‘Successful’ year for Endurance

Endurance Specialty Holdings has revealed a net income for 2007 of $521.1 million and $7.17 per diluted common share. This was an increase on 2006, which saw a net income of $498.1 million and $6.73 per diluted common share.

Their fourth quarter performance fared less well, with net income down $46.3 million compared to the same period in 2006, and a $0.52 reduction per diluted common share compared to the same period in 2006.

Total premiums written by the company in 2007 reached $1,809.7 million, and their total ceded premiums reached $206.1 million. Their combined ratio for the year was 79.9%; this includes 10 percentage points of favourable prior year loss reserve development. Their net investment income totalled $281.3 million, up 9.3% compared to 2006. Operating income, which excludes after tax realised investment gains and losses, and foreign exchange gains and losses, were $541.0 million, and $7.45 per diluted share. Their operating return on average common equity was 23.8%.

Chairman and CEO of Endurance, Kenneth LeStrange, said of the results: “The past year was very successful for Endurance on many fronts. Financially, we generated record earnings driven by strong underwriting and investment results, we returned over $375 million of capital to our shareholders through share repurchases and dividends and our financial strength rating was upgraded to A by AM Best.

“Strategically, we continued to expand our expertise through the hiring of several seasoned specialty underwriting teams and acquired ARMtech Insurance Services, Inc., the fifth largest provider of federally-sponsored crop insurance in the United States. Looking forward to 2008, I expect Endurance’s agility and specialty focus to differentiate us from our peers in an increasingly competitive market. We will remain steadfast in our approach to specialized technical underwriting, resourceful in identifying attractive new business opportunities and diligent in retaining our existing business at appropriate margins.”

Category: Endurance News, Insurance News