AMERISAFE, Inc

AMERISAFE operates in the United States and actively markets workers’ compensation insurance in 27 states, with additional licenses in 20 states plus the District of Columbia and the U.S. Virgin Islands. The company’s premium concentration is meaningful: in 2025, 53.6% of voluntary in-force premiums were generated in six states where it derived 5.0% or more of gross premiums written, making state-level pricing and regulatory conditions important to results. Insurance subsidiaries are domiciled in Nebraska (AIIC and SOCI) and Texas (AIICTX), which anchors key regulatory relationships and statutory capital considerations. Geographic expansion is described as “prudent and opportunistic,” leveraging existing licenses and rate filings to enter additional states when market conditions and expected profitability are attractive. Because workers’ compensation is regulated at the state level, differences in loss-cost trends, benefit rules, and rate environments can materially change competitiveness and underwriting margins by state.

AMERISAFE’s results are sensitive to claims cost inflation and adverse loss development, particularly from medical and prescription drug cost increases that may not be fully reflected in pricing when policies are written. The workers’ compensation market is cyclical; intensified price competition in a soft market can pressure premium rates and commissions, while state-level changes to loss-cost assumptions and benefit rules can alter profitability. The company also faces reinsurance counterparty and capacity risk, since ceded reinsurance affects net premiums written and capital management. As a regulated insurer, AMERISAFE is exposed to extensive state regulation governing solvency, investments, rate setting, reserves, and subsidiary dividend capacity, which can constrain flexibility. Investment portfolio returns and reported equity can fluctuate with interest rates and credit conditions, especially given mark-to-market impacts on available-for-sale securities.