The earthquakes in NZ and Chile last year have dented reinsurance income for Bermuda-based Axis Capital Holdings.

The group reported says the quarter to December 31 saw underwriting income from reinsurance fall 50% compared with the corresponding period in 2009, dropping to $US65 million ($64.8 million) as a result of the earthquake losses.

The full-year reinsurance underwriting income figure was $US199 million ($198.3 million), compared with $US440 million ($438.5 million) in 2009.

The insurance segment earned underwriting income of $US68 million ($67.8 million) for the quarter, down 21%. But the figure more than doubled for the year to $US210 million ($209.3 million).

Net investment income for the full year fell 12% to $US407 million ($405.5 million).

The group increased net income to $US820 million ($817 million) in 2010, up from $US461 million ($459.3 million) the previous year.

CEO John Charman says the result has come after five years with a difficult economic environment, challenging times for general insurance and reinsurance and a few costly and active catastrophe years.

But he says the group has invested heavily in its global underwriting platform in readiness for when the market turns.