Bermuda-based Endurance Specialty Holdings Ltd. reported a net loss of $377 million or $6.26 per diluted share for the third quarter of 2005 versus net income of $26.8 million or $0.40 per diluted share in the third quarter of 2004.
“In the third quarter of 2005, the operating loss, which excludes after-tax realized investment gains and losses and foreign exchange gains and losses, was $377.8 million or $6.27 per diluted share versus operating income of $23.7 million or $0.36 per diluted share in the third quarter of 2004,” the bulletin continued.
“For the nine months ended September 30, 2005, the net loss was $170.7 million or $2.81 per diluted share versus net income of $242.5 million or $3.58 per diluted share for the first nine months of 2004. The operating loss for the first nine months of 2005 was $163.3 million or $2.69 per diluted share versus operating income of $240.0 million or $3.54 per diluted share for the first nine months of 2004. Endurance’s operating return on average equity was (9.6) percent for the nine months ended September 30, 2005.”
Chairman and CEO Kenneth J. LeStrange commented: “Endurance’s results this quarter were clearly dominated by the losses arising from Hurricane Katrina, the largest loss experienced by the insurance industry in recorded history. With the successful execution of our $600 million capital plan, however, we have restored our capitalization to pre-event levels in a manner that minimizes dilution to our existing shareholders and maintains our conservative financial position for our clients. Our capital position is strong and balanced and we believe we are well positioned to take advantage of potential future market opportunities.”
The company also noted: “Gross premiums written were $370.6 million for the quarter ended September 30, 2005 compared to $367.9 million for the third quarter of 2004. For the first nine months of 2005, Endurance had gross premiums written of $1.5 billion, up 2.6 percent from the first nine months of 2004. Earned premiums in the quarter were $441.2 million, an increase of 7.7 percent from the third quarter of 2004. Reported gross premiums written in the third quarter of 2005 did not include $35.3 million in premiums accounted for under deposit accounting and included $34.5 million in reinstatement premiums as a result of hurricanes Katrina and Rita.”
Just how badly Katrina and Rita affected Bermuda’s insurers shows up in Endurance’s combined ratio figures – a whopping 204.4 percent in the third quarter of 2005, compared to 103 percent in the third quarter of 2004. The loss ratio was 177.8 percent in the quarter 2005, compared to 75.3 percent in the third quarter of 2004.
Endurance will host a conference call on Thursday, October 27, 2005 at 8:30 AM EDT to discuss its financial results. The conference call can be accessed via telephone by dialing (800) 289-0494 (toll-free) or (913) 981-5520 (international). Those who intend to participate in the conference call should register at least ten minutes in advance to ensure access to the call. A telephone replay of the conference call will be available through November 10, 2005 by dialing (888) 203-1112 (toll-free) or (719) 457-0820 (international) and entering the pass code: 1841730.
The complete earnings report is available on the company’s Website at: www.endurance.bm. ;as is access to the conference call.
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