AMERISAFE, Inc. (NASDAQ:AMSF) Q2 2024 Earnings Conference Call July 30, 2024 10:30 AM ET

Company Participants

Kathryn Shirley - Chief Administrative Officer
Janelle Frost - President & Chief Executive Officer
Andy Omiridis - Executive Vice President & Chief Financial Officer

Conference Call Participants

Matt Carletti - Citizens JMP
Mark Hughes - Truist
Gregory Peters - Raymond James
Bob Farnam - Janney

Operator

Good day. And welcome to the AMERISAFE 2024 Second Quarter Earnings Call. Today’s conference is being recorded.

At this time, I’d like to turn the conference over to Kathryn Shirley, Chief Administrative Officer. Please go ahead.

Kathryn Shirley

Good morning. Welcome to the AMERISAFE 2024 second 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 a 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 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. The state of the workers' compensation market remains profitable, despite continued rate softening. The industry-wide data published by NCCI in May was similar to what we've seen over the last few years. An accident year combined ratio below 100 and redundant reserves driving approved loss cost declines. These conditions translate to a competitive marketplace, one in which AMERISAFE's disciplined underwriting is critical to long-term profitability.

For several quarters, we have discussed our investment in profitable growth through greater agent engagement and pipeline efficiency. These actions drove year-over-year gross premiums written growth of 6.6% in the quarter. We saw policy count growth in the quarter, and we continue to see strong retention for policies for which we offer renewal with 93.3% retention. Audit premium supported by wage inflation would also a boost to top line.