Amerisafe, Inc. (AMSF)

Given the critical sustainability factor in the current sluggish economic recovery, we have downgraded <b>Amerisafe Inc.</b> (<a href=http://www.zacks.com/stock/quote/amsf>AMSF</a>) to Underperform. The company&#39;s fourth quarter earnings were substantially lower than the Zacks Consensus Estimate. <p> The downside was primarily a result of a year-over-year decrease in the top line due to the soft insurance market as a whole and an increase in expenses. Also, the combined ratio and operating ROE significantly deteriorated from the year-ago quarter. <p> Though the pricing environment is now improving somewhat, the company is expected to face an uncertainty for the next few quarters as the market weakness continues to hurt payrolls.

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