Endurance Reports 2014 Q4 Financial Results
Bermuda-based Endurance Specialty Holdings Ltd. today reported net income available to common shareholders of $76.4 million and $1.70 per diluted common share for the fourth quarter of 2014 versus net income of $59.0 million and $1.33 per diluted common share for the fourth quarter of 2013.
For the year ended December 31, 2014, Endurance reported net income available to common shareholders of $315.7 million and $7.06 per diluted common share versus net income of $279.2 million and $6.37 per diluted common share for the year ended December 31, 2013. Book value per diluted share was $61.33 at December 31, 2014, up 11.1% from December 31, 2013.
John R. Charman, Chairman and Chief Executive Officer, commented, “The fourth quarter capped a very strong year for Endurance both financially and strategically; this performance was even more commendable when taking into account the continued root and branch transformation within our company.
“We generated a strong return on equity and double digit growth in book value per share as well as continuing to profitably grow our underwriting business by products and geographies. Endurance is now firmly established as a leading underwriter with a significantly improved global presence and much broader underwriting capability in the specialty insurance and reinsurance markets.
“Importantly, we are increasingly relevant to our global clients and broker distribution channels in terms of access, capability and capacity across the board. Our 2014 results were a strong, early confirmation that our efforts over the last couple of years are paying off as company wide gross premiums written, excluding agriculture insurance, grew 18.5%, while accident year loss ratios continued to improve throughout both segments.
“We are resolute in our determination and commitment to continue the profitable transformation of Endurance during 2015 and beyond and we remain highly focused on generating superior shareholder returns, regardless of how challenging market conditions become.”
Operating highlights for the quarter ended December 31, 2014 were as follows:
- Gross premiums written of $421.0 million, an increase of 13.5% compared to the same period in 2013;
- Net premiums written of $234.0 million, a decline of 16.5% compared to the same period in 2013;
- Combined ratio of 83.2%, which included 14.6 percentage points of favorable prior year loss reserve development and 2.1 percentage points of catastrophe losses from 2014 events;
- Net investment income of $25.9 million, a decrease of $20.5 million from the same period in 2013;
- Operating income of $78.5 million and $1.75 per diluted common share; and
- Operating return on average common equity for the quarter of 2.9% or 11.5% on an annualized basis.
Operating highlights for the twelve months ended December 31, 2014 were as follows:
- Gross premiums written of $2,894.1 million, an increase of 8.6% over the same period in 2013;
- Net premiums written of $1,934.2 million, a decline of 5.6% over the same period in 2013;
- Combined ratio of 86.0%, which included 12.5 percentage points of favorable prior year loss reserve development, 2.7 percentage points of current year catastrophe losses, and 0.8 percentage points of expenses related to the proposed acquisition of Aspen;
- Net investment income of $131.5 million, a decrease of $34.7 million over the same period in 2013;
- Operating income, excluding $20.3 million of expenses related to the proposed acquisition of Aspen, of $324.3 million and $7.25 per diluted common share; and
- Operating return on average common equity for the year, excluding expenses related to the proposed acquisition of Aspen, of 12.4%.
