Hurricanes Charley, Frances, Ivan and Jeanne halved Bermuda-based Endurance Speciality Holdings net income for the third quarter to $26.8 million versus $56.5 million in same period in 2003. This breaks down to 40 cents per share in the 2004 quarter compared to 83 cents in 2003.

The global property and casualty insurance and reinsurance provider previously announced its estimates on net losses from the four hurricanes to be approximately $115 million.

In the company?s earnings statement, Kenneth J. LeStrange, chairman and chief executive officer said that the hurricanes had an adverse affect on the company?s property catastrophe, property treaty, direct property, and other speciality lines segments.

?We are pleased that we have produced a profitable overall result for our shareholders this quarter, despite the magnitude of industry-wide catastrophe losses this hurricane season. Our strategy of portfolio diversification and disciplined risk management proved to be a particularly strong asset for Endurance this quarter.?

Endurance expects to meet or exceed the upper end of its return on equity guidance for the full year of 2004 of 15.5 percent to 17.5 percent, assuming normal catastrophic losses in the 4th quarter. The company continues to focus on identifying and developing strong growth opportunities for shareholders.

?In September, we acquired the majority of XL Re?s surety reinsurance business through a renewal rights purchase agreement. In making this acquisition, we gained access to a profitable line of business without being exposed to any historical liability risk. In September, we also formed an Agricultural Reinsurance business unit, and we see a significant, attractive opportunity in that segment. Recently, we named Mike Fujii to lead our future insurance efforts in the United States. Each of these growth opportunities is an excellent complement to our overall portfolio and strategy,? Mr. LeStrange said.

In the third quarter of 2004, operating income, which excludes after-tax realised investment gains and losses and foreign exchange gains and losses, was $23.7 million or $0.36 per diluted share versus $55.2 million or $0.81 per diluted share in the third quarter of 2003.

For the nine months ended September 30, 2004, net income was $242.5 million or $3.58 per diluted share versus net income of $174.5 million or $2.68 per diluted share for the first half of 2003.

Operating income for the first nine months of 2004 was $240 million or $3.54 per diluted share, up 43.1 percent from the first nine months of 2003.

Gross premiums written were $367.9 million for the quarter ended September 30, 2004, an increase of 13.2 percent from the $325.1 million in gross premiums written for the third quarter of 2003.

For the first nine months of 2004, Endurance had gross premiums written of $1.4 billion, an increase of 7.4 percent from the $1.3 billion of gross premiums written and acquired in the first nine months of 2003.

The combined ratio was 103.0 percent in the third quarter of 2004 compared to 88.5 percent in the third quarter of 2003. The loss ratio was 75.3 percent in the quarter compared to 59.2 percent in the third quarter of 2003. Endurance benefited from $50.9 million in positive reserve development for the third quarter of 2004 from prior years, compared to $11.5 million in the third quarter of 2003. At September 30, 2004, shareholder?s equity was $1.8 billion or $26.69 per diluted share, up 15.1 percent from September 30, 2003.