Axis Capital Holdings has lodged a 31% lift in full-year net income to $US461 million ($518 million) on improved investment returns and reduced reinsurance claims.

Fourth-quarter net income for the Bermuda-based insurer rose to $US282 million ($317 million), up from $US131 million ($146 million) in the previous corresponding quarter.

Investment returns in the fourth quarter were $US118 million ($132 million), a 350% improvement on its 2008 fourth-quarter return, while reinsurance underwriting income grew 9% to $US130 million ($146 million) over the same period.

Axis’ insurance division did not fare as well, with an 11% fall in underwriting income to $US86 million ($96 million) in the fourth quarter. Full-year underwriting income fell more by than half to $US84 million ($94 million) due to heavy third-quarter losses.

Gross written premium for the year increased 9% to $US574 million ($646 million) for the quarter, and by 6% to $US3.6 billion ($4.05 billion) for the year.