Endurance almost triples profits; insurance drives growth
Bermuda-based Endurance Specialty Holding has almost tripled its profits in the third quarter of 2016, just a month after agreeing to the proposed deal to be acquired by Sompo.
Endurance's net income for the third quarter of 2016 was $130.1 million, compared with $43.6 million in the third quarter in 2015.
Much of this increase was driven by gains in its investment returns. Its net investment income for the quarter was $62.2 million, an increase of $45.7 million compared with the same period in 2015. It said its investment income benefited from increases in investment income generated from Endurance's trading and available for sale investments due to an increase in invested assets.
The company’s gross premiums written in the quarter reached $760.7 million, an increase of 18.4 percent compared with the same period in 2015 – the increase driven by its insurance book of business.
The gross premiums written (GPW) for Endurance's insurance segment were $568.3 million, an increase of 26.7 percent year-over-year.
The insurance segment's combined ratio was 104.6 percent, however, compared to 83.6 percent for the prior-year quarter.
Part of this increase was from the current accident year net loss ratio of 77.9 percent, which increased 8.7 percentage points due to increased attritional and large losses, primarily within the property, marine/energy and aviation lines of business.
The GPW for its reinsurance segment was $192.4 million, a decrease of 0.8 percent year on year.
The catastrophe line of business within reinsurance increased $10.4 million, largely due to the targeted renewal of acquired Montpelier business.
In August 2015, Endurance completed its $1.8 billion acquisition of Montpelier Re, a property/casualty reinsurer.
Its property line decreased 11.4 percent predominantly due to targeted non-renewals and reductions of signed lines, partially offset by new business and select renewal of business acquired from Montpelier.
Its reinsurance segment's combined ratio was 69.7 percent, compared to 68 percent for the prior-year quarter.
