Axis Says Quarterly Net Rose 9%

Axis reported its net income in the fourth quarter increased 9 percent on disciplined underwriting and improved loss development.

The Pembroke, Bermuda-based insurer reported net income rose by $25 million in the fourth quarter to $315 million, or $1.89 per share, a 20 cent a share increase from the same period last year. The company also increased its quarterly cash dividend by two cents to 18.5 cents a share.

Revenues, however, were down in the quarter by less than 1 percent, or $4.3 million, to $805.4 million.

For the year, Axis said net income rose 13 percent, or $129 million, to $1.09 billion, or $6.41 a share, an increase of 78 cents a share. The yearly cash dividend rose 6.5 cents a share to 68 cents.

Revenues for the year rose 5 percent, or $148 million, to $3.23 billion.

Axis' overall combined ratio improved compared to 2006, dropping by 2.9 points to 70.8. Its reinsurance combined ratio segment rose 1.6 points to 73, while insurance combined ratio dropped 7.1 points to 64.3 for the year.

Aside from the net higher prior-year reserve development, the company's performance was also helped by an increase in net investment income for the year of $483 million.

In a statement John Charman, Axis president and chief executive officer, said the company's insurance and reinsurance markets have delivered over $1 billion in annual earnings in just six years since the company's inception.

"This achievement is unparalleled in our sector," he said.