AMERISAFE Announces 2009 First Quarter Results

DERIDDER, La., April 29 /PRNewswire-FirstCall/ -- AMERISAFE, Inc. (Nasdaq:
AMSF), a specialty provider of high hazard workers' compensation insurance,
today announced results for the first quarter ended March 31, 2009.

Three Months Ended
------------------
March 31,
---------
2009 2008
---- ----
Gross premiums written $79,429 $80,977

Net income 11,062 11,923
Net combined ratio 88.6% 87.1%
Return on average equity 15.7% 20.0%

Net income in the first quarter of 2009 was $11.1 million compared to $11.9
million in the first quarter of 2008, a decrease of 7.2%. Pre-tax income for
the first quarter of 2009 included $1.2 million of favorable prior year loss
development. Pre-tax income for the first quarter of 2008 included $1.7
million of favorable prior year development. Return on average equity for the
first quarter of 2009 was 15.7% compared to 20.0% for the first quarter of
2008.

Gross premiums written in the first quarter of 2009 were $79.4 million, a
decrease of 1.9%, compared to $81.0 million in the first quarter of 2008. The
decrease was the result of audit adjustments for policies written in prior
periods, offset by an increase in voluntary premiums for policies written in
the quarter. Net investment income was $7.4 million for the first quarter of
2009, compared to $7.8 million for the first quarter of 2008. First quarter
revenues totaled $77.5 million, a decrease of 5.8%, compared to revenues of
$82.3 million in the prior year period.

In the first quarter of 2009, diluted earnings per share allocable to common
shareholders were $0.54 compared to $0.59 in the 2008 first quarter. Weighted
average diluted shares outstanding for the first quarter of 2009 totaled
19,234,910 shares compared to 19,019,373 shares in the first quarter of 2008.

The net combined ratio for the quarter ended March 31, 2009 was 88.6% compared
to 87.1% for the same period in 2008. Loss and loss adjustment expenses for
the first quarter of 2009 were $47.1 million, or 67.2% of net premiums earned,
compared to $49.9 million, or 67.2% of net premiums earned, for the first
quarter of 2008. Total underwriting expenses for the first quarter of 2009
were $14.8 million, or 21.1% of net premiums earned, compared to $14.5
million, or 19.5% of net premiums earned, for the first quarter of 2008.

Commenting on these results, Allen Bradley, AMERISAFE's Chairman, President
and Chief Executive Officer, stated, "Our results for the first quarter were
in line with our expectations and were remarkable given the current economic
environment. Our ability to produce these results is due to our continued
focus on underwriting and risk selection, claims administration and expense
management. As we announced last week, A. M. Best has reaffirmed our 'A-'
(Excellent) rating and upgraded our rating outlook to 'positive' from
'stable.' We believe AMERISAFE is well positioned to capitalize on
disruptions in our market and to take advantage of opportunities when economic
conditions begin to improve."

2009 Outlook
AMERISAFE's overall financial objective is to produce a return on equity of at
least 15% over the long-term while maintaining optimal operating leverage in
its insurance subsidiaries that is commensurate with the its A. M. Best rating
of "A-" (Excellent).

Conference Call Information
AMERISAFE has scheduled a conference call for April 30, 2009, at 11:00 a.m.
Eastern Time. To participate in the conference call dial 303-228-2960 at
least 10 minutes before the call begins and ask for the AMERISAFE conference
call. A replay of the call will be available approximately two hours after
the live broadcast ends and will be accessible through May 7, 2009. To access
the replay, dial 303-590-3000 and use the pass code 11130529#.

Investors, analysts and the general public will also have the opportunity to
listen to the conference call over the Internet by visiting
http://www.amerisafe.com. To listen to the live call on the web, please visit
the website at least fifteen minutes before the call begins to register,
download and install any necessary audio software. For those who cannot
listen to the live webcast, an archive will be available shortly after the
call and will remain available for approximately 60 days at
http://www.amerisafe.com.

About AMERISAFE
AMERISAFE, Inc. is a specialty provider of workers' compensation insurance
focused on small to mid-sized employers engaged in hazardous industries,
principally construction, trucking, logging, agriculture, oil and gas,
maritime and sawmills. AMERISAFE actively markets workers' compensation
insurance in 30 states and the District of Columbia. The Company's financial
strength rating is "A-" (Excellent) by A.M. Best.

Statements made in this press release that are not historical facts, including
statements accompanied by words such as "will," "believe," "anticipate,"
"expect," "estimate," or similar words are forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995 regarding
AMERISAFE's plans and performance. These statements are based on management's
estimates, assumptions and projections as of the date of this release and are
not guarantees of future performance. Actual results may differ materially
from the results expressed or implied in these statements as the results of
risks, uncertainties and other factors including, but not limited to, the
factors set forth in the Company's filings with the Securities and Exchange
Commission, including AMERISAFE's Annual Report on Form 10-K for the year
ended December 31, 2008. AMERISAFE cautions you not to place undue reliance
on the forward-looking statements contained in this release. AMERISAFE does
not undertake any obligation to publicly update or revise any forward-looking
statements to reflect future events, information or circumstances that arise
after the date of this release.

Contacts: G. Janelle Frost, EVP & CFO
AMERISAFE, Inc.
337-463-9052

Ken Dennard, Managing Partner
Karen Roan, Sr.VP
DRG&E / 713-529-6600

- Tables to follow -

AMERISAFE, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(in thousands, except per share amounts)

Three Months Ended
March 31,
----------
2009 2008
---- ----
Revenues: (unaudited)
---------
Gross premiums written $79,429 $80,977
Ceded premiums written (5,194) (4,790)
------- -------
Net premiums written $74,235 $76,187
------- -------

Net premiums earned $70,001 $74,300
Net investment income 7,372 7,817
Net realized gains on investments 26 8
Fee and other income 136 141
--- ---
Total revenues 77,535 82,266
------ ------

Expenses:
---------
Loss and loss adjustment expenses
incurred 47,070 49,928
Underwriting and other operating costs 14,768 14,514
Interest expense 611 769
Policyholder dividends 181 316
--- ---
Total expenses 62,630 65,527
------ ------

Income before taxes 14,905 16,739
Income tax expense 3,843 4,816
----- -----
Net income $11,062 $11,923
======= =======

AMERISAFE, INC. AND SUBSIDIARIES
Consolidated Statements of Income (cont.)
(in thousands, except per share amounts)

Three Months Ended
March 31,
---------
2009 2008
---- ----
(unaudited)
Basic EPS:
----------
Net income available to common shareholders $11,062 $11,923
======= =======
Portion allocable to common shareholders 94.1% 94.0%

Net income allocable to common shareholders $10,405 $11,208
======= =======

Basic weighted average common shares 18,845,081 18,798,362
Basic earnings per share $0.55 $0.60

Diluted EPS:
------------
Net income allocable to common shareholders $10,405 $11,208
======= =======

Diluted weighted average common shares:
Weighted average common shares 18,845,081 18,798,362
Stock options 380,100 206,230
Restricted stock 9,729 14,781
----- ------
Diluted weighted average common shares 19,234,910 19,019,373

Diluted earnings per common share $0.54 $0.59
===== =====

AMERISAFE, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands)

March 31, December 31,
--------- ------------
2009 2008
---- ----
(unaudited)
Assets
Investments $716,080 $704,732
Cash and cash equivalents 92,475 95,241
Amounts recoverable from reinsurers 78,034 67,763
Premiums receivable, net 171,040 156,567
Deferred income taxes 34,283 33,580
Deferred policy acquisition costs 20,169 20,289
Deferred charges 3,569 3,381
Other assets 27,749 26,280
------ ------
$1,143,399 $1,107,833
========== ==========

Liabilities, redeemable preferred stock
and shareholders' equity
Liabilities:
Reserves for loss and loss adjustment
expenses $545,058 $531,293
Unearned premiums 141,334 137,100
Insurance-related assessments 44,126 42,505
Subordinated debt securities 36,090 36,090
Other liabilities 89,680 82,573

Redeemable preferred stock 25,000 25,000

Total shareholders' equity 262,111 253,272
------- -------
Total liabilities, redeemable preferred stock
and shareholders' equity $1,143,399 $1,107,833
========== ==========

AMERISAFE, INC. AND SUBSIDIARIES
Selected Insurance Ratios

Three Months Ended
March 31,
----------
2009 2008
---- ----
(unaudited)

Current accident year loss ratio (1) 69.0% 69.5%
Prior accident year loss ratio (2) (1.8)% (2.3)%
------ ------
Net loss ratio 67.2% 67.2%
----- -----
Net underwriting expense ratio (3) 21.1% 19.5%
Net dividend ratio (4) 0.3% 0.4%
Net combined ratio (5) 88.6% 87.1%
Return on average equity (6) 15.7% 20.0%

(1) The current accident year loss ratio is calculated by dividing
loss and loss adjustment expenses incurred for the current accident
year by the current year's net premiums earned.

(2) The prior accident year loss ratio is calculated by dividing the
change in loss and loss adjustment expenses incurred for prior
accident years by the current year's net premiums earned.

(3) The net underwriting expense ratio is calculated by dividing
underwriting and certain other operating costs by the current
year's net premiums earned.

(4) The net dividend ratio is calculated by dividing policyholder
dividends by the current year's net premiums earned.

(5) The net combined ratio is the sum of the net loss ratio, the net
underwriting expense ratio and the net dividend ratio.

(6) Return on average equity is calculated by dividing the annualized
net income by the average shareholders' equity, including redeemable
preferred stock for the applicable period.

SOURCE AMERISAFE, Inc.

G. Janelle Frost, EVP & CFO of AMERISAFE, Inc., +1-337-463-9052; or Ken
Dennard, Managing Partner, or Karen Roan, Sr. VP, both of DRG&E,
+1-713-529-6600, for AMERISAFE, Inc.