American Safety Insurance Holdings Ltd’s profits dropped by more than $2 million for the second quarter after taking a hit from the US storms that swept the country in April and May.The insurer reported net earnings of $4.1 million for the three months ended June 30, 2011 or 38 cents per share, compared to $6.2 million, or 58 cents per share, for the same period in 2010.Total revenues in the quarter beat Bloomberg analysts’ estimates of $67.4 million, rising to $68.2 million from $56.8 million in 2010, primarily due to increases in net earned premiums across all insurance divisions. Investment income increased to $8.1 million while net realised gains and fee income decreased slightly.The combined ratio of 105.8 percent consisted of a loss ratio of 67.4 percent and an expense ratio of 38.4 percent versus 61.9 percent and 37.5 percent, respectively, for the same quarter of 2010.For the three months ended June 30, 2011, net operating earnings of $3.9 million compares to $5.7 million for the same quarter 2010.Invested assets increased 5.5 percent to $863.1 million at June 30, 2011 from $818.5 million at December 31, 2010.Book value at June 30, 2011 rose to $29.76 per diluted share compared to $29 at December 31, 2010.Stephen Crim, president and CEO of American Safety Insurance Holdings, said: “The unprecedented US storm activity during the second quarter negatively impacted financial results for the property and casualty insurance industry.“While our losses did impact the quarterly results, they represented only one percent of our capital on an after tax basis. We continue our product diversification, which has been the driver of our premium growth, and the steady improvement in our expense ratio.”