Bermuda-based AXIS Capital Holdings reported fourth-quarter netincome rose to $281 million from $233 million in the same 2005period.

Reacting to AXIS' results, Bank of America securities analystTamara Kravec wrote that "the key takeaway for us is that Axisgenerated most of the upside from better-than-expected currentperiod underwriting results, as opposed to prior-perioddevelopment."

Ms. Kravec also wrote that both the reinsurance combined ratioof 71.4 and net premium written growth of 23 percent was betterthan expected for the fourth quarter.

Operating highlights for the year ended December 31, 2006included the following:

o Gross premiums written increased by 6.3 percent to $3.6billion.

o Net premiums written increased by 12.4 percent to $3billion.

o Net premiums earned increased by 5.5 percent to $2.7billion.

o Combined ratio of 77.3 included strong accident-year resultsand net favorable prior period reserve development of 8 points.

o Pre-tax net investment income increased by 58.6 percent to$407.1 million.

o Return on average common shareholders' equity was 26.7percent.