Amerisafe, Inc. (AMSF)

Amerisafe, Inc. (AMSF) is expected to release its 4Q08 financial results between February 23 and March 5, 2009. The company reported impressive 3Q08 results with a 12.5% increase in diluted earnings per share allocable to common shareholders.

During 3Q08, net loss ratio, combined ratio, and book value per share showed decent improvement over the prior as well as the prior-year quarters. Though the soft insurance market environment is expected to keep gross written premiums under pressure due to lower premium rates, we anticipate the results to benefit from AMSF's sound capital position, solid investment portfolio, and strong financial strength rating by A.M. Best.

Ahead of 4Q08 earnings release, we are maintaining our Buy rating on the shares with a six-month target price of $22.00 per share.