JMP Securities Midwest Roadshow July 13-14, 2015 C. Allen Bradley, Jr. Vincent J. Gagliano Executive Chairman EVP and Chief Technology Officer
Overview AMERISAFE has a 29-year operating history as a specialty provider of workers compensation insurance for small to mid-sized employers engaged in high hazard industries Premium Distribution by State 2015 1Q Highlights Total…
Premium Distribution Historical Premium Distribution Premium Distribution by Industry as of 12/31/14 of Major Industry Groups *Includes Assigned Risk & Assumed premiums (in millions) Maritime 2.9% 2012 Construction 200 Mftg 7.2%…
Pillars of Distinction AMSF High Hazard Small to Mid- High Hazard Comprehensive Intensive Claims Niche Focus Size Underwriting Safety Services Management Employer Expertise Rate more Focus Field Safety Field Case than 3x Industry-…
Amerisafe Customer Overview Competition is fragmented, and favors multi-state writers of small to mid-sized employers Intensity of Competition Large Large Competitors (major national firms); Annual Represents 9% of AMSF…
Pricing for Profitability Loss costs estimated loss/100 payroll approved by state regulator Loss cost multiplier (LCM) multiplier applied to loss costs to cover company expenses above loss costs Effective loss cost multiplier (ELCM)…
Economic Model - ROE Drivers 1Q15 Loss Ratio 63.3% + Expense Ratio 21.5% + Imperative to execute Policyholder Dividend Ratio 0.2% = on the fundamentals of Combined Ratio 85.0% underwriting, safety and claims with investment…
Contributions to Returns 5 Year Average Contribution and Return on Surplus 10 Year Average Contribution and Return on Surplus 20% 30% 15% 20% 10% 10% 5% 0% 0% -10% -5% -20% -10% -30% Amerisafe A++, A+ A A- B++…
Investment Portfolio Value of Fixed-Maturity Securities Portfolio Allocation (as of 3/31/2015) Classified as Held-to-Maturity Cash & Cash Short-term (as of 3/31/2015) Equivalents investments Book Value Fair Value Unrealized 6.9%…
Capital Management Goal: Maintain and Balance Hold prudent capital levels to maintain A.M. Best financial strength rating of A, yet achieve attractive returns for shareholders History of Proactive Capital Management 62.0M of…
WC Insurance Rate Changes Source: The Council of Insurance Agents & Brokers. Chart prepared by Barclays Research. 17
Residual Market Activity *Premium volume shown is net of uncollectible premium for all states and net of premium ceded for the cost of excess reinsurance for AK and NM. Source: National Council of Compensation Insurance, Inc. 18
Reduction in Combined Ratio Necessary to Offset 1% Decline in Investment Yield to Maintain Constant ROE, by Line* Lower Investment Earnings Place a Greater Burden on Underwriting and Pricing Discipline *Based on 2008 Invested…
Appendix 20
Nasdaq: AMSF Market Statistics: Stock Price 47.62 52 week range 35.15 - 48.45 Shares Outstanding 18.9 M Market Cap 914 M Book Value per Share 24.32 Price-to-Book 1.78 Market data as of June 9, 2015; Financial data as of…
Selected Balance Sheet Data (in thousands) 1Q15 2014 2013 Investments, Cash and cash equivalents 1,153,094 1,107,289 1,001,852 Amounts recoverable from reinsurers 87,377 85,888 75,326 Premiums receivable, net 188,281 178,917…
Income Statement (in thousands) 1Q15 2014 2013 Revenues: Gross premiums written 100,789 393,819 372,177 Ceded premiums written (2,536) (13,793) (18,425) Net premiums written 98,253 380,026 353,752 Net premiums earned 94,787…
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