Endurance Specialty Q1 Profit Up 97%
NU Online News Service, April 27, 4:25 p.m. EDT?The Bermuda-based Endurance Specialty Holdings Ltd. reported $100.9 million for its first-quarter profit, a 97 percent rise from $51.2 million in profit reported during the corresponding period in 2003.[@@]
Founded in 2001 in the wake of the Sept. 11 terrorist attack, Endurance saw its gross premiums written and premiums earned continue to expand, all the while improving its combined ratio.
First-quarter gross premiums written were reported at $720.6 million, a 99 percent rise from the $362.1 million in gross premiums written for the 2003 period.
Endurance explained that growth in written premiums was helped by the renewal of business obtained from the Hart Re portfolio purchase during the 2003 second quarter, as well as growth from the company's U.S. and U.K. units which commenced operations at the beginning of 2003.
Meanwhile, earned premiums in the first quarter were reported at $415.8 million, a 119.3 percent jump from one year ago.
The combined ratio, benefiting from a low level of loss activity, further improved during the quarter, moving down to 81.6 from 83.4 reported one year earlier.
Net investment income for the quarter was $24.67 million, up from $14.36 million reported one year earlier.
Endurance Specialty Chief Executive Officer Kenneth LeStrange, commenting on his company's quarterly results, said that "generating $100 million in net income for the quarter was another milestone achievement for Endurance."
Mr. LeStrange said each of his business segments reported strong results, with the U.S. and U.K. units making significant progress during their first renewal season as fully staffed companies. "We are now increasingly seeing the benefits of key strategic decisions made during the company's formation to focus across a number of highly attractive business lines and key geographies," Mr. LeStrange said.
Founded in 2001, 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. For overall 2003, Endurance reported $263.4 million in net income.
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. Endurance was 26 percent-owned by Chicago-based Aon Corporation before the initial public offering in March 2003.
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