Axis Capital Holdings Ltd. more than doubled its profits for the fourth quarter of 2009 as reinsurance and investment income rose and the global financial markets started to recover.

The re/insurer reported net income of $282 million, or $1.87 per share, for the fourth quarter compared to $131 million, or 88 cents per share, for the same period in 2008.

Net income for 2009 was $461 million, or $3.07 per share, versus $351 million, or $2.26 per share, for the prior year.

Operating income for the fourth quarter was $276 million or $1.83 per share compared with $163 million or $1.09 per share for the fourth quarter of 2008.

Operating income for the full year of 2009 was $766 million or $5.10 per share compared with $436 million or $2.81 per share for 2008.

John Charman, CEO and president of Axis, said: "I am delighted to report excellent fourth-quarter results. Against the backdrop of extremely challenging competitive conditions as well as increased loss activity from lines impacted by the global financial crisis, we have delivered record quarterly operating earnings per share strongly supported by our highest level of underwriting profit.

"For the year, we delivered an operating return on average common equity of 17.1 percent and a 31 percent increase in diluted book value per share from very good property and casualty underwriting results and strong performance from our investment portfolio."

Gross premiums written increased nine percent in the quarter to $574 million and by six percent to $3.6 billion for the year, with total underwriting income for the quarter of $216 million, unchanged from the prior year quarter. However, for the full year, total underwriting income rose by 71 percent to $525 million.

The company's combined ratio was 77.5 percent for the quarter and 79.3 percent for the full year, with net investment income in the quarter of $118 million compared to net investment losses of $26 million in the prior year quarter, and up 88 percent for the year to $464 million.

The total return on its cash and investments portfolio was 1.1 percent for the quarter and 8.5 percent for the full year.

Shareholders' equity was $5.5 billion, an increase of two percent from September 30, 2009 and 23 percent from December 31, 2008.

Axis's insurance segment reported underwriting income for the quarter of $86 million, down 11 percent from the fourth quarter of 2008, with the current quarter underwriting result reflected a combined ratio of 81.6 percent versus 60.2 percent in the previous year quarter.

The company's reinsurance segment , however, posted underwriting income for the quarter of $130 million, up nine percent from the fourth quarter of 2008, driven by a 12 percent growth in net premiums earned relative to the prior year quarter.

Meanwhile net investment income for the quarter was $118 million, compared to $26 million in net investment losses in the prior year quarter. For the full year, net investment income increased 88 percent to $464 million.