NEW YORK (AP) — Shares of Bermuda-based Security Capital Assurance Ltd. reached a new high yesterday after the bond insurer reported increases in fourth-quarter earnings and revenue.Profit of $35.8 million, or 56 cents per share, compared with $27 million — 59 cents per share — in the year-ago period.

Operating income was $37.1 million — 58 cents per share — compared to 2005 fourth-quarter operating income of $30.6 million, or 66 cents per share.

The decrease in net and operating income per share was largely due to additional shares issued during the company's initial public offering in August.

Wall Street analysts expected 57 cents per share, according to a Thomson Financial poll.

Revenue rose to $67.8 million from $55.8 million in the year-ago quarter. The Wall Street consensus was for $71.9 million in revenue.

Net premiums written more than doubled, to $119.4 million, due primarily to new business written by the company's global infrastructure product group.

Banc of America Securities analyst Tamara Kravec kept her "Buy" rating on the company and raised her price target to $34 per share from $31 per share.

"We believe market conditions can only get better from here," she said. "Moreover, there are not many industries that can boast a stable earnings stream despite weak industry conditions."

Security Capital's net income for the year rose to $117.4 million, or $2.18 per share, from $80.4 million or $1.74 per share the year before.

Security Capital shares climbed to $32.23, the highest level since the stock began trading on August 2, before edging down to close at $31.24, up $2.22, or 7.7 percent, on the New York Stock Exchange.