Endurance Speciality Holdings Ltd.'s first half-yearly operating results suffered a gross loss of $40 million from the devastation caused throughout Europe by Windstorm Kyrill.

But it proved to be only a minor setback as profits more than doubled, soaring from $64.1m and 85 cents per diluted common share this time last year to $135.3m and $1.85 per share this second quarter.

Total premiums written rose 5.9 percent to $526.8m from the same period in 2006 due to the continued growth in the insurance business segment partially offset by declines in the reinsurance business segment, while total ceded premiums were $58.6m compared to $42.6m in last year's second quarter. Net investment income was also up, this time by 30.3 percent to $78.5m from the same period in 2006 due to a combination of higher portfolio yields, growth in the company's invested assets and strong alternative investment performance.

And operating income, excluding after-tax realised investment gains and losses and foreign exchange gains and losses standing at $141.2m and $1.94 per diluted common share.

Chairman and chief executive officer Kenneth LeStrange was pleased with his company's second-quarter showings.

"Endurance produced exceptional financial results in the second quarter of 2007," he said.

"Our specialty focus continues to generate strong underwriting results, and we believe this specialty focus has allowed us to create a portfolio that is well balanced between risk and reward.

"We will continue to be resourceful in identifying attractive new business, diligent in retaining our existing business and proactive in non-renewing business that no longer meets our underwriting requirements."

Other highlights of the results included net premiums earned for the second quarter of 2007, which increased by $10.9m or 2.7 percent from 2006.

The company's operating results for the six months ended June 30 were adversely affected by losses from Windstorm Kyrill, which resulted in a net loss of $33.9m after reinstatement premiums and taxes.

Gross premiums written in Endurance's insurance business segment for the second quarter were $198m compared to $159.2m in the same period in 2006.

Gross premiums written, including deposit premiums, in Endurance's reinsurance business segment were $328.8m, representing a decrease of 2.8 percent in the second quarter from the $338.1m of premiums written in the same period in 2006.

The company's growth in the insurance business segment was partially offset by a declines in premiums of $14.7m in the second quarter 2007 compared to the same time last year.

Endurance's combined ratio in the second quarter of 2007 was 79.4 percent for its insurance business segment versus a combined ratio of 102.5 percent for the second quarter of 2006.

At June 30, Endurance's shareholders' equity was $2.4 billion or $30.56 per diluted common share versus $2.3bn or $28.87 per share at December 31, 2006.