Oldwick, NJ -(BusinessWire)- A.M. Best has upgraded the Long-Term Issuer Credit Ratings (Long-Term ICR) to “a+” from “a” and affirmed the Financial Strength Rating (FSR) of A (Excellent) of American Interstate Insurance Company, Silver Oak Casualty, Inc. and American Interstate Insurance Company of Texas (Austin, TX) (collectively referred to as AMERISAFE Insurance Group or the group). The outlook of the Long-Term ICR has been revised to stable from positive while the outlook of the FSR remains stable.
Concurrently, A.M. Best has upgraded the Long-Term ICR to “bbb+” from “bbb” of AMERISAFE, Inc. [NASDAQ: AMSF], the ultimate parent of the group members. The outlook of the parent’s Long-Term ICR also has been revised to stable from positive. All companies are headquartered in DeRidder, LA unless otherwise specified.
These Credit Ratings (ratings) reflect AMERISAFE’s balance sheet strength, which A.M. Best categorizes as strongest, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.
The upgrade of the Long-Term ICRs further considers the group’s expertise in the workers’ compensation market for small and medium size companies in high hazard industries. The members of the group operate under an intercompany pooling arrangement. The group has generated solid underwriting and overall operating results, which have outperformed the workers’ compensation composite over the long term. Management’s strict adherence to prudent underwriting practices and pricing discipline, along with consistent reserving practices, have resulted in favorable calendar-year loss reserve development trends.
AMERISAFE Inc. is an insurance holding company and its rating reflects the subordination of its senior most creditors to those of the insurance operating companies.
Negative rating pressure could result if an unfavorable performance trend develops or if there is a significant deterioration in risk-adjusted capitalization.
This press release relates to Credit Ratings that have been published on A.M. 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 A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media – Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
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