A.M. Best Co. has affirmed the financial strength rating of A (Excellent) and issuer credit ratings (ICR) of “a” of property/casualty subsidiaries of Amerisafe Inc., headquartered in DeRidder, La. — American Interstate Insurance Co., Silver Oak Casualty Inc. and American Interstate Insurance Co. of Texas, based in Austin, Texas.
A.M. Best also affirmed the ICR of “bbb” and debt rating of “bb+” of Amerisafe Inc.
The outlook for all ratings is stable.
All companies are headquartered in DeRidder, La., unless otherwise specified.
These rating actions reflect Amerisafe’s excellent capitalization, strong operating profitability, which has outperformed its peer composite over the long term, and the group’s established market presence and experience operating in the workers’ compensation market for high hazard risks.
Amerisafe’s solid operating performance has been driven by its strong underwriting results, which are driven by management’s adherence to prudent practices and pricing discipline, focused loss control and safety programs and active claims management, which have resulted in favorable calendar year reserve development trends over the current five-year period.
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, resulting in continued solid capitalization that is well supportive of Amerisafe’s ratings.
Topics Louisiana
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