8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of report (Date of earliest event reported): February 27, 2008

AMERISAFE, INC.

(Exact Name of Registrant as Specified in Charter)

Texas	000-51520	75-2069407
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

2301 Highway 190 West

DeRidder, Louisiana 70634

(Address of Principal Executive Offices) (Zip Code)

Registrant’s telephone number, including area code: (337) 463-9052

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition.

On February 27, 2008 AMERISAFE, Inc. (the “Company”) issued a press release announcing its financial results for the fourth quarter and year ended December 31, 2007. A copy of the Company’s press release is attached as Exhibit 99.1 to this Current Report on Form 8-K.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit No.	Description
99.1	Press Release of AMERISAFE, Inc. dated February 27, 2008

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

AMERISAFE, INC.
By:	/s/ Geoffrey R. Banta
	Geoffrey R. Banta, Executive Vice President and Chief Financial Officer

Date: February 27, 2008

EX-99.1

Exhibit 99.1

	NEWS RELEASE
	Contacts: Geoff Banta, EVP & CFO AMERISAFE, Inc. 337-463-9052
	Ken Dennard, Managing Partner
FOR IMMEDIATE RELEASE	Karen Roan, Sr.VP
	DRG&E / 713-529-6600

AMERISAFE ANNOUNCES 2007 FOURTH QUARTER

AND YEAR-END RESULTS

Fourth Quarter Highlights:

• Net Income up 32.6%

• Combined Ratio of 73.0%

• Return on Average Equity of 33.1%

DeRidder, LA – February 27, 2008—AMERISAFE, Inc. (Nasdaq: AMSF), a specialty writer of high hazard workers’ compensation insurance, today announced results for the fourth quarter and year ended December 31, 2007.

Net income in the fourth quarter was $18.6 million compared to net income of $14.0 million in the 2006 fourth quarter, an increase of 32.6%. Pre-tax income for the fourth quarter of 2007 included realized capital gains of $20,000 and $9.5 million of favorable prior year loss development. Pre-tax income for the fourth quarter of 2006 included realized capital gains of $4.8 million and $2.2 million of favorable prior year loss development. Net investment income increased to $7.9 million in the fourth quarter from $7.3 million for the same period last year, an increase of 9.3%. The Company’s return on average equity for the 2007 fourth quarter was 33.1% compared to 31.6% for the same period in 2006.

Gross premiums written in the fourth quarter of 2007 were $61.8 million, a decrease of 19.2% compared to $76.6 million in the fourth quarter of 2006. The decrease was primarily a result of lower 2007 endorsements and audit premium, when compared to 2006, which the Company attributes to reduced business activity among its insured employers. Fourth quarter revenues totaled $82.4 million, a 14.6% decrease compared to revenues of $96.5 million in the prior year period.

Net income for 2007 was $50.2 million compared to $37.4 million for 2006, an increase of 34.4%. In 2007 on a pre-tax basis, the Company recorded $9.5 million of favorable prior year loss development, income of $3.7 million from reinsurance commutations, and $147,000 of realized capital gains. Pre-tax net income for 2006 included $2.2 million of favorable prior year loss development and realized capital gains of $7.4 million. Net investment income increased to $30.2 million for the year ended December 31, 2007 from $25.4 million in 2006, an increase of 19.0%. The Company’s return on average equity for the year was 24.1%, compared to 22.6% for 2006.

For the full year ended December 31, 2007, gross premiums written totaled $327.8 million, a 1.4% decrease from gross premiums written of $332.5 million for 2006. Revenues for 2007 totaled $338.3 million, a 1.7% increase over revenues of $332.7 million last year.

In the fourth quarter of 2007, diluted earnings per share allocable to common shareholders were $0.92 compared to $0.70 in the same period of 2006. Weighted average diluted shares outstanding for the fourth quarter of 2007 were 19,067,749 shares compared to 18,138,866 shares in the fourth quarter of 2006. For the full year 2007, diluted earnings per share allocable to common shareholders were $2.47 compared to $1.88 for 2006. Weighted average diluted shares outstanding for 2007 were 19,079,380 shares compared to 17,594,736 shares for 2006.

The net combined ratio for the fourth quarter of 2007 was 73.0% compared to 87.1% for the same period in 2006. Loss and loss adjustment expenses for the fourth quarter of 2007 were $37.9 million, or 51.0% of net premiums earned, compared to $49.5 million, or 58.7% of net premiums earned for the same period in 2006. Total underwriting expenses for the fourth quarter of 2007 were $17.7 million, or 23.8% of net premiums earned, compared to $18.5 million, or 22.0% of net premiums earned, for the fourth quarter 2006.

The net combined ratio for the full year 2007 was 85.9% compared to 92.4% for 2006. Loss and loss adjustment expenses for 2007 were $198.5 million, or 64.7% of net premiums earned, compared to $199.5 million, or 66.6% of net premiums earned for 2006. Total underwriting expenses were $65.5 million, or 21.3% of net premiums earned for 2007 compared to $71.3 million, or 23.8% of net premiums earned, for 2006. Underwriting expenses for 2007 were reduced by $3.7 million, or 1.2% of net premiums earned, as the result of the reinsurance commutations effected in the 2007 second and third quarters.

At year-end, the Company’s investment portfolio, including cash, exceeded $759 million, up $93.5 million from the end of 2006. Amounts recoverable from reinsurers at year-end were $76.9 million, a decrease of $32.7 million from December 31, 2006.

Commenting on these results, Allen Bradley, AMERISAFE’s Chairman, President and Chief Executive Officer, stated, “2007 was a record year for AMERISAFE. We continued to produce high quality business, and losses were significantly lower than expected. In addition, prior year loss development was favorable and our open claims inventory at the end of the year was the lowest in a decade.”

“As in 2007, the marketplace continues to be challenging. Lower loss costs have resulted in lower rates in a number of states. We are also experiencing increased competition as some market participants are pricing policies at levels that we do not believe adequately reflect the risk incurred. Compounding these issues is a noted decrease in business activity among our insureds, as measured by reported payrolls. We expect these market conditions to continue through 2008, which will put pressure on our gross premiums written, but we intend to continue to price our policies to earn an acceptable underwriting profit, as we have done in prior years.”

2008 Outlook

For the full year 2008, the Company currently expects to produce a combined ratio of 94% or lower and a return on average equity of 15% or greater. AMERISAFE calculates return on average equity by dividing net income by the average of shareholders’ equity plus redeemable preferred stock.

Conference Call Information

AMERISAFE has scheduled a conference call for Thursday, February 28, 2008, at 10:00 a.m. Eastern Time. To participate in the conference call dial 303-262-2137 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 6, 2008. To access the replay, dial 303-590-3000 and use the pass code 11106963#.

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, logging, agriculture, oil and gas, maritime and sawmills. AMERISAFE actively markets workers’ compensation insurance in 30 states and the District of Columbia. The Company’s financial strength rating is “A-” (Excellent) by A.M. Best.

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. Actual results may differ materially from the results expressed or implied in these statements as the results of risks, uncertainties and other factors including, but not limited to, 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, 2006. 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, except per share amounts)

	Three Months Ended December 31,						Twelve Months Ended December 31,
	2007			2006			2007			2006
	(unaudited)						(unaudited)
Revenues:
Gross premiums written	$	61,848		$	76,571		$	327,761		$	332,491
Ceded premiums written		(5,003	)		(5,881	)		(20,215	)		(19,950	)
Net premiums written	$	56,845		$	70,690		$	307,546		$	312,541
Net premiums earned	$	74,282		$	84,331		$	306,906		$	299,303
Net investment income		7,926			7,251			30,208			25,383
Net realized gains on investments		20			4,808			147			7,389
Fee and other income		140			95			1,058			645
Total revenues		82,368			96,485			338,319			332,720
Expenses:
Loss and loss adjustment expenses incurred		37,908			49,495			198,531			199,484
Underwriting and other operating costs		17,675			18,549			65,515			71,288
Interest expense		881			917			3,545			3,496
Policyholder dividends		(1,330	)		5,443			(367	)		6,006
Total expenses		55,134			74,404			267,224			280,274
Income before taxes		27,234			22,081			71,095			52,446
Income tax expense		8,614			8,042			20,876			15,088
Net income		18,620			14,039			50,219			37,358
Preferred dividends		—			—			—			—
Net income available to common shareholders	$	18,620		$	14,039		$	50,219		$	37,358

AMERISAFE, INC. AND SUBSIDIARIES

Consolidated Statements of Income (cont.)

(in thousands, except per share amounts)

	Three Months Ended December 31,						Twelve Months Ended December 31,
	2007			2006			2007			2006
	(unaudited)						(unaudited)
Basic EPS:
Net income available to common shareholders	$	18,620		$	14,039		$	50,219		$	37,358
Portion allocable to common shareholders		94.0	%		90.9	%		94.0	%		88.6	%
Net income allocable to common shareholders	$	17,505		$	12,761		$	47,211		$	33,099
Basic weighted average common shares		18,790,876			18,046,929			18,767,210			17,579,829
Basic earnings per share	$	0.93		$	0.71		$	2.52		$	1.88
Diluted EPS:
Net income allocable to common shareholders	$	17,505		$	12,761		$	47,211		$	33,099
Diluted weighted average common shares:
Weighted average common shares		18,790,876			18,046,929			18,767,210			17,579,829
Stock options		265,260			79,285			294,988			—
Restricted stock		11,613			12,652			17,182			14,907
Diluted weighted average common shares		19,067,749			18,138,866			19,079,380			17,594,736
Diluted earnings per common share	$	0.92		$	0.70		$	2.47		$	1.88

AMERISAFE, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

(in thousands)

	December 31, 2007		December 31, 2006
	(unaudited)
Assets
Investments	$	711,745	$	638,780
Cash and cash equivalents		47,329		26,748
Amounts recoverable from reinsurers		76,915		109,603
Premiums receivable, net		152,150		144,384
Deferred income taxes		26,418		29,466
Deferred policy acquisition costs		18,414		18,486
Deferred charges		3,553		3,548
Other assets		25,329		23,131
	$	1,061,853	$	994,146
Liabilities, redeemable preferred stock and shareholders’ equity
Liabilities:
Reserves for loss and loss adjustment expenses	$	537,403	$	519,178
Unearned premiums		138,402		137,761
Insurance-related assessments		42,234		40,886
Subordinated debt securities		36,090		36,090
Other liabilities		74,154		76,447
Redeemable preferred stock		25,000		25,000
Total shareholders’ equity		208,570		158,784
Total liabilities, redeemable preferred stock and shareholders’ equity	$	1,061,853	$	994,146

AMERISAFE, INC. AND SUBSIDIARIES

Selected Insurance Ratios

	Three Months Ended December 31,				Twelve Months Ended December 31,
	2007		2006		2007		2006
	(unaudited)				(unaudited)
Current accident year loss ratio (1)	63.8	%	61.3	%	67.8	%	67.3	%
Prior accident year loss ratio (2)	(12.8	)%	(2.6	)%	(3.1	)%	(0.7	)%
Net loss ratio	51.0	%	58.7	%	64.7	%	66.6	%
Net underwriting expense ratio (3)	23.8	%	22.0	%	21.3	%	23.8	%
Net dividend ratio (4)	(1.8	)%	6.4	%	(0.1	)%	2.0	%
Net combined ratio (5)	73.0	%	87.1	%	85.9	%	92.4	%
Return on average equity (6)	33.1	%	31.6	%	24.1	%	22.6	%

(1) The current accident year loss ratio is calculated by dividing loss and loss adjustment expenses incurred for the current accident year by the current year’s net premiums earned.

(2) The prior accident year loss ratio is calculated by dividing the change in loss and loss adjustment expenses incurred for prior accident years by the current year’s net premiums earned.

(3) The net underwriting expense ratio is calculated by dividing underwriting and certain other operating costs by the current year’s net premiums earned.

(4) The net dividend ratio is calculated by dividing policyholder dividends by the current year’s net premiums earned.

(5) The net combined ratio is the sum of the net loss ratio, the net underwriting expense ratio and the net dividend ratio.

(6) Return on average equity is calculated by dividing the annualized net income by the average shareholders’ equity, including redeemable preferred stock for the applicable period.