1018979--3/24/2006--AMERISAFE

related topics

{stock, price, operating}

{loss, insurance, financial}

{condition, economic, financial}

{capital, credit, financial}

{financial, litigation, operation}

{acquisition, growth, future}

{regulation, change, law}

{stock, price, share}

{competitive, industry, competition}

{personnel, key, retain}

{control, financial, internal}

{operation, natural, condition}

{cost, regulation, environmental}

{product, liability, claim}

If we do not accurately establish our premium rates, our results of operations will be adversely affected. A downgrade in our A.M. Best rating would likely reduce the amount of business we are able to write. The workers compensation insurance industry is cyclical in nature, which may affect our overall financial performance. If we are unable to obtain reinsurance on favorable terms, our ability to write policies could be adversely affected. If any of our current reinsurers were to terminate participation in our 2006 reinsurance treaty program, we could be exposed to an increased risk of loss. We may not be able to recover amounts due from our reinsurers, which would adversely affect our financial condition. Negative developments in the workers compensation insurance industry would adversely affect our financial condition and results of operations. A decline in the level of business activity of our policyholders, particularly those engaged in the construction, trucking and logging industries, could negatively affect our earnings and profitability. Unfavorable changes in economic conditions affecting the states in which we operate could adversely affect our financial condition or results of operations. Our revenues and results of operations may fluctuate as a result of factors beyond our control, which fluctuation may cause the price of our common stock to be volatile. We operate in a highly competitive industry and may lack the financial resources to compete effectively. If we cannot sustain our relationships with independent agencies, we may be unable to operate profitably. An inability to effectively manage the growth of our operations could make it difficult for us to compete and affect our ability to operate profitably. Because we are subject to extensive state and federal regulation, legislative changes may negatively impact our business. The effects of emerging claim and coverage issues on our business are uncertain. Additional capital that we may require in the future may not be available to us or may be available to us only on unfavorable terms. If we are unable to realize our investment objectives, our financial condition and results of operations may be adversely affected. Our business is dependent on the efforts of our executive officers because of their industry expertise, knowledge of our markets and relationships with the independent agencies that sell our insurance. AMERISAFE is an insurance holding company and does not have any direct operations. Assessments and premium surcharges for state guaranty funds, second injury funds and other mandatory pooling arrangements may reduce our profitability. The outcome of recent insurance industry investigations and regulatory proposals could adversely affect our financial condition and results of operations and cause the price of our common stock to be volatile. We may have exposure to losses from terrorism for which we are required by law to provide coverage. Risks Related to Our Common Stock The trading price of our common stock may decline. Securities analysts may not continue coverage of our common stock or may issue negative reports, which may adversely affect the trading price of our common stock. Our principal shareholders have the ability to significantly influence our business, which may be disadvantageous to other shareholders and adversely affect the trading price of our common stock. Being a public company will increase our expenses and administrative workload. We will be exposed to risks relating to evaluations of our internal controls over financial reporting required by Section 404 of the Sarbanes-Oxley Act of 2002. The terms of our convertible preferred stock could adversely affect the value of our common stock.

Full 10-K form ▸

1018979--3/24/2006--AMERISAFE_INC