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): February 1, 2013
AMERICAN SAFETY INSURANCE HOLDINGS, LTD.
(Exact name of registrant as specified in its charter)
Bermuda | 001-14795 | Not applicable | ||
(State or Other Jurisdiction of Incorporation or Organization) |
(Commission File Number) |
(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
(Registrants 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 February 1, 2013, the Registrant issued a press release providing an estimate of reserve strengthening and losses to be included in its fourth quarter 2012 results and announcing that A.M. Best has affirmed the Companys strength rating of A (Excellent) and revised the outlook to negative from stable.
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 February 1, 2013, providing an estimate of reserve strengthening and losses to be included in its results for the fourth quarter ended December 31, 2012, and announcing that A.M. Best has affirmed the Companys strength rating of A (Excellent) and revised the outlook to negative from stable. |
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: February 1, 2013 | By: | /s/ Stephen R. Crim | ||||
Stephen R. Crim | ||||||
President/CEO |
Exhibit 99.1
American Safety Insurance Holdings, Ltd.
Provides Outlook on 2012 Fourth Quarter Results
HAMILTON, Bermuda, February 1, 2013American Safety Insurance Holdings, Ltd. (NYSE: ASI) today announced that the Companys 2012 fourth quarter results will include prior year net loss reserve strengthening of approximately $12 to $14 million pre-tax. This reserve strengthening is attributable to the Assumed Reinsurance division and specialty programs within the Alternative Risk Transfer division.
The Assumed Reinsurance reserve strengthening stemmed from four casualty contracts that were non-renewed in prior years. The Company continues shifting the risk profile of the Assumed Reinsurance division away from quota share contracts, which are the primary source of the reserve strengthening, to excess of loss contracts within targeted specialty classes of business.
The reserve strengthening in the ART division was primarily attributable to two casualty programs. Consistent with the Companys previously announced decision to de-emphasize specialty programs, the Company had only five continuing programs remaining in the ART division at the end of 2012.
For the fourth quarter, the Company expects to report an after-tax operating loss of between $0.35 and $0.40 per fully diluted share, including the catastrophe losses from Super Storm Sandy announced on December 27, 2012.
Also today, A.M. Best affirmed the financial strength rating of A (Excellent) of the insurance operating subsidiaries of American Safety Insurance Holdings, Ltd., referencing the consolidated capitalization of the Company and its solid long term operating results. A.M. Best, however, revised the outlook to negative due to recent underwriting results combined with current market conditions.
Commenting on the quarter, Stephen R. Crim, Chief Executive Officer, said: While I am disappointed in our fourth quarter results, the reserve strengthening occurred in areas of the Companys business that we have de-emphasized as part our overall strategy to improve profitability. The decision by A.M. Best to affirm our A rating confirms their view in the strength of our balance sheet. Our Excess and Surplus Lines division continues to perform well, and I remain confident that our strategic focus on growing the E&S platform will result in improved profitability.
ASI is scheduled to release fourth quarter and full year 2012 results following the market close on Wednesday, March 6, 2013, with a subsequent dial-in analyst conference call on Thursday, March 7, 2013, at 9:00 a.m. Eastern.
This press release contains forward-looking statements and unaudited and non-GAAP financial measures. The forward-looking statements reflect the Companys 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 and 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:
For 25 years, American Safety Insurance Holdings, Ltd. (NYSE:ASI), a Bermuda holding company, has offered 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, American Safety Risk Retention Group, Inc., and American Safety Assurance (Vermont), Inc. As a group, ASIs 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. | American Safety Administrative Services, Inc. | |
Investor Relations | Media Relations | |
Stephen R. Crim | Patrick Driscoll | |
scrim@amsafety.bm | patrick.driscoll@amsafety.com | |
(441) 296-8560 | (770) 916-1908 |