{"url_path":"/sec/amsf/10-k/2026/item-8","section_key":"item-8","section_title":"Item 8 Financial Statements and Supplementary Data.","topic":"sec","document":{"doc_type":"10-K","doc_date":"2026-02-27","source_url":"https://www.sec.gov/Archives/edgar/data/1018979/0001193125-26-082513-index.html","accession_number":"0001193125-26-082513","cik":"0001018979","ticker":"AMSF","issuer_name":"AMERISAFE INC","edgar_url":"https://www.sec.gov/Archives/edgar/data/1018979/0001193125-26-082513-index.html","primary_entity_key":"0001018979","primary_entity_name":"AMERISAFE INC"},"word_count":16872,"has_tables":true,"body_markdown":"Item 8. Financial Statements and Supplementary Data.\n\n \n\n \n\nPage\n\nAudited Financial Statements as of December 31, 2025 and 2024 and for the three years in the period ended\n\nDecember 31, 2025:\n\n \n\n[Report of Independent Registered Public Accounting Firm](#report_independent_registered_public_acc)\n\n52\n\n[Consolidated Balance Sheets](#consolidated_balance_sheets)\n\n54\n\n[Consolidated Statements of Income](#consolidated_statements_income)\n\n55\n\n[Consolidated Statements of Comprehensive Income](#consolidated_statements_comprehensive_in)\n\n56\n\n[Consolidated Statements of Changes in Shareholders’ Equity](#consolidated_statements_changes_in_share)\n\n57\n\n[Consolidated Statements of Cash Flows](#consolidated_statements_cash_flows)\n\n58\n\n[Notes to Consolidated Financial Statements](#notes_to_consolidated_financialstatement)\n\n59\n\n \n\n \n\nFinancial Statement Schedules:\n\n \n\n[Schedule II. Condensed Financial Information of Registrant](#schedule_ii_condensed_financial_informat)\n\n89\n\n[Schedule VI. Supplemental Information Concerning Property-Casualty Insurance Operations](#schedule_vi_supplemental_information_con)\n\n92\n\nSchedules I, III, IV and V are not applicable and have been omitted\n\n \n\n \n\n51\n\n \n\nReport of Independent Registered Public Accounting Firm\n\nTo the Shareholders and the Board of Directors of AMERISAFE, Inc.\n\n \n\nOpinion on the Financial Statements\n\n \n\nWe have audited the accompanying consolidated balance sheets of AMERISAFE, Inc. and subsidiaries (the Company) as of December 31, 2025 and 2024, the related consolidated statements of income, comprehensive income, changes in shareholders’ equity and cash flows for each of the three years in the period ended December 31, 2025, and the related notes and financial statement schedules listed in the Index at Item 15 (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles.\n\n \n\nWe also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated February 27, 2026 expressed an unqualified opinion thereon.\n\n \n\nBasis for Opinion\n\n \n\nThese financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.\n\nWe conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.\n\n \n\nCritical Audit Matter\n\n \n\nThe critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the account or disclosures to which it relates.\n\n \n\n52\n\n \n\n \n\n \n\n \n\nValuation of Loss and Loss Adjustment Expense reserves\n\nDescription of the Matter\n\n \n\nAt December 31, 2025, the Company’s reserves for loss and loss adjustment expenses (LAE) was $614 million. As discussed in Notes 1 and 9 to the consolidated financial statements, the reserve for loss and LAE represents the estimated ultimate costs of all reported and unreported losses incurred and unpaid as of the reporting date. There is significant uncertainty inherent in determining the ultimate loss and LAE costs which are estimated using individual case-base valuations and statistical and actuarial analysis based upon experience for previously unreported claims and their ultimate loss and LAE costs. In particular, the estimates are sensitive to loss severity and frequency trends, changes in customers, claims management, regulatory factors, medical trends, employment and wage patterns, insurance policy coverage interpretations, and judicial determinations, among other factors.\n\nAuditing management’s IBNR reserve estimate required the involvement of our actuarial specialists and was complex and highly judgmental due to the nature of significant assumptions used in the valuation process. The IBNR reserve estimate was sensitive to the selection of actuarial methods and assumptions, including the adjustment of historical loss severity experience for changes in policies and customer base.\n\nHow We Addressed the Matter in Our Audit\n\n \n\nWe obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s process for estimating loss and LAE reserves, including, among others controls over the review and approval processes that the Company has in place for the methods and assumptions used in estimating IBNR reserves.\n\nTo test the recorded IBNR reserves, with the assistance of our actuarial specialists, we evaluated the Company’s selection of methods and assumptions, including loss severity, against those used in prior periods and used in the industry for similar types of insurance. We also considered changes to employment and wage patterns and the Company’s customers and claims management. We involved our actuarial specialist to independently calculate a range of reasonable loss and LAE reserve estimates and compared this range to the Company’s recorded loss and LAE reserve. We also performed a review of the development of prior years’ reserve estimates.\n\n \n\n/s/ Ernst & Young LLP\n\nWe have served as the Company’s auditor since 1993.\n\nNew Orleans, Louisiana\n\nFebruary 27, 2026\n\n53\n\n \n\nAMERISAFE, INC. AND SUBSIDIARIES\n\nCONSOLIDATED BALANCE SHEETS\n\n(in thousands, except share data)\n\n \n\n \n\nDecember 31,\n\n \n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\nAssets\n\n \n\n \n\n \n\n \n\n \n\n \n\nInvestments:\n\n \n\n \n\n \n\n \n\n \n\n \n\nFixed maturity securities—held-to-maturity, at amortized cost net of allowance\n   for credit losses of $73 and $116 in 2025 and 2024, respectively,\n   (fair value $344,576 and $399,721 in 2025 and 2024, respectively)\n\n \n\n$\n\n350,087\n\n \n\n \n\n$\n\n413,061\n\n \n\nFixed maturity securities—available-for-sale, at fair value\n   (amortized cost $317,116, allowance for credit losses of $0 in 2025\n   and amortized cost $318,975, allowance for credit losses of $0 in 2024)\n\n \n\n \n\n313,038\n\n \n\n \n\n \n\n307,750\n\n \n\nEquity securities, at fair value\n   (cost $31,165 and $36,020 in 2025 and 2024, respectively)\n\n \n\n \n\n57,493\n\n \n\n \n\n \n\n58,629\n\n \n\nShort-term investments\n\n \n\n \n\n14,237\n\n \n\n \n\n \n\n9,338\n\n \n\nTotal investments\n\n \n\n \n\n734,855\n\n \n\n \n\n \n\n788,778\n\n \n\nCash and cash equivalents\n\n \n\n \n\n61,926\n\n \n\n \n\n \n\n44,045\n\n \n\nAmounts recoverable from reinsurers\n   (net of allowance for credit losses of $264 and $300 in 2025 and 2024, respectively)\n\n \n\n \n\n108,098\n\n \n\n \n\n \n\n117,019\n\n \n\nPremiums receivable\n   (net of allowance for credit losses of $4,172 and $4,238 in 2025 and 2024, respectively)\n\n \n\n \n\n160,944\n\n \n\n \n\n \n\n142,659\n\n \n\nDeferred income taxes\n\n \n\n \n\n17,572\n\n \n\n \n\n \n\n19,448\n\n \n\nAccrued interest receivable\n\n \n\n \n\n6,963\n\n \n\n \n\n \n\n7,327\n\n \n\nProperty and equipment, net\n\n \n\n \n\n7,293\n\n \n\n \n\n \n\n5,887\n\n \n\nDeferred policy acquisition costs\n\n \n\n \n\n21,085\n\n \n\n \n\n \n\n19,151\n\n \n\nFederal income tax recoverable\n\n \n\n \n\n3,088\n\n \n\n \n\n \n\n2,180\n\n \n\nOther assets\n\n \n\n \n\n8,720\n\n \n\n \n\n \n\n11,297\n\n \n\nTotal assets\n\n \n\n$\n\n1,130,544\n\n \n\n \n\n$\n\n1,157,791\n\n \n\nLiabilities and shareholders’ equity\n\n \n\n \n\n \n\n \n\n \n\n \n\nLiabilities:\n\n \n\n \n\n \n\n \n\n \n\n \n\nReserves for loss and loss adjustment expenses\n\n \n\n$\n\n613,583\n\n \n\n \n\n$\n\n651,309\n\n \n\nUnearned premiums\n\n \n\n \n\n135,503\n\n \n\n \n\n \n\n121,926\n\n \n\nAmounts held for others\n\n \n\n \n\n39,139\n\n \n\n \n\n \n\n38,657\n\n \n\nPolicyholder deposits\n\n \n\n \n\n33,532\n\n \n\n \n\n \n\n33,867\n\n \n\nInsurance-related assessments\n\n \n\n \n\n15,979\n\n \n\n \n\n \n\n14,852\n\n \n\nAccounts payable and other liabilities\n\n \n\n \n\n39,178\n\n \n\n \n\n \n\n38,409\n\n \n\nPayable for investments purchased\n\n \n\n \n\n2,032\n\n \n\n \n\n \n\n1,430\n\n \n\nTotal liabilities\n\n \n\n \n\n878,946\n\n \n\n \n\n \n\n900,450\n\n \n\nShareholders’ equity:\n\n \n\n \n\n \n\n \n\n \n\n \n\nCommon stock: voting—$0.01 par value authorized shares—50,000,000\n   in 2025 and 2024; 20,769,021 and 20,733,166 shares issued; and 18,794,881\n   and 19,050,315 shares outstanding in 2025 and 2024, respectively\n\n \n\n \n\n208\n\n \n\n \n\n \n\n207\n\n \n\nAdditional paid-in capital\n\n \n\n \n\n225,912\n\n \n\n \n\n \n\n223,956\n\n \n\nTreasury stock, at cost (1,974,140 and 1,682,851 shares in 2025 and 2024,\n   respectively)\n\n \n\n \n\n(54,155\n\n)\n\n \n\n \n\n(42,052\n\n)\n\nAccumulated earnings\n\n \n\n \n\n82,850\n\n \n\n \n\n \n\n84,105\n\n \n\nAccumulated other comprehensive loss, net\n\n \n\n \n\n(3,217\n\n)\n\n \n\n \n\n(8,875\n\n)\n\nTotal shareholders’ equity\n\n \n\n \n\n251,598\n\n \n\n \n\n \n\n257,341\n\n \n\nTotal liabilities and shareholders’ equity\n\n \n\n$\n\n1,130,544\n\n \n\n \n\n$\n\n1,157,791\n\n \n\nSee accompanying notes.\n\n \n\n54\n\n \n\nAMERISAFE, INC. AND SUBSIDIARIES\n\nCONSOLIDATED STATEMENTS OF INCOME\n\n(in thousands, except share data)\n\n \n\n \n\nYear Ended December 31,\n\n \n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\nRevenues\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNet premiums earned\n\n \n\n$\n\n283,057\n\n \n\n \n\n$\n\n270,639\n\n \n\n \n\n$\n\n267,125\n\n \n\nNet investment income\n\n \n\n \n\n26,993\n\n \n\n \n\n \n\n29,212\n\n \n\n \n\n \n\n31,339\n\n \n\nNet realized gains (losses) on investments\n\n \n\n \n\n3,034\n\n \n\n \n\n \n\n(576\n\n)\n\n \n\n \n\n6,579\n\n \n\nNet unrealized gains on equity securities\n\n \n\n \n\n3,719\n\n \n\n \n\n \n\n9,508\n\n \n\n \n\n \n\n1,228\n\n \n\nFee and other income\n\n \n\n \n\n449\n\n \n\n \n\n \n\n260\n\n \n\n \n\n \n\n582\n\n \n\nTotal revenues\n\n \n\n \n\n317,252\n\n \n\n \n\n \n\n309,043\n\n \n\n \n\n \n\n306,853\n\n \n\nExpenses\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nLoss and loss adjustment expenses incurred\n\n \n\n \n\n169,937\n\n \n\n \n\n \n\n157,267\n\n \n\n \n\n \n\n148,263\n\n \n\nUnderwriting and certain other operating costs\n\n \n\n \n\n27,625\n\n \n\n \n\n \n\n24,876\n\n \n\n \n\n \n\n27,508\n\n \n\nCommissions\n\n \n\n \n\n25,092\n\n \n\n \n\n \n\n23,750\n\n \n\n \n\n \n\n23,446\n\n \n\nSalaries and benefits\n\n \n\n \n\n33,264\n\n \n\n \n\n \n\n31,503\n\n \n\n \n\n \n\n27,359\n\n \n\nPolicyholder dividends\n\n \n\n \n\n2,526\n\n \n\n \n\n \n\n2,657\n\n \n\n \n\n \n\n2,957\n\n \n\nProvision for investment related credit loss benefit\n\n \n\n \n\n(43\n\n)\n\n \n\n \n\n(66\n\n)\n\n \n\n \n\n(57\n\n)\n\nTotal expenses\n\n \n\n \n\n258,401\n\n \n\n \n\n \n\n239,987\n\n \n\n \n\n \n\n229,476\n\n \n\nIncome before income taxes\n\n \n\n \n\n58,851\n\n \n\n \n\n \n\n69,056\n\n \n\n \n\n \n\n77,377\n\n \n\nIncome tax expense\n\n \n\n \n\n11,706\n\n \n\n \n\n \n\n13,620\n\n \n\n \n\n \n\n15,269\n\n \n\nNet income\n\n \n\n$\n\n47,145\n\n \n\n \n\n$\n\n55,436\n\n \n\n \n\n$\n\n62,108\n\n \n\nEarnings per share\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nBasic\n\n \n\n$\n\n2.48\n\n \n\n \n\n$\n\n2.91\n\n \n\n \n\n$\n\n3.24\n\n \n\nDiluted\n\n \n\n$\n\n2.47\n\n \n\n \n\n$\n\n2.89\n\n \n\n \n\n$\n\n3.23\n\n \n\nShares used in computing earnings per share\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nBasic\n\n \n\n \n\n18,979,465\n\n \n\n \n\n \n\n19,070,717\n\n \n\n \n\n \n\n19,149,080\n\n \n\nDiluted\n\n \n\n \n\n19,082,142\n\n \n\n \n\n \n\n19,159,805\n\n \n\n \n\n \n\n19,226,021\n\n \n\nSpecial cash dividends declared per common share\n\n \n\n$\n\n1.00\n\n \n\n \n\n$\n\n3.00\n\n \n\n \n\n$\n\n3.50\n\n \n\nCash dividends declared per common share\n\n \n\n$\n\n1.56\n\n \n\n \n\n$\n\n1.48\n\n \n\n \n\n$\n\n1.36\n\n \n\nSee accompanying notes.\n\n \n\n55\n\n \n\nAMERISAFE, INC. AND SUBSIDIARIES\n\nCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME\n\n(in thousands)\n\n \n\n \n\nYear Ended December 31,\n\n \n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\nNet income\n\n \n\n$\n\n47,145\n\n \n\n \n\n$\n\n55,436\n\n \n\n \n\n$\n\n62,108\n\n \n\nOther comprehensive income:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nUnrealized gain (loss) on debt securities, net of tax\n\n \n\n \n\n5,658\n\n \n\n \n\n \n\n(1,681\n\n)\n\n \n\n \n\n6,634\n\n \n\nComprehensive income\n\n \n\n$\n\n52,803\n\n \n\n \n\n$\n\n53,755\n\n \n\n \n\n$\n\n68,742\n\n \n\nSee accompanying notes.\n\n \n\n56\n\n \n\nAMERISAFE, INC. AND SUBSIDIARIES\n\nCONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY\n\n(in thousands, except share data)\n\n \n\n \n\nCommon Stock\n\n \n\n \n\n \n\n \n\n \n\nTreasury Stock\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nShares\n\n \n\n \n\nAmount\n\n \n\n \n\nAdditional\nPaid-In\nCapital\n\n \n\n \n\nShares\n\n \n\n \n\nAmounts\n\n \n\nAccumulated\nEarnings\n\nAccumulated\nOther\nComprehensive\nLoss\n\nTotal\n\n \n\nBalance at December 31, 2022\n\n \n\n \n\n20,678,572\n\n \n\n \n\n$\n\n207\n\n \n\n \n\n$\n\n220,299\n\n \n\n \n\n \n\n(1,522,699\n\n)\n\n \n\n$\n\n(34,758\n\n)\n\n \n\n$\n\n145,512\n\n \n\n \n\n$\n\n(13,828\n\n)\n\n \n\n \n\n317,432\n\n \n\nComprehensive income:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNet income\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n62,108\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n62,108\n\n \n\nOther comprehensive\n   income:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nChange in unrealized\n   losses on debt\n   securities, net of tax\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n6,634\n\n \n\n \n\n \n\n6,634\n\n \n\nComprehensive income\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n68,742\n\n \n\nCommon stock issued\n\n \n\n \n\n25,876\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n779\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n779\n\n \n\nPurchase of treasury stock\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(46,741\n\n)\n\n \n\n \n\n(2,171\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(2,171\n\n)\n\nShare-based compensation\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n1,000\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n1,000\n\n \n\nDividends to shareholders\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(93,331\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(93,331\n\n)\n\nBalance at December 31, 2023\n\n \n\n \n\n20,704,448\n\n \n\n \n\n$\n\n207\n\n \n\n \n\n$\n\n222,078\n\n \n\n \n\n \n\n(1,569,440\n\n)\n\n \n\n$\n\n(36,929\n\n)\n\n \n\n$\n\n114,289\n\n \n\n \n\n$\n\n(7,194\n\n)\n\n \n\n$\n\n292,451\n\n \n\nComprehensive income:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNet income\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n55,436\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n55,436\n\n \n\nOther comprehensive\n   income:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nChange in unrealized\n   losses on debt\n   securities, net of tax\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(1,681\n\n)\n\n \n\n \n\n(1,681\n\n)\n\nComprehensive income\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n53,755\n\n \n\nCommon stock issued\n\n \n\n \n\n28,718\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n440\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n440\n\n \n\nPurchase of treasury stock\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(113,411\n\n)\n\n \n\n \n\n(5,123\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(5,123\n\n)\n\nShare-based compensation\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n1,438\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n1,438\n\n \n\nDividends to shareholders\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(85,620\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(85,620\n\n)\n\nBalance at December 31, 2024\n\n \n\n \n\n20,733,166\n\n \n\n \n\n$\n\n207\n\n \n\n \n\n$\n\n223,956\n\n \n\n \n\n \n\n(1,682,851\n\n)\n\n \n\n$\n\n(42,052\n\n)\n\n \n\n$\n\n84,105\n\n \n\n \n\n$\n\n(8,875\n\n)\n\n \n\n$\n\n257,341\n\n \n\nComprehensive income:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNet income\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n47,145\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n47,145\n\n \n\nOther comprehensive\n   income:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nChange in unrealized\n   losses on debt\n   securities, net of tax\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n5,658\n\n \n\n \n\n \n\n5,658\n\n \n\nComprehensive income\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n52,803\n\n \n\nCommon stock issued\n\n \n\n \n\n35,855\n\n \n\n \n\n \n\n1\n\n \n\n \n\n \n\n798\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n799\n\n \n\nPurchase of treasury stock\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(291,289\n\n)\n\n \n\n \n\n(12,103\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(12,103\n\n)\n\nShare-based compensation\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n1,158\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n1,158\n\n \n\nDividends to shareholders\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(48,400\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(48,400\n\n)\n\nBalance at December 31, 2025\n\n \n\n \n\n20,769,021\n\n \n\n \n\n$\n\n208\n\n \n\n \n\n$\n\n225,912\n\n \n\n \n\n \n\n(1,974,140\n\n)\n\n \n\n$\n\n(54,155\n\n)\n\n \n\n$\n\n82,850\n\n \n\n \n\n$\n\n(3,217\n\n)\n\n \n\n$\n\n251,598\n\n \n\nSee accompanying notes.\n\n57\n\n \n\nAMERISAFE, INC. AND SUBSIDIARIES\n\nCONSOLIDATED STATEMENTS OF CASH FLOWS\n\n(in thousands)\n\n \n\n \n\n \n\nYear Ended December 31,\n\n \n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\nOperating activities\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNet income\n\n \n\n$\n\n47,145\n\n \n\n \n\n$\n\n55,436\n\n \n\n \n\n$\n\n62,108\n\n \n\nAdjustments to reconcile net income to net cash provided by operating\n   activities:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nDepreciation\n\n \n\n \n\n742\n\n \n\n \n\n \n\n1,093\n\n \n\n \n\n \n\n1,427\n\n \n\nNet amortization of investments\n\n \n\n \n\n563\n\n \n\n \n\n \n\n1,447\n\n \n\n \n\n \n\n3,025\n\n \n\nChange in investment related allowance for credit losses\n\n \n\n \n\n(43\n\n)\n\n \n\n \n\n(66\n\n)\n\n \n\n \n\n(57\n\n)\n\nDeferred income taxes\n\n \n\n \n\n372\n\n \n\n \n\n \n\n1,402\n\n \n\n \n\n \n\n628\n\n \n\nNet realized (gains) losses on investments\n\n \n\n \n\n(3,034\n\n)\n\n \n\n \n\n576\n\n \n\n \n\n \n\n(6,579\n\n)\n\nNet unrealized gains on equity securities\n\n \n\n \n\n(3,719\n\n)\n\n \n\n \n\n(9,508\n\n)\n\n \n\n \n\n(1,228\n\n)\n\nNet realized losses on disposal of assets\n\n \n\n \n\n—\n\n \n\n \n\n \n\n209\n\n \n\n \n\n \n\n2\n\n \n\nShare-based compensation\n\n \n\n \n\n2,907\n\n \n\n \n\n \n\n2,939\n\n \n\n \n\n \n\n1,557\n\n \n\nChanges in operating assets and liabilities:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nPremiums receivable, net\n\n \n\n \n\n(18,238\n\n)\n\n \n\n \n\n(12,056\n\n)\n\n \n\n \n\n(8,485\n\n)\n\nAccrued interest receivable\n\n \n\n \n\n364\n\n \n\n \n\n \n\n947\n\n \n\n \n\n \n\n154\n\n \n\nDeferred policy acquisition costs\n\n \n\n \n\n(1,934\n\n)\n\n \n\n \n\n(1,176\n\n)\n\n \n\n \n\n(574\n\n)\n\nAmounts held by others\n\n \n\n \n\n(2\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nOther assets\n\n \n\n \n\n(135\n\n)\n\n \n\n \n\n6,688\n\n \n\n \n\n \n\n(1,033\n\n)\n\nReserves for loss and loss adjustment expenses\n\n \n\n \n\n(37,726\n\n)\n\n \n\n \n\n(22,685\n\n)\n\n \n\n \n\n(22,043\n\n)\n\nUnearned premiums\n\n \n\n \n\n13,577\n\n \n\n \n\n \n\n5,341\n\n \n\n \n\n \n\n1,609\n\n \n\nReinsurance balances\n\n \n\n \n\n9,129\n\n \n\n \n\n \n\n11,926\n\n \n\n \n\n \n\n(3,740\n\n)\n\nAmounts held for others and policyholder deposits\n\n \n\n \n\n147\n\n \n\n \n\n \n\n(15,692\n\n)\n\n \n\n \n\n3,093\n\n \n\nFederal income taxes recoverable\n\n \n\n \n\n(908\n\n)\n\n \n\n \n\n(399\n\n)\n\n \n\n \n\n(328\n\n)\n\nAccounts payable and other liabilities\n\n \n\n \n\n1,863\n\n \n\n \n\n \n\n(2,232\n\n)\n\n \n\n \n\n306\n\n \n\nNet cash provided by operating activities\n\n \n\n \n\n11,070\n\n \n\n \n\n \n\n24,190\n\n \n\n \n\n \n\n29,842\n\n \n\nInvesting activities\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nPurchases of investments held-to-maturity\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(5,465\n\n)\n\n \n\n \n\n(42,190\n\n)\n\nPurchases of investments available-for-sale\n\n \n\n \n\n(43,123\n\n)\n\n \n\n \n\n(48,939\n\n)\n\n \n\n \n\n(45,141\n\n)\n\nPurchases of equity securities\n\n \n\n \n\n(254\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nPurchases of short-term investments\n\n \n\n \n\n(23,623\n\n)\n\n \n\n \n\n(56,295\n\n)\n\n \n\n \n\n(46,347\n\n)\n\nProceeds from maturities of investments held-to-maturity\n\n \n\n \n\n65,020\n\n \n\n \n\n \n\n71,066\n\n \n\n \n\n \n\n47,151\n\n \n\nProceeds from sales and maturities of investments available-for-sale\n\n \n\n \n\n45,371\n\n \n\n \n\n \n\n57,194\n\n \n\n \n\n \n\n57,153\n\n \n\nProceeds from sales of equity securities\n\n \n\n \n\n8,232\n\n \n\n \n\n \n\n7,933\n\n \n\n \n\n \n\n12,688\n\n \n\nProceeds from sales and maturities of short-term investments\n\n \n\n \n\n18,948\n\n \n\n \n\n \n\n47,717\n\n \n\n \n\n \n\n61,123\n\n \n\nPurchases of property and equipment\n\n \n\n \n\n(2,148\n\n)\n\n \n\n \n\n(840\n\n)\n\n \n\n \n\n(553\n\n)\n\nNet cash provided by investing activities\n\n \n\n \n\n68,423\n\n \n\n \n\n \n\n72,371\n\n \n\n \n\n \n\n43,884\n\n \n\nFinancing activities\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nFinance lease purchases\n\n \n\n \n\n(85\n\n)\n\n \n\n \n\n(85\n\n)\n\n \n\n \n\n(91\n\n)\n\nShare-based compensation related tax withholding\n\n \n\n \n\n(817\n\n)\n\n \n\n \n\n(554\n\n)\n\n \n\n \n\n(944\n\n)\n\nPurchase of treasury stock\n\n \n\n \n\n(12,103\n\n)\n\n \n\n \n\n(5,123\n\n)\n\n \n\n \n\n(2,171\n\n)\n\nDividends to shareholders\n\n \n\n \n\n(48,607\n\n)\n\n \n\n \n\n(85,436\n\n)\n\n \n\n \n\n(93,307\n\n)\n\nNet cash used in financing activities\n\n \n\n \n\n(61,612\n\n)\n\n \n\n \n\n(91,198\n\n)\n\n \n\n \n\n(96,513\n\n)\n\nChange in cash and cash equivalents\n\n \n\n \n\n17,881\n\n \n\n \n\n \n\n5,363\n\n \n\n \n\n \n\n(22,787\n\n)\n\nCash and cash equivalents at beginning of year\n\n \n\n \n\n44,045\n\n \n\n \n\n \n\n38,682\n\n \n\n \n\n \n\n61,469\n\n \n\nCash and cash equivalents at end of year\n\n \n\n$\n\n61,926\n\n \n\n \n\n$\n\n44,045\n\n \n\n \n\n$\n\n38,682\n\n \n\nSupplemental disclosure of cash flow information\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nIncome taxes paid, net of refunds received\n\n \n\n$\n\n12,450\n\n \n\n \n\n$\n\n12,849\n\n \n\n \n\n$\n\n14,912\n\n \n\n \n\nSee accompanying notes.\n\n58\n\nAMERISAFE, INC. AND SUBSIDIARIES\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\nDecember 31, 2025\n\n \n\n \n\n \n\n \n\n1.\nSummary of Significant Accounting Policies\n\nOrganization\n\nAMERISAFE, Inc. is an insurance holding company incorporated in the state of Texas. The accompanying consolidated financial statements include the accounts of AMERISAFE and its wholly-owned subsidiaries: American Interstate Insurance Company (AIIC) and its wholly-owned insurance subsidiaries, Silver Oak Casualty, Inc. (SOCI) and American Interstate Insurance Company of Texas (AIICTX); Amerisafe Risk Services, Inc. (RISK) and Amerisafe General Agency, Inc. (AGAI). AIIC and SOCI are property and casualty insurance companies organized under the laws of the state of Nebraska. AIICTX is a property and casualty insurance company organized under the laws of the state of Texas. RISK is a claims and safety service company currently servicing only affiliated insurance companies. AGAI is a general agent for the Company. AGAI sells insurance, which is underwritten by AIIC, SOCI and AIICTX, as well as by nonaffiliated insurance carriers.\n\nThe terms “AMERISAFE,” the “Company,” “we,” “us” or “our” refer to AMERISAFE, Inc. and its consolidated subsidiaries, as the context requires.\n\nThe Company provides workers’ compensation insurance for small to mid-sized employers engaged in hazardous industries, principally construction, trucking, logging and lumber, agriculture, services, manufacturing, and maritime. Assets and revenues of AIIC and its subsidiaries represent at least 95% of comparable consolidated amounts of the Company for each of 2025, 2024 and 2023.\n\nBasis of Presentation\n\nThe accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP). The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.\n\nReclassifications\n\n \n\nCertain prior year amounts have been reclassified to conform with the current year presentation.\n\nAdopted Accounting Guidance\n\n \n\nIn December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-09, Improvements to Income Tax Disclosures, that requires expanded income tax disclosures, including disaggregation of existing disclosures related to the tax rate reconciliation and income taxes paid. This update is effective for annual periods beginning after December 15, 2024. The Company adopted the new standard starting with this Annual Report on Form 10-K for the fiscal year ended December 31, 2025 using a retrospective approach. See Note 7, Income Taxes, for changes to the tax disclosure related to the new guidance.\n\n59\n\nAMERISAFE, INC. AND SUBSIDIARIES\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\nDecember 31, 2025\n\n \n\nProspective Accounting Guidance\n\n \n\nIn November 2024, the FASB issued ASU 2024-03, Expense Disaggregation Disclosures, which requires disclosure of specified information about certain costs and expenses in the notes to the financial statements. The guidance is effective for our Annual Report on Form 10-K for the year ended December 31, 2027, and interim reporting periods beginning in 2028. Early adoption of the new standard is permitted; however, we have not elected to early-adopt the standard. Prospective application is required, with retrospective application permitted. We are evaluating the impact of this disclosure-only requirement.\n\n \n\nIn September 2025, the FASB issued ASU 2025-06, Targeted Improvements to the Accounting for Internal-Use Software. This standard update modernizes the capitalization criteria for internal-use software, eliminating references to project stages and instead requiring that projects meet completion probability criteria before costs can be capitalized. This guidance is effective beginning first quarter 2028, though early adoption is permitted, and can be applied using a prospective, retrospective, or modified transition approach. The Company is currently evaluating the impact of these amendments but does not anticipate that adoption will have a material impact on the Company’s results of operations or financial position.\n\nInvestments\n\nThe Company has the ability and positive intent to hold certain investments until maturity. Therefore, fixed maturity securities classified as held-to-maturity are recorded at amortized cost net of the allowance for credit losses. Fixed maturity securities classified as available-for-sale are recorded at fair value. Temporary changes in the fair value of these securities are reported in shareholders’ equity as a component of other comprehensive income, net of deferred income taxes. Changes in the fair value of equity securities are recorded in net income.\n\nInvestment income is recognized as it is earned. The discount or premium on fixed maturity securities is amortized using the “constant yield” method. Anticipated prepayments, where applicable, are considered when determining the amortization of premiums or discounts. Realized investment gains and losses are determined using the specific identification method.\n\nCash and Cash Equivalents\n\nCash equivalents include short-term money market funds with a maturity date, at the time of purchase, of 90 days or less.\n\nShort-Term Investments\n\nShort-term investments include municipal securities and corporate bonds with an original maturity date greater than 90 days but less than one year.\n\nPremiums Receivable\n\nPremiums receivable consist primarily of premium-related balances due from policyholders. The Company considers premiums receivable as past due based on the payment terms of the underlying policy. The balance is shown net of the allowance for credit losses. Receivables due from insureds are charged off when a determination has been made by management that a specific balance will not be collected. An estimate of amounts that are likely to be charged off is established as an allowance for credit losses as of the balance sheet date. The estimate is primarily comprised of specific balances that are considered probable to be charged off after all collection efforts have ceased, as well as historical trends and an analysis of the aging of the receivables.\n\nProperty and Equipment\n\nThe Company’s property and equipment, including certain costs incurred to develop or obtain software for internal use, are stated at cost less accumulated depreciation. Depreciation is calculated primarily by the straight-line method over the estimated useful lives of the respective assets, generally 39 years for buildings and three to seven years for all other fixed assets.\n\nDeferred Policy Acquisition Costs\n\nThe direct costs of successfully acquiring and renewing business are capitalized to the extent recoverable and are amortized over the effective period of the related insurance policies in proportion to premium revenue earned. These capitalized costs consist mainly of sales commissions, premium taxes and other underwriting costs. The Company evaluates deferred policy acquisition costs for recoverability by comparing the unearned premiums to the estimated total expected claim costs and related expenses, offset by\n\n60\n\nAMERISAFE, INC. AND SUBSIDIARIES\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\nDecember 31, 2025\n\n \n\nanticipated investment income. The Company would reduce the deferred costs if the unearned premiums were less than expected claims and expenses after considering investment income, and report any adjustments in amortization of deferred policy acquisition costs. There were no adjustments necessary in 2025, 2024 or 2023.\n\nReserves for Loss and Loss Adjustment Expenses\n\nReserves for loss and loss adjustment expenses represent the estimated ultimate cost of all reported and unreported losses incurred through December 31. The Company does not discount loss and loss adjustment expense reserves. In establishing our reserves for loss and loss adjustment expenses, we review the results of analyses using individual case-base valuations and statistical and actuarial methods that utilize historical loss data from our more than 40 years of underwriting workers’ compensation insurance. The actuarial analysis of our historical data provides the factors we use in estimating our loss reserves. These factors are primarily measures over time of the number of claims paid and reported, average paid and incurred claim amounts, claim closure rates and claim payment patterns. In evaluating the results of our analyses, management also uses substantial judgment in considering other factors that are not considered in these actuarial analyses, including changes in business mix, claims management, regulatory issues, medical trends, employment and wage patterns, insurance policy coverage interpretations, judicial determinations and other subjective factors. Due to the inherent uncertainty associated with these estimates, and the cost of incurred but unreported claims, our actual liabilities may vary significantly from our original estimates. Although considerable variability is inherent in these estimates, management believes that the reserves for loss and loss adjustment expenses are adequate. The estimates are continually reviewed and adjusted as necessary as experience develops or new information becomes known. Any such adjustments are included in income from current operations.\n\nSubrogation recoverables, as well as deductible recoverables from policyholders, are estimated using individual case-basis valuations and aggregate estimates. Deductibles that are recoverable from policyholders and other recoverables from state funds decrease the liability for loss and loss adjustment expenses.\n\nThe Company funds its obligations under certain settled claims where the payment pattern and ultimate cost are fixed and determinable on an individual claim basis through the purchase of annuities. These annuities are purchased from unaffiliated carriers and name the claimant as payee. The cost of purchasing the annuity is recorded as paid loss and loss adjustment expenses. To the extent the annuity funds estimated future claims, reserves for loss and loss adjustment expense are reduced.\n\nPremium Revenue\n\nPremiums on workers’ compensation insurance are based on actual payroll costs or production during the policy term and are normally billed monthly in arrears or annually. However, the Company generally requires a deposit at the inception of a policy.\n\nPremium revenue is earned on a pro rata basis over periods covered by the policies. The reserve for unearned premiums on these policies is computed on a daily pro rata basis.\n\nThe Company estimates the annual premiums to be paid by its policyholders when the Company issues the policies and records those amounts on the balance sheet as premiums receivable. The Company conducts premium audits on all of its voluntary business policyholders annually, upon the expiration of each policy, including when the policy is renewed. The purpose of these audits is to verify that policyholders have accurately reported their payroll expenses and employee job classifications, and therefore have paid the Company the premium required under the terms of the policies. The difference between the estimated premium and the ultimate premium is referred to as “earned but unbilled” (EBUB) premium. EBUB premium can be higher or lower than the estimated premium. EBUB premium is subject to significant variability and can either increase or decrease earned premium based upon several factors, including changes in premium growth, industry mix and economic conditions. Due to the timing of audits and other adjustments, ultimate premium earned is generally not determined for several months after the expiration of the policy.\n\nThe Company estimates EBUB premiums on a quarterly basis using historical data and applying various assumptions based on the current market and economic conditions, and records an adjustment to premium, related losses, and expenses as warranted.\n\nReinsurance\n\nReinsurance premiums, losses and allocated loss adjustment expenses are accounted for on a basis consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts.\n\n61\n\nAMERISAFE, INC. AND SUBSIDIARIES\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\nDecember 31, 2025\n\n \n\nAmounts recoverable from reinsurers include balances currently owed to the Company for losses and allocated loss adjustment expenses that have been paid to policyholders, amounts that are currently reserved for and will be recoverable once the related expense has been paid and experience-rated commissions recoverable upon commutation.\n\nUpon management’s determination that an amount due from a reinsurer is uncollectible due to the reinsurer’s insolvency or other matters, the amount is written off.\n\nCeding commissions are earned from certain reinsurance companies and are intended to reimburse the Company for policy acquisition costs related to those premiums ceded to the reinsurers. Ceding commission income is recognized over the effective period of the related insurance policies in proportion to premium revenue earned and is reflected as a reduction in underwriting and certain other operating costs.\n\nExperience-rated commissions are earned from certain reinsurance companies based on the financial results of the applicable risks ceded to the reinsurers. These commission revenues on reinsurance contracts are recognized during the related reinsurance treaty period and are based on the same assumptions used for recording loss and allocated loss adjustment expenses. These commissions are reflected as a reduction in underwriting and certain other operating costs and are adjusted as necessary as experience develops or new information becomes known. Any such adjustments are included in income from current operations. Experience-rated commissions decreased underwriting and certain other operating costs by $0.7 million in 2025, $1.0 million in 2024 and $1.7 million in 2023.\n\nIn December 2025, the Company commuted reinsurance agreements with multiple reinsurers covering a portion of accident year 2023. As a result of the commutation, we recorded pre-tax income of approximately $0.8 million.\n\nIn December 2024, the Company commuted reinsurance agreements with Hannover Re and Tokio Millennium Re covering portions of accident years 2012-2014. The Company received a $6.3 million payment effectuated solely through offset against the balance of the funds withheld and recoverable from reinsurers' accounts under the reinsurance agreements in exchange for releasing Hannover Re and Tokio Millennium Re from their reinsurance obligations under the commuted agreements. Hannover Re and Tokio Millennium Re remain obligated to the subsidiaries of the Company under other reinsurance agreements. As a result of the commutation, we recorded a pre-tax loss of approximately $1.5 million.\n\nIn December 2024, the Company commuted reinsurance agreements with Hannover Re and Allianz Risk Transfer covering portions of accident years 2014-2016. The Company received a $9.8 million payment effectuated solely through offset against the balance of the funds withheld and recoverable from reinsurers' accounts under the reinsurance agreements in exchange for releasing Hannover Re and Allianz Risk Transfer from their reinsurance obligations under the commuted agreements. Hannover Re and Allianz Risk Transfer remain obligated to the subsidiaries of the Company under other reinsurance agreements. The effect on the Company's net income as a result of the commutation was immaterial.\n\nFee and Other Income\n\nThe Company recognizes income related to commissions earned by AGAI as the related services are performed.\n\nAdvertising\n\nAll advertising expenditures incurred by the Company are charged to expense in the period to which they relate and are included in underwriting and certain other operating costs in the consolidated statements of income. Total advertising expenses incurred were $0.3 million in 2025, and $0.3 in both 2024 and 2023.\n\nIncome Taxes\n\nThe Company accounts for income taxes using the liability method. The provision for income taxes has two components, amounts currently payable or receivable and deferred amounts. Deferred income tax assets and liabilities are recognized for the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred income tax assets and liabilities are measured using tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.\n\n62\n\nAMERISAFE, INC. AND SUBSIDIARIES\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\nDecember 31, 2025\n\n \n\nThe Company considers deferred tax assets to be recoverable if it is probable that the related tax losses can be offset by future taxable income. The Company includes reversal of existing temporary differences, tax planning strategies available and future operating income in this assessment. To the extent the deferred tax assets exceed the amount expected to be recovered in future years, the Company records a valuation allowance for the amount determined unrecoverable.\n\nInsurance-Related Assessments\n\nInsurance-related assessments are accrued in the period in which they have been incurred. The Company is subject to a variety of assessments related to insurance commerce, including those by state guaranty funds and workers’ compensation second-injury funds. State guaranty fund assessments are used by state insurance oversight agencies to cover losses of policyholders of insolvent or rehabilitated insurance companies and for the operating expenses of such agencies. Assessments based on premiums are generally paid one year after the calendar year in which the premium is written, while assessments based on losses are generally paid within one year of the calendar year in which the loss is paid.\n\nPolicyholder Dividends\n\nThe Company writes certain policies for which the policyholder may participate in favorable claims experience through a dividend. An estimated provision for workers’ compensation policyholders’ dividends is accrued as the related premiums are earned. Dividends do not become a fixed liability unless and until declared by the respective boards of directors of AMERISAFE’s insurance subsidiaries. The dividend to which a policyholder may be entitled is set forth in the policy and is related to the amount of losses sustained under the policy. Dividends are calculated after the policy expiration. The Company is able to estimate the policyholder dividend liability because the Company has information regarding the underlying loss experience of the policies written with dividend provisions and can estimate future dividend payments from the policy terms.\n\nEarnings Per Share\n\nThe Company computes earnings per share (EPS) in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 260, Earnings Per Share. The Company has no participating unvested common shares which contain nonforfeitable rights to dividends and applies the treasury stock method in computing basic and diluted earnings per share.\n\nBasic EPS is calculated by dividing net income by the weighted average number of common shares outstanding during the period. The diluted EPS calculation includes potential common shares assumed issued under the treasury stock method, which reflects the potential dilution that would occur if any outstanding options or warrants were exercised or restricted stock becomes vested.\n\nShare-Based Compensation\n\nThe Company recognizes the impact of its share-based compensation in accordance with FASB ASC Topic 718, Compensation-Stock Compensation. All share-based grants are recognized as compensation expense over the vesting period. The target value of long-term incentive performance awards are recognized as compensation over the performance period.\n\n \n\n2.\nInvestments\n\n \n\nShort-term investments held at December 31, 2025 included $14.2 million of corporate bonds. Short-term investments held at December 31, 2024 included $9.3 million of corporate bonds.\n\n \n\n \n\n63\n\nAMERISAFE, INC. AND SUBSIDIARIES\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\nDecember 31, 2025\n\n \n\nThe amortized cost, allowance for credit losses, carrying amount, gross unrecognized gains and losses, and the fair value of those investments classified as held-to-maturity at December 31, 2025 are summarized as follows:\n\n \n\n \n\nAmortized\nCost\n\n \n\n \n\nAllowance for Credit Losses\n\n \n\n \n\nCarrying\nAmount\n\n \n\n \n\nGross\nUnrecognized\nGains\n\n \n\n \n\nGross\nUnrecognized\nLosses\n\n \n\n \n\nFair\nValue\n\n \n\n \n\n \n\n(in thousands)\n\n \n\nStates and political subdivisions\n\n \n\n$\n\n322,430\n\n \n\n \n\n$\n\n(23\n\n)\n\n \n\n$\n\n322,407\n\n \n\n \n\n$\n\n2,030\n\n \n\n \n\n$\n\n(6,908\n\n)\n\n \n\n$\n\n317,529\n\n \n\nCorporate bonds\n\n \n\n \n\n16,751\n\n \n\n \n\n \n\n(50\n\n)\n\n \n\n \n\n16,701\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(456\n\n)\n\n \n\n \n\n16,245\n\n \n\nU.S. agency-based mortgage-backed\n   securities\n\n \n\n \n\n2,403\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n2,403\n\n \n\n \n\n \n\n26\n\n \n\n \n\n \n\n(81\n\n)\n\n \n\n \n\n2,348\n\n \n\nU.S. Treasury securities and obligations\n   of U.S. government agencies\n\n \n\n \n\n8,567\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n8,567\n\n \n\n \n\n \n\n6\n\n \n\n \n\n \n\n(128\n\n)\n\n \n\n \n\n8,445\n\n \n\nAsset-backed securities\n\n \n\n \n\n9\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n9\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n9\n\n \n\nTotals\n\n \n\n$\n\n350,160\n\n \n\n \n\n$\n\n(73\n\n)\n\n \n\n$\n\n350,087\n\n \n\n \n\n$\n\n2,062\n\n \n\n \n\n$\n\n(7,573\n\n)\n\n \n\n$\n\n344,576\n\n \n\nThe amortized cost, gross unrealized gains and losses, fair value, and the allowance for credit losses of those investments classified as available-for-sale at December 31, 2025 are summarized as follows:\n\n \n\n \n\nAmortized\nCost\n\n \n\n \n\nGross\nUnrealized\nGains\n\n \n\n \n\nGross\nUnrealized\nLosses\n\n \n\n \n\nFair\nValue\n\n \n\n \n\nAllowance for Credit Losses\n\n \n\n \n\n \n\n(in thousands)\n\n \n\nStates and political subdivisions\n\n \n\n$\n\n163,042\n\n \n\n \n\n$\n\n630\n\n \n\n \n\n$\n\n(5,482\n\n)\n\n \n\n$\n\n158,190\n\n \n\n \n\n$\n\n—\n\n \n\nCorporate bonds\n\n \n\n \n\n137,198\n\n \n\n \n\n \n\n2,231\n\n \n\n \n\n \n\n(725\n\n)\n\n \n\n \n\n138,704\n\n \n\n \n\n \n\n—\n\n \n\nU.S. agency-based mortgage-backed securities\n\n \n\n \n\n3,946\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(305\n\n)\n\n \n\n \n\n3,641\n\n \n\n \n\n \n\n—\n\n \n\nU.S. Treasury securities and obligations\n   of U.S. government agencies\n\n \n\n \n\n12,930\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(427\n\n)\n\n \n\n \n\n12,503\n\n \n\n \n\n \n\n—\n\n \n\nTotals\n\n \n\n$\n\n317,116\n\n \n\n \n\n$\n\n2,861\n\n \n\n \n\n$\n\n(6,939\n\n)\n\n \n\n$\n\n313,038\n\n \n\n \n\n$\n\n—\n\n \n\nThe cost, gross unrealized gains and losses, and the fair value of equity securities at December 31, 2025 are summarized as follows:\n\n \n\n \n\n \n\nCost\n\n \n\n \n\nGross\nUnrealized\nGains\n\n \n\n \n\nGross\nUnrealized\nLosses\n\n \n\n \n\nFair\nValue\n\n \n\n \n\n \n\n(in thousands)\n\n \n\nEquity securities:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nDomestic common stock - Exchange Traded Funds\n\n \n\n$\n\n31,165\n\n \n\n \n\n$\n\n26,328\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n57,493\n\n \n\nTotal equity securities\n\n \n\n$\n\n31,165\n\n \n\n \n\n$\n\n26,328\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n57,493\n\n \n\n \n\n \n\nThe amortized cost, allowance for credit losses, carrying amount, gross unrealized gains and losses, and the fair value of those investments classified as held-to-maturity at December 31, 2024 are summarized as follows:\n\n \n\n \n\nAmortized\nCost\n\n \n\n \n\nAllowance for Credit Losses\n\n \n\n \n\nCarrying\nAmount\n\n \n\n \n\nGross\nUnrecognized\nGains\n\n \n\n \n\nGross\nUnrecognized\nLosses\n\n \n\n \n\nFair\nValue\n\n \n\n \n\n \n\n(in thousands)\n\n \n\nStates and political subdivisions\n\n \n\n$\n\n368,056\n\n \n\n \n\n$\n\n(30\n\n)\n\n \n\n$\n\n368,026\n\n \n\n \n\n$\n\n1,810\n\n \n\n \n\n$\n\n(13,568\n\n)\n\n \n\n$\n\n356,268\n\n \n\nCorporate bonds\n\n \n\n \n\n33,849\n\n \n\n \n\n \n\n(86\n\n)\n\n \n\n \n\n33,763\n\n \n\n \n\n \n\n6\n\n \n\n \n\n \n\n(1,099\n\n)\n\n \n\n \n\n32,670\n\n \n\nU.S. agency-based mortgage-backed\n   securities\n\n \n\n \n\n2,781\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n2,781\n\n \n\n \n\n \n\n11\n\n \n\n \n\n \n\n(149\n\n)\n\n \n\n \n\n2,643\n\n \n\nU.S. Treasury securities and obligations\n   of U.S. government agencies\n\n \n\n \n\n8,478\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n8,478\n\n \n\n \n\n \n\n11\n\n \n\n \n\n \n\n(362\n\n)\n\n \n\n \n\n8,127\n\n \n\nAsset-backed securities\n\n \n\n \n\n13\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n13\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n13\n\n \n\nTotals\n\n \n\n$\n\n413,177\n\n \n\n \n\n$\n\n(116\n\n)\n\n \n\n$\n\n413,061\n\n \n\n \n\n$\n\n1,838\n\n \n\n \n\n$\n\n(15,178\n\n)\n\n \n\n$\n\n399,721\n\n \n\n64\n\nAMERISAFE, INC. AND SUBSIDIARIES\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\nDecember 31, 2025\n\n \n\nThe amortized cost, gross unrealized gains and losses, fair value, and the allowance for credit losses of those investments classified as available-for-sale at December 31, 2024 are summarized as follows:\n\n \n\n \n\nAmortized\nCost\n\n \n\n \n\nGross\nUnrealized\nGains\n\n \n\n \n\nGross\nUnrealized\nLosses\n\n \n\n \n\nFair\nValue\n\n \n\n \n\nAllowance for Credit Losses\n\n \n\n \n\n \n\n(in thousands)\n\n \n\nStates and political subdivisions\n\n \n\n$\n\n156,488\n\n \n\n \n\n$\n\n148\n\n \n\n \n\n$\n\n(8,430\n\n)\n\n \n\n$\n\n148,206\n\n \n\n \n\n$\n\n—\n\n \n\nCorporate bonds\n\n \n\n \n\n143,070\n\n \n\n \n\n \n\n1,248\n\n \n\n \n\n \n\n(2,783\n\n)\n\n \n\n \n\n141,535\n\n \n\n \n\n \n\n—\n\n \n\nU.S. agency-based mortgage-backed securities\n\n \n\n \n\n4,545\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(486\n\n)\n\n \n\n \n\n4,059\n\n \n\n \n\n \n\n—\n\n \n\nU.S. Treasury securities and obligations\n   of U.S. government agencies\n\n \n\n \n\n14,872\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(922\n\n)\n\n \n\n \n\n13,950\n\n \n\n \n\n \n\n—\n\n \n\nTotals\n\n \n\n$\n\n318,975\n\n \n\n \n\n$\n\n1,396\n\n \n\n \n\n$\n\n(12,621\n\n)\n\n \n\n$\n\n307,750\n\n \n\n \n\n$\n\n—\n\n \n\nThe cost, gross unrealized gains and losses, and fair value of equity securities at December 31, 2024 are summarized as follows:\n\n \n\n \n\n \n\nCost\n\n \n\n \n\nGross\nUnrealized\nGains\n\n \n\n \n\nGross\nUnrealized\nLosses\n\n \n\n \n\nFair\nValue\n\n \n\n \n\n \n\n(in thousands)\n\n \n\nEquity securities:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nDomestic common stock - Exchange Traded Funds\n\n \n\n$\n\n36,020\n\n \n\n \n\n$\n\n22,609\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n58,629\n\n \n\nTotal equity securities\n\n \n\n$\n\n36,020\n\n \n\n \n\n$\n\n22,609\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n58,629\n\n \n\n \n\nA summary of the carrying amounts and fair value of investments in fixed maturity securities classified as held-to-maturity, by contractual maturity, is as follows:\n\n \n\n \n\n \n\nDecember 31, 2025\n\n \n\n \n\nDecember 31, 2024\n\n \n\n \n\n \n\nCarrying\nAmount\n\n \n\n \n\nFair\nValue\n\n \n\n \n\nCarrying\nAmount\n\n \n\n \n\nFair\nValue\n\n \n\n \n\n \n\n(in thousands)\n\n \n\nMaturity:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nWithin one year\n\n \n\n$\n\n28,620\n\n \n\n \n\n$\n\n28,561\n\n \n\n \n\n$\n\n49,303\n\n \n\n \n\n$\n\n48,831\n\n \n\nAfter one year through five years\n\n \n\n \n\n76,161\n\n \n\n \n\n \n\n74,506\n\n \n\n \n\n \n\n93,087\n\n \n\n \n\n \n\n89,418\n\n \n\nAfter five years through ten years\n\n \n\n \n\n119,321\n\n \n\n \n\n \n\n116,970\n\n \n\n \n\n \n\n115,307\n\n \n\n \n\n \n\n109,812\n\n \n\nAfter ten years\n\n \n\n \n\n123,573\n\n \n\n \n\n \n\n122,182\n\n \n\n \n\n \n\n152,570\n\n \n\n \n\n \n\n149,004\n\n \n\nU.S. agency-based mortgage-backed securities\n\n \n\n \n\n2,403\n\n \n\n \n\n \n\n2,348\n\n \n\n \n\n \n\n2,781\n\n \n\n \n\n \n\n2,643\n\n \n\nAsset-backed securities\n\n \n\n \n\n9\n\n \n\n \n\n \n\n9\n\n \n\n \n\n \n\n13\n\n \n\n \n\n \n\n13\n\n \n\nTotals\n\n \n\n$\n\n350,087\n\n \n\n \n\n$\n\n344,576\n\n \n\n \n\n$\n\n413,061\n\n \n\n \n\n$\n\n399,721\n\n \n\n \n\n \n\nA summary of the amortized cost and fair value of investments in fixed maturity securities classified as available-for-sale, by contractual maturity, is as follows:\n\n \n\n \n\nDecember 31, 2025\n\n \n\n \n\nDecember 31, 2024\n\n \n\n \n\n \n\nAmortized\nCost\n\n \n\n \n\nFair\nValue\n\n \n\n \n\nAmortized\nCost\n\n \n\n \n\nFair\nValue\n\n \n\n \n\n \n\n(in thousands)\n\n \n\nMaturity:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nWithin one year\n\n \n\n$\n\n41,029\n\n \n\n \n\n$\n\n40,939\n\n \n\n \n\n$\n\n23,944\n\n \n\n \n\n$\n\n23,806\n\n \n\nAfter one year through five years\n\n \n\n \n\n76,260\n\n \n\n \n\n \n\n75,796\n\n \n\n \n\n \n\n97,996\n\n \n\n \n\n \n\n95,500\n\n \n\nAfter five years through ten years\n\n \n\n \n\n76,895\n\n \n\n \n\n \n\n76,076\n\n \n\n \n\n \n\n71,233\n\n \n\n \n\n \n\n68,494\n\n \n\nAfter ten years\n\n \n\n \n\n118,986\n\n \n\n \n\n \n\n116,586\n\n \n\n \n\n \n\n121,257\n\n \n\n \n\n \n\n115,891\n\n \n\nU.S. agency-based mortgage-backed securities\n\n \n\n \n\n3,946\n\n \n\n \n\n \n\n3,641\n\n \n\n \n\n \n\n4,545\n\n \n\n \n\n \n\n4,059\n\n \n\nTotals\n\n \n\n$\n\n317,116\n\n \n\n \n\n$\n\n313,038\n\n \n\n \n\n$\n\n318,975\n\n \n\n \n\n$\n\n307,750\n\n \n\nActual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay certain obligations with or without call or prepayment penalties.\n\n65\n\nAMERISAFE, INC. AND SUBSIDIARIES\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\nDecember 31, 2025\n\n \n\nAt December 31, 2025, there were $23.6 million of held-to-maturity and $2.1 million of available-for-sale investments on deposit with regulatory agencies of states in which the Company does business.\n\n \n\nA summary of the Company’s realized gains and losses on sales, calls or redemptions of investments for 2025, 2024 and 2023 is as follows:\n\n \n\n \n\nFixed Maturity\nSecurities\nAvailable-for-Sale\n\n \n\n \n\nEquity\nSecurities\n\n \n\n \n\nOther\n\n \n\n \n\nTotal\n\n \n\n \n\n \n\n(in thousands)\n\n \n\nYear ended December 31, 2025\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nProceeds from sales\n\n \n\n$\n\n3,991\n\n \n\n \n\n$\n\n8,232\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n12,223\n\n \n\nGross realized investment gains\n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n3,122\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n3,122\n\n \n\nGross realized investment losses\n\n \n\n \n\n(3\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(3\n\n)\n\nNet realized investment gains (losses)\n\n \n\n \n\n(3\n\n)\n\n \n\n \n\n3,122\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n3,119\n\n \n\nOther, including gains (losses) on calls and redemptions\n\n \n\n \n\n(90\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n5\n\n \n\n \n\n \n\n(85\n\n)\n\nNet realized gains (losses) on investments\n\n \n\n$\n\n(93\n\n)\n\n \n\n$\n\n3,122\n\n \n\n \n\n$\n\n5\n\n \n\n \n\n$\n\n3,034\n\n \n\nYear ended December 31, 2024\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nProceeds from sales\n\n \n\n$\n\n26,327\n\n \n\n \n\n$\n\n7,933\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n34,260\n\n \n\nGross realized investment gains\n\n \n\n$\n\n10\n\n \n\n \n\n$\n\n1,044\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n1,054\n\n \n\nGross realized investment losses\n\n \n\n \n\n(310\n\n)\n\n \n\n \n\n(1,136\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(1,446\n\n)\n\nNet realized investment losses\n\n \n\n \n\n(300\n\n)\n\n \n\n \n\n(92\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(392\n\n)\n\nOther, including gains (losses) on calls and redemptions\n\n \n\n \n\n129\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(313\n\n)\n\n \n\n \n\n(184\n\n)\n\nNet realized losses on investments\n\n \n\n$\n\n(171\n\n)\n\n \n\n$\n\n(92\n\n)\n\n \n\n$\n\n(313\n\n)\n\n \n\n$\n\n(576\n\n)\n\nYear ended December 31, 2023\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nProceeds from sales\n\n \n\n$\n\n28,292\n\n \n\n \n\n$\n\n12,688\n\n \n\n \n\n$\n\n925\n\n \n\n \n\n$\n\n41,905\n\n \n\nGross realized investment gains\n\n \n\n$\n\n181\n\n \n\n \n\n$\n\n6,548\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n6,729\n\n \n\nGross realized investment losses\n\n \n\n \n\n(173\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(173\n\n)\n\nNet realized investment gains\n\n \n\n \n\n8\n\n \n\n \n\n \n\n6,548\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n6,556\n\n \n\nOther, including gains on calls and redemptions\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n23\n\n \n\n \n\n \n\n23\n\n \n\nNet realized gains on investments\n\n \n\n$\n\n8\n\n \n\n \n\n$\n\n6,548\n\n \n\n \n\n$\n\n23\n\n \n\n \n\n$\n\n6,579\n\n \n\n \n\n \n\nMajor categories of the Company’s net investment income are summarized as follows:\n\n \n\n \n\nYear Ended December 31,\n\n \n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\n \n\n \n\n(in thousands)\n\n \n\nGross investment income:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nFixed maturity securities\n\n \n\n$\n\n25,980\n\n \n\n \n\n$\n\n26,341\n\n \n\n \n\n$\n\n26,357\n\n \n\nEquity securities\n\n \n\n \n\n743\n\n \n\n \n\n \n\n1,003\n\n \n\n \n\n \n\n1,456\n\n \n\nShort-term investments and cash and cash equivalents\n\n \n\n \n\n2,698\n\n \n\n \n\n \n\n3,949\n\n \n\n \n\n \n\n4,456\n\n \n\nTotal gross investment income\n\n \n\n \n\n29,421\n\n \n\n \n\n \n\n31,293\n\n \n\n \n\n \n\n32,269\n\n \n\nInvestment expenses\n\n \n\n \n\n(2,428\n\n)\n\n \n\n \n\n(2,081\n\n)\n\n \n\n \n\n(930\n\n)\n\nNet investment income\n\n \n\n$\n\n26,993\n\n \n\n \n\n$\n\n29,212\n\n \n\n \n\n$\n\n31,339\n\n \n\n66\n\nAMERISAFE, INC. AND SUBSIDIARIES\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\nDecember 31, 2025\n\n \n\nThe following table summarizes the fair value and gross unrealized losses on fixed maturity securities classified as available-for-sale, aggregated by major investment category and length of time that the individual securities have been in a continuous unrealized loss position:\n\n \n\n \n\nLess Than 12 Months\n\n \n\n \n\n12 Months or Greater\n\n \n\n \n\nTotal\n\n \n\n \n\n \n\nFair Value of\nInvestments\nwith\nUnrealized\nLosses\n\n \n\n \n\nGross\nUnrealized\nLosses\n\n \n\n \n\nFair Value of\nInvestments\nwith\nUnrealized\nLosses\n\n \n\n \n\nGross\nUnrealized\nLosses\n\n \n\n \n\nFair Value of\nInvestments\nwith\nUnrealized\nLosses\n\n \n\n \n\nGross\nUnrealized\nLosses\n\n \n\n \n\n \n\n(in thousands)\n\n \n\nDecember 31, 2025\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nAvailable-for-Sale\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nStates and political subdivisions\n\n \n\n$\n\n28,892\n\n \n\n \n\n$\n\n634\n\n \n\n \n\n$\n\n76,440\n\n \n\n \n\n$\n\n4,848\n\n \n\n \n\n$\n\n105,332\n\n \n\n \n\n$\n\n5,482\n\n \n\nCorporate bonds\n\n \n\n \n\n5,537\n\n \n\n \n\n \n\n8\n\n \n\n \n\n \n\n31,115\n\n \n\n \n\n \n\n717\n\n \n\n \n\n \n\n36,652\n\n \n\n \n\n \n\n725\n\n \n\nU.S. agency-based mortgage-backed\n   securities\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n3,641\n\n \n\n \n\n \n\n305\n\n \n\n \n\n \n\n3,641\n\n \n\n \n\n \n\n305\n\n \n\nU.S. Treasury securities and\n   obligations of U.S. government\n   agencies\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n12,503\n\n \n\n \n\n \n\n427\n\n \n\n \n\n \n\n12,503\n\n \n\n \n\n \n\n427\n\n \n\nTotal available-for-sale securities\n\n \n\n$\n\n34,429\n\n \n\n \n\n$\n\n642\n\n \n\n \n\n$\n\n123,699\n\n \n\n \n\n$\n\n6,297\n\n \n\n \n\n$\n\n158,128\n\n \n\n \n\n$\n\n6,939\n\n \n\nDecember 31, 2024\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nAvailable-for-Sale\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nStates and political subdivisions\n\n \n\n$\n\n100,190\n\n \n\n \n\n$\n\n5,748\n\n \n\n \n\n$\n\n27,446\n\n \n\n \n\n$\n\n2,682\n\n \n\n \n\n$\n\n127,636\n\n \n\n \n\n$\n\n8,430\n\n \n\nCorporate bonds\n\n \n\n \n\n71,069\n\n \n\n \n\n \n\n1,790\n\n \n\n \n\n \n\n19,000\n\n \n\n \n\n \n\n993\n\n \n\n \n\n \n\n90,069\n\n \n\n \n\n \n\n2,783\n\n \n\nU.S. agency-based mortgage-backed\n   securities\n\n \n\n \n\n3,840\n\n \n\n \n\n \n\n446\n\n \n\n \n\n \n\n219\n\n \n\n \n\n \n\n40\n\n \n\n \n\n \n\n4,059\n\n \n\n \n\n \n\n486\n\n \n\nU.S. Treasury securities and\n   obligations of U.S. government\n   agencies\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n13,950\n\n \n\n \n\n \n\n922\n\n \n\n \n\n \n\n13,950\n\n \n\n \n\n \n\n922\n\n \n\nTotal available-for-sale securities\n\n \n\n$\n\n175,099\n\n \n\n \n\n$\n\n7,984\n\n \n\n \n\n$\n\n60,615\n\n \n\n \n\n$\n\n4,637\n\n \n\n \n\n$\n\n235,714\n\n \n\n \n\n$\n\n12,621\n\n \n\nAt December 31, 2025, the Company held 144 individual fixed maturity securities classified as available-for-sale that were in an unrealized loss position, of which 118 were in a continuous unrealized loss position for longer than 12 months.\n\nThe following table illustrates the changes in the allowance for credit losses by major security type of the investments classified as held-to-maturity for the year ended December 31, 2025.\n\n \n\n \n\n \n\nStates and\nPolitical\nSubdivisions\n\n \n\n \n\nCorporate\nBonds\n\n \n\n \n\nU.S. Agency\n-Based\nMortgage-\nBacked\nSecurities\n\n \n\n \n\nU.S.\nTreasury\nSecurities\nand\nObligations\nof U.S.\nGovernment\nAgencies\n\n \n\n \n\nAsset-Backed\nSecurities\n\n \n\n \n\nTotals\n\n \n\n \n\n \n\n(in thousands)\n\n \n\nBalance at December 31, 2024\n\n \n\n$\n\n30\n\n \n\n \n\n$\n\n86\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n116\n\n \n\nProvision for credit loss benefit\n\n \n\n \n\n(7\n\n)\n\n \n\n \n\n(36\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(43\n\n)\n\nBalance at December 31, 2025\n\n \n\n$\n\n23\n\n \n\n \n\n$\n\n50\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n73\n\n \n\n \n\n67\n\nAMERISAFE, INC. AND SUBSIDIARIES\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\nDecember 31, 2025\n\n \n\nThe Company has established an allowance for credit losses on 269 held-to-maturity securities totaling $0.1 million as of December 31, 2025. The majority of those securities were issued by states and political subdivisions and corporate bonds at 259 and 9, respectively.\n\nThe Company has no allowance for credit losses on investments classified as available-for-sale as of December 31, 2025 and 2024.\n\nThe credit rating used for held-to-maturity fixed income securities is the rating for each security as published by Moody’s, Standard and Poor’s, and Fitch to determine the probability of default. If there are three ratings, the median rating is used. If there are only two ratings, the lower rating is used. If there is one rating, that rating is used. For corporate fixed income securities (given a rating), the probability of default comes from Moody’s annual study of corporate bond defaults published each February. The maximum maturity using the default rate is 20 years (any maturity greater than 20 years will use the 20-year rate). For municipal fixed income securities (given a rating), the probability of default comes from Moody’s annual study of municipal bond defaults published annually.\n\nThe calculation of the credit loss allowance takes the amortized cost of the fixed income security and assumes default and recovery based on the average recovery rates from the Moody’s default studies. The amortized cost of the security plus any accrued interest, minus the amount recovered, is the estimated full amount the Company could lose in a default scenario. Then this amount is multiplied by the probability of default to determine the allowance for credit loss. The lower the security is rated, the higher likelihood of default, and therefore a higher allowance for credit loss. The longer to the maturity date of a security, the higher the default risk.\n\nThe table below presents the amortized cost of held-to-maturity securities aggregated by credit quality indicator as of December 31, 2025.\n\n \n\n \n\n \n\nStates and\nPolitical\nSubdivisions\n\n \n\n \n\nCorporate\nBonds\n\n \n\n \n\nU.S. Agency\n-Based\nMortgage-\nBacked\nSecurities\n\n \n\n \n\nU.S.\nTreasury\nSecurities\nand\nObligations\nof U.S.\nGovernment\nAgencies\n\n \n\n \n\nAsset-Backed\nSecurities\n\n \n\n \n\nTotals\n\n \n\n \n\n \n\nAmortized Cost\n\n \n\n \n\n \n\n(in thousands)\n\n \n\nAAA/AA/A ratings\n\n \n\n$\n\n322,430\n\n \n\n \n\n$\n\n9,784\n\n \n\n \n\n$\n\n2,403\n\n \n\n \n\n$\n\n8,567\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n343,184\n\n \n\nBaa/BBB ratings\n\n \n\n \n\n—\n\n \n\n \n\n \n\n6,967\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n9\n\n \n\n \n\n \n\n6,976\n\n \n\nTotal\n\n \n\n$\n\n322,430\n\n \n\n \n\n$\n\n16,751\n\n \n\n \n\n$\n\n2,403\n\n \n\n \n\n$\n\n8,567\n\n \n\n \n\n$\n\n9\n\n \n\n \n\n$\n\n350,160\n\n \n\n \n\n3.\nPremiums Receivable\n\nPremiums receivable consist primarily of premium-related balances due from policyholders. The balance is shown net of the allowance for credit losses. The components of premiums receivable are shown below:\n\n \n\n \n\nDecember 31,\n\n \n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n \n\n(in thousands)\n\n \n\nPremiums receivable\n\n \n\n$\n\n165,116\n\n \n\n \n\n$\n\n146,897\n\n \n\nAllowance for credit losses\n\n \n\n \n\n(4,172\n\n)\n\n \n\n \n\n(4,238\n\n)\n\nPremiums receivable, net\n\n \n\n$\n\n160,944\n\n \n\n \n\n$\n\n142,659\n\n \n\n \n\nThe following table summarizes the activity in the allowance for credit losses on premiums receivable:\n\n \n\n \n\nDecember 31,\n\n \n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n \n\n(in thousands)\n\n \n\nBalance, beginning of year\n\n \n\n$\n\n4,238\n\n \n\n \n\n$\n\n4,674\n\n \n\nProvision for credit loss expense\n\n \n\n \n\n1,466\n\n \n\n \n\n \n\n656\n\n \n\nWrite-offs\n\n \n\n \n\n(1,532\n\n)\n\n \n\n \n\n(1,092\n\n)\n\nBalance, end of year\n\n \n\n$\n\n4,172\n\n \n\n \n\n$\n\n4,238\n\n \n\n \n\n68\n\nAMERISAFE, INC. AND SUBSIDIARIES\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\nDecember 31, 2025\n\n \n\nIncluded in premiums receivable at December 31, 2025, 2024 and 2023 is the Company’s estimate for EBUB premium of $17.6 million, $13.8 million and $9.9 million, respectively.\n\n \n\n4.\nDeferred Policy Acquisition Costs\n\nDeferred policy acquisition costs represent those costs that are incremental and directly related to the successful acquisition of new or the renewal of existing insurance policies. We defer incremental costs that result directly from, and are essential to, the acquisition or renewal of an insurance policy.\n\nWe also defer a portion of employee total compensation costs directly related to time spent performing specific acquisition or renewal activities.\n\nThese costs are deferred and expensed over the life of the related policies. Major categories of the Company’s deferred policy acquisition costs are summarized as follows:\n\n \n\n \n\nDecember 31,\n\n \n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n \n\n(in thousands)\n\n \n\nAgents’ commissions\n\n \n\n$\n\n14,733\n\n \n\n \n\n$\n\n13,466\n\n \n\nPremium taxes\n\n \n\n \n\n3,074\n\n \n\n \n\n \n\n2,828\n\n \n\nDeferred underwriting expenses\n\n \n\n \n\n3,278\n\n \n\n \n\n \n\n2,857\n\n \n\nTotal deferred policy acquisition costs\n\n \n\n$\n\n21,085\n\n \n\n \n\n$\n\n19,151\n\n \n\nThe following table summarizes the activity in the deferred policy acquisition costs:\n\n \n\n \n\nYear Ended December 31,\n\n \n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\n \n\n \n\n(in thousands)\n\n \n\nBalance, beginning of year\n\n \n\n$\n\n19,151\n\n \n\n \n\n$\n\n17,975\n\n \n\n \n\n$\n\n17,401\n\n \n\nPolicy acquisition costs deferred\n\n \n\n \n\n46,158\n\n \n\n \n\n \n\n43,348\n\n \n\n \n\n \n\n41,433\n\n \n\nAmortization expense during the year\n\n \n\n \n\n(44,224\n\n)\n\n \n\n \n\n(42,172\n\n)\n\n \n\n \n\n(40,859\n\n)\n\nBalance, end of year\n\n \n\n$\n\n21,085\n\n \n\n \n\n$\n\n19,151\n\n \n\n \n\n$\n\n17,975\n\n \n\n5.\nProperty and Equipment\n\nProperty and equipment consist of the following:\n\n \n\n \n\nDecember 31,\n\n \n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n \n\n(in thousands)\n\n \n\nLand and office building\n\n \n\n$\n\n10,063\n\n \n\n \n\n$\n\n9,039\n\n \n\nFurniture and equipment\n\n \n\n \n\n7,076\n\n \n\n \n\n \n\n6,202\n\n \n\nSoftware\n\n \n\n \n\n8,561\n\n \n\n \n\n \n\n8,584\n\n \n\nAutomobiles\n\n \n\n \n\n73\n\n \n\n \n\n \n\n74\n\n \n\nFinance lease right-of-use assets\n\n \n\n \n\n656\n\n \n\n \n\n \n\n462\n\n \n\nTotal original cost\n\n \n\n \n\n26,429\n\n \n\n \n\n \n\n24,361\n\n \n\nAccumulated depreciation and amortization\n\n \n\n \n\n(19,136\n\n)\n\n \n\n \n\n(18,474\n\n)\n\nProperty and equipment, net\n\n \n\n$\n\n7,293\n\n \n\n \n\n$\n\n5,887\n\n \n\nAccumulated depreciation and amortization includes $0.4 million that is related to equipment held under finance leases at both December 31, 2025 and 2024, and is included in the underwriting and certain other operating costs line item on the income statement. The lease liabilities related to these properties are included in accounts payable and other liabilities.\n\n \n\n69\n\nAMERISAFE, INC. AND SUBSIDIARIES\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\nDecember 31, 2025\n\n \n\n6.\nReinsurance\n\nThe Company cedes certain premiums and losses to various reinsurers under excess-of-loss treaties. These reinsurance arrangements provide for greater diversification of business, allow management to control exposure to potential losses arising from large risks, and provide additional capacity for growth. Ceded reinsurance contracts do not relieve the Company from its obligations to policyholders. The Company remains liable to its policyholders for the portion reinsured to the extent that any reinsurer does not meet the obligations assumed under the reinsurance agreements. To minimize its exposure to significant losses from reinsurer insolvencies, the Company evaluates the financial condition of its reinsurers and monitors concentrations of credit risk arising from similar geographic regions, activities, or economic characteristics of the reinsurers on a continual basis. The effect of reinsurance on premiums written and earned in 2025, 2024 and 2023 was as follows:\n\n \n\n \n\n2025 Premiums\n\n \n\n \n\n2024 Premiums\n\n \n\n \n\n2023 Premiums\n\n \n\n \n\n \n\nWritten\n\n \n\n \n\nEarned\n\n \n\n \n\nWritten\n\n \n\n \n\nEarned\n\n \n\n \n\nWritten\n\n \n\n \n\nEarned\n\n \n\n \n\n \n\n(in thousands)\n\n \n\nGross\n\n \n\n$\n\n313,864\n\n \n\n \n\n$\n\n300,287\n\n \n\n \n\n$\n\n294,144\n\n \n\n \n\n$\n\n288,803\n\n \n\n \n\n$\n\n285,355\n\n \n\n \n\n$\n\n283,746\n\n \n\nCeded\n\n \n\n \n\n(17,230\n\n)\n\n \n\n \n\n(17,230\n\n)\n\n \n\n \n\n(18,164\n\n)\n\n \n\n \n\n(18,164\n\n)\n\n \n\n \n\n(16,621\n\n)\n\n \n\n \n\n(16,621\n\n)\n\nNet premiums\n\n \n\n$\n\n296,634\n\n \n\n \n\n$\n\n283,057\n\n \n\n \n\n$\n\n275,980\n\n \n\n \n\n$\n\n270,639\n\n \n\n \n\n$\n\n268,734\n\n \n\n \n\n$\n\n267,125\n\n \n\nThe amounts recoverable from reinsurers consist of the following:\n\n \n\n \n\nDecember 31,\n\n \n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n \n\n(in thousands)\n\n \n\nUnpaid losses recoverable:\n\n \n\n \n\n \n\n \n\n \n\n \n\nCase basis\n\n \n\n$\n\n63,355\n\n \n\n \n\n$\n\n73,421\n\n \n\nIncurred but not reported\n\n \n\n \n\n42,720\n\n \n\n \n\n \n\n39,321\n\n \n\nPaid losses recoverable\n\n \n\n \n\n641\n\n \n\n \n\n \n\n3,664\n\n \n\nExperience-rated commissions recoverable\n\n \n\n \n\n1,646\n\n \n\n \n\n \n\n913\n\n \n\nAllowance for credit losses\n\n \n\n \n\n(264\n\n)\n\n \n\n \n\n(300\n\n)\n\nTotal\n\n \n\n$\n\n108,098\n\n \n\n \n\n$\n\n117,019\n\n \n\nAmounts recoverable from reinsurers consist of ceded case reserves, ceded incurred but not reported (IBNR) reserves, and paid losses recoverable. Ceded case reserves and ceded IBNR reserves represent the portion of gross loss and loss adjustment expense liabilities that are recoverable under reinsurance agreements, but are not yet due from reinsurers. Paid losses recoverable are receivables currently due from reinsurers for ceded paid losses. The Company considers paid losses recoverable outstanding for more than 90 days to be past due. At December 31, 2025, there were no paid losses recoverable past due.\n\n \n\nThe Company received reinsurance recoveries of $1.8 million in 2025, $0.3 million in 2024 and $16.0 million in 2023.\n\n \n\n70\n\nAMERISAFE, INC. AND SUBSIDIARIES\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\nDecember 31, 2025\n\n \n\nThe Company generally secures large reinsurance recoverable balances with various forms of collateral, including funds withheld accounts, irrevocable letters of credit and secured trusts. At December 31, 2025, reinsurance recoverables from reinsurers that exceeded 1.5% of statutory surplus of the Company’s insurance subsidiaries are shown below.\n\nReinsurer\n\n \n\n \n\nA.M. Best\nRating\n\n \n\nAmounts Recoverable as of December 31, 2025\n\n \n\n \n\n \n\n \n\n \n\n \n\n(in thousands)\n\n \n\nHannover Reinsurance Ireland Limited\n\n(1)\n\n \n\nA+\n\n \n\n$\n\n41,924\n\n \n\nArch Reinsurance Company\n\n(1)\n\n \n\nA+\n\n \n\n \n\n27,750\n\n \n\nMunich Reinsurance America, Inc\n\n(1)\n\n \n\nA+\n\n \n\n \n\n10,179\n\n \n\nMinnesota Workers' Compensation Reinsurance Association\n\n(1)\n\n \n\nNR\n\n \n\n \n\n8,758\n\n \n\nAllianz Risk Transfer AG (Bermuda)\n\n \n\n \n\nA+\n\n \n\n \n\n3,525\n\n \n\nOdyssey America Reinsurance Corporation\n\n \n\n \n\nA+\n\n \n\n \n\n3,411\n\n \n\nOther reinsurers\n\n \n\n \n\n \n\n \n\n \n\n12,815\n\n \n\nTotal amounts recoverable from reinsurers\n\n \n\n \n\n \n\n \n\n \n\n108,362\n\n \n\nAllowance for credit losses\n\n \n\n \n\n \n\n \n\n \n\n(264\n\n)\n\nTotal amounts recoverable from reinsurers net of allowance for credit losses\n\n \n\n \n\n \n\n \n\n \n\n108,098\n\n \n\nFunds withheld and letters of credit related to the above recoverables\n\n \n\n \n\n \n\n \n\n \n\n(63,886\n\n)\n\nTotal unsecured amounts recoverable from reinsurers\n\n \n\n \n\n \n\n \n\n$\n\n44,212\n\n \n\n(1)\nCurrent participant in our 2026 reinsurance program.\n\n \n\nThe table below presents the change in the allowance for credit losses on amounts recoverable from reinsurers for the years ended December 31, 2025 and 2024.\n\n \n\n \n\n \n\nYear Ended\n\n \n\n \n\n \n\nDecember 31,\n\n \n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nBalance, beginning of period\n\n \n\n$\n\n300\n\n \n\n \n\n$\n\n360\n\n \n\nProvision for credit loss benefit\n\n \n\n \n\n(36\n\n)\n\n \n\n \n\n(60\n\n)\n\nBalance, end of period\n\n \n\n$\n\n264\n\n \n\n \n\n$\n\n300\n\n \n\n \n\n \n\n71\n\nAMERISAFE, INC. AND SUBSIDIARIES\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\nDecember 31, 2025\n\n \n\n7.\nIncome Taxes\n\nThe Company’s deferred income tax assets and liabilities are as follows:\n\n \n\n \n\nDecember 31,\n\n \n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n \n\n(in thousands)\n\n \n\nDeferred income tax assets:\n\n \n\n \n\n \n\n \n\n \n\n \n\nDiscounting of net unpaid loss and loss adjustment expenses\n\n \n\n$\n\n13,744\n\n \n\n \n\n$\n\n14,552\n\n \n\nUnearned premiums\n\n \n\n \n\n6,794\n\n \n\n \n\n \n\n6,257\n\n \n\nAccrued expenses and other\n\n \n\n \n\n2,057\n\n \n\n \n\n \n\n2,145\n\n \n\nState income tax\n\n \n\n \n\n2,373\n\n \n\n \n\n \n\n2,501\n\n \n\nAccrued policyholder dividends\n\n \n\n \n\n1,294\n\n \n\n \n\n \n\n1,408\n\n \n\nAccrued insurance-related assessments\n\n \n\n \n\n1,598\n\n \n\n \n\n \n\n1,557\n\n \n\nTotal deferred tax assets\n\n \n\n \n\n27,860\n\n \n\n \n\n \n\n28,420\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nDeferred income tax liabilities:\n\n \n\n \n\n \n\n \n\n \n\n \n\nDeferred policy acquisition costs\n\n \n\n \n\n(5,167\n\n)\n\n \n\n \n\n(4,737\n\n)\n\nNet unrealized gain on securities available-for-sale\n\n \n\n \n\n(4,674\n\n)\n\n \n\n \n\n(2,389\n\n)\n\nProperty and equipment and other\n\n \n\n \n\n(171\n\n)\n\n \n\n \n\n(130\n\n)\n\nSalvage and subrogation\n\n \n\n \n\n(276\n\n)\n\n \n\n \n\n(302\n\n)\n\nLoss reserves adjustment\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(1,414\n\n)\n\nTotal deferred income tax liabilities\n\n \n\n \n\n(10,288\n\n)\n\n \n\n \n\n(8,972\n\n)\n\nNet deferred income taxes\n\n \n\n$\n\n17,572\n\n \n\n \n\n$\n\n19,448\n\n \n\nThe components of consolidated income tax expense (benefit) are as follows:\n\n \n\n \n\nYear Ended December 31,\n\n \n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\n \n\n \n\n(in thousands)\n\n \n\nCurrent:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nFederal\n\n \n\n$\n\n10,341\n\n \n\n \n\n$\n\n11,351\n\n \n\n \n\n$\n\n13,621\n\n \n\nState\n\n \n\n \n\n993\n\n \n\n \n\n \n\n867\n\n \n\n \n\n \n\n1,020\n\n \n\n \n\n \n\n \n\n11,334\n\n \n\n \n\n \n\n12,218\n\n \n\n \n\n \n\n14,641\n\n \n\nDeferred:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nFederal\n\n \n\n \n\n244\n\n \n\n \n\n \n\n1,408\n\n \n\n \n\n \n\n655\n\n \n\nState\n\n \n\n \n\n128\n\n \n\n \n\n \n\n(6\n\n)\n\n \n\n \n\n(27\n\n)\n\n \n\n \n\n \n\n372\n\n \n\n \n\n \n\n1,402\n\n \n\n \n\n \n\n628\n\n \n\nTotal\n\n \n\n$\n\n11,706\n\n \n\n \n\n$\n\n13,620\n\n \n\n \n\n$\n\n15,269\n\n \n\nAs of December 31, 2025, 2024 and 2023, the Company had no valuation allowance against its deferred income tax assets and liabilities. The realization of this asset is dependent upon the Company's ability to generate sufficient taxable income in future periods. Based on historical results and the prospects for future operations, management anticipates that it is more likely than not that future taxable income will be sufficient for the realization of this asset.\n\n72\n\nAMERISAFE, INC. AND SUBSIDIARIES\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\nDecember 31, 2025\n\n \n\nIncome tax expense from operations is different from the amount computed by applying the U.S. federal income tax statutory rate of 21% to income before income taxes as follows:\n\n \n\n \n\nYear Ended December 31,\n\n \n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\n \n\n \n\nAmount ($)\n\n \n\n \n\nPercentage\n\n \n\n \n\nAmount ($)\n\n \n\n \n\nPercentage\n\n \n\n \n\nAmount ($)\n\n \n\n \n\nPercentage\n\n \n\n \n\n \n\n(in thousands)\n\n \n\n \n\n \n\n \n\n \n\n(in thousands)\n\n \n\n \n\n \n\n \n\n \n\n(in thousands)\n\n \n\n \n\n \n\n \n\nIncome tax computed at federal statutory tax rate\n\n \n\n$\n\n12,359\n\n \n\n \n\n \n\n21.0\n\n%\n\n \n\n$\n\n14,502\n\n \n\n \n\n \n\n21.0\n\n%\n\n \n\n \n\n16,249\n\n \n\n \n\n \n\n21.0\n\n%\n\nState income tax (1)\n\n \n\n \n\n912\n\n \n\n \n\n \n\n1.5\n\n%\n\n \n\n \n\n679\n\n \n\n \n\n \n\n1.0\n\n%\n\n \n\n \n\n779\n\n \n\n \n\n \n\n1.0\n\n%\n\nNontaxable or nondeductible items\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nTax-exempt interest, net\n\n \n\n \n\n(1,908\n\n)\n\n \n\n \n\n-3.2\n\n%\n\n \n\n \n\n(1,945\n\n)\n\n \n\n \n\n-2.8\n\n%\n\n \n\n \n\n(1,997\n\n)\n\n \n\n \n\n-2.6\n\n%\n\n   All other\n\n \n\n \n\n351\n\n \n\n \n\n \n\n0.6\n\n%\n\n \n\n \n\n376\n\n \n\n \n\n \n\n0.5\n\n%\n\n \n\n \n\n225\n\n \n\n \n\n \n\n0.3\n\n%\n\nOther\n\n \n\n \n\n(8\n\n)\n\n \n\n \n\n0.0\n\n%\n\n \n\n \n\n8\n\n \n\n \n\n \n\n0.0\n\n%\n\n \n\n \n\n13\n\n \n\n \n\n \n\n0.0\n\n%\n\n \n\n \n\n$\n\n11,706\n\n \n\n \n\n \n\n19.9\n\n%\n\n \n\n$\n\n13,620\n\n \n\n \n\n \n\n19.7\n\n%\n\n \n\n$\n\n15,269\n\n \n\n \n\n \n\n19.7\n\n%\n\n \n\n(1)\nState taxes in Florida and Illinois make up more than 50% of the state income tax category.\n\n \n\nThe Company has no foreign operations. Federal and state income tax payments, net of refunds, are as follows:\n\n \n\n \n\n \n\nYear Ended December 31,\n\n \n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\n \n\n \n\n(in thousands)\n\n \n\nIncome taxes paid, net of refunds received\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nFederal\n\n \n\n$\n\n11,250\n\n \n\n \n\n$\n\n11,750\n\n \n\n \n\n$\n\n13,950\n\n \n\nState (1)\n\n \n\n \n\n1,200\n\n \n\n \n\n \n\n1,099\n\n \n\n \n\n \n\n962\n\n \n\nTotal\n\n \n\n$\n\n12,450\n\n \n\n \n\n$\n\n12,849\n\n \n\n \n\n$\n\n14,912\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nIncome from continuing operations before income taxes\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nDomestic\n\n \n\n$\n\n58,851\n\n \n\n \n\n$\n\n69,056\n\n \n\n \n\n$\n\n77,377\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nIncome tax expense from continuing operations\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nFederal\n\n \n\n$\n\n10,585\n\n \n\n \n\n$\n\n12,759\n\n \n\n \n\n$\n\n14,276\n\n \n\nState\n\n \n\n \n\n1,121\n\n \n\n \n\n \n\n861\n\n \n\n \n\n \n\n993\n\n \n\nTotal\n\n \n\n$\n\n11,706\n\n \n\n \n\n$\n\n13,620\n\n \n\n \n\n$\n\n15,269\n\n \n\n \n\n(1) Payments to Florida and Illinois make up greater than 50% of the total state income taxes paid, net of refunds received.\n\n \n\nThe Company recognizes interest and penalties related to uncertain tax positions in income tax expense. There were no uncertain tax positions as of December 31, 2025, 2024 and 2023.\n\nThe Inflation Reduction Act was enacted on August 16, 2022, and included a new Corporate Alternative Minimum Tax (CAMT). The Company has determined they do not expect to be liable for CAMT in 2025.\n\nOn July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was enacted, introducing multiple changes to the U.S. tax code. The OBBBA contains several changes impacting corporate taxpayers, including modifications to the limitations on deductions for charitable contributions and the re-establishment of accelerated depreciation on certain qualified depreciable assets. The new tax regulation set forth by the OBBBA did not have a significant impact on the Company’s financial statements.\n\nTax years 2022 through 2025 are subject to examination by the federal and state taxing authorities.\n\n \n\n \n\n73\n\nAMERISAFE, INC. AND SUBSIDIARIES\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\nDecember 31, 2025\n\n \n\n \n\n8.\nLine of Credit\n\n \n\nThe Company has an agreement providing for a line of credit in the maximum amount of $20.0 million with Frost Bank. The agreement was renewed in 2025. Under the agreement, advances may be made either in the form of loans or letters of credit. Borrowings under the agreement accrue at interest rates based upon prime rate or the one-month term SOFR rate. The line of credit is unsecured. No borrowings or letters of credit were outstanding under the line of credit arrangement at December 31, 2025 or 2024. Unless renewed, the agreement will expire in May 2026.\n\n \n\n9.\nLoss and Loss Adjustment Expenses\n\nThe following development tables provide the incurred and paid losses and allocated loss adjustment expenses, net of reinsurance, for workers’ compensation and general liability for accident years 2016 through 2025. The incurred but not reported (IBNR) losses and claims frequency is included for each accident year presented.\n\n \n\n \n\n \n\nIncurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance\n\n \n\n \n\nAs of\n\n \n\n \n\n \n\nFor the Years Ended December 31,\n\n \n\n \n\nDecember 31, 2025\n\n \n\n \n\n \n\n(Dollars in thousands)\n\n \n\nTotal IBNR\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nPlus\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nExpected\n\n \n\nCumulative\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nDevelopment\n\n \n\nNumber of\n\n \n\nAccident\n\n \n\nUnaudited (1)\n\n \n\n \n\n \n\n \n\non Reported\n\n \n\nClaims\n\n \n\nYear\n\n \n\n2016\n\n \n\n2017\n\n \n\n2018\n\n \n\n2019\n\n \n\n2020\n\n \n\n2021\n\n \n\n2022\n\n \n\n2023\n\n \n\n2024\n\n \n\n \n\n2025\n\n \n\nClaims\n\n \n\nReported\n\n \n\n2016\n\n \n\n$\n\n250,491\n\n \n\n$\n\n250,491\n\n \n\n$\n\n241,406\n\n \n\n$\n\n218,005\n\n \n\n$\n\n209,214\n\n \n\n$\n\n202,820\n\n \n\n$\n\n201,604\n\n \n\n$\n\n198,566\n\n \n\n$\n\n197,359\n\n \n\n \n\n$\n\n195,760\n\n \n\n \n\n$\n\n4,691\n\n \n\n \n\n \n\n5,395\n\n \n\n2017\n\n \n\n \n\n—\n\n \n\n \n\n244,094\n\n \n\n \n\n244,098\n\n \n\n \n\n234,587\n\n \n\n \n\n220,096\n\n \n\n \n\n211,964\n\n \n\n \n\n208,360\n\n \n\n \n\n206,293\n\n \n\n \n\n203,443\n\n \n\n \n\n \n\n202,037\n\n \n\n \n\n \n\n4,087\n\n \n\n \n\n \n\n5,214\n\n \n\n2018\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n250,487\n\n \n\n \n\n250,487\n\n \n\n \n\n235,641\n\n \n\n \n\n217,369\n\n \n\n \n\n208,517\n\n \n\n \n\n205,001\n\n \n\n \n\n203,456\n\n \n\n \n\n \n\n201,974\n\n \n\n \n\n \n\n3,851\n\n \n\n \n\n \n\n5,478\n\n \n\n2019\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n241,344\n\n \n\n \n\n241,344\n\n \n\n \n\n227,246\n\n \n\n \n\n214,123\n\n \n\n \n\n206,109\n\n \n\n \n\n203,072\n\n \n\n \n\n \n\n203,056\n\n \n\n \n\n \n\n3,718\n\n \n\n \n\n \n\n5,225\n\n \n\n2020\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n220,710\n\n \n\n \n\n220,710\n\n \n\n \n\n214,500\n\n \n\n \n\n207,047\n\n \n\n \n\n200,698\n\n \n\n \n\n \n\n194,042\n\n \n\n \n\n \n\n7,956\n\n \n\n \n\n \n\n4,392\n\n \n\n2021\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n222,715\n\n \n\n \n\n222,715\n\n \n\n \n\n215,232\n\n \n\n \n\n211,548\n\n \n\n \n\n \n\n206,414\n\n \n\n \n\n \n\n3,853\n\n \n\n \n\n \n\n4,325\n\n \n\n2022\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n192,907\n\n \n\n \n\n192,907\n\n \n\n \n\n190,117\n\n \n\n \n\n \n\n185,894\n\n \n\n \n\n \n\n(92\n\n)\n\n \n\n \n\n4,093\n\n \n\n2023\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n189,659\n\n \n\n \n\n189,659\n\n \n\n \n\n \n\n188,080\n\n \n\n \n\n \n\n7,289\n\n \n\n \n\n \n\n3,945\n\n \n\n2024\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n192,153\n\n \n\n \n\n \n\n192,153\n\n \n\n \n\n \n\n(31,986\n\n)\n\n \n\n \n\n3,792\n\n \n\n2025\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n \n\n203,802\n\n \n\n \n\n \n\n(22,014\n\n)\n\n \n\n \n\n3,887\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nTotal\n\n \n\n \n\n$\n\n1,973,212\n\n \n\n \n\n$\n\n(18,647\n\n)\n\n \n\n \n\n \n\n \n\n \n\n \n\nCumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance\n\n \n\n \n\n \n\n \n\n \n\n \n\nFor the Years Ended December 31,\n\n \n\n \n\n \n\n \n\n \n\n \n\n(Dollars in thousands)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nAccident\n\n \n\nUnaudited (1)\n\n \n\n \n\n \n\n \n\n \n\nClaim\n\n \n\nYear\n\n \n\n2016\n\n \n\n2017\n\n \n\n2018\n\n \n\n2019\n\n \n\n2020\n\n \n\n2021\n\n \n\n2022\n\n \n\n2023\n\n \n\n2024\n\n \n\n \n\n2025\n\n \n\n \n\nFrequency (2)\n\n \n\n2016\n\n \n\n$\n\n52,238\n\n \n\n$\n\n115,713\n\n \n\n$\n\n143,016\n\n \n\n$\n\n156,860\n\n \n\n$\n\n166,887\n\n \n\n$\n\n172,133\n\n \n\n$\n\n174,134\n\n \n\n$\n\n178,572\n\n \n\n$\n\n179,521\n\n \n\n \n\n$\n\n180,382\n\n \n\n \n\n \n\n14.23\n\n \n\n2017\n\n \n\n \n\n—\n\n \n\n \n\n56,951\n\n \n\n \n\n122,552\n\n \n\n \n\n151,427\n\n \n\n \n\n166,448\n\n \n\n \n\n175,733\n\n \n\n \n\n183,696\n\n \n\n \n\n185,690\n\n \n\n \n\n186,798\n\n \n\n \n\n \n\n189,023\n\n \n\n \n\n \n\n14.69\n\n \n\n2018\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n62,061\n\n \n\n \n\n126,057\n\n \n\n \n\n152,328\n\n \n\n \n\n172,423\n\n \n\n \n\n181,081\n\n \n\n \n\n184,797\n\n \n\n \n\n187,196\n\n \n\n \n\n \n\n189,256\n\n \n\n \n\n \n\n15.23\n\n \n\n2019\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n58,884\n\n \n\n \n\n120,512\n\n \n\n \n\n154,391\n\n \n\n \n\n168,448\n\n \n\n \n\n176,488\n\n \n\n \n\n180,586\n\n \n\n \n\n \n\n184,463\n\n \n\n \n\n \n\n15.28\n\n \n\n2020\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n50,113\n\n \n\n \n\n109,882\n\n \n\n \n\n137,411\n\n \n\n \n\n153,974\n\n \n\n \n\n162,703\n\n \n\n \n\n \n\n166,910\n\n \n\n \n\n \n\n13.96\n\n \n\n2021\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n52,292\n\n \n\n \n\n130,288\n\n \n\n \n\n159,864\n\n \n\n \n\n174,454\n\n \n\n \n\n \n\n182,265\n\n \n\n \n\n \n\n15.10\n\n \n\n2022\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n50,954\n\n \n\n \n\n110,494\n\n \n\n \n\n138,000\n\n \n\n \n\n \n\n151,449\n\n \n\n \n\n \n\n14.50\n\n \n\n2023\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n47,207\n\n \n\n \n\n107,823\n\n \n\n \n\n \n\n138,084\n\n \n\n \n\n \n\n13.90\n\n \n\n2024\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n52,869\n\n \n\n \n\n \n\n125,418\n\n \n\n \n\n \n\n13.13\n\n \n\n2025\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n \n\n59,135\n\n \n\n \n\n \n\n12.94\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nTotal\n\n \n\n \n\n \n\n1,566,385\n\n \n\n \n\n \n\n \n\nAll outstanding liabilities before 2016, net of reinsurance\n\n \n\n \n\n \n\n100,681\n\n \n\n \n\n \n\n \n\nLiabilities for loss and loss adjustment expenses, net of reinsurance\n\n \n\n \n\n \n\n507,508\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n(1) Data presented for these calendar years is required supplementary information, which is unaudited.\n\n \n\n(2) Frequency, as calculated above, refers to reported claims divided by gross premium earned.\n\n \n\n \n\n74\n\nAMERISAFE, INC. AND SUBSIDIARIES\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\nDecember 31, 2025\n\n \n\nThe average annual percentage payout of incurred losses by age, net of reinsurance, for workers’ compensation and general liability as of December 31, 2025 is summarized below. Since workers’ compensation has long payout periods, the table below shows less than 100% in the years disclosed. This is required supplementary information, which is unaudited.\n\n \n\nAverage Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance (Unaudited)\n\nYear 1\n\nYear 2\n\nYear 3\n\nYear 4\n\nYear 5\n\nYear 6\n\nYear 7\n\nYear 8\n\nYear 9\n\n \n\nYear 10\n\n27.5%\n\n33.1%\n\n14.7%\n\n7.7%\n\n4.4%\n\n2.5%\n\n1.3%\n\n1.3%\n\n0.8%\n\n \n\n0.4%\n\n \n\nThe following table provides a reconciliation of the beginning and ending reserve balances, net of related amounts recoverable from reinsurers, for 2025, 2024 and 2023:\n\n \n\n \n\nYear Ended December 31,\n\n \n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\n \n\n \n\n(in thousands)\n\n \n\nBalance, beginning of period\n\n \n\n$\n\n651,309\n\n \n\n \n\n$\n\n673,994\n\n \n\n \n\n$\n\n696,037\n\n \n\nLess amounts recoverable from reinsurers\n   on unpaid loss and loss adjustment expenses\n\n \n\n \n\n112,742\n\n \n\n \n\n \n\n119,746\n\n \n\n \n\n \n\n112,555\n\n \n\nNet balance, beginning of period\n\n \n\n \n\n538,567\n\n \n\n \n\n \n\n554,248\n\n \n\n \n\n \n\n583,482\n\n \n\nAdd incurred related to:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCurrent accident year\n\n \n\n \n\n203,802\n\n \n\n \n\n \n\n192,153\n\n \n\n \n\n \n\n189,659\n\n \n\nPrior accident years\n\n \n\n \n\n(33,865\n\n)\n\n \n\n \n\n(34,886\n\n)\n\n \n\n \n\n(41,396\n\n)\n\nTotal incurred\n\n \n\n \n\n169,937\n\n \n\n \n\n \n\n157,267\n\n \n\n \n\n \n\n148,263\n\n \n\nLess paid related to:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCurrent accident year\n\n \n\n \n\n59,135\n\n \n\n \n\n \n\n52,869\n\n \n\n \n\n \n\n47,207\n\n \n\nPrior accident years\n\n \n\n \n\n141,861\n\n \n\n \n\n \n\n120,079\n\n \n\n \n\n \n\n130,290\n\n \n\nTotal paid\n\n \n\n \n\n200,996\n\n \n\n \n\n \n\n172,948\n\n \n\n \n\n \n\n177,497\n\n \n\nNet balance, end of period\n\n \n\n \n\n507,508\n\n \n\n \n\n \n\n538,567\n\n \n\n \n\n \n\n554,248\n\n \n\nAdd amounts recoverable from reinsurers\n   on unpaid loss and loss adjustment expenses\n\n \n\n \n\n106,075\n\n \n\n \n\n \n\n112,742\n\n \n\n \n\n \n\n119,746\n\n \n\nBalance, end of period\n\n \n\n$\n\n613,583\n\n \n\n \n\n$\n\n651,309\n\n \n\n \n\n$\n\n673,994\n\n \n\n \n\nThe final resolution of the estimated loss reserve liability may be different from that anticipated at the reporting date because of the inherent uncertainty in loss reserve estimates, including, but not limited to, the future settlement environment. Consequently, actual paid losses in the future may result in a significantly different amount than currently reserved, favorable or unfavorable.\n\n \n\nThe difference between currently estimated losses and losses estimated for a prior period at a prior valuation date is known as development. Development is unfavorable when the losses ultimately settle for more than they were reserved for or future estimates suggest that reserves should be increased on unresolved claims. Development is favorable when the losses ultimately settle for less than they were reserved for or future estimates suggest that reserves should be decreased on unresolved claims. Favorable or unfavorable development of loss reserves are reflected in our results of operations in the period the estimates are changed.\n\nThe foregoing reconciliation reflects favorable development of the net reserves at December 31, 2025, 2024 and 2023. The favorable development reduced loss and loss adjustment expenses incurred by $33.9 million in 2025, driven primarily by accident years 2014 through 2023. In 2024 and 2023, the Company recorded favorable development of $34.9 million and $41.4 million, respectively. The revisions to the Company’s reserves reflect new information gained by claims adjusters in the normal course of adjusting claims and is reflected in the financial statements when the information becomes available. It is typical for more serious claims to take several years or longer to settle and the Company continually revises estimates as more information about claimants’ medical conditions and potential disability becomes known and the claims get closer to being settled. Multiple factors can cause loss development both unfavorable and favorable. The favorable loss development we experienced across prior accident years was largely due to favorable case reserve development from closed claims and claims where the worker had reached maximum medical improvement.\n\nReserves established for workers’ compensation insurance includes the exposure to occupational disease or accidents related to asbestos or environmental claims. The exposure to asbestos claims emanates from the direct sale of workers’ compensation insurance. These claims resulted from industry workers who were exposed to tremolite asbestos dust and electricians and carpenters who were exposed to products that contained asbestos. There has been no known exposure to asbestos claims arising from assumed business.\n\n75\n\nAMERISAFE, INC. AND SUBSIDIARIES\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\nDecember 31, 2025\n\n \n\nThe emergence of these claims is slow and highly unpredictable. The Company estimates full impact of the asbestos exposure by establishing full case basis reserves on all known losses. Reserves for losses incurred but not reported (IBNR) include a provision for development of reserves on reported losses. Reserves are established for loss adjustment expenses (LAE) associated with these case and IBNR loss reserves.\n\nThe following table details our exposures to various asbestos related claims:\n\n \n\n \n\nYear Ended December 31,\n\n \n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\n \n\n \n\n(in thousands)\n\n \n\nReserves for loss and LAE at beginning of year\n\n \n\n$\n\n313\n\n \n\n \n\n$\n\n310\n\n \n\n \n\n$\n\n248\n\n \n\nIncurred losses and LAE during the current year\n\n \n\n \n\n34\n\n \n\n \n\n \n\n14\n\n \n\n \n\n \n\n15\n\n \n\nLoss and LAE payments\n\n \n\n \n\n(7\n\n)\n\n \n\n \n\n(11\n\n)\n\n \n\n \n\n47\n\n \n\nReserves for loss and LAE at end of year\n\n \n\n$\n\n340\n\n \n\n \n\n$\n\n313\n\n \n\n \n\n$\n\n310\n\n \n\nThe Company has historically written general liability coverages that are reported in other liability lines of business. These coverages may be associated with the property and casualty industry’s exposure to environmental claims. However, the Company has not been notified by any insured for which exposure exists due to these types of claims. Company management believes potential exposure to environmental claims to be remote. Therefore, the Company has no loss or loss adjustment expense reserves for such liabilities.\n\n \n\nThe anticipated effect of inflation is implicitly considered when estimating liabilities for loss and loss adjustment expenses. In establishing our reserves for loss and loss adjustment expenses, we review the results of analyses using individual case-base valuations and statistical and actuarial methods that utilize historical loss data from our more than 40 years of underwriting workers’ compensation insurance. The actuarial analysis of our historical data provides some of the factors we use in estimating our loss reserves. These factors are primarily measures over time of the number of claims paid and reported, average paid and incurred claim amounts, claim closure rates and claim payment patterns. In evaluating the results of our analyses, management also uses substantial judgment in considering other factors that are not considered in these actuarial analyses, including changes in business mix, claims management, regulatory issues, medical trends, employment and wage patterns, insurance policy coverage interpretations, judicial determinations and other subjective factors. Due to the inherent uncertainty associated with these estimates, and the cost of incurred but unreported claims, our actual liabilities may vary significantly from our original estimates. These anticipated trends are monitored based on actual development and are modified if necessary.\n\n10.\nStatutory Accounting and Regulatory Requirements\n\n \n\nThe Company’s insurance subsidiaries file financial statements prepared in accordance with statutory accounting principles prescribed or permitted by the insurance regulatory authorities of the states in which the subsidiaries are domiciled. Statutory-basis shareholders’ capital and surplus at December 31, 2025, 2024 and 2023 of the directly owned insurance subsidiary, AIIC, and the combined statutory-basis net income and realized investment gains for all AMERISAFE’s insurance subsidiaries for the three years in the period ended December 31, 2025, were as follows:\n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\n \n\n \n\n(in thousands)\n\n \n\nCapital and surplus\n\n \n\n$\n\n217,798\n\n \n\n \n\n$\n\n235,091\n\n \n\n \n\n$\n\n254,856\n\n \n\nNet income\n\n \n\n \n\n39,674\n\n \n\n \n\n \n\n43,668\n\n \n\n \n\n \n\n56,637\n\n \n\nNet realized gains (losses) on investments\n\n \n\n \n\n(86\n\n)\n\n \n\n \n\n(1,579\n\n)\n\n \n\n \n\n5,470\n\n \n\nProperty and casualty insurance companies are subject to certain risk-based capital requirements (RBC) specified by the National Association of Insurance Commissioners. Under these requirements, a target minimum amount of capital and surplus maintained by a property/casualty insurance company is determined based on the various risk factors related to it. At December 31, 2025, the capital and surplus of AIIC and its subsidiaries exceeded the minimum RBC requirements.\n\n \n\nPursuant to regulatory requirements, AIIC cannot pay dividends to the Company in excess of the greater of 10% of statutory surplus, or statutory net income, excluding realized investment gains, for the preceding 12-month period, without the prior approval of the Nebraska Director of Insurance. However, for purposes of this dividend calculation, net income from the previous two calendar years may be carried forward to the extent that it has not already been paid out as dividends. AIIC paid $62.7 million in dividends to\n\n76\n\nAMERISAFE, INC. AND SUBSIDIARIES\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\nDecember 31, 2025\n\n \n\nthe Company in 2025, $71.0 million in 2024 and $56.0 million in 2023. Based upon the dividend limitation described above, AIIC could pay to the Company dividends of up to $40.1 million in 2026 without seeking regulatory approval.\n\n \n\n11.\nCapital Stock\n\nCommon Stock\n\n \n\nThe Company is authorized to issue 50,000,000 shares of common stock, par value $0.01 per share. At December 31, 2025, there were 20,769,021 shares of common stock issued and 18,794,881 shares outstanding.\n\nPreferred Stock\n\n \n\nThe Company is authorized to issue 10,000,000 shares of preferred stock, par value $0.01 per share. At December 31, 2025, there were no shares of preferred stock outstanding.\n\n12.\nEquity Based Compensation\n\n2012 Equity and Incentive Compensation Plan\n\nIn 2012, the Company’s shareholders approved the AMERISAFE 2012 Equity and Incentive Compensation Plan (the 2012 Incentive Plan). The 2012 Incentive Plan is administered by the Compensation Committee of the Board and is designed to attract, retain and motivate non-employee directors, officers, key employees and consultants by providing incentives for superior performance. The 2012 Incentive Plan authorizes the grant of equity-based compensation in the form of option rights, appreciation rights, restricted shares, restricted stock units, cash incentive awards, performance shares and units, and other types of awards. In connection with the approval of the 2022 Equity and Incentive Compensation Plan (the 2022 Incentive Plan) by the Company’s shareholders, no further grants other than performance based grants awarded prior to the 2022 Incentive Plan will be made under the 2012 Incentive Plan. All grants made under the 2012 Incentive Plan will continue in effect, subject to the terms and conditions of the 2012 Incentive Plan.\n\nIn 2025, 19,737 shares of common stock were issued to executive officers pursuant to vested performance awards under the 2012 Incentive Plan. In 2024, 12,993 shares of common stock were issued to executive officers pursuant to vested performance awards under the 2012 Incentive Plan. In 2023, 18,561 shares of common stock were issued to executive officers pursuant to vested performance awards under the 2012 Incentive Plan.\n\nThe following table summarizes information about the common and restricted stock activity under the 2012 Incentive Plan:\n\n \n\n \n\n \n\nShares\n\n \n\n \n\nWeighted\nAverage Grant\nDate Fair Value\nper Share\n\n \n\nNonvested balance at January 1, 2023\n\n \n\n \n\n10,531\n\n \n\n \n\n \n\n60.92\n\n \n\nGranted\n\n \n\n \n\n18,561\n\n \n\n \n\n \n\n52.35\n\n \n\nVested\n\n \n\n \n\n(21,887\n\n)\n\n \n\n \n\n53.65\n\n \n\nForfeited\n\n \n\n \n\n(5,900\n\n)\n\n \n\n \n\n50.97\n\n \n\nNonvested balance at December 31, 2023\n\n \n\n \n\n1,305\n\n \n\n \n\n \n\n55.18\n\n \n\nGranted\n\n \n\n \n\n12,993\n\n \n\n \n\n \n\n43.14\n\n \n\nVested\n\n \n\n \n\n(13,661\n\n)\n\n \n\n \n\n44.11\n\n \n\nForfeited\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nNonvested balance at December 31, 2024\n\n \n\n \n\n637\n\n \n\n \n\n \n\n47.07\n\n \n\nGranted\n\n \n\n \n\n19,737\n\n \n\n \n\n \n\n47.19\n\n \n\nVested\n\n \n\n \n\n(19,949\n\n)\n\n \n\n \n\n47.18\n\n \n\nForfeited\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nNonvested balance at December 31, 2025\n\n \n\n \n\n425\n\n \n\n \n\n \n\n47.07\n\n \n\n \n\nThe Company recognized compensation expense of $10,000 and $79,000 in 2025 and 2024, respectively, and a forfeiture benefit of $43,000 in 2023 related to share-based grants. The Company recognized a forfeiture benefit of $13,000 in 2025,\n\n77\n\nAMERISAFE, INC. AND SUBSIDIARIES\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\nDecember 31, 2025\n\n \n\ncompensation expense of $712,000 in 2024, and a forfeiture benefit of $223,000 in 2023 related to long-term incentive performance awards under the 2012 Incentive Plan. The long-term incentive performance award is a liability award.\n\n2022 Equity and Incentive Compensation Plan\n\nIn 2022, the Company’s shareholders approved the AMERISAFE 2022 Equity and Incentive Compensation Plan (the 2022 Incentive Plan). The 2022 Incentive Plan is administered by the Compensation Committee of the Board and is designed to attract, retain and motivate non-employee directors, officers, key employees and consultants by providing incentives for superior performance. The 2022 Incentive Plan authorizes the grant of equity-based compensation in the form of option rights, appreciation rights, restricted shares, restricted stock units, cash incentive awards, performance shares and units, and other types of awards. A maximum of 500,000 shares of common stock may be issued or transferred under the 2022 Incentive Plan.\n\nIn 2025, 11,452 shares of restricted stock and 11,177 restricted stock units were granted under the 2022 Incentive Plan, while 18,922 restricted stock units were forfeited. The restricted stock and restricted stock units will vest through 2028. At December 31, 2025, there were 437,508 shares of common stock available for future awards under the 2022 Incentive Plan.\n\nThe following table summarizes information about the restricted stock activity under the 2022 Incentive Plan:\n\n \n\n \n\n \n\nShares\n\n \n\n \n\nWeighted\nAverage Grant\nDate Fair Value\nper Share\n\n \n\nNonvested balance at January 1, 2023\n\n \n\n \n\n2,098\n\n \n\n \n\n \n\n47.65\n\n \n\nGranted\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nVested\n\n \n\n \n\n(419\n\n)\n\n \n\n \n\n47.65\n\n \n\nForfeited\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nNonvested balance at December 31, 2023\n\n \n\n \n\n1,679\n\n \n\n \n\n \n\n47.65\n\n \n\nGranted\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nVested\n\n \n\n \n\n(420\n\n)\n\n \n\n \n\n47.65\n\n \n\nForfeited\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nNonvested balance at December 31, 2024\n\n \n\n \n\n1,259\n\n \n\n \n\n \n\n47.65\n\n \n\nGranted\n\n \n\n \n\n11,452\n\n \n\n \n\n \n\n45.84\n\n \n\nVested\n\n \n\n \n\n(419\n\n)\n\n \n\n \n\n47.65\n\n \n\nForfeited\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nNonvested balance at December 31, 2025\n\n \n\n \n\n12,292\n\n \n\n \n\n \n\n45.96\n\n \n\nThe following table summarizes information about the restricted stock unit activity under the 2022 Incentive Plan:\n\n \n\n \n\n \n\nShares\n\n \n\n \n\nWeighted\nAverage Grant\nDate Fair Value\nper Share\n\n \n\nNonvested balance at January 1, 2023\n\n \n\n \n\n22,826\n\n \n\n \n\n \n\n48.19\n\n \n\nGranted\n\n \n\n \n\n33,369\n\n \n\n \n\n \n\n52.61\n\n \n\nVested\n\n \n\n \n\n(7,989\n\n)\n\n \n\n \n\n48.19\n\n \n\nForfeited\n\n \n\n \n\n(987\n\n)\n\n \n\n \n\n51.26\n\n \n\nNonvested balance at December 31, 2023\n\n \n\n \n\n47,219\n\n \n\n \n\n \n\n51.19\n\n \n\nGranted\n\n \n\n \n\n10,384\n\n \n\n \n\n \n\n52.19\n\n \n\nVested\n\n \n\n \n\n(6,148\n\n)\n\n \n\n \n\n50.01\n\n \n\nForfeited\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nNonvested balance at December 31, 2024\n\n \n\n \n\n51,455\n\n \n\n \n\n \n\n51.54\n\n \n\nGranted\n\n \n\n \n\n11,177\n\n \n\n \n\n \n\n52.16\n\n \n\nVested\n\n \n\n \n\n(7,894\n\n)\n\n \n\n \n\n50.03\n\n \n\nForfeited\n\n \n\n \n\n(18,922\n\n)\n\n \n\n \n\n40.08\n\n \n\nNonvested balance at December 31, 2025\n\n \n\n \n\n35,816\n\n \n\n \n\n \n\n52.68\n\n \n\n \n\n78\n\nAMERISAFE, INC. AND SUBSIDIARIES\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\nDecember 31, 2025\n\n \n\nThe Company recognized compensation expense of $921,000, $832,000 and $559,000 in 2025, 2024, and 2023, respectively, related to share-based grants under the 2022 Incentive Plan. The Company recognized compensation expense of $1,761,000, $789,000, and $780,000 in 2025, 2024, and 2023, respectively, related to long-term incentive performance awards under the 2022 Incentive Plan. The long-term incentive performance award is a liability award.\n\nNon-Employee Director Restricted Stock Plan\n\nThe AMERISAFE Non-Employee Director Restricted Stock Plan (the Restricted Stock Plan) is administered by the Compensation Committee of the Board and provides for the automatic grant of restricted stock awards to non-employee directors of the Company. Awards to non-employee directors are generally subject to terms including non-transferability and, forfeiture of unvested shares upon termination of service by a director; provided, however, that unvested shares shall immediately vest upon the death or total disability of a director, and upon a change of control of the Company. The maximum number of shares of common stock that may be issued pursuant to restricted stock awards under the Restricted Stock Plan is 113,668 shares, subject to the authority of the Board to adjust this amount in the event of a merger, consolidation, reorganization, stock split, combination of shares, recapitalization or similar transaction affecting the common stock. At December 31, 2025, there were 59,512 shares of common stock available for future awards under the Restricted Stock Plan.\n\nUnder the Restricted Stock Plan, each non-employee director is automatically granted a restricted stock award for a number of shares equal to Board approved equity target value divided by the closing price of the Company’s common stock on the date of the annual meeting of shareholders at which the non-employee director is elected or is continuing as a member of the Board. The equity target value may not exceed $200,000 without shareholder approval and was $75,000 in 2025. Each restricted stock award vests on the date of the next annual meeting of shareholders following the date of grant, subject to the continued service of the non-employee director.\n\n \n\nAs of December 31, 2025, there were no shares of restricted stock outstanding under the Non-Employee Director Restricted Stock Plan.\n\n \n\nThe following table summarizes information about the restricted stock activity under the Non-Employee Director Restricted Stock Plan:\n\n \n\n \n\n \n\nShares\n\n \n\n \n\nWeighted\nAverage Grant\nDate Fair Value\nper Share\n\n \n\nNonvested balance at January 1, 2023\n\n \n\n \n\n11,888\n\n \n\n \n\n \n\n50.47\n\n \n\nGranted\n\n \n\n \n\n9,856\n\n \n\n \n\n \n\n53.26\n\n \n\nVested\n\n \n\n \n\n(10,402\n\n)\n\n \n\n \n\n50.47\n\n \n\nForfeited\n\n \n\n \n\n(1,486\n\n)\n\n \n\n \n\n55.08\n\n \n\nNonvested balance at December 31, 2023\n\n \n\n \n\n9,856\n\n \n\n \n\n \n\n53.26\n\n \n\nGranted\n\n \n\n \n\n12,110\n\n \n\n \n\n \n\n43.33\n\n \n\nVested\n\n \n\n \n\n(9,856\n\n)\n\n \n\n \n\n53.26\n\n \n\nForfeited\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nNonvested balance at December 31, 2024\n\n \n\n \n\n12,110\n\n \n\n \n\n \n\n43.33\n\n \n\nGranted\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nVested\n\n \n\n \n\n(12,110\n\n)\n\n \n\n \n\n43.33\n\n \n\nForfeited\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nNonvested balance at December 31, 2025\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\nThe Company recognized compensation expense of $227,000, $527,000, and $484,000 in 2025, 2024, and 2023, respectively, related to the Non-Employee Director Restricted Stock Plan.\n\n \n\n13.\nEarnings Per Share\n\nThe Company computes EPS in accordance with ASC Topic 260, Earnings Per Share. The Company has no participating unvested common shares which contain nonforfeitable rights to dividends and applies the treasury stock method in computing basic and diluted earnings per share.\n\n79\n\nAMERISAFE, INC. AND SUBSIDIARIES\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\nDecember 31, 2025\n\n \n\nBasic EPS is calculated by dividing net income by the weighted average number of common shares outstanding during the period.\n\nThe diluted EPS calculation includes potential common shares assumed issued under the treasury stock method, which reflects the potential dilution that would occur if any outstanding options were exercised or restricted stock becomes vested.\n\n \n\nThe calculation of basic and diluted EPS for the years ended December 31, 2025, 2024 and 2023 are presented below.\n\n \n\n \n\nFor the Year Ended December 31,\n\n \n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\n \n\n \n\n(in thousands, except earnings per share amounts)\n\n \n\nBasic EPS:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNet income – basic\n\n \n\n$\n\n47,145\n\n \n\n \n\n$\n\n55,436\n\n \n\n \n\n$\n\n62,108\n\n \n\nBasic weighted average common shares\n\n \n\n \n\n18,979\n\n \n\n \n\n \n\n19,071\n\n \n\n \n\n \n\n19,149\n\n \n\nBasic earnings per share\n\n \n\n$\n\n2.48\n\n \n\n \n\n$\n\n2.91\n\n \n\n \n\n$\n\n3.24\n\n \n\nDiluted EPS:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNet income – diluted\n\n \n\n$\n\n47,145\n\n \n\n \n\n$\n\n55,436\n\n \n\n \n\n$\n\n62,108\n\n \n\nDiluted weighted average common shares:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nWeighted average common shares\n\n \n\n \n\n18,979\n\n \n\n \n\n \n\n19,071\n\n \n\n \n\n \n\n19,149\n\n \n\nRestricted stock and RSUs\n\n \n\n \n\n103\n\n \n\n \n\n \n\n89\n\n \n\n \n\n \n\n77\n\n \n\nDiluted weighted average common shares\n\n \n\n \n\n19,082\n\n \n\n \n\n \n\n19,160\n\n \n\n \n\n \n\n19,226\n\n \n\nDiluted earnings per common share\n\n \n\n$\n\n2.47\n\n \n\n \n\n$\n\n2.89\n\n \n\n \n\n$\n\n3.23\n\n \n\nThe table below sets forth the reconciliation of the weighted average shares used for the basic and diluted EPS calculation.\n\n \n\n \n\nYears Ended\n\n \n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\nBasic weighted average common shares\n\n \n\n \n\n18,979,465\n\n \n\n \n\n \n\n19,070,717\n\n \n\n \n\n \n\n19,149,080\n\n \n\nAdd: Other common shares eligible for common dividends:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nRestricted stock and RSUs\n\n \n\n \n\n102,677\n\n \n\n \n\n \n\n89,088\n\n \n\n \n\n \n\n76,941\n\n \n\nDiluted weighted average common shares\n\n \n\n \n\n19,082,142\n\n \n\n \n\n \n\n19,159,805\n\n \n\n \n\n \n\n19,226,021\n\n \n\n \n\n14.\nComprehensive Income and Accumulated Other Comprehensive Loss\n\nComprehensive income includes net income plus unrealized gains (losses) on our available-for-sale investment securities, net of tax. In reporting comprehensive income on a net basis in the statements of comprehensive income, we used a 21% tax rate. The difference between net income as reported and comprehensive income was due primarily to changes in unrealized gains and losses, net of tax, on available-for-sale debt securities. The following table illustrates the changes in the balance of each component of accumulated other comprehensive loss for each period presented in the financial statements.\n\n \n\n \n\nYear Ended December 31,\n\n \n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\n \n\n \n\n(in thousands)\n\n \n\nBalance, beginning of period\n\n \n\n$\n\n(8,875\n\n)\n\n \n\n$\n\n(7,194\n\n)\n\n \n\n$\n\n(13,828\n\n)\n\nOther comprehensive income (loss) before reclassification\n\n \n\n \n\n5,345\n\n \n\n \n\n \n\n(1,919\n\n)\n\n \n\n \n\n6,202\n\n \n\nAmounts reclassified from accumulated other comprehensive loss, net\n\n \n\n \n\n313\n\n \n\n \n\n \n\n238\n\n \n\n \n\n \n\n432\n\n \n\nNet current period other comprehensive income (loss)\n\n \n\n \n\n5,658\n\n \n\n \n\n \n\n(1,681\n\n)\n\n \n\n \n\n6,634\n\n \n\nBalance, end of period\n\n \n\n$\n\n(3,217\n\n)\n\n \n\n$\n\n(8,875\n\n)\n\n \n\n$\n\n(7,194\n\n)\n\n \n\n80\n\nAMERISAFE, INC. AND SUBSIDIARIES\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\nDecember 31, 2025\n\n \n\n \n\nThe sale or credit loss allowance adjustment of an available-for-sale security results in amounts being reclassified from accumulated other comprehensive loss to current period net income. The effects of reclassifications out of accumulated other comprehensive loss by the respective line items of net income are presented in the following table.\n\nComponent of Accumulated Other\n   Comprehensive Loss\n\n \n\nYear Ended December 31,\n\n \n\n \n\nAffected line item in the statement\n of income\n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\n \n\n \n\n \n\n \n\n(in thousands)\n\n \n\n \n\n \n\nUnrealized losses on available-for-\n   sale securities\n\n \n\n$\n\n(396\n\n)\n\n \n\n$\n\n(302\n\n)\n\n \n\n$\n\n(547\n\n)\n\n \n\nNet realized gains (losses)\n   on investments\n\n \n\n \n\n \n\n(396\n\n)\n\n \n\n \n\n(302\n\n)\n\n \n\n \n\n(547\n\n)\n\n \n\nIncome before income taxes\n\n \n\n \n\n \n\n83\n\n \n\n \n\n \n\n64\n\n \n\n \n\n \n\n115\n\n \n\n \n\nIncome tax expense\n\n \n\n \n\n$\n\n(313\n\n)\n\n \n\n$\n\n(238\n\n)\n\n \n\n$\n\n(432\n\n)\n\n \n\nNet income\n\n \n\n \n\n \n\n \n\nPre-Tax\nAmount\n\n \n\n \n\nTax Expense (Benefit)\n\n \n\n \n\nNet-of-Tax\nAmount\n\n \n\n \n\n \n\n(in thousands)\n\n \n\nDecember 31, 2025\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nUnrealized gain on securities:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nUnrealized gain on available-for-sale securities\n\n \n\n$\n\n6,766\n\n \n\n \n\n$\n\n1,421\n\n \n\n \n\n$\n\n5,345\n\n \n\nReclassification adjustment for losses realized in net income\n\n \n\n \n\n396\n\n \n\n \n\n \n\n83\n\n \n\n \n\n \n\n313\n\n \n\nNet unrealized gain\n\n \n\n \n\n7,162\n\n \n\n \n\n \n\n1,504\n\n \n\n \n\n \n\n5,658\n\n \n\nOther comprehensive income\n\n \n\n$\n\n7,162\n\n \n\n \n\n$\n\n1,504\n\n \n\n \n\n$\n\n5,658\n\n \n\nDecember 31, 2024\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nUnrealized loss on securities:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nUnrealized loss on available-for-sale securities\n\n \n\n$\n\n(2,429\n\n)\n\n \n\n$\n\n(510\n\n)\n\n \n\n$\n\n(1,919\n\n)\n\nReclassification adjustment for losses realized in net income\n\n \n\n \n\n302\n\n \n\n \n\n \n\n64\n\n \n\n \n\n \n\n238\n\n \n\nNet unrealized loss\n\n \n\n \n\n(2,127\n\n)\n\n \n\n \n\n(446\n\n)\n\n \n\n \n\n(1,681\n\n)\n\nOther comprehensive loss\n\n \n\n$\n\n(2,127\n\n)\n\n \n\n$\n\n(446\n\n)\n\n \n\n$\n\n(1,681\n\n)\n\nDecember 31, 2023\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nUnrealized gain on securities:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nUnrealized gain on available-for-sale securities\n\n \n\n$\n\n7,850\n\n \n\n \n\n$\n\n1,648\n\n \n\n \n\n$\n\n6,202\n\n \n\nReclassification adjustment for losses realized in net income\n\n \n\n \n\n547\n\n \n\n \n\n \n\n115\n\n \n\n \n\n \n\n432\n\n \n\nNet unrealized gain\n\n \n\n \n\n8,397\n\n \n\n \n\n \n\n1,763\n\n \n\n \n\n \n\n6,634\n\n \n\nOther comprehensive income\n\n \n\n$\n\n8,397\n\n \n\n \n\n$\n\n1,763\n\n \n\n \n\n$\n\n6,634\n\n \n\n15.\nEmployee Benefit Plan\n\n \n\nThe Company’s 401(k) benefit plan is available to all employees. The Company matches 50% of employee contributions up to 6% of compensation for participating employees, subject to certain limitations. Employees are fully vested in employer contributions to this plan after five years. Company contributions to this plan were $0.8 million in 2025, and $0.7 million in both 2024 and 2023.\n\n \n\n16.\nCommitments and Contingencies\n\nThe Company is a party to various legal actions arising principally from claims made under insurance policies and contracts. Those actions are considered by the Company in estimating reserves for loss and loss adjustment expenses. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Company’s consolidated financial position or results of operations.\n\nThe Company provides workers’ compensation insurance in several states that maintain second-injury funds. Incurred losses on qualifying claims that exceed certain amounts may be recovered from these state funds. There is no assurance that the applicable states will continue to provide funding under these programs.\n\n81\n\nAMERISAFE, INC. AND SUBSIDIARIES\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\nDecember 31, 2025\n\n \n\nThe Company manages risk on certain long-duration claims by settling these claims through the purchase of annuities from unaffiliated carriers. In the event these carriers are unable to meet their obligations under these contracts, the Company could be liable to the claimants. The following table summarizes the fair value of the annuities at December 31, 2025, that the Company has purchased to satisfy its obligations.\n\nLife Insurance Company\n\n \n\nA.M. Best\nRating\n\n \n\nStatement Value\nof Annuities\nExceeding 1% of\nStatutory Surplus\n\n \n\n \n\n \n\n \n\n \n\n(in thousands)\n\n \n\nPacific Life Insurance Company\n\n \n\nA+\n\n \n\n$\n\n21,812\n\n \n\nMetropolitan Tower Life Insurance Company\n\n \n\nA+\n\n \n\n \n\n18,185\n\n \n\nAmerican General Life Insurance Company\n\n \n\nA\n\n \n\n \n\n11,983\n\n \n\nUnited of Omaha Life Insurance Company\n\n \n\nA+\n\n \n\n \n\n10,098\n\n \n\nNew York Life Insurance Company\n\n \n\nA++\n\n \n\n \n\n8,747\n\n \n\nBrighthouse Financial Life Insurance Company\n\n \n\nA\n\n \n\n \n\n8,446\n\n \n\nBerkshire Hathaway Life Insurance Company of Nebraska\n\n \n\nA++\n\n \n\n \n\n6,887\n\n \n\nJohn Hancock Life Insurance Company\n\n \n\nA+\n\n \n\n \n\n5,074\n\n \n\nAthene Annuity and Life Company\n\n \n\nA+\n\n \n\n \n\n3,145\n\n \n\nWilton Reassurance Company\n\n \n\nA+\n\n \n\n \n\n2,740\n\n \n\nProtective Life Insurance Company\n\n \n\nA+\n\n \n\n \n\n2,696\n\n \n\nOther\n\n \n\n \n\n \n\n \n\n5,847\n\n \n\n \n\n \n\n \n\n \n\n$\n\n105,660\n\n \n\nSubstantially all of the annuities are issued or guaranteed by life insurance companies that have an A.M. Best Company rating of “A” (Excellent) or better.\n\n \n\nThe Company has operating and finance leases for office space and equipment. Our leases have remaining lease terms of two months to 60 months, some of which include options to extend the leases for up to five years.\n\n \n\nThe components of lease expense were as follows:\n\n \n\n \n\n \n\nYear Ended December 31,\n\n \n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n \n\n(in thousands)\n\n \n\nOperating lease cost\n\n \n\n$\n\n106\n\n \n\n \n\n$\n\n101\n\n \n\nFinance lease cost:\n\n \n\n \n\n \n\n \n\n \n\n \n\nAmortization of right-of-use assets\n\n \n\n \n\n415\n\n \n\n \n\n \n\n398\n\n \n\nInterest on lease liabilities\n\n \n\n \n\n9\n\n \n\n \n\n \n\n11\n\n \n\nTotal finance lease cost\n\n \n\n$\n\n424\n\n \n\n \n\n$\n\n409\n\n \n\n \n\nSupplemental cash flow information related to leases was as follows:\n\n \n\n \n\n \n\nYear Ended December 31,\n\n \n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n \n\n(in thousands)\n\n \n\nCash paid for amounts included in the measurement of lease liabilities:\n\n \n\n \n\n \n\n \n\n \n\n \n\n   Operating cash flows from operating leases\n\n \n\n$\n\n(64\n\n)\n\n \n\n$\n\n247\n\n \n\n   Operating cash flows from finance leases\n\n \n\n \n\n9\n\n \n\n \n\n \n\n11\n\n \n\n   Financing cash flows from finance leases\n\n \n\n \n\n85\n\n \n\n \n\n \n\n85\n\n \n\n \n\n82\n\nAMERISAFE, INC. AND SUBSIDIARIES\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\nDecember 31, 2025\n\n \n\nRight-of-use assets obtained in the exchange for the lease obligations were as follows:\n\n \n\n \n\n \n\nDecember 31,\n\n \n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n \n\n(in thousands)\n\n \n\nOperating leases\n\n \n\n$\n\n21\n\n \n\n \n\n$\n\n325\n\n \n\nFinance leases\n\n \n\n \n\n212\n\n \n\n \n\n \n\n—\n\n \n\n \n\nSupplemental balance sheet information related to leases was as follows:\n\n \n\n \n\n \n\nDecember 31, 2025\n\n \n\n \n\nDecember 31, 2024\n\n \n\n \n\nBalance Sheet Classification\n\n \n\n \n\n(in thousands)\n\n \n\n \n\n \n\nOperating leases:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nOperating lease right-of-use assets\n\n \n\n$\n\n212\n\n \n\n \n\n$\n\n276\n\n \n\n \n\nOther assets\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nOperating lease liabilities\n\n \n\n$\n\n212\n\n \n\n \n\n$\n\n276\n\n \n\n \n\nAccounts payable and other liabilities\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nFinance leases:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nFinance lease right-of-use assets\n\n \n\n$\n\n656\n\n \n\n \n\n$\n\n462\n\n \n\n \n\n \n\nFinance lease accumulated amortization\n   right-of-use assets\n\n \n\n \n\n(415\n\n)\n\n \n\n \n\n(398\n\n)\n\n \n\n \n\nProperty and equipment, net\n\n \n\n$\n\n241\n\n \n\n \n\n$\n\n64\n\n \n\n \n\nProperty and equipment, net\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nFinance lease liabilities\n\n \n\n$\n\n279\n\n \n\n \n\n$\n\n152\n\n \n\n \n\nAccounts payable and other liabilities\n\n \n\n \n\n \n\nDecember 31,\n\n \n\n \n\n2025\n\n \n\n2024\n\nWeighted average remaining lease term:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nOperating leases\n\n \n\n \n\n2.9\n\n \n\nyears\n\n \n\n \n\n3.8\n\n \n\nyears\n\nFinance leases\n\n \n\n \n\n4.2\n\n \n\nyears\n\n \n\n \n\n2.1\n\n \n\nyears\n\nWeighted average discount rate:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nOperating leases\n\n \n\n \n\n8.46\n\n%\n\n \n\n \n\n \n\n8.45\n\n%\n\n \n\nFinance leases\n\n \n\n \n\n6.92\n\n%\n\n \n\n \n\n \n\n5.89\n\n%\n\n \n\n \n\nThe following is a maturity analysis of the annual undiscounted cash flows of the operating and finance lease liabilities as of December 31, 2025:\n\n \n\n \n\nOperating Leases\n\n \n\n \n\nFinance Leases\n\n \n\n \n\n \n\n(in thousands)\n\n \n\n2026\n\n \n\n$\n\n86\n\n \n\n \n\n$\n\n100\n\n \n\n2027\n\n \n\n \n\n73\n\n \n\n \n\n \n\n72\n\n \n\n2028\n\n \n\n \n\n75\n\n \n\n \n\n \n\n50\n\n \n\n2029\n\n \n\n \n\n6\n\n \n\n \n\n \n\n50\n\n \n\n2030\n\n \n\n \n\n—\n\n \n\n \n\n \n\n50\n\n \n\nTotal lease payments\n\n \n\n \n\n240\n\n \n\n \n\n \n\n322\n\n \n\nLess imputed interest\n\n \n\n \n\n28\n\n \n\n \n\n \n\n43\n\n \n\nTotal\n\n \n\n$\n\n212\n\n \n\n \n\n$\n\n279\n\n \n\nRental expense was $0.1 million in each of 2025, 2024, and 2023.\n\n \n\n83\n\nAMERISAFE, INC. AND SUBSIDIARIES\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\nDecember 31, 2025\n\n \n\n17.\nConcentration of Operations\n\nThe Company derives its premium revenues from its operations in the workers’ compensation insurance line of business.\n\nNet premiums earned during 2025, 2024 and 2023 for the top ten states in 2025 and all others are shown below:\n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\n \n\n \n\nDollars\n\n \n\n \n\nPercent\n\n \n\n \n\nDollars\n\n \n\n \n\nPercent\n\n \n\n \n\nDollars\n\n \n\n \n\nPercent\n\n \n\n \n\n \n\n(Dollars in thousands)\n\n \n\nFlorida\n\n \n\n$\n\n44,113\n\n \n\n \n\n \n\n15.6\n\n%\n\n \n\n$\n\n38,976\n\n \n\n \n\n \n\n14.4\n\n%\n\n \n\n$\n\n33,838\n\n \n\n \n\n \n\n12.7\n\n%\n\nGeorgia\n\n \n\n \n\n27,345\n\n \n\n \n\n \n\n9.7\n\n%\n\n \n\n \n\n28,267\n\n \n\n \n\n \n\n10.4\n\n%\n\n \n\n \n\n30,504\n\n \n\n \n\n \n\n11.4\n\n%\n\nIllinois\n\n \n\n \n\n20,830\n\n \n\n \n\n \n\n7.4\n\n%\n\n \n\n \n\n16,294\n\n \n\n \n\n \n\n6.0\n\n%\n\n \n\n \n\n13,072\n\n \n\n \n\n \n\n4.9\n\n%\n\nPennsylvania\n\n \n\n \n\n20,272\n\n \n\n \n\n \n\n7.2\n\n%\n\n \n\n \n\n19,564\n\n \n\n \n\n \n\n7.2\n\n%\n\n \n\n \n\n19,963\n\n \n\n \n\n \n\n7.5\n\n%\n\nNorth Carolina\n\n \n\n \n\n18,138\n\n \n\n \n\n \n\n6.4\n\n%\n\n \n\n \n\n15,863\n\n \n\n \n\n \n\n5.9\n\n%\n\n \n\n \n\n16,432\n\n \n\n \n\n \n\n6.2\n\n%\n\nLouisiana\n\n \n\n \n\n17,218\n\n \n\n \n\n \n\n6.1\n\n%\n\n \n\n \n\n16,998\n\n \n\n \n\n \n\n6.3\n\n%\n\n \n\n \n\n21,150\n\n \n\n \n\n \n\n7.9\n\n%\n\nWisconsin\n\n \n\n \n\n10,996\n\n \n\n \n\n \n\n3.9\n\n%\n\n \n\n \n\n10,769\n\n \n\n \n\n \n\n4.0\n\n%\n\n \n\n \n\n11,724\n\n \n\n \n\n \n\n4.4\n\n%\n\nVirginia\n\n \n\n \n\n10,507\n\n \n\n \n\n \n\n3.7\n\n%\n\n \n\n \n\n10,151\n\n \n\n \n\n \n\n3.8\n\n%\n\n \n\n \n\n10,400\n\n \n\n \n\n \n\n3.8\n\n%\n\nAlaska\n\n \n\n \n\n9,994\n\n \n\n \n\n \n\n3.4\n\n%\n\n \n\n \n\n8,531\n\n \n\n \n\n \n\n3.2\n\n%\n\n \n\n \n\n8,178\n\n \n\n \n\n \n\n3.1\n\n%\n\nMinnesota\n\n \n\n \n\n8,869\n\n \n\n \n\n \n\n3.1\n\n%\n\n \n\n \n\n8,323\n\n \n\n \n\n \n\n3.1\n\n%\n\n \n\n \n\n8,845\n\n \n\n \n\n \n\n3.3\n\n%\n\nAll others\n\n \n\n \n\n94,775\n\n \n\n \n\n \n\n33.5\n\n%\n\n \n\n \n\n96,903\n\n \n\n \n\n \n\n35.7\n\n%\n\n \n\n \n\n93,019\n\n \n\n \n\n \n\n34.8\n\n%\n\nTotal net premiums earned\n\n \n\n$\n\n283,057\n\n \n\n \n\n \n\n100.0\n\n%\n\n \n\n$\n\n270,639\n\n \n\n \n\n \n\n100.0\n\n%\n\n \n\n$\n\n267,125\n\n \n\n \n\n \n\n100.0\n\n%\n\n \n\n18.\nFair Values of Financial Instruments\n\nThe Company determines fair value amounts for financial instruments using available third-party market information. When such information is not available, the Company determines the fair value amounts using appropriate valuation methodologies. Nonfinancial instruments such as real estate, property and equipment, deferred policy acquisition costs, deferred income taxes and loss and loss adjustment expense reserves are excluded from the fair value disclosure.\n\nCash and Cash Equivalents—The carrying amounts reported in the accompanying consolidated balance sheets for these financial instruments approximate their fair values.\n\nInvestments—The Company’s fixed maturity securities are priced by an independent pricing service. The prices provided by the independent pricing service are estimated based on observable market data in active markets utilizing pricing models and processes, which may include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, benchmark securities, bids, offers, sector groupings, matrix pricing and reference data. The Company reviews the prices provided by pricing services for reasonableness and compares them to prices provided by the Company’s custodian which uses different pricing services.\n\nShort-Term Investments—The carrying amounts reported in the accompanying consolidated balance sheets for these financial instruments approximate their fair value.\n\nThe following table summarizes the carrying or reported values and corresponding fair values for financial instruments:\n\n \n\n \n\nDecember 31,\n\n \n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n \n\nCarrying\nAmount\n\n \n\n \n\nFair\nValue\n\n \n\n \n\nCarrying\nAmount\n\n \n\n \n\nFair\nValue\n\n \n\n \n\n \n\n(in thousands)\n\n \n\nAssets:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nFixed maturity securities—held-to-maturity\n\n \n\n$\n\n350,087\n\n \n\n \n\n$\n\n344,576\n\n \n\n \n\n$\n\n413,061\n\n \n\n \n\n$\n\n399,721\n\n \n\nFixed maturity securities—available-for-sale\n\n \n\n \n\n313,038\n\n \n\n \n\n \n\n313,038\n\n \n\n \n\n \n\n307,750\n\n \n\n \n\n \n\n307,750\n\n \n\nEquity securities\n\n \n\n \n\n57,493\n\n \n\n \n\n \n\n57,493\n\n \n\n \n\n \n\n58,629\n\n \n\n \n\n \n\n58,629\n\n \n\nShort-term investments\n\n \n\n \n\n14,237\n\n \n\n \n\n \n\n14,237\n\n \n\n \n\n \n\n9,338\n\n \n\n \n\n \n\n9,338\n\n \n\nCash and cash equivalents\n\n \n\n \n\n61,926\n\n \n\n \n\n \n\n61,926\n\n \n\n \n\n \n\n44,045\n\n \n\n \n\n \n\n44,045\n\n \n\n84\n\nAMERISAFE, INC. AND SUBSIDIARIES\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\nDecember 31, 2025\n\n \n\nThe Company carries available-for-sale securities and equity securities at fair value in our consolidated financial statements and determines fair value measurements and disclosure in accordance with FASB ASC Topic 820, Fair Value Measurements and Disclosures.\n\nThe Company determines the fair values of its financial instruments based on the fair value hierarchy established in ASC Topic 820, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard defines fair value, describes three levels of inputs that may be used to measure fair value, and expands disclosures about fair value measurements.\n\nFair value is defined in ASC Topic 820 as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is the price to sell an asset or transfer a liability and, therefore, represents an exit price, not an entry price. Fair value is the exit price in the principal market (or, if lacking a principal market, the most advantageous market) in which the reporting entity would transact. Fair value is a market-based measurement, not an entity-specific measurement, and, as such, is determined based on the assumptions that market participants would use in pricing the asset or liability. The exit price objective of a fair value measurement applies regardless of the reporting entity’s intent and/or ability to sell the asset or transfer the liability at the measurement date.\n\nASC Topic 820 requires the use of valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities. The income approach uses valuation techniques to convert future amounts, such as cash flows or earnings, to a single present value amount on a discounted basis. The cost approach is based on the amount that currently would be required to replace the service capacity of an asset, also known as current replacement cost. Valuation techniques used to measure fair value are to be consistently applied.\n\nIn ASC Topic 820, inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, for example, the risk inherent in a particular valuation technique used to measure fair value (such as a pricing model) and/or the risk inherent in the inputs to the valuation technique. Inputs may be observable or unobservable:\n\n•\nObservable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity.\n\n•\nUnobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.\n\nValuation techniques used to measure fair value are intended to maximize the use of observable inputs and minimize the use of unobservable inputs. ASC Topic 820 establishes a fair value hierarchy that prioritizes the use of inputs used in valuation techniques into the following three levels:\n\n•\nLevel 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.\n\n•\nLevel 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability, or inputs that are derived principally from or corroborated by observable market data.\n\n•\nLevel 3 inputs are unobservable inputs for the asset or liability. Unobservable inputs are to be used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date.\n\nIn general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon internally developed models that primarily use, as inputs, observable market-based parameters.\n\nThe fair values of the Company’s investments are based upon prices provided by an independent pricing service. The Company has reviewed these prices for reasonableness and has not adjusted any prices received from the independent provider. Securities reported at fair value utilizing Level 1 inputs represent assets whose fair value is determined based upon observable unadjusted quoted market prices for identical assets in active markets. Level 2 securities represent assets whose fair value is determined using observable\n\n85\n\nAMERISAFE, INC. AND SUBSIDIARIES\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\nDecember 31, 2025\n\n \n\nmarket information such as previous day trade prices, quotes from less active markets or quoted prices of securities with similar characteristics. There were no transfers between Level 1 and Level 2 during the year ended December 31, 2025.\n\nAssets measured at fair value on a recurring basis as of December 31, 2025 and 2024 were as follows:\n\n \n\n \n\nDecember 31, 2025\n\n \n\n \n\n \n\nLevel 1\nInputs\n\n \n\n \n\nLevel 2\nInputs\n\n \n\n \n\nLevel 3\nInputs\n\n \n\n \n\nTotal Fair\nValue\n\n \n\n \n\n \n\n(in thousands)\n\n \n\nFinancial instruments carried at fair value,\n   classified as part of:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nSecurities available-for-sale—fixed maturity:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nStates and political subdivisions\n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n158,190\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n158,190\n\n \n\nCorporate bonds\n\n \n\n \n\n—\n\n \n\n \n\n \n\n138,704\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n138,704\n\n \n\nU.S. agency-based mortgage-backed securities\n\n \n\n \n\n—\n\n \n\n \n\n \n\n3,641\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n3,641\n\n \n\nU.S. Treasury securities\n\n \n\n \n\n12,503\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n12,503\n\n \n\nTotal securities available-for-sale—fixed maturity\n\n \n\n \n\n12,503\n\n \n\n \n\n \n\n300,535\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n313,038\n\n \n\nEquity securities:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nDomestic common stock - Exchange Traded Funds\n\n \n\n \n\n57,493\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n57,493\n\n \n\nTotal\n\n \n\n$\n\n69,996\n\n \n\n \n\n$\n\n300,535\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n370,531\n\n \n\n \n\n \n\nDecember 31, 2024\n\n \n\n \n\n \n\nLevel 1\nInputs\n\n \n\n \n\nLevel 2\nInputs\n\n \n\n \n\nLevel 3\nInputs\n\n \n\n \n\nTotal Fair\nValue\n\n \n\n \n\n \n\n(in thousands)\n\n \n\nFinancial instruments carried at fair value,\n   classified as part of:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nSecurities available-for-sale—fixed maturity:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nStates and political subdivisions\n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n148,206\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n148,206\n\n \n\nCorporate bonds\n\n \n\n \n\n—\n\n \n\n \n\n \n\n141,535\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n141,535\n\n \n\nU.S. agency-based mortgage-backed securities\n\n \n\n \n\n—\n\n \n\n \n\n \n\n4,059\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n4,059\n\n \n\nU.S. Treasury securities\n\n \n\n \n\n13,950\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n13,950\n\n \n\nTotal securities available-for-sale—fixed maturity\n\n \n\n \n\n13,950\n\n \n\n \n\n \n\n293,800\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n307,750\n\n \n\nEquity securities:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nDomestic common stock - Exchange Traded Funds\n\n \n\n \n\n58,629\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n58,629\n\n \n\nTotal\n\n \n\n$\n\n72,579\n\n \n\n \n\n$\n\n293,800\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n366,379\n\n \n\nAssets measured at amortized cost net of allowance for credit losses as of December 31, 2025 and 2024 were as follows:\n\n \n\n \n\nDecember 31, 2025\n\n \n\n \n\n \n\nLevel 1\nInputs\n\n \n\n \n\nLevel 2\nInputs\n\n \n\n \n\nLevel 3\nInputs\n\n \n\n \n\nTotal Fair\nValue\n\n \n\n \n\n \n\n(in thousands)\n\n \n\nSecurities held-to-maturity—fixed maturity:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nStates and political subdivisions\n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n317,529\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n317,529\n\n \n\nCorporate bonds\n\n \n\n \n\n—\n\n \n\n \n\n \n\n16,245\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n16,245\n\n \n\nU.S. agency-based mortgage-backed securities\n\n \n\n \n\n—\n\n \n\n \n\n \n\n2,348\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n2,348\n\n \n\nU.S. Treasury securities\n\n \n\n \n\n8,445\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n8,445\n\n \n\nAsset-backed securities\n\n \n\n \n\n—\n\n \n\n \n\n \n\n9\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n9\n\n \n\nTotal held-to-maturity\n\n \n\n$\n\n8,445\n\n \n\n \n\n$\n\n336,131\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n344,576\n\n \n\n \n\n86\n\nAMERISAFE, INC. AND SUBSIDIARIES\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\nDecember 31, 2025\n\n \n\n \n\n \n\nDecember 31, 2024\n\n \n\n \n\n \n\nLevel 1\nInputs\n\n \n\n \n\nLevel 2\nInputs\n\n \n\n \n\nLevel 3\nInputs\n\n \n\n \n\nTotal Fair\nValue\n\n \n\n \n\n \n\n(in thousands)\n\n \n\nSecurities held-to-maturity—fixed maturity:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nStates and political subdivisions\n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n356,268\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n356,268\n\n \n\nCorporate bonds\n\n \n\n \n\n—\n\n \n\n \n\n \n\n32,670\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n32,670\n\n \n\nU.S. agency-based mortgage-backed securities\n\n \n\n \n\n—\n\n \n\n \n\n \n\n2,643\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n2,643\n\n \n\nU.S. Treasury securities\n\n \n\n \n\n8,127\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n8,127\n\n \n\nAsset-backed securities\n\n \n\n \n\n—\n\n \n\n \n\n \n\n13\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n13\n\n \n\nTotal held-to-maturity\n\n \n\n$\n\n8,127\n\n \n\n \n\n$\n\n391,594\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n399,721\n\n \n\n \n\nAt December 31, 2025 and 2024, the Company did not hold any securities measured at fair value on a nonrecurring basis due to expected credit losses.\n\n \n\n19. Segment Reporting\n\nThe Company operates as a single reportable segment, Insurance Operations, through its wholly-owned subsidiaries. Profits, losses and assets are evaluated on a consolidated basis.\n\nWe are a specialty provider of workers’ compensation insurance focused on small to mid-sized employers engaged in high hazard industries. The Insurance Operations segment derives premium revenues from the sales of workers’ compensation insurance through independent agencies, including retail and wholesale brokers and agents. The accounting policies of the Insurance Operations are the same as those described in the significant accounting policies.\n\nThe Company’s Chief Operating Decision Maker (CODM) is the Chief Executive Officer (CEO). As the Company's CODM, the CEO directs and controls the Company's operations and gives strategic guidance and direction to ensure the Company achieves its mission and objectives. The CODM evaluates the performance of and allocates resources for the Insurance Operations segment based on the operating results presented on the consolidated income statement, balance sheet and cash flow statement.\n\nTwo of the key financial measures used to evaluate our performance are return on average equity and growth in book value per share adjusted for dividends paid to shareholders and share repurchases. We calculate return on average equity by dividing annual net income by the average of annual shareholders’ equity. We calculate book value per share by dividing ending shareholders’ equity by the number of common shares outstanding.\n\nThe measure of segment assets is reported on the balance sheet as total consolidated assets.\n\nThe Company does not have intra-entity sales or asset transfers.\n\nThe Company is a monoline insurance company operating solely within the U.S. and does not have revenue from transactions with a single policyholder accounting for 10% or more of its revenues.\n\n \n\n87\n\nAMERISAFE, INC. AND SUBSIDIARIES\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\nDecember 31, 2025\n\n \n\n20. Capital Management\n\nShare Repurchase Program—The Company’s board of directors initiated a share repurchase program in February 2010. In July 2025, our board of directors reauthorized this program with a limit of $25.0 million with no expiration date. As of December 31, 2025, $16.9 million was available for future repurchases under the share repurchase program. The repurchases may be effected from time to time pursuant to trading plans meeting the requirements of Rule 10b5-1 under the Exchange Act. The share repurchase program does not obligate the Company to repurchase any shares of the Company's common stock and may be modified, increased, suspended or terminated at the discretion of our board of directors. The board of directors' determination will depend on a variety of factors, including, but not limited to, market conditions and applicable regulatory considerations. It is anticipated that future repurchases will be funded from available capital.\n\nDuring the year ended December 31, 2025, there were 291,289 shares repurchased under this program for $12.1 million, or an average price of $41.55, including commissions and excise tax.\n\nDuring the year ended December 31, 2024, there were 113,411 shares repurchased under this program for $5.1 million, or an average price of $45.17, including commissions and excise tax.\n\nDuring the year ended December 31, 2023, there were 46,741 shares repurchased under this program for $2.2 million, or an average price of $46.45, including commissions and excise tax.\n\nDividends—In 2013, the Company’s board of directors initiated a regular quarterly cash dividend. During 2025, the Company’s board of directors declared a quarterly cash dividend of $0.39 per share compared to $0.37 per share in 2024, and $0.34 per share in 2023. The Company declared special cash dividends totaling $1.00, $3.00 and $3.50 per share in 2025, 2024 and 2023, respectively.\n\n \n\n21. Subsequent Events\n\nOn February 24, 2026 the Company's board of directors declared a regular quarterly cash dividend of $0.41 per share payable on March 20, 2026 to shareholders of record as of March 13, 2026. The Company’s board of directors considers the declaration and payment of a regular cash dividend each calendar quarter, and any such declaration and payment of dividends is at the discretion of the Company’s board of directors.\n\n \n\n88\n\n \n\nSchedule II. Condensed Financial Information of Registrant\n\nAMERISAFE, INC.\n\nCONDENSED BALANCE SHEETS\n\n \n\n \n\nDecember 31,\n\n \n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n \n\n(in thousands)\n\n \n\nAssets:\n\n \n\n \n\n \n\n \n\n \n\n \n\nInvestments:\n\n \n\n \n\n \n\n \n\n \n\n \n\nFixed maturity securities—available-for-sale, at fair value\n   (amortized cost $997 and $4,988 in 2025 and 2024, respectively)\n\n \n\n$\n\n970\n\n \n\n \n\n$\n\n4,925\n\n \n\nEquity securities, at fair value (cost $0, and $5,110 in 2025\n   and 2024, respectively)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n8,000\n\n \n\nShort-term investments\n\n \n\n \n\n4,593\n\n \n\n \n\n \n\n—\n\n \n\nInvestment in subsidiaries\n\n \n\n \n\n220,923\n\n \n\n \n\n \n\n230,936\n\n \n\nTotal investments\n\n \n\n \n\n226,486\n\n \n\n \n\n \n\n243,861\n\n \n\nCash and cash equivalents\n\n \n\n \n\n19,946\n\n \n\n \n\n \n\n11,793\n\n \n\nDeferred income taxes\n\n \n\n \n\n1,240\n\n \n\n \n\n \n\n685\n\n \n\nNotes receivable from subsidiaries\n\n \n\n \n\n2,398\n\n \n\n \n\n \n\n2,007\n\n \n\nProperty and equipment, net\n\n \n\n \n\n1,311\n\n \n\n \n\n \n\n762\n\n \n\nFederal income tax recoverable\n\n \n\n \n\n3,252\n\n \n\n \n\n \n\n1,676\n\n \n\nOther assets\n\n \n\n \n\n1,261\n\n \n\n \n\n \n\n1,051\n\n \n\nTotal assets\n\n \n\n$\n\n255,894\n\n \n\n \n\n$\n\n261,835\n\n \n\nLiabilities and shareholders’ equity\n\n \n\n \n\n \n\n \n\n \n\n \n\nLiabilities:\n\n \n\n \n\n \n\n \n\n \n\n \n\nAccounts payable and other liabilities\n\n \n\n \n\n4,296\n\n \n\n \n\n \n\n4,494\n\n \n\nTotal liabilities\n\n \n\n \n\n4,296\n\n \n\n \n\n \n\n4,494\n\n \n\nShareholders' equity (net of Treasury stock of $54,155 and $42,052\n   at December 31, 2025 and 2024, respectively)\n\n \n\n \n\n251,598\n\n \n\n \n\n \n\n257,341\n\n \n\nTotal liabilities and shareholders' equity\n\n \n\n$\n\n255,894\n\n \n\n \n\n$\n\n261,835\n\n \n\n89\n\n \n\nSchedule II. Condensed Financial Information of Registrant – (Continued)\n\nAMERISAFE, INC.\n\nCONDENSED STATEMENTS OF INCOME\n\n \n\n \n\nYear Ended December 31,\n\n \n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\n \n\n \n\n(in thousands)\n\n \n\nRevenues\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNet investment income\n\n \n\n$\n\n3,593\n\n \n\n \n\n$\n\n2,279\n\n \n\n \n\n$\n\n4,861\n\n \n\nNet unrealized gains (losses) on equity securities\n\n \n\n \n\n(2,890\n\n)\n\n \n\n \n\n141\n\n \n\n \n\n \n\n(845\n\n)\n\nFee and other income\n\n \n\n \n\n8,856\n\n \n\n \n\n \n\n10,395\n\n \n\n \n\n \n\n8,933\n\n \n\nTotal revenues\n\n \n\n \n\n9,559\n\n \n\n \n\n \n\n12,815\n\n \n\n \n\n \n\n12,949\n\n \n\nExpenses\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nOther operating costs\n\n \n\n \n\n8,856\n\n \n\n \n\n \n\n10,395\n\n \n\n \n\n \n\n8,932\n\n \n\nTotal expenses\n\n \n\n \n\n8,856\n\n \n\n \n\n \n\n10,395\n\n \n\n \n\n \n\n8,932\n\n \n\nIncome before income taxes and equity in earnings of subsidiaries\n\n \n\n \n\n703\n\n \n\n \n\n \n\n2,420\n\n \n\n \n\n \n\n4,017\n\n \n\nIncome tax expense\n\n \n\n \n\n617\n\n \n\n \n\n \n\n1,412\n\n \n\n \n\n \n\n1,055\n\n \n\nGain before equity in earnings of subsidiaries\n\n \n\n \n\n86\n\n \n\n \n\n \n\n1,008\n\n \n\n \n\n \n\n2,962\n\n \n\nEquity in net income of subsidiaries\n\n \n\n \n\n47,058\n\n \n\n \n\n \n\n54,428\n\n \n\n \n\n \n\n59,146\n\n \n\nNet income\n\n \n\n$\n\n47,144\n\n \n\n \n\n$\n\n55,436\n\n \n\n \n\n$\n\n62,108\n\n \n\n90\n\n \n\nSchedule II. Condensed Financial Information of Registrant – (Continued)\n\nAMERISAFE, INC.\n\nCONDENSED STATEMENTS OF CASH FLOWS\n\n \n\n \n\nYear Ended December 31,\n\n \n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\n \n\n \n\n(in thousands)\n\n \n\nOperating activities\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNet cash provided by operating activities\n\n \n\n$\n\n554\n\n \n\n \n\n$\n\n2,623\n\n \n\n \n\n$\n\n5,591\n\n \n\nInvesting activities\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nPurchases of investments\n\n \n\n \n\n(4,588\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(24,885\n\n)\n\nProceeds from sales of investments\n\n \n\n \n\n12,223\n\n \n\n \n\n \n\n22,502\n\n \n\n \n\n \n\n35,013\n\n \n\nPurchases of property and equipment\n\n \n\n \n\n(1,124\n\n)\n\n \n\n \n\n231\n\n \n\n \n\n \n\n(482\n\n)\n\nDividends from subsidiary\n\n \n\n \n\n62,700\n\n \n\n \n\n \n\n71,000\n\n \n\n \n\n \n\n56,000\n\n \n\nNet cash provided by investing activities\n\n \n\n \n\n69,211\n\n \n\n \n\n \n\n93,733\n\n \n\n \n\n \n\n65,646\n\n \n\nFinancing activities\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nFinance lease purchases\n\n \n\n \n\n(85\n\n)\n\n \n\n \n\n(85\n\n)\n\n \n\n \n\n(91\n\n)\n\nShare-based compensation related tax withholding\n\n \n\n \n\n(817\n\n)\n\n \n\n \n\n(554\n\n)\n\n \n\n \n\n(944\n\n)\n\nPurchase of treasury stock\n\n \n\n \n\n(12,103\n\n)\n\n \n\n \n\n(5,123\n\n)\n\n \n\n \n\n(2,171\n\n)\n\nDividends to shareholders\n\n \n\n \n\n(48,607\n\n)\n\n \n\n \n\n(85,436\n\n)\n\n \n\n \n\n(93,307\n\n)\n\nNet cash used in financing activities\n\n \n\n \n\n(61,612\n\n)\n\n \n\n \n\n(91,198\n\n)\n\n \n\n \n\n(96,513\n\n)\n\nChange in cash and cash equivalents\n\n \n\n \n\n8,153\n\n \n\n \n\n \n\n5,158\n\n \n\n \n\n \n\n(25,276\n\n)\n\nCash and cash equivalents at beginning of year\n\n \n\n \n\n11,793\n\n \n\n \n\n \n\n6,635\n\n \n\n \n\n \n\n31,911\n\n \n\nCash and cash equivalents at end of year\n\n \n\n$\n\n19,946\n\n \n\n \n\n$\n\n11,793\n\n \n\n \n\n$\n\n6,635\n\n \n\n \n\n91\n\n \n\nSchedule VI. Supplemental Information Concerning Property—Casualty Insurance Operations\n\nAMERISAFE, INC. AND SUBSIDIARIES\n\n \n\n \n\n \n\nDeferred\nPolicy\nAcquisition\nCosts\n\n \n\n \n\nReserves\nfor Unpaid\nLoss and Loss\nAdjustment\nExpense\n\n \n\n \n\nUnearned\nPremium\n\n \n\n \n\nNet\nPremiums\nEarned\n\n \n\n \n\nNet\nInvestment\nIncome\n\n \n\n \n\nLoss and\nLAE\nRelated to\nCurrent\nPeriod\n\n \n\n \n\nLoss and\nLAE\nRelated to\nPrior\nPeriods\n\n \n\n \n\nAmortization\nof Deferred\nPolicy\nAcquisition\nCosts\n\n \n\n \n\nPaid Claims\nand Claim\nAdjustment\nExpenses\n\n \n\n \n\nNet\nPremiums\nWritten\n\n \n\n \n\n \n\n(in thousands)\n\n \n\n2025\n\n \n\n$\n\n21,085\n\n \n\n \n\n$\n\n613,583\n\n \n\n \n\n$\n\n135,503\n\n \n\n \n\n$\n\n283,057\n\n \n\n \n\n$\n\n26,993\n\n \n\n \n\n$\n\n203,802\n\n \n\n \n\n$\n\n(33,865\n\n)\n\n \n\n$\n\n(44,224\n\n)\n\n \n\n$\n\n200,996\n\n \n\n \n\n$\n\n296,634\n\n \n\n2024\n\n \n\n \n\n19,151\n\n \n\n \n\n \n\n651,309\n\n \n\n \n\n \n\n121,926\n\n \n\n \n\n \n\n270,639\n\n \n\n \n\n \n\n29,212\n\n \n\n \n\n \n\n192,153\n\n \n\n \n\n \n\n(34,886\n\n)\n\n \n\n \n\n(42,172\n\n)\n\n \n\n \n\n172,948\n\n \n\n \n\n \n\n275,980\n\n \n\n2023\n\n \n\n \n\n17,975\n\n \n\n \n\n \n\n673,994\n\n \n\n \n\n \n\n116,585\n\n \n\n \n\n \n\n267,125\n\n \n\n \n\n \n\n31,339\n\n \n\n \n\n \n\n189,659\n\n \n\n \n\n \n\n(41,396\n\n)\n\n \n\n \n\n(40,859\n\n)\n\n \n\n \n\n177,497\n\n \n\n \n\n \n\n268,734\n\n \n\n \n\n \n\n92"}