Endurance Q2 Net Income Rises to $149 Million; 1H to $227 Million

Bermuda-based Endurance Specialty Holdings Ltd. reported net income of $149.1 million and $2.42 per diluted common share for the second quarter of 2009, compared to $103.3 million and $1.54 per diluted common share in the second quarter of 2008.

For the six months ended June 30, 2009, net income was $227.4 million and $3.65 per diluted common share, compared to $181.1 million and $2.67 per diluted common share for the six months ended June 30, 2008.

Endurance’s bulletin listed the following operating highlights for the second quarter:
— Gross premiums written of $559.2 million, an increase of 7.9 percent over the same period in 2008;
— Net premiums written of $480.0 million, an increase of 2.3 percent over the same period in 2008;
— Combined ratio of 89.6 percent, which included 8.3 percentage points of favorable prior year loss reserve development;
— Net investment income of $88.8 million, an increase of $28.4 million over the same period in 2008;
— Operating income, which excludes after-tax realized investment gains and losses and foreign exchange gains and losses, of $130.8 million and $2.11 per diluted common share; and
— Operating return on average common equity for the quarter of 5.9 percent, or 23.5 percent on an annualized basis.

Operating highlights for the six months ended June 30, 2009 were listed as follows:
— Gross premiums written of $1,342.5 million, a decrease of 3.2 percent over the same period in 2008;
— Net premiums written of $1,062.9 million, a decrease of 4.3 percent over the same period in 2008;
— Combined ratio of 90.8 percent, which included 9.3 percentage points of favorable prior year loss reserve development;
— Net investment income of $153.4 million, an increase of $46.0 million over the same period in 2008;
— Operating income, which excludes after-tax realized investment gains and losses and foreign exchange gains and losses, of $219.0 million and $3.51 per diluted common share;
— Operating return on average common equity for the first half of the year of 9.9 percent, or 19.7 percent on an annualized basis; and
— Book value of $38.07 per diluted common share, up 15.2 percent from December 31, 2008.

Chairman and CEO Kenneth J. LeStrange commented: “Endurance generated outstanding operating results and growth in book value this quarter, with solid contributions from both of our business segments and very strong investment portfolio results. In the second quarter, we were able to grow our business in several areas due to the strong market position of our insurance and reinsurance operations, the quality of our balance sheet, the continued transition of business to Endurance from larger distressed competitors, and improved pricing in several lines of business. Although markets remain competitive, our short tailed property and catastrophe lines of business have seen strong rate increases, and we continue to see unique opportunities to grow selectively.”

The full report, additional comments and details on accessing the replay to the company’s earnings conference call on July 29 may be obtained on its web site at: www.endurance.bm.

Source: Endurance Specialty Holdings

Topics Profit Loss