MARCH 20, 2015 08:44 AM (EDT)

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

FOR IMMEDIATE RELEASE

OLDWICK - MARCH 20, 2015 08:44 AM (EDT)
A.M. Best has affirmed the financial strength rating of A (Excellent) and the issuer credit ratings (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). These companies are property/casualty subsidiaries of AMERISAFE, Inc. [NASDAQ: AMSF]. Concurrently, A.M. Best has affirmed the ICR of "bbb" of AMERISAFE, Inc. The outlook for all ratings is stable. All companies are headquartered in DeRidder, LA, unless otherwise specified.

These rating actions reflect Amerisafe's sound level of risk-adjusted capitalization, consistently profitable operating performance and its established position and experience in the workers' compensation market for high hazard risks. Driven by solid underwriting results, Amerisafe produces operating results that continue to outperform its peer composite average over the long term. Management's adherence to prudent underwriting practices and pricing discipline, consistent reserving practices that have resulted in favorable calendar-year loss reserve development trends, focused loss control and safety programs and active claims management are the basis for the favorable underwriting results.

These positive rating factors are somewhat offset by Amerisafe's product concentration and earnings volatility in earlier years that resulted from adverse development of several accident years. The stable outlook reflects A.M. Best's expectation that operating results will remain strong, resulting in continued solid capitalization that is well supportive of Amerisafe's ratings.

While the ratings for Amerisafe are stable, future positive rating actions may result from its continued strong underwriting and operating performance. However, negative rating actions could result if operating performance or risk-adjusted capitalization falls markedly short of A.M. Best's expectations.

The methodology used in determining these ratings is Best's Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best's rating process and contains the different rating criteria employed in the rating process. Best's Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.

Key insurance criteria reports utilized:

• Analyzing Insurance Holding Company Liquidity


• Catastrophe Analysis in A.M. Best Ratings


• Insurance Holding Company and Debt Ratings


• Rating Members of Insurance Groups


• Risk Management and the Rating Process for Insurance Companies


• The Treatment of Terrorism Risk in the Rating Evaluation


• Understanding BCAR for Property/Casualty Insurers


• Understanding Universal BCAR

This press release relates to rating(s) 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 visit A.M. Best's Ratings & Criteria Center .

A.M. Best Company is the world's oldest and most authoritative insurance rating and information source.