AMERISAFE, Inc. (NASDAQ:AMSF) Q3 2023 Earnings Conference Call October 26, 2023 10:30 AM ET
Company Participants
Kathryn Shirley - Chief Administrative Officer
Janelle Frost - President & Chief Executive Officer
Andy Omiridis - Chief Financial Officer
Conference Call Participants
Mark Hughes - Truist
Matt Carletti - JMP
Operator
Good day. And welcome to the AMERISAFE 2023 Third Quarter Earnings Conference Call. Today's conference is being recorded.
At this time, I'd like to turn the conference over to Kathryn Shirley. Please go ahead.
Kathryn Shirley
Good morning. Welcome to the AMERISAFE 2023 third quarter investor call. If you have not received the earnings release, it is available on our website at amerisafe.com. This call is being recorded. A replay of today's call will be available. Details on how to access the replay are in the earnings release.
During this call, we will be making forward-looking statements. These statements are 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 risks, uncertainties and other factors, including factors discussed in today's earnings release, in the comments made during this call and in the Risk Factors section of our Form 10-K, Form 10-Q and other reports and filings with the Securities and Exchange Commission. We do not undertake any duty to update any forward-looking statements.
I will now turn the call over to Janelle Frost, AMERISAFE's President and CEO.
Janelle Frost
Thank you, Kathryn, and good morning, everyone. During the third quarter momentum in our top line grew with increased in-force policy count as well as an increase in audit premium. However, our expense ratio was elevated due to some infrequent items during the quarter which Andy will provide more detail on.
The overall workers' compensation market has remained fairly stable from the last quarter with declining rates partially offset by wage inflation. Our underwriting discipline is demonstrated in our ability to maintain strong margins throughout many market cycles.
In the third quarter we reported a combined ratio of 90.6% and a return on average equity of 11.8%. Our top line increased 3.9% compared with the third quarter of 2022 with voluntary premium for policies written in the quarter growing 1.1%. We continue to see strong retention in policies for which we offer renewal with a 95%, retention for the quarter.