Axis Capital Holdings' chief executive officer John Charman has been rewarded for his company's record profits last year with an extension to his tenure in the top job.

A new employment agreement announced by Axis yesterday will keep Mr. Charman as CEO and president through the end of 2013.

Earlier this month, Axis announced profits of more than $1 billion for 2007, which was the insurance and reinsurance company's sixth year in business. Mr. Charman founded Axis in 2001.

Axis chairman Michael Butt said: "The board and I are extremely pleased that Axis Capital will continue under John's strong leadership."

He said the company "continues to perform exceptionally well under John's focused guidance and, indeed, the results speak for themselves".

"Since John founded the Company in 2001, Axis Capital has completed six consecutive years of continuous progress in becoming one of the leading specialty insurance and reinsurance companies in the world and our shareholders have received excellent returns on their investment in Axis Capital.

"We believe this extension of John's employment agreement will continue to provide our shareholders long-term value as John leads Axis Capital in continuing to execute the strategy developed upon inception of the company."

Mr. Charman's compensation package amounted to around $10.8 million in 2006.

"I am very proud that I have been asked by our board of directors to continue to lead this wonderful company and its outstanding staff," Mr. Charman said yesterday.

"Never before in our industry has so much embedded and sustainable value been created in such a focused and coordinated manner. I believe the critical combination of a strong board, a powerful and deep management team and smart, diligent professionals throughout Axis will allow us to continue to drive industry-leading shareholder value."

Mr. Charman has also been in the news this year over his £48 million divorce settlement. The UK's Court of Appeal ordered him to pay the sum to his ex-wife Beverly, in the biggest divorce payment in British history.