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                       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:  April 13, 1999

                                    AMERICAN SAFETY INSURANCE GROUP, LTD.
                        (Exact name of Registrant as specified in its charter)


 Bermuda                             1-14795                     Not applicable
 (State of incorporation          (Commission File             (I.R.S. Employer
 or organization)                    Number)                 dentification No.)

              44 Church Street                                   (441) 296-8560
              P.O. Box HM 2064                          (Registrant's telephone
          Hamilton, HM HX Bermuda                                       number)
  (Address of principal executive offices)





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Item 5.           Other Events.

         On May 29, 1998,  American Safety  Reinsurance,  Ltd. ("American Safety
Re"),  a subsidiary  of  Registrant,  purchased an existing  secured loan in the
original  principal  amount of $8,850,000 (the "Project Loan") from an affiliate
of Citibank  Mortgage  Corp.,  which loan was made to Ponce  Marina,  Inc.  (the
"Developer")  in  connection  with its planned  development  of 710  condominium
units, a marina with 142  condominium  boat slips and a yacht club, a beach club
and a par 3 golf course on a 172 acre site located in Ponce Inlet,  Florida (the
"Property").  American  Safety Re  purchased the Project Loan at a discount  for
$5,850,082,  and made additional  advances to the Developer and incurred other 
Property related costs totaling $2,009,815 following its purchaseof the Project 
Loan. The Developer was unable to obtain construction financing for the Property
and failed to make a $6,400,000 payment on the Project Loan due March 31,  1999.
Immediately  following the  Developer's  default,  American Safety Re obtained a
judgment   against  the  Developer  for  $12,117,857   (which  includes  accrued
interest), foreclosed on the Property and received a certificate of title to the
Property on April 13, 1999. American Safety Re has invested, to date, a total of
$7,859,897 in the Project Loan and the Property.

         American  Safety Re is currently  marketing the Property for sale and 
is evaluating a proposal from a prospective purchaser.  The Property  has  been
recently  appraised  for a third  party  by an  independent appraisal  firm for
an amount  substantially  in excess of American  Safety Re's investment in  the
Project Loan. While Registrant's management is disappointed in  the Developer's
default on the Project Loan, it believes that American Safety Re will ultimately
recover  its  investment  in  the  Project  Loan.   Management anticipates that
Registrant's operating results for the second quarter of the fiscal  year will  
be reduced by  approximately  $253,000 in interest on notes receivable (or $0.04
per share)as a result of the Developer's default on the Project Loan. Registrant
expects that current  favorable  business  prospects, including  the sale of the
Propertyfor an amount in excess of its  investment  in the Project Loan, should 
substantially offset the reduction in interest  on  notes receivable during the 
balance of the fiscal year.


                                                     SIGNATURE

         Pursuant to the  requirements  of the Securities  Exchange Act of 1934,
Registrant  has duly  caused  this  Report  to be  signed  on its  behalf by the
undersigned, thereunto duly authorized, on April 19, 1999.

                                           American Safety Insurance Group, Ltd.


                                      By: /s/ Lloyd A. Fox
                                              Lloyd A. Fox, President


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