Endurance Reports $20 Million Q3 Net Loss
Bermuda’s Endurance Specialty Holdings Ltd this week reported a net loss of $20.0 million and $0.71 per diluted common share for the third quarter of 2011 versus net income of $139.1 million and $2.51 per diluted common share in the third quarter of 2010.
For the nine months ended September 30, 2011, the net loss was $66.4 million and $2.07 per diluted common share versus net income of $253.5 million and $4.33 per diluted common share for the nine months ended September 30, 2010.
Operating highlights for the quarter ended September 30, 2011 were as follows:
- Net premiums written of $551.3 million, an increase of 22.0% over the
- same period in 2010;
- Combined ratio of 104.6%, which included 17.5 percentage points of
- catastrophe losses partially offset by the benefit of 7.9 percentage
- points of favorable prior year loss reserve development;
- Net investment income of $14.1 million, a decrease of $39.6 million over the same period in 2010;
- An operating loss, which excludes after-tax realized investment gains
- and losses and foreign exchange gains and losses, of $24.7 million and
- $0.83 per diluted common share;
- An operating loss on average common equity for the quarter of 1.5%; and
- Book value of $51.63 per diluted common share, down 1.1% from June 30,
- 2011.
Operating highlights for the nine months ended September 30, 2011 were as follows:
- Net premiums written of $1,792.0 million, an increase of 11.6 % over the same period in 2010;
- Combined ratio of 113.0%, which included 24.9 percentage points of
- catastrophe losses partially offset by the benefit of 9.6 percentage
- points of favorable prior year loss reserve development;
- Net investment income of $106.4 million, a decrease of $37.0 million
- over the same period in 2010;
- An operating loss, which excludes after-tax realized investment gains and losses and foreign exchange gains and losses, of $96.9 million and $2.83 per diluted common share;
- An operating loss on average common equity for the first nine months of the year of 4.6%; and
- Book value of $51.63 per diluted common share, down 2.1% from December 31, 2010.
David Cash, CEO, 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.”
Endurance Specialty Holdings Ltd. is a global specialty provider of property and casualty insurance and reinsurance.
Through its operating subsidiaries, Endurance writes property, casualty, healthcare liability, agriculture, workers’ compensation, professional lines of insurance and property, catastrophe, casualty, agriculture, marine, aerospace, and surety and other specialty lines of reinsurance.
Endurance has received ratings of A (Excellent) from A.M. Best (XV size category) and A (Strong) from Standard and Poor’s on its principal operating subsidiaries.
Endurance’s headquarters are located at Wellesley House on Pitts Bay Road.
