[Management View]
Amerisafe emphasized targeted premium growth and disciplined underwriting within a competitive workers' compensation market. Management highlighted a 12.8% increase in voluntary premiums and a 3.4% rise in policy count, driven by effective agent relationships and strong renewal retention.

[Outlook]
The company plans to maintain its current year loss ratio assumption of 71% despite ongoing pressures. Future strategies include continued capital management initiatives, such as a new $25 million share repurchase program and regular dividends.

[Financial Performance]
Amerisafe reported a net income of $14 million, or $0.73 per diluted share, for Q2 2025, compared to $11 million, or $0.57 per diluted share, in Q2 2024. Gross written premiums increased by 4.3% YoY to $79.7 million. The expense ratio rose to 31.3% from 29.8% due to growth investments and insurance-based assessments.

[Q&A Highlights]
Question 1: What drove the 13% growth in written premiums this quarter?
Answer: The growth was attributed to the Amerisafe team's focus on ease of doing business, agent effectiveness, and scalability. Policy count grew by 5.8% since year-end, with a 93% pre-quote safety inspection rate. The company maintained its risk selection process, focusing on hazard groups E, F, and G.

Question 2: Has there been any change in the average policy size?
Answer: There was a slight change, with average premium size potentially slightly down due to mid-single-digit loss cost declines and wage growth balancing out.

Question 3: Observations on medical inflation and Medicare fee schedule updates?
Answer: Medical severity increased by 6%, with NCCI attributing it to utilization. Amerisafe has not changed its reserving practices, relying on long-term averages and consistent injury types.

Question 4: Any stats on new business production year over year?
Answer: While specific numbers were not disclosed, policy count grew by 3.4% in the quarter, with a reduction in agent count indicating more effective relationships.

Question 5: What's the current vibe in the construction sector?
Answer: Wage growth continues, but new employee count slightly decreased. Extended work hours could impact frequency, and immigration factors may influence premium dollars and frequency.

Question 6: Any changes to caseload per claim personnel?
Answer: No changes, with caseloads remaining below 50 claims per adjuster.

Question 7: Is there upward pressure on the 71% active year loss ratio assumption?
Answer: Yes, there is pressure due to declining loss costs, but Amerisafe's reserving practices help manage profitability.

Question 8: How is capital management balanced between share repurchases and special dividends?
Answer: The company balances buybacks with special dividends, with sufficient capital for both.

Question 9: What drove the increase in policyholder dividends this quarter?
Answer: More policies qualified for dividends, which are influenced by competitive factors and loss experience, particularly in states like Florida.

[Sentiment Analysis]
Analysts and management maintained a positive tone, focusing on strategic growth and effective capital management. Management expressed confidence in their operational strategies and market positioning.

[Quarterly Comparison]
| Metric | Q2 2025 | Q2 2024 |
|----------------------------|---------|---------|
| Net Income ($ million) | 14 | 11 |
| Diluted EPS ($) | 0.73 | 0.57 |
| Gross Written Premiums ($ million) | 79.7 | 76.4 |
| Expense Ratio (%) | 31.3 | 29.8 |

[Risks and Concerns]
Key risks include ongoing pressure on the loss ratio due to declining loss costs and potential market shifts. The company is also monitoring medical inflation and its impact on reserves.

[Final Takeaway]
Amerisafe demonstrated strong premium growth and effective capital management in Q2 2025, driven by strategic agent relationships and disciplined underwriting. Despite pressures on the loss ratio, the company remains well-positioned with a solid balance sheet and conservative investment portfolio. Management's focus on scalability and risk selection continues to support profitability in a competitive market.