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Amerisafe Maintains Niche Position in High-Hazard Insurance

On Sep 1, 2015, we issued an updated research report on Amerisafe, Inc.AMSF .

Amerisafe has a 29-year operating history as a specialty provider of workers' compensation insurance for small to mid-sized employers engaged in high-hazard industries.

We also appreciate Amerisafe's ability to maintain combined ratios at more favorable levels than its peers. The company's combined ratio has stayed below 100% in the past nine years save 2011, signifying underwriting profitability.

The line of business that Amerisafe follows has been profitable because it brings to the company higher premium due to inherent workplace dangers associated with such policies. Notably, the company has maintained a niche position in insuring the employers engaged in hazardous industries.

Amerisafe has been witnessing consistent growth in book value per share. This is primarily owing to several factors such as higher premiums paid by policyholders, the strategy of employing a proactive and disciplined approach in underwriting capabilities, and prudent capital management. The company's return on equity has also been witnessing consistent and noticeable improvement.

Moreover, Amerisafe has always taken extra care in managing its capital and returning value to its shareholders. After paying its first regular cash dividend in Mar 2013, the company hiked its dividend in 2014 and 2015, along with paying an extraordinary and special dividend in 2014.

Amerisafe currently holds a Zacks Rank #2 (Buy). Investors interested in the insurance space may also consider stocks like Employers Holdings, Inc. EIG , Cigna Corp. CI and Hallmark Financial Services Inc. HALL . While Employers Holdings and Cigna carry the same Zacks rank as Amerisafe, Hallmark Financial carries a Zacks Rank # 1 (Strong Buy).

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CIGNA CORP (CI): Free Stock Analysis Report

AMERISAFE INC (AMSF): Free Stock Analysis Report

HALLMARK FINL (HALL): Free Stock Analysis Report

EMPLOYERS HLDGS (EIG): Free Stock Analysis Report

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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.

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