Endurance Reports 2015 Q2 Financial Results
Bermuda-based Endurance Specialty Holdings Ltd. reported net income available to common shareholders of $76.0 million and $1.68 per diluted common share for the second quarter of 2015 versus net income of $75.0 million and $1.68 per diluted common share for the second quarter of 2014.
For the six months ended June 30, 2015, Endurance reported net income available to common shareholders of $176.3 million and $3.91 per diluted common share versus net income of $171.3 million and $3.84 per diluted common share for the six months ended June 30, 2014. Book value per diluted share was $63.32 at June 30, 2015, up 3.2% from December 31, 2014.
Operating highlights for the quarter ended June 30, 2015 were as follows:
- Gross premiums written of $861.2 million, an increase of 24.9% compared to the same period in 2014;
- Net premiums written of $559.1 million, an increase of 9.3% compared to the same period in 2014;
- Combined ratio of 85.5%, which included 12.8 percentage points of favorable prior year loss reserve development and 2.2 percentage points of net catastrophe losses from 2015 events, 3.9 percentage points of large property and energy losses, and 0.8 percentage points of corporate expenses related to the acquisition of Montpelier Re Holdings Ltd. (“Montpelier”);
- Net investment income of $32.3 million, a decrease of $7.1 million from the same period in 2014;
- Operating income, which excludes after-tax realized investment gains and foreign exchange losses, of $79.5 million and $1.76 per diluted common share; and
- Operating return on average common equity for the quarter of 2.8% or 11.1% on an annualized basis.
Operating highlights for the six months ended June 30, 2015 were as follows:
- Gross premiums written of $2,162.6 million, an increase of 17.1% over the same period in 2014;
- Net premiums written of $1,324.0 million, an increase of 1.1% over the same period in 2014;
- Combined ratio of 84.1%, which included 13.7 percentage points of favorable prior year loss reserve development, 2.1 percentage points of current year catastrophe losses, 2.1 percentage points of large property and energy losses, and 0.5 percentage points of corporate expenses related to the acquisition of Montpelier;
- Net investment income of $74.1 million, a decrease of $6.2 million over the same period in 2014;
- Operating income of $170.7 million and $3.78 per diluted common share; and
- Operating return on average common equity for the first six months of the year of 6.1%, or 12.1% on an annualized basis.
John R. Charman, Chairman and Chief Executive Officer, commented, “During the second quarter we continued to deliver improved profitability by generating an operating ROE of 11.1% in spite of very challenging market conditions. We were also able to meaningfully expand our global specialty book of business as evidenced by our 25% growth in gross written premiums.
“These strong results continue to reflect the significant strategic improvements we have implemented over the past 30 months at Endurance. Our globally recognized, market leading underwriters are now firmly established and are attracting high quality, historically profitable business.
“Our underwriters’ careful risk selection and underwriting discipline remain critical in this very competitive rate environment and I am confident of our ability to continue to deliver strong financial results as well as creating exceptional value for our shareholders.
“Last week we announced the completion of our acquisition of Montpelier after both Endurance and Montpelier received overwhelming shareholder support for the transaction.
“Having spent the last several months diligently planning, we have already begun to immediately integrate Montpelier into Endurance. We are confident in our ability to materially exceed our original synergy estimates and to achieve our targeted strategic and financial objectives.”
