Axis Capital Holdings yesterday reported a more than four-fold increase in net income with $117.8 million posted in the second quarter compared to $21.3 million in the same period last year.

The stellar results followed the company's initial public offering (IPO) on the New York Stock Exchange earlier this summer.

Axis president and CEO John Charman said: “We are delighted to have produced such a strong set of financial results for our first reporting period as a public company.

“These results clearly demonstrate the differentiating Axis franchise that has been built over the last 18 months.

“All four of our underwriting segments are now fully operational, each has top quality ratings, excellent staff and well capitalised platforms from which we can not only sustain our profitability but, more importantly, from which we can generate future growth.”

Going public and seeing profit levels jump comes on the heels of the company's metamorphosis from a small start-up after the September 11 tragedy to one with staff now numbering in the hundreds and offices in Bermuda and several other key markets.

Last year the company expanded its horizons to the east and west of Bermuda with its establishment of US operations and a Dublin office from which to write business in the European market.

At the same time as branching out to different parts of the world, AXIS also diversified its book of business with acquisition of the renewal rights to Directors & Officers and related product lines from Kemper's Financial Insurance Solutions Group.

Alongside this growth, the company - on a consolidated basis - wrote $551.5 million in gross premiums during the quarter, a solid increase over the same period the year before when AXIS recorded $260.7 million in gross premiums written.

The company ceded more than $100 million of its second quarter, 2003 business to reinsurers for a net premiums written total of $449.8 million compared to $233.9 million during the same period in 2002.

Breaking down how much money the company made on each dollar of business it underwrote, Axis said its combined ratio for the quarter stood at 81.5 percent, an improvement over the 92.4 percent recorded during the second quarter last year.

On the investment side, the company said in the first six months of the year realised $54.2 million compared with $43.3 million in the first half of 2002.

Revenues for the period stood at $377.3 million in contrast to $117.21 million during the same quarter of 2002 and expenses coming in at $260.42 million and $87.2 million for the second quarter period of 2003 and 2002 respectively.

Bermuda-based Axis said it is a provider of specialty lines insurance and treaty reinsurance, with shareholders' equity in excess of $2.2 billion.