A.M. Best Co. has upgraded the financial strength rating to A (Excellent) from A- (Excellent) and issuer credit ratings (ICR) to “a” from “a-” of DeRidder, La.-based Amerisafe Insurance Group (Amerisafe) and its pool members.
Amerisafe includes American Interstate Insurance Company, Silver Oak Casualty Inc. and American Interstate Insurance Company of Texas (Austin, Texas).
Concurrently, A.M. Best has upgraded the ICR to “bbb” from “bbb-” and debt ratings to “bb+” from “bb” of Amerisafe Inc. The outlook for all ratings has been revised to stable from positive.
These rating actions reflect Amerisafe’s excellent capitalization, strong operating profitability, which has outperformed the peer composite over the long term, and the group’s established market presence and experience operating in a workers’ compensation market for high hazard risks.
Amerisafe’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 calendar year reserve development trends in recent years.
These positive rating factors are somewhat offset by Amerisafe’s product concentration and pockets of adverse loss reserve development, which caused earnings volatility in earlier years.
The stable outlook reflects A.M. Best’s expectation that operating results will remain strong and will contribute towards maintaining solid capitalization that is well supportive of Amerisafe’s ratings.
Source: A.M. Best
Topics AM Best
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