Analysts underestimated by $300 million how much revenue Bermuda-based Axis Capital Holdings Limited would generate in the fourth quarter of 2006.

The firm revealed after trading yesterday that its net income for the final portion of the year had risen 22 percent to $209 million on revenue of $809.6 million.

That was way above the predictions of $508.4 million revenue analysts polled by Thomson Financial had forseen.

And for Axis it was a gave a final flurry to its 2006 achievements which contrasted markedly with the hurricane-fraught difficulties of 2005 when the destructive storms Katrina, Rita and Wilma battered the firm?s bottom line. John Charman, chief executive officer and president of Axis Capital, said: ?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.?

Axis reported net income available to common shareholders of $925.8 million, or $5.63 per diluted common share for 2006, compared with net income of $90.1 million, or $0.57 per diluted common share, for 2005.

Net income available to common shareholders for the fourth quarter of 2006 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.

Operating income for 2006 was $949.8 million compared with $105.2 million for 2005.

Axis? operating achievement for 2006 make impressive reading with gross premiums written up by 6.3 percent to $3.6 billion; net premiums written increased by 12.4 percent to $2.98 billion; net premiums earned increased by 5.5 percent to $2.69 billion for a combined ratio of 77.3 percent.