What the changes say
- Concentration in single line workers compensation insurance increases vulnerability to industry developments.
- Premium dependence on high risk sectors rose from 85.4% to 89.6%.
- Reinsurance recoverables shifted from $117.0 million to $108.1 million.
What changed since the prior 10-K
New
- NewStrategic and Operational Risks
We operate in a highly competitive industry, only offer a single line of insurance and our competitors may have greater financial resources than we do, each of which may affect our ability to compete effectively
Offering only workers compensation insurance leaves the company vulnerable to larger, more diversified competitors with greater financial and marketing resources.
- NewStrategic and Operational Risks
significantly larger and may possess greater financial, marketing and management resources than we do. Moreover, a number of these competitors offer other types of insurance in addition to workers’ compensation and can provide insurance nationwide
Operating exclusively in workers compensation means any negative economic, competitive, or regulatory shift will disproportionately impact financial results.
- NewRisks Related to Regulation and Litigation
cybersecurity, privacy and artificial intelligence laws and regulations
Compliance with evolving cybersecurity, privacy, and artificial intelligence laws and regulations could increase costs and limit operations.
Dropped
- DroppedRisks Related to Our Business
We operate in a highly competitive industry and may lack the financial resources to compete effectively
- DroppedRisks Related to Our Business
Changes in accounting standards or new standards, as well as assumptions, estimates and judgments by management related to complex accounting issues could have a material adverse effect on our capital levels and our results of operations
Competition in the workers compensation industry from larger, better resourced firms.
- DroppedRisks Related to Regulation and Litigation
potential assessments for state guaranty funds, second injury funds and other mandatory pooling arrangements
- DroppedRisks Related to Our Common Stock
our board of directors may authorize the issuance of preferred stock with such rights, preferences and privileges as our board of directors deems appropriate
- DroppedRisks Related to Our Common Stock
Economic conditions could adversely affect our financial condition and results of operations
Reworded
- 70% rewrittenRisks Related to Our Common Stock
Provisions of our certificate of formation and bylaws and the laws of the states of Texas and Nebraska could impede an attempt to replace or remove our directors or otherwise effect a change of control of our Company, which could diminish the value of our common stock
Added Texas state law context, director removal restrictions requiring a 66 2/3% supermajority vote, and updated corporate document references.
Was: Provisions of our articles of incorporation and bylaws and the laws of the states of Texas and Nebraska could impede an attempt to replace or remove our directors or otherwise effect a change of control of our Company, which could diminish the value of our common stock
- 59% rewrittenStrategic and Operational Risks
The workers’ compensation insurance industry is cyclical in nature, which may affect our overall financial performance
Expanded industry cyclicality drivers to include medical cost increases, natural and man-made disasters, interest rates, and state laws.
- 58% rewrittenRisks Related to Regulation and Litigation
We may have exposure to losses from terrorism for which we are required by law to provide coverage
Updated the reinsurance treaty program reference from 2025 to 2026 for the $100.0 million terrorism coverage.
- 58% rewrittenFinancial Risks
A decline in the level of business activity of our policyholders, particularly those engaged in the construction, trucking, logging and lumber, agriculture, services, manufacturing, and maritime industries, could negatively affect our earnings and profitability
Increased the gross premiums derived from target industries from 85.4% in 2024 to 89.6% in 2025, adding services and immigration rules as factors.
Was: A decline in the level of business activity of our policyholders, particularly those engaged in the construction, trucking, logging and lumber, agriculture, manufacturing, maritime, and telecommunications industries, could negatively affect our earnings and profitability
- 53% rewrittenRisks Related to Our Reinsurers
We may not be able to recover amounts due from our reinsurers, which would adversely affect our financial condition
Updated reinsurance recoverables figures as of December 31, 2025, showing $108.1 million total and $44.2 million unsecured.
- 38% rewrittenFinancial Risks
We may require additional capital in the future, which may not be available to us or may be available only on unfavorable terms
Added business strategy and expansion initiatives as factors influencing future capital requirements and financing terms.
- 35% rewrittenRisks Related to Regulation and Litigation
Legal or other administrative proceedings could have a material adverse effect on our operations or results of operations
Added language stating the outcome of legal proceedings is inherently uncertain.
- 34% rewrittenRisks Related to Regulation and Litigation
We are subject to extensive state and federal regulations, and legislation, and any changes in such regulations or laws may negatively impact our business
Refined language regarding state insurance department licensing and federal government oversight.
Was: Because we are subject to extensive state and federal regulation, legislative changes may negatively impact our business
- 33% rewrittenRisks Related to Our Reinsurers
If we are unable to obtain reinsurance on favorable terms, our ability to write policies could be adversely affected
- 28% rewrittenStrategic and Operational Risks
The effects of emerging claims and coverage issues on our business are uncertain
- 27% rewrittenStrategic and Operational Risks
A downgrade in our A.M. Best rating would likely reduce the amount of business we are able to write
- 27% rewrittenFinancial Risks
If we are unable to realize our investment objectives, our financial condition and results of operations may be adversely affected
- 26% rewrittenRisks Related to Our Common Stock
Our revenues and results of operations may fluctuate as a result of factors beyond our control, which may cause the price of our common stock to be volatile
Was: Our revenues and results of operations may fluctuate as a result of factors beyond our control, which fluctuation may cause the price of our common stock to be volatile
- 24% rewrittenRisks Related to Our Common Stock
The trading price of our common stock may decline
- 24% rewrittenFinancial Risks
As an insurance holding company, we are dependent on the results of operations of our insurance subsidiaries, and our ability to pay dividends and repurchase shares depends on the regulatory and financial capacity of our subsidiaries to pay dividends to us
- 23% rewrittenRisks Related to Our Common Stock
Future sales of our common stock may affect the trading price of our common stock
- 22% rewrittenRisks Related to Our Common Stock
We are incorporated in Texas. Under the Texas Business Organizations Code (TBOC), our ability to enter into a business combination (as defined in the TBOC) with an affiliated shareholder (as defined in the TBOC) is limited
Was: We are incorporated in Texas. Under the Texas Business Organizations Code, our ability to enter into a business combination with an affiliated shareholder is limited
- 21% rewrittenFinancial Risks
project both frequency and severity of losses with reasonable accuracy
All 33 risk factors
Headings as the filing states them, in filing order.
Financial Risks
- 01If we do not appropriately establish our premium rates, our results of operations will be adversely affected
- 02project both frequency and severity of losses with reasonable accuracy21% rewritten
- 03unanticipated court decisions, legislation or regulatory action
- 04If we are unable to realize our investment objectives, our financial condition and results of operations may be adversely affected27% rewritten
- 05A decline in the level of business activity of our policyholders, particularly those engaged in the construction, trucking, logging and lumber, agriculture, services, manufacturing, and maritime industries, could negatively affect our earnings and profitability58% rewritten
- 06Our loss reserves are based on estimates and may be inadequate to cover our actual losses
- 07As an insurance holding company, we are dependent on the results of operations of our insurance subsidiaries, and our ability to pay dividends and repurchase shares depends on the regulatory and financial capacity of our subsidiaries to pay dividends to us24% rewritten
- 08We may require additional capital in the future, which may not be available to us or may be available only on unfavorable terms38% rewritten
Strategic and Operational Risks
- 09The workers’ compensation insurance industry is cyclical in nature, which may affect our overall financial performance59% rewritten
- 10We operate in a highly competitive industry, only offer a single line of insurance and our competitors may have greater financial resources than we do, each of which may affect our ability to compete effectivelyNew
- 11significantly larger and may possess greater financial, marketing and management resources than we do. Moreover, a number of these competitors offer other types of insurance in addition to workers’ compensation and can provide insurance nationwideNew
- 12If we cannot sustain our relationships with independent agencies, we may be unable to operate profitably
- 13The effects of emerging claims and coverage issues on our business are uncertain28% rewritten
- 14A downgrade in our A.M. Best rating would likely reduce the amount of business we are able to write27% rewritten
- 15Technology breaches or failures, including those resulting from a malicious cyber attack on us, our policyholders, or service providers, could disrupt or otherwise negatively impact our business
- 16The expertise, wellbeing and resiliency of our workforce is necessary to maintain our competitive advantages in the high hazard workers’ compensation industry
- 17Our business is dependent on our executive officers because of their industry expertise, knowledge of our markets and relationships with the independent agencies that sell our insurance
- 18An inability to effectively manage our operations could make it difficult for us to compete and could affect our ability to operate profitably
Risks Related to Regulation and Litigation
- 19We are subject to extensive state and federal regulations, and legislation, and any changes in such regulations or laws may negatively impact our business34% rewritten
- 20cybersecurity, privacy and artificial intelligence laws and regulationsNew
- 21Assessments and premium surcharges for state guaranty funds, second injury funds and other mandatory pooling arrangements may reduce our profitability
- 22Legal or other administrative proceedings could have a material adverse effect on our operations or results of operations35% rewritten
- 23We may have exposure to losses from terrorism for which we are required by law to provide coverage58% rewritten
Risks Related to Our Reinsurers
- 24If we are unable to obtain reinsurance on favorable terms, our ability to write policies could be adversely affected33% rewritten
- 25A downgrade in the A.M. Best rating of one or more of our significant reinsurers could adversely affect our financial condition
- 26If any of our current reinsurers were to terminate participation in our reinsurance treaty program, we could be exposed to an increased risk of loss
- 27We may not be able to recover amounts due from our reinsurers, which would adversely affect our financial condition53% rewritten
Risks Related to Our Common Stock
- 28Our revenues and results of operations may fluctuate as a result of factors beyond our control, which may cause the price of our common stock to be volatile26% rewritten
- 29Provisions of our certificate of formation and bylaws and the laws of the states of Texas and Nebraska could impede an attempt to replace or remove our directors or otherwise effect a change of control of our Company, which could diminish the value of our common stock70% rewritten
- 30We are incorporated in Texas. Under the Texas Business Organizations Code (TBOC), our ability to enter into a business combination (as defined in the TBOC) with an affiliated shareholder (as defined in the TBOC) is limited22% rewritten
- 31The trading price of our common stock may decline24% rewritten
- 32Securities analysts may discontinue coverage of our common stock or may issue negative reports about us, which may adversely affect the trading price of our common stock
- 33Future sales of our common stock may affect the trading price of our common stock23% rewritten
Other Amerisafe 10-Ks
- FY2024 10-K risk factors35 risks
Workers compensation insurer AMERISAFE faces risks centered on loss reserve adequacy, cyclical industry pricing, and macroeconomic impacts on hazard-heavy policyholder industries.
Filed Feb 28, 2025
About this page
The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.