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):  July 28, 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 July 28, 2010, the Registrant issued a press release reporting its financial results for the quarter ended June 30, 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 July 28, 2010 announcing financial results for the quarter ended June 30, 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:  July 28, 2010	By:	/s/ Stephen R. Crim
		Stephen R. Crim
		President/CEO

EX-99.1

American Safety Insurance Holdings, Ltd.

Reports Net Earnings of $6.2 Million

Book Value Per Share Increased to $28.32

HAMILTON, Bermuda, July 28, 2010 – American Safety Insurance Holdings, Ltd. (NYSE:ASI) today reported net earnings of $6.2 million for the three months ended June 30, 2010, or $0.58 per diluted share, as compared to $6.9 million, or $0.66 per diluted share, for the same period of 2009.

Financial highlights for the quarter included:

·   Gross premiums written increased 28% to $72.6 million

·   Total revenues increased 12% to $56.8 million

·   Net operating cash flow was $24.7 million

·   The combined ratio was 99.4%

·   Annualized return on average equity was 9.0%, excluding realized and unrealized gains (losses) on investments

·   Book value increased to $29.38 per outstanding share and $28.32 per diluted share

Second Quarter Results

Gross premiums written for the quarter increased 28% to $72.6 million, reflecting growth across all three underwriting divisions.  The increase was due primarily to growth from the addition of a property underwriting team in the first quarter of 2010, the Victore surety acquisition in 2009 and a dealer open lot property program added in late 2009.

Total revenues for the quarter increased 12% to $56.8 million from $50.8 million in the 2009 quarter primarily due to approximately $5.6 million of increased premiums earned.  Operating earnings for the quarter declined to $5.7 million from $6.9 million for the same period in 2009 primarily due to storm-related property losses of $1.3 million.  Operating earnings is a non-GAAP financial measure defined by the Company as net earnings adjusted for net realized gains/(losses), net of applicable taxes.

The combined ratio was 99.4%, composed of a loss ratio of 61.9% and an expense ratio of 37.4%.  The increase in the loss ratio to 61.9% from 58.1% was primarily due to storm-related property losses.  The reduction in the expense ratio to 37.4% for the quarter compared to 38.8% in the 2009 quarter is due to increased fronting fees offset in part by increased underwriting expenses related to additional personnel hired to support growth initiatives.

Year to Date Results

Net earnings for the six months ended June 30, 2010 were $12.7 million, or $1.19 per diluted share, compared to $12.5 million, or $1.19 per diluted share for the same period in 2009.  Gross premiums written year to date increased 23% to $131.9 million, which also resulted in increased earned premiums of $3.9 million year to date.  Net realized gains on investments for the current six month period were approximately $1.5 million pre-tax compared to net realized gains on investments of $0.2 million during 2009.

The combined ratio was 100.8%, composed of a loss ratio of 60.6% and an expense ratio of 40.2%.  The increase in the loss ratio to 60.6% from 59.4% for the 2009 period is primarily due to storm-related property losses.  The increase in the expense ratio to 40.2% for the six months ended compared to 39.7% in the 2009 six months is due primarily to increased underwriting expenses related to additional personnel hired to support growth initiatives.

Invested assets increased 4.0% to $778.6 million at June 30, 2010 from $750.4 million at December 31, 2009.  The pretax book yield realized during the six months on the investment portfolio was 4.1% compared to 4.4% for the same period in 2009.

Book value at June 30, 2010 increased to $29.38 per outstanding share and to $28.32 per diluted share due to net earnings and net unrealized gains in the investment portfolio.

As a part of the stock repurchase plan authorized by the Board of Directors on March 2, 2010, the Company repurchased a total of 155,700 shares of common stock at a cost of approximately $2.6 million during the quarter ended June 30, 2010.

Commenting on the results, Stephen R. Crim, President and Chief Executive Officer said, “I am pleased with the results we achieved during the second quarter with solid growth in book value per share and revenue, as well as strong cash flow from operations.  We continued to execute our growth strategy while maintaining our commitment to disciplined underwriting to preserve the integrity of our balance sheet."

Conference Call

A conference call to discuss 2nd quarter 2010 results is scheduled for Thursday, July 29, 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.com.  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) IX by A.M. Best. For additional information, please visit www.asih.bm.

Contacts:

American Safety Insurance Holdings, Ltd.

Investor Relations

Stephen R. Crim

scrim@amsafety.bm

(441) 542-7933

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American Safety Insurance Holdings, Ltd. and Subsidiaries

Financial and Operating Highlights

(Unaudited)  (in thousands)

	Three Months Ended June 30,						Six Months Ended June 30,
	2010			2009			2010			2009
INCOME STATEMENT DATA: Revenues:
Direct premiums earned	$	60,976		$	50,400		$	116,718		$	101,179
Assumed premiums earned		9,270			9,056			18,290			20,096
Ceded premiums earned		(23,006	)		(17,867	)		(44,800	)		(35,006	)
Net premiums earned		47,240			41,589			90,208			86,269
Net investment income		7,929			7,729			15,834			15,519
Net realized gains		509			281			1,520			237
Fee income		1,155			1,185			2,248			2,118
Other income		10			65			30			84
Total revenues		56,843			50,849			109,840			104,227
Expenses:
Losses and loss adjustment expenses		29,251			24,175			54,652			51,248
Acquisition expenses		8,995			8,873			18,825			19,077
Other underwriting expenses		9,849			8,470			19,676			17,316
Interest expense		685			810			1,444			1,551
Corporate and other expenses		751			743			1,466			1,425
Total expenses		49,531			43,071			96,063			90,617
Earnings before income taxes		7,312			7,778			13,777			13,610
Income taxes		950			766			851			974
Net Earnings	$	6,362		$	7,012		$	12,926		$	12,636
Less:  Net earnings attributable to the noncontrolling interest		199			93			256			172
Net earnings attributable to ASIH, Ltd.	$	6,163		$	6,919		$	12,670		$	12,464
Net earnings per share:
Basic	$	0.60		$	0.67		$	1.23		$	1.21
Diluted	$	0.58		$	0.66		$	1.19		$	1.19
Weighted average number of shares outstanding:
Basic		10,246,100			10,302,511			10,288,718			10,294,390
Diluted		10,589,708			10,523,511			10,616,956			10,515,391
Loss Ratio		61.9	%		58.1	%		60.6	%		59.4	%
Expense Ratio		37.5	%		38.9	%		40.2	%		39.7	%
GAAP combined ratio		99.4	%		97.0	%		100.8	%		99.1	%
Operating Earnings:
Net earnings attributable to ASIH, Ltd.	$	6,163		$	6,919		$	12,670		$	12,464
Less:  Realized investment gains (losses), net of taxes		431			(25	)		1,173			(79	)
Operating earnings	$	5,731		$	6,944		$	11,497		$	12,543

	At
BALANCE SHEET DATA:	6/30/2010		12/31/2009
	(unaudited)
Total investments	$	778,615	$	750,425
Total assets		1,194,884		1,147,660
Unpaid losses and loss adjustment expenses		647,932		616,444
Total liabilities		890,615		872,148
Total shareholders’ equity		304,269		275,512
Book value per share-diluted	$	28.32	$	25.47

3

American Safety Insurance Holdings, Ltd. and Subsidiaries

 Segment Data (Unaudited)

(Dollars in thousands)

	Three Months Ended June 30, 2010
	Insurance									Other
	E&S			ART			Reinsurance			Run-off			Total
Gross Premiums Written	$	36,477		$	23,886		$	12,215		$	-		$	72,578
Net Premiums Written		29,475			17,346			10,945			-			57,766
Net Premiums Earned		24,242			12,900			10,098			-			47,240
Underwriting Profit (Loss)		(1,396	)		735			149			(6	)		(518	)
Segment Fee Income		203			873			55			24			1,155
Other Fee Income											30			30
Investment Income		5,385			1,139			1,178			227			7,929
Pre-tax Operating Income		4,192			2,747			1,382			275			8,596
Realized Gains														509
Interest and Holding Company Expenses														1,793
Earnings Before Taxes														7,312
Income Taxes														950
Earnings After Taxes														6,362
Earnings from Non-Controlling Interest														199
Net Earnings Attributable to ASIH, Ltd.													$	6,163
Loss Ratio		56.6	%		65.7	%		69.8	%	NM				61.9	%
Expense Ratio		48.3	%		21.8	%		28.1	%	NM				37.5	%
Combined Ratio		104.9	%		87.5	%		97.9	%	NM				99.4	%

	Three Months Ended June 30, 2009
	Insurance									Other
	E&S			ART			Reinsurance			Run-off		Total
Gross Premiums Written	$	29,670		$	17,228		$	9,830			-	$	56,728
Net Premiums Written		22,903			10,154			9,848			-		42,905
Net Premiums Earned		23,368			9,836			8,385			-		41,589
Underwriting Profit (Loss)		(694	)		1,632			34			-		972
Segment Fee Income		231			885			69			-		1,185
Other Fee Income											84		84
Investment Income		5,520			1,009			959			241		7,729
Pre-tax Operating Income		5,057			3,526			1,062			325		9,970
Realized Gains													281
Interest and Holding Company Expenses													2,473
Earnings Before Taxes													7,778
Income Taxes													766
Earnings After Taxes													7,012
Earnings from Non-Controlling Interest													93
Net Earnings Attributable to ASIH, Ltd.												$	6,919
Loss Ratio		58.3	%		51.6	%		65.4	%	NM			58.1	%
Expense Ratio		43.7	%		22.8	%		33.4	%	NM			38.9	%
Combined Ratio		102.0	%		74.4	%		98.8	%	NM			97.0	%

4

American Safety Insurance Holdings, Ltd. and Subsidiaries

 Segment Data (Unaudited)

(Dollars in thousands)

	Six Months Ended June 30, 2010
	Insurance									Other
	E&S			ART			Reinsurance			Run-off			Total
Gross Premiums Written	$	66,106		$	42,119		$	23,670		$	-		$	131,895
Net Premiums Written		53,828			31,438			21,281			-			106,457
Net Premiums Earned		46,394			24,064			19,750			-			90,208
Underwriting Profit (Loss)		(3,917	)		746			905			(7	)		(2,273	)
Segment Fee Income		349			1,704			171			24			2,248
Other Fee Income											30			30
Investment Income		10,834			2,268			2,266			466			15,834
Pre-tax Operating Income		7,266			4,718			3,342			513			15,839
Realized Gains														1,520
Interest and Holding Company Expenses														3,582
Earnings Before Taxes														13,777
Income Taxes														851
Earnings After Taxes														12,926
Earnings from Non-Controlling Interest														256
Net Earnings Attributable to ASIH, Ltd.													$	12,670
Loss Ratio		57.9	%		61.9	%		65.2	%	NM				60.6	%
Expense Ratio		49.7	%		27.9	%		29.4	%	NM				40.2	%
Combined Ratio		107.7	%		89.8	%		94.6	%	NM				100.8	%

	Six Months Ended June 30, 2009
	Insurance									Other
	E&S			ART			Reinsurance			Run-off		Total
Gross Premiums Written	$	58,509		$	30,884		$	18,228		$	-	$	107,621
Net Premiums Written		44,260			19,644			18,732			-		82,636
Net Premiums Earned		46,433			20,496			19,340			-		86,269
Underwriting Profit (Loss)		(1,993	)		2,494			(359	)		-		142
Segment Fee Income		408			1,481			229					2,118
Other Fee Income											84		84
Investment Income		11,153			2,016			1,845			505		15,519
Pre-tax Operating Income		9,568			5,991			1,715			589		17,863
Realized Gains													237
Interest and Holding Company Expenses													4,490
Earnings Before Taxes													13,610
Income Taxes													974
Earnings After Taxes													12,636
Earnings from Non-Controlling Interest													172
Net Earnings Attributable to ASIH, Ltd.												$	12,464
Loss Ratio		58.6	%		52.3	%		68.8	%	NM			59.4	%
Expense Ratio		44.8	%		28.3	%		31.9	%	NM			39.7	%
Combined Ratio		103.4	%		80.6	%		100.7	%	NM			99.1	%

5