8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported):  April 27, 2010

AMERICAN SAFETY INSURANCE HOLDINGS, LTD.

(Exact name of registrant as specified in its charter)

Bermuda (State or Other Jurisdiction of Incorporation or Organization) 001-04795 (Commission File Number) Not applicable (I.R.S. Employer Identification No.)

The Boyle Building, 2nd Floor

31 Queen Street

Hamilton, Bermuda HM 11

(Address of principal executive offices, including zip code)

(441) 296-8560

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

[  ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[  ] Soliciting material pursuant to Rule 14a-12 under the Securities Act (17 CFR 240.14a-12)

[  ] Pre-commencement communications pursuant to Rule 14d-2(b) 12 under the Securities Act (17 CFR 240.14d-2(b))

[  ] Pre-commencement communications pursuant to Rule 13e-4(c) 12 under the Securities Act (17 CFR 240.13e-2(c))

Item 2.02.                      Results of Operations and Financial Condition

On April 27, 2010, the Registrant issued a press release reporting its financial results for the quarter ended March 31, 2010.

A copy of the press release is attached as Exhibit 99.1 and is hereby incorporated herein by reference.

Item 9.01.                      Financial Statements and Exhibits.

(d)           Exhibits.  The following exhibit is being furnished herewith:

Exhibit No. Description

99.1   Press Release of American Safety Insurance Holdings, Ltd. issued April 27, 2010 announcing financial results for the quarter ended March 31, 2010.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.

	AMERICAN SAFETY INSURANCE HOLDINGS, LTD.
	Registrant
Date:  April 27, 2010	By:	/s/ Stephen R. Crim
		Stephen R. Crim
		President/CEO

EX-99

American Safety Insurance Holdings, Ltd.

Reports First Quarter Net Earnings Increase of 17%

HAMILTON, Bermuda, April 27, 2010 - 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:

· 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.  

· 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.  

· Cash flow from operations was $10.6 million compared to $14.2 million for the same period of 2009.  

· Gross premiums written increased 16.6% to $59.3 million versus the same period of 2009.  

· Net premiums written increased 22.8% to $48.8 million versus the same period of 2009.  

· 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 59.1% and an expense ratio of 43.2%.  This compares to a combined ratio of 101.1%, with a loss ratio of 60.6% and an expense ratio of 40.5%, for the 2009 first quarter.  The decrease in the loss ratio was due primarily to improvement in the Assumed Reinsurance loss ratio and business mix shifts into shorter tailed products.  The increase in the expense ratio for the quarter was due to a reduction in net premiums earned as well as staff additions in the underwriting functions within the E&S division and the recently completed Victore acquisition.

Commenting on the results, Stephen R. Crim, President and Chief Executive Officer said, “I am pleased with the solid earnings and increase in book value accomplished in the quarter.  We advanced our strategy to achieve critical mass in newer products and shifted our product mix toward shorter tail lines of business.”

Conference Call

A conference call to discuss first quarter 2010 results is scheduled for Wednesday, April 28, 2010 at 9:00 a.m. (Eastern Daylight Time), which will be broadcast through Vcall’s Investor Calendar at www.investorcalendar.com, or the Company’s website at www.amsafety.bm.  If you are unable to participate at this time, a replay will be available for 30 days, beginning approximately two hours after the call.  A transcript of the call will be available on the Company’s website beginning several days after the call.

This report contains forward-looking statements and non-GAAP financial measures.  The forward-looking statements reflect the Company’s current views with respect to future events and financial performance, including insurance market conditions, combined ratio, premium growth, acquisitions and new products and the impact of new accounting standards.  Forward-looking statements involve risks and uncertainties which may cause actual results to differ materially, including competitive conditions in the insurance industry, levels of new and renewal insurance business, developments in loss trends, adequacy and changes in loss reserves and actuarial assumptions, timing or collectability of reinsurance recoverables, market acceptance of new coverages and enhancements, changes in reinsurance costs a nd availability, potential adverse decisions in court and arbitration proceedings, the integration and other challenges attendant to acquisitions, and changes in levels of general business activity and economic conditions.

About Us:

American Safety Insurance Holdings, Ltd. (NYSE:ASI), a Bermuda holding company, offers innovative solutions outside the U.S. in the reinsurance and alternative risk markets through its subsidiaries, American Safety Reinsurance, Ltd. and American Safety Assurance, Ltd., and in the U.S. for specialty risks and alternative risk markets through its program administrator, American Safety Insurance Services, Inc., and insurance company subsidiaries and affiliates, American Safety Casualty Insurance Company, American Safety Indemnity Company and American Safety Risk Retention Group, Inc. and American Safety Assurance (Vermont), Inc. and Victore Insurance Company.  As a group, ASI’s insurance subsidiaries and affiliates are rated “A” (Excellent) VIII by A.M. Best. For additional information, plea se visit www.asih.bm.

Contacts:

American Safety Insurance Holdings, Ltd.	American Safety Administrative Services, Inc.
Investor Relations	Media Relations
Mark W. Haushill	Julie McDonald
mark.haushill@amsafety.bm	jmcdonald@amsafety.com
(441) 296-8560	(770) 916-1908

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American Safety Insurance Holdings, Ltd. and Subsidiaries

Financial and Operating Highlights

(Dollars in thousands except per-share data)

	Three Months Ended March 31,
	2010			2009
INCOME STATEMENT DATA: Revenues:
Direct premiums earned	$	55,742		$	50,779
Assumed premiums earned		9,020			11,040
Ceded premiums earned		(21,794	)		(17,139	)
Net premiums earned		42,968			44,680
Net investment income		7,905			7,790
Net realized gains (losses)		1,011			(44	)
Fee income		1,093			933
Other income		20			19
Total revenues		52,997			53,378
Expenses:
Losses and loss adjustment expenses		25,401			27,073
Acquisition expenses		9,830			10,204
Other underwriting expenses		9,827			8,846
Interest expense		759			741
Corporate and other expenses		715			682
Total expenses		46,532			47,546
Earnings before income taxes		6,465			5,832
Income taxes		(99	)		208
Net earnings before non-controlling interest		6,564			5,624
Less:  Net earnings attributable to the noncontrolling interest		57			79
Net earnings attributable to American Safety Insurance Holdings, Ltd.	$	6,507		$	5,545
Net earnings per share:
Basic	$	0.63		$	0.54
Diluted	$	0.61		$	0.53
Weighted average number of shares outstanding:
Basic		10,331,810			10,286,089
Diluted		10,641,577			10,474,968
Loss Ratio		59.1	%		60.6	%
Expense Ratio		43.2	%		40.5	%
GAAP combined ratio		102.3	%		101.1	%
BALANCE SHEET DATA:	March 31, 2010			December 31, 2009
Total investments	$	758,316		$	750,425
Total assets		1,162,576			1,147,660
Unpaid losses and loss adjustment expenses		628,606			616,444
Total liabilities		877,027			872,148
Total shareholders’ equity		285,549			275,512
Book value per share	$	27.23		$	26.33

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American Safety Insurance Holdings, Ltd. and Subsidiaries

 Segment Data (Unaudited)

(Dollars in thousands)

	Three Months Ended March 31, 2010
	Insurance									Other
	E&S			ART			Reinsurance			Run-off			Total
Gross Premiums Written	$	29,628		$	18,234		$	11,455		$	-		$	59,317
Net Premiums Written		24,353			14,092			10,336			-			48,781
Net Premiums Earned		22,152			11,163			9,653			-			42,968
Underwriting Profit (Loss)	$	(2,521	)	$	11		$	756		$	(1	)	$	(1,755	)
Fee Income		146			831			116			-			1,093
Investment Income		5,449			1,129			1,088			239			7,905
Pre-tax Operating Income		3,074			1,971			1,960			238			7,243
Realized Gains (Losses)														1,011
Interest and Holding Company Expenses														1,789
Income Before Taxes														6,465
Income Taxes														(99	)
Income After Taxes													$	6,564
Earnings from Non-Controlling Interest														57
Net Income Attributable to ASIH, Ltd.													$	6,507
Loss Ratio		59.4	%		57.5	%		60.3	%	NM				59.1	%
Expense Ratio		51.3	%		35.0	%		30.7	%	NM				43.2	%
Combined Ratio		110.7	%		92.5	%		91.0	%	NM				102.3	%

	Three Months Ended March 31, 2009
	Insurance									Other
	E&S			ART			Reinsurance			Run-off		Total
Gross Premiums Written	$	28,840		$	13,655		$	8,398		$	-	$	50,893
Net Premiums Written		21,356			9,490			8,884			-		39,730
Net Premiums Earned		23,064			10,660			10,956			-		44,680
Underwriting Profit (Loss)	$	(1,299	)	$	862		$	(393	)	$	-	$	(830	)
Fee Income		176			597			160			0		933
Investment Income		5,633			1,007			886			264		7,790
Pre-tax Operating Income		4,511			2,465			653			264		7,893
Realized Gains (Losses)													(44	)
Interest and Holding Company Expenses													2,017
Income Before Taxes													5,832
Income Taxes													208
Income After Taxes												$	5,624
Earnings from Non-Controlling Interest													79
Net Income Attributable to ASIH, Ltd.												$	5,545
Loss Ratio		59.0	%		52.9	%		71.4	%	NM			60.6	%
Expense Ratio		45.8	%		33.4	%		30.8	%	NM			40.5	%
Combined Ratio		104.9	%		86.3	%		102.1	%	NM			101.1	%

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