Endurance Specialty Holdings Ltd. yesterday announced it had bought back $64.7 million worth of shares from one of its initial investors.

And the Bermuda-based reinsurer also said it planned to buy back 2 million of its shares on the open market and in privately negotiated transactions.

Endurance said its board of directors had authorised the company to

repurchase 2,036,834 of its ordinary shares owned by Lightyear Capital. The purchase price was $31.799 per share, representing a one percent discount to the closing price for the ordinary shares on May 21, 2004.

Endurance said it used existing cash on hand to fund the repurchases.

Under the share repurchase programme, Endurance will buy back up to 2 million of its ordinary shares and share equivalents. The repurchases will be accomplished in open market or privately negotiated transactions, from time to time, depending on market conditions. The share repurchase programme is currently authorised to continue until May 2006.

?We are pleased do announce these capital management initiatives,? said Kenneth J. LeStrange, chairman and chief executive officer.

?Capital management has and will continue to be a cornerstone of our strategy. The repurchase of shares allows Endurance to reduce significant potential overhang from one of our initial investors at an attractive valuation.

?Our new share repurchase program gives us the flexibility to enhance our return on equity through selective repurchases of our ordinary shares from time to time consistent with our capital management goals.?