AM Best Affirms Credit Ratings of AMERISAFE, Inc. and Its Operating Subsidiaries
- September 10, 2026 10:17 AM (EDT)
//BestWire// - AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a+” (Excellent) of American Interstate Insurance Company (Omaha, NE), Silver Oak Casualty, Inc. (Omaha, NE) and American Interstate Insurance Company of Texas (Austin, TX) (collectively referred to as AMERISAFE Insurance Group). Concurrently, AM Best has affirmed the Long-Term ICR of “bbb+” (Good) of AMERISAFE, Inc. (headquartered in DeRidder, LA) [NASDAQ: AMSF], the ultimate parent of the group members. The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect AMERISAFE Insurance Group’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.
The group’s balance sheet strength continues to be assessed at the very strong level, supported by the strongest level of risk adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), conservative investment portfolio and redundant calendar- and accident-year loss reserve development. AMERISAFE Insurance Group’s surplus levels have been constrained by capital management initiatives at the holding company, AMERISAFE Inc. Shareholder dividend distributions, some of which have been considered extraordinary, have been enabled through historical excess capital accumulation and favorable operating earnings. Overall, surplus levels have declined in recent years, resulting in elevated net leverage metrics compared with the workers’ compensation composite. The balance sheet strength assessment is bolstered by consistent favorable loss reserve development in each of the last 10 years.
AMERISAFE Insurance Group’s operating performance continues to be assessed as strong. The group has reported favorable underwriting and return on equity metrics when compared with similarly assessed peers in the workers’ compensation composite. Strict pricing and conservative risk selection have held solid despite decreasing rate trends. Redundant calendar-year loss reserves continue to favorably impact loss and loss adjustment expenses incurred. In recent years, top-line revenue growth has been achieved through increased marketing activities and deepening relationships with agency distribution.
The group provides workers’ compensation coverage primarily to small- and medium-sized employers in high hazard industries across the United States. Management’s specialized knowledge of these hazardous industries helps the group manage the business efficiently and provide value-added services to its policyholders, as evidenced by high retention rates.
The stable outlooks reflect the expectation that the group’s balance sheet strength assessment will be maintained at the strongest level of risk-adjusted capitalization through prospective surplus growth and consistently redundant loss reserves. Strong operating performance is expected to remain driven by management’s strict underwriting discipline, proactive claims management approach, and efficient operating model.
This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings (BCR), Best’s Performance Assessments (PA), Best’s Preliminary Credit Assessments (PCA) and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.