On Sep 12, 2016, we issued an updated research report on Amerisafe Inc.AMSF .
The insurer has to its credit 30 years of operating history as a specialty provider of workers' compensation insurance for small to mid-sized employers engaged in high-hazard industries. The line of business that Amerisafe follows has been profitable because it draws a higher premium due to inherent workplace dangers associated with such policies.
Amerisafe also enjoys a competitive advantage with its focus on specialized underwriting expertise as witnessed by its combined ratio which is at more favorable level than its peers. The company's combined ratio has stayed below 100% in the past nine years save 2011, signifying underwriting profitability.
The company also boasts an efficient operating platform. Through extensive cost management, Amerisafe maintains one of the most efficient operations in the workers' compensation industry.
AMERISAFE INC Price and Consensus
AMERISAFE INC Price and Consensus | AMERISAFE INC Quote
Amerisafe's focused loss control, safety programs and active claims management have generated favorable underwriting results.
We also appreciate the company's commendable capital management policy by way of acquisitions, continued dividend payments and share buyback, which have been able to generate positive return on equity.
Amerisafe also carries strong investment grade ratings from A.M.Best, with a positive outlook, by virtue of its strong level of risk-adjusted capitalization, consistently profitable operating performance, and established position and experience in the workers' compensation market for high hazard risks.
Nevertheless, the company's product concentration and adverse reserve development have made its earnings inconsistent.
Amerisafe currently carries a Zacks Rank #3 (Hold). Investors interested in the insurance space may consider stocks like National Interstate Corporation NATL , NMI Holdings Inc. NMIH and Allied World Assurance Company Holdings, AG, AWH . Each of these stocks carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
AMERISAFE INC (AMSF): Free Stock Analysis Report
NATL INTERST CP (NATL): Free Stock Analysis Report
ALLIED WORLD AS (AWH): Free Stock Analysis Report
NMI HOLDINGS-A (NMIH): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
