Endurance Specialty Holdings Ltd. posted income of $107 million for the first quarter of 2006, an 11 percent improvement on income of $96.3 million in the first quarter of 2005.

Operating income was $107.9 million or $1.46 per share versus operating income of $102.7 million or $1.55 per share in the first quarter of 2005.

Kenneth J. LeStrange, chairman and chief executive officer, said: ?We are confident that the catastrophe modelling and risk management enhancements that we implemented following the hurricanes of 2005 position us very well to achieve strong returns for our shareholders.?

Investment income increased 55 percent reflecting significant increases in invested assets and improved investment yields over the past year.

Gross premiums written fell $131 million to $571.4 million in the first quarter 2006 due to the non-renewal of contracts in the Property Per Risk Treaty Reinsurance and Casualty Treaty Reinsurance segments that did not meet return criteria or underwriting and claims review recommendations. An Aerospace and Other Specialty Lines segment contract acquired as part of the company?s renewal rights transaction with Hart Re in 2003 was also not renewed.

Endurance?s loss ratio was 56.8 percent in the quarter compared to 57.4 percent in the first quarter of 2005. The results include reserves for a number of moderate events that occurred during the first quarter, including tornadoes, hailstorms, flooding and typhoons in the US, Europe and Australia.

During the quarter, the company also saw $42.5 million in favourable reserve development from business underwritten in prior years compared to $46 million in favourable development in the first quarter 2005. The reduction in estimated losses for prior years was largely driven by lower than anticipated reported claims in the Property Per Risk Treaty and Property Individual Segments.

The company boosted its reserves for ultimate claims from hurricanes Katrina, Rita and Wilma by $35 million, approximately four percent, during the quarter and redistributed some of these reserves among its reporting segments. The increases were more than offset by favourable 2005 accident year reserve development from within the property and specialty segments, the company said in its earnings release.