AMERISAFE, Inc. (AMSF) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

based on current expectations and assumptions that are subject to various risks and uncertainties. Actual results may differ materially from the results expressed or implied in these statements if the underlying assumptions prove to be incorrect or as the result of risk, uncertainties, and other factors, including factors discussed in the earnings release, in the comments made during today's call, and in the risk factor section of our Form 10-K, Form 10-Qs, and other reports and filings with the Securities and Exchange Commission. We do not undertake any duty to update any forward-looking statement. I will now turn the call over to Janelle Frost, AmeriSafe's President and CEO. Thank you, Katherine, and good morning, everyone. I am pleased to begin today's call highlighting our continued success in growing premiums by increasing policy count exhibiting pricing discipline, and strong renewal retention. Our risk selection, coupled with working more effectively with our agents, generated 12.8% growth in voluntary premiums for policies written in the quarter. Our enforced policy count grew 3.4% in the quarter, supported by new business growth and 93.8% renewal retention. These accomplishments took place in the competitive market, where workers' compensation remains the most profitable in the property and casualty space. According to NCCI, the industry's combined ratio remained below 100% for 2024. However, it did not improve over 2023, unlike the other P&C lines, which are getting rate increases. Workers' compensation approved loss costs, on average, are down mid-single digits. with California being a significant outlier with an 8.7% increase. While AmeriSafe only has ancillary exposure in California, we cannot ignore the potential for this dramatic increase to signal a s...