American Safety Insurance Holdings Ltd. saw a seven-percent decrease in net earnings during the second quarter as a result of a soft market.

It reported net earnings of $6.8 million, or $0.63 per diluted share, down from $7.3 million during the same period in 2007.

The company is a Bermuda-based holding company offering insurance solutions outside the US in there reinsurance and alternative risk markets through its subsidiaries.

The decline in net earnings has been attributed to the impact of the soft insurance market on underwriting profit driven by declines in our construction line and other changes in the mix of our business.

Gross premiums written increased 26 percent to $72.6 million while net premiums written increased 29 percent to $57.2 million.

Stephen Crim, president and CEO of American Safety Insurance Holdings, said: "Gross and net premiums written increased by 12 percent and 15 percent respectively for the first six months of 2008, driven by premium growth from lines of business added since 2006 in connection with our product diversification strategy.

"These newer products generated $45.5 million of gross premiums written through June, compared to $17.8 million for the same period in 2007.

"The largest contributor to growth was assumed reinsurance, which produced $28.6 million.

"I am pleased with the progress in broadening our product platform, which has allowed us to achieve growth in a competitive insurance market while maintaining underwriting discipline.

"This platform positions the company for meaningful growth and improved profitability when market conditions improve."