Financial Statements (Parent Only)

12 Months Ended

Dec. 31, 2011

Financial Statements (Parent Only) [Abstract]

FINANCIAL STATEMENTS (PARENT ONLY)

AMERICAN SAFETY INSURANCE HOLDINGS, LTD. (PARENT ONLY)

SCHEDULE II — CONDENSED BALANCE SHEETS

(dollars in thousands)

		September 30,		September 30,
	December 31,
	2011		2010
Assets
Investment in subsidiaries	$	323,463	$	304,552
Other investments: Fixed maturity securities available-for-sale at fair value		6,946		5,843
Short term investments		80		1,668
Secured note receivable from affiliate		3,013		3,515
Total other investments		10,039		11,026
Cash and cash equivalents		550		306
Accrued investment income		57		80
Total assets	$	334,109	$	315,964
Liability and Shareholders’ Equity
Accounts payable and accrued expenses	$	5,921	$	536
Total liabilities		5,921		536
Preferred stock		100		100
Common stock		102		104
Additional paid in capital		98,394		102,768
Accumulated other comprehensive earnings, net		44,416		38,128
Retained earnings		185,176		174,328
Total shareholders’ equity		328,088		315,328
Total liabilities and shareholders’ equity	$	334,109	$	315,964

See accompanying independent auditors’ report.

AMERICAN SAFETY INSURANCE HOLDINGS, LTD. (PARENT ONLY)

SCHEDULE II — CONDENSED STATEMENTS OF OPERATIONS

(dollars in thousands)

		September 30,			September 30,			September 30,
	Years Ended December 31,
	2011			2010			2009
Revenues:
Investment income	$	126		$	221		$	343
Realized (losses) gains on sales of investments		(16	)		—			(1,135	)
Total Revenues		110			221			(792	)
Expenses:
Operating expenses		2,258			2,594			2,728
Total Expenses		2,258			2,594			2,728
Net loss before equity in net earnings of subsidiaries		(2,148	)		(2,373	)		(3,520	)
Equity in net earnings of subsidiaries		12,990			32,881			27,845
Net earnings	$	10,842		$	30,508		$	24,325

See accompanying independent auditors’ report.

AMERICAN SAFETY INSURANCE HOLDINGS, LTD. (PARENT ONLY)

SCHEDULE II — STATEMENTS OF CASH FLOW

(dollars in thousands)

		September 30,			September 30,			September 30,
	Years Ended December 31,
	2011			2010			2009
Cash flow from operating activities:
Net loss before equity in earnings of subsidiary	$	(2,148	)	$	(2,373	)	$	(3,520	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Change in operating assets and liabilities:
Accrued investment income		23			3			42
Due from/to affiliate					535			(6,374	)
Accounts payable and accrued expenses		5,385			269			(7,282	)
Other, net		—			(70	)		(1	)
Net cash provided by (used in) operating activities		3,260			(1,636	)		(17,135	)
Cash flow from investing activities:
Decrease (increase) in investments		(1,103	)		(642	)		6,630
Investment in subsidiary		873			3,705			5,752
Decrease (increase) in short term investments		1,588			(1,532	)		2,998
Net cash provided by investing activities		1,358			1,531			15,380
Cash flow from financing activities:
Proceeds from exercised stock options		2,932			3,030			1,844
Stock repurchase payments		(7,306	)		(2,735	)		—
Net cash (used in) provided by financing activities		(4,374	)		295			1,844
Net increase in cash		244			190			89
Cash and cash equivalents, beginning of year		306			116			27
Cash and cash equivalents, end of year	$	550		$	306		$	116

See accompanying independent auditors’ report.

AMERICAN SAFETY INSURANCE HOLDINGS, LTD. (PARENT ONLY)

SCHEDULE II — CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

(dollars in thousands)

		September 30,			September 30,			September 30,
	Years ended December 31,
	2011			2010			2009
Net earnings	$	14,124		$	29,951		$	24,702
Other comprehensive income before income taxes:
Unrealized gains on securities available-for-sale		21,517			17,850			31,394
Amortization of gain and unrealized losses on hedging transactions		(78	)		(739	)		2,736
Reclassification adjustment for realized gains included in net earnings		(10,966	)		(2,251	)		(163	)
Total other comprehensive income before income taxes		10,473			14,860			33,967
Income tax expense related to items of other comprehensive income		4,081			2,069			5,133
Other comprehensive income net of income taxes		6,392			12,791			28,834
Comprehensive income	$	20,516		$	42,742		$	53,536
Less: Comprehensive income (loss) attributable to the non-controlling interest		3,386			(469	)		577
Comprehensive income attributable to American Safety Insurance Holdings, Ltd.	$	17,130		$	43,211		$	52,959

See accompanying independent auditors’ report.