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

Reacting to AXIS' results, Bank of America securities analyst Tamara Kravec wrote that "the key takeaway for us is that Axis generated most of the upside from better-than-expected current period underwriting results, as opposed to prior-period development."

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

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

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

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

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

o Combined ratio of 77.3 included strong accident-year results and 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 26.7 percent.

Special Reports /

Axis 4th Qtr. Growth Strong

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