American Safety Insurance Holdings, Ltd. Reports On Impact Of Recent Market Developments (revised).HAMILTON, Bermuda -- American Safety Insurance Holdings, Ltd. (NYSE NYSE See: New York Stock Exchange :ASI ASI, n See Anxiety Sensitivity Index. ) today reported that it had $7.7 million of total book value of equity and debt securities in Lehman Brothers Lehman Brothers Holdings Inc. (NYSE: LEH), founded in 1850, is a diversified, global financial services firm. It is a participant in investment banking, equity and fixed income sales, research and trading, investment management, private equity, and private banking. , and equity securities in Freddie Mac Freddie Mac: see Federal Home Loan Mortgage Corporation. and Fannie Mae Fannie Mae: see Federal National Mortgage Association. at the time of their failure. The Company will record a pre-tax impairment charge for the full book value of these securities in the third quarter ended September 30, 2008. The Company does not have any other securities in its portfolio that it considers other than temporarily impaired at this time. In addition, given the recent turmoil in the financial markets, the Company sold approximately $17 million of other fixed maturity securities due to credit concerns about the financial services sector issuers. These sales will result in additional $1.4 million pre-tax realized loss Realized Loss A loss recognized when assets are sold for a price lower than the original purchase price. Notes: A portion of the realized loss may be applied against a capital gain or realized profit to reduce taxes. in the quarter. Subsequent to the sale and impairment charges, the Company has approximately 10% of its fixed maturity investments in the financial services sector. The Company continues to hold other Freddie Mac and Fannie Mae debt securities that are guaranteed by the US government. The impact of the aggregate $9.1 million in pre-tax impairment charges and realized losses will result in the Company reporting a net loss for the third quarter of 2008. The Company has discussed the impairment and realized losses with A.M. Best and does not expect any impact to its "A" (Excellent) rating. This release contains forward-looking statements that reflect the Company's current views with respect to future events and financial performance. We intend these forward looking statements to be covered by the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the United States securities laws. Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially. Important factors that could cause actual events or results to materially differ from our expectations include (1) unexpected ratings action by A.M. Best, (2) further realized losses in our portfolio, and (3) general economic and market conditions. About Us: American Safety Insurance Holdings, Ltd. (NYSE:ASI), a Bermuda holding company, offers innovative insurance solutions outside the U.S. in the 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. 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 and American Safety Risk Retention Group, Inc. As a group, ASI's insurance subsidiaries and affiliates are rated "A" (Excellent) VIII by A.M. Best. |
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