Bermuda-based insurer Endurance Specialty Holdings Ltd. announced last night that its profits for the first quarter of 2005 were down almost five percent over the previous year.

The provider of property and casualty insurance and reinsurance reported net income for the first quarter of $96.3 million or $1.45 per share, compared with net income of $100.9 million or $1.47 per share in the same quarter of 2004.

Operating income was $102.7 million or $1.55 per share versus $98.7 million or $1.44 per share in the first quarter of 2004. Kenneth J. LeStrange, chairman and chief executive officer, said: "Endurance produced another strong financial result for our shareholders this quarter.

"Despite varied and challenging market conditions, we have remained disciplined, focused and opportunistic.

"We are proud to have generated another outstanding return on equity this quarter that was well ahead of our stated guidance, and to have grown book value significantly year over year.

"With our diversified book of business, the strength of our balance sheet and our commitment to profitable underwriting, we are well positioned to produce strong returns for our owners over the short and long term."