Using the 'dressed-atom-dressed-mode' approach and separating the decoupled atomic state, we investigate the statistical properties of a quantum-beat laser without inversion. While the fluctuations of the relative amplitude and phase are retained at their vacuum noise levels, the intensity fluctuations in the sum mode are reduced below the shot noise limit with an optimum Mandel parameter Q = − 1 2 when the laser is operated well above threshold. In particular, we show that the decoupled atomic state significantly relaxes the parameter requirement for squeezing. The physical cause is also explained.