American Safety Insurance Holdings, Ltd. `A' Excellent Rating Affirmed by A.M. Best

Business Wire, Sept 8, 2004

HAMILTON, Bermuda -- American Safety Insurance Holdings, Ltd. (NYSE:ASI) today announced that the A.M. Best Company has affirmed its "A" (Excellent) rating for all of its insurance operating companies, consisting of American Safety Casualty Insurance Company, American Safety Indemnity Company, American Safety Reinsurance, Ltd. and its non-subsidiary affiliate, American Safety Risk Retention Group, Inc. A.M. Best stated that "the rating reflects the consolidated Group's favorable capitalization, profitable overall operating results, and effective management of its insurance and investment programs." However, A.M. Best assigned a negative outlook to the rating in response to the Company's reserve strengthening in the second quarter, noting "weaker underwriting results from its core insurance business and the potential for further reserve strengthening." Additional information about the Best's rating can be accessed at www.ambest.com.

Commenting on the Best's rating, Stephen R. Crim, President and Chief Executive Officer of American Safety Insurance Holdings, Ltd. said, "We are very pleased to have again received an 'A' (Excellent) rating from A.M. Best, the leading nationally recognized insurance industry rating service. We have maintained an 'A' (Excellent) rating since 1995, and we are pleased to have again merited this distinction among property and casualty insurance companies."

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, including future insurance claims and losses, the Company's expectations with respect to the outcome of the Principal Management acquisition rescission litigation, and the future profitability and the value of the Harbour Village real estate development project. Forward-looking statements involve risks and uncertainties which may cause actual results to differ materially, and are subject to change based on various factors, including competitive conditions in the insurance industry, levels of new and renewal insurance business, unpredictable developments in loss trends, results of evaluating actuarial reserving assumptions, adequacy and changes in loss reserves, timing or collectibility of reinsurance recoverables, market acceptance of new coverages and enhancements, changes in reinsurance costs and availability, potential adverse decisions in court and arbitration proceedings, and changes in levels of general business activity and economic conditions. With respect to the development of the Harbour Village project, such forward looking statements involve risks and uncertainties which may cause actual results to differ materially, and are subject to change based on various real estate development industry factors, including competitive housing conditions in the local market area, risks inherent in real estate development and new construction, increases in construction costs, construction delays, weather, zoning, litigation, changes in interest rates and the availability of mortgage financing for prospective purchasers of condominium units and boat slips, and changes in local and national levels of general business activity and economic conditions. 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.