A.M. Best Revises Outlook to Positive for AMERISAFE, Inc. and Its Operating Subsidiaries

A.M. Best Co. has revised the outlook to positive from stable and affirmed the issuer credit rating (ICR) of "bbb-” and debt ratings of AMERISAFE, Inc (Texas) (NASDAQ: AMSF). Concurrently, A.M. Best has revised the outlook to positive from stable and affirmed the financial strength rating (FSR) of A- (Excellent) and ICRs of "a-” of Amerisafe Insurance Group (Amerisafe). Amerisafe includes American Interstate Insurance Company, Silver Oak Casualty, Inc. and American Interstate Insurance Company of Texas (Austin, TX), which are operating subsidiaries of AMERISAFE, Inc. All companies are domiciled in DeRidder, LA, unless otherwise specified. (See below for a detailed listing of the ratings.)

The ratings reflect Amerisafe’s excellent risk-adjusted capitalization and the sustained continued improvement in its underwriting and operating results. The ratings also reflect the increased stability within Amerisafe’s loss reserves in recent years and its strong market presence within its niche workers’ compensation market for high hazard risks.

These positive factors are somewhat offset by the group’s product concentration and historical adverse loss reserve development, which has caused volatility in operating results and capital generation. To offset the deterioration in operating performance, management implemented numerous corrective actions designed to return the group to profitability and stabilized its earnings. The rating outlook recognizes A.M. Best’s expectation that Amerisafe’s improvement in underwriting and operating results will be sustained over the near term, and capitalization will remain well supportive of the ratings.

The following debt ratings have been affirmed:

AMERISAFE, Inc.—

--"bb” on $5 million convertible preferred stock, series C

--"bb” on $20 million convertible preferred stock, series D

--"bb” on $25.8 million subordinated trust preferred securities, due 2033

--"bb” on $10.3 million subordinated trust preferred securities, due 2034

For Best’s Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.