Profits for Endurance Specialty Holdings fell $6.2 million to $101.8 million for the first quarter of 2007 compared to the same period in 2006.

European windstorm Kyrill, which created a gross loss of $40 million for the company, knocked 9.6 percentage points from Endurance’s combined ratio, which stands at 86.7 percent. However, the ratio was boosted by 14.8 percentage points from favourable prior year loss reserve development.

Year-on-year the company wrote just under $2 million more in gross premiums.

Kenneth LeStrange, chairman and chief executive officer of the Bermuda insurer, said: “I am pleased with the strong operating earnings we generated this quarter. During the first quarter we also continued to build a diversified book of business by expanding in niche markets that remain profitable while selectively reducing our exposure in some reinsurance lines as profit margins are coming under pressure.”

The first quarter profit equalled $1.36 per diluted common share compared to $1.45 per diluted common share in the first quarter of 2006.

First quarter operating income available to common shareholders was $101.3 million, or $1.41 a share, down from $104 million, or $1.46 a share, last year. The results beat experts predictions, with analysts polled by Thomson Financial expecting, on average, a per-share profit of $1.25.

Endurance improved its gross premiums written for insurance, rising from $80.2 million to $147 million, but this was more than cancelled out as gross premiums written for reinsurance dropped 27.3 percent year-on-year from $590.4 million to $429.5 million.

The company did better with its net investment income, which was 21.6 percent better than the first quarter of 2006.