A.M. Best Affirms Credit Ratings of AMERISAFE, Inc. and Its Operating Subsidiaries

A.M. Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a” of American Interstate Insurance Company, Silver Oak Casualty, Inc. and American Interstate Insurance Company of Texas (Austin, TX) (collectively referred to as AMERISAFE Insurance Group or the group). The outlook of the FSR remains stable, while the outlook of the Long-Term ICRs remains positive.

Concurrently, A.M. Best has affirmed the Long-Term ICR of “bbb” of AMERISAFE, Inc. [NASDAQ:AMSF], the ultimate parent of the group members. The outlook of the Credit Rating (rating) remains positive. All companies are headquartered in DeRidder, LA, unless otherwise specified.

The ratings reflect AMERISAFE Insurance Group’s strong balance sheet, consistently profitable operating performance, and its established position and expertise in the workers’ compensation market for small- to mid-size companies with high hazard risks. Driven by solid underwriting results, AMERISAFE Insurance Group consistently produces positive operating results that outperform the workers’ compensation composite averages over the long term. Management’s strict adherence to prudent underwriting practices and pricing discipline, along with consistent reserving practices, have resulted in favorable calendar-year loss reserve development trends.

These positive rating factors are offset somewhat by the group’s product concentration, decline in the premium base and the challenge to grow investment income in a low interest rate environment. The positive outlook reflects A.M. Best’s expectation that the group’s operating results will remain strong, resulting in continued solid risk-adjusted capitalization.

Positive rating action may result from the group’s continued profitable underwriting and operating performance, along with maintenance of solid risk-adjusted capitalization. However, negative rating action could result if an unfavorable performance trend were to develop, or if there is a significant deterioration in risk-adjusted capitalization.

This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings.

A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

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