Bermuda-based Endurance Specialty Holdings reported net income of $111.2 million and $2.09 per diluted common share for the fourth quarter of 2010, compared to net income of $154.8 million and $2.56 per diluted common share for the fourth quarter of 2009.
For the year ended December 31, 2010, net income was $364.7 million and $6.38 per diluted common share compared to net income of $536.1 million and $8.69 per diluted common share for the year ended December 31, 2009.
Operating highlights for the quarter ended December 31, 2010 were listed as follows:
• Net premiums written of $158.1 million, an increase of 8.0 percent over the same period in 2009;
• Combined ratio of 84.6 percent, which included 5.2 percentage points of favorable prior year loss reserve development;
• Net investment income of $56.9 million, a decrease of $2.4 million from the same period in 2009;
• Operating income, which excludes after-tax realized investment gains and losses and foreign exchange gains and losses, of $108.3 million and $2.04 per diluted common share;
• Operating return on average common equity for the quarter of 3.9 percent, or 15.6 percent on an annualized basis; and
• Book value of $52.74 per diluted common share, up 1.76 percent from September 30, 2010.
Operating highlights for the full year were as follows:
• Net premiums written of $1,763.7 million, an increase of 9.8 percent over 2009;
• Combined ratio of 88.7 percent, which included 7.3 percentage points of favorable prior year loss reserve development;
• Net investment income of $200.4 million compared to $284.2 million for full year 2009;
• Operating income, which excludes after-tax realized investment gains and losses and foreign exchange gains and losses, of $345.5 million and $6.03 per diluted common share;
• Operating return on average common equity of 12.6 percent; and
• Book value of $52.74 per diluted common share, an 18.2 percent increase from December 31, 2009.
CEO David Cash commented, “2010 was a strong year for Endurance both financially and strategically. The Company earned a 12.6 percent operating return on equity despite a number of large industry catastrophe losses and historically low fixed income yields, launched several strategic initiatives that will help extend our portfolio of specialty businesses and grew book value per share significantly.”
The earnings bulletin also noted a “decline of $6.8 million in net premiums written in the Insurance segment in the fourth quarter of 2010 compared to the fourth quarter of 2009 was predominantly due to reduced premiums in the property and professional lines of business, as pricing pressure led to the non-renewal of business that no longer met our return objectives.
“Partially offsetting this reduction was modest growth in the agriculture, casualty and healthcare lines of business. For the year ended December 31, 2010, net written premiums increased $89.6 million compared to a year ago as significant growth within the agriculture and property lines resulted from retaining more business on a net basis in the current year. The Company also experienced modest growth within the casualty and healthcare liability lines of business, partially offset by a decline in the professional line of business.”
Source: Endurance Specialty Holdings
Topics Profit Loss Agribusiness
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