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



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

Business Wire

OLDWICK, N.J. -- March 28, 2013

A.M. Best Co. has affirmed the financial strength rating of A (Excellent) and
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), all 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 excellent capitalization, strong
operating profitability (which has outperformed its peer composite over the
long term) and its established market presence and experience operating in the
workers’ compensation market for high hazard risks. Amerisafe’s sound
operating performance has been driven by its solid underwriting results, which
are derived from management’s adherence to prudent practices and pricing
discipline, focused loss control and safety programs and active claims
management, which have resulted in favorable calendar year reserve development
trends over the current five-year period.

These positive rating factors are somewhat offset by Amerisafe’s product
concentration and pockets of adverse loss reserve development on a calendar
and accident year basis, which caused earnings volatility in earlier 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. Key criteria utilized include: “Risk Management and the Rating
Process for Insurance Companies”; “Catastrophe Analysis in A.M. Best Ratings”;
“Rating Members of Insurance Groups”; “The Treatment of Terrorism Risk in the
Rating Evaluation”; “Understanding BCAR for Property/Casualty Insurers”; and
“Insurance Holding Company and Debt Ratings.” Best’s Credit Rating Methodology
can be found at www.ambest.com/ratings/methodology.

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

       Copyright © 2013 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

Contact:

A.M. Best Co.
Brian O’Larte, 908-439-2200, ext. 5138
Senior Financial Analyst
brian.o’larte@ambest.com
or
Jennifer Marshall, 908-439-2200, ext. 5327
Managing Senior Financial Analyst
jennifer.marshall@ambest.com
or
Rachelle Morrow, 908-439-2200, ext. 5378
Senior Manager, Public Relations
rachelle.morrow@ambest.com
or
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
james.peavy@ambest.com
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