Globe Life (GL) Q1 2025 Earnings Call May 01, 2025 12:00 PM ET Company Participants Stephen Mota - Senior Director - IRFrank Svoboda - Co-Chairman & Co-CEOJ. Matthew Darden - Co-Chairman and Co-CEOThomas Kalmbach - Executive VP & CFOJack Matten - Vice President Equity ResearchElyse Greenspan - Managing DirectorAndrew Kligerman - Managing DirectorWilma Burdis - DirectorThomas Gallagher - Senior Managing DirectorRyan Krueger - Managing Director Conference Call Participants Jimmy Bhullar - Equity Research Anal ...

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]

AMERISAFE, Inc. (NASDAQ:AMSF) Q4 2024 Earnings Conference Call February 27, 2025 10:30 AM ET Company Participants Kathryn Shirley - Chief Administrative Officer Janelle Frost - President & Chief Executive Officer Andy Omiridis - Executive Vice President & Chief Financial Officer Conference Call Participants Mark Hughes - Truist Matt Carletti - Citizens JMP Bob Farnam - Janney Operator Good day, and welcome to the AMERISAFE fourth quarter 2024 earnings call. Today's conference is being recorded. At this time ...