PEMBROKE, Bermuda, May 2, 2013 - (ACN Newswire) - Endurance Specialty Holdings Ltd. (NYSE:ENH) today reported net income available to common shareholders of $92.1 million and $2.13 per diluted common share for the first quarter of 2013 versus net income of $74.4 million and $1.72 per diluted common share for the first quarter of 2012.
Operating highlights for the quarter ended March 31, 2013 were as follows:
-- Net premiums written of $908.9 million, an increase of 7.8% over the same period in 2012;
-- Combined ratio of 85.0%, which included 12.1 percentage points of favorable prior year loss reserve development;
-- Net investment income of $49.3 million, a decrease of $7.8 million from the same period in 2012;
-- Operating income, which excludes after-tax realized investment gains and losses and foreign exchange gains and losses, of $89.8 million and $2.08 per diluted common share;
-- An operating return on average common equity for the quarter of 3.9% or 15.6% on an annualized basis; and
-- Fully diluted book value per share of $54.10 as of March 31, 2013, an increase of 2.3% from year end 2012 and up 2.9% when adjusting for dividends paid during the first quarter.
David Cash, Chief Executive Officer, commented, "We had an excellent start to the year with strong financial performance and solid progress in the ongoing development of our businesses. Net premiums written increased as a result of a successful January 1st renewal season in our reinsurance segment as we saw the benefit from our international expansion and the addition of specialty underwriting teams hired in 2012. Strategically, momentum is accelerating as we have attracted several new leaders and teams to our global insurance and reinsurance operations."
Insurance Segment
Operating highlights for Endurance's Insurance segment for the quarter ended March 31, 2013 were as follows:
-- Net premiums written of $404.7 million, a decrease of 5.4% from the first quarter of 2012;
-- Combined ratio of 99.0%, an improvement of 2.7 percentage points from the first quarter of 2012; and
-- Favorable prior year loss reserve development of 11.4 percentage points during the current period, compared to 4.9 percentage points of favorable prior year loss reserve development in the first quarter of 2012.
Net premiums written in the Insurance segment decreased $23.1 million for the first quarter of 2013 compared to the same period in the prior year primarily due to declines in agriculture and professional lines premiums. Within the agriculture line of business, net premiums written declined 3.9% compared to a year ago as a result of the cession of more premiums to the U.S. Government and third parties. Estimated policy count growth in excess of 9% in agriculture over the first quarter of 2012 was more than offset by reduced premium retentions in this line of business. The current quarter also reflects the decline in net premiums written in our professional line of business as a result of exiting a program relationship in late 2012.
The improvement in the Insurance segment combined ratio for the quarter ended March 31, 2013 compared to the same period in 2012 was predominantly driven by a lower net loss ratio, partially offset by a higher general and administrative expense ratio. The net loss ratio in the first quarter of 2013 benefited from $17.3 million, or 11.4 percentage points, of favorable prior year loss reserve development, compared to $7.8 million, or 4.9 percentage points, for the same period a year ago. Partially offsetting this improvement in the net loss ratio was an increase in the current year net loss ratio in the professional and agriculture lines of business. The general and administrative expense ratio was higher in the current quarter due to a smaller earned premium base and strategic investments being made to our U.S. specialty insurance operations.
Reinsurance Segment
Operating highlights for Endurance's Reinsurance segment for the quarter ended March 31, 2013 were as follows:
-- Net premiums written of $504.2 million, an increase of 21.4% from the first quarter of 2012;
-- Combined ratio of 77.1%, an improvement of 16.1 percentage points from the first quarter of 2012; and
-- Favorable prior year loss reserve development of 12.4 percentage points compared to 3.6 percentage points of favorable prior year loss reserve development in the first quarter of 2012.
The $88.9 million increase in net premiums written within the Reinsurance segment during the first quarter of 2013 over the first quarter of 2012 resulted primarily from increases within the property, casualty and other specialty lines of business. The current quarter increase was generated by the property line of business, driven by the combination of rate increases as well as growth in new business in our London, Zurich and United States offices. Within our casualty line of business, net written premiums increased $29.8 million from a year ago as a result of new business written in our Zurich and U.S. offices and a change in renewal date on one large treaty, partially offset by a decline in Bermuda based clash business as some contracts were non-renewed due to returns no longer meeting targeted profitability levels. Our other specialty line of reinsurance business expanded its net written premiums $19.8 million from a year ago, primarily due to new business generated by the trade credit and surety team that joined Endurance in late 2012.
The Reinsurance segment combined ratio in the first quarter of 2013 improved compared to the same period in 2012 predominantly due to a lower net loss ratio. The net loss ratio for the first quarter of 2013 included less than one point of catastrophe losses compared to 9.7 percentage points of catastrophe losses recorded in the first quarter of 2012 related to tornadoes in Kentucky. The net loss ratio in the first quarter of 2013 also benefited from 12.4 percentage points of favorable prior year loss reserve development across all lines of business, compared to 3.6 percentage points for the same period a year ago. Also modestly contributing to the improved combined ratio in the current quarter compared to a year ago were lower general and administrative expenses on a larger earned premium base.
Investments
Endurance's net investment income for the quarter ended March 31, 2013 was $49.3 million, a decrease of $7.8 million compared to the same period in 2012. The total return of Endurance's investment portfolio was 0.6% for the quarter ended March 31, 2013, compared to 1.38% for the quarter ended March 31, 2012. Investment income generated from Endurance's fixed maturity investments declined by $7.5 million for the three months ended March 31, 2013 compared to the same period in 2012 due to lower reinvestment rates during 2013 and the short duration of Endurance's fixed maturity portfolio. During the first quarter of 2013, Endurance's net investment income included gains of $23.1 million on its alternative investment funds and high yield loan funds, which are included in other investments, as compared to gains of $23.1 million in the first quarter of 2012. The ending book yield on Endurance's fixed maturity investments at March 31, 2013 was 2.36%, down from 2.68% at March 31, 2012.
At March 31, 2013, Endurance's fixed maturity portfolio, which comprises 88.2% of Endurance's investments, had an average credit quality of AA and a duration of 2.78 years. Endurance's fixed maturity portfolio was in a net unrealized gain position of $136.9 million at March 31, 2013, a decrease of $4.8 million from December 31, 2012. Endurance recorded net realized gains on investment sales, net of impairment losses recognized in earnings, of $5.4 million during the first quarter of 2013 compared to net realized investment gains of $5.0 million during the same period in 2012.
Endurance ended the first quarter of 2013 with cash and invested assets of $6.5 billion, which represents a 0.5% decrease from December 31, 2012. Net operating cash flow was $23.5 million for the quarter ended March 31, 2013 versus $24.9 million for the same period in 2012.
Capitalization and Shareholders' Equity
At March, 31, 2013, Endurance's shareholders' equity was $2.77 billion or $54.10 per diluted common share versus $2.71 billion or $52.88 per diluted common share at December 31, 2012. For the quarter ended March 31, 2013, Endurance declared and paid common dividends of $0.32 per share. During the first quarter of 2013, the Company repurchased 223,152 common shares at an average cost of $44.83 for a total amount of repurchases of $10.0 million.
Earnings Call
Endurance will host a conference call on May 2, 2013 at 8:30 a.m. Eastern time to discuss its financial results. The conference call can be accessed via telephone by dialing (888) 596-2611 or +1-913-312-0710 (international) and entering pass code: 8944519. Those who intend to participate in the conference call should register at least ten minutes in advance to ensure access to the call. A telephone replay of the conference call will be available through May 16, 2013 by dialing (888) 203-1112 or +1-719-457-0820 (international) and entering the pass code: 8944519.
The public may access a live broadcast of the conference call at the "Investors" section of Endurance's website, www.endurance.bm. Following the live broadcast, an archived version will continue to be available on Endurance's website.
A copy of Endurance's financial supplement for the first quarter of 2013 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 lines of insurance and catastrophe, property, casualty, and other 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 Wellesley House, 90 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 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," "expect," "intend," "plan," "believe," "project," "anticipate," "seek," "will," 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 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, 2012.
Forward-looking statements speak only as of the date on which they are made, and we undertake no obligation publicly to update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.
ENDURANCE SPECIALTY HOLDINGS LTD.
CONSOLIDATED BALANCE SHEETS
(In thousands of United States dollars,
except share and per share amounts)
March 31, December 31,
2013 2012
---------------- -----------------------
Assets
Cash and cash equivalents $ 857,187 $ 1,124,019
Fixed maturity investments,
available for sale, at fair
value 5,008,753 4,868,150
Short-term investments,
available for sale, at fair
value 1,400 42,230
Equity securities, available
for sale, at fair value 188,927 86,997
Other investments 554,715 517,546
Premiums receivable, net 1,193,578 601,952
Insurance and reinsurance 106,222 105,663
balances receivable
Deferred acquisition costs 212,953 168,252
Prepaid reinsurance premiums 340,066 166,702
Reinsurance recoverable on 588,576 691,783
unpaid losses
Reinsurance recoverable on paid 11,891 83,159
losses
Accrued investment income 24,865 27,166
Goodwill and intangible assets 169,899 172,000
Deferred tax asset 41,505 43,501
Net receivable on sales of 35,608 9,144
investments
Other assets 95,336 86,708
---------------- -----------------------
Total Assets $ 9,431,481 $ 8,794,972
---------------- -----------------------
Liabilities
Reserve for losses and loss 4,026,536 4,240,876
expenses $ $
Reserve for unearned premiums 1,625,883 965,244
Deposit liabilities 22,533 22,220
Reinsurance balances payable 203,048 110,843
Debt 527,421 527,339
Net payable on purchases of 111,969 81,469
investments
Other liabilities 147,841 136,384
---------------- -----------------------
Total Liabilities 6,665,231 6,084,375
---------------- -----------------------
Shareholders' Equity
Preferred shares
Series A, non-cumulative -
8,000,000 issued and
outstanding (2012 -
8,000,000) 8,000 8,000
Series B, non-cumulative -
9,200,000 issued and
outstanding (2012 -
9,200,000) 9,200 9,200
Common shares
43,169,336 issued and
outstanding (2012 -
43,116,394) 43,169 43,116
Additional paid-in capital 520,257 527,915
Accumulated other comprehensive
income 137,439 152,463
Retained earnings 2,048,185 1,969,903
---------------- -----------------------
Total Shareholders' Equity 2,766,250 2,710,597
---------------- -----------------------
Total Liabilities and
Shareholders' Equity $ 9,431,481 $ 8,794,972
---------------- -----------------------
Book Value per Common Share
Dilutive common shares
outstanding 43,181,370 43,130,075
Diluted book value per common
share [a] $ 54.10 $ 52.88
---------------- -----------------------
Note: All financial information contained herein is unaudited, except the balance sheet data for the year ended December 31, 2012, which was derived from Endurance's audited financial statements.
[a] Excludes the $430 million liquidation value of the preferred shares.
ENDURANCE SPECIALTY HOLDINGS LTD.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands of United States dollars, except share and per share amounts)
Quarter Ended
------------------------------
March 31, March 31,
2013 2012
--------------- --------------
Revenues
Gross premiums written $ 1,177,362 $ 1,061,649
--------------- --------------
Net premiums written $ 908,915 $ 843,056
Change in unearned premiums (488,798) (431,421)
--------------- --------------
Net premiums earned 420,117 411,635
Other underwriting income (loss) 749 (335)
Net investment income 49,305 57,075
Net realized and unrealized gains 6,235 5,203
Total other-than-temporary impairment losses (806) -
Portion of loss recognized in other - (219)
comprehensive (loss) income
--------------- --------------
Net impairment losses recognized in earnings (806) (219)
--------------- --------------
Total revenues 475,600 473,359
--------------- --------------
Expenses
Net losses and loss expenses 218,970 262,767
Acquisition expenses 71,636 68,489
General and administrative expenses 66,478 66,041
Amortization of intangibles 2,101 2,777
Net foreign exchange losses (gains) 2,927 (18,137)
Interest expense 9,038 9,047
--------------- --------------
Total expenses 371,150 390,984
--------------- --------------
Income before income taxes 104,450 82,375
Income tax (expense) benefit (4,151) 167
--------------- --------------
Net income 100,299 82,542
Preferred dividends (8,188) (8,188)
--------------- --------------
Net income available to common and participating
common shareholders $ 92,111 $ 74,354
--------------- --------------
Per share data
Basic earnings per common share $ 2.14 $ 1.72
--------------- --------------
Diluted earnings per common share $ 2.13 $ 1.72
--------------- --------------
ENDURANCE SPECIALTY HOLDINGS LTD.
RESULTS BY SEGMENT
(in thousands of United States dollars, except ratios)
For the quarter ended March 31, 2013
-------------------------------------------
Reported
Insurance Reinsurance Totals
-------------- ------------- --------------
Revenues
Gross premiums written $ 652,943 $ 524,419 $ 1,177,362
Ceded premiums written (248,249) (20,198) (268,447)
-------------- ------------- --------------
Net premiums written 404,694 504,221 908,915
-------------- ------------- --------------
Net premiums earned 151,152 268,965 420,117
Other underwriting income - 749 749
-------------- ------------- --------------
Total underwriting revenues 151,152 269,714 420,866
-------------- ------------- --------------
Expenses
Net losses and loss expenses 99,464 119,506 218,970
Acquisition expenses 14,616 57,020 71,636
General and administrative
expenses 35,627 30,851 66,478
-------------- ------------- --------------
149,707 207,377 357,084
-------------- ------------- --------------
Underwriting income $ 1,445 $ 62,337 $ 63,782
-------------- ------------- --------------
Net loss ratio 65.7 % 44.4 % 52.1%
Acquisition expense ratio 9.7 % 21.2 % 17.1%
General and administrative
expense ratio 23.6 % 11.5 % 15.8%
-------------- ------------- --------------
Combined ratio 99.0 % 77.1 % 85.0%
-------------- ------------- --------------
ENDURANCE SPECIALTY HOLDINGS LTD.
RESULTS BY SEGMENT
(in thousands of United States dollars, except ratios)
For the quarter ended March 31, 2012
-----------------------------------------------
Reported
Insurance Reinsurance Totals
--------------- --------------- ----------------
Revenues
Gross premiums written $ 635,347 $ 426,302 $ 1,061,649
Ceded premiums written (207,566) (11,027) (218,593)
--------------- --------------- ----------------
Net premiums written 427,781 415,275 843,056
--------------- --------------- ----------------
Net premiums earned 161,630 250,005 411,635
Other underwriting loss - (335) (335)
--------------- --------------- ----------------
Total underwriting
revenues 161,630 249,670 411,300
--------------- --------------- -----------------
Expenses
Net losses and loss
expenses 113,702 149,065 262,767
Acquisition expenses 16,214 52,275 68,489
General and
administrative expenses 34,435 31,606 66,041
--------------- --------------- ----------------
164,351 232,946 397,297
--------------- --------------- ----------------
Underwriting (loss)
income $ (2,721) $ 16,724 $ 14,003
--------------- --------------- ----------------
Net loss ratio 70.4 % 59.7 % 63.9%
Acquisition expense ratio 10.0 % 20.9 % 16.6%
General and
administrative expense
ratio 21.3 % 12.6 % 16.0%
--------------- --------------- ----------------
Combined ratio 101.7 % 93.2 % 96.5%
--------------- --------------- ----------------
ENDURANCE SPECIALTY HOLDINGS LTD.
CONSOLIDATED FINANCIAL RATIOS
As Reported
-------------------------------------------------------------
For the quarter ended March 31,
-------------------------------------------------------------
Insurance Reinsurance Total
--------------------- ------------------- -------------------
2013 2012 2013 2012 2013 2012
Net loss ratio 65.7 % 70.4 % 44.4 % 59.7 % 52.1 % 63.9 %
Acquisition
expense ratio 9.7 % 10.0 % 21.2 % 20.9 % 17.1 % 16.6 %
General and
administrative
expense ratio 23.6 % 21.3 % 11.5 % 12.6 % 15.8 % 16.0 %
---------- ---------- --------- --------- --------- ---------
Combined ratio 99.0 % 101.7 % 77.1 % 93.2 % 85.0 % 96.5 %
---------- ---------- --------- --------- --------- ---------
Effect of Prior Year Net
Loss Reserve Development
Favorable /
(Unfavorable)
-------------------------------------------------------------
For the quarter ended March 31,
-------------------------------------------------------------
Insurance Reinsurance Total
--------------------- ------------------- -------------------
2013 2012 2013 2012 2013 2012
Net loss ratio 11.4 % 4.9 % 12.4 % 3.6 % 12.1 % 4.1 %
---------- ---------- --------- --------- --------- ---------
Net of Prior Year Net Loss
Reserve Development
-------------------------------------------------------------
For the quarter ended March 31,
-------------------------------------------------------------
Insurance Reinsurance Total
--------------------- ------------------- -------------------
2013 2012 2013 2012 2013 2012
Net loss ratio 77.1 % 75.3 % 56.8 % 63.3 % 64.2 % 68.0 %
Acquisition
expense ratio 9.7 % 10.0 % 21.2 % 20.9 % 17.1 % 16.6 %
General and
administrative
expense ratio 23.6 % 21.3 % 11.5 % 12.6 % 15.8 % 16.0 %
---------- ---------- --------- --------- --------- ---------
Combined ratio 110.4 % 106.6 % 89.5 % 96.8 % 97.1 % 100.6 %
---------- ---------- --------- --------- --------- ---------
The combined ratio is the sum of the loss, acquisition expense and general and administrative expense ratios. Endurance presents the combined ratio as a measure that is commonly recognized as a standard of performance by investors, analysts, rating agencies and other users of its financial information. The combined ratio, excluding prior year net loss reserve development, enables investors, analysts, rating agencies and other users of its financial information to more easily analyze Endurance's results of underwriting activities in a manner similar to how management analyzes Endurance's underlying business performance. The combined ratio, net of prior year net loss reserve development, should not be viewed as a substitute for the combined ratio.
ENDURANCE SPECIALTY HOLDINGS LTD.
GROSS AND NET PREMIUMS WRITTEN BY SEGMENT
(in thousands of United States dollars)
The following tables show Endurance's gross and net premiums written for the
quarters ended March 31, 2013 and 2012:
Quarter Ended March 31, 2013 Quarter Ended March 31, 2012
------------------------------- ------------------------------
Gross Premiums Net Premiums Gross Premiums Net
Written Written Written Premiums
Written
------------------------------- ------------------------------
Insurance
Agriculture $ 564,474 $ 341,130 $ 533,667 $ 354,920
Casualty and 56,467 43,261 55,491 41,823
other
specialty
Professional 20,964 14,203 36,345 30,205
lines
Property 11,038 6,100 9,844 833
---------------- -------------- ---------------- -------------
Subtotal $ 652,943 $ 404,694 $ 635,347 $ 427,781
Insurance
---------------- -------------- ---------------- -------------
Reinsurance
Catastrophe $ 147,866 $ 131,398 $ 143,182 $ 133,718
Property 148,411 148,411 106,746 106,746
Casualty 151,702 150,273 121,674 120,437
Other 76,440 74,139 54,700 54,374
specialty
---------------- -------------- ---------------- -------------
Subtotal $ 524,419 $ 504,221 $ 426,302 $ 415,275
Reinsurance
---------------- -------------- ---------------- -------------
Total $ 1,177,362 $ 908,915 $ 1,061,649 $ 843,056
---------------- -------------- ---------------- -------------
ENDURANCE SPECIALTY HOLDINGS LTD.
RECONCILIATIONS
(in thousands of United States dollars, except share, per share amounts
and ratios)
The following is a reconciliation of Endurance's net income, net income
per diluted common share, net income allocated to common shareholders
under the two-class method and annualized return on average common
equity to operating income, operating income per diluted common share,
operating income allocated to common shareholders
under the two-class method and annualized operating return on average
common equity (all non-GAAP measures) for the quarters ended March
31, 2013 and 2012:
March 31, March 31,
2013 2012
---------------- -------------------------
Net income $ 100,299 82,542
Add (less) after-tax items:
Net foreign exchange loss
(gains) 2,909 (16,260)
Net realized and unrealized
gains (5,992) (4,967)
Net impairment losses
recognized in earnings 772 219
---------------- -------------------------
Operating income before
preferred dividends $ 97,988 $ 61,534
Preferred dividends (8,188) (8,188)
---------------- -------------------------
Operating income allocated to
common and participating
common shareholders $ 89,800 $ 53,346
---------------- -------------------------
Operating income allocated to
common shareholders under the
two-class method $ 88,328 $ 52,417
---------------- -------------------------
Weighted average diluted
common 42,443,936 42,488,850
---------------- -------------------------
Operating income per diluted
common share [b] $ 2.08 $ 1.23
---------------- -------------------------
Average common equity [a] $ 2,308,424 $ 2,217,852
Operating return on average
common equity 3.9 % 2.4 %
---------------- -------------------------
Annualized operating return
on average common equity 15.6 % 9.6 %
---------------- -------------------------
Net income $ 100,299 $ 82,542
Preferred dividends (8,188) (8,188)
---------------- -------------------------
Net income available to
common and participating
common shareholders $ 92,111 $ 74,354
---------------- -------------------------
Net income available to
common shareholders under the
two-class method $ 90,601 $ 73,059
---------------- -------------------------
Net income per diluted common
share $ 2.13 $ 1.72
---------------- -------------------------
Return on average common
equity, Net income 4.0 % 3.4 %
---------------- -------------------------
Annualized return on average
common equity, Net income 16.0 % 13.4 %
---------------- -------------------------
[a] Average common equity is calculated as the arithmetic average of the
beginning and ending common equity balances for the stated period, which
excludes the $430 million liquidation value of the preferred shares
[b] Represents diluted losses per share calculated under the two-class
method which was the lower of the treasury stock method and the two-class
method.
Operating income and operating income per diluted common share are internal performance measures used by Endurance in the management of its operations. Operating income allocated to common shareholders (excludes unvested restricted shares outstanding which are considered participating) per diluted common share represents operating income divided by weighted average dilutive common shares, which has been calculated in accordance with the two-class method under U.S. GAAP. Operating income represents after-tax operational results excluding, as applicable, after-tax net realized capital gains or losses and after-tax net foreign exchange gains or losses because the amount of these gains or losses is heavily influenced by, and fluctuates in part, according to the availability of market opportunities. Endurance believes these amounts are largely independent of its business and underwriting process and including them distorts the analysis of trends in its operations. In addition to presenting net income and net income per dilutive common share determined in accordance with the two-class method under GAAP, Endurance believes that showing operating income and operating income per dilutive common share enables investors, analysts, rating agencies and other users of its financial information to more easily analyze Endurance's results of operations in a manner similar to how management analyzes Endurance's underlying business performance. Operating income and operating income per dilutive common share should not be viewed as substitutes for GAAP net income and net income per dilutive common share, respectively.
Endurance presents return on equity as a measure that is commonly recognized as a standard of performance by investors, analysts, rating agencies and other users of its financial information.
Contact:
Investor Relations
Phone: +1 441 278 0988
Email: investorrelations@endurance.bm
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Endurance Specialty Holdings Ltd via Thomson Reuters ONE
Topic: Earnings
Source: Endurance Specialty Holdings Ltd.
https://www.acnnewswire.com
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