American Safety Insurance Holdings, Ltd. Announces Change in Auditor

Business Wire, August 2, 2004

HAMILTON, Bermuda -- American Safety Insurance Holdings, Ltd. (NYSE:ASI) today announced that it has retained BDO Seidman, LLP as its independent auditor, effective immediately. BDO Seidman, LLP replaces KPMG LLP which has served as the Company's independent auditor since 1993.

This decision was not the result of any disagreement between the Company and KPMG LLP on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedures. This change of independent auditor was recommended by the Company's Audit Committee and approved by its Board of Directors following a review of the proposed audit fees of both BDO Seidman, LLP and KPMG LLP.

BDO Seidman, LLP is a national accounting firm that has operated successfully for more than 90 years, serving both private and public businesses through more than 35 offices and 250 alliance firm locations nationwide.

American Safety Insurance Holdings, Ltd. is a specialty insurance holding company which, through its subsidiaries, provides innovative insurance solutions in the alternative insurance market for environmental remediation, contracting and other specialty risks. Additional information about ASI can be found at http://www.americansafetyinsurance.com.

This press release contains forward-looking statements. These forward-looking statements reflect the Company's current views with respect to future events and financial performance. Forward-looking statements involve risks and uncertainties which may cause actual results to differ materially, and are subject to change based on various factors. For additional factors, which could influence the results of the Company's operating and financial performance, see the Company's filings with the Securities and Exchange Commission.