OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has revised the issuer credit rating (ICR) outlook to positive from stable and affirmed the financial strength rating (FSR) of A (Excellent) and 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). The outlook for the FSR remains stable. These companies are the property/casualty subsidiaries of AMERISAFE, Inc. (NASDAQ:AMSF). Concurrently, A.M. Best has revised the outlook to positive from stable and affirmed the ICR of “bbb” of AMERISAFE, Inc. 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.
Overall, the rating outlook recognizes A.M. Best’s expectation that Amerisafe’s improvement in underwriting and operating results will continue over the near term, and capitalization will remain well supportive of the ratings.
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 see A.M. Best’s Recent Rating Activity web page.
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