Endurance Specialty: Smaller 3Q Profit
NU Online News Service, Oct. 29, 11:10 a.m. EDT?Endurance Specialty Holdings Ltd. reported net income of $26.8 million for the third quarter of 2004, down from the $56.5 million profit during the third quarter of 2003, as the $115 million hurricane losses took their toll.[@@]
Commenting on the company’s quarterly financials, Endurance Chairman and Chief Executive Kenneth LeStrange observed that excluding catastrophe-related losses, all segments of business performed “extremely well.”
“We are pleased that we have produced a profitable overall result for our shareholders this quarter, despite the magnitude of industrywide catastrophe losses this hurricane season,” Mr. LeStrange said. For the first nine months of 2004, the company reported $242.5 million in profit, improving from $174.5 million posted one year ago.
Endurance Specialty said that during the third quarter, the company incurred losses from Hurricanes Charlie, Frances, Ivan and Jeanne?which adversely affected its property-catastrophe, property-treaty, direct-property, and other specialty lines segments. The company had previously disclosed that net losses from the four hurricanes were expected to be around $115 million.
Endurance Specialty reported that its net premiums written and acquired for the third quarter were $357.7 million, up from $324.4 million during the year-ago period. The net investment income for the third quarter was $31 million, up from $18.7 million posted for the 2003 third quarter.
On the other hand, losses and loss expenses for the third quarter were $308.3 million, worse than $198.7 million during the year-ago period. The combined ratio for the third quarter was 103.0, compared to 88.5 reported third-quarter 2003.
Endurance Specialty Holdings Ltd., headquartered in Bermuda, writes property per risk treaty reinsurance, property catastrophe reinsurance, casualty treaty reinsurance, property individual risks, casualty individual risks, and other specialty lines through its operating subsidiaries.