American Safety Insurance Holdings, Ltd. Reports
First Quarter Net Earnings Increase of 17%
April 27, 2010 04:33 PM Eastern Daylight Time
HAMILTON, Bermuda--(EON: Enhanced Online News)--American Safety Insurance Holdings, Ltd. (NYSE:
ASI) today reported first quarter net earnings of $6.5 million, or $0.61 per diluted share, compared to $5.5 million,
or $0.53 per diluted share, for the same period in 2009.
Financial highlights for the quarter included:
l Book value increased to $27.23 per outstanding share and $26.21 per diluted share at quarter end, from
$26.33 per outstanding share and $25.47 per diluted share at December 31, 2009.
l Return on average equity (adjusted for realized and unrealized gains (losses) on investments) was 9.2%
compared to 10.0% for the same period of 2009.
l Cash flow from operations was $10.6 million compared to $14.2 million for the same period of 2009.
l Gross premiums written increased 16.6% to $59.3 million versus the same period of 2009.
l Net premiums written increased 22.8% to $48.8 million versus the same period of 2009.
l The combined ratio was 102.3% compared to 101.1% for the same period of 2009.
First Quarter Results
The Company's gross premiums written increased $8.4 million over the same period in 2009. The primary drivers
were growth in (a) property and surety products within the E&S division, (b) a property program within the ART
division and (c) the healthcare sector for the Assumed Reinsurance division.
Revenues for the quarter were $53.0 million, compared to $53.4 million for the 2009 first quarter. This decrease
was due to a $1.7 million reduction in premiums earned that was offset in part by increases in net realized gains on
investments. Operating earnings for the quarter were $5.8 million compared to $5.6 million for the same period in
2009. Operating earnings consist of net earnings adjusted for net realized gains/(losses), net of applicable taxes.
The combined ratio for the quarter was 102.3%, composed of a loss ratio of