 Reports Combined Ratio of 78.5DERIDDER, La., July 30, 2020 GLOBE NEWSWIRE -- AMERISAFE, Inc. Nasdaq: AMSF, a specialty provider of workers compensation insurance focused on high hazard industries, today announced results for the second quarter ended June 30, 2020. Three Months Ended Six Months Ended June 30, June 30, 2020 2019 Change 2020 2019 Change in thousands, except per share data in thousands, except per share data Net premiums earned75,964 82,951 -8.4 154,954 167,899 -7.7 Net investment income 7,324 8,169 -10.3 15,073 16,184 -6.9 Net realized gains losses on investments pretax 163 82 NM 1,155 23 NM Net unrealized gains losses on equity securities pre-tax 5,570 642 NM 3,193 2,800 NM Net income 23,948 17,890 33.9 34,748 37,290 -6.8 Diluted earnings per share.1.24 0.93 33.3 1.80 1.93 -6.7 Operating net income 19,419 17,448 11.3 36,358 35,096 3.6 Operating earnings per share1.00 0.90 11.1 1.88 1.82 3.3 Book value per share23.94 23.29 2.8 23.94 23.29 2.8 Net combined ratio 78.5 83.9 81.1 84.0 Return on average equity 21.3 16.3 15.6 17.4 G. Janelle Frost, President and Chief Executive Officer, observed, AMERISAFEs fundamentals are crucial in these unprecedented times. We are serving our stakeholders with disciplined underwriting, proactive safety and intensive claims management, which produce consistent returns, quality insurance services and financial stability. This quarter those fundamentals led to favorable prior year case development and a combined ratio of 78.5. Over time, those fundamentals have led to twelve consecutive years as one of Wards Top 50 PC companies. We are honored by the recognition and encouraged to continue seeking excellence for our stakeholders. INSURANCE RESULTS Three Months Ended Six Months Ended June 30, June 30, 2020 2019 Change 2020 2019 Change in thousands in thousands Gross premiums written80,289 87,018 -7.7 167,360 180,125 -7.1 Net premiums earned 75,964 82,951 -8.4 154,954 167,899 -7.7 Loss and loss adjustment expenses incurred 37,530 48,868 -23.2 81,177 98,482 -17.6 Underwriting and certain other operating costs, commissions, salaries and benefits 21,131 19,718 7.2 42,415 40,385 5.0 Policyholder dividends 948 998 -5.0 1,971 2,098 -6.1 Underwriting profit pre-tax.16,273 13,367 21.7 29,335 26,934 8.9 Insurance Ratios: Current accident year loss ratio 72.5 72.5 72.5 72.5 Prior accident year loss ratio -23.1 -13.6 -20.1 -13.8 Net loss ratio 49.4 58.9 52.4 58.7 Net underwriting expense ratio 27.8 23.8 27.4 24.1 Net dividend ratio 1.3 1.2 1.3 1.2 Net combined ratio 78.5 83.9 81.1 84.0 Gross premiums written in the second quarter of 2020 decreased by 6.7 million, or 7.7, primarily due to lower voluntary premiums on policies written in the quarter which were 6.4 lower as compared to the second quarter of 2019. Payroll audits and related premium adjustments increased premiums written by 0.5 million in the second quarter of 2020, compared to an increase in premiums written of 1.8 million in the second quarter of 2019. The amount this quarter included a 1.4 million reduction in anticipated future audit premiums. The current accident year loss ratio for the second quarter was 72.5, unchanged from the first quarter of 2020, and unchanged from accident year 2019. During the quarter, the Company experienced favorable case reserve development for prior accident years, which reduced loss and loss adjustment expenses by 17.5 million, attributed primarily to accident years 2015 through 2018. For the quarter ended June 30, 2020, the underwriting expense ratio was 27.8 compared with 23.8 in the same quarter in 2019. The increase in the expense ratio was due to lower earned premium and higher expenses. Last years second quarter included 1.0 million in favorable lower estimates of variable share price based incentive compensation costs and 0.6 million in favorable lower insurance assessment costs. The effective tax rate for the quarter ended June 30, 2020 was 18.5, compared with 19.3 for the second quarter of 2019. The decrease is due to a higher level of tax-exempt interest income in 2020 compared to 2019. INVESTMENT RESULTS Three Months Ended Six Months Ended June 30, June 30, 2020 2019 Change 2020 2019 Change in thousands in thousands Net investment income7,324 8,169 -10.3 15,073 16,184 -6.9 Net realized gains losses on investments pre-tax 163 82 NM 1,155 23 NM Net unrealized gains losses on equity securities pre-tax 5,570 642 NM 3,193 2,800 NM Pre-tax investment yield 2.5 2.7 2.5 2.7 Tax-equivalent yield 1 2.9 3.1 2.9 3.1 ___ 1 The tax equivalent yield is calculated using the effective interest rate and the appropriate marginal tax rate. Net investment income for the quarter ended June 30, 2020, decreased 10.3 to 7.3 million from 8.2 million in the second quarter of 2019, due to lower investment yields on fixed-income securities. Net unrealized gains on equity investments were 5.6 million during the second quarter of 2020, which increased overall net income by 0.23 per share. As of June 30, 2020, the carrying value of AMERISAFEs investment portfolio, including cash and cash equivalents, was 1.2 billion. CAPITAL MANAGEMENT The Company paid a regular quarterly cash dividend of 0.27 per share on June 26, 2020. On July 27, 2020 the Companys Board of Directors declared a quarterly cash dividend of 0.27 per share, payable on September 25, 2020 to shareholders of record as of September 11, 2020.Book value per share at June 30, 2020 was 23.94, an increase of 7.4 from 22.29 at December 31, 2019.CORONAVIRUS COVID-19 UPDATEDuring the second quarter, AMERISAFE began gradually returning employees to our offices, with protocols in place to protect the health and safety of our employees. Many employees also continue to work from home, assisting agents and policyholders with their workers compensation insurance. AMERISAFE has also begun returning our Safety and Claims professionals to the field, where these professionals inspect job sites and meet with injured workers, all following health and safety guidelines. Additionally, the Company continues to work with customers utilizing virtual meeting tools along with access via phone, email and through our website. At this point and time, the Company is conducting business with no disruption to operations.AMERISAFE policyholders are small to mid-sized employers engaged in hazardous industries, principally construction 44, trucking 18, logging and lumber 8, manufacturing 5, agriculture 5, maritime 2, and oil and gas 2 with the remainder 16 in a wide variety of hazardous industries based on 2019 premiums. There continues to be uncertainty about the impact to our policyholders from COVID-19 and our customers business operations, including payrolls, which is a primary source of premium revenue for AMERISAFE. In most industries and states, business continues, and in some cases the activities of our policyholders have been restricted due to the pandemic and associated recession.Premiums in future periods will depend on the ongoing economic impact of COVID-19. Investment income may decline, and the market value of investment securities may decrease, depending on the ongoing economic impact. SUPPLEMENTAL INFORMATION Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 in thousands, except share and per share data Net income. 23,948 17,890 34,748 37,290 Less: Net realized gains losses on investments. 163 82 1,155 23 Net unrealized gains losses on equity securities 5,570 642 3,193 2,800 Tax effect 1 1,204 118 428 583 Operating net income 2 19,419 17,448 36,358 35,096 Average shareholders equity 3 . 449,876 439,924 446,506 429,603 Less: Average accumulated other comprehensive income 16,437 7,551 15,695 4,654 Average adjusted shareholders equity 2 433,439 432,373 430,811 424,949 Diluted weighted average common shares 19,335,707 19,306,953 19,335,748 19,316,276 Return on average equity 4 21.3 16.3 15.6 17.4 Operating return on average adjusted equity 2 17.9 16.1 16.9 16.5 Diluted earnings per share . 1.24 0.93 1.80 1.93 Operating earnings per share 2 . 1.00 0.90 1.88 1.82 ___ 1 The tax effect of net realized losses on investments and net unrealized gains losses on equity securities is calculated with an effective tax rate of 21. 2 Operating net income, operating return on average adjusted equity and operating earnings per share are non-GAAP financial measures. Management believes that investors understanding of core operating performance is enhanced by AMERISAFEs disclosure of these financial measures. 3 Average shareholders equity is calculated by taking the average of the beginning and ending shareholders equity. 