Q3 Earnings Reports: Montpelier Re; Everest Re; Endurance Specialty

October 28, 2011

Montpelier Re:
                                                    Q3 2011    Q3   2010
Gross premiums written–      $162.5 mn $133.4 mn
9 months - 2011 –    2010
                $633.8 mn $617.7 mn

Net premiums written -       $121.6 mn $119.7 mn
9 months – 2011           2010
               $542.4 mn $577.6 mn
Net Income (loss)   —–        ($62.9 mn)     $90.0 mn
9 months    2011            2010
               ($143.6 mn) $169.8mn
Underwriting income (loss)    ($33.5 mn)    $47.9 mn
9 months   2011          2010
            ($168.3 mn) $70.2 mn
                                         Q3 2011    Q3 2010
Net capital gains (losses) ($31.3mn ) $29.4 mn
9 months   2011          2010
                ($5.3 mn) $66.8 mn
Net investment income      $17 mn    $18.7 mn
9 months   2011          2010
                $51.6 mn   $57.5 mn

Q3 Combined ratio: 121.5 percent (69.4 percent in Q3 2010)
9 months combined ratio: 135.5 percent (84.8 percent in 2010)

President and CEO Christopher Harris commented: “While it’s disappointing to report an operating loss, the third quarter was a dynamic period for Montpelier. We agreed to sell our U.S. operation, acquired a property catastrophe reinsurance portfolio from a competitor, and expanded our capital partnership relationships. We believe these recent actions sharpen our underwriting focus, enhance our capital flexibility, and improve our competitive positioning as we head into 2012.”

The full report, as well as additional and supplemental information and instructions for accessing the earnings conference call may be obtained on the company’s website at: www.montpelierre.bm.

Everest Re:
                                                 Q3 2011    Q3   2010
Gross premiums written–    $1.13 bn $1.096 bn (estimate)
9 months - 2011 – 2010
                    N/A         N/A
Premiums earned —           $1.044 bn   $997.26 mn
9 months – 2011           2010
               $3.0956 bn $2.9145 bn
Net Income (loss) ——–           $63.1 mn $174.2 mn
9 months    2011            2010
             ($121.5 mn )    $308.2 mn
Operating income                      $146.7 mn    $149.2 mn
9 months   2011          2010
            $176.7 mn   $361.5 mn
                                                           Q3 2011     Q3 2010
Net realized capital gains (losses) ($137.7 mn) $38.3 mn
9 months   2011            2010
              ($130.36 mn) $69.32 mn
Net investment income   –           $156.46 mn $141.37 mn
9 months   2011            2010
             $493.79 mn $468.62 mn

Q3 Combined ratio: 95.6 percent (95.9 percent in Q3 2010)

Everest Re’s earnings report also noted that it had received a tax benefit of $53.66 million.

Chairman and CEO Joseph V. Taranto commented: “We are pleased to have generated operating income of $147 million for the quarter, driven by both strong underwriting results, with a combined ratio of 95.6 percent, and solid investment earnings, which were up 11 percent over last year. We expect property reinsurance rates to continue to rise into 2012 in response to 2011 catastrophe losses. We will continue to reposition our portfolio to respond to market opportunities.”

The full report, as well as additional and supplemental information and instructions for accessing the earnings conference call may be obtained on the company’s web site – website at: www.everestre.com.

Endurance Specialty:
                                               Q3 2011    Q3   2010
Gross premiums written– $700.86 mn $555.6 mn)
9 months - 2011 – 2010
              $2.204 bn $1.864 bn
Net Premiums earned —   $561.5 mn   $469.8 mn
9 months – 2011           2010
                $1.431 bn $1.291 bn
Net Income (loss) ——–       ($28.2 mn) $135.25 mn
9 months    2011            2010
             ($66.358 mn)    $241.885 mn
Operating income (loss)         ($24.7 mn)
9 months   2011 ($96.9 mn)
                                                       Q3 2011     Q3 2010
Net realized capital gains         $1.033 mn      $8.973 mn
9 months   2011            2010
              $26.34 mn    $15.174 mn
Net investment income   –            $14.1 mn $53.654 mn
9 months   2011            2010
             $106.443mn $143.484 mn

Q3 Combined ratio: 104.6 percent (113 percent for 9 months)

CEO David Cash commented, “The third quarter was a tough one for the industry, as we saw continued frequency of severe catastrophe events and adverse weather conditions, combined with historically low interest rates, global economic uncertainty and a competitive marketplace. Endurance has been able to withstand these challenges, and continues to maintain a very strong balance sheet with prudent reserves and a high quality, short duration investment portfolio. We have selectively expanded our business within profitable niches while reducing those business lines where returns were below our targets.”