Endurance Q3 Net $131.4 Million

Bermuda’s Endurance Specialty Holdings Ltd. reported net income of $131.4 million and $1.81 per diluted common share for the third quarter of 2007 versus net income of $128.2 million and $1.74 per diluted common share in the third quarter of 2006.

For the nine months ended September 30, 2007, net income was $368.6 million and $5.02 per diluted common share versus net income of $299.3 million and $4.03 per diluted common share for the nine months ended September 30, 2006.

The Company listed the following “Operating Highlights” for the period:
— Total premiums written of $423.8 million, which include gross premiums written and deposit premiums, decreased 12.2 percent over the same period in 2006;
— Total ceded premiums of $45.7 million versus $90.8 million in the third quarter of 2006;
— A combined ratio of 79.6 percent which included 9.4 percentage points of favorable prior year loss reserve development;
— Net investment income of $62.6 million, a decrease of 1.5 percent over the same period in 2006;
— Operating income, which excluded after-tax realized investment gains and losses and foreign exchange gains and losses, of $133.9 million and $1.85 per diluted common share; and
— Operating return on average common equity for the quarter of 5.8 percent, or 23.1 percent on an annualized basis.

Operating highlights for the first nine months ended September 30, 2007 were listed as follows:
— Total premiums written of $1.5271 billion, which included gross premiums written and deposit premiums, decreased 7.5 percent over the same period in 2006;
— Total ceded premiums of $143.9 million versus $161.7 million for the nine months ended September 30, 2006;
— A combined ratio of 81.6 percent which included 10.1 percentage points of favorable prior year loss reserve development;
— Net investment income of $216.0 million, an increase of 16.5 percent over the same period in 2006;
— Operating income, which excluded after-tax realized investment gains and losses and foreign exchange gains and losses, of $380.2 million and $5.18 per diluted common share; and
— Operating return on average common equity for the period of 16.7 percent, or 22.2 percent on an annualized basis.

Chairman and CEO Kenneth J. LeStrange commented: “I am very pleased with the strong financial results that Endurance achieved during the third quarter. Although increased levels of competition appear likely as we move forward into the end of 2007 and 2008, I am confident that our specialty focus, our disciplined underwriting approach and our agile response to market opportunities will serve us well in the face of fluctuating market conditions.

“During the third quarter, we announced several strategic initiatives, including our pending acquisition of ARMtech Insurance Services Inc., a specialty writer of U.S. federally sponsored crop insurance, the addition of specialty insurance and reinsurance underwriting teams and a variable forward equity transaction. We believe these initiatives will enhance Endurance’ s specialty underwriting capabilities and financial flexibility in 2008 and beyond.”

The complete financial statement and supplements are available on the Company’s web site at: www.endurance.bm. A telephone replay of the earnings conference call is also available on the web site, or by dialing (888) 203-1112 or (719) 457-0820 (international) and entering the pass code: 3374283.

Source: Endurance

Topics Profit Loss Excess Surplus