AMERISAFE INC Commitments Disclosure
The Company is a party to various legal actions arising principally from claims made under insurance policies and contracts. Those actions are considered by the Company in estimating reserves for loss and loss adjustment expenses. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Company’s consolidated financial position or results of operations.
The Company provides workers’ compensation insurance in several states that maintain second-injury funds. Incurred losses on qualifying claims that exceed certain amounts may be recovered from these state funds. There is no assurance that the applicable states will continue to provide funding under these programs.
The Company manages risk on certain long-duration claims by settling these claims through the purchase of annuities from unaffiliated carriers. In the event these carriers are unable to meet their obligations under these contracts, the Company could be liable to the claimants. The following table summarizes the fair value of the annuities at December 31, 2025, that the Company has purchased to satisfy its obligations.
Life Insurance Company |
|
A.M. Best |
|
Statement Value |
|
|
|
|
|
|
(in thousands) |
|
|
Pacific Life Insurance Company |
|
A+ |
|
$ |
21,812 |
|
Metropolitan Tower Life Insurance Company |
|
A+ |
|
|
18,185 |
|
American General Life Insurance Company |
|
A |
|
|
11,983 |
|
United of Omaha Life Insurance Company |
|
A+ |
|
|
10,098 |
|
New York Life Insurance Company |
|
A++ |
|
|
8,747 |
|
Brighthouse Financial Life Insurance Company |
|
A |
|
|
8,446 |
|
Berkshire Hathaway Life Insurance Company of Nebraska |
|
A++ |
|
|
6,887 |
|
John Hancock Life Insurance Company |
|
A+ |
|
|
5,074 |
|
Athene Annuity and Life Company |
|
A+ |
|
|
3,145 |
|
Wilton Reassurance Company |
|
A+ |
|
|
2,740 |
|
Protective Life Insurance Company |
|
A+ |
|
|
2,696 |
|
Other |
|
|
|
|
5,847 |
|
|
|
|
|
$ |
105,660 |
|
Substantially all of the annuities are issued or guaranteed by life insurance companies that have an A.M. Best Company rating of “A” (Excellent) or better.
The Company has operating and finance leases for office space and equipment. Our leases have remaining lease terms of two months to 60 months, some of which include options to the leases for up to five years.
The components of lease expense were as follows:
|
|
Year Ended December 31, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
|
|
(in thousands) |
|
|||||
Operating lease cost |
|
$ |
106 |
|
|
$ |
101 |
|
Finance lease cost: |
|
|
|
|
|
|
||
Amortization of right-of-use assets |
|
|
415 |
|
|
|
398 |
|
Interest on lease liabilities |
|
|
9 |
|
|
|
11 |
|
Total finance lease cost |
|
$ |
424 |
|
|
$ |
409 |
|
Supplemental cash flow information related to leases was as follows:
|
|
Year Ended December 31, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
|
|
(in thousands) |
|
|||||
Cash paid for amounts included in the measurement of lease liabilities: |
|
|
|
|
|
|
||
Operating cash flows from operating leases |
|
$ |
(64 |
) |
|
$ |
247 |
|
Operating cash flows from finance leases |
|
|
9 |
|
|
|
11 |
|
Financing cash flows from finance leases |
|
|
85 |
|
|
|
85 |
|
Right-of-use assets obtained in the exchange for the lease obligations were as follows:
|
|
December 31, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
|
|
(in thousands) |
|
|||||
Operating leases |
|
$ |
21 |
|
|
$ |
325 |
|
Finance leases |
|
|
212 |
|
|
|
— |
|
Supplemental balance sheet information related to leases was as follows:
|
|
December 31, 2025 |
|
|
December 31, 2024 |
|
|
Balance Sheet Classification |
||
|
|
(in thousands) |
|
|
|
|||||
Operating leases: |
|
|
|
|
|
|
|
|
||
Operating lease right-of-use assets |
|
$ |
212 |
|
|
$ |
276 |
|
|
|
|
|
|
|
|
|
|
|
|
||
Operating lease liabilities |
|
$ |
212 |
|
|
$ |
276 |
|
|
|
|
|
|
|
|
|
|
|
|
||
Finance leases: |
|
|
|
|
|
|
|
|
||
Finance lease right-of-use assets |
|
$ |
656 |
|
|
$ |
462 |
|
|
|
Finance lease accumulated amortization |
|
|
(415 |
) |
|
|
(398 |
) |
|
|
Property and equipment, net |
|
$ |
241 |
|
|
$ |
64 |
|
|
|
|
|
|
|
|
|
|
|
|
||
Finance lease liabilities |
|
$ |
279 |
|
|
$ |
152 |
|
|
|
|
|
December 31, |
||||||||
|
|
2025 |
|
2024 |
||||||
Weighted average remaining lease term: |
|
|
|
|
|
|
|
|
||
Operating leases |
|
|
2.9 |
|
years |
|
|
3.8 |
|
years |
Finance leases |
|
|
4.2 |
|
years |
|
|
2.1 |
|
years |
Weighted average discount rate: |
|
|
|
|
|
|
|
|
||
Operating leases |
|
|
8.46 |
% |
|
|
|
8.45 |
% |
|
Finance leases |
|
|
6.92 |
% |
|
|
|
5.89 |
% |
|
The following is a maturity analysis of the annual undiscounted cash flows of the operating and finance lease liabilities as of December 31, 2025:
|
|
Operating Leases |
|
|
Finance Leases |
|
||
|
|
(in thousands) |
|
|||||
2026 |
|
$ |
86 |
|
|
$ |
100 |
|
2027 |
|
|
73 |
|
|
|
72 |
|
2028 |
|
|
75 |
|
|
|
50 |
|
2029 |
|
|
6 |
|
|
|
50 |
|
2030 |
|
|
— |
|
|
|
50 |
|
Total lease payments |
|
|
240 |
|
|
|
322 |
|
Less imputed interest |
|
|
28 |
|
|
|
43 |
|
Total |
|
$ |
212 |
|
|
$ |
279 |
|
Rental expense was $0.1 million in each of 2025, 2024, and 2023.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 23, 2024 | |
| 2022 | Feb 21, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Feb 26, 2021 | |
| 2019 | Feb 25, 2020 | |
| 2018 | Feb 28, 2019 | |
| 2017 | Feb 28, 2018 | |
| 2016 | Feb 24, 2017 | |
| 2015 | Feb 26, 2016 | |
About Commitments Disclosures
Commitments and contingencies disclosures catalog a company's off-balance-sheet obligations and legal exposures — purchase commitments, guarantee arrangements, pending litigation, and regulatory proceedings. These items represent potential future cash outflows that may not appear as liabilities on the balance sheet until they become probable and estimable.
Key signals: litigation reserves and disclosed loss ranges quantify management's estimate of legal exposure, but unquantified "reasonably possible" losses often represent the larger risk. Watch for changes in language around pending cases — shifts from "remote" to "reasonably possible" or increases in estimated loss ranges signal deteriorating outcomes. Unconditional purchase obligations and take-or-pay contracts create fixed cost structures that reduce operational flexibility. Guarantee arrangements for subsidiaries or joint ventures can create cascading obligations. Compare the total commitment schedule against projected free cash flow to assess whether the company can meet its obligations without additional financing.