Max Capital Group broke its profits record after posting an impressive net income of more than $300 million for 2007.

The Bermuda-based insurance and reinsurance company saw its net income rise by almost $100 million from $216.9 million or $3.43 per fully diluted share for the year ended December 31, 2006 to $303.2 million or $4.75 per share last year.

But, its net income for the fourth quarter of 2007 was actually down at $62.4 million or $1 per share compared to $95.4 million or $1.50 per share for the same period in 2006.

This follows the retirement of founder and former CEO Robert Cooney after the company announced restated five years of earnings between 2001 and 2005 following a company probe into finite reinsurance contracts.

Marston Becker, chairman and CEO of Max Capital, said: "We are extremely pleased that 2007 was a record year for Max. Strong underwriting performance coupled with outstanding investment returns combined to produce the highest net income and return on shareholders' equity in Max's history.

"Our specialty insurance / reinsurance business model, together with our diversified investment strategy, continues to serve our stakeholders well.

"We expect to extend this success into 2008 by maintaining our disciplined underwriting approach in the softening market.

"The addition in 2007 of Max Specialty and its excess and surplus lines plus its inland marine and ocean cargo teams, place us in an excellent position for property and casualty premium growth and further diversification in 2008 and beyond."

Gross premiums written for the fourth quarter were $400.2 million, of which $161.8 million came from property and casualty underwriting and $238.4 million from life and annuity underwriting.

That total was up from $147.5 million during the corresponding time the previous year, which was made up of $146.6 million in property and casualty underwriting and $900,000 of life and annuity underwriting.

The increase in gross premiums written was down to a rise in the life and annuity business written and earned, which more than offset the lower volume of gross property and casualty premium written and the increase in the company's use of reinsurance.

MAX CAPITAL 4Q

REPORT CARD

Net income: $62.4 million compared to $95.4 million in 2006

Combined ratio: 94.9 percent compared to 90.1 percent in 2006

Gross premiums written: $400.2 million compared to $147.5 million in 2006