Amerisafe Maintains Niche Position In High Hazard Insurance
Zacks Investment Research | Dec 08, 2017 03:22AM ET
Insurer Amerisafe Inc. (NASDAQ:AMSF) has a long operating history of 30 years to its credit as a specialty provider of workers’ compensation insurance for small to mid-sized employers in high-hazard industries. The business line that Amerisafe follows has been profitable because it fetches the company with higher premium, driven by inherent workplace dangers associated with a risk-prone sector.
Armed with competitive advantages, Amerisafe focuses on specialized underwriting expertise, witnessed by its combined ratios, which are 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 company also boasts an efficient operating platform. For instance, the extensive cost management initiatives that it maintains in the workers’ compensation industry.
Additionally, Amerisafe’s focused loss control and safety programs plus active claims management have generated favorable underwriting results.
We also appreciate the company’s commendable capital management policy via acquisitions, regular dividend payments and share buybacks, having successfully generated positive return on equity.
In the past six months, the stock has significantly gained 22.2%, outperforming the
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