Axis Capital beat analysts' expectations as they posted record first quarter profits of $236.8 million to give a net income per share of $1.37, higher than the $1.16 expected by Thomson Financial.

Axis profit for the first three months of the year was $32 million more than the corresponding period in 2006, when the net income per share was $1.19.

Gross written premiums were also higher at $1.303 billion, up by $138 million year-on-year. That 12 percent improvement was made up two-for-one by reinsurance business compared to insurance business.

The company said the improvement was driven by additional property and liability business within reinsurance.

John Charman, chief executive officer and president of Axis Capital, said: "We are pleased to report that we have delivered an annualised return on average common equity of 22.6 percent for the quarter.

"In the quarter, we continued to aggressively reduce premium writings in areas where competition has been excessive but to grow appropriately when opportunities meet or exceed our underwriting profitability goals. Our execution strategy remains strong."