AMERISAFE's Q4 2024 Earnings Call: Discrepancies in Policy Growth, Underwriting, and Expense Management

These are the key contradictions discussed in AMERISAFE's latest 2024Q4 earnings call, specifically including: Policy Growth Trends, Underwriting Strategy, and Expense Ratio Trends:



Premium Growth and Policy Count Expansion:
- AMERISAFE reported a 3.9% increase in gross premiums written for Q4 2024 and 3.1% for the full year, with voluntary premiums on policies written rising by 8.5% in Q4 and 4.6% for the year.
- The increase in policy count by 9.6% for the year and 2.6% in Q4 was driven by strong premium retention and robust new business production.

Reserve Gains and Favorable Development:
- The company recognized $9.7 million in favorable development from prior accident years in Q4 2024, with $34.9 million for the full year.
- This development was attributed to favorable outcomes in older accident years, including $1 million from 2022 and $1.5 million from 2021.

Dividend Increase and Capital Management:
- AMERISAFE's Board of Directors approved a 5.4% increase in the regular dividend to $0.39 per share.
- This decision reflects the company's strong capital position and financial performance, allowing for sustained shareholder value creation.

Operational Efficiency and Combined Ratio:
- AMERISAFE achieved a combined ratio of 88.7% and an ROE of 20.2%, mainly due to consistent underwriting margins and disciplined growth strategies.
- This success was a result of collaboration across the organization and a focus on sales-driven culture and employee empowerment.