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 27, 2014

A.M. Best 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). 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 solid level of risk-adjusted
capitalization, consistently sound operating performance and its established
presence and experience in the workers’ compensation market for high hazard
risks. Amerisafe’s operating results have outperformed its peer composite over
the long term, driven by its solid underwriting results. Those underwriting
results are derived from management’s adherence to prudent 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.

These positive rating factors are somewhat offset by Amerisafe’s product
concentration and pockets of adverse loss reserve development on an accident
year basis, which caused earnings volatility in the 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. Best’s Credit Rating Methodology can be found at

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 © 2014 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.


A.M. Best
Brian O’Larte, 908-439-2200, ext. 5138
Senior Financial Analyst
Jennifer Marshall, 908-439-2200, ext. 5327
Assistant Vice President
Rachelle Morrow, 908-439-2200, ext. 5378
Senior Manager, Public Relations
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
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