Schedule II. Condensed Financial Information of Registrant

12 Months Ended

Dec. 31, 2018

AMERISAFE, INC.

CONDENSED BALANCE SHEETS

	December 31,
	2018		2017
	(in thousands)
Assets
Investments:
Equity securities, at fair value (cost $10,007 and $8,503 in 2018 and 2017, respectively)	$	9,803	$	9,248
Short-term investments		—		7,962
Investment in subsidiaries		388,797		386,844
Total investments		398,600		404,054
Cash and cash equivalents		5,509		16,351
Deferred income taxes		509		302
Notes receivable from subsidiaries		3,270		1,711
Property and equipment, net		1,536		1,359
Federal income tax recoverable		2,995		—
Other assets		800		4,412
	$	413,219	$	428,189
Liabilities, redeemable preferred stock and shareholders’ equity
Total liabilities		3,457		2,766
Shareholders' equity (net of Treasury stock of $22,370 at December 31, 2018 and 2017)		409,762		425,423
	$	413,219	$	428,189

Schedule II. Condensed Financial Information of Registrant – (Continued)

AMERISAFE, INC.

CONDENSED STATEMENTS OF INCOME

	Year Ended December 31,
	2018			2017			2016
	(in thousands)
Revenues
Net investment income	$	1,089		$	679		$	1,509
Net unrealized losses on equity securities		(948	)		—			—
Fee and other income		7,389			6,890			5,843
Total revenues		7,530			7,569			7,352
Expenses
Other operating costs		7,530			7,569			7,352
Total expenses		7,530			7,569			7,352
Income (loss) before income taxes and equity in earnings of subsidiaries		—			—			—
Income tax expense (benefit)		(36	)		125			(156	)
Gain (loss) before equity in earnings of subsidiaries		36			(125	)		156
Equity in net income of subsidiaries		71,596			46,356			77,709
Net income	$	71,632		$	46,231		$	77,865

Schedule II. Condensed Financial Information of Registrant – (Continued)

AMERISAFE, INC.

CONDENSED STATEMENTS OF CASH FLOWS

	Year Ended December 31,
	2018			2017			2016
	(in thousands)
Operating activities
Net cash provided by operating activities	$	2,448		$	15,138		$	2,771
Investing activities
Purchases of investments		(47,825	)		(37,361	)		(11,940	)
Proceeds from sales of investments		54,600			33,000			—
Purchases of property and equipment		(1,041	)		(277	)		(924	)
Dividends from subsidiary		65,400			78,900			67,000
Net cash provided by investing activities		71,134			74,262			54,136
Financing activities
Proceeds from stock option exercises		67			—			837
Tax benefit from share-based payments		—			—			995
Dividends to shareholders		(84,491	)		(82,645	)		(76,111	)
Net cash used in financing activities		(84,424	)		(82,645	)		(74,279	)
Change in cash and cash equivalents		(10,842	)		6,755			(17,372	)
Cash and cash equivalents at beginning of year		16,351			9,596			26,968
Cash and cash equivalents at end of year	$	5,509		$	16,351		$	9,596