A.M. Best Assigns Issuer Credit Rating to AMERISAFE, Inc.; Affirms Financial Strength Rating of Amerisafe Insurance Group.OLDWICK, N.J. -- A.M. Best Co. has assigned an issuer credit rating (ICR (Intelligent Character Recognition or Image Character Recognition) The machine recognition of hand-printed characters as well as machine printing that is difficult to recognize. ) of "bbb-" and debt ratings to AMERISAFE, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : AMSF AMSF Australian Motor Sport Foundation AMSF Area Maintenance and Supply Facility (US Army) AMSF Army Morale Support Fund AMSF Area Maintenance Support Facility AMSF Army Maintenance Supply Facilities AMSF Alkali Metal Storage Facility ). (See list of debt ratings below.) Concurrently, A.M. Best has affirmed the financial strength rating (FSR (Free System Resource) In Windows 3.x, the amount of unused memory in various 64K blocks reserved for managing current applications. Every open window takes some space in this area. See Windows memory limitation. ) of A- (Excellent) on Amerisafe Insurance Group (DeRidder, LA) and removed it from under review. Amerisafe Insurance Group, whose operations include the consolidated results of American Interstate Insurance Company, Silver Oak Casualty, Inc, and American Interstate Insurance Company of Texas, has also been assigned an ICR of "a-". All ratings have stable outlooks. These rating actions take into consideration the completed initial public offering (IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. ) of AMSF in November of 2005 and its beneficial impact on overall financial flexibility, holding company leverage, liquidity and improved statutory risk-adjusted capitalization of Amerisafe Insurance Group. Net proceeds from the IPO were approximately $63.7 million, of which $45.0 million has been contributed to Amerisafe Insurance Group. Additionally the ratings reflect the added financial flexibility and vastly improved financial leverage at AMSF, which considers its ready access to capital.. Approximately $10.2 million of the net proceeds from the IPO were used to retire outstanding debt (cumulative preferred stock Cumulative preferred stock Preferred stock whose dividends accrue, should the issuer not make timely dividend payments. Related: Non-cumulative preferred stock. ) previously issued at AMSF. The stable rating outlooks assigned to these companies reflect A.M. Best's expectations that Amerisafe Insurance Group will maintain capitalization levels that remain supportive of its current rating and that reserve development patterns will further stabilize. The following debt ratings have been assigned with a stable outlook: AMERISAFE, Inc.-- --"bb" on $30 million Convertible Preferred Stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". Series C --"bb" on $20 million Convertible Preferred Stock Series D --"bb" on $36.1 million Subordinated Trust Preferred Securities For Best's Debt Ratings, all other Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
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