Endurance Posts $135.3 Million Q2 Net

Bermuda-based Endurance Specialty Holdings Ltd. reported net income of $135.3 million and $1.85 per diluted common share for the second quarter of 2007 versus net income of $64.1 million and $0.85 per diluted common share in the second quarter of 2006.

For the six months ended June 30, 2007, net income was $237.2 million and $3.22 per diluted common share versus net income of $171.1 million and $2.29 per diluted common share for the six months ended June 30, 2006.

The report cited the following “operating highlights” for the quarter:
— Total premiums written of $526.8 million, which include gross premiums written and deposit premiums, increased 5.9 percent over the same period in 2006;
— Total ceded premiums were $58.6 million versus $42.6 million in the second quarter of 2006;
— A combined ratio of 79.0 percent which includes 6.6 percentage points of favorable prior year loss reserve development;
— Net investment income of $78.5 million, an increase of 30.3 percent over the same period in 2006;
— Operating income, excluding after-tax realized investment gains and losses and foreign exchange gains and losses, was $141.2 million and $1.94 per diluted common share; and
— Operating return on average common equity for the quarter was 6.3 percent, or 25.3 percent on an annualized basis.

Endurance also listed the “operating highlights” for the six months ended June 30, 2007 as follows:
— Total premiums written of $1,103.3 million, which include gross premiums written and deposit premiums, decreased 5.5 percent over the same period in 2006;
— Total ceded premiums were $98.2 million versus $70.9 million for the six months ended June 30, 2006;
— A combined ratio of 82.7 percent which includes 10.5 percentage points of favorable prior year loss reserve development and 5.1 percentage points of net catastrophe losses related to Windstorm Kyrill;
— Net investment income of $153.4 million, an increase of 25.9 percent over the same period in 2006;
— Operating income, excluding after-tax realized investment gains and losses and foreign exchange gains and losses, was $246.4 million and $3.35 per diluted common share; and
— Operating return on average common equity for the period was 11.2 percent, or 22.3 percent on an annualized basis.

Chairman and CEO Kenneth J. LeStrange commented: “Endurance produced exceptional financial results in the second quarter of 2007. Our specialty focus continues to generate strong underwriting results, and we believe this specialty focus has allowed us to create a portfolio that is well balanced between risk and reward. We will continue to be resourceful in identifying attractive new business, diligent in retaining our existing business and proactive in non-renewing business that no longer meets our underwriting requirements.”

The bulletin noted that the “5.9 percent increase in total premiums written in the second quarter of 2007 over the same period in 2006 resulted primarily from continued growth in the Insurance business segment partially offset by declines in the Reinsurance business segment. The 5.5 percent decrease in total premiums written for the six months ended June 30, 2007 compared to the six months ended June 30, 2006 was driven by lower Reinsurance business segment premiums partially offset by an increase in premiums in the Insurance business segment.”

The full report may be obtained on the Company’s web site at: www.endurance.bm, as well as a replay of the earnings conference call held August 12, 2007. The conference call will be available through August 15 by dialing (888) 203-1112 (toll-free) or (719) 457-0820 (international) and entering the pass code: 2421345.

Source: Endurance