Amerisafe Inc (AMSF) 2023 Q4 法說會逐字稿

Good day, and welcome to the Amerisafe 2023 fourth quarter earnings conference call. Today's conference is being recorded at this time, I'd like to turn the presentation over to Ms. Kathryn Shirley, Chief Administrative Officer. Please go ahead, ma'am.

美好的一天，歡迎參加 Amerisafe 2023 年第四季財報電話會議。今天的會議正在錄製中，我想將簡報交給首席行政官 Kathryn Shirley 女士。請繼續，女士。

Good morning. Welcome to the Amerisafe 2023 fourth 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 for 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.

早安.歡迎參加 Amerisafe 2023 年第四季投資者電話會議。如果您還沒有收到收益發布。您可以在我們的網站 amerisafe.com 上取得該資訊。此通話正在錄音。今天的電話會議將提供重播，有關如何存取重播的詳細資訊將在收益發布中提供。在本次電話會議中，我們將做出前瞻性陳述。這些陳述是基於目前的預期和假設，受到各種風險和不確定性的影響。

Actual results may differ materially from the results expressed or implied in these statements. If the underlying assumptions prove to be incorrect or as a result of risks, uncertainties and other factors, including factors discussed in the earnings release and 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.

實際結果可能與這些陳述中明示或暗示的結果有重大差異。如果基本假設被證明不正確或由於風險、不確定性和其他因素（包括收益發布中討論的因素以及今天電話會議期間發表的評論以及表格10-K、表格10- 的風險因素部分中討論的因素）而被證明是不正確的Q，以及向美國證券交易委員會提交的其他報告和文件。我們不承擔更新任何前瞻性陳述的責任。

I will now turn the call over to Janelle Frost, Amerisafe's President and CEO.

我現在將把電話轉給 Amerisafe 總裁兼執行長 Janelle Frost。

Thank you, Kathryn, and good morning, everyone. We are pleased to report solid operating earnings, our group results for both the fourth quarter and full year of 2023. For the year, we reported a combined ratio of 85.9%, gross premium written growth of 3.3% and operating ROE of 17.7%.

謝謝凱瑟琳，大家早安。我們很高興地報告穩健的營業收入、2023 年第四季和全年的集團表現。今年，我們的綜合成本率為 85.9%，毛保費成長 3.3%，營運 ROE 為 17.7%。

These results come during a period in the workers' compensation industry of multiyear rate decreases, somewhat offset by recent wage inflation. Competition has not lessened as workers' compensation is one of the more profitable of the per park per property and casualty lines remaining true to our disciplined approach of underwriting, high hazard risk while being responsive to our agents and caring for the needs of injured workers and their employers is evident in our consistent results year after year and serves all of our stakeholders.

這些結果是在工人賠償行業多年來利率下降的時期得出的，在一定程度上被最近的工資上漲所抵消。競爭並沒有減少，因為工人賠償是每個公園每個物業的更有利可圖的賠償之一，傷亡限額仍然忠於我們嚴格的承保方法，高危險風險，同時響應我們的代理人並照顧受傷工人和工人的需求。他們的雇主在我們年復一年的一致業績中顯而易見，並為我們所有的利害關係人提供服務。

Gross written premiums for the quarter were $60.3 million, increasing 8.4% during the quarter. Premiums for policies written in the quarter increased 4.7%, which was further improved by payroll audit and related premium adjustments of $4.8 million. At Amerisafe, we continue to see strong retention and policies for which we offer renewal with 93.9% retention in the fourth quarter.

本季總保費為 6,030 萬美元，成長 8.4%。本季保單保費增加了 4.7%，薪資審計和相關保費調整 480 萬美元進一步改善了這一情況。在 Amerisafe，我們繼續看到強勁的保留率和保單，我們為其提供續保，第四季度保留率為 93.9%。

For the full year, our accident year loss ratio was in line with the prior year at 71%. Company experienced $41.1 million of favorable development on prior accident years in 2023, which we attribute to lower claims severity and proactive claims handling. In addition, we ended the year with nine severe claims of those with case incurred in excess of $1 million.

全年而言，我們的事故年損失率與前一年持平，為 71%。2023 年，公司在先前的事故年份中實現了 4,110 萬美元的有利發展，我們將其歸因於較低的索賠嚴重程度和積極主動的索賠處理。此外，我們在年底還收到了 9 起嚴重索賠，案件金額超過 100 萬美元。

As of December 31, 2023, our open claim count was down 6.4% from 2022. This metric demonstrates the success of our focus on resolving and closing claims and the decline in reported claims. Our balance sheet is conservatively positioned with roughly $897 million in investments in cash, a solid reserve position and no outstanding debt. Despite challenging market conditions, our tenure, ensuring high hazard risk positions the Company for continued solid results.

截至 2023 年 12 月 31 日，我們的未決索賠數量較 2022 年下降了 6.4%。此指標顯示我們成功地專注於解決和結案索賠以及報告索賠的下降。我們的資產負債表定位保守，現金投資約 8.97 億美元，儲備狀況穩健，沒有未償債務。儘管市場條件充滿挑戰，但我們的任期確保了高危險風險，使公司能夠持續取得穩健的業績。

Amerisafe strong retention, coupled with our focus on profitable growth is delivering robust returns to our shareholders. Finally, as it relates to capital management, Amyris's Board of Directors has approved 8.8% increase in our regular dividend to $0.37.

Amerisafe 強大的保留能力，加上我們對獲利成長的關注，正在為我們的股東帶來豐厚的回報。最後，由於涉及資本管理，Amyris 董事會已批准將我們的定期股息增加 8.8% 至 0.37 美元。

With that, I'll turn the call over to Andy to discuss the financials.

這樣，我會將電話轉給安迪討論財務問題。

Thank you, Janelle, and good morning to everyone for the fourth quarter of 2023, Amerisafe reported net income of $19.2 million, or $1 per diluted share and operating net income of $14.3 million or $0.74 per diluted share. During the fourth quarter of 2022, net income was $20.8 million or $1.8 per diluted share and operating net income of $16.1 million or $0.84 per diluted share.

謝謝 Janelle，大家早安，Amerisafe 報告 2023 年第四季度淨利潤為 1,920 萬美元，即稀釋後每股收益 1 美元，營運淨利潤為 1,430 萬美元，即稀釋後每股收益 0.74 美元。2022 年第四季，淨利為 2,080 萬美元，即稀釋後每股 1.8 美元，營業淨利為 1,610 萬美元，即稀釋後每股 0.84 美元。

The lower net income was primarily driven by certain items in the quarter, driving the expense ratio higher as well as less tax exempt interest income driving a higher tax rate compared with the fourth quarter of 2022. For the full year, net income was $62.1 million and net operating income was $55.9 million compared with $55.6 million and $59.3 million in the prior year, respectively.

淨利潤下降主要是由於本季的某些項目導致費用率上升，以及免稅利息收入減少導致稅率高於 2022 年第四季。全年淨利為 6,210 萬美元，淨營業收入為 5,590 萬美元，而前一年分別為 5,560 萬美元及 5,930 萬美元。

Our total underwriting and other expenses were $19 million in the quarter, a 9% increase compared with the $17.4 million recognized in the prior year quarter. This increase resulted in an expense ratio of 28.9 compared with 26.4 in the fourth quarter of 2022.

本季我們的承保和其他費用總額為 1,900 萬美元，比去年同期的 1,740 萬美元增加 9%。這一增長導致費用比率為 28.9，而 2022 年第四季為 26.4。

The increase was primarily due to wage inflation and an increase in insurance related assessments. For the full year, the expense ratio was 29.3 compared with 26.5 in 2022. For the year our tax rate was 19.7% compared to 17.8% in the prior year, largely due to a lower proportion of tax-exempt income versus underwriting income in the quarter compared with the last year.

這一增長主要是由於工資上漲和保險相關評估的增加。全年費用率為29.3，而2022年為26.5。今年我們的稅率為 19.7%，而上年度為 17.8%，這主要是由於本季免稅收入與承保收入的比例低於去年。

Turning to our investment portfolio, in the fourth quarter, net investment income increased 5.7% to $8.1 million from $7.6 million in the prior year quarter. For the full year, net investment income was $31.3 million compared with $27.2 million in 2022. The increase was driven by the yield on new investments, which exceeded that of portfolio roll-off by product by approximately 200 basis points and drove the portfolio tax equivalent book yield to 3.69% or 31 basis points higher than the previous year.

談到我們的投資組合，第四季淨投資收入從去年同期的 760 萬美元成長 5.7% 至 810 萬美元。全年淨投資收入為 3,130 萬美元，而 2022 年為 2,720 萬美元。這一成長是由新投資收益率推動的，該收益率超出了按產品劃分的投資組合滾存收益率約200個基點，並推動投資組合稅收等值賬面收益率達到3.69%，比上年高出31個基點。

Realized gains for the portfolio on securities sold were $1.1 million in the quarter compared with $1 million during the fourth quarter of 2022. The investment portfolio is high quality carrying an average double A. minus credit rating with a duration of 4.2 years. The composition of the portfolio is 61% in municipal bonds, 25% in corporate bonds, 4% in US treasuries and agencies, 6% in equity securities, and 4% in cash and other investment.

本季出售證券投資組合的實現收益為 110 萬美元，而 2022 年第四季為 100 萬美元。此投資組合品質較高，平均信用評等為雙A.減，期限為4.2年。投資組合的構成為市政債佔61%，公司債佔25%，美國公債和機構公債佔4%，股本證券佔6%，現金及其他投資佔4%。

Approximately 60% of our bond portfolio is comprised of held-to-maturity securities. During the fourth quarter, interest rates moves notice noticeably lower which improved the net unrealized loss position of held to maturity securities to $10.5 million from $35.1 million in the third quarter. As a reminder, these held-to-maturity securities are carried at amortized cost and therefore, unrealized gains or losses on these securities are not reflected in our book value.

我們的債券投資組合中約 60% 由持有至到期證券組成。第四季度，利率明顯下降，持有至到期證券的未實現淨損失部位從第三季的 3,510 萬美元改善至 1,050 萬美元。提醒一下，這些持有至到期證券以攤餘成本計量，因此，這些證券的未實現收益或損失不會反映在我們的帳面價值中。

Our capital position is strong with a high-quality balance sheet for the for the year, the Company returned $93.3 million to shareholders through a combination of regular and special dividends, plus an additional $2.2 million of shares were repurchased.

我們的資本狀況強勁，今年的資產負債表品質很高，公司透過定期股息和特別股息向股東返還 9,330 萬美元，另外還回購了 220 萬美元的股票。

And finally, just a couple of other topics. Book value per share was $15 and $0.28 after paying the special dividend in December 2023 a decrease of 7.8% from year end 2022 an operating return on average equity was 17.4% for the quarter and 17.7% for the full year. Our statutory surplus was $254.9 million at year end, up from $252.5 million at the prior year-end. And finally, tomorrow, February 23rd, 2020 fourth, we will be filing our 10-K with the SEC after market close.

最後，還有其他幾個主題。2023 年 12 月支付特別股息後，每股帳面價值分別為 15 美元和 0.28 美元，較 2022 年底下降 7.8%，該季度平均股本營運回報率為 17.4%，全年為 17.7%。截至年底，我們的法定盈餘為 2.549 億美元，高於去年末的 2.525 億美元。最後，明天，即 2020 年 2 月 23 日，我們將在收盤後向 SEC 提交 10-K。

With that, I would like to open the call for the question and answer portion of the call. Operator?

至此，我想開始電話問答部分的通話。操作員？

(Operator Instructions) Matt Carletti, JMP Securities.

（操作員指令）Matt Carletti，JMP 證券。

Hey, good morning.

嗨，早安。

Good morning, Matt.

早安，馬特。

Maybe if I could start with the top line and specifically the voluntary premiums and you showed some modest growth. And I think you commented that policies in force also grew. And so the question is just can you give us a bit of color on are there certain geographies or kind of underlying sectors of the economy exposures that you have that you're seeing certain success with? Or is it more just broad-based?

也許如果我可以從收入開始，特別是自願保費，那麼您會出現一些適度的增長。我想你評論說現行政策也在成長。所以問題是，您能否給我們一些訊息，說明您是否在某些地區或某些潛在的經濟領域取得了一定的成功？或者它的基礎更廣泛？

I'll start with your question about geographies. I'll steer away a little bit from that, and I don't think I'm not directly answer your question, but for competitive reasons, I want to be careful about speaking about geographies that I feel like we're being more successful in at the moment or not. But I will say I think it's more broad-based, to be honest, Matt.

我將從你關於地理的問題開始。我會稍微偏離這一點，我認為我不會直接回答你的問題，但出於競爭原因，我想謹慎談論我認為我們正在更加成功的地區此刻是否在。但說實話，我認為它的基礎更廣泛，馬特。

We've talked a lot over the last few quarters about our internal focus on ease of doing business with our agents. You know, we've had really strong retention for a number of years, which we are very appreciative of and I think really speaks to the service level of the Amerisafe employees. At the same time, agents are trying to go shopping.

在過去的幾個季度中，我們多次討論了我們內部對與代理商開展業務的便利性的關注。您知道，多年來我們的員工留任率非常高，對此我們非常感激，我認為這確實體現了 Amerisafe 員工的服務水準。同時，代理商也在嘗試去採購。

New business does come at a fewer and fewer opportunities during this market where everyone's getting a rate decrease. So we really have been focusing on ease of doing business with our agents, streamlining processes, making sure we have the right workflows and just focusing on those agent relationships so that when the opportunities do present themselves from a new business perspective, we are at the ready.

在這個每個人的利率都在下降的市場中，新業務的機會確實越來越少。因此，我們確實一直專注於與代理商開展業務的便利性、簡化流程、確保我們擁有正確的工作流程並專注於這些代理商關係，以便當機會確實從新的業務角度出現時，我們就處於領先地位。準備好。

And I do think just a comment at a combination of those things happening over a period of time. We've been successful in growing some new business along with our strong retention, and you were spot on about the policy count, we were very excited that we were able to grow policy count in 2023.

我確實認為這只是對一段時間內發生的這些事情的綜合評論。我們已經成功地發展了一些新業務以及強大的保留率，而且您對保單數量的了解很準確，我們非常高興我們能夠在 2023 年增加保單數量。

Great. And then if I shift to your thinking about where kind of margins are in the business. And as we look forward, I mean, you mentioned frequency was down. I think I caught about a 6% number we know there's pressure on pricing, but we know there's wage inflation and that's good for margins.

偉大的。然後，如果我轉向你對業務利潤率的思考。當我們展望未來時，我的意思是，你提到頻率下降了。我想我發現了大約 6% 的數字，我們知道定價面臨壓力，但我們知道薪資上漲，這對利潤率有利。

I guess it was severity and there, too, I guess I guess I'm asking I look in your crystal ball a little bit and kind of how do you feel about sustainability of accident year margins when you kind of put all those pieces of the puzzle together and any other ones that I'm forgetting, you know that you had all the right elements and certainly we had the realities of multiple years of rate decreases.

我想這很嚴重，我想我想我問一下你的水晶球，當你把所有這些部分都放在一起時，你對事故年利潤的可持續性有何看法？一起拼圖以及我忘記的任何其他內容，您知道您擁有所有正確的要素，當然我們也面臨著多年利率下降的現實。

And I think if we look at 2024 for nothing on a macro basis, that seems to be changing that directionally, I feel I still think it's going to be higher single digit rate decreases going into 2024. And I like how Amerisafe is positioned because we are very disciplined in our approach in our underwriting approach and that we individually underwrite every single account that's built into that margin is built into how we are underwriting those accounts today and in our pricing on for those accounts, I feel really good about that from the loss perspective, you're absolutely right.

我認為，如果我們從宏觀角度看 2024 年，這似乎正在改變方向，我覺得我仍然認為 2024 年將出現更高的個位數下降。我喜歡 Amerisafe 的定位，因為我們的承保方法非常嚴格，我們單獨承保每個帳戶，保證金已納入我們今天承保這些帳戶的方式以及我們對這些帳戶的定價中，從損失的角度來看，我對此感覺非常好，你是絕對正確的。

Frequency is down. Frequency is down for the industry. Frequency is down for Amerisafe and which we are appreciative of. And but I keep in mind the things that we write are more severity driven than frequency driven. So severity has been relatively modest within our expectations there. Certainly a concern in the industry across the industry.

頻率下降了。該行業的頻率有所下降。Amerisafe 的頻率下降了，我們對此表示讚賞。但我記住，我們寫的東西更多的是嚴重性驅動而不是頻率驅動。因此，嚴重程度在我們的預期之內相對溫和。當然是整個產業都關心的問題。

Every article, you pick up some talks about medical inflation and concerns about medical inflation. But the credit in the industry right now, fee schedules are helping contain costs. I read an article recently that the CMS is predicting medical inflation to be somewhere between 2.5% and 3.5% going in 2024 in the years to come.

在每篇文章中，您都會了解一些有關醫療通膨的討論以及對醫療通膨的擔憂。但目前該行業的信用、收費標準正在幫助控製成本。最近我讀到一篇文章，CMS 預測未來幾年的醫療通膨率將在 2024 年達到 2.5% 至 3.5% 之間。

If the industry can hold on to that, that would be fantastic. But there's going to be pressure. No question on medical inflation. So I feel really, really good about our margins going forward because I know we're maintaining that discipline.

如果這個行業能夠堅持下去，那就太好了。但會有壓力。沒有關於醫療通膨的問題。因此，我對我們未來的利潤率感到非常非常滿意，因為我知道我們正在維持這種紀律。

Great. And then one last quick one, if I could. On the ELCM for the quarter?

偉大的。如果可以的話，然後是最後一個快速的。關於本季的 ELCM？

[146]

[146]

146. Thanks so much. Appreciate it.

146.非常感謝。欣賞它。

Thank you, Matt.

謝謝你，馬特。

Mark Hughes, Truist.

馬克‧休斯，真理主義者。

Yes, thanks. Good morning, Janelle. Good morning, Andy.

對了謝謝。早上好，珍妮爾。早安，安迪。

Good morning, Mark.

早上好，馬克。

So general frequency down 6%. And then I think did you say severity was within your expectations? Did you give a number for (multiple speakers)

所以一般頻率下降6%。然後我想你說嚴重程度是在你的預期之內嗎？您是否給出了號碼（多個發言者）

I did not. Build in our expectations built into the 71% that we've been carrying for accident year 2023.

我沒有。建立我們對 2023 年事故發生率的 71% 的預期。

If you've ever historically outlined your expectations on severities earnings, low single digit?

如果您曾經概述過您對嚴重性收入的預期，那麼低個位數？

But yes, we're thinking about it, Mark. I mean, if you think about it in terms again to or I was just talking amount of I think that in terms of medical inflation, we've always took a long-term approach to that and it has been mid-single digit range in terms of medical inflation and the other side of that is just how many -- given the types of injuries that we deal with, I don't know any in any given year, how many of those are going to be the horrific catastrophic claims.

但是，是的，我們正在考慮這個問題，馬克。我的意思是，如果你再次考慮一下，或者我只是談論了我認為就醫療通膨而言，我們一直採取長期方法來解決這一問題，並且一直處於中個位數範圍就醫療通膨而言，另一方面是有多少——考慮到我們所處理的傷害類型，我不知道在任何特定年份，其中有多少將是可怕的災難性索賠。

You know, I mentioned in my prepared remarks, we had nine claims with million in excess of million case incurred this year, which is a little bit lower than prior years. And so yes, I hate to go back to my favorite time when I'm talking about severe claims, but we're just in a lumpy business. I don't I don't know when the accident is going to happen or the severity of those accidents.

你知道，我在準備好的發言中提到，今年我們發生了九起索賠案件，索賠金額超過百萬件，比往年有所減少。所以，是的，我不想回到我最喜歡的時候，當我談論嚴重的索賠時，但我們只是在一個不穩定的業務中。我不知道事故什麼時候發生，也不知道事故的嚴重程度。

Did you have any movement in the reserves on the large accident that came at the end of 2022?

對於2022年底發生的重大事故，你們的儲備金有什麼動向嗎？

No, we have not or no, we have not. We are we still very comfortable with the reserves that we initially recorded for that claims.

不，我們沒有，或者說，我們沒有。我們仍然對我們最初為該索賠記錄的準備金感到非常滿意。

Yes, on the audit premium is holding in there pretty well. One might have thought with the economy slowing that would be papering a bit. Is there any in particular area you're seeing better audit premium?

是的，審計溢價保持得很好。人們可能會認為，隨著經濟放緩，這會有點紙上談兵。您在哪些特定領域看到了更好的審計溢價？

Mark, across our book. We're seeing strong audit opinion Media Week across our, but I can tell you we had about 7.4% of what I call payroll growth, 5.6% of that was wage growth. And if you look at the BLS data, I think the wage growth number projected lease for construction or maybe the Countrywide was 4.1% as of the last quarter. So we are running over slightly higher than that.

馬克，在我們的書上。我們在媒體週上看到了強烈的審計意見，但我可以告訴你，我們的薪資成長約為 7.4%，其中 5.6% 是薪資成長。如果你看一下美國勞工統計局的數據，我認為截至上個季度，建築業或全國範圍內的預計租賃工資增長率為 4.1%。所以我們的運行速度略高於這個數值。

That doesn't really surprise me giving the skilled labor jobs that we insure and we're still not seeing a large influx of new employees now what the labor market will do in 2024. I know that I don't know, but construction jobs are up that we feel pretty confident in that being a large part of our book of business that that should be pretty resilient in 2024.

為我們提供保障的熟練勞動力提供工作崗位，我並不感到驚訝，而且我們現在仍然沒有看到 2024 年勞動力市場將出現的大量新員工湧入。我知道我不知道，但建築工作正在增加，我們對此非常有信心，因為它是我們業務的很大一部分，到 2024 年應該會很有彈性。

Yes, I was going to ask you a question. You used the formulation of the kind of the next job, but sounds like you see construction holding in there pretty well, we do we do focus and was the 7.4% and 5.6% is that the fourth quarter or the full year?

是的，我正想問你一個問題。您使用了下一項工作的公式，但聽起來您認為建築業保持得很好，我們確實關注，7.4％和5.6％是第四季度還是全年？

That was fourth quarter and it was right in line with third quarter. If you recall, third quarter were 7.5% and two in line, not no real deterioration between the two quarters.

那是第四季度，與第三季度一致。如果你還記得的話，第三季的成長率為 7.5%，兩個季度的成長率一致，但這兩個季度之間並不是沒有真正的惡化。

Do you think the -- still projected loss cost going to be down high single digits again?

您認為仍然預期的損失成本會再次下降到高個位數嗎？

I do and again, that's Janelle's opinion, but I do is based on the things that we've seen come in, the approved loss costs that have already come in the door this year. And I do think that and I just don't see anything on a macro basis that's going to change that.

我再次強調，這是珍妮爾的觀點，但我的觀點是基於我們所看到的情況，即今年已經出現的批准的損失成本。我確實認為這一點，但我只是沒有看到任何宏觀基礎上會改變這一點。

I mean, we'll get into industry wide results in May and we'll see what that looks like. But just based on following other companies and their reporting, I don't think anyone's had any large surprises in terms of losses are concerned. I think we can all the things we worry about, but I haven't really seen in the results. I don't know that that will and change the perspective on loss costs.

我的意思是，我們將在五月公佈全行業的結果，然後看看結果如何。但僅根據對其他公司及其報告的跟踪，我認為沒有人對損失感到驚訝。我認為我們可以解決所有我們擔心的事情，但我還沒有真正看到結果。我不知道這會改變對損失成本的看法。

You mentioned the growth being helped by your ease of doing business. Anything on the competitive front or your change in your own appetite in terms of and market class codes, anything like that?

您提到業務的便利性有助於實現成長。競爭方面有什麼變化，或者您對市場等級代碼的興趣發生了變化，類似的事情嗎？

No. I appreciate the clarity on that. No, we really we have not changed our underwriting approach. We have not changed our mix of business. We haven't changed our risk tolerance. This is really just about trying to further our relationships with our agents.

不。我很欣賞這一點的明確性。不，我們確實沒有改變我們的核保方式。我們沒有改變我們的業務組合。我們沒有改變風險承受能力。這其實只是為了進一步加深我們與代理商的關係。

Yes, yes. Okay. On yes, I think that was good for me. Appreciate it.

是的是的。好的。是的，我認為這對我有好處。欣賞它。

Thank you, Mark.

謝謝你，馬克。

Bob Farnam, Janney.

法納姆、珍妮.

Good morning. I have additional questions on the approved loss costs. So this year you've got Florida down 15%. You have a change coming up of Louisiana down 9% or so. I'm curious due to the classes of business that you write, are they are they comparable to the overall the statewide averages or are they better or worse in terms of lost cause?

早安.我對批准的損失費用還有其他疑問。所以今年佛羅裡達州的房價下跌了 15%。路易斯安那州即將發生變化，下降 9% 左右。我很好奇您所寫的業務類別，它們是否與全州平均水平相當，或者在損失原因方面是更好還是更差？

I think that that's a really good point, Bob. They are they run a run our book of business sometimes varies a little higher, sometimes a little lower. But on average, I think using the industry-wide, if you're trying to fill out, I think using the industry right approved loss costs it does track with our own experience.

我認為這是一個很好的觀點，鮑伯。他們經營我們的業務，有時會高一點，有時低一點。但平均而言，我認為使用整個行業，如果你想填寫，我認為使用行業正確批准的損失成本，它確實可以根據我們自己的經驗進行追蹤。

Okay. This is probably more of a kind of a philosophical question, but as the as the approved loss costs continue to go down at some point, they're going to go beyond where they should go down. So you're going to have kind of the inflection point, I believe. So, yes, how can you ensure that your strong profitability remains if kind of the underlying loss costs have gone too far?

好的。這可能更像是一個哲學問題，但隨著批准的損失成本在某個時候繼續下降，它們將超出應下降的範圍。所以我相信你將會遇到某種轉折點。那麼，是的，如果潛在的損失成本過高，您如何確保保持強勁的獲利能力？

It goes back to what I was saying earlier. The fact that we are individually underwriting our accounts and we go and we have we've had a very consistent book of business for a long period of time. So I think my underwriters have a true expertise in understanding how much rate or how much how many dollars of payroll we need to cover our loss and to cover and cover the margin that we want in that individual book of business.

這又回到了我之前所說的。事實上，我們單獨承保我們的帳戶，並且我們在很長一段時間內擁有非常一致的業務記錄。因此，我認為我的承銷商擁有真正的專業知識，能夠了解我們需要多少費率或多少美元的工資來彌補我們的損失，並彌補我們在個別業務中想要的利潤。

Hence why we always trying to report the we had been reporting the OCM. It was just trying to give you a measure. It's not absolute cost, but the fact that we were not chasing that 10%, 20% -- or 10%, 15% down in terms of the rate that that is the approved rate. I think we have the expertise to understand that rate per $100 of payroll and what it takes and for an individual risk, but it were higher were highly relying on our expertise versus the industry wide averages.

因此，為什麼我們總是試圖報告我們一直在報告的 OCM。它只是想給你一個衡量標準。這不是絕對成本，而是事實上我們並沒有追求批准率下降 10%、20% 或 10%、15%。我認為我們擁有專業知識來了解每 100 美元工資的利率及其所需的費用以及個人風險，但與行業平均水平相比，高度依賴我們的專業知識的利率更高。

Right. Just refresh my memory, the CECE -- the ELCM, does that include or not include kind of scheduled credits and debits?

正確的。請刷新我的記憶，CECE - ELCM，這是否包括某種預定的貸項和借項？

The ELCM would include that. So it's sort of the aggregate. If I take all my faith and aggregated it together, it would be inclusive of that.

ELCM 將包括這一點。所以這是一種聚合。如果我把我所有的信仰聚集在一起，它就會包含在內。

Yes, that's what I thought. Okay. Thank you.

是的，我就是這麼想的。好的。謝謝。

Thank you, Bob.

謝謝你，鮑伯。

It appears there are no further telephone questions. I'd like to turn the conference back over to Ms. Frost for any additional or closing comments.

看來沒有進一步的電話問題了。我想將會議轉回給弗羅斯特女士徵求任何補充意見或結束意見。

Thank you for joining us today. We are pleased with both the quarter and full year results reported. These results are reflective of the dedication of Amerisafe employees to fulfilling commitments to our policyholders, agents and shareholders. Our belief, I believe our consistent returns year in and year out clearly reflect our unwavering focus on turning risks and the opportunity.

感謝您今天加入我們。我們對季度和全年報告的業績感到滿意。這些結果反映了 Amerisafe 員工致力於履行對保單持有人、代理人和股東的承諾。我們的信念，我相信我們年復一年穩定的回報清楚地反映了我們對轉變風險和機會的堅定不移的關注。

And once again, that does conclude today's conference. We thank you all for your participation. You may now disconnect.

今天的會議再次結束。我們感謝大家的參與。您現在可以斷開連線。