Endurance Reports Fourth Quarter 2016 Financial Results
(Thomson Reuters ONE) -
PEMBROKE, Bermuda - February 24, 2017 - Endurance Specialty Holdings Ltd.
(NYSE:ENH) today reported net income available to common shareholders of $20.1
million and $0.30 per diluted common share for the fourth quarter of 2016 versus
net income of $91.4 million and $1.36 per diluted common share for the fourth
quarter of 2015.
For the year ended December 31, 2016, Endurance reported net income available to
common shareholders of $333.2 million and $4.93 per diluted common share versus
net income of $311.3 million and $5.73 per diluted common share for the year
ended December 31, 2015. Book value per diluted share was $68.66 at
December 31, 2016, up 4.9% from December 31, 2015.
Operating Highlights
Operating highlights for the quarter ended December 31, 2016 were as follows:
* Gross premiums written of $692.9 million, an increase of 34.4% compared to
the same period in 2015.
* Net premiums written of $364.3 million, an increase of 25.7% compared to the
same period in 2015.
* Combined ratio of 93.7% compared to 76.2% for the same period in 2015.
* An overall net negative financial impact from catastrophe losses related to
current quarter events of $59.6 million, consisting of net loss expenses of
$74.7 million partially offset by $9.5 million in net reinstatement premiums
and $5.6 million of amounts attributable to non-controlling interests.
* Net loss ratio of 61.7% compared to 42.2% for the same period in 2015, which
was impacted by 11.7 percentage points of catastrophe losses from current
quarter events. The net loss ratio for the current quarter was impacted by
favorable prior year loss reserve development of $47.6 million or 7.9
percentage points compared to $60.1 million or 10.5 percentage points for
the fourth quarter of 2015.
* Net investment income of $59.2 million, an increase of $36.0 million from
the same period in 2015.
* Net foreign exchange gains included in net income of $11.6 million, which
were largely offset by foreign currency translation adjustments included in
accumulated other comprehensive loss.
* Adjusted operating income of $55.8 million and $0.82 per diluted common
share, a decrease of 51.0% and 51.5%, respectively, compared to the same
period in 2015.
* Net income return on average common equity for the quarter of 0.4% or 1.7%
on an annualized basis while adjusted operating return on average common
equity for the quarter was 1.2% or 4.8% on an annualized basis.
Operating highlights for the year ended December 31, 2016:
* Gross premiums written of $4,202.2 million, an increase of 26.5% compared to
the same period in 2015.
* Net premiums written of $2,369.9 million, an increase of 21.5% compared to
the same period in 2015.
* Combined ratio of 88.1% compared to 82.9% for the same period in 2015.
* An overall net negative financial impact from catastrophe losses in 2016 of
$140.4 million, consisting of net loss expenses of $174.9 million partially
offset by $21.5 million in net reinstatement premiums and $13.0 million of
amounts attributable to non-controlling interests.
* Net loss ratio of 55.9% compared to 46.4% for the same period in 2015, which
was impacted by 9.8 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 $221.6 million or 9.4 percentage
points compared to $243.5 million or 12.3 percentage points for the same
period in 2015.
* Net investment income of $176.6 million, an increase of $62.8 million over
the same period in 2015.
* Net foreign exchange gains included in net income of $74.7 million, which
were offset by foreign currency translation adjustments included in
accumulated other comprehensive loss.
* Adjusted operating income of $297.8 million and $4.41 per diluted common
share, a decrease of 10.3% and a decrease per share of 27.8% compared to the
same period in 2015 due to the weighted average impact of common shares
issued related to Endurance's acquisition of Montpelier.
* Net income return on average common equity for the year of 7.2%, while
adjusted operating return on average common equity for the year was 6.5%.
Insurance Segment
Operating highlights for Endurance's Insurance segment for the quarter ended
December 31, 2016:
* Gross premiums written of $573.4 million, an increase of $141.1 million or
32.7% from the fourth 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 39.9% from a year ago driven by new business
generated from added underwriting teams, as well as the renewal of
business written in the Company's Lloyd's syndicate.
* The agriculture insurance line of business declined 16.5% primarily due
to reduced commodity prices and modest policy count reductions resulting
from re-underwriting of the crop/hail portfolio.
* Net premiums written of $243.0 million, an increase of $31.9 million or
15.1% from the fourth quarter of 2015.
* Non-agriculture lines of business increased 12.5% due to strong growth
in gross premiums written partially offset by increased cessions through
whole account quota shares as well as individual cessions by line of
business.
* The agriculture line of business increased 54.2% due to timing of
reinsurance purchases partially offset by reduced commodity prices.
* Combined ratio of 99.3% compared to 84.7% for the same period in 2015.
* The net loss ratio increased 14.3 percentage points to 70.2% compared to
55.9% for the same period in 2015. The accident year net loss ratio of
77.8% increased 13.9 percentage points predominantly driven by higher
levels of current quarter catastrophe activity primarily related to
Hurricane Matthew and the New Zealand earthquake, which together
impacted the loss ratio by 8.6 percentage points, and higher attritional
losses incurred within the property, marine/energy and aviation lines of
business. Partially offsetting this increase was a lower accident year
loss ratio within the agriculture line of business due to favorable crop
conditions. The current period's net loss ratio included favorable prior
year loss reserve development of $20.1 million or 7.6 percentage points.
* The general and administrative expense ratio decreased 7.9 percentage
points, reflecting increased ceding commission offsets from a larger
earned premium base in the current period and reduced incentive
compensation expenses reflecting lower profitability, partially offset
by increases in personnel expenses attributable to additional teams
hired in the year.
* The acquisition expense ratio increased 8.2 percentage points in the
current quarter as lines of business that incur higher acquisition costs
accounted for a higher percentage of earned premiums compared to a year
ago and the absence in the fourth quarter of 2016 of the earning of
premiums acquired from Montpelier that did not have related acquisition
costs in the fourth quarter of 2015.
Operating highlights for Endurance's Insurance segment for the year ended
December 31, 2016:
* Gross premiums written of $2,570.5 million, an increase of $484.6 million or
23.2% over the same period in 2015.
* Net premiums written of $1,056.3 million, an increase of 20.0% over the same
period in 2015.
* Combined ratio of 96.6% compared to 87.5% for the same period in 2015. The
combined ratio was impacted by higher net loss and acquisition expense
ratios, partially offset by a lower general and administrative expense
ratio. The current period's net loss ratio included $77.1 million or 7.6
percentage points of favorable prior year loss reserve development and $31.2
million or 3.1 percentage points of catastrophe losses, net of reinsurance,
from 2016 events.
Reinsurance Segment
Operating highlights for Endurance's Reinsurance segment for the quarter ended
December 31, 2016:
* Gross premiums written of $119.5 million, an increase of $36.1 million or
43.3% from the fourth quarter of 2015.
* The catastrophe line of business increased by $10.4 million due to
reinstatement premiums on current quarter events and successful renewals
of the combined Endurance and Montpelier portfolios, partially offset by
targeted non-renewals and line size reductions in response to the
current competitive market.
* The specialty line of business increased $2.8 million largely due to
lower negative premium adjustments and the expansion of new and renewal
business for the aviation and trade credit and surety groups of the
specialty line of business, partially offset by non-renewals in other
lines and the timing of renewals on 2015 contracts that renew in 2017.
* The property line of business increased $21.7 million, predominantly due
the absence of large negative premium adjustments that were recorded in
the fourth quarter of 2015.
* Net premiums written of $121.3 million, an increase of $42.7 million or
54.3% from the fourth quarter of 2015. The increase in net premiums written
was driven by an increase in gross premiums and positive ceded premium
adjustments within the specialty and professional lines of business.
* Combined ratio of 84.5% compared to 64.7% for the same period in 2015.
* The current period's net loss ratio of 54.9% increased 23.4 percentage
points compared to 2015. The increase in the current quarter accident
year net loss ratio of 19.0 percentage points was predominantly due to
catastrophe losses, including Hurricane Matthew and the New Zealand
earthquake, which impacted the loss ratio by 14.3 percentage points. The
current period's net loss ratio included favorable prior year loss
reserve development of $27.4 million or 8.1 percentage points.
* The 2.1 percentage point increase in the current quarter's acquisition
expense ratio was largely attributed to a shift in the mix of business
with more earned premiums recorded in the casualty and professional
lines, which maintain higher acquisition costs, and the absence in the
fourth quarter of 2016 of the earning of premiums acquired from
Montpelier that did not have related acquisition costs in the fourth
quarter of 2015.
* The general and administrative expense ratio decreased 5.7 percentage
points in the fourth quarter of 2016 primarily as a result of larger
earned premiums recorded in the current period, increased ceding
commission offsets and lower compensation expenses.
Operating highlights for Endurance's Reinsurance segment for the year ended
December 31, 2016:
* Gross premiums written of $1,631.7 million, an increase of $396.7 million or
32.1% over the same period in 2015.
* Net premiums written of $1,313.7 million, an increase of 22.8% over the same
period in 2015.
* Combined ratio of 77.9% compared to 69.6% for the same period in 2015. The
combined ratio was impacted by a higher net loss ratio partially offset by
the lower acquisition and general and administrative expense ratios. The
current period's net loss ratio included $144.4 million or 10.7 percentage
points of favorable prior year loss reserve development and 20.3 percentage
points of net catastrophe losses from 2016 events, which amounted to $143.7
million before reinstatement premiums of $21.5 million.
Investments
Endurance's net investment income for the quarter and year ended December 31,
2016 was $59.2 million and $176.6 million, an increase of $36.0 million and
$62.8 million, respectively, compared to the same periods in 2015. The total
investment return of Endurance's cash and investment portfolio was (0.57)% and
2.56% for the quarter and year ended December 31, 2016, respectively, compared
to (0.29)% and 0.31% for the quarter and year ended December 31, 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
year ended December 31, 2016 compared to the same periods in 2015 due to an
increase in invested assets. During the quarter and year ended December 31,
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 $12.6 million and $12.4 million, as compared to losses of $11.8 million and
$13.6 million during the same periods in 2015. The ending book yield on
Endurance's fixed maturity investments at December 31, 2016 was 2.38%, up from
2.12% at December 31, 2015.
At December 31, 2016, Endurance's fixed maturity and short term investments,
which comprises 86.1% of Endurance's investment portfolio, had an average credit
quality of AA and a duration of 3.04 years. Endurance's available for sale
investment portfolio was in a net unrealized gain position of $61.5 million at
December 31, 2016, an increase of $74.1 million from December 31, 2015.
Endurance recorded in net income, net realized and unrealized investment losses,
net of impairments, of $46.1 million and $23.2 million during the quarter and
year ended December 31, 2016, compared to losses of $22.8 million and gains of
$8.9 million during the quarter and year ended December 31, 2015.
Endurance ended the fourth quarter of 2016 with cash and invested assets of $8.8
billion, which represents a 0.9% decrease from December 31, 2015. Net operating
cash inflow was $415.5 million for the year ended December 31, 2016 versus an
inflow of $245.5 million for the same period in 2015.
Capitalization and Shareholders' Equity
At December 31, 2016, Endurance's shareholders' equity was $5.14 billion or
$68.66 per diluted common share versus $5.12 billion or $65.48 per diluted
common share at December 31, 2015. For the quarter and year ended December 31,
2016, Endurance declared and paid common dividends of $0.38 and $1.52 per share,
respectively.
Adjusted operating income, adjusted operating return on average common equity,
adjusted operating income per diluted common share, adjusted 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 and our Quarterly Reports on Form 10-Q for the quarters ended June
30, 2016 and September 30, 2016.
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 reports on Form 10-K and Form 10-Q 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)
December 31, December 31,
2016 2015
---------------- ---------------
Assets
Cash and cash equivalents $ 1,149,541 $ 1,177,750
Fixed maturity investments, trading, at fair
value 2,740,055 1,587,160
Fixed maturity investments, available for sale,
at fair value 3,572,766 4,359,019
Short-term investments, trading, at fair value 330,199 394,111
Short-term investments, available for sale, at
fair value 78,505 25,685
Equity securities, trading, at fair value 16,056 15,229
Equity securities, available for sale, at fair
value 485,085 513,585
Other investments 588,308 872,617
Premiums receivable, net 1,657,752 1,376,328
Insurance and reinsurance balances receivable 110,183 102,403
Deferred acquisition costs 276,639 255,501
Prepaid reinsurance premiums 711,695 498,574
Reinsurance recoverable on unpaid losses 1,213,129 907,944
Reinsurance recoverable on paid losses 273,789 288,026
Accrued investment income 35,853 30,213
Goodwill and intangible assets 468,374 553,960
Deferred tax asset 71,802 64,164
Net receivable on sales of investments 54,620 31,873
Other assets 288,510 187,383
---------------- ---------------
Total Assets $ 14,122,861 $ 13,241,525
---------------- ---------------
Liabilities
Reserve for losses and loss expenses $ 4,905,138 $ 4,510,415
Reserve for unearned premiums 1,994,676 1,789,148
Deposit liabilities 14,013 13,674
Reinsurance balances payable 784,162 661,213
Debt 705,292 717,650
Net payable on purchases of investments 181,337 63,442
Deferred tax liability 13,074 17,315
Other liabilities 383,036 344,596
---------------- ---------------
Total Liabilities 8,980,728 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
67,627,901 issued and outstanding (2015 -
66,797,991) 67,628 66,798
Additional paid-in capital 1,961,917 2,145,836
Accumulated other comprehensive loss (58,749 ) (46,634 )
Retained earnings 2,911,634 2,681,053
---------------- ---------------
Total Shareholders' Equity Available to the
Company 4,882,439 4,856,262
Non-controlling interests 259,694 267,810
---------------- ---------------
Total Shareholders' Equity 5,142,133 5,124,072
---------------- ---------------
Total Liabilities and Shareholders' Equity $ 14,122,861 $ 13,241,525
---------------- ---------------
Book Value per Common Share
Dilutive common shares outstanding 67,759,784 67,136,986
Diluted book value per common share [a] $ 68.66 $ 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 million (2015 - $460.0 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 Twelve Months Ended
--------------------------- ------------------------------
December December
31, 31, December 31, December 31,
2016 2015 2016 2015
------------- ------------- --------------- --------------
Revenues
Gross premiums written $ 692,876 $ 515,648 $ 4,202,170 $ 3,320,861
------------- ------------- --------------- --------------
Net premiums written $ 364,339 $ 289,743 $ 2,369,935 $ 1,950,470
Change in unearned
premiums 236,366 283,713 (6,275 ) 27,983
------------- ------------- --------------- --------------
Net premiums earned 600,705 573,456 2,363,660 1,978,453
Other underwriting
income (loss) 1,071 (7,716 ) (909 ) (3,694 )
Net investment income 59,196 23,180 176,590 113,826
Net realized and
unrealized (losses)
gains (45,958 ) (20,238 ) (12,419 ) 12,660
Net impairment losses
recognized in earnings (122 ) (2,604 ) (10,769 ) (3,715 )
------------- ------------- --------------- --------------
Total revenues 614,892 566,078 2,516,153 2,097,530
------------- ------------- --------------- --------------
Expenses
Net losses and loss
expenses 370,150 242,057 1,321,052 917,108
Acquisition expenses 123,289 90,364 460,483 347,885
General and
administrative
expenses 53,104 89,143 248,146 259,791
Corporate expenses 16,153 15,219 51,706 114,429
Amortization of
intangibles 21,153 16,124 84,624 30,620
Net foreign exchange
(gains) losses (11,628 ) (2,190 ) (74,684 ) 26,964
Interest expense 10,807 10,815 43,860 41,260
------------- ------------- --------------- --------------
Total expenses 583,028 461,532 2,135,187 1,738,057
------------- ------------- --------------- --------------
Income before income
taxes 31,864 104,546 380,966 359,473
Income tax (expense)
benefit (2,389 ) 3,350 181 (4,362 )
------------- ------------- --------------- --------------
Net income 29,475 107,896 381,147 355,111
Net income
attributable to non-
controlling interests (5,674 ) (8,309 ) (24,130 ) (11,016 )
------------- ------------- --------------- --------------
Net income available
to the Company 23,801 99,587 357,017 344,095
Preferred dividends (3,652 ) (8,186 ) (23,799 ) (32,750 )
------------- ------------- --------------- --------------
Net income available
to common and
participating common
shareholders $ 20,149 $ 91,401 $ 333,218 $ 311,345
------------- ------------- --------------- --------------
Per share data
Basic earnings per
common share $ 0.30 $ 1.36 $ 4.94 $ 5.74
------------- ------------- --------------- --------------
Diluted earnings per
common share $ 0.30 $ 1.36 $ 4.93 $ 5.73
------------- ------------- --------------- --------------
ENDURANCE SPECIALTY HOLDINGS LTD.
RESULTS BY SEGMENT
(in thousands of United States dollars, except ratios)
Three Months Ended December 31, 2016
-----------------------------------------
Reported
Insurance Reinsurance Totals
------------- ------------- -------------
Revenues
Gross premiums written $ 573,394 $ 119,482 $ 692,876
Ceded premiums written (330,390 ) 1,853 (328,537 )
------------- ------------- -------------
Net premiums written 243,004 121,335 364,339
------------- ------------- -------------
Net premiums earned 263,419 337,286 600,705
Other underwriting income - 1,071 1,071
------------- ------------- -------------
Total underwriting revenues 263,419 338,357 601,776
------------- ------------- -------------
Expenses
Net losses and loss expenses 185,074 185,076 370,150
Acquisition expenses 44,764 78,525 123,289
General and administrative
expenses 31,830 21,274 53,104
------------- ------------- -------------
261,668 284,875 546,543
------------- ------------- -------------
Underwriting income $ 1,751 $ 53,482 $ 55,233
------------- ------------- -------------
Net investment income 59,196
Corporate expenses (16,153 )
Interest expense (10,807 )
Amortization of intangibles (21,153 )
Net foreign exchange gains 11,628
Net realized and unrealized
losses (45,958 )
Net impairment losses recognized
in earnings (122 )
-------------
Income before income taxes $ 31,864
-------------
Net loss ratio 70.2 % 54.9 % 61.7 %
Acquisition expense ratio 17.0 % 23.3 % 20.5 %
General and administrative
expense ratio 12.1 % 6.3 % 11.5 % [a]
------------- ------------- -------------
Combined ratio 99.3 % 84.5 % 93.7 %
------------- ------------- -------------
[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)
Three Months Ended December 31, 2015
-----------------------------------------
Reported
Insurance Reinsurance Totals
------------- ------------- -------------
Revenues
Gross premiums written $ 432,254 $ 83,394 $ 515,648
Ceded premiums written (221,156 ) (4,749 ) (225,905 )
------------- ------------- -------------
Net premiums written 211,098 78,645 289,743
------------- ------------- -------------
Net premiums earned 253,085 320,371 573,456
Other underwriting loss - (7,716 ) (7,716 )
------------- ------------- -------------
Total underwriting revenues 253,085 312,655 565,740
------------- ------------- -------------
Expenses
Net losses and loss expenses 141,269 100,788 242,057
Acquisition expenses 22,292 68,072 90,364
General and administrative
expenses 50,723 38,420 89,143
------------- ------------- -------------
214,284 207,280 421,564
------------- ------------- -------------
Underwriting income $ 38,801 $ 105,375 $ 144,176
------------- ------------- -------------
Net investment income 23,180
Corporate expenses (15,219 )
Interest expense (10,815 )
Amortization of intangibles (16,124 )
Net foreign exchange gains 2,190
Net realized and unrealized
losses (20,238 )
Net impairment losses recognized
in earnings (2,604 )
-------------
Income before income taxes $ 104,546
-------------
Net loss ratio 55.9 % 31.5 % 42.2 %
Acquisition expense ratio 8.8 % 21.2 % 15.8 %
General and administrative
expense ratio 20.0 % 12.0 % 18.2 % [a]
------------- ------------- -------------
Combined ratio 84.7 % 64.7 % 76.2 %
------------- ------------- -------------
[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)
Twelve Months Ended December 31, 2016
-----------------------------------------------
Reported
Insurance Reinsurance Totals
--------------- --------------- ---------------
Revenues
Gross premiums written $ 2,570,494 $ 1,631,676 $ 4,202,170
Ceded premiums written (1,514,240 ) (317,995 ) (1,832,235 )
--------------- --------------- ---------------
Net premiums written 1,056,254 1,313,681 2,369,935
--------------- --------------- ---------------
Net premiums earned 1,009,375 1,354,285 2,363,660
Other underwriting loss - (909 ) (909 )
--------------- --------------- ---------------
Total underwriting
revenues 1,009,375 1,353,376 2,362,751
--------------- --------------- ---------------
Expenses
Net losses and loss
expenses 684,178 636,874 1,321,052
Acquisition expenses 149,763 310,720 460,483
General and administrative
expenses 140,742 107,404 248,146
--------------- --------------- ---------------
974,683 1,054,998 2,029,681
--------------- --------------- ---------------
Underwriting income $ 34,692 $ 298,378 $ 333,070
--------------- --------------- ---------------
Net investment income 176,590
Corporate expenses (51,706 )
Interest expense (43,860 )
Amortization of
intangibles (84,624 )
Net foreign exchange gains 74,684
Net realized and
unrealized losses (12,419 )
Net impairment losses
recognized in earnings (10,769 )
---------------
Income before income taxes $ 380,966
---------------
Net loss ratio 67.9 % 47.1 % 55.9 %
Acquisition expense ratio 14.8 % 22.9 % 19.5 %
General and administrative
expense ratio 13.9 % 7.9 % 12.7 % [a]
--------------- --------------- ---------------
Combined ratio 96.6 % 77.9 % 88.1 %
--------------- --------------- ---------------
[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)
Twelve Months Ended December 31, 2015
-----------------------------------------------
Reported
Insurance Reinsurance Totals
--------------- --------------- ---------------
Revenues
Gross premiums written $ 2,085,901 $ 1,234,960 $ 3,320,861
Ceded premiums written (1,205,528 ) (164,863 ) (1,370,391 )
--------------- --------------- ---------------
Net premiums written 880,373 1,070,097 1,950,470
--------------- --------------- ---------------
Net premiums earned 824,552 1,153,901 1,978,453
Other underwriting loss - (3,694 ) (3,694 )
--------------- --------------- ---------------
Total underwriting
revenues 824,552 1,150,207 1,974,759
--------------- --------------- ---------------
Expenses
Net losses and loss
expenses 500,867 416,241 917,108
Acquisition expenses 80,252 267,633 347,885
General and administrative
expenses 140,012 119,779 259,791
--------------- --------------- ---------------
721,131 803,653 1,524,784
--------------- --------------- ---------------
Underwriting income $ 103,421 $ 346,554 $ 449,975
--------------- --------------- ---------------
Net investment income 113,826
Corporate expenses (114,429 )
Interest expense (41,260 )
Amortization of
intangibles (30,620 )
Net foreign exchange
losses (26,964 )
Net realized and
unrealized gains 12,660
Net impairment losses
recognized in earnings (3,715 )
---------------
Income before income taxes $ 359,473
---------------
Net loss ratio 60.8 % 36.0 % 46.4 %
Acquisition expense ratio 9.7 % 23.2 % 17.6 %
General and administrative
expense ratio 17.0 % 10.4 % 18.9 % [a]
--------------- --------------- ---------------
Combined ratio 87.5 % 69.6 % 82.9 %
--------------- --------------- ---------------
[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 December 31,
---------------------------------------------------------
Insurance Reinsurance Total
------------------ ----------------- --------------------
2016 2015 2016 2015 2016 2015
Net loss ratio 70.2 % 55.9 % 54.9 % 31.5 % 61.7 % 42.2 %
Acquisition
expense ratio 17.0 % 8.8 % 23.3 % 21.2 % 20.5 % 15.8 %
General and
administrative
expense ratio 12.1 % 20.0 % 6.3 % 12.0 % 11.5 % [a] 18.2 % [a]
--------- -------- -------- -------- --------- --------
Combined ratio
[b] 99.3 % 84.7 % 84.5 % 64.7 % 93.7 % 76.2 %
--------- -------- -------- -------- --------- --------
Effect of Prior Year Net Loss Reserve
Development
Favorable /
(Unfavorable)
---------------------------------------------------------
Three Months Ended December 31,
---------------------------------------------------------
Insurance Reinsurance Total
------------------ ----------------- --------------------
2016 2015 2016 2015 2016 2015
Net loss ratio 7.6 % 8.0 % 8.1 % 12.5 % 7.9 % 10.5 %
--------- -------- -------- -------- --------- --------
Net of Prior Year Net Loss Reserve
Development
---------------------------------------------------------
Three Months Ended December 31,
---------------------------------------------------------
Insurance Reinsurance Total
------------------ ----------------- --------------------
2016 2015 2016 2015 2016 2015
Net loss ratio 77.8 % 63.9 % 63.0 % 44.0 % 69.6 % 52.7 %
Acquisition
expense ratio 17.0 % 8.8 % 23.3 % 21.2 % 20.5 % 15.8 %
General and
administrative
expense ratio 12.1 % 20.0 % 6.3 % 12.0 % 11.5 % [a] 18.2 % [a]
--------- -------- -------- -------- --------- --------
Combined ratio
[b] 106.9 % 92.7 % 92.6 % 77.2 % 101.6 % 86.7 %
--------- -------- -------- -------- --------- --------
[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
--------------------------------------------------------
Twelve Months Ended December 31,
--------------------------------------------------------
Insurance Reinsurance Total
------------------ ----------------- -------------------
2016 2015 2016 2015 2016 2015
Net loss ratio 67.9 % 60.8 % 47.1 % 36.0 % 55.9 % 46.4 %
Acquisition
expense ratio 14.8 % 9.7 % 22.9 % 23.2 % 19.5 % 17.6 %
General and
administrative
expense ratio 13.9 % 17.0 % 7.9 % 10.4 % 12.7 % [a] 18.9 % [a]
--------- -------- -------- -------- -------- --------
Combined ratio
[b] 96.6 % 87.5 % 77.9 % 69.6 % 88.1 % 82.9 %
--------- -------- -------- -------- -------- --------
Effect of Prior Year Net Loss Reserve
Development
Favorable /
(Unfavorable)
--------------------------------------------------------
Twelve Months Ended December 31,
--------------------------------------------------------
Insurance Reinsurance Total
------------------ ----------------- -------------------
2016 2015 2016 2015 2016 2015
Net loss ratio 7.6 % 9.9 % 10.7 % 14.0 % 9.4 % 12.3 %
--------- -------- -------- -------- -------- --------
Net of Prior Year Net Loss Reserve
Development
--------------------------------------------------------
Twelve Months Ended December 31,
--------------------------------------------------------
Insurance Reinsurance Total
------------------ ----------------- -------------------
2016 2015 2016 2015 2016 2015
Net loss ratio 75.5 % 70.7 % 57.8 % 50.0 % 65.3 % 58.7 %
Acquisition
expense ratio 14.8 % 9.7 % 22.9 % 23.2 % 19.5 % 17.6 %
General and
administrative
expense ratio 13.9 % 17.0 % 7.9 % 10.4 % 12.7 % [a] 18.9 % [a]
--------- -------- -------- -------- -------- --------
Combined ratio
[b] 104.2 % 97.4 % 88.6 % 83.6 % 97.5 % 95.2 %
--------- -------- -------- -------- -------- --------
[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 December 31, 2016 and 2015:
Three Months Ended Three Months Ended
December 31, 2016 December 31, 2015
------------------------------- ------------------------------
Gross Net Premiums Gross Net Premiums
Premiums Written Premiums Written
Written Written
--------------- --------------- --------------- --------------
Insurance
Agriculture $ 46,256 $ 20,225 $ 55,372 $ 13,119
Casualty and
other specialty 172,578 71,583 138,956 73,704
Professional
lines 164,026 66,730 112,917 51,765
Property,
marine/energy
and aviation 190,534 84,466 125,009 72,510
--------------- --------------- --------------- --------------
Subtotal
Insurance $ 573,394 $ 243,004 $ 432,254 $ 211,098
--------------- --------------- --------------- --------------
Reinsurance
Catastrophe $ 17,435 $ 17,168 7,014 4,083
Property 21,360 21,455 (291 ) (455 )
Casualty 28,671 27,742 27,474 27,455
Professional
lines 38,861 39,014 38,807 38,807
Specialty 13,155 15,956 10,390 8,755
--------------- --------------- --------------- --------------
Subtotal
Reinsurance $ 119,482 $ 121,335 $ 83,394 $ 78,645
--------------- --------------- --------------- --------------
Total $ 692,876 $ 364,339 $ 515,648 $ 289,743
--------------- --------------- --------------- --------------
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
year ended December 31, 2016 and 2015:
Twelve Months Ended Twelve Months Ended
December 31, 2016 December 31, 2015
--------------------------------- ------------------------------
Gross Premiums Net Premiums Gross Net Premiums
Written Written Premiums Written
Written
---------------- ---------------- --------------- --------------
Insurance
Agriculture $ 760,877 $ 274,952 $ 840,445 $ 267,890
Casualty and
other
specialty 657,558 281,256 514,203 248,554
Professional
lines 461,552 191,596 344,482 156,918
Property,
marine/energy
and aviation 690,507 308,450 386,771 207,011
---------------- ---------------- --------------- --------------
Subtotal
Insurance $ 2,570,494 $ 1,056,254 $ 2,085,901 $ 880,373
---------------- ---------------- --------------- --------------
Reinsurance
Catastrophe $ 506,300 $ 336,413 $ 311,914 $ 194,662
Property 250,447 243,697 209,392 205,999
Casualty 245,092 243,154 176,506 176,487
Professional
lines 256,337 254,148 248,610 248,610
Specialty 373,500 236,269 288,538 244,339
---------------- ---------------- --------------- --------------
Subtotal
Reinsurance $ 1,631,676 $ 1,313,681 $ 1,234,960 $ 1,070,097
---------------- ---------------- --------------- --------------
Total $ 4,202,170 $ 2,369,935 $ 3,320,861 $ 1,950,470
---------------- ---------------- --------------- --------------
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,
which may be defined differently by other companies, better explain the
Company's results of operations in a manner that allows for a more complete
understanding of the underlying trends in the Company's business. However, these
measures should not be viewed as a substitute for those determined in accordance
with GAAP.
Adjusted operating income is an internal performance measure used by the Company
in the management of its operations. Adjusted operating income represents
operational results excluding, as applicable, net realized and unrealized
(losses) gains, net impairment losses recognized in earnings and net foreign
exchange (gains) losses because the amount of these gains or losses is heavily
influenced by, and fluctuates in part, according to the availability of market
opportunities. The Company 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 determined in
accordance with GAAP, the Company believes that showing adjusted operating
income enables investors, analysts, rating agencies and other users of its
financial information to more easily analyze the Company's results of operations
in a manner similar to to that used by management to analyze the Company's
underlying business performance. Adjusted operating income should not be viewed
as a substitute for GAAP net income.
Adjusted operating income per diluted common share are internal performance
measures used by Endurance in the management of its operations. Adjusted
operating income allocated to common shareholders (which excludes unvested
restricted shares outstanding which are considered participating) per diluted
common share represents adjusted operating income divided by weighted average
dilutive common shares, which has been calculated in accordance with the two-
class method under U.S. GAAP. Endurance believes that showing adjusted
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. Adjusted operating
income per dilutive common share should not be viewed as substitutes for GAAP
net income per dilutive common share.
Return on Average Equity (ROAE) is comprised using the average common equity
calculated as the
Unternehmensinformation / Kurzprofil:
Datum: 24.02.2017 - 23:03 Uhr
Sprache: Deutsch
News-ID 526488
Anzahl Zeichen: 65606
contact information:
Town:
Pembroke
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 316 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Endurance Reports Fourth Quarter 2016 Financial Results"
steht unter der journalistisch-redaktionellen Verantwortung von
Endurance Specialty Holdings Ltd (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
