One of Bermuda's newest insurers - Endurance Specialty Insurance Ltd. - has posted net income of $31.3 million for the second quarter.

The company, which was one of a wave of companies to set up on the Island late last year in the wake of the September 11 terrorist attacks and a void in insurance capacity, also reported that it had written and acquired $264.3 million in gross premiums through the period ended June 30, 2002.

The results were slightly higher than the second quarter results of another of Bermuda's newest insurance ventures, AXIS Specialty Limited, which reported net income of $30 million in the second quarter and $260.7 million in gross premiums written.

Endurance got a boost to business however in the second quarter with its takeover of La Salle Re's in-force business.

The deal, which was signed in May but retroactively put in effect as of the start of the quarter, April 1, saw the company expand its business and employee base.

Under what was technically called a “quota share reinsurance contract” Endurance took on La Salle's premiums and responsibility for future claims.

In addition, the company took over additional office space and hired on some 20 La Salle staff bringing the company's Bermuda based staff up to 75 including 27 underwriters and 9 actuaries.

Endurance CEO Kenneth LeStrange yesterday told The Royal Gazette that of the gross premiums written during the second quarter, $88 million of the $264.3 million could be attributed to the business from LaSalle Re.

But Mr. LeStrange declined to comment on how much an impact the LaSalle business takeover had had on the company's second quarter income results.

The company also posted net premiums earned for the quarter of $75.1 million.

Looking at the company's first six months of operation, Endurance posted net income was $34.6 million. Gross premiums written for this period were $395.2 million, and net premiums earned were $92.8 million. The company reported further that as of July 15, 2002, Endurance had bound gross premiums in excess of $550 million representing over 1,000 contracts written on behalf of over 400 clients around the world.

Endurance also announced yesterday that Mr. LeStrange and CFO Colleen Brennan would personally and voluntarily certify the company's corporate financial results in a manner comparable to the requirements for public companies contained in recently enacted legislation by the US Securities and Exchange Commission for large companies traded on US exchanges.

Mr. LeStrange said of the move: “Although a private company, we are very committed to transparency and conservatism in our approach.” Mr. LeStrange said the company had been “granular” in disseminating information on the company's operations to its stakeholders.

And he added that it was seen as a prudent step given that there is a possibility that the company could become a public venture down the road.

He added: “We were not required to do this, but saw it as an important symbol to investors, clients and brokers.

“We want to give an in-depth understanding of what we are doing and not doing.”

Mr. LeStrange said although the company could go public one day, it was not seen as a goal at this point.

On the company's results, Mr. LeStrange said: “I am quite satisfied with the results, yet we are at the beginning of a long journey.

“And we are in a business that is risky as we are subject to catastrophic events.”