American Safety Insurance Holdings, Ltd. Reports Net Earnings of $5.0 Million.Book Value Per Share Increased 23% to $25.97 HAMILTON Hamilton, city, Bermuda Hamilton, city (1990 est. pop. 3,100), capital of Bermuda, on Bermuda Island. It is a port at the head of Great Sound, a huge lagoon and deepwater harbor protected by coral reefs. , Bermuda Bermuda (bûrmy  `də), British dependency (2005 est. pop. 65,400), 21 sq mi (53 sq km), comprising some 150 coral rocks, islets, and islands (of which some 20 are inhabited), in the -- American Safety Insurance Holdings, Ltd.
(NYSE NYSESee: New York Stock Exchange :ASI ASI, n See Anxiety Sensitivity Index. ) today reported net earnings of $5.0 million for the three months ended September September: see month. 30, 2009, or $0.47 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, as compared to $(4.3) million, or $(0.42) per diluted share, for the same period of 2008. Financial highlights for the quarter included: * Gross premiums written When a non-life insurance company closes a contract to provide insurance against loss, the revenues (premiums) expected to be received over the life of the contract are called gross premiums written. increased 24.3% to $92.6 million. * Net premiums written decreased 6.1% to $38.1 million. * Net premiums earned decreased 4.1% to $40.0 million. * Investment income decreased 2.2% to $7.3 million. * Cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses was $12.6 million compared to $69.6 million for the same period in 2008. * Combined ratio decreased to 100.2% from 103.2% for the same period of 2008. * Loss ratio improved to 57.7% compared to 60.1% for the same period of 2008. * Expense ratio improved to 42.5% from 43.1% for the same period of 2008. * Annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. return on average equity increased to 8.4% from (7.4)% for the same period of 2008. Excluding net realized gains and (losses), the return was 8.3% compared to 8.1% for the same period of 2008. * Book value increased to $25.97 per outstanding share and $25.03 per diluted share compared to $21.12 and $20.55, respectively, at December December: see month. 31, 2008. Third Quarter Results Net earnings of $5.0 million for the quarter include a $1.6 million increase in other underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. expenses resulting from the write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of a reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. recoverable related to a legacy program. Net earnings also include $60 thousand in net realized gains on investments as compared with $9.2 million in net realized losses on investments in the 2008 quarter. Gross premiums written for the quarter increased by $18.1 million primarily due to a specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. program written in the third quarter for which the Company assumes no underwriting risk and receives fee income. Revenues for the quarter increased 20.0% to $48.6 million from $40.5 million in the 2008 quarter due to the impact of $9.2 million in net realized losses on investments in the 2008 period. The decline in net premiums earned resulted from a decline in the construction and assumed reinsurance lines of business. The decline in the construction line was due to the slow housing market and our exercise of underwriting discipline, while the decline in the assumed reinsurance line was due to the impact of the cancellation cancellation (See: cancel) CANCELLATION. Its general acceptation, is the act of crossing a writing; it is used sometimes to signify the manual operation of tearing or destroying the instrument itself. Hyde v. Hyde, 1 Eq. Cas. Abr. 409; Rob. of one treaty. Investment income totaled $7.3 million, a decrease of $0.2 million, due to yield contraction contraction, in physics contraction, in physics: see expansion. contraction, in grammar contraction, in writing: see abbreviation. contraction - reduction across the investment portfolio. Cash flow for the quarter was $12.6 million compared to $69.6 million in the 2008 quarter, due to collections related to certain reinsurance treaties in the prior year. The improvement in the loss ratio to 57.7% from 60.1% was due primarily to $1.5 million in adverse prior year reserve development recognized in the 2008 quarter which added 3.6 points to the 2008 loss ratio. There was no prior year reserve development in the 2009 quarter. The expense ratio of 42.5% for the quarter includes the impact of the $1.6 million write-off. The impact of the write-off was partially offset by lower acquisition costs in our assumed reinsurance line of business, due to the cancellation of a reinsurance treaty Reinsurance Treaty (June 18, 1887) Secret agreement between Germany and Russia. Arranged by Otto von Bismarck after the collapse of the Three Emperors' League, it provided that each party would remain neutral if either became involved in a war with a third nation, and that and the shift to excess of loss treaties from quota share For This article is about quota shares (shares of the quota). For other usages of quota, see, see . A quota share is a specified number or percentage of the allotment as a whole (quota), that is prescribed to each individual entity (see Non-tariff barriers to trade). . Year to Date Results Net earnings for the nine months ended September 30, 2009 were $17.4 million, or $1.65 per diluted share, compared to $8.5 million, or $0.79 per diluted share for the same period in 2008. Net realized gains on investments for the current nine month period were approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $0.3 million compared to net realized losses on investments of $8.4 million during 2008. Results in 2009 reflect an improvement in both the loss ratio and expense ratio. The combined ratio for the nine months ended September 30, 2009 was 99.5%, composed of a 58.9% loss ratio and a 40.6% expense ratio. The 2008 combined ratio was 102.5%, with a loss ratio of 60.6% and an expense ratio of 41.9%. During 2009, there has been no prior year reserve development, while 2008 results include $1.5 million of development related to prior year loss reserves. The improvement in the expense ratio resulted from the same factors impacting the three month results. Invested assets increased 9.8% to $739.7 million at September 30, 2009 from $673.7 million at December 31, 2008. The pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern book yield realized during the nine months on the investment portfolio was 4.3% compared to 4.7% for the same period in 2008. Book value at September 30, 2009 increased 23.0% to $25.97 per outstanding share and 21.8% to $25.03 per outstanding diluted share as compared to December 31, 2008 due to net earnings and appreciation in the value of the investment portfolio. Commenting on the results, Stephen Stephen, 1097?–1154, king of England (1135–54). The son of Stephen, count of Blois and Chartres, and Adela, daughter of William I of England, he was brought up by his uncle, Henry I of England, who presented him with estates in England and France and R. Crim, President and Chief Executive Officer said, "We have been able to generate improved underwriting results in this extremely competitive market. We will continue to use our diversified diversified (di·verˑ·s platform to opportunistically grow as market conditions permit." Conference Call A conference call to discuss third quarter 2009 results is scheduled for Thursday Thursday: see week. , October October: see month. 29, 2009 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 ac·tu·ar·y n. pl. ac·tu·ar·ies A statistician who computes insurance risks and premiums. [Latin 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 arbitration Process of resolving a dispute or a grievance outside a court system by presenting it for decision to an impartial third party. Both sides in the dispute usually must agree in advance to the choice of arbitrator and certify that they will abide by the proceedings, the integration and other challenges attendant ATTENDANT. One who owes a duty or service to another, or in some sort depends upon him. Termes de la Ley, h.t. As to attendant terms, see Powell on Morts. Index, tit. Attendant term; Park on Dower, c. 1 7. 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 Recompense for loss, damage, or injuries; restitution or reimbursement. An indemnity contract arises when one individual takes on the obligation to pay for any loss or damage that has been or might be incurred by another individual. Company, American Safety Risk Retention Group, Inc, American Safety Assurance (Vermont Vermont (vərmŏnt`) [Fr.,=green mountain], New England state of the NE United States. It is bordered by New Hampshire, across the Connecticut R. ), Inc. and Victore Insurance Company. As a group, ASI's insurance subsidiaries and affiliates are rated "A" (Excellent) VIII by A.M. Best. For additional information, please visit www.asih.bm .
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