S&P Raises Endurance Ratings Outlook

S&P Raises Endurance Ratings Outlook

NU Online News Service, Dec. 13, 3:53 p.m. EST?Standard & Poor's raised its outlook today on Endurance Specialty Holdings and its units to "Positive" from "Stable," citing the company's competitive position, capital adequacy and strong operating performance.[@@]

The upgraded outlook, the ratings agency said, is based on Endurance's performance through the recent hurricane season, where the Bermuda-based company has performed well versus peers in terms of capital and earnings as well as from a volatility standpoint.

S&P also said that it affirmed its "triple-B" counterparty credit rating on Endurance and its "A-minus" counterparty credit and financial strength ratings on the subsidiaries.

"The ratings on Endurance are based on its strong competitive position, which is supported by a diversified business platform," said S&P credit analyst Damien Magarelli.

Mr. Magarelli said also that "Endurance maintains strong capital adequacy and strong operating performance."

Offsetting these positive factors, however, Mr. Magarelli said, are concerns about Endurance's exposure to large losses, unproven performance of newly acquired books, and minimal reinsurance protections, which increase the risk of volatile earnings and capital adequacy.

Endurance Chief Executive Kenneth LeStrange said he is pleased by S&P's announcement. "It is particularly gratifying to receive this positive outlook change in an environment marked by negative rating activity and heightened scrutiny by all of the rating agencies."