Endurance reports $94m annual loss
Endurance Specialty Holdings reported a year-end net loss of $93.7 million.
The loss is compared with a 2010 net income of $364.7 million. The Bermuda-based company reported a net loss of $27.4 million for the fourth quarter of 2011 versus net income of $111.2 million for the same period in 2010.
In their reinsurance sector, Endurance recorded $457.1 million of net catastrophe losses from 2011 events, driven by greater frequency of large loss events during the year, including the earthquakes in New Zealand and Japan and the Queensland floods in Australia during the first quarter, spring tornadoes in the US in the second quarter, Hurricane Irene, the Danish flood, Texas brushfires and multiple storms in the Midwest in the third quarter and the Thailand flood in the fourth quarter.
“While 2011 was a challenging year with global industry catastrophe losses in excess of $100 billion, Endurance is well positioned to benefit from the improving underwriting conditions we are beginning to see in many of our businesses,” said CEO David Cash.
“I am pleased with the improved pricing we were able to achieve in our reinsurance portfolio at January 1, particularly in our catastrophe lines, and our insurance business is also starting to see positive pricing momentum in a number of places.”
Endurance wrote more business in both its insurance and reinsurance sectors in 2011, increasing its year-end net premiums written by 21.2 percent and 4.3 percent over 2010, respectively.
The company attributed its insurance sector growth to growth within their agriculture and casualty lines, partially offset by declines in the professional, property and healthcare liability lines of business.
The reinsurance sector increase was driven by growth across the catastrophe, property and the aerospace and marines lines of business, partially offset by declines in casualty and surety and other specialty lines.
The company ended the year with a net operating cash flow of $281.3 million versus $407.2 million in 2010.
At the year’s end, Endurance’s book value was $50.56 per share, down 4.1 percent from 2010. For the quarter and year, Endurance declared and paid dividends of 30 cents and $1.20 per share, respectively.