Endurance Reports Q1 Net Income of $100.3M, Up From $96.3M in Q1 2014

May 5, 2015

Endurance Specialty Holdings Ltd. reported net income available to common shareholders of $100.3 million and $2.23 per diluted common share for the first quarter of 2015 versus net income of $96.3 million and $2.17 per diluted common share for the first quarter of 2014. Book value per diluted share was $62.79 at March 31, 2015, up 2.4 percent from December 31, 2014.

Operating highlights for the quarter ended March 31, 2015 were as follows:

  • Gross premiums written of $1,3 billion, an increase of 12.4 percent compared to the same period in 2014, or an increase of approximately 16.0 percent when excluding the impact of foreign currency changes;
  • Net premiums written of $765.0 million, a decline of 4.2 percent compared to the same period in 2014;
  • Combined ratio of 82.4 percent, which included 14.7 percentage points of favorable prior year loss reserve development and 1.8 percentage points of net catastrophe losses from 2015 events;
  • Net investment income of $41.9 million, an increase of $0.9 million from the same period in 2014;
  • Operating income, which excludes after-tax realized investment gains and losses and foreign exchange losses, of $91.2 million and $2.03 per diluted common share; and
  • Operating return on average common equity for the quarter of 3.3 percent or 13.0 percent on an annualized basis.

John R. Charman, chairman and chief executive officer, commented, “During the first quarter we generated excellent results with double digit percentage growth in gross premiums written across our specialty businesses, 3.0 percent growth in book value per share plus dividends, and an annualized operating ROE of 13.0 percent. In the first quarter we announced our acquisition of Montpelier Re, which we expect to significantly accelerate our global transformation, building on the strong growth and momentum that we have achieved over the last two years. The addition of Montpelier’s high quality underwriting portfolio along with the added strategic capabilities, breadth of distribution and new underwriting platforms will better enable us to increase our scale and relevance to our clients and distribution partners while aiding us in delivering superior returns to our shareholders.”

Insurance Segment

Operating highlights for Endurance’s insurance segment for the quarter ended March 31, 2015 were as follows:

  • Gross premiums written of $736.2 million, an increase of 12.9 percent from the first quarter of 2014;
  • Net premiums written of $304.0 million, a decline of 11.4 percent from the first quarter of 2014; and
  • Combined ratio of 90.6 percent, which included favorable prior year loss reserve development of 15.2 percentage points and net catastrophe losses from 2015 events of $4.4 million or 3.3 percentage points.
Reinsurance Segment

Operating highlights for Endurance’s reinsurance segment for the quarter ended March 31, 2015 were as follows:

  • Gross premiums written of $565.2 million, an increase of 11.9 percent from the first quarter of 2014;
  • Net premiums written of $460.9 million, an increase of 1.1 percent from the first quarter of 2014; and
  • Combined ratio of 78.0 percent, which included favorable prior year loss reserve development of 14.4 percentage points and net catastrophe losses from 2015 events of $2.7 million or 1.1 percentage points.

Source: Endurance Specialty Holdings Ltd.

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