Endurance Reports Strong Underlying Second Quarter 2016 Financial Results
(Thomson Reuters ONE) -
PEMBROKE, Bermuda - August 1, 2016 - Endurance Specialty Holdings Ltd.
(NYSE:ENH) today reported net income available to common shareholders of $76.6
million and $1.14 per diluted common share for the second quarter of 2016 versus
net income of $76.0 million and $1.68 per diluted common share for the second
quarter of 2015.
For the six months ended June 30, 2016, Endurance reported net income available
to common shareholders of $183.0 million and $2.72 per diluted common share
versus net income of $176.3 million and $3.91 per diluted common share for the
six months ended June 30, 2015. Book value per diluted common share was $68.20
at June 30, 2016, up 4.2% from December 31, 2015.
John R. Charman, Chairman and Chief Executive Officer, commented, "Endurance's
second quarter results demonstrated strong underlying underwriting profitability
as reflected by our combined ratio of 92.6%. Our embedded risk management
practices aligned with our comprehensive reinsurance and retrocessional programs
enabled us to achieve underwriting profitability in both business segments
despite a number of severe global catastrophes and large risk losses across the
industry. Our solid underwriting results benefited from our increased
scalability and focused expense management resulting in a significantly improved
general and administrative expense ratio."
"Strategically, the second quarter reflected our continued focused and
diversified core underwriting expansion as evidenced by the 32.0% growth in our
gross written premiums. In addition to our targeted growth across our global
businesses, our successful renewal of the Montpelier portfolio also helped drive
our expansion. The quick, effective and successful integration of Montpelier has
enabled us to exceed our expense and capital synergy objectives; those important
benefits are now clearly visible in our financial results. Endurance is well
equipped and very well positioned to thrive in the current market, which is
showing increasing signs of moderation."
Operating Highlights
Operating highlights for the quarter ended June 30, 2016 were as follows:
* Gross premiums written of $1,136.9 million, an increase of 32.0% compared to
the same period in 2015.
* Net premiums written of $717.8 million, an increase of 28.4% compared to the
same period in 2015.
* Combined ratio of 92.6% compared to 85.5% for the same period in 2015.
* An overall net negative financial impact from catastrophe losses in the
second quarter of 2016, including the Fort McMurray wildfires in Canada, the
convective storms in Texas and Europe and the Kumamoto earthquake in Japan
of $55.5 million, consisting of net loss expenses of $73.6 million partially
offset by $11.1 million in net reinstatement premiums and $7.0 million of
amounts attributable to non-controlling interests.
* Net loss ratio of 62.7% compared to 52.2% for the same period in 2015. The
net loss ratio for the current quarter was impacted by 11.3 percentage
points of catastrophe losses from second quarter 2016 events and also
included favorable prior year loss reserve development of $58.6 million or
9.8 percentage points compared to $58.8 million or 12.8 percentage points
for the second quarter of 2015.
* Net investment income of $44.0 million, an increase of $11.7 million from
the same period in 2015.
* Net foreign exchange gains included in net income were $32.8 million, while
foreign currency translation adjustments included in accumulated other
comprehensive income (loss) were losses of $37.7 million for the second
quarter of 2016.
* Net income available to common shareholders of $76.6 million and $1.14 per
diluted common share for the second quarter of 2016 versus net income of
$76.0 million and $1.68 per diluted common share for the second quarter of
2015. Operating income of $54.8 million and $0.81 per diluted common share,
a decrease of 31.1% and 54.0%, respectively, compared to the same period in
2015.
* Net income return on average common equity for the quarter of 1.7% or 6.7%
on an annualized basis. Operating income return on average common equity for
the quarter of 1.2% or 4.8% on an annualized basis.
Operating highlights for the six months ended June 30, 2016 were as follows:
* Gross premiums written of $2,748.6 million, an increase of 27.1% compared to
the same period in 2015.
* Net premiums written of $1,656.6 million, an increase of 25.1% compared to
the same period in 2015.
* Combined ratio of 85.5% compared to 84.1% for the same period in 2015.
* An overall net negative financial impact from catastrophe losses in 2016 of
$61.6 million, consisting of net loss expenses of $79.9 million partially
offset by $11.2 million in net reinstatement premiums and $7.1 million of
amounts attributable to non-controlling interests.
* Net loss ratio of 53.7% compared to 48.5% for the same period in 2015, which
was impacted by 6.4 percentage points of catastrophe losses from 2016
events. The net loss ratio for the current period also included favorable
prior year loss reserve development of $119.7 million or 10.4 percentage
points compared to $116.0 million or 13.7 percentage points for the same
period in 2015.
* Net investment income of $55.2 million, a decrease of $19.0 million over the
same period in 2015.
* Net foreign exchange gains included in net income were $44.5 million, while
foreign currency translation adjustments included in accumulated other
comprehensive income (loss) were losses of $50.1 million for the six months
ended June 30, 2016.
* Net income available to common shareholders of $183.0 million and $2.72 per
diluted common share versus net income of $176.3 million and $3.91 per
diluted common share for the six months ended June 30, 2015. Operating
income of $139.2 million and $2.07 per diluted common share, a decrease of
18.5% and 45.2% compared to the same period in 2015.
Insurance Segment
Operating highlights for Endurance's Insurance segment for the quarter ended
June 30, 2016:
* Gross premiums written of $593.7 million, an increase of $124.8 million or
26.6% from the second quarter of 2015.
* Non-agriculture lines of business, which include casualty and other
specialty, professional lines and property, marine/energy and aviation
lines of business grew 47.6% from a year ago driven by the expansion of
the Company's underwriting capabilities by product and geography over
the last three years as well as from the renewal and expansion of
business written within the Company's Lloyd's syndicate acquired from
Montpelier in 2015.
* The agriculture insurance line of business declined 40.3% compared to a
year ago as a result of lower commodity prices and the timing of
premiums written.
* Net premiums written of $239.6 million, an increase of $49.3 million or
25.9% from the second quarter of 2015.
* Non-agriculture lines of business increased 44.7% due to strong growth
in gross premiums written combined with a similar percentage of premiums
ceded to third party reinsurers compared to a year ago.
* The agriculture line of business decreased 113.1% due to the timing of
third party reinsurance contract placements year over year.
* Combined ratio of 93.2% compared to 95.2% for the same period in 2015.
* The net loss ratio improved 3.8 percentage points to 68.4% compared to
72.2% for the same period in 2015. The current period's net loss ratio
included favorable prior year loss reserve development of $24.2 million
or 9.5 percentage points and catastrophe losses of $4.4 million or 1.7
percentage points from second quarter 2016 events. The current accident
year net loss ratio of 77.9% improved 3.5 percentage points as lower
losses within the agriculture, professional lines, and the property,
marine/energy and aviation lines of business were partially offset by a
higher current accident year net loss ratio within the casualty and
other specialty line of business.
* The general and administrative expense ratio decreased 2.4 percentage
points, reflecting earned premium growth that outpaced the increase of
the Company's expense base as a result of improved scale in the
Company's expanding insurance business and a greater amount of ceding
commissions received.
* The acquisition expense ratio increased 4.2 percentage points in the
current quarter as non-agriculture lines of business with higher
acquisition costs accounted for a greater percentage of earned premiums
compared to a year ago.
Operating highlights for Endurance's Insurance segment for the six months ended
June 30, 2016:
* Gross premiums written of $1,428.8 million, an increase of $223.7 million or
18.6% over the same period in 2015.
* Net premiums written of $610.5 million, an increase of 23.5% over the same
period in 2015.
* Combined ratio of 91.5% compared to 92.2% for the same period in 2015. The
combined ratio was impacted by lower net loss and general and administrative
expense ratios, partially offset by a higher acquisition expense ratio. The
current period's net loss ratio included $47.4 million or 10.0 percentage
points of favorable prior year loss reserve development and catastrophe
losses, net of reinsurance, from 2016 events of $4.4 million or 0.9
percentage points.
Reinsurance Segment
Operating highlights for Endurance's Reinsurance segment for the quarter ended
June 30, 2016:
* Gross premiums written of $543.2 million, an increase of $150.9 million or
38.5% from the second quarter of 2015.
* The catastrophe and property lines of business increased $97.2 million,
predominantly due to the successful targeted renewals of acquired
Montpelier business, partially offset by non-renewals and line size
reductions.
* The specialty line of business increased $18.1 million largely due to
growth in marine, agriculture and aviation, as global underwriting teams
added over the past three years continue to identify profitable new
opportunities.
* The casualty line of business increased $34.1 million, predominantly
driven by new business within the Company's international and U.S.
offices partially offset by select non-renewals.
* Net premiums written of $478.2 million, an increase of $109.4 million or
29.7% from the second quarter of 2015. The increase in net premiums written
was driven by increased gross written premiums, partially offset by greater
third party retrocessional protection purchased for the catastrophe and
specialty lines of business.
* Combined ratio of 88.7% compared to 73.0% for the same period in 2015.
* The current period's net loss ratio of 58.5% increased 22.0 percentage
points compared to 2015. Net catastrophe losses from second quarter
2016 events impacted the net loss ratio by 18.7 percentage points and
were $69.1 million before reinstatement premiums of $11.1 million. The
increase in the current quarter accident year net loss ratio of 16.3
percentage points was predominantly due to catastrophe losses being
14.8 percentage points higher in the current quarter compared to a year
ago. The current period's net loss ratio included favorable prior year
loss reserve development of $34.4 million or 10.0 percentage points.
* The 3.3 percentage point improvement in the current quarter's
acquisition expense ratio was largely due to the earning of premiums
acquired from Montpelier that do not have related acquisition costs as
these costs were written off on the acquisition date.
* The general and administrative expense ratio declined 3.0 percentage
points in the second quarter of 2016 primarily as a result of leveraging
increased earned premiums on an expense base that benefited from
increased ceding commissions received.
Operating highlights for Endurance's Reinsurance segment for the six months
ended June 30, 2016:
* Gross premiums written of $1,319.8 million, an increase of $362.3 million or
37.8% over the same period in 2015.
* Net premiums written of $1,046.1 million, an increase of 26.1% over the same
period in 2015.
* Combined ratio of 77.9%, compared to 73.8% for the same period in 2015. The
combined ratio was impacted by a higher net loss ratio partially offset by
lower acquisition and general and administrative expense ratios. The current
period's net loss ratio included $72.4 million or 10.6 percentage points of
favorable prior year loss reserve development and 10.4 percentage points of
net catastrophe losses from 2016 events, which amounted to $75.5 million
before reinstatement premiums of $11.2 million.
Investments
Endurance's net investment income for the quarter and six months ended June 30,
2016 was $44.0 million and $55.2 million, an increase of $11.7 million and
decrease of $19.0 million, respectively, compared to the same periods in 2015.
The total investment return of Endurance's investment portfolio was 1.14% and
2.07% for the quarter and six months ended June 30, 2016, respectively, compared
to (0.39)% and 0.89% for the quarter and six months ended June 30, 2015,
respectively.
Net investment income benefited from increases in investment income generated
from Endurance's trading and available for sale investments for the quarter and
six months ended June 30, 2016 compared to the same periods in 2015 due to an
increase in invested assets. During the quarter and six months ended June 30,
2016, Endurance's net investment income on its alternative investment funds and
high yield loan funds, which are included in other investments, included gains
of $5.3 million and losses of $23.0 million, as compared to gains of $3.6
million and $16.0 million in the same periods in 2015. The ending book yield on
Endurance's fixed maturity investments at June 30, 2016 was 2.27%, unchanged
from June 30, 2015.
At June 30, 2016, Endurance's fixed maturity and short term investments, which
comprises 82.7% of Endurance's investments, had an average credit quality of AA-
and a duration of 2.57 years. Endurance's available for sale portfolio was in a
net unrealized gain position of $104.0 million at June 30, 2016, an increase of
$116.6 million from December 31, 2015. Endurance recorded net realized and
unrealized investment losses, net of impairments, of $3.5 million and gains of
$9.7 million during the quarter and six months ended June 30, 2016, compared to
gains of $9.3 million and $26.8 million during the quarter and six months ended
June 30, 2015.
Endurance ended the second quarter of 2016 with cash and invested assets of $8.6
billion, which represents a 3.0% decrease from December 31, 2015. Net operating
cash inflow was $34.5 million for the six months ended June 30, 2016 versus
$23.5 million for the same period in 2015.
Capitalization and Shareholders' Equity
At June 30, 2016, Endurance's shareholders' equity was $5.10 billion or $68.20
per diluted common share versus $5.12 billion or $65.48 per diluted common share
at December 31, 2015. For the quarter and six months ended June 30, 2016,
Endurance declared and paid common dividends of $0.38 and $0.76 per share,
respectively.
On June 1, 2016, Endurance redeemed all 9,200,000 shares outstanding of its
7.5% Non-Cumulative Preferred Shares, Series B, for $230.0 million.
Earnings Call
Endurance will host a conference call on August 2, 2016 at 9:00 a.m. Eastern
time to discuss its financial results. The conference call can be accessed via
telephone by dialing (888) 417-8465 or (719) 325-2323 (international) and
entering pass code: 181429. 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 August
16, 2016 by dialing (888) 203-1112 or (719) 457-0820 (international) and
entering the pass code: 181429.
The public may access a live broadcast of the conference call at the "Investor
Relations" 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 second quarter of 2016 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/energy and aviation 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. 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,
2015.
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 Annual report on Form 10-K and other documents of
Endurance on file with the Securities and Exchange Commission. 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, Endurance
undertakes no obligation to update publicly or revise any forward-looking
statement, whether as a result of new information, future developments or
otherwise.
The contents of any website referenced in this press release are not
incorporated by reference herein.
Contact:
Investor Relations
Phone: +1 441 278 0988
Email: investorrelations(at)endurance.bm
ENDURANCE SPECIALTY HOLDINGS LTD.
CONSOLIDATED BALANCE SHEETS
(In thousands of United States dollars, except share and per share amounts)
June 30, December 31,
2016 2015
---------------- ---------------
Assets
Cash and cash equivalents $ 1,092,977 $ 1,177,750
Fixed maturity investments, trading, at fair
value 2,126,600 1,587,160
Fixed maturity investments, available for sale,
at fair value 3,892,479 4,359,019
Short-term investments, trading, at fair value 295,442 394,111
Short-term investments, available for sale, at
fair value 18,849 25,685
Equity securities, trading, at fair value 36,332 15,229
Equity securities, available for sale, at fair
value 506,010 513,585
Other investments 779,810 872,617
Premiums receivable, net 2,291,117 1,376,328
Insurance and reinsurance balances receivable 129,861 102,403
Deferred acquisition costs 363,406 255,501
Prepaid reinsurance premiums 885,892 498,574
Reinsurance recoverable on unpaid losses 1,105,617 907,944
Reinsurance recoverable on paid losses 348,219 288,026
Accrued investment income 30,299 30,213
Goodwill and intangible assets 511,649 553,960
Deferred tax asset 52,722 64,164
Net receivable on sales of investments 89,144 31,873
Other assets 275,242 187,383
---------------- ---------------
Total Assets $ 14,831,667 $ 13,241,525
---------------- ---------------
Liabilities
Reserve for losses and loss expenses $ 4,727,997 $ 4,510,415
Reserve for unearned premiums 2,670,607 1,789,148
Deposit liabilities 12,573 13,674
Reinsurance balances payable 1,066,197 661,213
Debt 705,261 717,650
Net payable on purchases of investments 192,793 63,442
Deferred tax liability 15,817 17,315
Other liabilities 335,933 344,596
---------------- ---------------
Total Liabilities 9,727,178 8,117,453
---------------- ---------------
Shareholders' Equity
Preferred shares
Series B, non-cumulative - nil issued and
outstanding (2015 - 9,200,000) - 9,200
Series C, non-cumulative - 9,200 issued and
outstanding (2015 - 9,200) 9 9
Common shares
67,565,483 issued and outstanding (2015 -
66,797,991) 67,565 66,798
Additional paid-in capital 1,944,381 2,145,836
Accumulated other comprehensive income (loss) 19,949 (46,634 )
Retained earnings 2,812,734 2,681,053
---------------- ---------------
Total Shareholders' Equity Available to the
Company 4,844,638 4,856,262
Non-controlling interests 259,851 267,810
---------------- ---------------
Total Shareholders' Equity 5,104,489 5,124,072
---------------- ---------------
Total Liabilities and Shareholders' Equity $ 14,831,667 $ 13,241,525
---------------- ---------------
Book Value per Common Share
Basic common shares outstanding 66,173,916 65,440,712
Dilutive common shares outstanding 67,661,540 67,136,986
Basic book value per common share [a] $ 69.73 $ 67.18
Diluted book value per common share [a], [b] $ 68.20 $ 65.48
Note: All financial information contained herein is unaudited, except the
balance sheet data for the year ended December 31, 2015, which was derived from
Endurance's audited financial statements.
[a] Excludes the $230.0 million at June 30, 2016 (December 31, 2015 - $460.0
million) liquidation value of the preferred shares.
[b] The Company has included diluted book value per common share because it
takes into account the effect of dilutive securities; therefore, the Company
believes it is a better measure of calculating shareholder returns than book
value per common share.
ENDURANCE SPECIALTY HOLDINGS LTD.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands of United States dollars, except share and per share amounts)
Three Months Ended Six Months Ended
----------------------------- ------------------------------
June 30, June 30, June 30, June 30,
2016 2015 2016 2015
--------------- ------------- ------------------------------
Revenues
Gross premiums
written $ 1,136,930 $ 861,184 $ 2,748,607 $ 2,162,616
--------------- ------------- --------------- --------------
Net premiums written $ 717,768 $ 559,083 $ 1,656,610 $ 1,324,037
Change in unearned
premiums (118,160 ) (100,948 ) (503,811 ) (476,043 )
--------------- ------------- --------------- --------------
Net premiums earned 599,608 458,135 1,152,799 847,994
Other underwriting
income (loss) 930 1,389 (1,514 ) 3,795
Net investment
income 43,977 32,252 55,158 74,113
Net realized and
unrealized gains 6,347 9,680 20,134 27,869
Net impairment
losses recognized in
earnings (9,841 ) (424 ) (10,464 ) (1,073 )
--------------- ------------- --------------- --------------
Total revenues 641,021 501,032 1,216,113 952,698
--------------- ------------- --------------- --------------
Expenses
Net losses and loss
expenses 376,112 239,122 619,440 411,058
Acquisition expenses 111,961 84,971 215,803 167,064
General and
administrative
expenses 55,079 54,965 127,304 109,855
Corporate expenses 11,830 12,634 23,601 24,902
Amortization of
intangibles 20,943 1,579 42,317 3,178
Net foreign exchange
(gains) losses (32,751 ) 12,981 (44,480 ) 20,533
Interest expense 11,357 9,062 22,227 18,121
--------------- ------------- --------------- --------------
Total expenses 554,531 415,314 1,006,212 754,711
--------------- ------------- --------------- --------------
Income before income
taxes 86,490 85,718 209,901 197,987
Income tax benefit
(expense) 1,138 (1,512 ) 2,371 (5,302 )
--------------- ------------- --------------- --------------
Net income 87,628 84,206 212,272 192,685
Net income
attributable to non-
controlling
interests (3,714 ) - (12,777 ) -
--------------- ------------- --------------- --------------
Net income available
to the Company 83,914 84,206 199,495 192,685
Preferred dividends (7,293 ) (8,188 ) (16,496 ) (16,376 )
--------------- ------------- --------------- --------------
Net income available
to common and
participating common
shareholders $ 76,621 $ 76,018 $ 182,999 $ 176,309
--------------- ------------- --------------- --------------
Per share data
Basic earnings per
common share $ 1.14 $ 1.69 $ 2.72 $ 3.92
--------------- ------------- --------------- --------------
Diluted earnings per
common share $ 1.14 $ 1.68 $ 2.72 $ 3.91
--------------- ------------- --------------- --------------
ENDURANCE SPECIALTY HOLDINGS LTD.
RESULTS BY SEGMENT
(in thousands of United States dollars, except ratios)
Three Months Ended June 30, 2016
-------------------------------------------
Reported
Insurance Reinsurance Totals
------------- ------------- ---------------
Revenues
Gross premiums written $ 593,706 $ 543,224 $ 1,136,930
Ceded premiums written (354,104 ) (65,058 ) (419,162 )
------------- ------------- ---------------
Net premiums written 239,602 478,166 717,768
------------- ------------- ---------------
Net premiums earned 253,784 345,824 599,608
Other underwriting income - 930 930
------------- ------------- ---------------
Total underwriting revenues 253,784 346,754 600,538
------------- ------------- ---------------
Expenses
Net losses and loss expenses 173,858 202,254 376,112
Acquisition expenses 32,868 79,093 111,961
General and administrative
expenses 29,825 25,254 55,079
------------- ------------- ---------------
236,551 306,601 543,152
------------- ------------- ---------------
Underwriting income $ 17,233 $ 40,153 57,386
------------- ------------- ---------------
Net investment income 43,977
Corporate expenses (11,830 )
Interest expense (11,357 )
Amortization of intangibles (20,943 )
Net foreign exchange gains 32,751
Net realized and unrealized
gains 6,347
Net impairment losses
recognized in earnings (9,841 )
---------------
Income before income taxes $ 86,490
---------------
Net loss ratio 68.4 % 58.5 % 62.7 %
Acquisition expense ratio 13.0 % 22.9 % 18.7 %
General and administrative
expense ratio 11.8 % 7.3 % 11.2 % [a]
------------- ------------- ---------------
Combined ratio 93.2 % 88.7 % 92.6 %
------------- ------------- ---------------
[a] The total general and administrative expense ratio includes general and
administrative expenses and corporate expenses.
ENDURANCE SPECIALTY HOLDINGS LTD.
RESULTS BY SEGMENT
(in thousands of United States dollars, except ratios)
Three Months Ended June 30, 2015
-----------------------------------------
Reported
Insurance Reinsurance Totals
------------- ------------- -------------
Revenues
Gross premiums written $ 468,866 $ 392,318 $ 861,184
Ceded premiums written (278,567 ) (23,534 ) (302,101 )
------------- ------------- -------------
Net premiums written 190,299 368,784 559,083
------------- ------------- -------------
Net premiums earned 201,460 256,675 458,135
Other underwriting income - 1,389 1,389
------------- ------------- -------------
Total underwriting revenues 201,460 258,064 459,524
------------- ------------- -------------
Expenses
Net losses and loss expenses 145,483 93,639 239,122
Acquisition expenses 17,702 67,269 84,971
General and administrative
expenses 28,567 26,398 54,965
------------- ------------- -------------
191,752 187,306 379,058
------------- ------------- -------------
Underwriting income $ 9,708 $ 70,758 80,466
------------- ------------- -------------
Net investment income 32,252
Corporate expenses (12,634 )
Interest expense (9,062 )
Amortization of intangibles (1,579 )
Net foreign exchange losses (12,981 )
Net realized and unrealized
gains 9,680
Net impairment losses recognized
in earnings (424 )
-------------
Income before income taxes $ 85,718
-------------
Net loss ratio 72.2 % 36.5 % 52.2 %
Acquisition expense ratio 8.8 % 26.2 % 18.5 %
General and administrative
expense ratio 14.2 % 10.3 % 14.8 % [a]
------------- ------------- -------------
Combined ratio 95.2 % 73.0 % 85.5 %
------------- ------------- -------------
[a] The total general and administrative expense ratio includes general and
administrative expenses and corporate expenses.
ENDURANCE SPECIALTY HOLDINGS LTD.
RESULTS BY SEGMENT
(in thousands of United States dollars, except ratios)
Six Months Ended June 30, 2016
-----------------------------------------------
Reported
Insurance Reinsurance Totals
--------------- --------------- ---------------
Revenues
Gross premiums written $ 1,428,823 $ 1,319,784 $ 2,748,607
Ceded premiums written (818,277 ) (273,720 ) (1,091,997 )
--------------- --------------- ---------------
Net premiums written 610,546 1,046,064 1,656,610
--------------- --------------- ---------------
Net premiums earned 473,353 679,446 1,152,799
Other underwriting loss - (1,514 ) (1,514 )
--------------- --------------- ---------------
Total underwriting
revenues 473,353 677,932 1,151,285
--------------- --------------- ---------------
Expenses
Net losses and loss
expenses 301,661 317,779 619,440
Acquisition expenses 63,226 152,577 215,803
General and administrative
expenses 68,254 59,050 127,304
--------------- --------------- ---------------
433,141 529,406 962,547
--------------- --------------- ---------------
Underwriting income $ 40,212 $ 148,526 188,738
--------------- --------------- ---------------
Net investment income 55,158
Corporate expenses (23,601 )
Interest expense (22,227 )
Amortization of
intangibles (42,317 )
Net foreign exchange gains 44,480
Net realized and
unrealized gains 20,134
Net impairment losses
recognized in earnings (10,464 )
---------------
Income before income taxes $ 209,901
---------------
Net loss ratio 63.7 % 46.7 % 53.7 %
Acquisition expense ratio 13.4 % 22.5 % 18.7 %
General and administrative
expense ratio 14.4 % 8.7 % 13.1 % [a]
--------------- --------------- ---------------
Combined ratio 91.5 % 77.9 % 85.5 %
--------------- --------------- ---------------
[a] General and administrative expense ratio includes general and administrative
expenses and corporate expenses.
ENDURANCE SPECIALTY HOLDINGS LTD.
RESULTS BY SEGMENT
(in thousands of United States dollars, except ratios)
Six Months Ended June 30, 2015
---------------------------------------------
Reported
Insurance Reinsurance Totals
--------------- ------------- ---------------
Revenues
Gross premiums written $ 1,205,084 $ 957,532 $ 2,162,616
Ceded premiums written (710,746 ) (127,833 ) (838,579 )
--------------- ------------- ---------------
Net premiums written 494,338 829,699 1,324,037
--------------- ------------- ---------------
Net premiums earned 337,324 510,670 847,994
Other underwriting income - 3,795 3,795
--------------- ------------- ---------------
Total underwriting revenues 337,324 514,465 851,789
--------------- ------------- ---------------
Expenses
Net losses and loss expenses 219,995 191,063 411,058
Acquisition expenses 33,585 133,479 167,064
General and administrative
expenses 57,409 52,446 109,855
--------------- ------------- ---------------
310,989 376,988 687,977
--------------- ------------- ---------------
Underwriting income $ 26,335 $ 137,477 163,812
--------------- ------------- ---------------
Net investment income 74,113
Corporate expenses (24,902 )
Interest expense (18,121 )
Amortization of intangibles (3,178 )
Net foreign exchange losses (20,533 )
Net realized and unrealized
gains 27,869
Net impairment losses
recognized in earnings (1,073 )
---------------
Income before income taxes $ 197,987
---------------
Net loss ratio 65.2 % 37.4 % 48.5 %
Acquisition expense ratio 10.0 % 26.1 % 19.7 %
General and administrative
expense ratio 17.0 % 10.3 % 15.9 % [a]
--------------- ------------- ---------------
Combined ratio 92.2 % 73.8 % 84.1 %
--------------- ------------- ---------------
[a] General and administrative expense ratio includes general and administrative
expenses and corporate expenses.
ENDURANCE SPECIALTY HOLDINGS LTD.
CONSOLIDATED FINANCIAL RATIOS
As Reported
----------------------------------------------------------
Three Months Ended June 30,
----------------------------------------------------------
Insurance Reinsurance Total
------------------- ----------------- --------------------
2016 2015 2016 2015 2016 2015
Net loss ratio 68.4 % 72.2 % 58.5 % 36.5 % 62.7 % 52.2 %
Acquisition
expense ratio 13.0 % 8.8 % 22.9 % 26.2 % 18.7 % 18.5 %
General and
administrative
expense ratio 11.8 % 14.2 % 7.3 % 10.3 % 11.2 % [a] 14.8 % [a]
--------- --------- -------- -------- --------- --------
Combined ratio
[b] 93.2 % 95.2 % 88.7 % 73.0 % 92.6 % 85.5 %
--------- --------- -------- -------- --------- --------
Effect of Prior Year Net Loss Reserve
Development
Favorable /
(Unfavorable)
----------------------------------------------------------
Three Months Ended June 30,
----------------------------------------------------------
Insurance Reinsurance Total
------------------- ----------------- --------------------
2016 2015 2016 2015 2016 2015
Net loss ratio 9.5 % 9.2 % 10.0 % 15.7 % 9.8 % 12.8 %
--------- --------- -------- -------- --------- --------
Net of Prior Year Net Loss Reserve
Development
----------------------------------------------------------
Three Months Ended June 30,
----------------------------------------------------------
Insurance Reinsurance Total
------------------- ----------------- --------------------
2016 2015 2016 2015 2016 2015
Net loss ratio 77.9 % 81.4 % 68.5 % 52.2 % 72.5 % 65.0 %
Acquisition
expense ratio 13.0 % 8.8 % 22.9 % 26.2 % 18.7 % 18.5 %
General and
administrative
expense ratio 11.8 % 14.2 % 7.3 % 10.3 % 11.2 % [a] 14.8 % [a]
--------- --------- -------- -------- --------- --------
Combined ratio
[b] 102.7 % 104.4 % 98.7 % 88.7 % 102.4 % 98.3 %
--------- --------- -------- -------- --------- --------
[a] The total general and administrative expense ratio includes general and
administrative expenses and corporate expenses.
[b] The combined ratio is the sum of the net loss, acquisition expense and
general and administrative expense ratios, and the total combined ratio
includes corporate expenses. 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.
CONSOLIDATED FINANCIAL RATIOS
As Reported
---------------------------------------------------------
Six Months Ended June 30,
---------------------------------------------------------
Insurance Reinsurance Total
------------------- ----------------- -------------------
2016 2015 2016 2015 2016 2015
Net loss ratio 63.7 % 65.2 % 46.7 % 37.4 % 53.7 % 48.5 %
Acquisition
expense ratio 13.4 % 10.0 % 22.5 % 26.1 % 18.7 % 19.7 %
General and
administrative
expense ratio 14.4 % 17.0 % 8.7 % 10.3 % 13.1 % [a] 15.9 % [a]
--------- --------- -------- -------- -------- --------
Combined ratio
[b] 91.5 % 92.2 % 77.9 % 73.8 % 85.5 % 84.1 %
--------- --------- -------- -------- -------- --------
Effect of Prior Year Net Loss Reserve
Development
Favorable /
(Unfavorable)
---------------------------------------------------------
Six Months Ended June 30,
---------------------------------------------------------
Insurance Reinsurance Total
------------------- ----------------- -------------------
2016 2015 2016 2015 2016 2015
Net loss ratio 10.0 % 11.6 % 10.6 % 15.0 % 10.4 % 13.7 %
--------- --------- -------- -------- -------- --------
Net of Prior Year Net Loss Reserve
Development
---------------------------------------------------------
Six Months Ended June 30,
---------------------------------------------------------
Insurance Reinsurance Total
------------------- ----------------- -------------------
2016 2015 2016 2015 2016 2015
Net loss ratio 73.7 % 76.8 % 57.3 % 52.4 % 64.1 % 62.2 %
Acquisition
expense ratio 13.4 % 10.0 % 22.5 % 26.1 % 18.7 % 19.7 %
General and
administrative
expense ratio 14.4 % 17.0 % 8.7 % 10.3 % 13.1 % [a] 15.9 % [a]
--------- --------- -------- -------- -------- --------
Combined ratio
[b] 101.5 % 103.8 % 88.5 % 88.8 % 95.9 % 97.8 %
--------- --------- -------- -------- -------- --------
[a] The total general and administrative expense ratio includes general and
administrative expenses and corporate expenses.
[b] The combined ratio is the sum of the net loss, acquisition expense and
general and administrative expense ratios, and the total combined ratio
includes corporate expenses. 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
quarter ended June 30, 2016 and 2015:
Three Months Ended Three Months Ended
June 30, 2016 June 30, 2015
--------------------------------- -----------------------------
Gross Premiums Net Premiums Gross Net Premiums
Written Written Premiums Written
Written
----------------- --------------- --------------- -------------
Insurance
Agriculture $ 66,922 $ (2,962 ) $ 112,012 $ 22,677
Casualty and
other specialty 178,081 77,965 146,056 65,302
Professional
lines 122,679 51,204 96,736 43,443
Property,
marine/energy
and
aviation 226,024 113,395 114,062 58,877
----------------- --------------- --------------- -------------
Subtotal
Insurance $ 593,706 $ 239,602 $ 468,866 $ 190,299
----------------- --------------- --------------- -------------
Reinsurance
Catastrophe $ 236,995 $ 197,681 $ 139,833 $ 122,305
Property 30,646 31,304 30,560 30,118
Casualty 82,263 80,921 48,132 48,132
Professional
lines 135,638 135,031 134,241 134,241
Specialty 57,682 33,229 39,552 33,988
----------------- --------------- --------------- -------------
Subtotal
Reinsurance $ 543,224 $ 478,166 $ 392,318 $ 368,784
----------------- --------------- --------------- -------------
Total $ 1,136,930 $ 717,768 $ 861,184 $ 559,083
----------------- --------------- --------------- -------------
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 six
months ended June 30, 2016 and 2015:
Six Months Ended Six Months Ended
June 30, 2016 June 30, 2015
--------------------------------- -------------------------------
Gross Premiums Net Premiums Gross Premiums Net Premiums
Written Written Written Written
---------------- ---------------- ---------------- --------------
Insurance
Agriculture $ 563,138 $ 205,665 $ 628,928 $ 225,137
Casualty and
other
specialty 316,336 141,462 246,738 110,360
Professional
lines 200,094 94,538 151,496 67,674
Property,
marine and
energy 349,255 168,881 177,922 91,167
---------------- ---------------- ---------------- --------------
Subtotal
Insurance $ 1,428,823 $ 610,546 $ 1,205,084 $ 494,338
---------------- ---------------- ---------------- --------------
Reinsurance
Catastrophe $ 437,825 $ 286,549 $ 264,240 $ 175,765
Property 187,112 181,360 156,260 153,567
Casualty 180,983 179,640 106,230 106,230
Professional
lines 184,187 183,251 178,098 178,098
Specialty 329,677 215,264 252,704 216,039
---------------- ---------------- ---------------- --------------
Subtotal
Reinsurance $ 1,319,784 $ 1,046,064 $ 957,532 $ 829,699
---------------- ---------------- ---------------- --------------
Total $ 2,748,607 $ 1,656,610 $ 2,162,616 $ 1,324,037
---------------- ---------------- ---------------- --------------
ENDURANCE SPECIALTY HOLDINGS LTD.
RECONCILIATIONS OF NON-GAAP MEASURES
In presenting the Company's results, management has included and discussed
certain non-GAAP measures. Management believes that these non-GAAP measures,<
Unternehmensinformation / Kurzprofil:
Datum: 01.08.2016 - 22:15 Uhr
Sprache: Deutsch
News-ID 486638
Anzahl Zeichen: 65614
contact information:
Town:
Pembroke
Kategorie:
Business News
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"Endurance Reports Strong Underlying Second Quarter 2016 Financial Results"
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