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. (headquartered in DeRidder, LA) (NASDAQ:AMSF), the ultimate parent of the group members. The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect AMERISAFE Insurance Group's balance sheet strength, which AM Best assesses as very strong, 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 a strategically conservative and liquid investment portfolio. Policyholder surplus growth has been constrained by stockholder dividends in recent years; stockholder dividends are used as a strategic capital management tool within the group. The group writes workers' compensation (WC) coverages for small- and medium-sized companies in high hazard industries, with all group members operating under an intercompany pooling arrangement.

AMERISAFE Insurance Group's management has developed and strictly adheres to prudent underwriting practices and pricing discipline. This expertise in the group's high hazard market niche continues to produce underwriting and overall operating results that consistently outperform AM Best's WC composite metrics over the long term. 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 use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments.

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.

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AM Best Affirms Credit Ratings of AMERISAFE, Inc. and Its Operating Subsidiaries