Endurance Specialty Holdings has reported net income of $198.8m for the fourth quarter of 2006, compared with a net loss of $49.8m in the fourth quarter of 2005.
For the year, net income was $498.1m, compared with a net loss of $220.5m in 2005. Net income for 2006 and 2005 included favourable prior year loss reserve development of $57.7m and $162.5m, respectively.
Total premiums written during 2006 were $1,948.6m, which included gross premiums written and deposit premiums, representing a 7.5% increase over the same period in 2005. Excluding 2005 reinstatement premiums of $46.1m related to Hurricanes Katrina, Rita and Wilma, total premiums written increased 10.3% from 2005.
Combined ratio, excluding 3.5 percentage points of favourable prior year loss reserve development, was 85% and net investment income increased 42.7% to $257.4m over 2005.
Kenneth LeStrange, chairman and chief executive, commented, “I am extremely pleased with the record earnings that Endurance achieved both for the fourth quarter and for the full year of 2006. In addition to posting record earnings this year, we took significant steps to further expand and balance our book of business through growth in our specialty lines and we significantly reduced our catastrophe risk profile – accomplishments we believe will serve us well in 2007 and beyond.”
LeStrange also announced that William Jewett had been appointed the president and CEO of Endurance's reinsurance business, responsible for strategy, profitability and underwriting results for our reinsurance business worldwide.
Michael Fujii has assumed additional responsibilities for the company's global insurance business as the president and chief executive officer.
In addition, Dan Izard has been appointed chief operating officer of Endurance, assuming global responsibility for operating effectiveness and shared services for all of the company's subsidiaries.
