Net premiums written decrease by 9% at Burmadian insurer

Endurance Specialty Holdings has reported net income of $78.3m for the first quarter of 2009 against a net income of $77.8m in the first quarter of 2008.

The Bermudian-based insurer posted net premiums written of $582.9m for the quarter ended March 31 2009, which decreased 9% from the first quarter of 2008. Combined ratio was 92.2%, which included 10.4 percentage points of favorable prior year loss reserve development.

Kenneth J. LeStrange, chairman and chief executive officer, said: “Endurance produced strong underwriting and investment results this quarter in the face of continued turbulence in the underwriting and investment markets. We saw improving conditions in some areas such as catastrophe exposed property insurance and reinsurance lines, aviation and some large account casualty insurance while other segments of the market, such as middle market casualty insurance and casualty reinsurance showed continued signs of competition, albeit at a moderating pace.

“Looking forward, our efforts over the past several years to expand our underwriting capabilities and distribution relationships has positioned us well to take advantage of potential opportunities across a broad spectrum of insurance and reinsurance lines of business.”

Net premiums written in Endurance’s Insurance segment for the three months ended March 31, 2009 were $322.4m compared to $356.1m for the same period in 2008. "This decline was driven by reductions in workers’ compensation premiums as a result of the company’s exit from the California workers’ compensation market in the first quarter of 2009," it said. "The decrease in net premiums written in this line of business was partially offset by growth in net premiums written in the property, casualty, healthcare liability and professional lines of business in the first quarter of 2009 as compared to the first quarter of 2008. Earned premiums increased in the current period compared to 2008 due to the continued earning of premiums written in prior periods."

The combined ratio was 84.9% versus a combined ratio of 104.0% for the same period in 2008.

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