AMERISAFE (AMSF) 8-K Amerisafe Announces 2011 Fourth Quarter

Exhibit 99.1

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

AMERISAFE ANNOUNCES 2011 FOURTH QUARTER

AND YEAR-END RESULTS

DeRidder, LA – March 1, 2012 - AMERISAFE, Inc. (Nasdaq: AMSF), a specialty provider of hazardous workers’ compensation insurance, today announced results for the fourth quarter and year ended December 31, 2011.

	Three Months Ended December 31,									Twelve Months Ended December 31,
	2011			2010			% Change			2011			2010			% Change
	(in thousands, except per share data)
Net premiums earned	$	66,211		$	56,429			17.3	%	$	251,015		$	218,881			14.7	%
Net investment income		6,702			6,458			3.8	%		26,340			26,242			0.4	%
Net realized gains on investments (pre-tax)		1,468			165						2,228			2,449			(9.0	)%
Net income		8,058			8,547			(5.7	)%		24,125			34,606			(30.3	)%
Diluted earnings per share	$	0.44		$	0.45			(2.2	)%	$	1.29		$	1.81			(28.7	)%
Book value per share	$	19.33		$	17.99			7.5	%	$	19.33		$	17.99			7.5	%
Net combined ratio		98.4	%		89.2	%					100.5	%		92.4	%
Return on average equity		9.3	%		10.5	%					7.1	%		10.9	%

Financial data for 2010 included in this release has been adjusted to correct an immaterial error related to the accounting for our estimate of state guaranty fund assessments.

Commenting on these results, Allen Bradley, AMERISAFE’s Chairman and Chief Executive Officer, stated, “The workers’ compensation market continues to firm as carriers reassess their positions. AMERISAFE is capitalizing on this transition in the marketplace. We will continue to seek growth opportunities but remain committed to enhancing underwriting margins in the process. Fortunately, current market conditions should allow us to accomplish both objectives.”

Insurance Results

	Three Months Ended December 31,									Twelve Months Ended December 31,
	2011			2010			% Change			2011			2010			% Change
	(in thousands)
Gross premiums written	$	62,128		$	52,143			19.1	%	$	272,101		$	228,424			19.1	%
Net premiums earned		66,211			56,429			17.3	%		251,015			218,881			14.7	%
Loss and loss adjustment expenses incurred		49,627			39,390			26.0	%		189,706			157,388			20.5	%
Underwriting and certain other operating costs, commissions and salaries and benefits		15,040			10,831			38.9	%		60,911			44,032			38.3	%
Policyholder dividends		474			108						1,464			834			75.5	%
Underwriting profit (pre-tax)		1,070			6,100			(82.5	)%		(1,066	)		16,627			(106.4	)%
Insurance Ratios:
Current accident year loss ratio		78.2	%		83.5	%					78.2	%		81.8	%
Prior accident year loss ratio		(3.2	)%		(13.7	)%					(2.6	)%		(9.9	)%
Net loss ratio		75.0	%		69.8	%					75.6	%		71.9	%
Net underwriting expense ratio		22.7	%		19.2	%					24.3	%		20.1	%
Net dividend ratio		0.7	%		0.2	%					0.6	%		0.4	%
Net combined ratio		98.4	%		89.2	%					100.5	%		92.4	%

• Gross premiums written increased 19.1% in both the three and twelve month periods. Payroll audits and related premium adjustments for policies written in previous periods increased premiums by $3.8 million in the fourth quarter and $5.9 million in the twelve months ended December 31, 2011. In 2010, these premium adjustments reduced premiums by $2.5 million in the fourth quarter and $27.2 million in the twelve months ended December 31. Additionally, voluntary premiums written increased 5.9% in the quarter and 4.2% in the twelve months ended December 31, 2011 compared to the same periods in 2010.

• In the fourth quarter of 2011, the Company’s current accident year loss ratio for 2011 remained at 78.2%. Also during the quarter, the Company experienced favorable development for prior accident years which reduced loss and loss adjustment expenses by $2.2 million. Favorable development in accident year 2007 was the primary contributor, offset by unfavorable development recognized in accident year 2010.

• For the twelve months ended December 31, 2011, the underwriting expense ratio was higher compared to the prior year period. Our experience rated commission and ceding commission offset the expense ratio by 3.5 percentage points in the twelve months ended December 31, 2011 compared to 6.5 percentage points for the same period in 2010. Also, assessment expense in 2011 was 4.4 percentage points higher than the prior year due to certain rate reductions in 2010. Offsetting these increases, lower fixed costs resulted in a 2.6 percentage point decrease in the underwriting expense ratio in the twelve months ended December 31, 2011.

• For the year-ended December 31, 2011, we corrected an immaterial error related to the accounting for our estimate for state guaranty fund assessments. For all years prior to 2011, this correction increased net income by $4.9 million in the aggregate. This correction also reversed the $1.8 million change in estimate for guaranty fund assessments previously recognized in the third quarter of 2011. This correction had a favorable impact on book value of $0.27 per share, in the aggregate. Additional information regarding this correction is included in a schedule to this press release.

• The effective tax rate for the twelve months ended December 31, 2011 was 11.5% compared to 22.0% for the same period in 2010. The decrease in the effective rate resulted from a change in the valuation allowance related to capital loss carry forwards and a larger portion of our net income being comprised of tax exempt investment income. The decrease from the valuation allowance was $1.2 million, or 12.4 percentage points for the fourth quarter and $1.4 million, or 5.3 percentage points for the twelve months ended December 31. This did not impact operating net income.

Geoff Banta, President and Chief Operating Officer, noted, “We are pleased with our fourth quarter results, which included an increase in our top line growth, even while we were strengthening our pricing. The quarter also showed improvement in both claims frequency and severity.

Investment Results

	Three Months Ended December 31,									Twelve Months Ended December 31,
	2011			2010			% Change			2011			2010			% Change
	(in thousands)
Net investment income	$	6,702		$	6,458			3.8	%	$	26,340		$	26,242			0.4	%
Net realized gains on investments (pre-tax)		1,468			165						2,228			2,449			(9.0	)%
Pre-tax investment yield		3.2	%		3.2	%					3.1	%		3.2	%
Tax equivalent yield (1)		4.6	%		4.4	%					4.6	%		4.4	%

(1) The tax equivalent yield is calculated using the effective interest rate and a 35% marginal tax rate.

• As of December 31, 2011, the carrying value of AMERISAFE’s investment portfolio, including cash and cash equivalents, was $851.5 million and the fair value of the portfolio was $890.7 million.

Supplemental Information

During the quarter, the Company repurchased 32,610 shares of its outstanding common stock for $0.6 million at an average price per share of $18.78, including commissions. Since beginning its share repurchase plan, the Company repurchased a total of 1,258,250 shares for $22.4 million at an average per share price of $17.78, including commissions.

	Three Months Ended December 31,						Twelve Months Ended December 31,
	2011			2010			2011			2010
	(in thousands, except share and per share data)
Net income	$	8,058		$	8,547		$	24,125		$	34,606
Less: Net realized capital gains		1,468			165			2,228			2,449
Tax effect of gains (1)		(514	)		(58	)		(780	)		(857	)
Valuation allowance (1)		1,176			81			1,442			869
Operating net income (2)		5,928			8,359			21,235			32,145
Average shareholders’ equity (3)	$	346,243		$	326,055		$	340,522		$	318,163
Less: Average other comprehensive income		2,229			338			1,240			1,497
Adjusted average shareholders’ equity		344,014		$	325,717			339,282		$	316,666
Diluted weighted average common shares		18,492,088			18,883,302			18,700,982			19,095,320
Return on average equity (4)		9.3	%		10.5	%		7.1	%		10.9	%
Operating return on average equity (2)		6.8	%		10.3	%		6.3	%		10.2	%
Diluted earnings per common share	$	0.44		$	0.45		$	1.29		$	1.81
Operating earnings per common share (2)	$	0.32		$	0.44		$	1.14		$	1.68

(1) The tax effect of net realized capital gains is calculated assuming an annual tax rate of 35% plus the change in valuation allowance for deferred taxes.

(2) Operating net income, operating return on average equity and operating earnings per share are non-GAAP financial measures. Management believes that investor’s understanding of core operating performance is enhanced by AMERISAFE’s disclosure of these financial measures.

(3) Average shareholders’ equity is calculated by taking the average of the beginning and ending shareholders’ equity.

(4) Return on average equity is calculated by dividing the annualized net income by the average shareholders’ equity.

Conference Call Information

AMERISAFE has scheduled a conference call for March 2, 2012, at 10:30 a.m. Eastern Time, to discuss the fourth quarter results and the outlook for future periods. To participate in the conference call dial 720-545-0027 at least 10 minutes before the call begins and ask for the AMERISAFE conference call. A replay of the call will be available approximately two hours after the live broadcast ends and will be accessible through March 9, 2012. To access the replay, dial 855-859-2056 or 404-537-3406 and use the pass code 48928398#.

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

About AMERISAFE

AMERISAFE, Inc. is a specialty provider of workers’ compensation insurance focused on small to mid-sized employers engaged in hazardous industries, principally construction, trucking and agriculture. AMERISAFE actively markets workers’ compensation insurance in 33 states and the District of Columbia.

Forward Looking Statements

Statements made in this press release that are not historical facts, including statements accompanied by words such as “will,” “believe,” “anticipate,” “expect,” “estimate,” or similar words are forward-looking statements within the meaning of the Private Securities Litigation

Reform Act of 1995 regarding AMERISAFE’s plans and performance. These statements are based on management’s estimates, assumptions and projections as of the date of this release and are not guarantees of future performance and include statements regarding management’s views and expectations of the workers’ compensation market, the Company’s growth opportunities, underwriting margins and actions by competitors. Actual results may differ materially from the results expressed or implied in these statements as the results of risks, uncertainties and other factors including the factors set forth in the Company’s filings with the Securities and Exchange Commission, including AMERISAFE’s Annual Report on Form 10-K for the year ended December 31, 2010. AMERISAFE cautions you not to place undue reliance on the forward-looking statements contained in this release. AMERISAFE does not undertake any obligation to publicly update or revise any forward-looking statements to reflect future events, information or circumstances that arise after the date of this release.

- Tables to follow -

AMERISAFE, INC. AND SUBSIDIARIES

Consolidated Statements of Income

(in thousands)

	Three Months Ended December 31,						Twelve Months Ended December 31,
	2011			2010			2011			2010
	(unaudited)
Revenues:
Gross premiums written	$	62,128		$	52,143		$	272,101		$	228,424
Ceded premiums written		(3,394	)		(5,973	)		(13,881	)		(20,549	)
Net premiums written	$	58,734		$	46,170		$	258,220		$	207,875
Net premiums earned	$	66,211		$	56,429		$	251,015		$	218,881
Net investment income		6,702			6,458			26,340			26,242
Net realized gains on investments		1,468			165			2,228			2,449
Fee and other income		529			89			1,080			584
Total revenues		74,910			63,141			280,663			248,156
Expenses:
Loss and loss adjustment expenses incurred		49,627			39,390			189,706			157,388
Underwriting and other operating costs		15,040			10,831			60,911			44,032
Interest expense		275			388			1,311			1,548
Policyholder dividends		474			108			1,464			834
Total expenses		65,416			50,717			253,392			203,802
Income before taxes		9,494			12,424			27,271			44,354
Income tax expense		1,436			3,877			3,146			9,748
Net income	$	8,058		$	8,547		$	24,125		$	34,606

AMERISAFE, INC. AND SUBSIDIARIES

Consolidated Statements of Income (cont.)

(in thousands, except share and per share amounts)

	Three Months Ended December 31,				Twelve Months Ended December 31,
	2011		2010		2011		2010
	(unaudited)
Basic EPS:
Net income	$	8,058	$	8,547	$	24,125	$	34,606
Basic weighted average common shares		18,082,974		18,417,784		18,250,173		18,637,167
Basic earnings per share	$	0.45	$	0.46	$	1.32	$	1.86
Diluted EPS:
Net income	$	8,058	$	8,547	$	24,125	$	34,606
Diluted weighted average common shares:
Weighted average common shares		18,082,974		18,417,784		18,250,173		18,637,167
Stock options		405,120		460,428		439,737		448,790
Restricted stock		3,994		5,090		11,072		9,363
Diluted weighted average common shares		18,492,088		18,883,302		18,700,982		19,095,320
Diluted earnings per common share	$	0.44	$	0.45	$	1.29	$	1.81

AMERISAFE, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

(in thousands)

	December 31,		December 31,
	2011		2010
	(unaudited)
Assets
Investments	$	805,974	$	765,537
Cash and cash equivalents		45,536		60,966
Amounts recoverable from reinsurers		96,212		95,133
Premiums receivable, net		121,223		122,618
Deferred income taxes		29,286		28,837
Deferred policy acquisition costs		18,756		17,400
Deferred charges		3,120		2,936
Other assets		28,402		24,496
	$	1,148,509	$	1,117,923
Liabilities and shareholders’ equity
Liabilities:
Reserves for loss and loss adjustment expenses	$	538,214	$	532,204
Unearned premiums		118,699		111,494
Insurance-related assessments		21,506		18,718
Subordinated debt securities		25,780		36,090
Other liabilities		93,458		89,225
Total shareholders’ equity		350,852		330,192
Total liabilities and shareholders’ equity	$	1,148,509	$	1,117,923

###

Accounting for Correction to Estimate of State Guaranty Fund Assessment

	Twelve Months Ended December 31,												Three Months Ended September 30,			Nine Months Ended September 30,
	2007			2008			2009			2010			2011			2011
	(in thousands, except for per share data)
As Initially Reported
Net income	$	50,219		$	43,846		$	46,431		$	33,353		$	6,692		$	17,888
Combined ratio		85.9	%		81.4	%		86.9	%		93.3	%		98.0	%		99.6	%
Earnings per share	$	2.47		$	2.15		$	2.22		$	1.75		$	0.36		$	0.95
Book value per share	$	11.66		$	13.86		$	16.00		$	17.72		$	18.74		$	18.74
Shareholders’ equity	$	233,570		$	278,272		$	302,417		$	325,223		$	338,486		$	338,486
As Adjusted
Net income	$	51,018		$	45,019		$	47,563		$	34,606		$	4,871		$	16,067
Combined ratio		85.5	%		80.8	%		86.2	%		92.4	%		102.3	%		101.1	%
Earnings per share	$	2.51		$	2.21		$	2.28		$	1.81		$	0.26		$	0.86
Book value per share	$	11.73		$	13.99		$	16.20		$	17.99		$	18.91		$	18.91
Shareholders’ equity	$	234,981		$	280,856		$	306,133		$	330,192		$	341,634		$	341,634
Variance
Net income	$	799		$	1,173		$	1,132		$	1,253		$	(1,821)		$	(1,821)
Combined ratio		(0.4)pp			(0.6)pp			(0.7)pp			(0.9)pp			4.3pp			1.6pp
Earnings per share	$	0.04		$	0.06		$	0.06		$	0.07		$	(0.10)		$	(0.09)
Book value per share	$	0.07		$	0.13		$	0.20		$	0.27		$	0.17		$	0.17
Shareholders’ equity	$	1,411		$	2,584		$	3,716		$	4,969		$	3,148		$	3,148