American Safety Insurance Group, Ltd.'s Insurance Subsidiary Receives Higher Financial Size Rating From Demotech, Inc.; Expected to Increase Market Opportunities

Business Wire, Sept 17, 1998

HAMILTON, Bermuda--(BUSINESS WIRE)--Sept. 17, 1998--American Safety Insurance Group, Ltd. (Nasdaq/NM:AMSFF) today announced that its U.S. insurance subsidiary, American Safety Casualty Insurance Company, received a higher financial stability rating of "A prime" from Demotech, Inc., a recognized insurance industry rating service and insurance consulting firm.

In June, American Safety Insurance Group, Ltd. received a higher financial size rating (VII) from A.M. Best Company. A.M. Best also reaffirmed a rating of "A" (Excellent) on a group basis with stable ratings outlook for American Safety, as well as its U.S. subsidiary, American Safety Casualty Insurance Company, and its non-subsidiary affiliate, American Safety Risk Retention Group, Inc.

Commenting on the new ratings, Lloyd A. Fox, President and Chief Executive Officer, said, "We are very pleased to receive the higher financial size rating from A.M. Best and the higher financial stability rating from Demotech. The higher ratings, together with the increased capital base from our successful initial public offering in February 1998 and a growing portfolio of specialized insurance programs, should enable our Company to access a broader base of insurance business opportunities."

Demotech, a Columbus, Ohio, actuarial services and financial analysis firm, developed its financial stability ratings for property and casualty insurance carriers in 1989, to provide a model for qualification of property and casualty insurance carriers with Fannie Mae and Freddie Mac.

American Safety Insurance Group, Ltd. is a specialty insurance holding company which, through its subsidiaries, develops, underwrites, manages and markets primary casualty insurance and reinsurance programs in the alternative insurance market for environmental remediation risks, employee leasing and staffing industry risks, and other specialty risks. The Company develops specialty insurance coverages and custom-designed risk management programs not generally available in the standard insurance market.