Endurance Specialty Holdings Ltd. (ENH, Financial) filed Quarterly Report for the period ended 2009-09-30.
Endurance Specialty Holdings Ltd. through its wholly owned operating subsidiaries is a global provider of property and casualty insurance and reinsurance. Through these subsidiaries Endurance currently writes property per risk treaty reinsurance property catastrophe reinsurance casualty treaty reinsurance property individual risks casualty individual risks and other specialty lines. Endurance's operating subsidiaries have been assigned a group rating of A- (Excellent) from A.M. Best and headquarters are in Bermuda. Endurance Specialty Holdings Ltd. has a market cap of $2.03 billion; its shares were traded at around $35.59 with a P/E ratio of 4.9 and P/S ratio of 1.1. The dividend yield of Endurance Specialty Holdings Ltd. stocks is 2.8%.
Net premiums earned for the three months ended September 30, 2009 were $426.8 million, a decrease of $82.8 million, or 16.3% from the third quarter of 2008 principally driven by the decline in net premiums written.
Endurances net investment income of $71.6 million represents an increase of 161.1% or $44.1 million for the quarter ended September 30, 2009 as compared to the same period in 2008. Net investment income during the third quarter of 2009 included net gains of $30.4 million on its alternative investments and high yield loan funds, included in other investments, as compared to a loss of $32.8 million in the third quarter of 2008. Investment income generated from the Companys fixed income securities, which consist of fixed maturity investments, short term investments and preferred equity securities, decreased by $19.1 million in comparison to the same period in 2008 due to lower reinvestment rates during the current period and a higher allocation of the Companys investment portfolio to cash and cash equivalents and shorter duration securities. Investment expenses for the third quarter of 2009, including investment management fees, were $2.7 million, which was generally consistent with the same period in 2008.
As of September 30, 2009, the Company continued to maintain an investment portfolio with an average credit rating of AAA. At September 30, 2009, the Companys fixed income investments consisted of both mortgaged-backed and asset-backed securities, which comprised 35.0% of total invested assets, including pending securities transactions, fixed maturity investments, short term investments, preferred equity, cash and cash equivalents and other investments. The Company, along with its investment managers, monitors the nature and type of assets underlying these types of securities. At September 30, 2009, the Companys portfolio held no sub-prime mortgage exposure, and the Companys Alt-A exposure represented 1.42% of the Companys fixed income investments. Of the Companys Alt-A exposure, 83.2% are fixed rate securities. In the third quarter of 2009, the Companys investment portfolio experienced rating downgrades on securities with fair values of $260.1 million and amortized costs of $287.4 million as of September 30, 2009, primarily within its non-agency residential mortgage-backed securities holdings.
The Companys investment portfolio is managed to preserve capital and liquidity while generating income and growth in book value. The portfolio is adjusted and rebalanced to meet the Companys objectives, resulting in the realization of net gains or losses which are dependent on movements in financial markets and interest rates and the timing of investment sales. Proceeds from sales of investments classified as available for sale during the three months ended September 30, 2009 were $337.9 million compared to $1,145.0 million during the three months ended September 30, 2008. Net realized investment gains (losses) on investment sales for the three months ended September 30, 2009 and 2008 were as follows:
During the third quarter of 2009, the Company remeasured its monetary assets and liabilities denominated in foreign currencies, which resulted in net foreign exchange gains of $3.0 million compared to foreign exchange losses of $15.5 million for the same period of 2008. The net foreign exchange gains resulted from the weakening of the U.S. dollar compared to other currencies during the third quarter of 2009. The Company also had net unrealized foreign exchange gains of $5.9 million (2008 $7.9 million) from the revaluation of its foreign currency invested assets included in the change in net unrealized holding gains (losses) on investments within accumulated other comprehensive income (loss).
Read the The complete ReportENH is in the portfolios of Richard Perry of Perry Capital, Richard Snow of Snow Capital Management, L.P., Richard Snow of Snow Capital Management, L.P., David Dreman of Dreman Value Management, David Einhorn of Greenlight Capital Inc.
Endurance Specialty Holdings Ltd. through its wholly owned operating subsidiaries is a global provider of property and casualty insurance and reinsurance. Through these subsidiaries Endurance currently writes property per risk treaty reinsurance property catastrophe reinsurance casualty treaty reinsurance property individual risks casualty individual risks and other specialty lines. Endurance's operating subsidiaries have been assigned a group rating of A- (Excellent) from A.M. Best and headquarters are in Bermuda. Endurance Specialty Holdings Ltd. has a market cap of $2.03 billion; its shares were traded at around $35.59 with a P/E ratio of 4.9 and P/S ratio of 1.1. The dividend yield of Endurance Specialty Holdings Ltd. stocks is 2.8%.
Highlight of Business Operations:
Gross premiums written in the three months ended September 30, 2009 were $469.6 million, a decrease of $154.5 million, or 24.8%, compared to the same period in 2008. Net premiums written in the three months ended September 30, 2009 were $396.7 million, a decrease of $97.3 million, or 19.7% compared to the same period in 2008. The change in net premiums written was driven by the following factors:Net premiums earned for the three months ended September 30, 2009 were $426.8 million, a decrease of $82.8 million, or 16.3% from the third quarter of 2008 principally driven by the decline in net premiums written.
Endurances net investment income of $71.6 million represents an increase of 161.1% or $44.1 million for the quarter ended September 30, 2009 as compared to the same period in 2008. Net investment income during the third quarter of 2009 included net gains of $30.4 million on its alternative investments and high yield loan funds, included in other investments, as compared to a loss of $32.8 million in the third quarter of 2008. Investment income generated from the Companys fixed income securities, which consist of fixed maturity investments, short term investments and preferred equity securities, decreased by $19.1 million in comparison to the same period in 2008 due to lower reinvestment rates during the current period and a higher allocation of the Companys investment portfolio to cash and cash equivalents and shorter duration securities. Investment expenses for the third quarter of 2009, including investment management fees, were $2.7 million, which was generally consistent with the same period in 2008.
As of September 30, 2009, the Company continued to maintain an investment portfolio with an average credit rating of AAA. At September 30, 2009, the Companys fixed income investments consisted of both mortgaged-backed and asset-backed securities, which comprised 35.0% of total invested assets, including pending securities transactions, fixed maturity investments, short term investments, preferred equity, cash and cash equivalents and other investments. The Company, along with its investment managers, monitors the nature and type of assets underlying these types of securities. At September 30, 2009, the Companys portfolio held no sub-prime mortgage exposure, and the Companys Alt-A exposure represented 1.42% of the Companys fixed income investments. Of the Companys Alt-A exposure, 83.2% are fixed rate securities. In the third quarter of 2009, the Companys investment portfolio experienced rating downgrades on securities with fair values of $260.1 million and amortized costs of $287.4 million as of September 30, 2009, primarily within its non-agency residential mortgage-backed securities holdings.
The Companys investment portfolio is managed to preserve capital and liquidity while generating income and growth in book value. The portfolio is adjusted and rebalanced to meet the Companys objectives, resulting in the realization of net gains or losses which are dependent on movements in financial markets and interest rates and the timing of investment sales. Proceeds from sales of investments classified as available for sale during the three months ended September 30, 2009 were $337.9 million compared to $1,145.0 million during the three months ended September 30, 2008. Net realized investment gains (losses) on investment sales for the three months ended September 30, 2009 and 2008 were as follows:
During the third quarter of 2009, the Company remeasured its monetary assets and liabilities denominated in foreign currencies, which resulted in net foreign exchange gains of $3.0 million compared to foreign exchange losses of $15.5 million for the same period of 2008. The net foreign exchange gains resulted from the weakening of the U.S. dollar compared to other currencies during the third quarter of 2009. The Company also had net unrealized foreign exchange gains of $5.9 million (2008 $7.9 million) from the revaluation of its foreign currency invested assets included in the change in net unrealized holding gains (losses) on investments within accumulated other comprehensive income (loss).
Read the The complete ReportENH is in the portfolios of Richard Perry of Perry Capital, Richard Snow of Snow Capital Management, L.P., Richard Snow of Snow Capital Management, L.P., David Dreman of Dreman Value Management, David Einhorn of Greenlight Capital Inc.
