Total Revenue

9.8% decline

Total Revenue fell from $80.5 million in Q1 2024 to $72.6 million in Q1 2025, reflecting potential market headwinds, lower sales volume, or pricing challenges that contributed to reduced revenue. This decline is consistent with external market pressures and competitive dynamics observed in the period. " " " "

Net Income

47% drop

Net Income dropped sharply from $16.93 million in Q1 2024 to $8.95 million in Q1 2025, indicating severe margin pressure. This decline is largely driven by the decrease in revenue along with a slight rise in expenses, which together signal operational challenges and cost inefficiencies in the current period compared to the previous period. " "

Net Investment Income

9.5% decline

Net Investment Income declined from $7.37 million in Q1 2024 to $6.65 million in Q1 2025, primarily due to lower average invested asset balances. This trend continues from previous periods and is partly attributed to the impact of a special dividend payment, which reduced the investable asset base. " "

Basic EPS

47% drop

Basic EPS decreased from $0.89 in Q1 2024 to $0.47 in Q1 2025, mirroring the net income decline. The drop indicates that the deterioration in profitability, coupled with relatively stable share counts, directly affected earnings per share, highlighting the impact of lower revenue and higher relative expenses on shareholder returns. " "

Audit Premium Dynamics

In previous quarters the calls highlighted audit premium contributions with varying levels—from Q2 2024’s high contribution supported by wage inflation " " to Q3 2024’s material top‐line additions albeit with moderating growth " " and Q4 2024’s outlook of deceleration despite a positive premium outlook. "

Q1 2025 discussed a decline in audit premium contribution (from $6.4 million to $5 million) attributed to moderation in wage inflation, with a regional nuance where rebuilding efforts in North Carolina and Georgia saw a slight increase. " "

Recurring discussion on audit premiums remains, but sentiment has shifted from robust contributions in earlier periods to a more cautious view with moderation and regional variability.

Expense and Underwriting Cost Management

Earlier calls, such as Q2 2024 through Q4 2024, detailed increases in expenses and rising expense ratios—Q2 2024 showing a 29.8% ratio driven by upfront investments " " , Q3 2024 noting improvements in expense ratio from 33.6% to 31.7% " , and Q4 2024 attributing a 4% increase to lower premium growth. "

In Q1 2025, expenses increased to $20.6 million with a ratio of 29.9%, attributed to ongoing investments for growth. The company expects costs to moderate as the year progresses. " "

Consistent focus on managing underwriting costs with investments highlighted in every period. The current period’s messaging reinforces the temporary nature of the expense increase with expectations for future moderation.

Claims Handling

Across Q2 to Q4 2024, AMERISAFE emphasized effective and proactive claims handling. Q2 2024 noted favorable reserve development via proactive handling " ; Q3 2024 mentioned favorable outcomes with a $8.5 million improvement " ; and Q4 2024 stressed efficient claims closure exceeding industry averages. "

Q1 2025 reported an $8.7 million favorable development on prior accident years attributed to proactive claims handling, underscoring a consistently effective approach. "

Continued strong performance. The narrative remains positive as claims handling practices consistently generate favorable reserve developments, with Q1 2025 showing similar results to previous periods.

Medical Cost Control

In prior periods (Q2–Q4 2024), the focus was on stable cost control—with Q2 2024 noting that fee schedules were containing inflation " and Q3 2024 mentioning no significant changes, while Q4 2024 focused on monitoring home health costs without major adjustments. "

In Q1 2025, however, the discussion shifted to rising medical costs—specifically increases in physician care charges—with active measures like repricing and negotiations in place, signaling heightened vigilance. "

Shift in sentiment from stability to alert as rising medical costs are now a greater concern. There is an increased emphasis on actively managing upward cost pressures, marking a change from earlier calm.

Reserve Management

Previous periods consistently highlighted effective reserve management with favorable developments: Q2 2024 reported $8.1 million, Q3 2024 noted $80.5 million in favorable development, and Q4 2024 mentioned efficient claim closures with 99% of claims from prior years closed. " " " " "

Q1 2025 noted a favorable reserve development of $8.7 million from prior accident years, reinforcing the notion of prudent reserving practices. "

Steady and positive. Reserve management remains a strong point with consistent favorable developments. The current period continues the trend of effective reserve practices with a slight improvement.

Loss Cost Trends and Declines

Prior discussions in Q2 2024 (8%–9% declines " " ), Q3 2024 (anticipation of upper single-digit declines " " ), and Q4 2024 (mid-single-digit decreases with varied state performance " ) emphasized a trend toward declining loss costs.

Q1 2025 projected mid-single-digit decreases (6% to 8%), noting only two rate increases and detailing state-by-state variations, consistent with previous expectations. "

Consistent downward trend. The outlook for loss cost declines has been maintained across periods with similar expectations of mid‐single‐digit reductions, reflecting steady sentiment regarding cost containment.

Policy Growth and Retention Trends

Earlier periods showed robust growth and retention: Q2 2024 sustained a 93.3% renewal rate with consistent policy count growth " " " ; Q3 2024 featured 93.6% retention and increased written premiums " " ; and Q4 2024 reported a 9.6% annual policy count growth with retention rates of 94.1%. " " "

Q1 2025 continued this trajectory with strong policy growth—gross written premiums up 4.6%, policies written up 7.1%, and a retention rate of 93.1%—underscoring ongoing new business gains and high premium retention. " "

Steady and positive. The company's ability to grow policy count and maintain high retention levels is clearly a consistent strength, with current period figures aligning with previous robust performance.

Agent Engagement and New Business Development

In Q2–Q4 2024, the focus was on enhancing agent relationships and boosting new business. Q2 2024 highlighted improved pipeline efficiency and a 2.7% growth in voluntary debt premiums " " ; Q3 2024 discussed refined engagement and incremental new business " " " ; and Q4 2024 emphasized strong agent relationships driving premium retention and new business production. " " "

Q1 2025 reiterated the importance of agent engagement with strong new business gains, noting consistent new business and a 93.1% retention rate that supports incremental growth. " "

Consistent focus and optimism. Agent engagement has been a core strategic theme, and the current period reinforces this with continued emphasis on strong relationships and new business development, mirroring past efforts.

Yield Environment and Investment Returns Pressure

There was no discussion of the yield environment or investment returns pressure in any of the previous earnings calls (Q2–Q4 2024).

Q1 2025 also did not mention yield environment or investment returns pressure.

Not discussed. This topic has not been raised in either previous or current periods.

Premium Quality and Average Policy Size

The Q4 2024 call mentioned that while premium quality was supported by strong retention and profitable high‐risk underwriting, the average policy size was slightly lower than the prior year due to a slowdown in payroll growth. " Q3 and Q2 2024 did not explicitly discuss these metrics.

Q1 2025 did not provide specific insights on premium quality or average policy size, focusing instead on overall premium and policy growth metrics. "

Decreased focus. While these aspects were addressed previously, current period discussions have moved away from explicit commentary on premium quality and average policy size.

Ceded Premium Pressure

Q4 2024 included a focused discussion where elevated ceded premium (around 6% of gross premiums) was noted and attributed to growth, with detailed commentary from executives. " There was no mention in Q2 or Q3 2024.

Q1 2025 did not mention ceded premium pressure at all.

Discontinued discussion. The topic, discussed in Q4 2024, is no longer mentioned in Q1 2025, suggesting it may no longer be a focal concern.

Growth Sustainability and Uncertainty

In Q2 through Q4 2024, management consistently emphasized incremental, profitable growth driven by strong retention, agent engagement, and operational efficiency " " " " " " , while also outlining uncertainties related to economic factors, competitive pressures, and investment returns.

Q1 2025 continued to stress growth sustainability—with incremental growth in premiums and strong retention—while specifically noting economic uncertainties (tariffs, inflation, recession, interest rates) that might impact future premium trajectories. "

Ongoing focus with heightened caution. The commitment to sustainable growth remains, yet there is an increased emphasis on external uncertainties in the current period.

Core Strategy Focus on a Specialized Book

There was no discussion of a core strategy focused on a specialized book in Q2, Q3, or Q4 2024.

Q1 2025 also does not mention any core strategy focus on a specialized book.

Not discussed in any period. This topic has not been raised in the provided earnings calls.