Endurance Income More Than Doubles

Endurance Specialty Holdings reported net income of $135.3 million for second-quarter 2007 last night–more than double the $64.1 million 2006 figure–with favorable loss developments and a jump in net investment income contributing to the result.

On a per-share basis, net income was $1.85 per share for the second quarter of 2007 versus 85 cents per share in the second quarter of 2006.

In second-quarter 2006, Endurance's results were hit with unfavorable developments of nearly $22 million stemming from 2005 catastrophes. In contrast, in second-quarter 2007, the company recorded $27.6 million of favorable prior-year developments, according to an earnings announcement released yesterday.

The overall combined ratio of 79.0 included 6.6 points of favorable development.

In the quarter, net investment income (from interest and dividends) jumped 30.3 percent to $78.5 million.

For the first six months of 2007, net income was $237.2 million, or $3.22 per share, up 39 percent from net income of $171.1 million, $2.29 per share for the six months ended June 30, 2006.

In the second quarter of 2007, Endurance also reported growth in gross premiums written, attributing a 5.9 percent increase to growth in the insurance segment of the business. Gross premiums for the insurance segment grew 24 percent to $198.0 million, while reinsurance premiums fell nearly 3 percent to $328.8 million.

For the first half, an 18.3 percent drop in premiums for the reinsurance segment overshadowed a 44 percent jump in insurance premiums, resulting in an overall decrease of 5.5 percent for the two segments of the company taken together.