OLDWICK: AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a+” of American Interstate Insurance Company (Omaha, NE), Silver Oak Casualty, Inc. (Omaha, NE) and American Interstate Insurance Company of Texas (Austin, TX) (collectively referred to as AMERISAFE Insurance Group or the group). Concurrently, AM Best has affirmed the Long-Term ICR of “bbb+” of AMERISAFE, Inc. [NASDAQ: AMSF], the ultimate parent of the group members.
The outlook of these Credit Ratings (ratings) is stable. All companies are headquartered in DeRidder, LA, unless otherwise specified.
The ratings reflect AMERISAFE Insurance Group’s balance sheet strength, which AM Best categorizes as strongest, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.
AMERISAFE Insurance Group continues to maintain risk-adjusted capitalization at the strongest level, supported by a conservative and liquid investment portfolio. The group writes workers’ compensation coverages for small- and medium-sized companies in high hazard industries, with all group members operating under an intercompany pooling arrangement.
The group’s expertise in its high hazard market niche continues to result in underwriting and overall operating results that consistently outperform the workers’ compensation composite metrics over the long term. Management has developed and strictly adheres to prudent underwriting practices and pricing discipline.
Furthermore, the group’s consistent reserving practices have resulted in favorable loss reserve development trends. Potential terrorism exposure is managed by purchasing appropriate reinsurance coverage with very little reliance on the Terrorism Risk Insurance Program Reauthorization Act (TRIPRA) of 2019 federal backstop.
AMERISAFE, Inc. is an insurance holding company and its rating reflects the subordination of its senior most creditors to those of the insurance operating companies.