Bermuda-based AXIS Capital Holdings Limited reported net income available to common shareholders of $925.8 million, or $5.63 per diluted common share for the year ended December 31, 2006, compared with net income of $90.1 million, or $0.57 per diluted common share, for the year ended December 31, 2005.
Fourth quarter net income available to common shareholders was $281.0 million, or $1.69 per diluted share, compared with net income of $233.5 million, or $1.47 per diluted share, for the corresponding period in 2005.
AXIS duly noted that its “prior year results were significantly impacted by losses incurred from Hurricanes Katrina, Rita and Wilma,” or “KRW”.
Operating income for 2006 was $949.8 million, or $5.78 per diluted share, compared with $105.2 million or $0.67 per diluted common share for 2005. This same item excluding foreign exchange gains (losses), net of tax, for 2006 was $919.0 million, or $5.59 per diluted common share, compared with $157.6 million, or $1.00 per diluted common share, for 2005.
AXIS also noted the following “Operating highlights” for 2006:
— Gross premiums written increased by 6.3 percent to $3.609 billion;
— Net premiums written increased by 12.4 percent to $2.9892 billion;
— Net premiums earned increased by 5.5 percent to $2.6943 billion;
— Combined ratio of 77.3 percent included strong accident year results and net favorable prior period reserve development of 8.0 percentage points;
— Pre-tax net investment income increased by 58.6 percent to $407.1 million;
— Return on average common shareholders’ equity was 26.7 percent; and
— Diluted book value per common share increased by 25.2 percent to $24.02.
President and CEO John Charman offered the following comments on the strong results: “I am pleased to announce record earnings for AXIS Capital for 2006 resulting in an increase in diluted book value per common share of 25 percent. All of us at AXIS are committed to producing market-leading profitability and we will continue to develop our high-quality diverse global underwriting portfolio through 2007. Absent major catastrophic events, we expect 2007 results to be very positive and to continue to produce meaningful book value growth in line with our overall performance since inception.”
The full report, additional information and a replay of the investors conference call may be obtained on the Company’s web site at: http://www.axis.bm.
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