Yahoo Finance AMERISAFE Inc (AMSF) Q1 2024 Earnings Call Transcript Highlights: Key Financial Metrics and ...
Combined Ratio: 87.3%
Return on Equity (ROE): 22.8%
Policy Retention Rate: 94.9%
Gross Premiums Written: Decreased 2.9% year-over-year
Accident Year Loss Ratio: 71%, consistent with prior year
Net Income: $16.9 million, down from $17.3 million year-over-year
Earnings Per Share (EPS): $0.88 per diluted share, down from $0.90 year-over-year
Operating Net Income: $13.3 million, down from $16.1 million year-over-year
Gross Written Premiums: $80.1 million, down from $82.5 million year-over-year
Expense Ratio: Increased to 27.3% from 24.5% year-over-year
Tax Rate: 18.4%, down from 19.5% year-over-year
Net Investment Income: Decreased 0.9% to $7.4 million
Book Value Per Share: $15.74, up 3% from previous quarter
Operating Return on Average Equity: 17.5%
Statutory Surplus: $270.5 million, up 6.1% from end of previous year
Release Date: April 25, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Could you provide the ELCM for this quarter? A (Gerry Frost, President and CEO): It was 144.
Q: Can you specify the payroll growth and the proportion of that which was wage increases this quarter? A (Gerry Frost, President and CEO): Our payroll growth for the quarter was 7.6%, with 6.4% being wage increases and the remainder from new employees.
Q: How is the NQTI loss cost trending for you this quarter? A (Gerry Frost, President and CEO): It's trending at high to mid single digits, around 7% to 8% across all states.
Q: How would you characterize the competitive environment currently compared to the last few quarters? A (Gerry Frost, President and CEO): The competitive environment remains unchanged; it's very competitive due to ongoing rate decreases, but we haven't seen new capital entering the space or companies trying to buy market share.
Q: Were there any large losses this quarter? A (Gerry Frost, President and CEO): Yes, we had two claims in excess of $1 million this quarter, which is consistent with the first quarter of last year.
Q: Did Amerisafe buy back any stock this quarter? A (Gerry Frost, President and CEO): We did not buy back any stock this quarter.
Q: Can you update us on the efforts and results of increasing agent engagement? A (Gerry Frost, President and CEO): We've been reinforcing our value proposition and clarifying our appetite to our agents, which has led to an increase in new business despite strong competition and rate decreases in the market.
Q: Despite higher yields, why did investment income dip slightly? A (Anastasios Omiridis, CFO): The dip was purely due to a decrease in the asset base following the payout of a special dividend.
Q: Is the current expense ratio of 27.3% a reasonable run rate, or is it skewed by any factors? A (Anastasios Omiridis, CFO): The 27.3% expense ratio is within the normal range of 26% to 29%. Last year's lower rate was influenced by a favorable impact from profit sharing commission.
Q: Was the wage pressure not as robust in 2023 as previously? A (Gerry Frost, President and CEO): Yes, wage pressure has started to taper, with payroll increases now at 7.6%, which is still above the national average but less than previous quarters.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
