A.M. Best Upgrades Endurance Rating

NU Online News Service, May 29, 9:14 a.m. EDT?A.M. Best said it has upgraded the financial strength rating of Bermuda-based Endurance Specialty Insurance Ltd. to "A" from "A-Minus", with a "Stable" outlook.

The Oldwick, N.J.-based ratings firm noted that Endurance's entire book produced a combined ratio of 86 percent in 2002, thanks to higher market rates and light catastrophes.

Best also took favorable note of Endurance's selective acquisitions, including the purchase of renewal rights to LaSalle Re's property catastrophe business, as well as the recent acquisition of renewal rights to selected portions of Hartford Re's book of business.

"Endurance has established a diversified book of business, both geographically and by line," Best noted in its ratings report. "Each acquisition was complementary to Endurance's existing book of business and did not include the addition of any historical liabilities," the ratings firm said.

Endurance offers a variety of property-casualty coverage through its subsidiaries in Bermuda, the U.K. and the United States, with an emphasis on catastrophe policies.

The company's primary lines include property individual risk and casualty individual risk, while reinsurance lines include property per risk treaty reinsurance and property catastrophe reinsurance, as well as casualty treaty reinsurance. Chicago-based Aon Corporation owned 26 percent of Endurance before its initial public offering in March.

Based on its 64.6 million shares outstanding, Endurance's market capitalization is currently about $1.5 billion. Founded in 2001 in the wake of the Sept. 11 terrorist attacks, the company posted a net income of $102.1 million in 2002, from $421.5 million in sales.