Endurance Reports Q2 2014 Financial Results
Bermuda-based Endurance Specialty Holdings Ltd. today reported net income available to common shareholders of $75.0 million and $1.68 per diluted common share for the second quarter of 2014 versus net income of $52.8 million and $1.21 per diluted common share for the second quarter of 2013.
For the six months ended June 30, 2014, Endurance reported net income available to common shareholders of $171.3 million and $3.84 per diluted common share versus net income of $144.9 million and $3.34 per diluted common share for the six months ended June 30, 2013. Book value per diluted share was $60.00 at June 30, 2014, an increase of 4.3% from March 31, 2014 and up 8.7% from December 31, 2013.
Operating highlights for the quarter ended June 30, 2014 were as follows:
- Gross premiums written of $689.4 million, an increase of 20.4% compared to the same period in 2013;
- Net premiums written of $511.4 million, an increase of 10.1% compared to the same period in 2013;
- Combined ratio of 88.1%, which included 11.3 percentage points of favorable prior year loss reserve development, 5.6 percentage points of catastrophe losses from 2014 events and 2.5 percentage points of expenses related to the proposed acquisition of Aspen Insurance Holdings Limited ["Aspen"];
- Net investment income of $39.3 million, an increase of $6.8 million from the same period in 2013;
- Operating income, which excludes after-tax realized investment gains and foreign exchange losses, of $71.9 million and $1.61 per diluted common share;
- Operating return on average common equity for the quarter of 2.7% or 10.9% on an annualized basis; and
- Excluding $12.8 million of expenses related to the proposed acquisition of Aspen, operating income of $84.7 million and $1.90 per diluted common share and operating return on average common equity of 3.2% for the quarter or 12.9% on an annualized basis.
Operating highlights for the six months ended June 30, 2014 were as follows:
- Gross premiums written of $1,846.9 million, an increase of 5.5% over the same period in 2013;
- Net premiums written of $1,310.1 million, a decline of 4.6% over the same period in 2013;
- Combined ratio of 85.0%, which included 11.9 percentage points of favorable prior year loss reserve development, 3.3 percentage points of current year catastrophe losses and 1.5 percentage points of expenses related the proposed acquisition of Aspen;
- Net investment income of $80.3 million, a decrease of $1.5 million over the same period in 2013;
- Operating income, which excludes after-tax realized investment gains and foreign exchange losses, of $166.3 million and $3.73 per diluted common share;
- Operating return on average common equity for the first six months of the year of 6.5%, or 12.9% on an annualized basis; and
- Excluding $13.7 million of expenses related to the proposed acquisition of Aspen, operating income of $180.0 million and $4.04 per diluted common share and operating return on average common equity of 7.0% for the first six months of 2014 or 14.0% on an annualized basis.
John R. Charman, Chairman and Chief Executive Officer, commented, “I am very proud to report that Endurance has generated another solid quarter of financial results, demonstrating not only continuing profitable premium growth and broadly improved loss ratios across our expanded global businesses, but importantly strong growth in our book value per share.
“The transformation of Endurance that we began just over a year ago is clearly visible in our overall operating and financial performance. With the core of our global underwriting leadership team now firmly in place and coordinating well, I believe that these positive, strategic improvements will continue to translate into stronger, more consistent performance in the future.”
