AM Best Affirms Credit Ratings of AMERISAFE, Inc. and Its Operating Subsidiaries
OLDWICK, N.J.--(BUSINESS WIRE)--Jun 24, 2021--
AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a+” (Excellent) 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+” (Good) 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 assesses as strongest, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.
AMERISAFE Insurance Group’s balance sheet strength assessment is supported by its strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), historically prudent loss reserving, and its strategically conservative and liquid investment portfolio. The group writes workers’ compensation coverages for small- and medium-size 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 generate underwriting and overall operating results that consistently outperform AM Best’s 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.
This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
Copyright © 2021 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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KEYWORD: EUROPE UNITED STATES NORTH AMERICA NEW YORK NEW JERSEY
INDUSTRY KEYWORD: INSURANCE PROFESSIONAL SERVICES
SOURCE: AM Best
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PUB: 06/24/2021 01:05 PM/DISC: 06/24/2021 01:06 PM