10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2014

Commission file number: 001-12251

AMERISAFE, INC.

(Exact Name of Registrant as Specified in Its Charter)

Texas	75-2069407
(State of Incorporation)	(I.R.S. Employer Identification Number)
2301 Highway 190 West, DeRidder, Louisiana	70634
(Address of Principal Executive Offices)	(Zip Code)

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

Indicate by check mark whether the Registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	¨	Accelerated filer	x
Non-accelerated filer	¨  (Do not check if a smaller reporting company)	Smaller reporting company	¨

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

As of October 30, 2014, there were 18,822,825 shares of the Registrant’s common stock, par value $.01 per share, outstanding.

TABLE OF CONTENTS

		Page No.
			3
FORWARD-LOOKING STATEMENTS
PART I—FINANCIAL INFORMATION
Item 1	Financial Statements		4
Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations		17
Item 3	Quantitative and Qualitative Disclosures About Market Risk		23
Item 4	Controls and Procedures		24
PART II—OTHER INFORMATION
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds		24
Item 6	Exhibits		25

2

FORWARD-LOOKING STATEMENTS

This report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and 21E of the Securities Exchange Act of 1934. You should not place undue reliance on these statements. These forward-looking statements include statements that reflect the current views of our senior management with respect to our financial performance and future events with respect to our business and the insurance industry in general. Statements that include the words “expect,” “intend,” “plan,” “believe,” “project,” “forecast,” “estimate,” “may,” “should,” “anticipate” and similar statements of a future or forward-looking nature identify forward-looking statements. Forward-looking statements address matters that involve risks and uncertainties. Accordingly, there are or will be important factors that could cause our actual results to differ materially from those indicated in these statements. We believe that these factors include, but are not limited to, the following:

• increased competition on the basis of types of insurance offered, premium rates, coverage availability, payment terms, claims management, safety services, policy terms, overall financial strength, financial ratings and reputation;

• greater frequency or severity of claims and loss activity, including as a result of natural or man-made catastrophic events, than our underwriting, reserving or investment practices anticipate based on historical experience or industry data;

• general economic conditions, including recession, inflation, performance of financial markets, interest rates, unemployment rates and fluctuating asset values;

• the cyclical nature of the workers’ compensation insurance industry;

• loss of the services of any of our senior management or other key employees;

• decreased level of business activity of our policyholders caused by decreased business activity generally, and in particular in the industries we target;

• adverse developments in economic, competitive or regulatory conditions within the workers’ compensation insurance industry;

• decreased demand for our insurance;

• changes in regulations, laws, rates, or rating factors applicable to us, our policyholders or the agencies that sell our insurance;

• changes in rating agency policies, practices or ratings;

• changes in the availability, cost or quality of reinsurance and the failure of our reinsurers to pay claims in a timely manner or at all;

• changes in legal theories of liability under our insurance policies;

• developments in capital markets that adversely affect the performance of our investments;

• the effects of U.S. involvement in hostilities with other countries and large-scale acts of terrorism, or the threat of hostilities or terrorist acts; and

• other risks and uncertainties described from time to time in the Company’s filings with the Securities and Exchange Commission (“SEC”).

The foregoing factors should not be construed as exhaustive and should be read together with the other cautionary statements included in this report, and under the caption “Risk Factors” in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2013. If one or more events related to these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may differ materially from what we anticipate.

3

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

AMERISAFE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share data)

	September 30, 2014			December 31, 2013
	(unaudited)
Assets
Investments:
Fixed maturity securities—held-to-maturity, at amortized cost (fair value $625,783 and $561,179 in 2014 and 2013, respectively)	$	599,087		$	536,583
Fixed maturity securities—available-for-sale, at fair value (cost $314,307 and $244,409 in 2014 and 2013, respectively)		317,278			237,877
Equity securities—available-for-sale, at fair value (cost $3,446 and $9,482 in 2014 and 2013, respectively)		3,598			9,302
Short-term investments		42,411			84,422
Other investments		11,228			10,591
Total investments		973,602			878,775
Cash and cash equivalents		118,544			123,077
Amounts recoverable from reinsurers		89,847			75,326
Premiums receivable, net of allowance		193,615			171,579
Deferred income taxes		33,830			33,645
Accrued interest receivable		11,268			11,242
Property and equipment, net		7,362			7,549
Deferred policy acquisition costs		21,016			19,171
Other assets		18,300			8,637
Total assets	$	1,467,384		$	1,329,001
Liabilities and shareholders’ equity
Liabilities:
Reserves for loss and loss adjustment expenses	$	676,609		$	614,557
Unearned premiums		178,449			164,296
Reinsurance premiums payable		1,311			607
Amounts held for others		41,356			35,739
Policyholder deposits		48,426			44,620
Insurance-related assessments		32,175			25,428
Accounts payable and other liabilities		32,838			26,940
Payable for investments purchased		7,737			—
Total liabilities		1,018,901			912,187
Shareholders’ equity:
Common stock:
Voting—$0.01 par value authorized shares—50,000,000 in 2014 and 2013; 20,066,075 and 19,855,430 shares issued and 18,807,825 and 18,597,180 shares outstanding in 2014 and 2013, respectively		200			198
Additional paid-in capital		197,094			192,537
Treasury stock at cost (1,258,250 shares in 2014 and 2013)		(22,370	)		(22,370	)
Accumulated earnings		271,481			250,744
Accumulated other comprehensive income/(loss), net		2,078			(4,295	)
Total shareholders’ equity		448,483			416,814
Total liabilities and shareholders’ equity	$	1,467,384		$	1,329,001

See accompanying notes.

4

AMERISAFE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except share and per share data)

(unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2014			2013			2014			2013
Revenues
Gross premiums written	$	93,962		$	86,137		$	303,485		$	281,075
Ceded premiums written		(3,823	)		(4,519	)		(10,655	)		(13,576	)
Net premiums written	$	90,139		$	81,618		$	292,830		$	267,499
Net premiums earned	$	95,928		$	81,596		$	278,677		$	243,288
Net investment income		6,495			6,947			20,048			20,266
Net realized gains/(losses) on investments		(152	)		(654	)		181			(1,921	)
Fee and other income		65			114			227			393
Total revenues		102,336			88,003			299,133			262,026
Expenses
Loss and loss adjustment expenses incurred		61,822			57,046			185,570			169,860
Underwriting and certain other operating costs		7,822			6,634			24,624			21,472
Commissions		7,022			6,176			20,696			18,569
Salaries and benefits		6,183			5,662			18,090			16,971
Policyholder dividends		139			38			340			980
Total expenses		82,988			75,556			249,320			227,852
Income before income taxes		19,348			12,447			49,813			34,174
Income tax expense		5,869			2,748			13,012			7,980
Net income		13,479			9,699			36,801			26,194
Net income available to common shareholders	$	13,479		$	9,673		$	36,801		$	26,122
Earnings per share
Basic	$	0.72		$	0.53		$	1.98		$	1.42
Diluted	$	0.71		$	0.52		$	1.95		$	1.39
Shares used in computing earnings per share
Basic		18,676,033			18,395,971			18,603,227			18,343,901
Diluted		18,929,777			18,758,346			18,905,880			18,730,729
Extraordinary cash dividends declared per common share	$	—		$	—		$	0.50		$	—
Cash dividends declared per common share	$	0.12		$	0.08		$	0.36		$	0.24

See accompanying notes.

5

AMERISAFE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands)

(unaudited)

	Three Months Ended September 30,					Nine Months Ended September 30,
	2014		2013			2014		2013
Net income	$	13,479	$	9,699		$	36,801	$	26,194
Other comprehensive income:
Unrealized gain/(loss) on securities, net of tax		117		(1,045	)		6,373		(5,650	)
Comprehensive income	$	13,596	$	8,654		$	43,174	$	20,544

AMERISAFE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY

(in thousands, except share data)

(unaudited)

	Common Stock				Treasury Stock						Additional Paid-In Capital		Accumulated Earnings			Accumulated Other Comprehensive Loss			Total
	Shares		Amount		Shares			Amounts
Balance at December 31, 2013		19,855,430	$	198		(1,258,250	)	$	(22,370	)	$	192,537	$	250,744		$	(4,295	)	$	416,814
Comprehensive income		—		—		—			—			—		36,801			6,373			43,174
Options exercised		204,667		2		—			—			1,818		—			—			1,820
Tax benefit from share-based payments		—		—		—			—			1,975		—			—			1,975
Restricted common stock issued		5,978		—		—			—			—		—			—			—
Share-based compensation		—		—		—			—			764		—			—			764
Dividends to stockholders		—		—		—			—			—		(16,064	)		—			(16,064	)
Balance at September 30, 2014		20,066,075	$	200		(1,258,250	)	$	(22,370	)	$	197,094	$	271,481		$	2,078		$	448,483

See accompanying notes.

6

AMERISAFE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

	Nine Months Ended September 30,
	2014			2013
Operating Activities
Net income	$	36,801		$	26,194
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		958			968
Net amortization of investments		11,336			9,552
Deferred income taxes		(3,616	)		(2,109	)
Net realized (gains)/losses on investments		(181	)		1,921
Loss on sale of asset		—			2
Share-based compensation		988			1,020
Changes in operating assets and liabilities:
Premiums receivable, net		(22,036	)		(30,052	)
Accrued interest receivable		(26	)		(496	)
Deferred policy acquisition costs		(1,845	)		(2,666	)
Other assets		(10,300	)		260
Reserves for loss and loss adjustment expenses		62,052			38,592
Unearned premiums		14,153			24,211
Reinsurance balances		(13,817	)		23,842
Amounts held for others and policyholder deposits		9,423			(6,142	)
Accounts payable and other liabilities		20,091			14,667
Net cash provided by operating activities		103,981			99,764
Investing Activities
Purchases of investments held-to-maturity		(152,887	)		(55,547	)
Purchases of investments available-for-sale		(110,631	)		(92,366	)
Purchases of short-term investments		(72,899	)		(112,624	)
Purchases of other invested assets		—			(10,000	)
Proceeds from maturities of investments held-to-maturity		84,942			83,715
Proceeds from sales and maturities of investments available-for-sale		43,283			20,606
Proceeds from sales and maturities of short-term investments		112,652			92,921
Purchases of property and equipment		(771	)		(764	)
Net cash used in investing activities		(96,311	)		(74,059	)
Financing Activities
Proceeds from stock option exercises		1,820			1,597
Tax benefit from share-based payments		1,975			1,222
Dividends to stockholders		(15,998	)		(4,422	)
Net cash used in financing activities		(12,203	)		(1,603	)
Change in cash and cash equivalents		(4,533	)		24,102
Cash and cash equivalents at beginning of period		123,077			92,676
Cash and cash equivalents at end of period	$	118,544		$	116,778

See accompanying notes.

7

AMERISAFE, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

Note 1. Basis of Presentation

AMERISAFE, Inc. (the “Company”) is an insurance holding company incorporated in the state of Texas. The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its subsidiaries: American Interstate Insurance Company (“AIIC”), Silver Oak Casualty, Inc. (“SOCI”), 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. In 2013, AIIC and SOCI were re-domesticated to Nebraska from Louisiana. RISK, a wholly owned subsidiary of the Company, is a claims and safety services company, currently servicing only affiliated insurance companies. AGAI, a wholly owned subsidiary of the Company, 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. The assets and operations of AGAI are not significant to that of the Company and its consolidated subsidiaries. The terms “AMERISAFE,” the “Company,” “we,” “us” or “our” refer to AMERISAFE, Inc. and its consolidated subsidiaries, as the context requires.

The Company provides workers’ compensation insurance for small to mid-sized employers engaged in hazardous industries, principally construction, trucking, manufacturing, oil and gas, and agriculture. Assets and revenues of AIIC represent at least 95% of comparable consolidated amounts of the Company for each of 2014 and 2013.

In the opinion of management of the Company, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of normal recurring accruals) necessary to present fairly the financial position, the results of operations and cash flows for the periods presented. The unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q under the Securities Exchange Act of 1934 and therefore do not include all information and footnotes to be in conformity with accounting principles generally accepted in the United States (“GAAP”). The results for the interim periods are not necessarily indicative of the results of operations that may be expected for the year. The unaudited condensed consolidated financial statements contained herein should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2013.

The preparation of financial statements in conformity 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.

Note 2. Stock Options and Restricted Stock

The Company has three equity incentive plans: the AMERISAFE 2005 Equity Incentive Plan (the “2005 Incentive Plan”), the AMERISAFE 2010 Non-Employee Director Restricted Stock Plan (the “2010 Restricted Stock Plan”) and the AMERISAFE 2012 Equity and Incentive Compensation Plan (the “2012 Incentive Plan”). See Note 13 to our consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2013 for additional information regarding the Company’s incentive plans.

In the nine months ended September 30, 2014, the Company has granted 4,312 and 4,866 shares of restricted common stock to executive officers and non-employee directors, respectively. The market value of the restricted shares granted totaled $0.4 million.

During the nine months ended September 30, 2014, options to purchase 204,667 shares of common stock were exercised. During the nine months ended September 30, 2013, options to purchase 173,300 shares of common stock were exercised. In connection with these exercises, the Company received $1.8 million and $1.6 million of stock option proceeds.

The Company recognized share-based compensation expense of $1.0 million in the nine months ended September 30, 2014 and 2013.

Note 3. Earnings Per Share

The Company computes earnings per share (“EPS”) in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 260, Earnings Per Share. Additionally, during 2013, the Company applied the “two-class method” in computing basic and diluted earnings per share as a result of the participating unvested common shares which contained nonforfeitable rights to dividends during this period. As of January 1, 2014, the Company no longer has participating unvested common shares which contain nonforfeitable rights to dividends and now applies the treasury stock method in computing basic and diluted earnings per share.

8

Under the two-class method, net income available to common and participating common shareholders is reduced by the amount of dividends declared in the current period and by the contractual amount of dividends that must be paid for the current period related to the Company’s common and participating common shares. Participating common shares include unvested share-based payment awards that contain nonforfeitable rights to dividends, whether paid or unpaid. Any remaining undistributed earnings are allocated to the common and participating common shareholders to the extent that each security shares in earnings as if all of the earnings for the period had been distributed. The amount of earnings allocable to each security is divided by the number of outstanding shares of the security to which the earnings are allocated to determine the EPS for the security. In a period of loss, no losses are allocated to the participating common shareholders. Instead, all such losses are allocated to the common shareholders.

Basic EPS is calculated by dividing income available to common shareholders 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, and includes the “if converted” method for participating securities if the effect is dilutive. For 2013, we determined diluted EPS as the more dilutive result of either the treasury method or the two-class method.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
	(in thousands, except share and per share amounts)
Basic EPS:
Net income, as reported	$	13,479	$	9,699	$	36,801	$	26,194
Less allocated income to unvested shares		—		27		—		74
Net income available to common shareholders—basic	$	13,479	$	9,672	$	36,801	$	26,120
Basic weighted average common shares		18,676,033		18,395,971		18,603,227		18,343,901
Basic earnings per common share	$	0.72	$	0.53	$	1.98	$	1.42
Diluted EPS:
Net income available to common shareholders—diluted	$	13,479	$	9,673	$	36,801	$	26,122
Diluted weighted average common shares:
Weighted average common shares		18,676,033		18,395,971		18,603,227		18,343,901
Stock options and performance shares		253,744		362,375		302,653		386,828
Diluted weighted average common shares		18,929,777		18,758,346		18,905,880		18,730,729
Diluted earnings per common share	$	0.71	$	0.52	$	1.95	$	1.39

Note 4. Investments

The gross unrealized gains and losses on, and the amortized cost and fair value of, those investments classified as held-to-maturity at September 30, 2014 are summarized as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)
States and political subdivisions	$	374,869	$	21,092	$	(34	)	$	395,927
Corporate bonds		144,898		579		(204	)		145,273
Commercial mortgage-backed securities		47,657		2,371		—			50,028
U.S. agency-based mortgage-backed securities		18,012		1,735		—			19,747
U.S. Treasury securities and obligations of U.S. Government agencies		10,703		1,016		(1	)		11,718
Asset-backed securities		2,948		227		(85	)		3,090
Totals	$	599,087	$	27,020	$	(324	)	$	625,783

9

The gross unrealized gains and losses on, and the cost or amortized cost and fair value of, those investments classified as available-for-sale at September 30, 2014 are summarized as follows:

	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)
Fixed maturity:
States and political subdivisions	$	151,839	$	6,549	$	(1,599	)	$	156,789
Corporate bonds		152,560		424		(314	)		152,670
U.S. agency-based mortgage-backed securities		9,908		—		(2,089	)		7,819
Total fixed maturity		314,307		6,973		(4,002	)		317,278
Other investments		10,000		1,228		—			11,228
Equity securities		3,446		244		(92	)		3,598
Totals	$	327,753	$	8,445	$	(4,094	)	$	332,104

The gross unrealized gains and losses on, and the amortized cost and fair value of, those investments classified as held-to-maturity at December 31, 2013 are summarized as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)
States and political subdivisions	$	381,674	$	18,634	$	(1,153	)	$	399,155
Corporate bonds		67,423		861		(41	)		68,243
Commercial mortgage-backed securities		50,813		3,431		—			54,244
U.S. agency-based mortgage-backed securities		21,775		1,790		—			23,565
U.S. Treasury securities and obligations of U.S. Government agencies		11,514		1,002		—			12,516
Asset-backed securities		3,384		216		(144	)		3,456
Totals	$	536,583	$	25,934	$	(1,338	)	$	561,179

The gross unrealized gains and losses on, and the cost or amortized cost and fair value of, those investments classified as available-for-sale at December 31, 2013 are summarized as follows:

	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)
Fixed maturity:
States and political subdivisions	$	154,024	$	1,491	$	(5,140	)	$	150,375
Corporate bonds		80,344		445		(361	)		80,428
U.S. agency-based mortgage-backed securities		10,041		—		(2,967	)		7,074
Total fixed maturity		244,409		1,936		(8,468	)		237,877
Other investments		10,000		591		—			10,591
Equity securities		9,482		387		(567	)		9,302
Totals	$	263,891	$	2,914	$	(9,035	)	$	257,770

10

A summary of the cost and fair value of investments in fixed maturity securities, classified as held-to-maturity at September 30, 2014, by contractual maturity, is as follows:

Remaining Time to Maturity	Amortized Cost Basis		Fair Value
	(in thousands)
Within one year	$	130,685	$	132,090
After one year through five years		328,360		343,614
After five years through ten years		70,889		76,599
After ten years		536		615
U.S. agency-based mortgage-backed securities		18,012		19,747
Commercial mortgage-backed securities		47,657		50,028
Asset-backed securities		2,948		3,090
Total	$	599,087	$	625,783

A summary of cost and fair value of investments in fixed maturity securities, classified as available-for-sale at September 30, 2014, by contractual maturity, is as follows:

Remaining Time to Maturity	Amortized Cost Basis		Fair Value
	(in thousands)
Within one year	$	71,210	$	71,345
After one year through five years		167,036		170,290
After five years through ten years		47,917		50,249
After ten years		18,236		17,575
U.S. agency-based mortgage-backed securities		9,908		7,819
Total	$	314,307	$	317,278

The following table summarizes the fair value and gross unrealized losses on securities, aggregated by major investment category and length of time that the individual securities have been in a continuous unrealized loss position:

	Less Than 12 Months				12 Months or Greater				Total
	Fair Value of Investments with Unrealized Losses		Gross Unrealized Losses		Fair Value of Investments with Unrealized Losses		Gross Unrealized Losses		Fair Value of Investments with Unrealized Losses		Gross Unrealized Losses
	(In thousands)
September 30, 2014
Held-to-Maturity
Fixed maturity securities:
Corporate bonds	$	77,260	$	204	$	—	$	—	$	77,260	$	204
States and political subdivisions		7,760		34		—		—		7,760		34
Asset-backed securities		—		—		1,746		85		1,746		85
U.S. Treasury securities and obligations of U.S. Government agencies		2,851		1		—		—		2,851		1
Total held-to-maturity securities		87,871		239		1,746		85		89,617		324
Available-for Sale
Fixed maturity securities:
Corporate bonds	$	78,350	$	314	$	—	$	—	$	78,350	$	314
States and political subdivisions		6,894		33		11,070		1,566		17,964		1,599
U.S. agency-based mortgage-backed securities		724		60		7,095		2,029		7,819		2,089
Equity securities		1,182		92		—		—		1,182		92
Total available-for-sale securities		87,150		499		18,165		3,595		105,315		4,094
Total	$	175,021	$	738	$	19,911	$	3,680	$	194,932	$	4,418

11

	Less Than 12 Months				12 Months or Greater				Total
	Fair Value of Investments with Unrealized Losses		Gross Unrealized Losses		Fair Value of Investments with Unrealized Losses		Gross Unrealized Losses		Fair Value of Investments with Unrealized Losses		Gross Unrealized Losses
	(In thousands)
December 31, 2013
Held-to-Maturity
Fixed maturity securities:
Corporate bonds	$	14,090	$	41	$	—	$	—	$	14,090	$	41
States and political subdivisions		54,895		1,147		311		6		55,206		1,153
Asset-backed securities		—		—		1,916		144		1,916		144
Total held-to-maturity securities		68,985		1,188		2,227		150		71,212		1,338
Available-for Sale
Fixed maturity securities:
Corporate bonds	$	29,691	$	361	$	—	$	—	$	29,691	$	361
States and political subdivisions		101,908		4,798		1,753		342		103,661		5,140
U.S. agency-based mortgage-backed securities		1,303		465		5,772		2,502		7,075		2,967
Equity securities		5,205		567		—		—		5,205		567
Total available-for-sale securities		138,107		6,191		7,525		2,844		145,632		9,035
Total	$	207,092	$	7,379	$	9,752	$	2,994	$	216,844	$	10,373

At September 30, 2014, the Company held 126 individual fixed maturity securities and two equity securities that were in an unrealized loss position, of which 21 individual fixed maturity securities were in a continuous unrealized loss position for longer than 12 months.

The Company holds investments in a long/short equity fund, accounted for under the equity method. The carrying value of this investment is $11.2 million at September 30, 2014.

Investment 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.

We regularly review our investment portfolio to evaluate the necessity of recording impairment losses for other-than-temporary declines in the fair value of our investments. We consider various factors in determining if a decline in the fair value of an individual security is other-than-temporary. The key factors we consider are:

• any reduction or elimination of dividends, or nonpayment of scheduled principal or interest payments;

• the financial condition and near-term prospects of the issuer of the applicable security, including any specific events that may affect its operations or earnings;

• how long and by how much the fair value of the security has been below its cost or amortized cost;

• any downgrades of the security by a rating agency;

• our intent not to sell the security for a sufficient time period for it to recover its value;

• the likelihood of being forced to sell the security before the recovery of its value; and

• an evaluation as to whether there are any credit losses on debt securities.

We reviewed all securities with unrealized losses in accordance with the impairment policy described above. The Company expects to hold investments in equity securities for a reasonable period of time sufficient for a recovery of fair value. With the exception of one security deemed to be other-than-temporarily impaired, the Company determined that the unrealized losses in the fixed maturity securities portfolio related primarily to changes in market interest rates since the date of purchase, current conditions in the capital markets and the impact of those conditions on market liquidity and prices generally, and the transfer of the investments from the available-for-sale classification to the held-to-maturity classification in January 2004. We expect to recover the carrying value of these securities as it is not more likely than not that we will be required to sell the security before the recovery of its amortized cost basis.

12

During the third quarter of 2014, the Company impaired a fixed maturity security in the amount of $0.2 million. The impairment charge is included in “Net realized gains (losses) on investments” for 2014. We impaired the security due to a recent downgrade of the security and the amount of the accumulated unrealized loss.

Net realized gains in the nine months ended September 30, 2014 were $0.2 million resulting from $0.4 million in gains on called fixed maturity securities offset by an impairment loss of $0.2 million recognized for the other-than-temporary decline in the fair value of a fixed maturity security. Net realized losses in the nine months ended September 30, 2013 were $1.9 million due to $2.2 million of impairment losses recognized for other-than-temporary declines in the fair value of certain equity securities offset by realized gains of $0.2 million.

Note 5. Income Taxes

In accordance with FASB ASC Topic 740, “Income Taxes,” we provide for the recognition and measurement of deferred income tax benefits based on the likelihood of their realization in future years. As of September 30, 2014, the Company had no material unrecognized tax benefits and no adjustments to liabilities or operations were required.

The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. There were no uncertain tax positions recognized for the periods ended September 30, 2014 and 2013.

Tax years 2009 through 2013 are subject to examination by the federal and state taxing authorities. In April 2012, the Company was notified by the Internal Revenue Service that the examination for tax year 2009 had been completed, but remains subject to examination by state taxing authorities.

Note 6. Comprehensive Income and Accumulated Other Comprehensive Income

Comprehensive income was $13.6 million for the three months ended September 30, 2014, compared to $8.7 million for the three months ended September 30, 2013. Comprehensive income was $43.2 million for the nine months ended September 30, 2014, compared to $20.5 million for the same period in 2013. The difference between net income as reported and comprehensive income was due to changes in unrealized gains and losses, net of tax on available-for-sale securities.

Comprehensive 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 statement of income, we used a 35 percent tax rate. The following table illustrates the changes in the balance of each component of accumulated other comprehensive income for each period presented in the interim financial statements.

	Three Months Ended September 30,						Nine Months Ended September 30,
	2014			2013			2014			2013
	(in thousands)
Beginning balance	$	1,961		$	(1,626	)	$	(4,295	)	$	2,979
Other comprehensive income/(loss) before reclassification		121			(1,483	)		6,192			(5,809	)
Amounts reclassified from accumulated other comprehensive income		(4	)		438			181			159
Net current period other comprehensive income/(loss)		117			(1,045	)		6,373			(5,650	)
Ending balance	$	2,078		$	(2,671	)	$	2,078		$	(2,671	)

13

The sale or other-than-temporary impairment of an available-for-sale security results in amounts being reclassified from accumulated other comprehensive income to current period net income. The effects of reclassifications out of accumulated other comprehensive income by the respective line items of net income are presented in the following table.

Component of Accumulated Other Comprehensive Income	Three Months Ended September 30,						Nine Months Ended September 30,						Affected line item in the statement of income
	2014			2013			2014			2013
	(in thousands)
Unrealized gains/(losses) on available-for-sale securities	$	1		$	(484	)	$	(270	)	$	362		Net realized gains on investments
Other-than-temporary impairment		5			(190	)		(8	)		(607	)	Net realized gains on investments
		6			(674	)		(278	)		(245	)	Income before income taxes
		(2	)		236			97			86		Income tax expense
	$	4		$	(438	)	$	(181	)	$	(159	)	Net income

Note 7. Fair Value Measurements

We carry available-for-sale securities at fair value in our consolidated financial statements and determine fair value measurements and disclosure in accordance with FASB ASC Topic 820, “Fair Value Measurements and Disclosures.”

The 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.

Fair 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.

ASC 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.

In 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:

• Observable 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.

• Unobservable 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.

Valuation 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:

• Level 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.

• Level 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.

14

• Level 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.

In 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.

The 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 market 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 nine months ended September 30, 2014.

At September 30, 2014, assets and liabilities measured at fair value on a recurring basis are summarized below:

	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
	(in thousands)
Financial instruments carried at fair value, classified as a part of:
Other investments	$	—	$	—	$	11,228	$	11,228
Securities available for sale—equity:
Domestic common stock		3,598		—		—		3,598
Securities available for sale—fixed maturity:
States and political subdivisions		—		156,789		—		156,789
Corporate bonds		—		152,670		—		152,670
U.S. agency-based mortgage-backed securities		—		7,819		—		7,819
Total securities available for sale—fixed maturity		—		317,278		—		317,278
Total available for sale	$	3,598	$	317,278	$	11,228	$	332,104

At September 30, 2014, assets and liabilities measured at amortized cost are summarized below:

	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
	(in thousands)
Securities held-to-maturity—fixed maturity
States and political subdivisions	$	—	$	395,927	$	—	$	395,927
Corporate bonds		—		145,273		—		145,273
Commercial mortgage-backed securities		—		50,028		—		50,028
U.S. agency-based mortgage-backed securities		—		19,747		—		19,747
U.S. Treasury securities		11,718		—		—		11,718
Asset-backed securities		—		3,090		—		3,090
Total held-to-maturity	$	11,718	$	614,065	$	—	$	625,783

15

At December 31, 2013, assets and liabilities measured at fair value on a recurring basis are summarized below:

	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
	(in thousands)
Financial instruments carried at fair value, classified as part of:
Other investments	$	—	$	—	$	10,591	$	10,591
Securities available for sale—equity
Domestic common stock		9,302		—		—		9,302
Securities available for sale—fixed maturity
States and political subdivisions		—		150,375		—		150,375
Corporate bonds		—		80,428		—		80,428
U.S. agency-based mortgage-backed securities		—		7,074		—		7,074
Total available for sale—fixed maturity		—	$	237,877	$	—	$	237,877
Total available for sale	$	9,302	$	237,877	$	10,591	$	257,770

At December 31, 2013, assets and liabilities measured at amortized cost are summarized below:

	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
	(in thousands)
Securities held-to-maturity—fixed maturity
States and political subdivisions	$	—	$	399,155	$	—	$	399,155
Corporate bonds		—		68,243		—		68,243
Commercial mortgage-backed securities		—		54,244		—		54,244
U.S. agency-based mortgage-backed securities		—		23,565		—		23,565
U.S. Treasury securities		6,602		—		—		6,602
Obligations of U.S. Government agencies		—		5,914		—		5,914
Asset-backed securities		—		3,456		—		3,456
Total held-to-maturity	$	6,602	$	554,577	$	—	$	561,179

The 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.

Cash and Cash Equivalents—The carrying amounts reported in the accompanying consolidated balance sheets for these financial instruments approximate their fair values, which are characterized as Level 1 assets.

Investments—The fair values for fixed maturity and equity securities are based on prices obtained from an independent pricing service. Equity and treasury securities are characterized as Level 1 assets, as their fair values are based on quoted prices in active markets. Fixed maturity securities, other than treasury securities, are characterized as Level 2 assets, as their fair values are determined using observable market inputs.

Short Term Investments—The carrying amounts reported in the accompanying consolidated balance sheets for these financial instruments approximate their fair values. These securities are characterized as Level 2 assets in the fair value hierarchy.

Other Investments—Other investments consist of limited partnership (LP) interests valued using the net asset value provided by the general partner of the LP, which approximates the fair value of the interest. The LP’s objective is to generate absolute returns by investing long and short in publicly-traded global securities. Redemptions are allowed monthly following a sixty day notice with no lock up periods. The Company has no unfunded commitments related to the LP. This investment is characterized as a Level 3 asset in the fair value hierarchy.

16

The following table summarizes the carrying values and corresponding fair values for financial instruments:

	As of September 30, 2014				As of December 31, 2013
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
	(in thousands)
Assets:
Fixed maturity securities—held-to-maturity	$	599,087	$	625,783	$	536,583	$	561,179
Fixed maturity securities—available-for-sale		317,278		317,278		237,877		237,877
Equity securities		3,598		3,598		9,302		9,302
Cash and cash equivalents		118,544		118,544		123,077		123,077
Short-term investments		42,411		42,411		84,422		84,422
Other investments		11,228		11,228		10,591		10,591

The following table presents summary information regarding changes in the fair value of assets measured at fair value using Level 3 input.

	September 30, 2014		December 31, 2013
	(in thousands)
Beginning balance	$	10,591	$	—
Purchases		—		10,000
Total unrealized gains		637		591
Ending balance	$	11,228	$	10,591

The purchase reported on the Level 3 table above is related to an interest in a limited partnership.

Note 8. Treasury Stock

The Company’s Board of Directors initiated a share repurchase program in February 2010. In October 2011, 2012, and 2013, the Board reauthorized this program with a new limit of $25.0 million. Unless reauthorized, the program will expire on December 31, 2014. Since the beginning of this plan, the Company has repurchased a total of 1,258,250 shares for $22.4 million, or an average price of $17.78, including commissions.

Note 9. Subsequent Events

On October 28, 2014, the Company’s Board of Directors declared a quarterly cash dividend of $0.12 per share, payable on December 26, 2014 to shareholders of record as of December 12, 2014. The Board intends to consider the payment of a regular cash dividend each calendar quarter.

On October 28, 2014, the Company’s Board of Directors declared an extraordinary cash dividend of $1.00 per share payable on December 26, 2014 to shareholders of record on December 12, 2014.

On October 28, 2014, the Company’s Board of Directors reauthorized the share repurchase program with a limit of $25.0 million. Unless reauthorized, the program will expire on December 31, 2015.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion should be read in conjunction with the accompanying unaudited condensed consolidated financial statements and the related notes included in Item 1 of Part I of this Quarterly Report on Form 10-Q, together with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in our Annual Report on Form 10-K for the year ended December 31, 2013.

We begin our discussion with an overview of our Company to give you an understanding of our business and the markets we serve. We then discuss our critical accounting policies. This is followed with a discussion of our results of operations for the three and nine months ended September 30, 2014 and 2013. This discussion includes an analysis of certain significant period-to-period variances in our consolidated statements of operations. Our cash flows and financial condition are discussed under the caption “Liquidity and Capital Resources.”

17

Business Overview

AMERISAFE is a holding company that markets and underwrites workers’ compensation insurance through its insurance subsidiaries. Workers’ compensation insurance covers statutorily prescribed benefits that employers are obligated to provide to their employees who are injured in the course and scope of their employment. Our business strategy is focused on providing this coverage to small to mid-sized employers engaged in hazardous industries, principally construction, trucking, manufacturing, oil and gas and agriculture. Employers engaged in hazardous industries pay substantially higher than average rates for workers’ compensation insurance compared to employers in other industries, as measured per payroll dollar. The higher premium rates are due to the nature of the work performed and the inherent workplace danger of our target employers. Hazardous industry employers also tend to have less frequent but more severe claims as compared to employers in other industries due to the nature of their businesses. We provide proactive safety reviews of employers’ workplaces. These safety reviews are a vital component of our underwriting process and also promote safer workplaces. We utilize intensive claims management practices that we believe permit us to reduce the overall cost of our claims. In addition, our audit services ensure that our policyholders pay the appropriate premiums required under the terms of their policies and enable us to monitor payroll patterns that cause underwriting, safety or fraud concerns. We believe that the higher premiums typically paid by our policyholders, together with our disciplined underwriting and safety, claims and audit services, provide us with the opportunity to earn attractive returns for our shareholders.

We actively market our insurance in 30 states and the District of Columbia through independent agencies, as well as through our wholly owned insurance agency subsidiary. We are also licensed in an additional 17 states and the U.S. Virgin Islands.

Critical Accounting Policies

Understanding our accounting policies is key to understanding our financial statements. Management considers some of these policies to be very important to the presentation of our financial results because they require us to make significant estimates and assumptions. These estimates and assumptions affect the reported amounts of our assets, liabilities, revenues and expenses and related disclosures. Some of the estimates result from judgments that can be subjective and complex and, consequently, actual results in future periods might differ from these estimates.

Management believes that the most critical accounting policies relate to the reporting of reserves for loss and loss adjustment expenses, including losses that have occurred but have not been reported prior to the reporting date, amounts recoverable from reinsurers, premiums receivable, assessments, deferred policy acquisition costs, deferred income taxes, the impairment of investment securities and share-based compensation. These critical accounting policies are more fully described in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Annual Report on Form 10-K for the year ended December 31, 2013.

Results of Operations

The following table summarizes our consolidated financial results for the three months and nine months ended September 30, 2014 and 2013.

	Three Months Ended September 30,						Nine Months Ended September 30,
	2014			2013			2014			2013
	(dollars in thousands, except per share data)
	(unaudited)
Gross premiums written	$	93,962		$	86,137		$	303,485		$	281,075
Net premiums earned		95,928			81,596			278,677			243,288
Net investment income		6,495			6,947			20,048			20,266
Total revenues		102,336			88,003			299,133			262,026
Total expenses		82,988			75,556			249,320			227,852
Net income		13,479			9,699			36,801			26,194
Diluted earnings per common share	$	0.71		$	0.52		$	1.95		$	1.39
Other Key Measures
Net combined ratio (1)		86.4	%		92.5	%		89.5	%		93.6	%
Return on average equity (2)		12.2	%		9.8	%		11.3	%		8.9	%
Book value per share (3)	$	23.85		$	21.67		$	23.85		$	21.67

(1) The net combined ratio is calculated by dividing the sum of loss and loss adjustment expenses incurred, underwriting and certain other operating costs, commissions, salaries and benefits, and policyholder dividends by net premiums earned in the current period.

(2) Return on average equity is calculated by dividing the annualized net income by the average shareholders’ equity for the applicable period.

(3) Book value per share is calculated by dividing shareholders’ equity by total outstanding shares, as of the end of the period.

18

Consolidated Results of Operations for Three Months Ended September 30, 2014 Compared to September 30, 2013

Gross Premiums Written. Gross premiums written for the quarter ended September 30, 2014 were $94.0 million, compared to $86.1 million for the same period in 2013, an increase of 9.1%. The increase was attributable to a $3.0 million increase in annual premiums on voluntary policies written during the period, a $4.0 million increase in premiums resulting from payroll audits and related premium adjustments for policies written in previous quarters and a $0.3 million increase in assumed premium from mandatory pooling arrangements. The effective loss cost multiplier, or LCM, for our voluntary business was 1.80 for the third quarter ended September 30, 2014 compared to 1.79 for the same period in 2013.

Net Premiums Written. Net premiums written for the quarter ended September 30, 2014 were $90.1 million, compared to $81.6 million for the same period in 2013, an increase of 10.4%. The increase was primarily attributable to the increase in gross premiums written. As a percentage of gross premiums earned, ceded premiums were 3.8% for the third quarter of 2014 compared to 5.2% for the third quarter of 2013. The decrease in ceded premiums as a percentage of gross premiums earned reflects a change in our 2014 reinsurance program. For additional information, see Item 1, “Business—Reinsurance” in our Annual Report on Form 10-K for the year ended December 31, 2013.

Net Premiums Earned. Net premiums earned for the third quarter of 2014 were $95.9 million, compared to $81.6 million for the same period in 2013, an increase of 17.6%. The increase was attributable to the increase in net premiums written in the quarter and a decrease in the change in unearned premiums.

Net Investment Income. Net investment income for the quarter ended September 30, 2014 was $6.5 million, compared to $6.9 million for the same period in 2013. Average invested assets, including cash and cash equivalents, were $1.1 billion in the quarter ended September 30, 2014, compared to an average of $1.0 billion for the same period in 2013, an increase of 13.2%. The pre-tax investment yield on our investment portfolio was 2.4% and 2.9% per annum during the quarters ended September 30, 2014 and 2013, respectively. The tax-equivalent yield on our investment portfolio was 3.5% per annum for the quarter ended September 30, 2014, compared to 3.9% per annum for the same period in 2013. The tax-equivalent yield is calculated using the effective interest rate and a 35% marginal tax rate.

Net Realized Gains/(Losses) on Investments. Net realized losses on investments for the three months ended September 30, 2014 totaled $0.2 million compared to net realized losses of $0.7 million for the same period in 2013. Net realized losses in the third quarter of 2014 were attributable to an other-than-temporary impairment of a fixed maturity security. Net realized losses in the third quarter of 2013 were attributable to $0.2 million in other-than-temporary impairments of an equity security and a realized loss of $0.5 million from the sale of equity securities from the available-for-sale portfolio.

Loss and Loss Adjustment Expenses Incurred. Loss and loss adjustment expenses (“LAE”) incurred totaled $61.8 million for the three months ended September 30, 2014, compared to $57.0 million for the same period in 2013, an increase of $4.8 million, or 8.4%. The current accident year losses and LAE incurred were $68.6 million, or 71.5% of net premiums earned, compared to $59.7 million, or 73.2% of net premiums earned, for the same period in 2013. We recorded favorable prior accident year development of $6.8 million in the third quarter of 2014, compared to favorable prior accident year development of $2.7 million in the same period of 2013, as further discussed below in “Prior Year Development.” Our net loss ratio was 64.4% in the third quarter of 2014, compared to 69.9% for the same period of 2013.

Underwriting and Certain Other Operating Costs, Commissions and Salaries and Benefits. Underwriting and certain other operating costs, commissions and salaries and benefits for the quarter ended September 30, 2014 were $21.0 million, compared to $18.5 million for the same period in 2013, an increase of 13.8%. This increase was primarily due to a $0.8 million increase in commission expense, a $0.8 million decrease in contingent profit commission and a $0.4 million decrease in ceding commission related to our 2014 reinsurance program and a $0.5 million increase in compensation expense. Offsetting these increases was a $0.5 million decrease in premium taxes. Our expense ratio was 21.9% in the third quarter of 2014 compared to 22.6% in the third quarter of 2013.

Income Tax Expense. Income tax expense for the three months ended September 30, 2014 was $5.9 million, compared to $2.7 million for the same period in 2013. The increase was attributable to an increase in the pre-tax income to $19.3 million in the quarter ended September 30, 2014 from $12.4 million in the same period in 2013. The effective tax rate increased to 30.3% in the quarter ended September 30, 2014 from 22.1% in the same period in 2013.

Consolidated Results of Operations for Nine Months Ended September 30, 2014 Compared to September 30, 2013

Gross Premiums Written. Gross premiums written for the first nine months of 2014 were $303.5 million, compared to $281.1 million for the same period in 2013, an increase of 8.0%. The increase was attributable to a $18.7 million increase in annual premiums on voluntary policies written during the period, a $1.9 million increase in premiums resulting from payroll audits and related premium adjustments for policies written in previous quarters and a $1.0 million increase in assumed premium from mandatory pooling arrangements.

19

Net Premiums Written. Net premiums written for the nine months ended September 30, 2014 were $292.8 million, compared to $267.5 million for the same period in 2013, an increase of 9.5%. The increase was primarily attributable to the increase in gross premiums written. As a percentage of gross premiums earned, ceded premiums were 3.7% and 5.3% for the first nine months of 2014 and 2013, respectively. The decrease in ceded premiums as a percentage of gross premiums earned is a result of a change in our 2014 reinsurance program. For additional information, see Item 1, “Business—Reinsurance” in our Annual Report on Form 10-K for the year ended December 31, 2013.

Net Premiums Earned. Net premiums earned for the first nine months of 2014 were $278.7 million, compared to $243.3 million for the same period in 2013, an increase of 14.5%. The increase was attributable to the increase in net premiums written and a decrease in the change in unearned premiums.

Net Investment Income. Net investment income for the first nine months of 2014 was $20.0 million, compared to $20.3 million for the same period in 2013. Average invested assets, including cash and cash equivalents, were $1.0 billion in the nine months ended September 30, 2014, compared to $0.9 billion for the same period in 2013, an increase of 12.8%. The pre-tax investment yield on our investment portfolio was 2.6% per annum during the nine months ended September 30, 2014, compared to 2.9% per annum during the same period in 2013. The tax-equivalent yield on our investment portfolio was 3.5% per annum for the first nine months of 2014 compared to 3.9% for the same period in 2013. The tax-equivalent yield is calculated using the effective interest rate and a 35% marginal tax rate.

Net Realized Gains/(Losses) on Investments. Net realized gains on investments for the nine months ended September 30, 2014 totaled $0.2 million, compared to net realized losses of $1.9 million for the same period in 2013. Net realized gains in the first nine months of 2014 were attributable to realized gains from the redemption of corporate bonds of $0.4 million offset by an other-than-temporary impairment of a fixed maturity security of $0.2 million. Net realized losses in the first nine months of 2013 were attributable to $2.2 million in other-than-temporary impairments of certain equity securities offset by $0.2 million in realized gains from the sale of equity securities and fixed maturity securities from the available-for-sale portfolio and $0.1 million attributable to called fixed maturity securities.

Loss and Loss Adjustment Expenses Incurred. Loss and LAE incurred totaled $185.6 million for the nine months ended September 30, 2014, compared to $169.9 million for the same period in 2013, an increase of $15.7 million, or 9.2%. The current accident year losses and LAE incurred were $199.3 million, or 71.5% of net premiums earned, compared to $178.1 million, or 73.2% of net premiums earned, for the same period in 2013. We recorded favorable prior accident year development of $13.7 million in the first nine months of 2014, compared to favorable prior accident year development of $8.3 million in the same period of 2013, as further discussed below in “Prior Year Development.” Our net loss ratio was 66.6% in the first nine months of 2014, compared to 69.8% for the same period of 2013.

Underwriting and Certain Other Operating Costs, Commissions and Salaries and Benefits. Underwriting and certain other operating costs, commissions and salaries and benefits for the nine months ended September 30, 2014 were $63.4 million, compared to $57.0 million for the same period in 2013, an increase of 11.2%. This increase was primarily due to a $2.6 million decrease in contingent profit commission and a $1.2 million decrease in ceding commission related to our 2014 reinsurance program, a $2.1 million increase in commission expense, a $1.1 million increase in compensation expense, a $0.3 million increase in taxes, licenses and fees, a $0.2 million increase in insurance related assessments and a $0.2 million increase in mandatory pooling arrangement fees. Offsetting these increases was a $1.6 million decrease in premium taxes. Our expense ratio was 22.8% in the first nine months of 2014 compared to 23.4% in the same period of 2013.

Income Tax Expense. Income tax expense for the nine months ended September 30, 2014 was $13.0 million, compared to $8.0 million for the same period in 2013. The increase was attributable to an increase in pre-tax income to $49.8 million in the first nine months of 2014 from $34.2 million in the first nine months of 2013. The effective tax rate increased to 26.1% for the nine months ended September 30, 2014 from 23.4% for the nine months ended September 30, 2013.

Liquidity and Capital Resources

Our principal sources of operating funds are premiums, investment income and proceeds from sales and maturities of investments. Our primary uses of operating funds include payments of claims and operating expenses. Currently, we pay claims using cash flow from operations and invest the remaining funds.

Net cash provided by operating activities was $104.0 million for the nine months ended September 30, 2014, which represented a $4.2 million increase from $99.8 million in net cash provided by operating activities for the nine months ended September 30, 2013. This increase in operating cash flow was attributable to a $34.6 million increase in premium collections, a $2.0 million increase in

20

investment income, a $1.4 million increase in reinsurance recoveries, a $0.6 million increase in paid losses payable and a $0.4 million decrease in dividends paid to policyholders. Offsetting these increases were a $18.6 million increase in underwriting expenses paid, a $5.7 million increase in losses paid, a $4.0 million decrease in payable for securities sold and a $1.9 million increase in federal income taxes paid.

Net cash used in investing activities was $96.3 million for the nine months ended September 30, 2014, compared to net cash used in investment activities of $74.1 million for the same period in 2013. Cash provided by sales and maturities of investments totaled $240.9 million for the nine months ended September 30, 2014, compared to $197.2 million for the same period in 2013. A total of $336.4 million in cash was used to purchase investments in the nine months ended September 30, 2014, compared to $270.5 million in purchases for the same period in 2013.

Net cash used in financing activities in the nine months ended September 30, 2014 was $12.2 million compared to net cash used in financing activities of $1.6 million for the same period in 2013. In the nine months ended September 30, 2014, $16.0 million of cash was used for dividends paid to shareholders compared to $4.4 million in the same period of 2013. Offsetting this increase were proceeds of $1.8 million and $1.6 million from stock option exercises in the nine months ended September 30, 2014 and 2013, respectively. During the nine months ended September 30, 2014, the tax benefit from share based compensation was $2.0 million compared to $1.2 million for the same period in 2013.

The Board of Directors initially authorized the Company’s share repurchase program in February 2010. In October 2011, 2012, and 2013, the Board reauthorized this program. As of September 30, 2014, we had repurchased a total of 1,258,250 shares of our outstanding common stock for $22.4 million. The Company had $25.0 million available for future purchases at September 30, 2014 under this program. There were no shares purchased during the nine months ended September 30, 2014 and 2013. We intend to purchase shares of our common stock from time to time depending upon market conditions and subject to applicable regulatory considerations. It is anticipated that future purchases will be funded from available capital.

During the nine months ended September 30, 2014, the Company paid a total of $6.7 million in regular quarterly cash dividends as well as an extraordinary cash dividend of $9.3 million.

On October 28, 2014, the Company’s Board of Directors declared a quarterly cash dividend of $0.12 per share payable on December 26, 2014 to shareholders of record as of December 12, 2014. The Board intends to consider the payment of a regular cash dividend each calendar quarter.

On October 28, 2014, the Company’s Board of Directors declared an extraordinary cash dividend of $1.00 per share payable on December 26, 2014 to shareholders of record on December 12, 2014.

On October 28, 2014, the Company’s Board of Directors reauthorized the share repurchase program with a limit of $25.0 million. Unless reauthorized, the program will expire on December 31, 2015.

Investment Portfolio

As of September 30, 2014, our investment portfolio, including cash and cash equivalents, totaled $1.1 billion, an increase of 11.6% from $1.0 billion on September 30, 2013. Effective April 1, 2010, purchases of fixed maturity securities are classified as available-for-sale or held-to-maturity based on the individual security. Such classification is made at the time of purchase. The reported value of our fixed maturity securities classified as held-to-maturity, as defined by FASB ASC Topic 320, “Investments-Debt and Equity Securities,” was equal to their amortized cost, and thus was not impacted by changing interest rates. Our equity securities and fixed maturity securities classified as available-for-sale were reported at fair value.

21

The composition of our investment portfolio, including cash and cash equivalents, as of September 30, 2014, is shown in the following table:

	Carrying Value		Percentage of Portfolio
	(in thousands)
Fixed maturity securities—held-to-maturity:
States and political subdivisions	$	374,869		34.3	%
U.S. agency-based mortgage-backed securities		18,012		1.6	%
Commercial mortgage-backed securities		47,657		4.4	%
U.S. Treasury securities and obligations of U.S. Government agencies		10,703		1.0	%
Corporate bonds		144,898		13.3	%
Asset-backed securities		2,948		0.3	%
Total fixed maturity securities—held-to-maturity		599,087		54.9	%
Fixed maturity securities—available-for-sale:
States and political subdivisions		156,789		14.4	%
U.S. agency-based mortgage-backed securities		7,819		0.7	%
Corporate bonds		152,670		14.0	%
Total fixed maturity securities—available-for-sale		317,278		29.1	%
Equity securities		3,598		0.3	%
Short-term investments		42,411		3.9	%
Cash and cash equivalents		118,544		10.8	%
Other investments		11,228		1.0	%
Total investments, including cash and cash equivalents	$	1,092,146		100.0	%

Our securities classified as available-for-sale are “marked to market” as of the end of each calendar quarter. As of that date, unrealized gains and losses are recorded to Accumulated Other Comprehensive Income, except when such securities are deemed to be other-than-temporarily impaired. For our securities classified as held-to-maturity, unrealized gains and losses are not recorded in the financial statements until realized or until a decline in fair value, below amortized cost, is deemed to be other-than-temporary.

During the three and nine months ended September 30, 2014, the Company recorded charges for a fixed maturity security whose fair value was determined to be other-than-temporarily impaired. These charges are included in “Net realized gains/(losses) on investments”, and totaled $0.2 million for the three and nine months ended September 30, 2014.

During 2013, the Company recorded charges for certain equity securities whose fair values were determined to be other-than-temporarily impaired. These charges are included in “Net realized gains/(losses) on investments”, and totaled $0.2 million and $2.2 million for the three and nine months ended September 30, 2013, respectively.

22

Prior Year Development

The Company recorded favorable prior accident year development of $6.8 million in the three months ended September 30, 2014. The table below sets forth the favorable or unfavorable development for the three and nine months ended September 30, 2014 and 2013 for accident years 2009 through 2013 and, collectively, for all accident years prior to 2009.

	Favorable/(Unfavorable) Development
	Three Months Ended September 30, 2014		Three Months Ended September 30, 2013		Nine Months Ended September 30, 2014		Nine Months Ended September 30, 2013
	(in millions)
Accident Year
2013	$	—	$	—	$	—	$	—
2012		3.5		—		4.0		0.5
2011		—		—		—		0.4
2010		1.9		—		3.7		0.3
2009		—		1.4		2.0		2.4
Prior to 2009		1.4		1.3		4.0		4.7
Total net development	$	6.8	$	2.7	$	13.7	$	8.3

The table below sets forth the number of open claims as of September 30, 2014 and 2013, and the number of claims reported and closed during the three and nine months then ended.

	Three Months Ended September 30,						Nine Months Ended September 30,
	2014			2013			2014			2013
Open claims at beginning of period		5,342			5,245			5,297			4,964
Claims reported		1,668			1,590			4,387			4,228
Claims closed		(1,438	)		(1,448	)		(4,112	)		(3,805	)
Open claims at end of period		5,572			5,387			5,572			5,387

The number of open claims at September 30, 2014 increased by 185 claims as compared to the number of open claims at September 30, 2013. Efforts continue to close prior year claims, especially in those circumstances where the claim could be settled for less than the corresponding case reserve amount (which amount represents the estimated ultimate cost to settle the claim, undiscounted). Management believes that these efforts have contributed, in part, to the favorable prior accident year development recorded for the nine months ended September 30, 2014.

Our reserves for loss and loss adjustment expenses are inherently uncertain and our focus on providing workers’ compensation insurance to employers engaged in hazardous industries results in our receiving relatively fewer but more severe claims than many other workers’ compensation insurance companies. As a result of this focus on higher severity, lower frequency business, our reserve for loss and loss adjustment expenses may have greater volatility than other workers’ compensation insurance companies. For additional information, see Item 1, “Business—Loss Reserves” in our Annual Report on Form 10-K for the year ended December 31, 2013.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

Market risk is the risk of potential economic loss principally arising from adverse changes in the fair value of financial instruments. The major components of market risk affecting us are credit risk, interest rate risk and equity price risk. We currently have no exposure to foreign currency risk.

Since December 31, 2013, there have been no material changes in the quantitative or qualitative aspect of our market risk profile. For additional information regarding the Company’s exposure to certain market risks, see Item 7A, “Quantitative and Qualitative Disclosures About Market Risk” in our Annual Report on Form 10-K for the year ended December 31, 2013.

23

Item 4. Controls and Procedures.

Under the supervision and with the participation of our management, including our chief executive officer and chief financial officer, we have evaluated the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of the end of the period covered by this report. Based on that evaluation, our chief executive officer and chief financial officer concluded that our disclosure controls and procedures were effective as of the end of the period covered by this report to provide reasonable assurance that information we are required to disclose in reports that are filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms. We note that the design of any system of controls is based in part upon assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving the stated goals under all potential future conditions.

Because of its inherent limitations, management does not expect that our disclosure controls and our internal controls over financial reporting will prevent or detect all misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with policies and procedures may deteriorate. Any control system, no matter how well designed and operated, is based upon certain assumptions and can only provide reasonable, not absolute assurance that its objectives will be met. Further, no evaluation of controls can provide absolute assurance that misstatements due to errors or fraud will not occur or that all control issues and instances of fraud, if any within the Company, have been detected.

There have not been any changes in our internal control over financial reporting during the period covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II—OTHER INFORMATION

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

The Board of Directors initially authorized the Company’s share repurchase program in February 2010. In October 2011, 2012 and 2013, the Board reauthorized this program. As of September 30, 2014, we had repurchased a total of 1,258,250 shares of our outstanding common stock for $22.4 million. There were no shares purchased during the nine months ended September 30, 2014 and 2013. We intend to purchase shares of our common stock from time to time depending upon market conditions and subject to applicable regulatory considerations. It is anticipated that future purchases will be funded from available capital. The dollar value of shares that may yet be purchased under the program is $25.0 million.

On October 28, 2014, the Company’s Board of Directors reauthorized the share repurchase program with a limit of $25.0 million. Unless reauthorized, the program will expire on December 31, 2015.

24

Item 6. Exhibits.

Exhibit No.	Description
31.1	Certification of C. Allen Bradley, Jr. filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of Michael Grasher filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Certification of C. Allen Bradley, Jr. and Michael Grasher filed pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document

25

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 thereunto duly authorized.

	AMERISAFE, INC.
October 31, 2014	/S/ C. ALLEN BRADLEY, JR.
	C. Allen Bradley, Jr.
	Chairman and Chief Executive Officer
	(Principal Executive Officer)
October 31, 2014	/S/ Michael Grasher
	Michael Grasher
	Executive Vice President and Chief Financial Officer
	(Principal Financial and Accounting Officer)

26

EXHIBIT INDEX

Exhibit No.	Description
31.1	Certification of C. Allen Bradley, Jr. filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of Michael Grasher filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Certification of C. Allen Bradley, Jr. and Michael Grasher filed pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document

27

EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, C. Allen Bradley, Jr., certify that:

1. I have reviewed this quarterly report on Form 10-Q of AMERISAFE, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: October 31, 2014	/s/ C. Allen Bradley, Jr.
	C. Allen Bradley, Jr.
	Chairman and Chief Executive Officer
	(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, Michael Grasher, certify that:

1. I have reviewed this quarterly report on Form 10-Q of AMERISAFE, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: October 31, 2014	/s/ Michael Grasher
	Michael Grasher
	Executive Vice President and Chief Financial Officer
	(Principal Financial Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. § 1350,

AS ADOPTED PURSUANT TO § 906

OF THE SARBANES-OXLEY ACT OF 2002

In connection with the filing of the Quarterly Report on Form 10-Q of AMERISAFE, Inc., a Texas corporation (the “Company”), for the quarter ended September 30, 2014, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned officers of the Company certifies, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to such officer’s knowledge:

1. The report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods expressed in the Report.

Date: October 31, 2014	/s/ C. Allen Bradley, Jr.
	C. Allen Bradley, Jr.
	Chairman and Chief Executive Officer
	(Principal Executive Officer)
	/s/ Michael Grasher
	Michael Grasher
	Executive Vice President and Chief Financial Officer
	(Principal Financial Officer)

The foregoing certification is being furnished solely pursuant to 18 U.S.C. § 1350 and is not being filed as part of the Report or as a separate disclosure document.

XML

Treasury Stock - Additional Information (Detail) (USD $)	9 Months Ended
	Sep. 30, 2014	Dec. 31, 2013	Oct. 31, 2013	Oct. 31, 2012	Oct. 31, 2011
Equity [Abstract]
Share repurchase new limit amount			$ 25,000,000	$ 25,000,000	$ 25,000,000
Share repurchase program expiration date	Dec. 31, 2014
Shares repurchased	1,258,250	1,258,250
Shares repurchased, value	$ 22,400,000
Shares repurchased, average price	$ 17.78

XML

Comprehensive Income and Accumulated Other Comprehensive Income - Schedule of Changes in Accumulated Other Comprehensive Income (AOCI) (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Beginning balance	$ 1,961	$ (1,626)	$ (4,295)	$ 2,979
Other comprehensive income/(loss) before reclassification	121	(1,483)	6,192	(5,809)
Amounts reclassified from accumulated other comprehensive income	(4)	438	181	159
Net current period other comprehensive income/(loss)	117	(1,045)	6,373	(5,650)
Ending balance	$ 2,078	$ (2,671)	$ 2,078	$ (2,671)

XML

Investments - Gross Unrealized Gains and Losses and Amortized Cost and Fair Value of Investments Classified as Held-to-Maturity (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Investment [Line Items]
Held-to-Maturity, Amortized Cost	$ 599,087	$ 536,583
Held-to-Maturity, Gross Unrealized Gains	27,020	25,934
Held-to-Maturity, Gross Unrealized Losses	(324)	(1,338)
Held-to-Maturity, Fair Value	625,783	561,179
States and Political Subdivisions [Member]
Investment [Line Items]
Held-to-Maturity, Amortized Cost	374,869	381,674
Held-to-Maturity, Gross Unrealized Gains	21,092	18,634
Held-to-Maturity, Gross Unrealized Losses	(34)	(1,153)
Held-to-Maturity, Fair Value	395,927	399,155
Corporate Bonds [Member]
Investment [Line Items]
Held-to-Maturity, Amortized Cost	144,898	67,423
Held-to-Maturity, Gross Unrealized Gains	579	861
Held-to-Maturity, Gross Unrealized Losses	(204)	(41)
Held-to-Maturity, Fair Value	145,273	68,243
Commercial Mortgage-Backed Securities [Member]
Investment [Line Items]
Held-to-Maturity, Amortized Cost	47,657	50,813
Held-to-Maturity, Gross Unrealized Gains	2,371	3,431
Held-to-Maturity, Fair Value	50,028	54,244
U.S. Agency-Based Mortgage-Backed Securities [Member]
Investment [Line Items]
Held-to-Maturity, Amortized Cost	18,012	21,775
Held-to-Maturity, Gross Unrealized Gains	1,735	1,790
Held-to-Maturity, Fair Value	19,747	23,565
U.S. Treasury securities and obligations of U.S. Government agencies [Member]
Investment [Line Items]
Held-to-Maturity, Amortized Cost	10,703	11,514
Held-to-Maturity, Gross Unrealized Gains	1,016	1,002
Held-to-Maturity, Gross Unrealized Losses	(1)
Held-to-Maturity, Fair Value	11,718	12,516
Asset-Backed Securities [Member]
Investment [Line Items]
Held-to-Maturity, Amortized Cost	2,948	3,384
Held-to-Maturity, Gross Unrealized Gains	227	216
Held-to-Maturity, Gross Unrealized Losses	(85)	(144)
Held-to-Maturity, Fair Value	$ 3,090	$ 3,456

XML

Fair Value Measurements - Summary of Carrying Values and Corresponding Fair Values for Financial Instruments (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturity securities-held-to-maturity	$ 625,783	$ 561,179
Fixed maturity securities-held-to-maturity	599,087	536,583
Fixed maturity securities-available-for-sale	317,278	237,877
Equity securities	3,598	9,302
Short-term investments	42,411	84,422
Carrying Amount [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturity securities-held-to-maturity	599,087	536,583
Fixed maturity securities-available-for-sale	317,278	237,877
Equity securities	3,598	9,302
Cash and cash equivalents	118,544	123,077
Short-term investments	42,411	84,422
Other investments	11,228	10,591
Fair Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturity securities-held-to-maturity	625,783	561,179
Fixed maturity securities-available-for-sale	317,278	237,877
Equity securities	3,598	9,302
Cash and cash equivalents	118,544	123,077
Short-term investments	42,411	84,422
Other investments	$ 11,228	$ 10,591

XML

Stock Options and Restricted Stock

9 Months Ended

Sep. 30, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock Options and Restricted Stock

Note 2. Stock Options and Restricted Stock

The Company has three equity incentive plans: the AMERISAFE 2005 Equity Incentive Plan (the “2005 Incentive Plan”), the AMERISAFE 2010 Non-Employee Director Restricted Stock Plan (the “2010 Restricted Stock Plan”) and the AMERISAFE 2012 Equity and Incentive Compensation Plan (the “2012 Incentive Plan”). See Note 13 to our consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2013 for additional information regarding the Company’s incentive plans.

In the nine months ended September 30, 2014, the Company has granted 4,312 and 4,866 shares of restricted common stock to executive officers and non-employee directors, respectively. The market value of the restricted shares granted totaled $0.4 million.

During the nine months ended September 30, 2014, options to purchase 204,667 shares of common stock were exercised. During the nine months ended September 30, 2013, options to purchase 173,300 shares of common stock were exercised. In connection with these exercises, the Company received $1.8 million and $1.6 million of stock option proceeds.

The Company recognized share-based compensation expense of $1.0 million in the nine months ended September 30, 2014 and 2013.

XML

Investments - Investment Securities Continuous Unrealized Loss Position (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Investment [Line Items]
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	$ 87,871	$ 68,985
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less Than Twelve Months, Accumulated Loss	239	1,188
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	1,746	2,227
Held-to-maturity Securities, Continuous Unrealized Loss Position Twelve Months Or Longer, Accumulated Loss	85	150
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value	89,617	71,212
Held-to-maturity Securities, Gross Unrealized Losses	324	1,338
Available-for Sale, Fair value of Investments with Unrealized Losses, Less Than 12 Months	87,150	138,107
Available-for Sale, Gross Unrealized Losses, Less Than 12 Months	499	6,191
Available-for Sale Fair, Value of Investments with Unrealized Losses, 12 Months or Greater	18,165	7,525
Available-for Sale, Gross Unrealized Losses, 12 Months or Greater	3,595	2,844
Available-for Sale, Fair Value of Investments with Unrealized Losses, Total	105,315	145,632
Available-for Sale, Gross Unrealized Losses, Total	4,094	9,035
Fair Value of Investments with Unrealized Losses, Less Than 12 months	175,021	207,092
Gross Unrealized Loss, Less Than 12 Months	738	7,379
Fair Value of Investments with Unrealized Losses, 12 Months or Greater	19,911	9,752
Gross Unrealized Losses, 12 Months or Greater	3,680	2,994
Fair Value of Investments with Unrealized Losses, Total	194,932	216,844
Gross Unrealized Losses, Total	4,418	10,373
Corporate Bonds [Member]
Investment [Line Items]
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	77,260	14,090
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less Than Twelve Months, Accumulated Loss	204	41
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value	77,260	14,090
Held-to-maturity Securities, Gross Unrealized Losses	204	41
Available-for Sale, Fair value of Investments with Unrealized Losses, Less Than 12 Months	78,350	29,691
Available-for Sale, Gross Unrealized Losses, Less Than 12 Months	314	361
Available-for Sale Fair, Value of Investments with Unrealized Losses, 12 Months or Greater
Available-for Sale, Gross Unrealized Losses, 12 Months or Greater
Available-for Sale, Fair Value of Investments with Unrealized Losses, Total	78,350	29,691
Available-for Sale, Gross Unrealized Losses, Total	314	361
States and Political Subdivisions [Member]
Investment [Line Items]
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	7,760	54,895
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less Than Twelve Months, Accumulated Loss	34	1,147
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value		311
Held-to-maturity Securities, Continuous Unrealized Loss Position Twelve Months Or Longer, Accumulated Loss		6
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value	7,760	55,206
Held-to-maturity Securities, Gross Unrealized Losses	34	1,153
Available-for Sale, Fair value of Investments with Unrealized Losses, Less Than 12 Months	6,894	101,908
Available-for Sale, Gross Unrealized Losses, Less Than 12 Months	33	4,798
Available-for Sale Fair, Value of Investments with Unrealized Losses, 12 Months or Greater	11,070	1,753
Available-for Sale, Gross Unrealized Losses, 12 Months or Greater	1,566	342
Available-for Sale, Fair Value of Investments with Unrealized Losses, Total	17,964	103,661
Available-for Sale, Gross Unrealized Losses, Total	1,599	5,140
U.S. Agency-Based Mortgage-Backed Securities [Member]
Investment [Line Items]
Available-for Sale, Fair value of Investments with Unrealized Losses, Less Than 12 Months	724	1,303
Available-for Sale, Gross Unrealized Losses, Less Than 12 Months	60	465
Available-for Sale Fair, Value of Investments with Unrealized Losses, 12 Months or Greater	7,095	5,772
Available-for Sale, Gross Unrealized Losses, 12 Months or Greater	2,029	2,502
Available-for Sale, Fair Value of Investments with Unrealized Losses, Total	7,819	7,075
Available-for Sale, Gross Unrealized Losses, Total	2,089	2,967
Equity securities [Member]
Investment [Line Items]
Available-for Sale, Fair value of Investments with Unrealized Losses, Less Than 12 Months	1,182	5,205
Available-for Sale, Gross Unrealized Losses, Less Than 12 Months	92	567
Available-for Sale Fair, Value of Investments with Unrealized Losses, 12 Months or Greater
Available-for Sale, Gross Unrealized Losses, 12 Months or Greater
Available-for Sale, Fair Value of Investments with Unrealized Losses, Total	1,182	5,205
Available-for Sale, Gross Unrealized Losses, Total	92	567
Asset-Backed Securities [Member]
Investment [Line Items]
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	1,746	1,916
Held-to-maturity Securities, Continuous Unrealized Loss Position Twelve Months Or Longer, Accumulated Loss	85	144
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value	1,746	1,916
Held-to-maturity Securities, Gross Unrealized Losses	85	144
U.S. Treasury securities and obligations of U.S. Government agencies [Member]
Investment [Line Items]
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	2,851
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less Than Twelve Months, Accumulated Loss	1
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value	2,851
Held-to-maturity Securities, Gross Unrealized Losses	$ 1

XML

Investments - Summary of Amortized Cost and Fair Value of Investments in Fixed Maturity Securities, Classified as Available-for-Sale (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Investment [Line Items]
Less than one year, Amortized Cost	$ 71,210
One to five years, Amortized Cost	167,036
Five to ten years, Amortized Cost	47,917
More than ten years, Amortized Cost	18,236
Total, Amortized Cost	314,307	244,409
Less than one year, Fair Value	71,345
One to five years, Fair Value	170,290
Five to ten years, Fair Value	50,249
More than ten years, Fair Value	17,575
Total, Fair Value	317,278	237,877
U.S. Agency-Based Mortgage-Backed Securities [Member]
Investment [Line Items]
Available for sale securities, Amortized Cost	9,908
Available for sale securities, Fair Value	$ 7,819

XML

Investments - Additional Information (Detail) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014 Securities Individual	Sep. 30, 2013	Sep. 30, 2014 Securities Individual	Sep. 30, 2013	Dec. 31, 2013
Investments Schedule [Abstract]
Individual fixed maturity held in unrealized loss position	126		126
Equity securities held in unrealized loss position	2		2
Individual fixed maturity held in unrealized loss position	21		21
Carrying value of other investments	$ 11,228,000		$ 11,228,000		$ 10,591,000
Impairment losses recognized	200,000		200,000	2,200,000
Net realized gains/(losses) on investments	(152,000)	(654,000)	181,000	(1,921,000)
Net realized gain(loss)outside OTTI			$ 400,000	$ 200,000

XML

Income Taxes - Additional Information (Detail) (USD $)	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Income Tax Disclosure [Abstract]
Company recognized uncertain tax positions	$ 0	$ 0
Unrecognized tax benefits	$ 0

XML

Basis of Presentation

9 Months Ended

Sep. 30, 2014

Accounting Policies [Abstract]

Basis of Presentation

Note 1. Basis of Presentation

AMERISAFE, Inc. (the “Company”) is an insurance holding company incorporated in the state of Texas. The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its subsidiaries: American Interstate Insurance Company (“AIIC”), Silver Oak Casualty, Inc. (“SOCI”), 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. In 2013, AIIC and SOCI were re-domesticated to Nebraska from Louisiana. RISK, a wholly owned subsidiary of the Company, is a claims and safety services company, currently servicing only affiliated insurance companies. AGAI, a wholly owned subsidiary of the Company, 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. The assets and operations of AGAI are not significant to that of the Company and its consolidated subsidiaries. The terms “AMERISAFE,” the “Company,” “we,” “us” or “our” refer to AMERISAFE, Inc. and its consolidated subsidiaries, as the context requires.

The Company provides workers’ compensation insurance for small to mid-sized employers engaged in hazardous industries, principally construction, trucking, manufacturing, oil and gas, and agriculture. Assets and revenues of AIIC represent at least 95% of comparable consolidated amounts of the Company for each of 2014 and 2013.

In the opinion of management of the Company, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of normal recurring accruals) necessary to present fairly the financial position, the results of operations and cash flows for the periods presented. The unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q under the Securities Exchange Act of 1934 and therefore do not include all information and footnotes to be in conformity with accounting principles generally accepted in the United States (“GAAP”). The results for the interim periods are not necessarily indicative of the results of operations that may be expected for the year. The unaudited condensed consolidated financial statements contained herein should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2013.

The preparation of financial statements in conformity 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.

XML

Comprehensive Income and Accumulated Other Comprehensive Income - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Comprehensive income	$ 13,596	$ 8,654	$ 43,174	$ 20,544
Comprehensive income tax rate			35.00%

XML

Subsequent Events - Additional Information (Detail) (USD $)	9 Months Ended				0 Months Ended
	Sep. 30, 2014	Oct. 31, 2013	Oct. 31, 2012	Oct. 31, 2011	Oct. 28, 2014 Subsequent Event [Member]	Oct. 28, 2014 Subsequent Event [Member] Dividend Declared [Member]	Oct. 28, 2014 Subsequent Event [Member] Extraordinary Dividend [Member]
Subsequent Event [Line Items]
Cash dividend per share						$ 0.12
Date of payment to shareholders entitled to dividends						Dec. 26, 2014	Dec. 26, 2014
Date of record of shareholders entitled to dividends						Dec. 12, 2014	Dec. 12, 2014
Extraordinary cash dividends declared per common share	$ 0.50						$ 1.00
Share repurchase program limit amount		$ 25,000,000	$ 25,000,000	$ 25,000,000	$ 25,000,000
Share repurchase program expiration date	Dec. 31, 2014				Dec. 31, 2015

XML

Condensed Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Investments:
Fixed maturity securities-held-to-maturity, at amortized cost (fair value $625,783 and $561,179 in 2014 and 2013, respectively)	$ 599,087	$ 536,583
Fixed maturity securities-available-for-sale, at fair value (cost $314,307 and $244,409 in 2014 and 2013, respectively)	317,278	237,877
Equity securities-available-for-sale, at fair value (cost $3,446 and $9,482 in 2014 and 2013, respectively)	3,598	9,302
Short-term investments	42,411	84,422
Other investments	11,228	10,591
Total investments	973,602	878,775
Cash and cash equivalents	118,544	123,077
Amounts recoverable from reinsurers	89,847	75,326
Premiums receivable, net of allowance	193,615	171,579
Deferred income taxes	33,830	33,645
Accrued interest receivable	11,268	11,242
Property and equipment, net	7,362	7,549
Deferred policy acquisition costs	21,016	19,171
Other assets	18,300	8,637
Total assets	1,467,384	1,329,001
Liabilities:
Reserves for loss and loss adjustment expenses	676,609	614,557
Unearned premiums	178,449	164,296
Reinsurance premiums payable	1,311	607
Amounts held for others	41,356	35,739
Policyholder deposits	48,426	44,620
Insurance-related assessments	32,175	25,428
Accounts payable and other liabilities	32,838	26,940
Payable for investments purchased	7,737
Total liabilities	1,018,901	912,187
Shareholders' equity:
Common stock: Voting-$0.01 par value authorized shares-50,000,000 in 2014 and 2013; 20,066,075 and 19,855,430 shares issued and 18,807,825 and 18,597,180 shares outstanding in 2014 and 2013, respectively	200	198
Additional paid-in capital	197,094	192,537
Treasury stock at cost (1,258,250 shares in 2014 and 2013)	(22,370)	(22,370)
Accumulated earnings	271,481	250,744
Accumulated other comprehensive income/(loss), net	2,078	(4,295)
Total shareholders' equity	448,483	416,814
Total liabilities and shareholders' equity	$ 1,467,384	$ 1,329,001

XML

Condensed Consolidated Statement of Changes In Shareholders' Equity (Unaudited) (USD $) In Thousands, except Share data	Total	Common Stock [Member]	Treasury Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Earnings [Member]	Accumulated Other Comprehensive Loss [Member]
Beginning Balance at Dec. 31, 2013	$ 416,814	$ 198	$ (22,370)	$ 192,537	$ 250,744	$ (4,295)
Treasury Stock Beginning Balance, Shares at Dec. 31, 2013	(1,258,250)		(1,258,250)
Beginning Balance, Shares at Dec. 31, 2013	19,855,430	19,855,430
Comprehensive income	43,174				36,801	6,373
Options exercised	1,820	2		1,818
Options exercised, Shares	204,667	204,667
Tax benefit from share-based payments	1,975			1,975
Restricted common stock issued
Restricted common stock issued, Shares		5,978
Share-based compensation	764			764
Dividends to stockholders	(16,064)				(16,064)
Ending Balance at Sep. 30, 2014	$ 448,483	$ 200	$ (22,370)	$ 197,094	$ 271,481	$ 2,078
Treasury Stock Ending Balance, Shares at Sep. 30, 2014	(1,258,250)		(1,258,250)
Ending Balance, Shares at Sep. 30, 2014	20,066,075	20,066,075

XML

Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Fair Value Measurements Disclosure [Line Items]
Securities available for sale/Available-for-sale, Fair value	$ 332,104	$ 257,770
Equity securities [Member]
Fair Value Measurements Disclosure [Line Items]
Securities available for sale/Available-for-sale, Fair value	3,598	9,302
Other investments [Member]
Fair Value Measurements Disclosure [Line Items]
Securities available for sale/Available-for-sale, Fair value	11,228	10,591
Fair Value, Measurements, Recurring [Member]
Fair Value Measurements Disclosure [Line Items]
Securities available for sale/Available-for-sale, Fair value	332,104	257,770
Fair Value, Measurements, Recurring [Member] | Debt Securities [Member]
Fair Value Measurements Disclosure [Line Items]
Securities available for sale/Available-for-sale, Fair value	317,278	237,877
Fair Value, Measurements, Recurring [Member] | Other investments [Member]
Fair Value Measurements Disclosure [Line Items]
Securities available for sale/Available-for-sale, Fair value	11,228	10,591
Fair Value, Measurements, Recurring [Member] | Common Stock [Member] | Equity securities [Member]
Fair Value Measurements Disclosure [Line Items]
Securities available for sale/Available-for-sale, Fair value	3,598	9,302
Fair Value, Measurements, Recurring [Member] | States and Political Subdivisions [Member] | Debt Securities [Member]
Fair Value Measurements Disclosure [Line Items]
Securities available for sale/Available-for-sale, Fair value	156,789	150,375
Fair Value, Measurements, Recurring [Member] | Corporate Bonds [Member] | Debt Securities [Member]
Fair Value Measurements Disclosure [Line Items]
Securities available for sale/Available-for-sale, Fair value	152,670	80,428
Fair Value, Measurements, Recurring [Member] | U.S. Agency-Based Mortgage-Backed Securities [Member] | Debt Securities [Member]
Fair Value Measurements Disclosure [Line Items]
Securities available for sale/Available-for-sale, Fair value	7,819	7,074
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value Measurements Disclosure [Line Items]
Securities available for sale/Available-for-sale, Fair value	3,598	9,302
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Common Stock [Member] | Equity securities [Member]
Fair Value Measurements Disclosure [Line Items]
Securities available for sale/Available-for-sale, Fair value	3,598	9,302
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value Measurements Disclosure [Line Items]
Securities available for sale/Available-for-sale, Fair value	317,278	237,877
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Debt Securities [Member]
Fair Value Measurements Disclosure [Line Items]
Securities available for sale/Available-for-sale, Fair value	317,278	237,877
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | States and Political Subdivisions [Member] | Debt Securities [Member]
Fair Value Measurements Disclosure [Line Items]
Securities available for sale/Available-for-sale, Fair value	156,789	150,375
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Corporate Bonds [Member] | Debt Securities [Member]
Fair Value Measurements Disclosure [Line Items]
Securities available for sale/Available-for-sale, Fair value	152,670	80,428
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Agency-Based Mortgage-Backed Securities [Member] | Debt Securities [Member]
Fair Value Measurements Disclosure [Line Items]
Securities available for sale/Available-for-sale, Fair value	7,819	7,074
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value Measurements Disclosure [Line Items]
Securities available for sale/Available-for-sale, Fair value	11,228	10,591
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Other investments [Member]
Fair Value Measurements Disclosure [Line Items]
Securities available for sale/Available-for-sale, Fair value	$ 11,228	$ 10,591

XML

Basis of Presentation - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Percentage of comparable consolidated amounts	95.00%	95.00%

XML

Fair Value Measurements - Schedule of Assets and Liabilities Measured at Amortized Cost (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Fair Value Measurements Disclosure [Line Items]
Securities held-to-maturity-fixed maturity, Fair Value	$ 625,783	$ 561,179
States and Political Subdivisions [Member]
Fair Value Measurements Disclosure [Line Items]
Securities held-to-maturity-fixed maturity, Fair Value	395,927	399,155
Corporate Bonds [Member]
Fair Value Measurements Disclosure [Line Items]
Securities held-to-maturity-fixed maturity, Fair Value	145,273	68,243
Commercial Mortgage-Backed Securities [Member]
Fair Value Measurements Disclosure [Line Items]
Securities held-to-maturity-fixed maturity, Fair Value	50,028	54,244
U.S. Agency-Based Mortgage-Backed Securities [Member]
Fair Value Measurements Disclosure [Line Items]
Securities held-to-maturity-fixed maturity, Fair Value	19,747	23,565
US Treasury Securities [Member]
Fair Value Measurements Disclosure [Line Items]
Securities held-to-maturity-fixed maturity, Fair Value	11,718	6,602
Obligations of U.S. Government Agencies [Member]
Fair Value Measurements Disclosure [Line Items]
Securities held-to-maturity-fixed maturity, Fair Value		5,914
Asset-Backed Securities [Member]
Fair Value Measurements Disclosure [Line Items]
Securities held-to-maturity-fixed maturity, Fair Value	3,090	3,456
Fair Value, Inputs, Level 1 [Member]
Fair Value Measurements Disclosure [Line Items]
Securities held-to-maturity-fixed maturity, Fair Value	11,718	6,602
Fair Value, Inputs, Level 1 [Member] | US Treasury Securities [Member]
Fair Value Measurements Disclosure [Line Items]
Securities held-to-maturity-fixed maturity, Fair Value	11,718	6,602
Fair Value, Inputs, Level 2 [Member]
Fair Value Measurements Disclosure [Line Items]
Securities held-to-maturity-fixed maturity, Fair Value	614,065	554,577
Fair Value, Inputs, Level 2 [Member] | States and Political Subdivisions [Member]
Fair Value Measurements Disclosure [Line Items]
Securities held-to-maturity-fixed maturity, Fair Value	395,927	399,155
Fair Value, Inputs, Level 2 [Member] | Corporate Bonds [Member]
Fair Value Measurements Disclosure [Line Items]
Securities held-to-maturity-fixed maturity, Fair Value	145,273	68,243
Fair Value, Inputs, Level 2 [Member] | Commercial Mortgage-Backed Securities [Member]
Fair Value Measurements Disclosure [Line Items]
Securities held-to-maturity-fixed maturity, Fair Value	50,028	54,244
Fair Value, Inputs, Level 2 [Member] | U.S. Agency-Based Mortgage-Backed Securities [Member]
Fair Value Measurements Disclosure [Line Items]
Securities held-to-maturity-fixed maturity, Fair Value	19,747	23,565
Fair Value, Inputs, Level 2 [Member] | Obligations of U.S. Government Agencies [Member]
Fair Value Measurements Disclosure [Line Items]
Securities held-to-maturity-fixed maturity, Fair Value		5,914
Fair Value, Inputs, Level 2 [Member] | Asset-Backed Securities [Member]
Fair Value Measurements Disclosure [Line Items]
Securities held-to-maturity-fixed maturity, Fair Value	$ 3,090	$ 3,456

XML

Earnings Per Share - Summary of Earnings Per Share (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Earnings Per Share, Basic [Abstract]
Net income	$ 13,479	$ 9,699	$ 36,801	$ 26,194
Less allocated income to unvested shares		27		74
Net income available to common shareholders-basic	13,479	9,672	36,801	26,120
Basic weighted average common shares	18,676,033	18,395,971	18,603,227	18,343,901
Basic earnings per common share	$ 0.72	$ 0.53	$ 1.98	$ 1.42
Net income available to common shareholders-diluted	$ 13,479	$ 9,673	$ 36,801	$ 26,122
Weighted average common shares	18,676,033	18,395,971	18,603,227	18,343,901
Stock options and performance shares	253,744	362,375	302,653	386,828
Diluted weighted average common shares	18,929,777	18,758,346	18,905,880	18,730,729
Diluted earnings per common share	$ 0.71	$ 0.52	$ 1.95	$ 1.39

XML

Condensed Consolidated Statements Of Cash Flows (Unaudited) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Operating Activities
Net income	$ 36,801	$ 26,194
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	958	968
Net amortization of investments	11,336	9,552
Deferred income taxes	(3,616)	(2,109)
Net realized (gains)/losses on investments	(181)	1,921
Loss on sale of asset		2
Share-based compensation	988	1,020
Changes in operating assets and liabilities:
Premiums receivable, net	(22,036)	(30,052)
Accrued interest receivable	(26)	(496)
Deferred policy acquisition costs	(1,845)	(2,666)
Other assets	(10,300)	260
Reserves for loss and loss adjustment expenses	62,052	38,592
Unearned premiums	14,153	24,211
Reinsurance balances	(13,817)	23,842
Amounts held for others and policyholder deposits	9,423	(6,142)
Accounts payable and other liabilities	20,091	14,667
Net cash provided by operating activities	103,981	99,764
Investing Activities
Purchases of investments held-to-maturity	(152,887)	(55,547)
Purchases of investments available-for-sale	(110,631)	(92,366)
Purchases of short-term investments	(72,899)	(112,624)
Purchases of other invested assets		(10,000)
Proceeds from maturities of investments held-to-maturity	84,942	83,715
Proceeds from sales and maturities of investments available-for-sale	43,283	20,606
Proceeds from sales and maturities of short-term investments	112,652	92,921
Purchases of property and equipment	(771)	(764)
Net cash used in investing activities	(96,311)	(74,059)
Financing Activities
Proceeds from stock option exercises	1,820	1,597
Tax benefit from share-based payments	1,975	1,222
Dividends to stockholders	(15,998)	(4,422)
Net cash used in financing activities	(12,203)	(1,603)
Change in cash and cash equivalents	(4,533)	24,102
Cash and cash equivalents at beginning of period	123,077	92,676
Cash and cash equivalents at end of period	$ 118,544	$ 116,778

XML

Condensed Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Statement of Financial Position [Abstract]
Fixed maturity securities, fair value	$ 625,783	$ 561,179
Fixed maturity securities, cost	314,307	244,409
Equity securities, cost	$ 3,446	$ 9,482
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	20,066,075	19,855,430
Common stock, shares outstanding	18,807,825	18,597,180
Treasury stock, shares	1,258,250	1,258,250

XML

Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2014

Accounting Policies [Abstract]

Earnings Per Share

The Company computes earnings per share (“EPS”) in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 260, Earnings Per Share. Additionally, during 2013, the Company applied the “two-class method” in computing basic and diluted earnings per share as a result of the participating unvested common shares which contained nonforfeitable rights to dividends during this period. As of January 1, 2014, the Company no longer has participating unvested common shares which contain nonforfeitable rights to dividends and now applies the treasury stock method in computing basic and diluted earnings per share.

Income Taxes

In accordance with FASB ASC Topic 740, “Income Taxes,” we provide for the recognition and measurement of deferred income tax benefits based on the likelihood of their realization in future years. As of September 30, 2014, the Company had no material unrecognized tax benefits and no adjustments to liabilities or operations were required.

Fair Value Measurements

We carry available-for-sale securities at fair value in our consolidated financial statements and determine fair value measurements and disclosure in accordance with FASB ASC Topic 820, “Fair Value Measurements and Disclosures.”

The 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.

XML

Document and Entity Information	9 Months Ended
	Sep. 30, 2014	Oct. 30, 2014
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q3
Trading Symbol	AMSF
Entity Registrant Name	AMERISAFE INC
Entity Central Index Key	0001018979
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		18,822,825

XML

Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2014

Earnings Per Share [Abstract]

Summary of Earnings Per Share

	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
	(in thousands, except share and per share amounts)
Basic EPS:
Net income, as reported	$	13,479	$	9,699	$	36,801	$	26,194
Less allocated income to unvested shares		—		27		—		74
Net income available to common shareholders—basic	$	13,479	$	9,672	$	36,801	$	26,120
Basic weighted average common shares		18,676,033		18,395,971		18,603,227		18,343,901
Basic earnings per common share	$	0.72	$	0.53	$	1.98	$	1.42
Diluted EPS:
Net income available to common shareholders—diluted	$	13,479	$	9,673	$	36,801	$	26,122
Diluted weighted average common shares:
Weighted average common shares		18,676,033		18,395,971		18,603,227		18,343,901
Stock options and performance shares		253,744		362,375		302,653		386,828
Diluted weighted average common shares		18,929,777		18,758,346		18,905,880		18,730,729
Diluted earnings per common share	$	0.71	$	0.52	$	1.95	$	1.39

XML

Condensed Consolidated Statements of Income (Unaudited) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Revenues
Gross premiums written	$ 93,962	$ 86,137	$ 303,485	$ 281,075
Ceded premiums written	(3,823)	(4,519)	(10,655)	(13,576)
Net premiums written	90,139	81,618	292,830	267,499
Net premiums earned	95,928	81,596	278,677	243,288
Net investment income	6,495	6,947	20,048	20,266
Net realized gains/(losses) on investments	(152)	(654)	181	(1,921)
Fee and other income	65	114	227	393
Total revenues	102,336	88,003	299,133	262,026
Expenses
Loss and loss adjustment expenses incurred	61,822	57,046	185,570	169,860
Underwriting and certain other operating costs	7,822	6,634	24,624	21,472
Commissions	7,022	6,176	20,696	18,569
Salaries and benefits	6,183	5,662	18,090	16,971
Policyholder dividends	139	38	340	980
Total expenses	82,988	75,556	249,320	227,852
Income before income taxes	19,348	12,447	49,813	34,174
Income tax expense	5,869	2,748	13,012	7,980
Net income	13,479	9,699	36,801	26,194
Net income available to common shareholders	$ 13,479	$ 9,673	$ 36,801	$ 26,122
Earnings per share
Basic	$ 0.72	$ 0.53	$ 1.98	$ 1.42
Diluted	$ 0.71	$ 0.52	$ 1.95	$ 1.39
Shares used in computing earnings per share
Basic	18,676,033	18,395,971	18,603,227	18,343,901
Diluted	18,929,777	18,758,346	18,905,880	18,730,729
Extraordinary cash dividends declared per common share			$ 0.50
Cash dividends declared per common share	$ 0.12	$ 0.08	$ 0.36	$ 0.24

XML

Income Taxes

9 Months Ended

Sep. 30, 2014

Income Tax Disclosure [Abstract]

Income Taxes

Note 5. Income Taxes

In accordance with FASB ASC Topic 740, “Income Taxes,” we provide for the recognition and measurement of deferred income tax benefits based on the likelihood of their realization in future years. As of September 30, 2014, the Company had no material unrecognized tax benefits and no adjustments to liabilities or operations were required.

The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. There were no uncertain tax positions recognized for the periods ended September 30, 2014 and 2013.

Tax years 2009 through 2013 are subject to examination by the federal and state taxing authorities. In April 2012, the Company was notified by the Internal Revenue Service that the examination for tax year 2009 had been completed, but remains subject to examination by state taxing authorities.

XML

Investments

9 Months Ended

Sep. 30, 2014

Investments, Debt and Equity Securities [Abstract]

Investments

Note 4. Investments

The gross unrealized gains and losses on, and the amortized cost and fair value of, those investments classified as held-to-maturity at September 30, 2014 are summarized as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)
States and political subdivisions	$	374,869	$	21,092	$	(34	)	$	395,927
Corporate bonds		144,898		579		(204	)		145,273
Commercial mortgage-backed securities		47,657		2,371		—			50,028
U.S. agency-based mortgage-backed securities		18,012		1,735		—			19,747
U.S. Treasury securities and obligations of U.S. Government agencies		10,703		1,016		(1	)		11,718
Asset-backed securities		2,948		227		(85	)		3,090
Totals	$	599,087	$	27,020	$	(324	)	$	625,783

The gross unrealized gains and losses on, and the cost or amortized cost and fair value of, those investments classified as available-for-sale at September 30, 2014 are summarized as follows:

	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)
Fixed maturity:
States and political subdivisions	$	151,839	$	6,549	$	(1,599	)	$	156,789
Corporate bonds		152,560		424		(314	)		152,670
U.S. agency-based mortgage-backed securities		9,908		—		(2,089	)		7,819
Total fixed maturity		314,307		6,973		(4,002	)		317,278
Other investments		10,000		1,228		—			11,228
Equity securities		3,446		244		(92	)		3,598
Totals	$	327,753	$	8,445	$	(4,094	)	$	332,104

The gross unrealized gains and losses on, and the amortized cost and fair value of, those investments classified as held-to-maturity at December 31, 2013 are summarized as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)
States and political subdivisions	$	381,674	$	18,634	$	(1,153	)	$	399,155
Corporate bonds		67,423		861		(41	)		68,243
Commercial mortgage-backed securities		50,813		3,431		—			54,244
U.S. agency-based mortgage-backed securities		21,775		1,790		—			23,565
U.S. Treasury securities and obligations of U.S. Government agencies		11,514		1,002		—			12,516
Asset-backed securities		3,384		216		(144	)		3,456
Totals	$	536,583	$	25,934	$	(1,338	)	$	561,179

The gross unrealized gains and losses on, and the cost or amortized cost and fair value of, those investments classified as available-for-sale at December 31, 2013 are summarized as follows:

	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)
Fixed maturity:
States and political subdivisions	$	154,024	$	1,491	$	(5,140	)	$	150,375
Corporate bonds		80,344		445		(361	)		80,428
U.S. agency-based mortgage-backed securities		10,041		—		(2,967	)		7,074
Total fixed maturity		244,409		1,936		(8,468	)		237,877
Other investments		10,000		591		—			10,591
Equity securities		9,482		387		(567	)		9,302
Totals	$	263,891	$	2,914	$	(9,035	)	$	257,770

A summary of the cost and fair value of investments in fixed maturity securities, classified as held-to-maturity at September 30, 2014, by contractual maturity, is as follows:

Remaining Time to Maturity	Amortized Cost Basis		Fair Value
	(in thousands)
Within one year	$	130,685	$	132,090
After one year through five years		328,360		343,614
After five years through ten years		70,889		76,599
After ten years		536		615
U.S. agency-based mortgage-backed securities		18,012		19,747
Commercial mortgage-backed securities		47,657		50,028
Asset-backed securities		2,948		3,090
Total	$	599,087	$	625,783

A summary of cost and fair value of investments in fixed maturity securities, classified as available-for-sale at September 30, 2014, by contractual maturity, is as follows:

Remaining Time to Maturity	Amortized Cost Basis		Fair Value
	(in thousands)
Within one year	$	71,210	$	71,345
After one year through five years		167,036		170,290
After five years through ten years		47,917		50,249
After ten years		18,236		17,575
U.S. agency-based mortgage-backed securities		9,908		7,819
Total	$	314,307	$	317,278

The following table summarizes the fair value and gross unrealized losses on securities, aggregated by major investment category and length of time that the individual securities have been in a continuous unrealized loss position:

	Less Than 12 Months				12 Months or Greater				Total
	Fair Value of Investments with Unrealized Losses		Gross Unrealized Losses		Fair Value of Investments with Unrealized Losses		Gross Unrealized Losses		Fair Value of Investments with Unrealized Losses		Gross Unrealized Losses
	(In thousands)
September 30, 2014
Held-to-Maturity
Fixed maturity securities:
Corporate bonds	$	77,260	$	204	$	—	$	—	$	77,260	$	204
States and political subdivisions		7,760		34		—		—		7,760		34
Asset-backed securities		—		—		1,746		85		1,746		85
U.S. Treasury securities and obligations of U.S. Government agencies		2,851		1		—		—		2,851		1
Total held-to-maturity securities		87,871		239		1,746		85		89,617		324
Available-for Sale
Fixed maturity securities:
Corporate bonds	$	78,350	$	314	$	—	$	—	$	78,350	$	314
States and political subdivisions		6,894		33		11,070		1,566		17,964		1,599
U.S. agency-based mortgage-backed securities		724		60		7,095		2,029		7,819		2,089
Equity securities		1,182		92		—		—		1,182		92
Total available-for-sale securities		87,150		499		18,165		3,595		105,315		4,094
Total	$	175,021	$	738	$	19,911	$	3,680	$	194,932	$	4,418

	Less Than 12 Months				12 Months or Greater				Total
	Fair Value of Investments with Unrealized Losses		Gross Unrealized Losses		Fair Value of Investments with Unrealized Losses		Gross Unrealized Losses		Fair Value of Investments with Unrealized Losses		Gross Unrealized Losses
	(In thousands)
December 31, 2013
Held-to-Maturity
Fixed maturity securities:
Corporate bonds	$	14,090	$	41	$	—	$	—	$	14,090	$	41
States and political subdivisions		54,895		1,147		311		6		55,206		1,153
Asset-backed securities		—		—		1,916		144		1,916		144
Total held-to-maturity securities		68,985		1,188		2,227		150		71,212		1,338
Available-for Sale
Fixed maturity securities:
Corporate bonds	$	29,691	$	361	$	—	$	—	$	29,691	$	361
States and political subdivisions		101,908		4,798		1,753		342		103,661		5,140
U.S. agency-based mortgage-backed securities		1,303		465		5,772		2,502		7,075		2,967
Equity securities		5,205		567		—		—		5,205		567
Total available-for-sale securities		138,107		6,191		7,525		2,844		145,632		9,035
Total	$	207,092	$	7,379	$	9,752	$	2,994	$	216,844	$	10,373

At September 30, 2014, the Company held 126 individual fixed maturity securities and two equity securities that were in an unrealized loss position, of which 21 individual fixed maturity securities were in a continuous unrealized loss position for longer than 12 months.

The Company holds investments in a long/short equity fund, accounted for under the equity method. The carrying value of this investment is $11.2 million at September 30, 2014.

Investment 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.

We regularly review our investment portfolio to evaluate the necessity of recording impairment losses for other-than-temporary declines in the fair value of our investments. We consider various factors in determining if a decline in the fair value of an individual security is other-than-temporary. The key factors we consider are:

• any reduction or elimination of dividends, or nonpayment of scheduled principal or interest payments;

• the financial condition and near-term prospects of the issuer of the applicable security, including any specific events that may affect its operations or earnings;

• how long and by how much the fair value of the security has been below its cost or amortized cost;

• any downgrades of the security by a rating agency;

• our intent not to sell the security for a sufficient time period for it to recover its value;

• the likelihood of being forced to sell the security before the recovery of its value; and

• an evaluation as to whether there are any credit losses on debt securities.

We reviewed all securities with unrealized losses in accordance with the impairment policy described above. The Company expects to hold investments in equity securities for a reasonable period of time sufficient for a recovery of fair value. With the exception of one security deemed to be other-than-temporarily impaired, the Company determined that the unrealized losses in the fixed maturity securities portfolio related primarily to changes in market interest rates since the date of purchase, current conditions in the capital markets and the impact of those conditions on market liquidity and prices generally, and the transfer of the investments from the available-for-sale classification to the held-to-maturity classification in January 2004. We expect to recover the carrying value of these securities as it is not more likely than not that we will be required to sell the security before the recovery of its amortized cost basis.

During the third quarter of 2014, the Company impaired a fixed maturity security in the amount of $0.2 million. The impairment charge is included in “Net realized gains (losses) on investments” for 2014. We impaired the security due to a recent downgrade of the security and the amount of the accumulated unrealized loss.

Net realized gains in the nine months ended September 30, 2014 were $0.2 million resulting from $0.4 million in gains on called fixed maturity securities offset by an impairment loss of $0.2 million recognized for the other-than-temporary decline in the fair value of a fixed maturity security. Net realized losses in the nine months ended September 30, 2013 were $1.9 million due to $2.2 million of impairment losses recognized for other-than-temporary declines in the fair value of certain equity securities offset by realized gains of $0.2 million.

XML

Stock Options and Restricted Stock - Additional Information (Detail) (USD $)	9 Months Ended
	Sep. 30, 2014 Incentive_Plan	Sep. 30, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of equity incentive plans	3
Market value of restricted shares granted	$ 400,000
Stock options exercised, Shares	204,667	173,300
Proceeds from stock option exercises	1,820,000	1,597,000
Share-based compensation expense	$ 1,000,000	$ 1,000,000
Restricted Stock Units (RSUs) [Member] | Non-Employee Directors [Member] | 2010 Restricted Stock Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted common stock granted	4,866
Restricted Stock Units (RSUs) [Member] | Executive Officers [Member] | 2012 Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted common stock granted	4,312

XML

Investments (Tables)

9 Months Ended

Sep. 30, 2014

Gross Unrealized Gains and Losses and Amortized Cost and Fair Value of Investments Classified as Held-to-maturity

The gross unrealized gains and losses on, and the amortized cost and fair value of, those investments classified as held-to-maturity at September 30, 2014 are summarized as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)
States and political subdivisions	$	374,869	$	21,092	$	(34	)	$	395,927
Corporate bonds		144,898		579		(204	)		145,273
Commercial mortgage-backed securities		47,657		2,371		—			50,028
U.S. agency-based mortgage-backed securities		18,012		1,735		—			19,747
U.S. Treasury securities and obligations of U.S. Government agencies		10,703		1,016		(1	)		11,718
Asset-backed securities		2,948		227		(85	)		3,090
Totals	$	599,087	$	27,020	$	(324	)	$	625,783

The gross unrealized gains and losses on, and the amortized cost and fair value of, those investments classified as held-to-maturity at December 31, 2013 are summarized as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)
States and political subdivisions	$	381,674	$	18,634	$	(1,153	)	$	399,155
Corporate bonds		67,423		861		(41	)		68,243
Commercial mortgage-backed securities		50,813		3,431		—			54,244
U.S. agency-based mortgage-backed securities		21,775		1,790		—			23,565
U.S. Treasury securities and obligations of U.S. Government agencies		11,514		1,002		—			12,516
Asset-backed securities		3,384		216		(144	)		3,456
Totals	$	536,583	$	25,934	$	(1,338	)	$	561,179

Gross Unrealized Gains and Losses and Cost or Amortized Cost and Fair Value of Investments Classified as Available-for-sale

The gross unrealized gains and losses on, and the cost or amortized cost and fair value of, those investments classified as available-for-sale at September 30, 2014 are summarized as follows:

	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)
Fixed maturity:
States and political subdivisions	$	151,839	$	6,549	$	(1,599	)	$	156,789
Corporate bonds		152,560		424		(314	)		152,670
U.S. agency-based mortgage-backed securities		9,908		—		(2,089	)		7,819
Total fixed maturity		314,307		6,973		(4,002	)		317,278
Other investments		10,000		1,228		—			11,228
Equity securities		3,446		244		(92	)		3,598
Totals	$	327,753	$	8,445	$	(4,094	)	$	332,104

The gross unrealized gains and losses on, and the cost or amortized cost and fair value of, those investments classified as available-for-sale at December 31, 2013 are summarized as follows:

	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)
Fixed maturity:
States and political subdivisions	$	154,024	$	1,491	$	(5,140	)	$	150,375
Corporate bonds		80,344		445		(361	)		80,428
U.S. agency-based mortgage-backed securities		10,041		—		(2,967	)		7,074
Total fixed maturity		244,409		1,936		(8,468	)		237,877
Other investments		10,000		591		—			10,591
Equity securities		9,482		387		(567	)		9,302
Totals	$	263,891	$	2,914	$	(9,035	)	$	257,770

Investment Securities Continuous Unrealized Loss Position

The following table summarizes the fair value and gross unrealized losses on securities, aggregated by major investment category and length of time that the individual securities have been in a continuous unrealized loss position:

	Less Than 12 Months				12 Months or Greater				Total
	Fair Value of Investments with Unrealized Losses		Gross Unrealized Losses		Fair Value of Investments with Unrealized Losses		Gross Unrealized Losses		Fair Value of Investments with Unrealized Losses		Gross Unrealized Losses
	(In thousands)
September 30, 2014
Held-to-Maturity
Fixed maturity securities:
Corporate bonds	$	77,260	$	204	$	—	$	—	$	77,260	$	204
States and political subdivisions		7,760		34		—		—		7,760		34
Asset-backed securities		—		—		1,746		85		1,746		85
U.S. Treasury securities and obligations of U.S. Government agencies		2,851		1		—		—		2,851		1
Total held-to-maturity securities		87,871		239		1,746		85		89,617		324
Available-for Sale
Fixed maturity securities:
Corporate bonds	$	78,350	$	314	$	—	$	—	$	78,350	$	314
States and political subdivisions		6,894		33		11,070		1,566		17,964		1,599
U.S. agency-based mortgage-backed securities		724		60		7,095		2,029		7,819		2,089
Equity securities		1,182		92		—		—		1,182		92
Total available-for-sale securities		87,150		499		18,165		3,595		105,315		4,094
Total	$	175,021	$	738	$	19,911	$	3,680	$	194,932	$	4,418

	Less Than 12 Months				12 Months or Greater				Total
	Fair Value of Investments with Unrealized Losses		Gross Unrealized Losses		Fair Value of Investments with Unrealized Losses		Gross Unrealized Losses		Fair Value of Investments with Unrealized Losses		Gross Unrealized Losses
	(In thousands)
December 31, 2013
Held-to-Maturity
Fixed maturity securities:
Corporate bonds	$	14,090	$	41	$	—	$	—	$	14,090	$	41
States and political subdivisions		54,895		1,147		311		6		55,206		1,153
Asset-backed securities		—		—		1,916		144		1,916		144
Total held-to-maturity securities		68,985		1,188		2,227		150		71,212		1,338
Available-for Sale
Fixed maturity securities:
Corporate bonds	$	29,691	$	361	$	—	$	—	$	29,691	$	361
States and political subdivisions		101,908		4,798		1,753		342		103,661		5,140
U.S. agency-based mortgage-backed securities		1,303		465		5,772		2,502		7,075		2,967
Equity securities		5,205		567		—		—		5,205		567
Total available-for-sale securities		138,107		6,191		7,525		2,844		145,632		9,035
Total	$	207,092	$	7,379	$	9,752	$	2,994	$	216,844	$	10,373

Held-to-Maturity Securities [Member]

Summary of Amortized Cost and Fair Value of Investments in Fixed Maturity Securities, by Contractual Maturity

A summary of the cost and fair value of investments in fixed maturity securities, classified as held-to-maturity at September 30, 2014, by contractual maturity, is as follows:

Remaining Time to Maturity	Amortized Cost Basis		Fair Value
	(in thousands)
Within one year	$	130,685	$	132,090
After one year through five years		328,360		343,614
After five years through ten years		70,889		76,599
After ten years		536		615
U.S. agency-based mortgage-backed securities		18,012		19,747
Commercial mortgage-backed securities		47,657		50,028
Asset-backed securities		2,948		3,090
Total	$	599,087	$	625,783

Available-for-Sale Securities [Member]

Summary of Amortized Cost and Fair Value of Investments in Fixed Maturity Securities, by Contractual Maturity

A summary of cost and fair value of investments in fixed maturity securities, classified as available-for-sale at September 30, 2014, by contractual maturity, is as follows:

Remaining Time to Maturity	Amortized Cost Basis		Fair Value
	(in thousands)
Within one year	$	71,210	$	71,345
After one year through five years		167,036		170,290
After five years through ten years		47,917		50,249
After ten years		18,236		17,575
U.S. agency-based mortgage-backed securities		9,908		7,819
Total	$	314,307	$	317,278

XML

Treasury Stock

9 Months Ended

Sep. 30, 2014

Equity [Abstract]

Treasury Stock

Note 8. Treasury Stock

The Company’s Board of Directors initiated a share repurchase program in February 2010. In October 2011, 2012, and 2013, the Board reauthorized this program with a new limit of $25.0 million. Unless reauthorized, the program will expire on December 31, 2014. Since the beginning of this plan, the Company has repurchased a total of 1,258,250 shares for $22.4 million, or an average price of $17.78, including commissions.

XML

Comprehensive Income and Accumulated Other Comprehensive Income

9 Months Ended

Sep. 30, 2014

Equity [Abstract]

Comprehensive Income and Accumulated Other Comprehensive Income

Note 6. Comprehensive Income and Accumulated Other Comprehensive Income

Comprehensive income was $13.6 million for the three months ended September 30, 2014, compared to $8.7 million for the three months ended September 30, 2013. Comprehensive income was $43.2 million for the nine months ended September 30, 2014, compared to $20.5 million for the same period in 2013. The difference between net income as reported and comprehensive income was due to changes in unrealized gains and losses, net of tax on available-for-sale securities.

Comprehensive 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 statement of income, we used a 35 percent tax rate. The following table illustrates the changes in the balance of each component of accumulated other comprehensive income for each period presented in the interim financial statements.

	Three Months Ended September 30,						Nine Months Ended September 30,
	2014			2013			2014			2013
	(in thousands)
Beginning balance	$	1,961		$	(1,626	)	$	(4,295	)	$	2,979
Other comprehensive income/(loss) before reclassification		121			(1,483	)		6,192			(5,809	)
Amounts reclassified from accumulated other comprehensive income		(4	)		438			181			159
Net current period other comprehensive income/(loss)		117			(1,045	)		6,373			(5,650	)
Ending balance	$	2,078		$	(2,671	)	$	2,078		$	(2,671	)

The sale or other-than-temporary impairment of an available-for-sale security results in amounts being reclassified from accumulated other comprehensive income to current period net income. The effects of reclassifications out of accumulated other comprehensive income by the respective line items of net income are presented in the following table.

Component of Accumulated Other Comprehensive Income	Three Months Ended September 30,						Nine Months Ended September 30,						Affected line item in the statement of income
	2014			2013			2014			2013
	(in thousands)
Unrealized gains/(losses) on available-for-sale securities	$	1		$	(484	)	$	(270	)	$	362		Net realized gains on investments
Other-than-temporary impairment		5			(190	)		(8	)		(607	)	Net realized gains on investments
		6			(674	)		(278	)		(245	)	Income before income taxes
		(2	)		236			97			86		Income tax expense
	$	4		$	(438	)	$	(181	)	$	(159	)	Net income

XML

Fair Value Measurements

9 Months Ended

Sep. 30, 2014

Fair Value Disclosures [Abstract]

Fair Value Measurements

Note 7. Fair Value Measurements

We carry available-for-sale securities at fair value in our consolidated financial statements and determine fair value measurements and disclosure in accordance with FASB ASC Topic 820, “Fair Value Measurements and Disclosures.”

The 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.

Fair 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.

ASC 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.

In 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:

• Observable 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.

• Unobservable 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.

Valuation 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:

• Level 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.

• Level 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.

• Level 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.

In 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.

The 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 market 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 nine months ended September 30, 2014.

At September 30, 2014, assets and liabilities measured at fair value on a recurring basis are summarized below:

	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
	(in thousands)
Financial instruments carried at fair value, classified as a part of:
Other investments	$	—	$	—	$	11,228	$	11,228
Securities available for sale—equity:
Domestic common stock		3,598		—		—		3,598
Securities available for sale—fixed maturity:
States and political subdivisions		—		156,789		—		156,789
Corporate bonds		—		152,670		—		152,670
U.S. agency-based mortgage-backed securities		—		7,819		—		7,819
Total securities available for sale—fixed maturity		—		317,278		—		317,278
Total available for sale	$	3,598	$	317,278	$	11,228	$	332,104

At September 30, 2014, assets and liabilities measured at amortized cost are summarized below:

	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
	(in thousands)
Securities held-to-maturity—fixed maturity
States and political subdivisions	$	—	$	395,927	$	—	$	395,927
Corporate bonds		—		145,273		—		145,273
Commercial mortgage-backed securities		—		50,028		—		50,028
U.S. agency-based mortgage-backed securities		—		19,747		—		19,747
U.S. Treasury securities		11,718		—		—		11,718
Asset-backed securities		—		3,090		—		3,090
Total held-to-maturity	$	11,718	$	614,065	$	—	$	625,783

At December 31, 2013, assets and liabilities measured at fair value on a recurring basis are summarized below:

	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
	(in thousands)
Financial instruments carried at fair value, classified as part of:
Other investments	$	—	$	—	$	10,591	$	10,591
Securities available for sale—equity
Domestic common stock		9,302		—		—		9,302
Securities available for sale—fixed maturity
States and political subdivisions		—		150,375		—		150,375
Corporate bonds		—		80,428		—		80,428
U.S. agency-based mortgage-backed securities		—		7,074		—		7,074
Total available for sale—fixed maturity		—	$	237,877	$	—	$	237,877
Total available for sale	$	9,302	$	237,877	$	10,591	$	257,770

At December 31, 2013, assets and liabilities measured at amortized cost are summarized below:

	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
	(in thousands)
Securities held-to-maturity—fixed maturity
States and political subdivisions	$	—	$	399,155	$	—	$	399,155
Corporate bonds		—		68,243		—		68,243
Commercial mortgage-backed securities		—		54,244		—		54,244
U.S. agency-based mortgage-backed securities		—		23,565		—		23,565
U.S. Treasury securities		6,602		—		—		6,602
Obligations of U.S. Government agencies		—		5,914		—		5,914
Asset-backed securities		—		3,456		—		3,456
Total held-to-maturity	$	6,602	$	554,577	$	—	$	561,179

The 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.

Cash and Cash Equivalents—The carrying amounts reported in the accompanying consolidated balance sheets for these financial instruments approximate their fair values, which are characterized as Level 1 assets.

Investments—The fair values for fixed maturity and equity securities are based on prices obtained from an independent pricing service. Equity and treasury securities are characterized as Level 1 assets, as their fair values are based on quoted prices in active markets. Fixed maturity securities, other than treasury securities, are characterized as Level 2 assets, as their fair values are determined using observable market inputs.

Short Term Investments—The carrying amounts reported in the accompanying consolidated balance sheets for these financial instruments approximate their fair values. These securities are characterized as Level 2 assets in the fair value hierarchy.

Other Investments—Other investments consist of limited partnership (LP) interests valued using the net asset value provided by the general partner of the LP, which approximates the fair value of the interest. The LP’s objective is to generate absolute returns by investing long and short in publicly-traded global securities. Redemptions are allowed monthly following a sixty day notice with no lock up periods. The Company has no unfunded commitments related to the LP. This investment is characterized as a Level 3 asset in the fair value hierarchy.

The following table summarizes the carrying values and corresponding fair values for financial instruments:

	As of September 30, 2014				As of December 31, 2013
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
	(in thousands)
Assets:
Fixed maturity securities—held-to-maturity	$	599,087	$	625,783	$	536,583	$	561,179
Fixed maturity securities—available-for-sale		317,278		317,278		237,877		237,877
Equity securities		3,598		3,598		9,302		9,302
Cash and cash equivalents		118,544		118,544		123,077		123,077
Short-term investments		42,411		42,411		84,422		84,422
Other investments		11,228		11,228		10,591		10,591

The following table presents summary information regarding changes in the fair value of assets measured at fair value using Level 3 input.

	September 30, 2014		December 31, 2013
	(in thousands)
Beginning balance	$	10,591	$	—
Purchases		—		10,000
Total unrealized gains		637		591
Ending balance	$	11,228	$	10,591

The purchase reported on the Level 3 table above is related to an interest in a limited partnership.

XML

Subsequent Events

9 Months Ended

Sep. 30, 2014

Subsequent Events [Abstract]

Subsequent Events

Note 9. Subsequent Events

On October 28, 2014, the Company’s Board of Directors declared a quarterly cash dividend of $0.12 per share, payable on December 26, 2014 to shareholders of record as of December 12, 2014. The Board intends to consider the payment of a regular cash dividend each calendar quarter.

On October 28, 2014, the Company’s Board of Directors declared an extraordinary cash dividend of $1.00 per share payable on December 26, 2014 to shareholders of record on December 12, 2014.

On October 28, 2014, the Company’s Board of Directors reauthorized the share repurchase program with a limit of $25.0 million. Unless reauthorized, the program will expire on December 31, 2015.

XML

Comprehensive Income and Accumulated Other Comprehensive Income - Reclassification Out of Accumulated Other Comprehensive Income (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income before income taxes	$ 19,348	$ 12,447	$ 49,813	$ 34,174
Income tax expense	(5,869)	(2,748)	(13,012)	(7,980)
Net income	13,479	9,699	36,801	26,194
Changes in net unrealized gains on investment securities [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Unrealized gains/(losses) on available for sale securities	1	(484)	(270)	362
Other-than-temporary impairment	5	(190)	(8)	(607)
Income before income taxes	6	(674)	(278)	(245)
Income tax expense	(2)	236	97	86
Net income	$ 4	$ (438)	$ (181)	$ (159)

XML

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2014

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis

At September 30, 2014, assets and liabilities measured at fair value on a recurring basis are summarized below:

	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
	(in thousands)
Financial instruments carried at fair value, classified as a part of:
Other investments	$	—	$	—	$	11,228	$	11,228
Securities available for sale—equity:
Domestic common stock		3,598		—		—		3,598
Securities available for sale—fixed maturity:
States and political subdivisions		—		156,789		—		156,789
Corporate bonds		—		152,670		—		152,670
U.S. agency-based mortgage-backed securities		—		7,819		—		7,819
Total securities available for sale—fixed maturity		—		317,278		—		317,278
Total available for sale	$	3,598	$	317,278	$	11,228	$	332,104

At December 31, 2013, assets and liabilities measured at fair value on a recurring basis are summarized below:

	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
	(in thousands)
Financial instruments carried at fair value, classified as part of:
Other investments	$	—	$	—	$	10,591	$	10,591
Securities available for sale—equity
Domestic common stock		9,302		—		—		9,302
Securities available for sale—fixed maturity
States and political subdivisions		—		150,375		—		150,375
Corporate bonds		—		80,428		—		80,428
U.S. agency-based mortgage-backed securities		—		7,074		—		7,074
Total available for sale—fixed maturity		—	$	237,877	$	—	$	237,877
Total available for sale	$	9,302	$	237,877	$	10,591	$	257,770

Schedule of Assets and Liabilities Measured at Amortized Cost

At September 30, 2014, assets and liabilities measured at amortized cost are summarized below:

	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
	(in thousands)
Securities held-to-maturity—fixed maturity
States and political subdivisions	$	—	$	395,927	$	—	$	395,927
Corporate bonds		—		145,273		—		145,273
Commercial mortgage-backed securities		—		50,028		—		50,028
U.S. agency-based mortgage-backed securities		—		19,747		—		19,747
U.S. Treasury securities		11,718		—		—		11,718
Asset-backed securities		—		3,090		—		3,090
Total held-to-maturity	$	11,718	$	614,065	$	—	$	625,783

At December 31, 2013, assets and liabilities measured at amortized cost are summarized below:

	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
	(in thousands)
Securities held-to-maturity—fixed maturity
States and political subdivisions	$	—	$	399,155	$	—	$	399,155
Corporate bonds		—		68,243		—		68,243
Commercial mortgage-backed securities		—		54,244		—		54,244
U.S. agency-based mortgage-backed securities		—		23,565		—		23,565
U.S. Treasury securities		6,602		—		—		6,602
Obligations of U.S. Government agencies		—		5,914		—		5,914
Asset-backed securities		—		3,456		—		3,456
Total held-to-maturity	$	6,602	$	554,577	$	—	$	561,179

Summary of Carrying Values and Corresponding Fair Values for Financial Instruments

The following table summarizes the carrying values and corresponding fair values for financial instruments:

	As of September 30, 2014				As of December 31, 2013
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
	(in thousands)
Assets:
Fixed maturity securities—held-to-maturity	$	599,087	$	625,783	$	536,583	$	561,179
Fixed maturity securities—available-for-sale		317,278		317,278		237,877		237,877
Equity securities		3,598		3,598		9,302		9,302
Cash and cash equivalents		118,544		118,544		123,077		123,077
Short-term investments		42,411		42,411		84,422		84,422
Other investments		11,228		11,228		10,591		10,591

Summary of Changes in Fair Value of Assets Measured at Fair value

The following table presents summary information regarding changes in the fair value of assets measured at fair value using Level 3 input.

	September 30, 2014		December 31, 2013
	(in thousands)
Beginning balance	$	10,591	$	—
Purchases		—		10,000
Total unrealized gains		637		591
Ending balance	$	11,228	$	10,591

XML

Investments - Gross Unrealized Gains and Losses and Cost or Amortized Cost and Fair Value of Investments Classified as Available-for-Sale (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Investment [Line Items]
Available-for-Sale, Cost or Amortized Cost	$ 327,753	$ 263,891
Available-for-Sale, Gross Unrealized Gains	8,445	2,914
Available-for-Sale, Gross Unrealized Losses	(4,094)	(9,035)
Available-for-Sale, Fair Value	332,104	257,770
Total fixed maturity [Member]
Investment [Line Items]
Available-for-Sale, Cost or Amortized Cost	314,307	244,409
Available-for-Sale, Gross Unrealized Gains	6,973	1,936
Available-for-Sale, Gross Unrealized Losses	(4,002)	(8,468)
Available-for-Sale, Fair Value	317,278	237,877
Other investments [Member]
Investment [Line Items]
Available-for-Sale, Cost or Amortized Cost	10,000	10,000
Available-for-Sale, Gross Unrealized Gains	1,228	591
Available-for-Sale, Fair Value	11,228	10,591
States and Political Subdivisions [Member]
Investment [Line Items]
Available-for-Sale, Cost or Amortized Cost	151,839	154,024
Available-for-Sale, Gross Unrealized Gains	6,549	1,491
Available-for-Sale, Gross Unrealized Losses	(1,599)	(5,140)
Available-for-Sale, Fair Value	156,789	150,375
Corporate Bonds [Member]
Investment [Line Items]
Available-for-Sale, Cost or Amortized Cost	152,560	80,344
Available-for-Sale, Gross Unrealized Gains	424	445
Available-for-Sale, Gross Unrealized Losses	(314)	(361)
Available-for-Sale, Fair Value	152,670	80,428
U.S. Agency-Based Mortgage-Backed Securities [Member]
Investment [Line Items]
Available-for-Sale, Cost or Amortized Cost	9,908	10,041
Available-for-Sale, Gross Unrealized Losses	(2,089)	(2,967)
Available-for-Sale, Fair Value	7,819	7,074
Equity securities [Member]
Investment [Line Items]
Available-for-Sale, Cost or Amortized Cost	3,446	9,482
Available-for-Sale, Gross Unrealized Gains	244	387
Available-for-Sale, Gross Unrealized Losses	(92)	(567)
Available-for-Sale, Fair Value	$ 3,598	$ 9,302

XML

Condensed Consolidated Statements of Comprehensive Income (Unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Statement of Comprehensive Income [Abstract]
Net income	$ 13,479	$ 9,699	$ 36,801	$ 26,194
Other comprehensive income:
Unrealized gain/(loss) on securities, net of tax	117	(1,045)	6,373	(5,650)
Comprehensive income	$ 13,596	$ 8,654	$ 43,174	$ 20,544

XML

Earnings Per Share

9 Months Ended

Sep. 30, 2014

Earnings Per Share [Abstract]

Earnings Per Share

Note 3. Earnings Per Share

The Company computes earnings per share (“EPS”) in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 260, Earnings Per Share. Additionally, during 2013, the Company applied the “two-class method” in computing basic and diluted earnings per share as a result of the participating unvested common shares which contained nonforfeitable rights to dividends during this period. As of January 1, 2014, the Company no longer has participating unvested common shares which contain nonforfeitable rights to dividends and now applies the treasury stock method in computing basic and diluted earnings per share.

Under the two-class method, net income available to common and participating common shareholders is reduced by the amount of dividends declared in the current period and by the contractual amount of dividends that must be paid for the current period related to the Company’s common and participating common shares. Participating common shares include unvested share-based payment awards that contain nonforfeitable rights to dividends, whether paid or unpaid. Any remaining undistributed earnings are allocated to the common and participating common shareholders to the extent that each security shares in earnings as if all of the earnings for the period had been distributed. The amount of earnings allocable to each security is divided by the number of outstanding shares of the security to which the earnings are allocated to determine the EPS for the security. In a period of loss, no losses are allocated to the participating common shareholders. Instead, all such losses are allocated to the common shareholders.

Basic EPS is calculated by dividing income available to common shareholders 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, and includes the “if converted” method for participating securities if the effect is dilutive. For 2013, we determined diluted EPS as the more dilutive result of either the treasury method or the two-class method.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
	(in thousands, except share and per share amounts)
Basic EPS:
Net income, as reported	$	13,479	$	9,699	$	36,801	$	26,194
Less allocated income to unvested shares		—		27		—		74
Net income available to common shareholders—basic	$	13,479	$	9,672	$	36,801	$	26,120
Basic weighted average common shares		18,676,033		18,395,971		18,603,227		18,343,901
Basic earnings per common share	$	0.72	$	0.53	$	1.98	$	1.42
Diluted EPS:
Net income available to common shareholders—diluted	$	13,479	$	9,673	$	36,801	$	26,122
Diluted weighted average common shares:
Weighted average common shares		18,676,033		18,395,971		18,603,227		18,343,901
Stock options and performance shares		253,744		362,375		302,653		386,828
Diluted weighted average common shares		18,929,777		18,758,346		18,905,880		18,730,729
Diluted earnings per common share	$	0.71	$	0.52	$	1.95	$	1.39

XML

Investments - Summary of Amortized Cost and Fair Value of Investments in Fixed Maturity Securities, Classified as Held-to-Maturity (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Investment [Line Items]
Within one year, Amortized Cost	$ 130,685
After one year through five years, Amortized Cost	328,360
After five years through ten years, Amortized Cost	70,889
After ten years, Amortized Cost	536
Held-to-Maturity, Amortized Cost	599,087	536,583
Within one year, Fair Value	132,090
After one year through five years, Fair Value	343,614
After five years through ten years, Fair Value	76,599
After ten years, Fair Value	615
Total, Fair Value	625,783	561,179
U.S. Agency-Based Mortgage-Backed Securities [Member]
Investment [Line Items]
Held-to-maturity, Amortized Cost	18,012
Held-to-maturity, Fair Value	19,747
Commercial Mortgage-Backed Securities [Member]
Investment [Line Items]
Held-to-maturity, Amortized Cost	47,657
Held-to-maturity, Fair Value	50,028
Asset-Backed Securities [Member]
Investment [Line Items]
Held-to-maturity, Amortized Cost	2,948
Held-to-maturity, Fair Value	$ 3,090

XML

Fair Value Measurements - Summary of Changes in Fair Value of Assets Measured at Fair Value (Detail) (Fair Value, Inputs, Level 3 [Member], USD $) In Thousands, unless otherwise specified	9 Months Ended	12 Months Ended
	Sep. 30, 2014	Dec. 31, 2013
Fair Value, Inputs, Level 3 [Member]
Fair Value Measurements Disclosure [Line Items]
Beginning balance	$ 10,591
Purchases		10,000
Total unrealized gains	637	591
Ending balance	$ 11,228	$ 10,591

XML

Comprehensive Income and Accumulated Other Comprehensive Income (Tables)

9 Months Ended

Sep. 30, 2014

Equity [Abstract]

Schedule of Changes in Accumulated Other Comprehensive Income (AOCI)

The following table illustrates the changes in the balance of each component of accumulated other comprehensive income for each period presented in the interim financial statements.

	Three Months Ended September 30,						Nine Months Ended September 30,
	2014			2013			2014			2013
	(in thousands)
Beginning balance	$	1,961		$	(1,626	)	$	(4,295	)	$	2,979
Other comprehensive income/(loss) before reclassification		121			(1,483	)		6,192			(5,809	)
Amounts reclassified from accumulated other comprehensive income		(4	)		438			181			159
Net current period other comprehensive income/(loss)		117			(1,045	)		6,373			(5,650	)
Ending balance	$	2,078		$	(2,671	)	$	2,078		$	(2,671	)

Reclassification Out of Accumulated Other Comprehensive Income

The effects of reclassifications out of accumulated other comprehensive income by the respective line items of net income are presented in the following table.

Component of Accumulated Other Comprehensive Income	Three Months Ended September 30,						Nine Months Ended September 30,						Affected line item in the statement of income
	2014			2013			2014			2013
	(in thousands)
Unrealized gains/(losses) on available-for-sale securities	$	1		$	(484	)	$	(270	)	$	362		Net realized gains on investments
Other-than-temporary impairment		5			(190	)		(8	)		(607	)	Net realized gains on investments
		6			(674	)		(278	)		(245	)	Income before income taxes
		(2	)		236			97			86		Income tax expense
	$	4		$	(438	)	$	(181	)	$	(159	)	Net income