Endurance Posts $521 Million FY Net, Despite Q4 Drop; Conference Call Today
Bermuda’s Endurance Specialty Holdings Ltd. reported net income of $152.5 million and $2.18 per diluted common share for the fourth quarter of 2007, compared to $198.8 million and $2.70 per diluted common share in the fourth quarter of 2006.
For the full year ended December 31, 2007, net income was $521.1 million and $7.17 per diluted common share versus net income of $498.1 million and $6.73 per diluted common share for the year ended December 31, 2006.
Operating highlights for the quarter ended December 31, 2007 were listed as follows:
— Total premiums written of $282.5 million, which include gross premiums written and deposit premiums, decreased 5.2 percent over the same period in 2006;
— Total ceded premiums of $62.3 million – $42.3 million in the fourth quarter of 2006;
— A combined ratio of 74.7 percent, which included 9.6 percentage points of favorable prior year loss reserve development;
— Net investment income of $65.3 million, a decrease of 9.3 percent over the same period in 2006;
— Operating income, which excludes after-tax realized investment gains and losses and foreign exchange gains and losses, of $160.7 million and $2.30 per diluted common share; and
— Operating return on average common equity for the quarter of 6.8 percent, or 27.1 percent on an annualized basis.
Operating highlights for the year ended December 31, 2007 were given as follows:
— Total premiums written of $1.8097 billion, which include gross premiums written and deposit premiums, decreased 7.1 percent over 2006;
— Total ceded premiums of $206.1 million versus $204.1 million for 2006;
— A combined ratio of 79.9 percent, which includes 10.0 percentage points of favorable prior year loss reserve development;
— Net investment income of $281.3 million, an increase of 9.3 percent over 2006;
— Operating income, which excludes after-tax realized investment gains and losses and foreign exchange gains and losses, of $541.0 million and $7.45 per diluted common share; and
— Operating return on average common equity of 23.8 percent.
Chairman and CEO Kenneth J. LeStrange commented: “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 A.M. 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.”
The full report is available on the Company’s web site at: www.endurance.bm.
Endurance will host a conference call today, Thursday, February 7, 2008 at 8:30 AM (Eastern) to discuss the financial results. The conference call can be accessed via telephone by dialing (877) 672-9216 (toll-free) or (706) 634-9637 (international) and advising Conference ID Number 28043306. Those who intend to participate in the conference call should register at least ten minutes in advance to ensure access to the call.
The public may access a live broadcast of the conference call at the “Investors” section of Endurance’s web site. A telephone replay of the conference call will be available through February 21, 2008 by dialing (800) 642-1687 (toll-free) or (706) 645-9291 (international) and entering Conference ID Number 28043306.
Source: Endurance Specialty