AMERISAFE | research notes

AMERISAFE: A Premier Provider of Workers' Compensation Insurance

Introduction

AMERISAFE is a leading national workers' compensation insurance company headquartered in Roswell, Georgia. With a rich history spanning over 70 years, AMERISAFE has consistently provided comprehensive insurance solutions to businesses of all sizes across the United States.

History and Vision

Founded in 1951, AMERISAFE initially served the trucking industry. However, over the decades, the company expanded its reach to cater to a wide range of industries, including construction, manufacturing, healthcare, and hospitality. AMERISAFE's vision is to be the most admired workers' compensation insurance company in the industry.

Comprehensive Insurance Coverage

AMERISAFE offers a comprehensive suite of workers' compensation insurance policies designed to meet the unique needs of businesses. These policies include:

• Medical and Indemnity Benefits: Provide coverage for medical expenses, lost wages, and other expenses related to work-related injuries or illnesses.
• Rehabilitation Services: Help injured workers recover and return to work as quickly and safely as possible.
• Claims Advocacy: Provide legal representation and support to businesses in defending workers' compensation claims.
• Safety and Risk Management: Offer comprehensive safety and loss control programs to help businesses minimize risks and reduce workplace accidents.

Customer-Focused Approach

AMERISAFE places a strong emphasis on customer service. The company's experienced and knowledgeable agents work closely with businesses to tailor insurance solutions that meet their specific needs. AMERISAFE also provides a dedicated claims team that promptly and efficiently handles all claims.

Financial Stability and Reputation

AMERISAFE is a financially stable and highly respected insurance company. It has consistently maintained strong financial ratings from leading rating agencies such as A.M. Best, Moody's, and Standard & Poor's. The company's strong reputation in the industry reflects its commitment to providing reliable insurance coverage and exceptional customer service.

Corporate Responsibility

AMERISAFE is committed to being a responsible corporate citizen. The company actively supports numerous community organizations and programs that promote workplace safety, education, and health initiatives. AMERISAFE also maintains a strong environmental stewardship program, focusing on reducing its carbon footprint and promoting sustainability.

Conclusion

AMERISAFE is a trusted and reputable provider of workers' compensation insurance solutions. With a comprehensive range of coverage options, a customer-focused approach, and a commitment to financial stability, AMERISAFE provides businesses with the confidence and support they need to protect their employees and safeguard their operations.

AMERISAFE Business Model

AMERISAFE is a property and casualty insurance carrier specializing in workers' compensation coverage for small to mid-sized businesses. Its business model is based on four key components:

• Workers' Compensation Insurance: AMERISAFE offers comprehensive workers' compensation insurance policies that cover employers' liability for workplace injuries and illnesses.
• Safety and Risk Management Services: AMERISAFE provides a suite of safety and risk management programs to help businesses prevent accidents and reduce claims costs.
• Claims Management: AMERISAFE has a dedicated team of claim adjusters who handle claims quickly and efficiently, ensuring that injured workers receive prompt medical care and disability benefits.
• Personalized Service: AMERISAFE assigns each policyholder a dedicated underwriter, claim adjuster, and safety consultant to provide personalized support and guidance.

Advantages to Competitors

AMERISAFE has several competitive advantages over its competitors:

• Focus on Small and Mid-Sized Businesses: AMERISAFE specifically targets small to mid-sized businesses, which often face unique insurance needs. This allows the company to tailor its products and services to these businesses' specific requirements.
• Strong Safety and Risk Management Programs: AMERISAFE's safety and risk management programs are highly regarded in the industry and help businesses reduce workplace accidents and injuries. By investing in accident prevention, AMERISAFE can minimize insurance costs for its policyholders.
• Efficient Claims Management: AMERISAFE's dedicated claim team provides prompt and comprehensive claims service, ensuring that injured workers receive the benefits they need quickly.
• Personalized Service: AMERISAFE's personalized service approach builds strong relationships with its policyholders, leading to high customer satisfaction and retention rates.
• Financial Strength: AMERISAFE has a strong financial foundation, with an A+ rating from A.M. Best, which gives policyholders confidence in the company's ability to fulfill its obligations.
• Industry Expertise: AMERISAFE has over 60 years of experience in the workers' compensation insurance industry, giving it a deep understanding of the market and the needs of its customers.

AMERISAFE Outlook

Overview

AMERISAFE, Inc. is a workers' compensation insurance provider in the United States. It specializes in providing coverage to small and medium-sized businesses in high-hazard industries such as construction, manufacturing, and transportation.

Financial Performance

• Revenue: AMERISAFE's total revenue in 2022 was $2.2 billion, an increase of 12.2% year-over-year.
• Net Income: The company reported a net income of $185.9 million in 2022, a 20.4% increase from the previous year.
• Combined Ratio: AMERISAFE's combined ratio, which measures underwriting profitability, was 99.6% in 2022, indicating a marginal underwriting loss.

Market Position

• Market Share: AMERISAFE is a top-10 workers' compensation insurer in the United States, with a market share of approximately 2%.
• Target Market: The company focuses on small and medium-sized businesses in industries with high workers' compensation risks.

Growth Strategy

• Organic Growth: AMERISAFE plans to grow organically by expanding its product offerings, enhancing its technology, and strengthening relationships with agents and brokers.
• Acquisitions: The company has a history of making strategic acquisitions to expand its geographic reach and customer base.

Competitive Advantages

• Specialized Expertise: AMERISAFE's deep understanding of high-hazard industries and its specialized risk management programs give it an advantage over competitors.
• Strong Relationships: The company has long-standing relationships with agents and brokers, which contribute to its distribution network.
• Financial Strength: AMERISAFE's solid financial position provides stability and allows for underwriting flexibility.

Outlook for 2023 and Beyond

Analysts expect AMERISAFE to continue its positive growth trajectory in 2023 and beyond. Key factors supporting this outlook include:

• Continued demand for workers' compensation coverage in high-hazard industries
• Potential for rate increases due to rising claim costs
• The company's strong competitive position and growth initiatives

Risks and Challenges

• Economic Downturn: A downturn in the economy could reduce demand for workers' compensation coverage.
• Increased Competition: The workers' compensation insurance market is highly competitive, and AMERISAFE faces competition from both established insurers and new entrants.
• Regulatory Changes: Changes in workers' compensation laws and regulations could impact AMERISAFE's business and profitability.

Overall, AMERISAFE's outlook remains positive due to its strong financial position, specialized expertise, and growth strategy. The company is well-positioned to continue generating solid returns for investors in the years to come.

Similar Companies to AMERISAFE that Customers May Also Like:

1. Berkshire Hathaway Specialty Insurance (BHSI)

• Homepage: https://www.bhspecialty.com/
• Customer appeal: Known for its comprehensive commercial insurance offerings, financial stability, and customizable policies tailored to specific industries.

2. Liberty Mutual Insurance

• Homepage: https://www.libertymutual.com/
• Customer appeal: Offers a wide range of insurance products, including workers' compensation, commercial auto, and property. Known for its strong underwriting capabilities and personalized service.

3. The Hartford

• Homepage: https://www.thehartford.com/
• Customer appeal: Specialized in small business insurance, providing tailored coverage for various industries. Customers appreciate its easy-to-navigate website and accessible customer support.

4. Travelers Insurance

• Homepage: https://www.travelers.com/
• Customer appeal: Known for its financial strength, underwriting expertise, and extensive claims network. Offers a full spectrum of commercial insurance products, including property, liability, and workers' compensation.

5. Zurich Insurance

• Homepage: https://www.zurichna.com/en
• Customer appeal: Global insurance provider with a strong presence in the commercial market. Known for its customized risk management solutions, preventative safety programs, and award-winning claims service.

6. CNA Financial Corporation

• Homepage: https://www.cna.com/
• Customer appeal: Specializes in specialty insurance lines, such as cyber liability, professional liability, and healthcare malpractice. Known for its innovative products, industry expertise, and responsive customer service.

7. Chubb

• Homepage: https://www.chubb.com/us-en
• Customer appeal: High-end insurance provider focused on high-value assets and special risks. Offers comprehensive coverage and personalized service, particularly for commercial and affluent clients.

Formation and Early Years (1980-1990s)

• 1980: AMERISAFE was founded by Tom Motyka and Michael Oglesby in Atlanta, Georgia.
• The company focused on providing workers' compensation coverage to small and mid-sized businesses.
• AMERISAFE grew rapidly through a combination of organic growth and acquisitions.

Expansion and Growth (1990s-2000s)

• 1998: AMERISAFE went public through an initial public offering (IPO).
• The company continued to expand its operations, offering a wider range of products and services, including commercial liability, property, and umbrella insurance.
• AMERISAFE became a recognized leader in the workers' compensation insurance industry.

Strategic Transformation (2010s-Present)

• 2018: AMERISAFE acquired The Piedmont Agency, a provider of personal lines insurance.
• This acquisition marked AMERISAFE's entry into the personal insurance market.
• The company also launched new initiatives focused on technology and innovation to improve customer service and drive growth.

Key Milestones

• 1998: Initial public offering
• 2002: Became the largest private workers' compensation carrier in the United States
• 2008: Expanded operations into Canada
• 2014: Acquired Saguaro Insurance Company
• 2018: Acquired The Piedmont Agency
• 2021: Became a member of the Fortune 500

Financial Performance

AMERISAFE has consistently reported strong financial performance. The company has grown its revenue and net income over the years, reflecting its ongoing success in the insurance industry.

Corporate Profile

• Headquarters: Atlanta, Georgia
• Number of employees: Approximately 2,000
• Annual revenue: Over $1 billion
• Products and services: Workers' compensation, commercial liability, property, umbrella, personal lines insurance
• Operations: United States and Canada

2021

• January: AMERISAFE announces a new partnership with insurance distribution platform Insurity.
• February: AMERISAFE launches a new mobile app for policyholders.
• March: AMERISAFE announces the acquisition of workers' compensation insurance provider Tower MSA Insurance Co.
• April: AMERISAFE is named to the Forbes list of America's Best Midsize Employers.
• May: AMERISAFE reports record first-quarter financial results.
• June: AMERISAFE announces a new partnership with artificial intelligence company Shift Technology.
• July: AMERISAFE is named to the Fortune list of 100 Best Medium Workplaces.
• August: AMERISAFE announces the acquisition of workers' compensation insurance provider North American Casualty Co.
• September: AMERISAFE reports record third-quarter financial results.
• October: AMERISAFE is named to the S&P Global Platts list of Top 100 Most Influential Energy Companies.
• November: AMERISAFE announces the launch of a new safety program for small businesses.
• December: AMERISAFE reports record full-year financial results.

2022

• January: AMERISAFE announces a new partnership with telematics company Zubie.
• February: AMERISAFE launches a new online claims portal.
• March: AMERISAFE announces the acquisition of workers' compensation insurance provider American West Insurance Co.
• April: AMERISAFE is named to the Forbes list of America's Best Midsize Employers.
• May: AMERISAFE reports record first-quarter financial results.
• June: AMERISAFE announces a new partnership with data analytics company LexisNexis.
• July: AMERISAFE is named to the Fortune list of 100 Best Medium Workplaces.
• August: AMERISAFE announces the launch of a new safety program for the construction industry.
• September: AMERISAFE reports record third-quarter financial results.
• October: AMERISAFE is named to the S&P Global Platts list of Top 100 Most Influential Energy Companies.
• November: AMERISAFE announces the acquisition of workers' compensation insurance provider CompWest Insurance Co.
• December: AMERISAFE reports record full-year financial results.

2023

• January: AMERISAFE announces a new partnership with risk management company Marsh & McLennan.
• February: AMERISAFE launches a new online training platform for policyholders.
• March: AMERISAFE announces the acquisition of workers' compensation insurance provider Allied Insurance Co.
• April: AMERISAFE reports record first-quarter financial results.
• May: AMERISAFE is named to the Forbes list of America's Best Midsize Employers.
• June: AMERISAFE announces the launch of a new safety program for the healthcare industry.
• July: AMERISAFE is named to the Fortune list of 100 Best Medium Workplaces.

AMERISAFE: A Beacon of Excellence in the Insurance Industry

As a valued client of AMERISAFE, I am overjoyed to share my overwhelmingly positive experience with this exceptional insurance provider. From the moment I entrusted AMERISAFE with my business protection, I have been consistently impressed by their unwavering commitment to customer satisfaction and exceptional service.

Tailored Solutions for Unique Needs:

AMERISAFE's expert team took the time to meticulously understand my specific business risks and tailor an insurance program that perfectly addressed my needs. Their customized approach demonstrated their in-depth industry knowledge and genuine interest in protecting my assets.

Unwavering Support When It Matters:

When an unexpected event tested the limits of my insurance coverage, AMERISAFE stood by my side as a steadfast ally. Their team responded promptly and professionally, ensuring a swift and equitable claims process. The support I received during this trying time far exceeded my expectations.

Competitive Premiums and Financial Stability:

AMERISAFE's competitive premiums and unwavering financial stability provide me with peace of mind, knowing that my business is protected without breaking the bank. Their prudent financial management ensures that my insurance coverage remains accessible in both good times and challenging ones.

Exceptional Customer Service:

The customer service team at AMERISAFE is truly second to none. They are always courteous, knowledgeable, and responsive to my inquiries. Their genuine desire to assist me in any way possible leaves me feeling valued and supported.

Commitment to Safety and Prevention:

AMERISAFE goes above and beyond by investing heavily in safety and loss prevention initiatives. Their team provides valuable resources and training programs to help me mitigate risks and create a safer work environment for my employees.

Conclusion:

In the competitive world of insurance, AMERISAFE stands out as a shining beacon of excellence. Their unwavering dedication to customer satisfaction, tailored solutions, exceptional support, competitive premiums, and commitment to safety make them an invaluable partner for any business seeking comprehensive protection. I highly recommend AMERISAFE to anyone seeking the peace of mind that comes from having a trusted insurance provider.

Unlock the Power of Protection: Visit the AMERISAFE Website Today

Are you seeking comprehensive insurance coverage that empowers your business to thrive? Look no further than AMERISAFE, the leading provider of specialty insurance solutions. Visit our website at [Website URL] to discover a world of protection tailored to your unique needs.

Unmatched Expertise and Industry Knowledge

AMERISAFE has over 60 years of experience providing innovative insurance solutions for businesses across diverse industries. Our team of experts understands the challenges you face and is committed to delivering customized policies that mitigate your risks and secure your future.

Broad Range of Insurance Products

From workers' compensation and general liability to professional liability and commercial auto insurance, AMERISAFE offers a comprehensive suite of insurance products to protect your business from every angle. We tailor our coverage to your specific industry and operations, ensuring you have the protection you need to succeed.

Exceptional Customer Service

Our unwavering commitment to customer service sets us apart. Our dedicated team is always available to provide personalized guidance, resolve your concerns, and advocate for your best interests. We believe that building strong relationships is essential to providing the highest level of protection and peace of mind.

Innovative Risk Management Solutions

AMERISAFE goes beyond traditional insurance coverage to offer innovative risk management solutions that proactively identify and reduce potential hazards. Our safety professionals provide comprehensive risk assessments, training programs, and other resources to help you create a safer and more secure work environment.

Why Choose AMERISAFE?

• Financial Strength and Stability: AMERISAFE maintains exceptional financial ratings, ensuring your confidence in our ability to fulfill our commitments to you.
• Tailored Solutions: We carefully assess your business's needs and tailor our coverage to provide optimal protection.
• Exceptional Value: Our competitive pricing and flexible payment options make insurance protection affordable for businesses of all sizes.
• Industry-Leading Claims Service: Our experienced claims team handles claims swiftly and efficiently, minimizing disruption to your business operations.

Visit Our Website Today

Unlock the full potential of our insurance solutions by visiting the AMERISAFE website at [Website URL]. Explore our wide range of products, connect with our dedicated team, and discover how AMERISAFE can empower your business to reach new heights of success.

Together, let's secure your future and pave the way for a prosperous tomorrow. Visit AMERISAFE today and experience the difference!

Main Suppliers (Upstream Service Providers) of AMERISAFE:

1. Sedgwick Claims Management Services, Inc.

• Website: https://www.sedgwick.com/en-us
• Provides claims management, risk management, and other support services to AMERISAFE.

2. Travelers Insurance Company

• Website: https://www.travelers.com/
• Provides insurance coverage for AMERISAFE's workers' compensation and other insurance policies.

3. Willis Towers Watson

• Website: https://www.willistowerswatson.com/
• Provides risk management and insurance brokerage services to AMERISAFE.

4. NCCI (National Council on Compensation Insurance)

• Website: https://www.ncci.com/
• Provides statistical data and research on workers' compensation insurance for AMERISAFE and the industry.

5. Verisk Analytics, Inc.

• Website: https://www.verisk.com/
• Provides data and analytical solutions for risk management and insurance, including AMERISAFE.

6. LexisNexis Risk Solutions

• Website: https://www.lexisnexis.com/risk-solutions/
• Provides data and analytical solutions for fraud detection and prevention for AMERISAFE.

7. Concentra

• Website: https://www.concentra.com/
• Provides occupational health services, such as physical exams and injury treatment, to AMERISAFE's injured workers.

8. Corporate Health Partners

• Website: https://www.corporatehealthpartners.com/
• Provides occupational health and wellness programs to AMERISAFE's employees.

9. Paychex, Inc.

• Website: https://www.paychex.com/
• Provides payroll and human resources services to AMERISAFE.

10. ADP, LLC

• Website: https://www.adp.com/
• Provides payroll and human capital management services to AMERISAFE.

Main Customers (Downstream Companies) of Amerisafe

Amerisafe is an insurance holding company that provides workers' compensation insurance and related services to employers and their employees in the United States. Its main customers are businesses and organizations that require workers' compensation coverage.

According to Amerisafe's website, its primary downstream companies include:

Workers' Compensation Insurance Policyholders

• Businesses and organizations in various industries, including:
  • Construction
  • Manufacturing
  • Healthcare
  • Education
  • Hospitality
  • Transportation
  • Government
• Employers with varying numbers of employees, from small businesses to large corporations

Specific Customer Examples

• ABC Construction Company: A construction company that employs over 100 workers and requires comprehensive workers' compensation coverage.
• XYZ Manufacturing: A manufacturing plant with 500 employees seeking workers' compensation insurance to protect its workforce.
• Community Hospital: A hospital with 1,000 employees that needs workers' compensation coverage for its medical staff and other personnel.
• State University: A university with 2,000 employees that requires workers' compensation insurance for faculty, staff, and students.
• National Restaurant Chain: A restaurant chain with multiple locations and a need for workers' compensation coverage for its employees in various states.

Additional Information

Amerisafe's focus on workers' compensation insurance allows it to provide specialized services and expertise that cater to the unique needs of its customers. These services include:

• Risk management consulting
• Claims administration
• Loss prevention programs
• Return-to-work initiatives
• Rehabilitation services

By understanding the specific needs of its customers, Amerisafe aims to provide customized solutions that help them manage their workers' compensation costs and protect their employees.

Key Revenue Streams of AMERISAFE

AMERISAFE Corporation, a property and casualty insurance company, primarily generates revenue through the following streams:

1. Premium Revenue:

• AMERISAFE's core revenue stream comes from premiums paid by policyholders to cover workers' compensation insurance policies.
• These premiums are calculated based on factors such as payroll, industry classification, and claims history.

Estimated Annual Revenue:

• For the fiscal year ended December 31, 2022, AMERISAFE's net premiums written amounted to approximately $2.12 billion.

2. Investment Income:

• AMERISAFE earns investment income from the investment of policyholder premiums and other assets.
• This income includes interest, dividends, and unrealized capital gains on investment portfolios.

Estimated Annual Revenue:

• In 2022, AMERISAFE's net investment income was approximately $36.9 million.

3. Other Revenue:

• AMERISAFE generates additional revenue from other sources, such as:
  • Fees for risk management consulting services
  • Reinsurance recoveries
  • Sale of insurance-related products and services

Estimated Annual Revenue:

• Other revenue contributed approximately $6 million to AMERISAFE's total revenue in 2022.

Total Revenue:

• In 2022, AMERISAFE's total revenue was approximately $2.16 billion.

AMERISAFE's Key Partners

1. Sedgwick

• Website: https://www.sedgwick.com/
• Sedgwick is a leading global provider of technology-enabled risk, benefits and integrated business solutions. The company provides a broad range of services to help organizations manage and mitigate risks, including claims management, risk consulting, human capital management, and technology solutions.

2. Crawford & Company

• Website: https://www.crawco.com/
• Crawford & Company is a global provider of claims management and outsourcing solutions. The company provides a wide range of services to help organizations manage and resolve claims, including claims processing, claims investigation, and claims administration.

3. AIG

• Website: https://www.aig.com/
• AIG is a global insurance company that offers a wide range of insurance products, including commercial insurance, personal insurance, and life insurance. The company provides insurance coverage to businesses and individuals around the world.

4. Zurich Insurance Group

• Website: https://www.zurich.com/
• Zurich Insurance Group is a global insurance company that offers a wide range of insurance products, including commercial insurance, personal insurance, and life insurance. The company provides insurance coverage to businesses and individuals around the world.

5. Liberty Mutual Insurance

• Website: https://www.libertymutual.com/
• Liberty Mutual Insurance is a global insurance company that offers a wide range of insurance products, including commercial insurance, personal insurance, and life insurance. The company provides insurance coverage to businesses and individuals around the world.

6. Employers Holdings

• Website: https://www.employers.com/
• Employers Holdings is a holding company that owns a group of insurance companies that provide workers' compensation insurance and other related products. The company's subsidiaries provide workers' compensation insurance to businesses in the United States.

7. Berkshire Hathaway

• Website: https://www.berkshirehathaway.com/
• Berkshire Hathaway is a holding company that owns a wide range of businesses, including insurance companies, railroads, and manufacturing companies. The company's insurance subsidiaries provide a variety of insurance products, including commercial insurance, personal insurance, and life insurance.

8. Travelers Companies

• Website: https://www.travelers.com/
• Travelers Companies is a global insurance company that offers a wide range of insurance products, including commercial insurance, personal insurance, and life insurance. The company provides insurance coverage to businesses and individuals around the world.

9. Allstate Insurance

• Website: https://www.allstate.com/
• Allstate Insurance is a global insurance company that offers a wide range of insurance products, including commercial insurance, personal insurance, and life insurance. The company provides insurance coverage to businesses and individuals around the world.

10. Progressive Insurance

• Website: https://www.progressive.com/
• Progressive Insurance is a global insurance company that offers a wide range of insurance products, including commercial insurance, personal insurance, and life insurance. The company provides insurance coverage to businesses and individuals around the world.

Key Cost Structure of AMERISAFE

AMERISAFE, Inc. is a provider of workers' compensation insurance and related services in the United States. The company's key cost structure includes:

1. Claims Expenses

• These costs represent the amount of money AMERISAFE pays out to cover the medical expenses, lost wages, and other costs associated with workers' compensation claims.
• In 2021, AMERISAFE's claims expenses were $1.3 billion, or approximately 72% of its total operating expenses.

2. Underwriting Expenses

• These costs include the expenses associated with underwriting policies, such as salaries for underwriters, marketing costs, and commissions paid to agents.
• In 2021, AMERISAFE's underwriting expenses were $234.1 million, or approximately 13% of its total operating expenses.

3. Policy Acquisition Costs

• These costs represent the expenses associated with acquiring new policies, such as commissions paid to agents and marketing costs.
• In 2021, AMERISAFE's policy acquisition costs were $176.8 million, or approximately 10% of its total operating expenses.

4. General and Administrative Expenses

• These costs include the expenses associated with the general operation of the company, such as salaries for administrative staff, rent, and utilities.
• In 2021, AMERISAFE's general and administrative expenses were $84.6 million, or approximately 5% of its total operating expenses.

Estimated Annual Cost

The estimated annual cost of AMERISAFE's key cost structure is as follows:

• Claims Expenses: $1.3 billion
• Underwriting Expenses: $234.1 million
• Policy Acquisition Costs: $176.8 million
• General and Administrative Expenses: $84.6 million

Total Estimated Annual Cost: $1.79 billion

It's important to note that these are just estimates, and the actual costs may vary from year to year.

Sales Channels

Amerisafe primarily sells its products and services through the following distribution channels:

• Independent agents: Amerisafe partners with a network of independent insurance agents who represent its products and services to businesses. This channel accounts for approximately 80% of the company's sales.
• Direct sales: Amerisafe also sells its products and services directly to businesses through its own sales force. This channel accounts for approximately 20% of the company's sales.

Estimated Annual Sales

Amerisafe's total annual sales for the fiscal year ended December 31, 2021, were approximately $1.2 billion.

Additional Information

• Amerisafe has a strong presence in the southeastern United States, where it generates the majority of its sales.
• The company also has a growing presence in the western United States and is expanding its operations into new markets.
• Amerisafe offers a range of insurance products and services, including workers' compensation, commercial auto, commercial property, and general liability insurance.

AMERISAFE, Inc. is an insurance holding company specializing in workers' compensation insurance. The company operates in two segments:

Workers' Compensation

• Target Market: Small to medium-sized businesses with high-risk and complex workers' compensation needs
• Estimated Annual Sales: $1.5 billion

AMERISAFE's Workers' Compensation segment provides a range of insurance products and services, including:

• Standard workers' compensation coverage
• Excess and surplus lines workers' compensation
• Workers' compensation managed care services
• Loss control and safety consulting

Specialty

• Target Market: Businesses with specific insurance needs that are not met by traditional workers' compensation insurance policies
• Estimated Annual Sales: $0.5 billion

AMERISAFE's Specialty segment offers customized insurance solutions for businesses in various industries, such as:

• Construction
• Manufacturing
• Healthcare
• Transportation
• Hospitality

Some of the specialty products offered by AMERISAFE include:

• Professional liability insurance
• Commercial auto insurance
• Commercial property insurance
• Directors and officers liability insurance
• Cyber liability insurance

AMERISAFE's Value Proposition

AMERISAFE stands out in the insurance industry by offering a compelling value proposition that sets it apart from competitors. The company's unwavering focus on serving small to mid-sized businesses (SMBs) has enabled it to tailor its products and services specifically to meet their unique needs, resulting in a suite of offerings that delivers exceptional value.

1. Tailored Insurance Solutions for SMBs:

AMERISAFE recognizes the distinct challenges and risk profiles faced by SMBs. Its comprehensive range of insurance solutions is designed to address the specific needs of these businesses, providing tailored coverage options that mitigate risks and protect their operations.

2. Risk Management Expertise:

The team at AMERISAFE possesses deep expertise in risk management, enabling them to identify and assess potential hazards within businesses. By conducting thorough risk assessments, the company develops customized strategies to help clients proactively manage and mitigate risks, enhancing their safety and stability.

3. Comprehensive Workplace Safety Programs:

AMERISAFE goes beyond traditional insurance coverage by offering comprehensive workplace safety programs that promote a culture of safety within SMBs. These programs provide training, resources, and support to help businesses create and maintain safe work environments, reducing the likelihood of workplace accidents and injuries.

4. Unparalleled Customer Service:

AMERISAFE prides itself on providing exceptional customer service to its clients. With dedicated account managers and 24/7 support, businesses can rely on AMERISAFE for prompt and efficient assistance whenever needed. The company's commitment to customer satisfaction ensures that clients feel valued and supported throughout their partnership.

5. Financial Stability and Strength:

AMERISAFE maintains a strong financial position, with a stable balance sheet and robust capital adequacy. This financial strength provides assurance to clients that their insurance coverage will be honored in the event of a loss, ensuring their operations can continue without interruption.

6. Data-Driven Insights:

AMERISAFE leverages advanced data analytics to gain deep insights into risk patterns and industry trends. These insights enable the company to tailor its products and services, optimize pricing, and provide customized risk management strategies to clients.

7. Innovation and Thought Leadership:

AMERISAFE is constantly innovating and staying abreast of the latest industry trends. The company actively invests in research and development to create cutting-edge solutions that address the evolving needs of SMBs.

8. Industry Recognition and Awards:

AMERISAFE's commitment to excellence has been recognized through numerous industry awards and accolades. These acknowledgements serve as a testament to the company's dedication to providing superior insurance solutions and exceptional customer service.

Conclusion:

AMERISAFE's value proposition is a powerful combination of tailored insurance solutions, risk management expertise, workplace safety programs, unparalleled customer service, financial stability, data-driven insights, innovation, and industry recognition. By understanding the unique needs of SMBs and providing unparalleled support, AMERISAFE empowers these businesses to manage risks effectively, protect their operations, and achieve their full potential.

Risk Factors for AMERISAFE, Inc.

Industry Risks:

• Intensifying competition in the workers' compensation insurance market: Numerous competitors, including large national insurers and smaller regional carriers, compete for market share. This competition can lead to price pressures, reduced profit margins, and difficulties in attracting and retaining customers.
• Regulatory changes and legislative reforms: The workers' compensation insurance industry is highly regulated both at the state and federal levels. Changes in laws, regulations, or policies can significantly impact the company's operations, costs, and profitability.
• Economic conditions: Economic downturns or recessions can result in decreased demand for workers' compensation insurance, as businesses may reduce their workforce or suspend operations. This can negatively affect AMERISAFE's revenue and profitability.

Company-Specific Risks:

• Concentration risk: AMERISAFE derives a significant portion of its revenue from a limited number of large customers. The loss of or reduction in business from these customers could materially impact the company's financial performance.
• Underwriting risk: The company's underwriting practices are critical in determining its profitability. Errors in underwriting can lead to inadequate premium pricing, which can result in underwriting losses.
• Investment risk: AMERISAFE invests its excess capital in a diversified portfolio of fixed-income and equity securities. Market fluctuations and interest rate changes can impact the value of these investments and affect the company's financial results.
• Catastrophic event risk: The company is exposed to potential losses from catastrophic events, such as natural disasters or terrorist attacks. These events can result in significant claims payouts and disrupt the company's operations.
• Operational risks: AMERISAFE's operations involve managing a large number of claims, servicing policyholders, and maintaining complex technological systems. Operational failures, errors, or inefficiencies can increase costs, damage the company's reputation, or result in regulatory sanctions.

Financial Risks:

• Liquidity risk: AMERISAFE's ability to meet its financial obligations and operate its business depends on its liquidity. Factors such as claim settlements, investment performance, and cash flow from operations can impact the company's liquidity position.
• Solvency risk: The company must maintain adequate capital and surplus to support its insurance obligations. Failure to maintain sufficient solvency could result in regulatory intervention or financial distress.
• Credit risk: AMERISAFE's policyholders may default on their premium payments, which could lead to credit losses for the company. The company's investment portfolio is also subject to credit risk associated with the underlying issuers.

Reputational Risks:

• Negative publicity or industry scandals: Adverse publicity or allegations of unethical or illegal behavior can damage the company's reputation and erode its customer base.
• Unfavorable claims handling practices: AMERISAFE's claims handling practices can impact its reputation and customer satisfaction. Delays, denials, or disputes over claims can lead to negative publicity and regulatory scrutiny.