Insurer expects net losses from hurricanes Gustav and Ike to hit $145m.
Endurance Specialty Holdings Ltd., a global specialty provider of property and casualty insurance and reinsurance, has announced a preliminary estimate of its third quarter results.
Endurance’s book value per diluted common share at September 30, 2008 is expected to be within a range of $33.30 to $33.80.
The decline in book value per share from December 31, 2007, excluding dividends paid in 2008, is anticipated to be between 1.4% and 2.9%.
The anticipated decline in book value is predominantly due to losses from third quarter hurricanes as well as year to date realized and unrealized investment losses partially offset by year to date earnings.
Endurance expects to report a third quarter 2008 operating loss in a range of $0.96 to $1.15 per diluted common share.
The estimated third quarter operating loss is predominantly the result of previously announced expected net losses from hurricanes Gustav and Ike of approximately $145m.
The estimated third quarter operating loss is also expected to include previously announced mark to market losses of approximately $33 million on Endurance’s alternative investment portfolio, which are included in net investment income.
Kenneth LeStrange, Endurance chairman and chief executive, said: “The primary focus of our capital and investment management activities has always been to maintain strong levels of risk based capital, liquidity and financial flexibility.
“This focus, along with excellent execution by our investment and finance teams, has enabled Endurance to withstand the current market volatility while maintaining a secure balance sheet.”
Endurance will issue its financial results for the quarter on November 6.
