Endurance Reports First Quarter 2015 Financial Results
(Thomson Reuters ONE) -
PEMBROKE, Bermuda - May 4, 2015 - Endurance Specialty Holdings Ltd. (NYSE:ENH)
today reported net income available to common shareholders of $100.3 million and
$2.23 per diluted common share for the first quarter of 2015 versus net income
of $96.3 million and $2.17 per diluted common share for the first quarter of
2014. Book value per diluted share was $62.79 at March 31, 2015, up 2.4% from
December 31, 2014.
Operating highlights for the quarter ended March 31, 2015 were as follows:
* Gross premiums written of $1,301.4 million, an increase of 12.4% compared to
the same period in 2014, or an increase of approximately 16.0% when
excluding the impact of foreign currency changes;
* Net premiums written of $765.0 million, a decline of 4.2% compared to the
same period in 2014;
* Combined ratio of 82.4%, which included 14.7 percentage points of favorable
prior year loss reserve development and 1.8 percentage points of net
catastrophe losses from 2015 events;
* Net investment income of $41.9 million, an increase of $0.9 million from the
same period in 2014;
* Operating income, which excludes after-tax realized investment gains and
losses and foreign exchange losses, of $91.2 million and $2.03 per diluted
common share; and
* Operating return on average common equity for the quarter of 3.3% or 13.0%
on an annualized basis.
John R. Charman, Chairman and Chief Executive Officer, commented, "During the
first quarter we generated excellent results with double digit percentage growth
in gross premiums written across our specialty businesses, 3.0% growth in book
value per share plus dividends, and an annualized operating ROE of 13.0%. In
the first quarter we announced our acquisition of Montpelier Re which we expect
to significantly accelerate our global transformation, building on the strong
growth and momentum that we have achieved over the last two years. The addition
of Montpelier's high quality underwriting portfolio along with the added
strategic capabilities, breadth of distribution and new underwriting platforms
will better enable us to increase our scale and relevance to our clients and
distribution partners while aiding us in delivering superior returns to our
shareholders."
Insurance Segment
Operating highlights for Endurance's Insurance segment for the quarter ended
March 31, 2015 were as follows:
* Gross premiums written of $736.2 million, an increase of 12.9% from the
first quarter of 2014;
* Net premiums written of $304.0 million, a decline of 11.4% from the first
quarter of 2014; and
* Combined ratio of 90.6%, which included favorable prior year loss reserve
development of 15.2 percentage points and net catastrophe losses from 2015
events of $4.4 million or 3.3 percentage points.
Gross premiums written in the Insurance segment increased $83.9 million for the
quarter ended March 31, 2015 compared to the same period in 2014 as we achieved
strong growth from our expanded global underwriting capabilities within the
professional lines, casualty and other specialty, property, marine and energy
lines of business. Partially offsetting this growth was a reduction in
agriculture insurance premiums driven by lower commodity prices, partially
offset by an increase in policy counts and growth within new crop insurance
products. Net premiums written declined $39.0 million for the quarter ended
March 31, 2015, compared to the same period in 2014, as greater levels of
reinsurance were purchased, including increased quota share protection for both
individual lines of business and across the entire portfolio and increased
protection for the agriculture insurance business including greater cessions to
the federal government as well as increased third party reinsurance purchases.
The 8.4 percentage point improvement in the Insurance segment combined ratio for
the quarter ended March 31, 2015 compared to the same period in 2014 was driven
by lower loss and general and administrative expense ratios partially offset by
a higher acquisition expense ratio. The improvement in the net loss ratio
reflects higher levels of favorable loss reserve development which improved the
current quarter's net loss ratio by 15.2 percentage points compared to 8.1
percentage points in 2014. The accident year net loss ratio increased modestly
in the current quarter as catastrophe losses related to U.S. winter storms were
higher than a year ago and were partially offset by improved profitability
within our expanding specialty and professional lines of business. The current
quarter's decline in the general and administrative expense ratio reflects
higher ceding commissions received as a result of increased quota share
reinsurance purchases. The acquisition expense ratio increased in the current
quarter as specialty lines with higher related acquisition costs accounted for a
greater percentage of the portfolio than a year ago.
Reinsurance Segment
Operating highlights for Endurance's Reinsurance segment for the quarter ended
March 31, 2015 were as follows:
* Gross premiums written of $565.2 million, an increase of 11.9% from the
first quarter of 2014;
* Net premiums written of $460.9 million, an increase of 1.1% from the first
quarter of 2014; and
* Combined ratio of 78.0%, which included favorable prior year loss reserve
development of 14.4 percentage points and net catastrophe losses from 2015
events of $2.7 million or 1.1 percentage points.
Gross premiums written in the Reinsurance segment increased $60.0 million for
the quarter ended March 31, 2015 compared to the same period in 2014 and grew
over $90.0 million when adjusted for year over year changes in foreign
currency. For the first quarter of 2015, the increase was driven by the
professional lines and specialty line of business, partially offset by declines
within the property and casualty lines of business. Gross premiums written in
the specialty line of business more than doubled in the current quarter, growing
$111.6 million compared to a year ago predominantly driven by new business
generated by our recently hired international agriculture and marine teams.
Growth in professional lines predominantly resulted from the identification of
new quota share opportunities while declines in property and casualty lines were
driven by the non-renewal of numerous contracts that no longer met our
profitability targets. For the quarter ended March 31, 2015, net premiums
written increased $5.2 million from a year ago as gross premiums written growth
was largely offset by greater levels of proportional and aggregate excess of
loss retrocessional coverage in the Company's catastrophe portfolio and a new
whole account quota share retrocession that was initiated for the majority of
the Reinsurance segment's specialty line of business.
The combined ratio in the Reinsurance segment for the first quarter of 2015
increased by 6.7 percentage points compared to the same period in 2014, due to
higher loss, acquisition and general and administrative expense ratios. The net
loss ratio increased by 3.3 percentage points in the current quarter compared to
a year ago predominantly due to modestly lower levels of favorable reserve
development and a change in expected loss assumptions for the casualty line.
The 2.4 percentage point increase in the current quarter's acquisition expense
ratio was attributed to reduced premiums written in shorter tail lines of
business, which have lower related acquisition expenses, and a greater level of
premiums written within the specialty line, which maintain higher acquisition
expenses. The general and administrative expense ratio increased 1.0 percentage
point in the first quarter of 2015 primarily from higher underwriter expenses
related to strategic investments made within our global specialty reinsurance
operations.
Investments
Endurance's net investment income for the quarter ended March 31, 2015 was $41.9
million, an increase of $0.9 million compared to the same period in 2014. The
total return of Endurance's investment portfolio was 0.88% for the quarter ended
March 31, 2015 compared to 1.24% for the quarter ended March 31, 2014.
Investment income generated from Endurance's available for sale investments
increased by $1.9 million for the three months ended March 31, 2015 compared to
the same period in 2014 due to an increase in the underlying available for sale
investment base and increased returns. During the quarter ended March 31,
2015, Endurance's net investment income included gains of $12.4 million on its
alternative investment funds and high yield loan funds, which are included in
other investments, as compared to $13.5 million in the first quarter of 2014.
The ending book yield on Endurance's fixed maturity investments at March 31,
2015 was 2.21%, up from 2.04% at March 31, 2014.
At March 31, 2015, Endurance's fixed maturity portfolio, which comprises 84.0%
of Endurance's investments, had an average credit quality of AA- and a duration
of 2.95 years. Endurance's fixed maturity portfolio was in a net unrealized
gain position of $110.6 million at March 31, 2015, an increase of $24.5 million
from December 31, 2014. Endurance recorded net realized investment gains of
$17.5 million during the first quarter of 2015 compared to $4.8 million during
the first quarter of 2014.
Endurance ended the first quarter of 2015 with cash and invested assets of $6.5
billion, which represents a 1.9% decrease from December 31, 2014. Net operating
cash outflow was $92.3 million for the three months ended March 31, 2015 versus
an outflow of $25.6 million for the same period in 2014.
Capitalization and Shareholders' Equity
At March 31, 2015, Endurance's shareholders' equity was $3.27 billion or $62.79
per diluted common share versus $3.19 billion or $61.33 per diluted common share
at December 31, 2014. For the quarter ended March 31, 2015, Endurance declared
and paid common dividends of $0.35 per share.
Earnings Call
Endurance will host a conference call on May 5, 2015 at 9:00 a.m. Eastern time
to discuss its financial results. The conference call can be accessed via
telephone by dialing (888) 221-3894 or (913) 312-1462 (international) and
entering pass code: 6977893. Those who intend to participate in the conference
call should register at least ten minutes in advance to ensure access to the
call. A telephone replay of the conference call will be available through May
19, 2015 by dialing (888) 203-1112 or (719) 457-0820 (international) and
entering the pass code: 6977893.
The public may access a live broadcast of the conference call at the "Investors"
section of Endurance's website, www.endurance.bm. Following the live broadcast,
an archived version will continue to be available on Endurance's website.
A copy of Endurance's financial supplement for the first quarter of 2015 will be
available on Endurance's website at www.endurance.bm shortly after the release
of earnings.
Operating income, operating return on average common equity, operating income
per diluted common share, operating income allocated to common shareholders and
the combined ratio excluding prior year net loss reserve development are non-
GAAP measures. Reconciliations of these measures to the appropriate GAAP
measures are included in the attached tables.
About Endurance Specialty Holdings
Endurance Specialty Holdings Ltd. is a global specialty provider of property and
casualty insurance and reinsurance. Through its operating subsidiaries,
Endurance writes agriculture, casualty and other specialty, professional lines
and property, marine and energy lines of insurance and catastrophe, property,
casualty, professional lines and specialty lines of reinsurance. We maintain
excellent financial strength as evidenced by the ratings of A (Excellent) from
A.M. Best (XV size category) and A (Strong) from Standard and Poor's on our
principal operating subsidiaries. Endurance's headquarters are located at
Waterloo House, 100 Pitts Bay Road, Pembroke HM 08, Bermuda and its mailing
address is Endurance Specialty Holdings Ltd., Suite No. 784, No. 48 Par-la-Ville
Road, Hamilton HM 11, Bermuda. For more information about Endurance, please
visit www.endurance.bm.
Safe Harbor for Forward-Looking Statements
Some of the statements in this press release may include, and Endurance may make
related oral forward-looking statements which reflect our current views with
respect to future events and financial performance. Such statements may include
forward-looking statements both with respect to us in general and the insurance
and reinsurance sectors specifically, both as to underwriting and investment
matters. These statements may also include assumptions about our proposed
acquisition of Montpelier Re Holdings Ltd. ("Montpelier") (including its
benefits, results, effects and timing). Statements which include the words
"should," "would," "expect," "intend," "plan," "believe," "project," "target,"
"anticipate," "seek," "will," "deliver," and similar statements of a future or
forward-looking nature identify forward-looking statements in this press release
for purposes of the U.S. federal securities laws or otherwise. We intend these
forward-looking statements to be covered by the safe harbor provisions for
forward-looking statements in the Private Securities Litigation Reform Act of
1995.
All forward-looking statements address matters that involve risks and
uncertainties. Accordingly, there are or may be important factors that could
cause actual results to differ materially from those indicated in the forward-
looking statements. These factors include, but are not limited to, the effects
of competitors' pricing policies, greater frequency or severity of claims and
loss activity, changes in market conditions in the agriculture insurance
industry, termination of or changes in the terms of the U.S. multiple peril crop
insurance program, a decreased demand for property and casualty insurance or
reinsurance, changes in the availability, cost or quality of reinsurance or
retrocessional coverage, our inability to renew business previously underwritten
or acquired, our inability to maintain our applicable financial strength
ratings, our inability to effectively integrate acquired operations,
uncertainties in our reserving process, changes to our tax status, changes in
insurance regulations, reduced acceptance of our existing or new products and
services, a loss of business from and credit risk related to our broker
counterparties, assessments for high risk or otherwise uninsured individuals,
possible terrorism or the outbreak of war, a loss of key personnel, political
conditions, changes in insurance regulation, changes in accounting policies, our
investment performance, the valuation of our invested assets, a breach of our
investment guidelines, the unavailability of capital in the future, developments
in the world's financial and capital markets and our access to such markets,
government intervention in the insurance and reinsurance industry, illiquidity
in the credit markets, changes in general economic conditions and other factors
described in our Annual Report on Form 10-K for the year ended December 31,
2014.
Additionally, the proposed transaction is subject to risks and uncertainties,
including: (A) that Endurance and Montpelier may be unable to complete the
proposed transaction because, among other reasons, conditions to the closing of
the proposed transaction may not be satisfied or waived; (B) uncertainty as to
the timing of completion of the proposed transaction; (C) uncertainty as to the
actual premium of the Endurance share component of the proposal that will be
realized by Montpelier shareholders in connection with the transaction; (D)
uncertainty as to the long-term value of Endurance ordinary shares; (E) failure
to realize the anticipated benefits and synergies from the proposed transaction,
including as a result of failure or delay in integrating Montpelier's businesses
into Endurance; (F) the risk that regulatory or other approvals required for the
transaction are not obtained or are obtained subject to conditions that are not
anticipated; (G) the inability to retain key personnel; (H) any changes in
general economic and/or industry specific conditions; and (I) the outcome of any
legal proceedings to the extent initiated against Endurance, Montpelier and
others following the announcement of the proposed transaction, as well as
Endurance and Montpelier management's response to any of the aforementioned
factors.
The foregoing review of important factors should not be construed as exhaustive
and should be read in conjunction with the other cautionary statements that are
included herein and elsewhere, including the risk factors included in
Endurance's most recent report on Form 10-K and the risk factors included in
Montpelier's most recent report on Form 10-K and other documents of Endurance
and Montpelier on file with the Securities and Exchange Commission ("SEC"). Any
forward-looking statements made in this material are qualified by these
cautionary statements, and there can be no assurance that the actual results or
developments anticipated by Endurance will be realized or, even if substantially
realized, that they will have the expected consequences to, or effects on,
Endurance or its business or operations. Except as required by law, the parties
undertake no obligation to update publicly or revise any forward-looking
statement, whether as a result of new information, future developments or
otherwise.
Additional Information about the Proposed Transaction and Where to Find It
The issuance of Endurance ordinary shares to Montpelier shareholders in the
merger will be submitted to shareholders of Endurance for their consideration.
The proposed merger will be submitted to shareholders of Montpelier for their
consideration. This material is not a solicitation of any vote or approval and
is not a substitute for the joint proxy statement/prospectus or any other
documents which Endurance or Montpelier may send to their respective
shareholders in connection with the proposed merger.
This material does not constitute an offer to sell or the solicitation of an
offer to sell or the solicitation of an offer to buy any securities, nor shall
there be any sale of securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or qualification
under the securities laws of such jurisdiction. No offering of securities shall
be made except by means of a proxy statement/prospectus meeting the requirements
of the Securities Act of 1933, as amended.
Endurance and Montpelier shareholders are urged to read the joint proxy
statement/prospectus for the proposed Acquisition when it is filed, and any
amendment or supplement thereto that may be filed, with the SEC because they
will contain important information. All such documents, when filed, are
available free of charge at the SEC's website (www.sec.gov) or by directing a
request to Endurance's Investor Relations contact at 441-278-0988.
Participants in the Solicitation
Endurance and Montpelier and their directors and executive officers are deemed
to be participants in any solicitation of Endurance and Montpelier shareholders
in connection with the proposed merger. Information about Endurance's directors
and executive officers is available in Endurance's Definitive Proxy Statement,
dated April 9, 2015, for its 2015 Annual General Meeting of shareholders.
Information about Montpelier's directors and executive officers is available in
Amendment No. 1 on Form 10-K/A filed on March 31, 2015, amending Montpelier's
Annual Report on Form 10-K, filed on February 25, 2015.
ENDURANCE SPECIALTY HOLDINGS LTD.
CONSOLIDATED BALANCE SHEETS
(In thousands of United States dollars, except share and per share amounts)
March 31, December 31,
2015 2014
---------------- --------------
Assets
Cash and cash equivalents $ 657,194 $ 745,472
Fixed maturity investments, available for sale,
at fair value 4,953,893 5,092,581
Short-term investments, available for sale, at
fair value 2,822 9,014
Equity securities, available for sale, at fair
value 366,897 331,368
Other investments 575,974 541,454
Premiums receivable, net 1,446,205 883,450
Insurance and reinsurance balances receivable 109,545 122,214
Deferred acquisition costs 258,753 207,368
Prepaid reinsurance premiums 692,466 354,940
Reinsurance recoverable on unpaid losses 605,809 670,795
Reinsurance recoverable on paid losses 136,642 218,291
Accrued investment income 23,165 27,183
Goodwill and intangible assets 151,816 153,405
Deferred tax asset 43,105 48,995
Net receivable on sales of investments 86,367 38,877
Other assets 269,491 199,375
---------------- --------------
Total Assets $ 10,380,144 $ 9,644,782
---------------- --------------
Liabilities
Reserve for losses and loss expenses $ 3,621,728 $ 3,846,859
Reserve for unearned premiums 1,964,307 1,254,519
Deposit liabilities 13,722 15,136
Reinsurance balances payable 502,339 375,711
Debt 527,781 527,715
Net payable on purchases of investments 163,891 151,682
Other liabilities 311,530 287,978
---------------- --------------
Total Liabilities 7,105,298 6,459,600
---------------- --------------
Shareholders' Equity
Preferred shares
Series A, non-cumulative - 8,000,000 issued
and outstanding (2014 - 8,000,000) 8,000 8,000
Series B, non-cumulative - 9,200,000 issued
and outstanding (2014 - 9,200,000) 9,200 9,200
Common shares
45,120,686 issued and outstanding (2014 -
44,765,153) 45,121 44,765
Additional paid-in capital 601,986 598,226
Accumulated other comprehensive income 77,759 76,706
Retained earnings 2,532,780 2,448,285
---------------- --------------
Total Shareholders' Equity 3,274,846 3,185,182
---------------- --------------
Total Liabilities and Shareholders' Equity $ 10,380,144 $ 9,644,782
---------------- --------------
Book Value per Common Share
Dilutive common shares outstanding 45,305,272 44,920,768
Diluted book value per common share [a] $ 62.79 $ 61.33
Note: All financial information contained herein is unaudited, except the
balance sheet data for the year ended December 31, 2014, which was derived from
Endurance's audited financial statements.
[a] Excludes the $430 million liquidation value of the preferred shares.
ENDURANCE SPECIALTY HOLDINGS LTD.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands of United States dollars, except share and per share amounts)
Three Months Ended
------------------------------
March 31, March 31,
2015 2014
--------------- --------------
Revenues
Gross premiums written $ 1,301,432 $ 1,157,515
--------------- --------------
Net premiums written $ 764,954 $ 798,705
Change in unearned premiums (375,095 ) (402,439 )
--------------- --------------
Net premiums earned 389,859 396,266
Other underwriting income (loss) 2,406 (1,238 )
Net investment income 41,861 40,990
Net realized and unrealized investment gains 18,189 4,872
Total other-than-temporary impairment losses (649 ) (111 )
Portion of loss recognized in other
comprehensive income - -
--------------- --------------
Net impairment losses recognized in earnings (649 ) (111 )
--------------- --------------
Total revenues 451,666 440,779
--------------- --------------
Expenses
Net losses and loss expenses 171,936 176,896
Acquisition expenses 82,093 72,157
General and administrative expenses 67,158 73,206
Amortization of intangibles 1,599 1,617
Net foreign exchange losses 7,552 2,964
Interest expense 9,059 9,051
--------------- --------------
Total expenses 339,397 335,891
--------------- --------------
Income before income taxes 112,269 104,888
Income tax expense (3,790 ) (408 )
--------------- --------------
Net income 108,479 104,480
Preferred dividends (8,188 ) (8,188 )
--------------- --------------
Net income available to common and participating
common shareholders $ 100,291 $ 96,292
--------------- --------------
Per share data
Basic earnings per common share $ 2.24 $ 2.17
--------------- --------------
Diluted earnings per common share $ 2.23 $ 2.17
--------------- --------------
ENDURANCE SPECIALTY HOLDINGS LTD.
RESULTS BY SEGMENT
(in thousands of United States dollars, except ratios)
Three Months Ended March 31, 2015
------------------------------------------
Reported
Insurance Reinsurance Totals
------------- ------------- --------------
Revenues
Gross premiums written $ 736,218 $ 565,214 $ 1,301,432
Ceded premiums written (432,179 ) (104,299 ) (536,478 )
------------- ------------- --------------
Net premiums written 304,039 460,915 764,954
------------- ------------- --------------
Net premiums earned 135,864 253,995 389,859
Other underwriting income - 2,406 2,406
------------- ------------- --------------
Total underwriting revenues 135,864 256,401 392,265
------------- ------------- --------------
Expenses
Net losses and loss expenses 74,512 97,424 171,936
Acquisition expenses 15,883 66,210 82,093
General and administrative
expenses 32,684 34,474 67,158
------------- ------------- --------------
123,079 198,108 321,187
------------- ------------- --------------
Underwriting income $ 12,785 $ 58,293 $ 71,078
------------- ------------- --------------
Net loss ratio 54.8 % 38.3 % 44.1 %
Acquisition expense ratio 11.7 % 26.1 % 21.1 %
General and administrative
expense ratio 24.1 % 13.6 % 17.2 %
------------- ------------- --------------
Combined ratio 90.6 % 78.0 % 82.4 %
------------- ------------- --------------
ENDURANCE SPECIALTY HOLDINGS LTD.
RESULTS BY SEGMENT
(in thousands of United States dollars, except ratios)
Three Months Ended March 31, 2014
------------------------------------------
Reported
Insurance Reinsurance Totals
------------- ------------- --------------
Revenues
Gross premiums written $ 652,276 $ 505,239 $ 1,157,515
Ceded premiums written (309,249 ) (49,561 ) (358,810 )
------------- ------------- --------------
Net premiums written 343,027 455,678 798,705
------------- ------------- --------------
Net premiums earned 144,021 252,245 396,266
Other underwriting loss - (1,238 ) (1,238 )
------------- ------------- --------------
Total underwriting revenues 144,021 251,007 395,028
------------- ------------- --------------
Expenses
Net losses and loss expenses 88,533 88,363 176,896
Acquisition expenses 12,261 59,896 72,157
General and administrative
expenses 41,736 31,470 73,206
------------- ------------- --------------
142,530 179,729 322,259
------------- ------------- --------------
Underwriting income $ 1,491 $ 71,278 $ 72,769
------------- ------------- --------------
Net loss ratio 61.5 % 35.0 % 44.6 %
Acquisition expense ratio 8.5 % 23.7 % 18.2 %
General and administrative
expense ratio 29.0 % 12.6 % 18.5 %
------------- ------------- --------------
Combined ratio 99.0 % 71.3 % 81.3 %
------------- ------------- --------------
ENDURANCE SPECIALTY HOLDINGS LTD.
CONSOLIDATED FINANCIAL RATIOS
As Reported
---------------------------------------------------------
Three Months Ended March 31,
---------------------------------------------------------
Insurance Reinsurance Total
------------------- ----------------- -------------------
2015 2014 2015 2014 2015 2014
Net loss ratio 54.8 % 61.5 % 38.3 % 35.0 % 44.1 % 44.6 %
Acquisition
expense ratio 11.7 % 8.5 % 26.1 % 23.7 % 21.1 % 18.2 %
General and
administrative
expense ratio 24.1 % 29.0 % 13.6 % 12.6 % 17.2 % 18.5 %
--------- --------- -------- -------- -------- ----------
Combined ratio 90.6 % 99.0 % 78.0 % 71.3 % 82.4 % 81.3 %
--------- --------- -------- -------- -------- ----------
Effect of Prior Year Net Loss
Reserve Development
Favorable /
(Unfavorable)
---------------------------------------------------------
Three Months Ended March 31,
---------------------------------------------------------
Insurance Reinsurance Total
------------------- ----------------- -------------------
2015 2014 2015 2014 2015 2014
Net loss ratio 15.2 % 8.1 % 14.4 % 15.3 % 14.7 % 12.7 %
--------- --------- -------- -------- -------- ----------
Net of Prior Year Net Loss
Reserve Development
---------------------------------------------------------
Three Months Ended March 31,
---------------------------------------------------------
Insurance Reinsurance Total
------------------- ----------------- -------------------
2015 2014 2015 2014 2015 2014
Net loss ratio 70.0 % 69.6 % 52.7 % 50.3 % 58.8 % 57.3 %
Acquisition
expense ratio 11.7 % 8.5 % 26.1 % 23.7 % 21.1 % 18.2 %
General and
administrative
expense ratio 24.1 % 29.0 % 13.6 % 12.6 % 17.2 % 18.5 %
--------- --------- -------- -------- -------- ----------
Combined ratio 105.8 % 107.1 % 92.4 % 86.6 % 97.1 % 94.0 %
--------- --------- -------- -------- -------- ----------
The combined ratio is the sum of the loss, acquisition expense and general
and administrative expense ratios. Endurance presents the combined ratio as
a measure that is commonly recognized as a standard of performance by
investors, analysts, rating agencies and other users of its financial
information. The combined ratio, excluding prior year net loss reserve
development, enables investors, analysts, rating agencies and other users of
its financial information to more easily analyze Endurance's results of
underwriting activities in a manner similar to how management analyzes
Endurance's underlying business performance. The combined ratio, net of
prior year net loss reserve development, should not be viewed as a
substitute for the combined ratio.
ENDURANCE SPECIALTY HOLDINGS LTD.
GROSS AND NET PREMIUMS WRITTEN BY SEGMENT
(in thousands of United States dollars)
The following tables show Endurance's gross and net premiums written for the
three months ended March 31, 2015 and 2014:
Three Months Ended Three Months Ended
March 31, 2015 March 31, 2014
------------------------------- ------------------------------
Gross Premiums Net Premiums Gross Premiums Net Premiums
Written Written Written Written
---------------- -------------- ---------------- -------------
Insurance
Agriculture $ 516,916 $ 202,460 $ 527,894 $ 281,645
Casualty and
other
specialty 100,682 45,058 67,653 36,813
Professional
lines 54,760 24,231 38,780 14,570
Property,
marine and
energy 63,860 32,290 17,949 9,999
---------------- -------------- ---------------- -------------
Subtotal
Insurance 736,218 304,039 652,276 343,027
---------------- -------------- ---------------- -------------
Reinsurance
Catastrophe 124,407 53,460 126,648 78,963
Property 125,700 123,449 166,413 166,322
Casualty 58,098 58,098 84,982 83,392
Professional
lines 43,857 43,857 25,619 25,619
Specialty 213,152 182,051 101,577 101,382
---------------- -------------- ---------------- -------------
Subtotal
Reinsurance 565,214 460,915 505,239 455,678
---------------- -------------- ---------------- -------------
Total $ 1,301,432 $ 764,954 $ 1,157,515 $ 798,705
---------------- -------------- ---------------- -------------
ENDURANCE SPECIALTY HOLDINGS LTD.
RECONCILIATIONS
(in thousands of United States dollars, except share, per share amounts and
ratios)
The following is a reconciliation of Endurance's net income, net income per
basic or diluted common share, net income allocated to common shareholders under
the two-class method and annualized return on average common equity to operating
income, operating income per basic or diluted common share, operating income
allocated to common shareholders under the two-class method and annualized
operating return on average common equity (all non-GAAP measures) for the three
months ended March 31, 2015 and 2014:
Three Months Ended
------------------------------
March 31,
------------------------------
2015 2014
--------------- --------------
Net income $ 108,479 $ 104,480
Add (less) after-tax items:
Net foreign exchange losses 7,574 2,972
Net realized and unrealized gains (17,314 ) (5,004 )
Net impairment losses recognized in earnings 649 111
--------------- --------------
Operating income before preferred dividends 99,388 102,559
Preferred dividends (8,188 ) (8,188 )
--------------- --------------
Operating income allocated to common and
participating common shareholders $ 91,200 $ 94,371
--------------- --------------
Operating income allocated to common
shareholders under the two-class method $ 88,509 $ 91,658
--------------- --------------
Weighted average diluted common shares 43,696,311 43,160,442
--------------- --------------
Operating income per diluted common share [b] $ 2.03 $ 2.12
--------------- --------------
Average common equity [a] $ 2,800,014 $ 2,513,829
Operating return on average common equity 3.3 % 3.8 %
--------------- --------------
Annualized operating return on average common
equity 13.0 % 15.0 %
--------------- --------------
Net income $ 108,479 $ 104,480
Preferred dividends (8,188 ) (8,188 )
--------------- --------------
Net income available to common and
participating common shareholders $ 100,291 $ 96,292
--------------- --------------
Net income allocated to common shareholders
under the two-class method $ 97,332 $ 93,523
--------------- --------------
Net income per diluted common share [b] $ 2.23 $ 2.17
--------------- --------------
Return on average common equity, Net income 3.6 % 3.8 %
--------------- --------------
Annualized return on average common equity, Net
income 14.3 % 15.3 %
--------------- --------------
[a] Average common equity is calculated as the arithmetic average of the
beginning and ending common equity balances for the stated period, which
excludes the $430 million liquidation value of the preferred shares.
[b] Represents diluted income per share calculated under the two-class method
which was the lower of the treasury stock method and the two-class method.
Operating income and operating income per basic or diluted common share are
internal performance measures used by Endurance in the management of its
operations. Operating income allocated to common shareholders (excludes
unvested restricted shares outstanding which are considered participating) per
diluted common share represents operating income divided by weighted average
dilutive common shares, which has been calculated in accordance with the two-
class method under U.S. GAAP. Operating income represents after-tax operational
results excluding, as applicable, after-tax net realized capital gains or losses
and after-tax net foreign exchange gains or losses because the amount of these
gains or losses is heavily influenced by, and fluctuates in part, according to
the availability of market opportunities. Endurance believes these amounts are
largely independent of its business and underwriting process and including them
distorts the analysis of trends in its operations. In addition to presenting
net income and net income per dilutive common share determined in accordance
with the two-class method under GAAP, Endurance believes that showing operating
income and operating income per dilutive common share enables investors,
analysts, rating agencies and other users of its financial information to more
easily analyze Endurance's results of operations in a manner similar to that
used by management to analyze the Company's underlying business performance.
Operating income and operating income per dilutive common share should not be
viewed as substitutes for GAAP net income and net income per dilutive common
share, respectively.
Endurance presents return on equity as a measure that is commonly recognized as
a standard of performance by investors, analysts, rating agencies and other
users of its financial information.
Contact:
Investor Relations
Phone: +1 441 278 0988
Email: investorrelations(at)endurance.bm
# # #
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Endurance Specialty Holdings Ltd via GlobeNewswire
[HUG#1918612]
Unternehmensinformation / Kurzprofil:
Datum: 04.05.2015 - 22:15 Uhr
Sprache: Deutsch
News-ID 390716
Anzahl Zeichen: 51614
contact information:
Town:
Pembroke
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 105 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Endurance Reports First Quarter 2015 Financial Results"
steht unter der journalistisch-redaktionellen Verantwortung von
Endurance Specialty Holdings Ltd (Nachricht senden)
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