AMERISAFE, Inc. (NASDAQ:AMSF) Q1 2023 Earnings Conference Call April 27, 2023 11:00 AM ET
Company Participants
Kathryn Shirley - Chief Administrative Officer
Janelle Frost - President & CEO
Andy Omiridis - CFO
Conference Call Participants
Matt Carletti - JMP
Mark Hughes - Truist Securities
Bob Farnam - Janney
Operator
Good day, and welcome to the AMERISAFE 2023 First Quarter Earnings Call. Today's conference is being recorded.
At this time, I'd like to turn the presentation over to Ms. Kathryn Shirley. Please go ahead, ma'am.
Kathryn Shirley
Good morning. Welcome to the AMERISAFE 2023 first 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. AMERISAFE's long tenure in the high hazard workers' compensation market and disciplined approach to risk selection and pricing has allowed us to navigate competition and pricing pressure while maintaining solid results. We started the year with a strong first quarter performance reporting a combined ratio of 82.2%, gross premiums written growth of 6%, and an operating ROE of 19.1%.
During the quarter, topline grew 6% as positive audit premiums more than offset rate declines. Our overall pricing this quarter as measured by our ELCM was a 148. We continue to see strong retention in policies we offer renewals with a 94% retention for the first quarter, largely in line with our recent experience despite steady competition.
As we look forward, competitive pressures and rate declines are anticipated to remain a headwind. At the same time, we anticipate audit premiums to remain a tailwind. However, the quarter-over-quarter growth comparisons should begin to flatten.