indicating strong long-term growth potential [10] Company Strategy and Development Direction - The company aims to surpass 28,000 exclusive agents and achieve $1.4 billion in annual sales by 2030 [11] - New initiatives include a worksite enrollment platform and a recruiting CRM to enhance agent productivity and training [14][56] - The company anticipates continued growth in premium revenue and underwriting margins, with expectations for life premium revenue to grow between 3% to 5% in 2025 [6][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth of agent count and sales, citing a 17% increase in new hires for the quarter [48] - The company expects net operating earnings per diluted share for 2025 to be in the range of $14.4 to $14.6, representing a 17% growth at the midpoint [39] - Management noted that favorable mortality experience and improved underwriting margins are expected to continue into 2026 [96] Other Important Information - The company repurchased approximately 840,000 shares for a total cost of $113 million in Q3, returning approximately $135 million to shareholders [31] - The investment portfolio has a net unrealized loss position of $1.1 billion due to higher current market rates compared to book yields [25] Q&A Session Summary Question: What is driving muted sales growth in life sales? - Management indicated that there is no consumer demand weakening, but rather challenges related to onboarding new agents [46][47] Question: Can you elaborate on the new worksite enrollment platform and recruiting CRM? - The new platform aims to enhance agent productivity by providing tools for needs-based analysis, while the CRM will centralize recruiting data for better management [56] Question: What are the expectations for claims trends and sales in the Health business? - Management noted favorable trends in Medicare Supplement and Group Retiree Health, with expectations for rate increases to improve margins in 2026 [73][74] Question: What is the outlook for excess cash flow generation? - The company expects excess cash flow to be sustainable at $600 million to $700 million, driven by improving mortality trends and investment yields [92][93]

Financial Data and Key Metrics Changes - For Q1 2025, the company 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 [12] - 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 [12] - Gross written premiums increased by 4.6% to $83.8 million compared to $80.1 million in Q1 2024 [12] - Net premiums earned rose by 60 basis points to $68.9 million from $68.4 million in the prior year [13] - The expense ratio increased to 29.9% from 27.3% due to higher expenses related to business investments [13][14] Business Line Data and Key Metrics Changes - Premiums on policies written in the quarter grew by 7.1% compared to the prior year quarter [8] - Policy retention rate was strong at 93.1% in Q1 2025, contributing to policy count growth [9] - The company experienced $5 million from payroll audits and other premium adjustments, down from $6.4 million in the previous year [10] 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 [6] - The company noted that economic conditions affecting payrolls could influence premium levels, with factors such as unemployment and wage inflation being monitored closely [7] Company Strategy and Development Direction - The company is focused on incremental growth within its existing geographic footprint and risk appetite, leveraging relationships with agents and policyholders [6] - The management emphasized the importance of proactive claims handling, which contributed to favorable case development [11] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding economic uncertainties, including tariffs and inflation, but noted that niche industries have historically performed well during mild recessions [7] - The company expects favorable frequency trends to continue, with modest severity trends anticipated [11] Other Important Information - The investment portfolio is of high quality, with an average credit rating of double A minus and a duration of 4.48 years [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 [16] 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 - A slight increase in audit premiums was noted in rebuilding classifications in North Carolina and Georgia, but not significantly in Florida [26] Question: Potential tariff impacts on business - Management speculated that tariffs could impact medical costs, particularly in pharmacy and durable medical equipment, but the overall effect on premiums would depend on whether costs are passed through to customers [30][31] Question: Changes in competitive dynamics - No significant changes in competitive dynamics were reported in the first quarter [35][36] Question: Expense ratio and future expectations - The increase in the expense ratio was attributed to investments for growth, with expectations that costs will moderate throughout the year [37] Question: Trends in state loss costs - The trend of declining rates continues, with average decreases expected to be in the 6% to 8% range [39][40] Question: Medical inflation and physician care costs - Increases in physician care costs were noted, attributed to labor costs rather than tariffs [41][42] Question: Industry redundancy and loss costs - Management anticipated that overall redundancy in the industry should be declining, with concerns about confidence in more current accident years [45][46] Question: Wage inflation trends - Wage inflation indications are slightly above the national average, with a potential increase in employee count [48][49] Question: Large losses in the quarter - Only two large losses were reported, which is below trend [56]

Financial Data and Key Metrics Changes - AMERISAFE reported a net income of $13.2 million or $0.69 per diluted share for Q4 2024, down from $19.2 million or $1 per diluted share in Q4 2023 [13] - For the full year, net income was $55.4 million compared to $62.1 million in 2023, while net operating income decreased to $48.4 million from $55.9 million [14] - Gross premiums written increased by 3.9% in Q4 and 3.1% for the full year, with net premiums earned growing by 1.2% in Q4 and 1.3% for the year [6][14] - The combined ratio was reported at 88.7% with a return on equity (ROE) of 20.2% [8] Business Line Data and Key Metrics Changes - Voluntary premiums on policies written rose by 8.5% in Q4 and 4.6% for the year compared to 2023, with enforced policy count growing by 9.6% [6][7] - The accident year loss ratio remained steady at 71% for the full year, consistent with the prior year [10] Market Data and Key Metrics Changes - The company experienced strong premium retention with a policy retention rate of 94.1% on a policy basis and 88% on a premium basis for the quarter [37] - The investment portfolio had a net investment income decrease of 14.4% to $6.9 million for Q4 and 6.8% to $29.2 million for the full year [17] Company Strategy and Development Direction - AMERISAFE is focused on top-line growth while maintaining consistent underwriting margins, emphasizing profitable growth in a competitive landscape [6][11] - The company aims to improve agent relationships and enhance its sales-driven culture to capitalize on profitable opportunities [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining profitable growth despite industry-wide challenges, including rate reductions [7][11] - The company anticipates favorable development from prior accident years and aims to continue identifying profitable high-risk opportunities [10][11] Other Important Information - The Board of Directors approved a 5.4% increase in the regular dividend to $0.39 per share [11] - The investment portfolio is high quality with an average AA- credit rating and a duration of 4.4 years [19] Q&A Session Summary Question: Can you provide context on the policy count growth of 9.6%? - Management clarified that the 9.6% growth was for the entire year, with a 2.6% growth in the fourth quarter [24][28] Question: How has the average size per policy trended? - The average policy size for 2024 was slightly lower than in 2023, with a noted slowdown in average wages in Q4 [34] Question: What impact did renewal rates have on the top line? - Renewal rates were strong, with a policy retention rate of 94.1% and premium retention at 88% [37] Question: How are the claims from 2021 and 2022 shaping up? - Management indicated that 2021 and 2022 are expected to be good accident years, with favorable development from these years [39] Question: What is the outlook for the construction industry? - Management believes the construction industry remains strong, with continued payroll growth and opportunities for business [74][79] Question: Any updates on large claims for the year? - The company ended the year with 18 claims over a million dollars, which is consistent with the five-year average [81] Question: How is medical inflation affecting costs? - There have been no significant developments regarding medical inflation, but home health costs are being monitored closely [86] Question: What is the outlook for audit premiums? - Management expects audit premiums to remain positive in 2025, despite potential deceleration in year-over-year comparisons [100][102] Question: Have competitors become more aggressive in the workers' comp market? - The market remains competitive, but AMERISAFE is prepared for competitors entering the high hazard space [104]

Financial Data and Key Metrics Changes - AMERISAFE reported net income of $13.2 million or $0.69 per diluted share for Q4 2024, down from $19.2 million or $1 per diluted share in Q4 2023 [13] - For the full year, net income was $55.4 million compared to $62.1 million in 2023, while net operating income decreased to $48.4 million from $55.9 million [14] - The combined ratio improved to 88.7% with a return on equity (ROE) of 20.2% [8][11] Business Line Data and Key Metrics Changes - Gross premiums written increased by 3.9% in Q4 and 3.1% for the full year, with voluntary premiums rising by 8.5% in Q4 and 4.6% for the year [6] - The enforced policy count grew by 9.6% for the year, indicating strong premium retention and new business production [6][7] Market Data and Key Metrics Changes - The accident year loss ratio remained steady at 71%, consistent with the prior year, with favorable development from prior accident years amounting to $9.7 million in Q4 and $34.9 million for the full year [10] - The investment portfolio's net investment income decreased by 14.4% to $6.9 million for Q4 and by 6.8% to $29.2 million for the full year [17] Company Strategy and Development Direction - The company is focused on top-line growth while maintaining consistent underwriting margins, emphasizing the importance of agent relationships and a sales-driven culture [6][8] - AMERISAFE aims to identify and ensure profitable high-risk, high-hazard risks to offset broader market challenges [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a competitive landscape and maintain strong policy retention [11][79] - The outlook for the construction industry remains positive, with expectations of continued payroll growth and opportunities for business [74][79] Other Important Information - The Board of Directors approved a 5.4% increase in the regular dividend to $0.39 per share [11] - The company reported a book value per share of $13.51 after paying a special dividend, reflecting an 11.6% decrease from year-end 2023 [21] Q&A Session Summary Question: Can you provide context for the 9.6% policy count growth? - Management clarified that the 9.6% growth was for the entire year, with a 2.6% growth in the fourth quarter [24][28] Question: How has the average policy size trended? - The average policy size for 2024 was slightly lower than in 2023, with a noted decrease in average wages in Q4 [34] Question: What impact did renewal rates have on the top line? - Renewal rates were strong, with a policy retention rate of 94.1% on a policy basis and 88% on a premium basis [37] Question: How are claims from prior years developing? - Favorable development from prior accident years was noted, with significant contributions from 2022 and earlier years [39] Question: What is the outlook for the construction industry? - Management believes the construction industry remains strong, with payroll growth and opportunities for business despite potential economic challenges [74][79] Question: How many large claims were there in 2024? - The company reported 18 claims over a million dollars, which is consistent with the five-year average [81] Question: Any updates on medical inflation and reimbursement rates? - No significant changes were noted, but home health costs remain a focus due to their impact on larger claims [86] Question: What is the outlook for audit premiums? - Management expects audit premiums to remain positive in 2025, despite potential deceleration in year-over-year comparisons [102] Question: Have competitors become more aggressive in the workers' comp market? - The market remains competitive, but AMERISAFE is prepared to handle competitors entering the high hazard space [104]