Financial Statements (Parent Only)

12 Months Ended

Dec. 31, 2012

Financial Statements (Parent Only) [Abstract]

FINANCIAL STATEMENTS (PARENT ONLY)

AMERICAN SAFETY INSURANCE HOLDINGS, LTD. (PARENT ONLY)

SCHEDULE II – CONDENSED BALANCE SHEETS

(dollars in thousands)

	December 31,
	2012		2011
Assets
Investment in subsidiaries	$	347,869	$	323,463
Other investments:
Fixed maturity securities available-for-sale at fair value		6,122		6,946
Short term investments		1,025		80
Secured note receivable from affiliate		350		3,013
Total other investments		7,497		10,039
Cash and cash equivalents		337		550
Accrued investment income		47		57
Total assets	$	355,750	$	334,109
Liability and Shareholders’ Equity
Accounts Payable and accrued expenses	$	18,344	$	5,921
Total liabilities		18,344		5,921
Preferred stock		100		100
Common stock		95		102
Additional paid in capital		86,568		98,394
Accumulated other comprehensive income, net		53,628		44,416
Retained earnings		197,015		185,176
Total shareholders’ equity		337,306		328,088
Total liabilities and shareholders’ equity	$	355,750	$	334,109

See accompanying report of independent registered public accounting firm.

SCHEDULE II – CONDENSED STATEMENTS OF OPERATIONS

(dollars in thousands)

	Years Ended December 31,
	2012			2011			2010
Revenues:
Investment income	$	230		$	126		$	221
Realized (losses) gains on sales of investments		65			(16	)		—
Total Revenues		295			110			221
Expenses:
Operating expenses		3,837			2,258			2,594
Total Expenses		3,837			2,258			2,594
Net loss before equity in net earnings of subsidiaries		(3,542	)		(2,148	)		(2,373	)
Equity in net earnings of subsidiaries		15,381			12,990			32,881
Net earnings	$	11,839		$	10,842		$	30,508

See accompanying report of independent registered public accounting firm.

SCHEDULE II – CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

(dollars in thousands)

	Years ended December 31,
	2012			2011			2010
Net earnings	$	13,108		$	14,124		$	29,951
Other comprehensive income before income taxes:
Unrealized gains on securities available-for-sale		19,449			21,518			17,850
Amortization of gain and unrealized losses on hedging transactions		(81	)		(78	)		(739	)
Reclassification adjustment for realized gains included in net earnings		(9,693	)		(10,966	)		(2,251	)
Total other comprehensive income before income taxes		9,675			10,474			14,860
Income tax expense related to items of other comprehensive income		585			4,082			2,069
Other comprehensive income net of income taxes		9,090			6,392			12,791
Comprehensive income	$	22,198		$	20,516		$	42,742
Less: Comprehensive income (loss) attributable to the non-controlling interest		1,147			3,386			(469	)
Comprehensive income attributable to American Safety Insurance Holdings, Ltd.	$	21,051		$	17,130		$	43,211

See accompanying report of independent registered public accounting firm.

SCHEDULE II – STATEMENTS OF CASH FLOW

(dollars in thousands)

	Years Ended December 31,
	2012			2011			2010
Cash flow from operating activities:
Net loss before equity in earnings of subsidiary	$	(3,542	)	$	(2,148	)	$	(2,373	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Change in operating assets and liabilities:
Accrued investment income		10			23			3
Due from/to affiliate								535
Accounts payable and accrued expenses		12,423			5,385			269
Notes Receivable—other		2,663			—			(70	)
Net cash provided by (used in) operating activities		11,554			3,260			(1,636	)
Cash flow from investing activities:
Decrease (increase) in investments		824			(1,103	)		(642	)
Investment in subsidiary		147			873			3,705
Decrease (increase) in short term investments		(945	)		1,588			(1,532	)
Net cash provided by investing activities		26			1,358			1,531
Cash flow from financing activities:
Proceeds from stock		2,155			2,932			3,030
Stock repurchase payments		(13,948	)		(7,306	)		(2,735	)
Net cash (used in) provided by financing activities		(11,793	)		(4,374	)		295
Net increase (decrease) in cash		(213	)		244			190
Cash and cash equivalents, beginning of year		550			306			116
Cash and cash equivalents, end of year	$	337		$	550		$	306

See accompanying report of independent registered public accounting firm.