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American Safety Insurance Holdings Ltd. (ASI) filed Quarterly Report for the period ended 2011-06-30.
American Safety Insurance Holdings Ltd. has a market cap of $198.16 million; its shares were traded at around $18.78 with a P/E ratio of 11.38 and P/S ratio of 0.83.
This is the annual revenues and earnings per share of ASI over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of ASI.
Highlight of Business Operations:
Net earnings attributable to ASIH were $4.1 million, or $0.38 per diluted share, for the three months ended June 30, 2011, compared to $6.2 million, or $0.58 per diluted share, for the same period of 2010. The decrease in net earnings was primarily due to U.S. storm related losses of $3.3 million after tax.
The combined ratio was 105.8%, composed of a loss ratio of 67.4% and an expense ratio of 38.4%. The increase in the loss ratio is due to U.S. storm related losses of $5.1 million pre-tax composed of $4.1 million in the ART division and $1.0 million in the E&S division. For the same quarter of 2010, the loss ratio included approximately $1.3 million dollars of storm related property losses in the ART division. The loss ratio for both 2011 and 2010 quarters does not include any revisions to prior year loss reserves. The increase in the expense ratio is primarily as a result of increased fronting fees during the second quarter of 2010 relative to the same quarter in 2011 due to a fronting transaction that was non-renewed in the third quarter of 2010.
Gross written premiums increased 14.2% to $82.9 million from $72.6 million for the three months ended June 30, 2011 and 2010, respectively. The growth in the E&S division to $43.9 million from $36.5 million was attributable to increased production across all product lines but driven primarily by newer producers such as excess, surety and healthcare. The newer products are a result of our product diversification strategy. The growth in Assumed Reinsurance from $12.2 million to $15.0 million was a result of growth in targeted classes of business.
Net earned premiums increased 25.2% to $59.2 million for the three months ended June 30, 2011, compared to $47.2 million for the same period of 2010. Net earned premium growth resulted from growth discussed above as well as during 2010 and the Company’s diversification strategy.
Net investment income is derived from the investment portfolio net of investment expenses. Net investment income was $8.1 million for the three months ended June 30, 2011, compared to $7.9 million for the same period of 2010. Average invested assets increased to $854.0 million at June 30, 2011, as compared to $768.5 million for the same period of 2010. The pretax investment yield for the three months was 3.8% and 4.1%, respectively, for 2011 and 2010.
Acquisition expenses are commissions paid to producers that are partially offset by ceding commissions or fronting fees. Acquisition expenses also include premium taxes paid to states in which we are admitted to conduct business. Policy acquisition expenses were $13.3 million or 22.5% of earned premium for the three months ended June 30, 2011, as compared to $9.0 million or 19.0% of earned premium for the same period of 2010. The increase in acquisition expenses, on a percentage basis, relates to the non-renewal of a fronting transaction in the third quarter of 2010.
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