DERIDDER, LA., – (PRNewswire-FirstCall) – AMERISAFE, Inc. (Nasdaq: AMSF), a specialty writer of hazardous workers’ compensation insurance, today announced the signing of a letter of intent to acquire the workers’ compensation business of Cooperative Mutual Insurance Company. Effective January 1, 2011, all workers’ compensation policies written by Cooperative Mutual will be assumed by American Interstate Insurance Company, a subsidiary of AMERISAFE, Inc. These policies will be serviced by Cooperative Insurance Agency, a wholly owned subsidiary of Cooperative Mutual. Additionally, AMERISAFE will obtain the renewal rights to these policies, which represent approximately $8 million of in-force premium, and which will be produced and serviced by Cooperative Insurance Agency and its partner independent agencies.
C. Allen Bradley, Jr., AMERISAFE’s CEO, commented, “We are enthusiastic about this strategic relationship with Cooperative Mutual and the opportunity to broaden our exposure to the farmers’ cooperative business. Agriculture is our third largest insured category, after construction and trucking. We think this is business we can seamlessly fold into our current operations, insofar as it is generally underwritten to our standards, is located in states in which we are already doing business, and benefits from Cooperative Mutual’s experience and knowledge of this sector.”
“We are pleased to have such a respected, reliable and financially stable partner to address our workers’ compensation capacity needs,” remarked Doug Derscheid, Chairman of the Board of Cooperative Mutual. “This transaction is critical to the success of our pending merger with Austin Mutual and will pave the way for increased policyholder security in the future,” added CEO Jeffrey B. Kusch.
AMERISAFE, Inc. is a specialty provider of workers’ compensation insurance focused on small to mid-sized employers engaged in hazardous industries, principally construction, trucking and agriculture. AMERISAFE actively markets workers’ compensation insurance in 30 states and the District of Columbia.
About Cooperative Mutual
Cooperative Mutual of Omaha, Nebraska is licensed in 24 states and writes approximately $26 million in commercial property/casualty and workers’ compensation direct written premium throughout the Midwest. For 75 years, Cooperative Mutual has been providing insurance solutions for agribusiness and is focused on safety through state of the art loss control services provided to all of its policyholders
Forward Looking Statements
Statements made in this press release that are not historical facts, including statements accompanied by words such as “will,” “believe,” “anticipate,” “expect,” “estimate,” or similar words are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding AMERISAFE’s plans and performance. These statements are based on management’s estimates, assumptions and projections as of the date of this release and are not guarantees of future performance. Actual results may differ materially from the results expressed or implied in these statements as the results of risks, uncertainties and other factors including, but not limited to, the factors set forth in the Company’s filings with the Securities and Exchange Commission, including AMERISAFE’s Annual Report on Form 10-K for the year ended December 31, 2009. AMERISAFE cautions you not to place undue reliance on the forward-looking statements contained in this release. AMERISAFE does not undertake any obligation to publicly update or revise any forward-looking statements to reflect future events, information or circumstances that arise after the date of this release.
Contacts: G. Janelle Frost, EVP & CFO
Ken Dennard, Managing Partner
Karen Roan, Sr.VP
DRG&L / 713-529-6600
SOURCE AMERISAFE, Inc.
CONTACT: G. Janelle Frost, EVP & CFO of AMERISAFE, Inc., +1-337-463-9052; or Ken Dennard, Managing Partner, or Karen Roan, Sr.VP, both of DRG&L, +1-713-529-6600, for AMERISAFE, Inc.
Web Site: http://www.amerisafe.com