A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) and issuer credit ratings (ICR) of “a-” of DeRidder, La.-based Amerisafe Insurance Group (Amerisafe) and its members.
Amerisafe includes American Interstate Insurance Company, Silver Oak Casualty Inc. and American Interstate Insurance Company of Texas in Austin, Texas.
A.M. Best also affirmed the ICR of “bbb-” and debt ratings of Amerisafe.
The outlook for all ratings is positive.
The ratings reflect Amerisafe’s excellent capitalization, strong operating profitability, which outperforms the group’s peer composite over the long term, its established market presence and experience operating as a workers’ compensation market for high hazard risks. The group’s solid operating performance has been driven by its strong underwriting results given management’s adherence to prudent underwriting and pricing discipline, focused loss control and safety programs and active claims management, which have allowed for favorable reserve development trends in recent years.
These positive factors are somewhat offset by Amerisafe’s product concentration and historical adverse loss reserve development, which caused earnings volatility in earlier years. The positive rating outlook reflects A.M. Best’s expectation that strong underwriting and operating results will be sustained over the near term, and capitalization will remain well supportive of Amerisafe’s ratings.
Source: A.M. Best
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