AMERISAFE, Inc.

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. Catherine Shirley. Please go ahead, ma'am.

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 results of risk, uncertainties, and other factors including factors discussed in today's earnings release, in the comments made during this call, and in the risk factor 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.

Thank you, Catherine, 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, top line 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 redoles, 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. Moving to losses, the accident year loss ratio remains steady with the prior year at 71%. During the quarter, our claims handling practices drove better than expected outcomes, resulting in favorable prior year development of 10.1 million, or 14.6 loss ratio points. These reserves were primarily released from accident years 2016 through 2020. As it relates to loss trends, frequency and severity are both within our line of expectations. Frequency was trending slightly below and severity on par with the previous accident year. It bears repeating that claims trends can be lumpy when isolating quarters. As has been our historical practice, our case reserves include anticipated medical inflation particularly given the long-tail nature of severe claims. Our balance sheet is conservatively positioned, as we were mentally impacted by the economic volatility this quarter. Our financial position remains strong, with roughly $1 billion in investments in cash, a solid reserve position, and no outstanding debt. We expect our market dynamics to remain challenging. However, given our long tenure of experience in high-hazard niche and strong balance sheets, We are well positioned to retain our policyholders and attract business while delivering robust returns to our shareholders. With that, I'll turn the call over to Andy to discuss our financials.