Bermuda reinsurers report increased profits

PEMBROKE, Bermuda--AXIS Capital Holdings Ltd. and PartnerRe Ltd., both based in Pembroke, Bermuda, each reported improved year-end and fourth-quarter results Monday.

AXIS reported $963.1 million in net income for 2006, an increase from $94.4 million in 2005. Revenues increased 10.4% to $3.08 billion, while net premiums written for the year increased 12.4% to $2.99 billion. AXIS reported a 77.3% combined ratio for 2006, compared with a 101.8% combined ratio for 2005, which was affected by the string of hurricanes that hit the United States that year.

For the quarter, AXIS posted $290.2 million in net income, a 22% increase. Revenues increased 7.2% to $809.6 million. Net premiums written for the quarter increased 23%, to $570.2 million. AXIS reported a 71.4% combined ratio for the fourth quarter, compared with 71.9% for the comparable period in 2005.

PartnerRe reported $749.3 million in net income for 2006, compared with a $51.1 million loss in 2005. Revenues decreased 0.4% to $4.19 billion, while net premiums written for the year increased 2% to $3.69 billion. The reinsurer's nonlife combined ratio improved to 84.6% from 115.9% in 2005.

For the fourth quarter, PartnerRe's net income increased to $242.7 million from a $33.6 million loss. Revenues increased 7.2% to $1.15 billion. Net premiums written increased 8.2% to $721.3 million. The company's nonlife combined ratio improved to 80.3% from 119.9% for the comparable quarter a year ago.