AMERISAFE, Inc.

Please stand by. We are about to begin. Good day and welcome to the AmeriSafe 2023 Second Quarter Earnings Call. Today's conference is being recorded. At this time, I'd like to hand the call over to Catherine Shirley. Please go ahead.

Good morning. Welcome to the AmeriSafe 2023 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 the results 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.

Thank you, Katherine, and good morning, everyone. The state of the workers' compensation market overall remains profitable, despite continued rate softening. The line is reporting an industry-wide combined ratio below 100 percent. Reserves remain redundant, and approved loss-cost declines are expected to continue. Amerisafe is a disciplined underwriter in the high-hazard workers' compensation market that has demonstrated the ability to maintain strong margins throughout many market cycles. In the second quarter, we reported a combined ratio of 85.4% and a return on average equity of 18.6%. During the quarter, our top line decreased 3.7%, driven by continued rate declines and wage inflation slightly slowing when compared with a strong year-over-year growth in the second quarter of 2022. We continue to see strong retention in policies for which we offer renewal, with 93% retention for the second quarter, largely in line with the recent experience despite continued competition. As we look ahead, competitive pressures and rate declines are expected to remain a headwind, offset by strong payrolls. Moving to losses, the current accident year loss ratio remained a steady 71%. During the quarter, our claims handling practices drove better than expected outcomes, resulting in favorable prior period development of 10.9 million, or 16.7 loss ratio points. These reserves were primarily released from accident years 2018 through 2021. As it relates to loss trends, frequency and severity are both in line with our expectations, trending slightly lower than compared to the previous accident year at six months. As stated last quarter, we continue to expect medical inflation to increase as the year progresses and reflect these trends in our setting case reserves. Our balance sheet is conservatively positioned, roughly $960 million in investments and cash. a solid reserve position, and no outstanding debt. We expect our market dynamics to remain challenging. However, given our long tenure of experience through market cycles, we are well positioned to retain our policyholders and attract business while delivering robust returns to our shareholders. Finally, I'd also like to highlight AmeriSafe's inclusion in the Ward 50 top-performing property and casualty companies for the 15th consecutive year. This recognition is a testament to our employees' expertise in the high-hazard workers' compensation niche, resulting in financial strength and stability of our company. With that, I'll turn the call over to Andy to discuss the financials.