Amerisafe, Inc. · NASDAQ:AMSF
Amerisafe — Q4 2024 Earnings Presentation
28 slides from Amerisafe's earnings presentation, Feb 27, 2025
Slide 1: AMERISAFE Investor Presentation Fourth Quarter 2024
AMERISAFE INVESTOR PRESENTATION Fourth Quarter 2024 G. Janelle Frost Andy Omiridis Chief Executive Officer Chief Financial Officer THE PREMIER WORKERS’ COMPENSATION SPECIALIST
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS Statements made in this press release that are not historical facts, including statements accompanied by words such as “will,” “believe,” “anticipate,” “expect,” “estimate,” or similar words are forward-looking statements within the meaning of the Private Securities Litiga
Slide 3: Overview
OVERVIEW AMERISAFE has a 39-year operating history as a 2024 Premium Distribution by State specialty provider of workers’ compensation insurance for small to mid-sized employers engaged in high hazard industries. Company Highlights Ticker / Exchange AMSF / Nasdaq Headquarters DeRidder, LA Stock Pric
Slide 4: Pillars of Distinction
PILLARS OF DISTINCTION SMALL TO MID- HIGH HAZARD HIGH HAZARD SIZE EMPLOYER UNDERWRITING COMPREHENSIVE INTENSIVE CLAIMS NICHE FOCUS FOCUS EXPERTISE SAFETY SERVICES MANAGEMENT • Rate more than 3x • Less competition • Industry-specific risk • Field Safety • Field Case Managers national average analysis
Slide 5: High Hazard Niche
HIGH HAZARD NICHE “ The difference between chance and risk is knowledge. The more you know, the less risk you take.” –Millard Morris, Founder 2024 Premiums by Hazard Group 2024 Premiums by Hazard Group 50% High Hazard 85% in Hazard A B Groups E-G 0.0% 1.0% C 7.5% 40% Higher Risk G 18.4% D 85% of pre
Slide 6: Premium Distribution
PREMIUM DISTRIBUTION Historical Premium Distribution of Premium Distribution by Industry Major Industry Groups 12/31/24 +Includes Assigned Risk & Assumed premiums 100% 90% Telecom, 1.8% 80% Other+, 14.6% Maritime, 70% 4.4% 60% 50% Manufacturing, 5.5% Construction, 40% 47.1% 30% Agriculture, 20% 6.0%
Slide 7: Customer Overview: Intensity of Competition by Policy Size
AMERISAFE Intensity of Competition CUSTOMER OVERVIEW Large Large Competitors (major national firms); Competition is Represents 3.4% of AMSF policies; 20.8% of Annual Premium fragmented. premiums > $100,000 Mid-sized Competitors (regional Policy Size and smaller national firms); Annual Premium Repres
Slide 8: Underwriting Expertise
UNDERWRITING EXPERTISE Consistently Profitable Underwriting: 86.0% Average Combined Ratio from 2006 – 2024 120% COMBINED RATIO 100.5% 97.5% 100% 92.4% 90.0% 86.2% 92.4% 87.9% 88.7% 85.5% 84.7% 85.7% 83.6% 85.9% 80.8% 24.3% 82.9% 21.1% 79.8% 20.1% 77.0% 76.6% 76.3% 80% 23.8% 20.3% 22.6% 20.9% 20.8% 2
Slide 9: Contributions to Returns
CONTRIBUTIONS TO RETURNS AMERISAFE’s Return on Surplus (ROS) continues to significantly outperform the A.M. Best rated workers’ compensation peer group, primarily due to favorable underwriting performance 5 Yr ROS Contribution (Stock Companies) 10 Yr ROS Contribution (Stock Companies) 30% 30% 20% 20
Slide 10: History of Reserves
HISTORY OF RESERVES Reserve Review Process Favorable Reserve Development ($ Millions) • Set initial case reserve at $65.0 $63.5 $61.9 most probable outcome. • Work to settle claims as soon $47.8 $51.3 as possible (closed claims $45.6 $40.6 $41.4 don’t develop unfavorably). $34.9 $34.8 • Over $486 mi
Slide 11: Capital Ecosystem
CAPITAL ECOSYSTEM Returned $90.6M of Capital in 2024: $57.3M Special Dividends, $28.2M Regular Dividends, $5.1M Buybacks Strategic Investments Capital efficiency Focus on technology, Target top-quartile ROE acquisitions, and innovation. in sector (15%). Maximizing Long-Term Shareholder Value Risk Ma
Slide 12: Capital Management: Dividends Per Share
CAPITAL MANAGEMENT Dividends Per Share $6.00 $5.00 $4.00 $4.00 $4.00 $3.50 $3.00 $3.00 $3.50 $3.50 $3.50 $3.50 $3.25 $2.00 $3.00 $1.50 $1.00 $1.36 $1.48 $1.56* $1.00 $1.08 $1.16 $1.24 $0.72 $0.80 $0.88 $0.48 $0.60 $0.32 $- 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Regular Spec
Slide 13: Capital Management: Capital Returned to Shareholders Since 2013
CAPITAL MANAGEMENT $929 Million of Capital Returned to Shareholders Since 2013 $120 $112.8 $99.9 $12.4 $100 $95.5 $88.8 $90.6 $84.5 $87.0 $2.2 $82.6 $5.1 $76.1 $80 $68.6 Millions $60 $77.5 $76.6 $67.2 $67.9 $57.2 $67.5 $67.7 $67.3 $37.1 $62.3 $40 $57.2 $28.1 $20 $5.9 $23.8 $26.1 $28.2 $17.0 $19.3 $2
Slide 14: Investment Portfolio
INVESTMENT PORTFOLIO Historical Portfolio Allocation Portfolio Allocation 100% (as of 12/31/24) U.S. Treasuries & MBS, 1% ABS/CMBS, 90% ABS/CMBS Cash & cash Agencies, 3% 0% equilvalents, 80% 5% MBS 70% Equities, 7% U.S. Treasuries & 60% Agencies Cash & cash 50% equilvalents Corporates, 22% Municipal
Slide 15: Return on Equity Drivers
40% RETURN ON EQUITY DRIVERS 35.6% 35% 33.5% 28.9% 30% 26.8% 14.4% 12.0% 25.0% 24.3% 25% Average Pre-tax Operating 23.1% 21.3% 21.9% 22.1% ROE 21.1% 7.8% 20.2% 21.3% 15.3% 6.2% 18.9% 20% 6.2% 7.0% 16.9% 7.3% 16.3% 9.5% 15.1% 9.9% 13.2% 7.6% 10.3% 15% 6.3% 6.7% 6.3% 21.5% 9.4% 6.8% 10% 21.2% 7.3% 8.3
Slide 16: Historical Financial Performance
$70 HISTORICAL FINANCIAL PERFORMANCE $63.50 $60 $50 $40 $30 $20 $10 $7.42 $- 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Book Value Per Share (BVPS) + Capital Returned Per Share 16 * CAGR for 2005 – December 31, 2024
Slide 17: Current Workers' Compensation Market Conditions
CURRENT WORKERS’ COMPENSATION MARKET CONDITIONS 17
Slide 18: WC Industry Combined Ratio
WC INDUSTRY COMBINED RATIO 130% $400.0 $372.2 $373.1 $393.8 $350.3 $351.7 $386.5 $333.5 120% $332.5 $327.8 $328.8 $350.0 $307.8 $294.1 110% $272.1 $276.1 $300.0 $303.1 $256.5 Combined Ratio GPW in Millions $278.3 $285.4 100% $228.4 $250.0 90% $200.0 80% $150.0 70% $100.0 103.2% 104.4% 111.2% 118.1%
Slide 19: Workers' Comp Rate Changes
WORKERS’ COMP RATE CHANGES 12% 9.8% 10% 8.3% 8% 5.8% 6% 4.9% 4.1% 4% 3.1% 2.3% 2% 1.5% 1.0% 0.7% 0.7% 0.4% 0.3% 0.3% 0% -0.4% -0.3% -0.5% -0.7% -0.5% -1.2% -1.2% -1.1% -0.7% -2% -1.9% -2.0% -1.8% -1.4% -2.5% -1.9% -2.0% -2.6% -2.5% -1.9% -2.0% -1.8% -1.8% -2.6% -2.3% -2.6%-2.9% -2.7% -2.9% -3.3% -2.
Slide 20: WC Insurance Rate Changes
WC INSURANCE RATE CHANGES Percentage of Survey Respondents 20 Source: The Council of Insurance Agents & Brokers
Slide 21: Residual Market Activity
RESIDUAL MARKET ACTIVITY ALL POOLS – NET WRITTEN PREMIUM* ALL POLICY YEARS COMBINED 900 Workers’ Comp Hard Market† 841 800 752 739 739 DOLLARS (in millions) 709 669 700 609 600 547 550 527 508 485 500 451 438 397 383 400 343 300 200 100 0 *Premium volume shown is the quarterly amount net of uncollec
Slide 22: Appendix
APPENDIX AMERISAFE
Slide 23: Sustainability
SUSTAINABILITY • Responsibility to Shareholders and other Stakeholders: – Our long-term success depends upon our relationships with all stakeholders: customers, agents, employees, injured workers, investors, regulators, and the communities in which we operate. – For more on our sustainability effort
Slide 24: Leadership: Board of Directors
LEADERSHIP Board of Directors Jared A. Morris Michael J. Brown Teri G. Fontenot G. Janelle Frost Chairman Director Director Chief Executive Officer & President Philip A. Garcia Billy B. Greer Randall E. Roach Sean M. Traynor Director Director Director Director 24
Slide 25: Leadership: Executives
LEADERSHIP Executives G. Janelle Frost Vincent J. Gagliano Andy Omiridis Kathryn H. Shirley Ray Wise Chief Executive Officer Executive Vice President Executive Vice President Executive Vice President, Executive Vice President & & President & Chief Risk Officer & Chief Financial Officer Chief Adminis
Slide 26: Selected Balance Sheet Data
SELECTED BALANCE SHEET DATA (IN THOUSANDS) 2024 2023 2022 2021 2020 Investments, Cash and cash equivalents $832,823 $896,468 $950,456 $1,083,293 $1,150,501 Amounts recoverable from reinsurers 117,019 129,963 125,677 120,561 105,803 Premiums receivable, net 142,659 132,861 121,713 135,100 156,760 Def
Slide 27: Income Statement
INCOME STATEMENT (IN THOUSANDS) 2024 2023 2022 2021 2020 Revenues: Gross premiums written $294,144 $285,355 $276,110 $278,294 $303,090 Ceded premiums written (18,164) (16,621) (10,527) (10,469) (10,276) Net premiums written $275,980 $268,734 $265,583 $267,825 $292,814 Net premiums earned $270,639 $2
Slide 28: AMERISAFE: Safe Above All
AMERISAFE Safe Above All