Axis Capital Holdings Ltd. continued the Bermuda reinsurance sector’s run of strong third quarter results after the record 2005 hurricane season shattered the same period a year ago when it turned a $226.2 million profit.

Axis, which cautioned against comparing the 2005 third quarter with this year’s, posted net income per shares of $1.37 per share. In the third quarter of 2005, the company lost $468.1 million or $3.32 per share.

Operating income for the nine months ended September 30, 2006 was $665.5 million, or $4.07 per share, compared with an operating loss of $138.5 million, or $(0.98) per common share, for the nine months ended September 30, 2005.

Net premiums written increased by 10.2 percent to $2.419 billion, net premiums earned increased by 7.4 percent to $2.0055 billion and the company achieved a combined ratio of 78.5 percent included net favourable prior period reserve development of $182.1 million, or 9.1 percentage points.

“We are extremely pleased to deliver another very strong quarter, bringing year-to-date diluted book value accretion to 17 percent,” Axis CEO and president John Charman said.

“We have achieved disciplined growth in net premiums written of ten percent during the same period with a substantially strengthened underwriting portfolio.”

“As we enter 2007, risk selection, franchise focus and the quality of earnings will continue to be our key drivers. We believe our selectively diverse global underwriting platform is uniquely positioned to continue to extract profitability from a mixed marketplace.

“Our operating results for the quarter ended and for the nine months ended September 30, 2005 were significantly impacted by Hurricanes Katrina and Rita.”

“Consequently, any comparison between these periods and the corresponding periods in 2006 must consider these factors.”

Operating income for the third quarter, which excludes capital transactions, was $228.1 million, or $1.38 per diluted share, compared with an operating loss of $462.2 million, or $(3.27) per common share, for the third quarter of 2005.

“This same item excluding foreign exchange gains (losses), net of tax, for the third quarter of 2006 was $230.8 million, or $1.40 per common share, compared with $(460.8) million, or $(3.26) per common share, for the quarter ended September 30, 2005,” Axis said.

Operating income for the nine months ended September 30, 2006 was $665.5 million, or $4.07 per share, compared with an operating loss of $138.5 million, or $(0.98) per common share, for the nine months ended September 30, 2005.