American Safety Insurance Holdings Reports 1Q Results

American Safety Insurance Holdings reported net earnings of $5.5 million for the three months ended March 31, or $0.56 per diluted share, as compared to $4.1 million, or $0.39 per diluted share, for the same period of 2012.

In a release on May 8, the Company noted that for the three months ended March 31, net operating earnings1 were $4.3 million or $0.44 per diluted share, compared to net operating earnings of $4.0 million or $0.38 per diluted share for the same quarter of 2012.

Financial highlights for the quarter included:

-Gross written premiums increased 10.0 percent to $81.2 million

-Total revenues increased 3.3 percent to $72.3 million

-Net earned premiums totaled $61.9 million versus $61.4 million

-The combined ratio was 102.7 percent compared to 101.1 percent

-Book value was $34.05 per diluted share versus $34.21 at December 31, 2012.

E&S gross written premiums totaled $48.0 million compared to $38.6 million, ART gross written premiums were $16.6 million compared to $21.2 million, and Reinsurance gross written premiums were $16.6 million compared to $14.0 million. The growth in the E&S gross written premiums resulted primarily from the surety acquisition and Midwest casualty underwriting teams, both added after the first quarter of 2012. The decrease in ART gross written premiums is due to the de-emphasis of the specialty programs business while the increase in Reinsurance gross written premiums was due to increased January 2013 new business.

The increase in total revenue to $72.3 million was attributable to increases in net earned premiums, net realized gains and fee income, partially offset by lower investment income. The combined ratio for the quarter ended March 31, was 102.7 percent, composed of a loss ratio of 61.3 percent and an expense ratio of 41.4 percent, compared to the prior year combined ratio of 101.1 percent, composed of a loss ratio of 60.7 percent and expense ratio of 40.4 percent. The loss ratio for the quarters ended March 31, and 2012 do not include any prior accident year loss reserve adjustments. The expense ratio increased due primarily to the surety acquisition and other underwriting teams, both added after the first quarter of 2012.

Book value per diluted share decreased to $34.05 due primarily to declines during the quarter in the valuation of mortgage and corporate fixed income securities in the portfolio.

Commenting on the results, Stephen R. Crim, Chief Executive Officer, said: "We had a solid first quarter with strong growth coming from our excess and surplus lines division. We continue the process of reviewing strategic alternatives and will make an announcement when a definitive agreement has been reached or the process is concluded."

American Safety Insurance Holdings, Ltd., a Bermuda holding company, has offered solutions outside the U.S. in the reinsurance and alternative risk markets

More Information:

www.asih.bm

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