Endurance Assigned 'A-Minus' S&P Rating

Endurance Assigned 'A-Minus' S&P Rating

NU Online News Service, June 6, 3:40 p.m. EDT?Standard & Poor's Ratings Services has assigned "A-Minus" ratings for operating subsidiaries of the Bermuda-based Endurance Specialty Holdings.

The New York-based S&P indicated in its ratings report that the decision was based on the company's "extremely strong capital adequacy, good market acceptance, experienced management and clean infrastructure, which supports a focused underwriting strategy with established exposure limits."

And since the company was founded less than two years ago, it removes any risk of loss reserve development relating to claims that predate its formation, S&P added. "Similarly, it has no legacy systems that need to be maintained or transitioned. Both of these platforms will enable Endurance to continue its risk diversification by geography and product line."

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. For the 2003 first quarter, Endurance reported $51 million in net income.