Amerisafe, Inc. · NASDAQ:AMSF
Amerisafe — Burkenroad Reports Investor Conference 2008
16 slides from Amerisafe's conference presentation, Apr 25, 2008
Slide 1: Burkenroad Reports Investor Conference
Exhibit 99.1 BURKENROAD REPORTS Investor Conference April 25, 2008 New Orleans, LA C. Allen Bradley, Jr. Geoffrey R. Banta Chairman, President & CEO EVP & CFO
Slide 2: Forward Looking Statements
Forward Looking Statements Statements made in this presentation that are not historical facts, including statements accompanied by words such as “will,” “believe,” “anticipate,” “expect,” “estimate,” “preliminary,” or similar words are forward-looking statements within the meaning of the Private Sec
Slide 3: Overview
Overview Specialty provider of workers’ compensation insurance Workers’ compensation insurance is statutorily required coverage and includes Medical expenses Temporary or permanent disability benefits Death benefits Focus on small to mid-sized employers engaged in hazardous industries Principally co
Slide 4: Focus on Hazardous Industries
Focus on Hazardous Industries Employers in hazardous industries pay substantially higher workers’ comp rates Our 2007 average premium rate per $100 of payroll is much higher than the national average Nature of work performed and inherent workplace danger of our target employers Less frequent but mor
Slide 5: Geographically Diverse Book of Business
Geographically Diverse Book of Business No state represents more than 11% of gross premiums written as of 12/31/07 Market share did not exceed 5% in any state through 12/31/07 Due to nature of our policyholders’ businesses, we have minimal terrorism exposure Competition is fragmented Distribution by
Slide 6: Risk Selection – Underwriting & Safety
Risk Selection – Underwriting & Safety Underwriting authority not Our Field Safety Professionals delegated to agents (“FSPs”) work from mobile locations and visit employer worksites Industry-specific risk analysis and rating tools developed In-depth knowledge of insureds’ over 22 years of underwriti
Slide 7: Risk Selection - Specialized Underwriting Process
Risk Selection - Specialized Underwriting Process Multiple supplemental applications require industry-specific information Risk matrices generated from these applications Internal and online resources used for industry-specific account evaluation Multi-level review and consultative procedures Standa
Slide 8: High-Touch Service Model - Claims & Premium Audit
High-Touch Service Model - Claims & Premium Audit Field Case Managers (“FCMs”) Field Audit Professionals perform located throughout the markets annual premium audits on expired voluntary policies, most performed at insured’s facilities Approximately 53 open indemnity claims per FCM as of 12/31/2007
Slide 9: Underwriting Environment - Loss Cost Trends
Underwriting Environment - Loss Cost Trends MN -2.6% WI -2.5% IA PA -10.2% NV -0.3% IN IL -10.5% DE -17.8% CO 4.0% -0.2% KS VA DC -7.6% MO -8.8% 5.6% -10.1% 2.5% MD -1.7% KY -6.1% NC 1.6% OK TN -7.2% AR 7.2% SC 18.4% 2.7% GA AL MS 4.2% -9.5% TX LA -4.7% AK -7.7% -8.6% -10.9% FL -18.4% Loss Cost Decr
Slide 10: Underwriting Environment - Pricing Trends
Underwriting Environment - Pricing Trends Most states set expected costs of medical and indemnity benefits (“loss costs”); we then apply a state filed loss cost multiplier (“LCM”) Even under increasingly competitive market, we remain focused on pricing discipline Policy Year Effective LCM 1.60 1.53
Slide 11: Strong Financial Performance
Strong Financial Performance Consistent returns over the last nine quarters 1 2007 Operating ROE of 24.1% BVPS Operating ROE (%) $12.00 $11.66 35% $11.50 33% 33.0% $11.00 $10.84 30% $10.50 $10.25 28% $10.00 $9.65 $9.50 $9.23 25% 22.8% $9.00 24.6% 23% $8.64 22.3% $8.50 19.3% $8.18 17.9% 20% $8.00 $7.
Slide 12: Scalable Infrastructure
Scalable Infrastructure Investments in technology have enhanced our ability to select risk, write profitable business, and cost-effectively administer our billing, claims, and audit functions. Net Underwriting Expense Ratio Gross Premiums Written Net Underwriting Expense Ratio 34.0% $332.5 $327.8 32
Slide 13: Selected Balance Sheet Data
Selected Balance Sheet Data As of As of As of 31-Dec- 05 31-Dec- 06 31-Dec- 07 ($ Thousands) Investments, Cash and Cash Equivalents 582,904 665,528 759,074 Amounts Recoverable from Reinsurers 122,562 109,603 76,915 Premiums Receivable, Net and Accrued Interest Receivable 128,531 150,305 159,229 Defe
Slide 14: Income Statement
Income Statement 2005 2006 2007 Revenues : Gross premiums written $290,891 $332,491 $327,761 Ceded premiums written (21,541) (19,950) (20,215) Net premiums written $269,350 $312,541 $307,546 Net premiums earned $256,568 $299,303 $306,906 Net investment income 16,882 25,383 30,208 Net realized gains
Slide 15: Investment Portfolio - Profile
Investment Portfolio - Profile Carrying value of cash and investments was $759 MM at December 31, 2007 Investment Portfolio Mix at December 31, 2007 Commercial Mortgage- Equities Cash & Backed Securities 5.2% Cash Equivalents 6.8% U.S. Treasuries / 6.3% Agencies 6.3% Variable Rate Demand Obligations
Slide 16: Investment Opportunity
Investment Opportunity Niche focus on small to midsized employers engaged in hazardous industries Strong operating cash flows and operational leverage Specialized underwriting expertise developed over 22-year history Efficient expense structure and scalable business model Comparatively high investme
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