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.
