Strng catastrophe reinsurance premiums in the wake of the record 2005 hurricane season helped Endurance Specialty Holdings Ltd. post a $128.2 million profit in the 206 third quarter, the company said last night.

Endurance posted net income of $1.74 a share for the quarter, up from a net loss of $377 million or $6.26 a share a year earlier.

Operating income was $137.2 million or $1.87 common share, compared to a loss of $377.8 million.

?I am extremely pleased with ?I am extremely pleased with the record level of earnings that Endurance achieved this quarter. Our results benefited from strong pricing and lower than expected losses in our catastrophe exposed businesses,? Kenneth J. LeStrange, Chairman and CEO said.

?We continue to see significant opportunities and believe our portfolio has the potential to continue generating attractive returns for Endurance.?

The Bermuda based company was expected to make operating profits of $1.45 a share, according to the average forecast of 12 analysts polled by Thomson First Call.

?The year over year increase in total premiums written by Endurance in the third quarter of 2006 was driven by strong pricing in our catastrophe exposed insurance and reinsurance segments.

Mr. LeStrange also said the continued development of the company?s US insurance operations and favourable renewals, resulted in growth in its Property Per Risk Treaty Reinsurance, Property Individual Risk and Casualty Individual Risk segments.

The increase in total ceded premiums for the quarter resulted primarily from $38.5 million of reinsurance premiums ceded to sidecar Shackleton Re Ltd. under multi-year, collateralised catastrophe reinsurance agreements entered into in the third quarter of 2006.

In addition, Endurance also purchased other retrocessional reinsurance coverages during the quarter at various retention levels.

These reinsurance contracts increased the difference between the company?s gross and net written premiums in the third quarter of 2006 and will reduce the company?s net premiums earned over the next 12-24 months.

Endurance?s combined ratio was 78.1 percent in the third quarter of 2006 versus 204.4 percent for the third quarter of 2005, which included 115.5 percentage points related to Hurricanes Katrina and Rita.

The current quarter combined ratio was impacted by $10.0 million of prior year loss reserve reductions driven by favourable loss experience in the Casualty Individual Risk and Casualty Treaty Reinsurance segments.

In comparison, in the third quarter of 2005, Endurance recorded $23.9 million of prior year loss reserve reductions resulting from favourable claims development primarily related to the 2004 accident year.