Increase resulted from improved underwriting results, higher fee income and increased investment income, partially offset by a higher effective tax rate

American Safety Insurance Holdings has reported net earnings of $6.9 million for the three months ended June 30, 2009, or $0.66 per diluted share, as compared to $6.8 million, or $0.63 per diluted share, for the same period of 2008.

The increase in net earnings in the second quarter as compared to the 2008 quarter resulted from improved underwriting results, higher fee income and increased investment income, partially offset by a higher effective tax rate.

Revenues for the quarter decreased 10.2% to $50.8 million from $56.6 million in the 2008 quarter, primarily due to decreased net premiums earned.

The decrease in the loss ratio for the quarter was due to a combination of the mix of business and $1.5 million in adverse reserve development in the 2008 quarter in the environmental line.

Net earnings for the six months ended June 30, 2009 were $12.5 million, or $1.19 per diluted share, compared to $12.8 million, or $1.18 per diluted share for the same period in 2008.

American Safety Insurance Holdings is a Bermuda holding company offering solutions in the reinsurance and alternative risk markets.