Reinsurance - Endurance Specialty Insurance Ltd.

2015
QUARTER 1
FINANCIAL UPDATE
“
“
Our Marine / Energy and Global Agriculture teams are now fully integrated into Endurance Re and we achieved
significant growth in our global specialty lines of business at January 1 renewals and in the first quarter. With our
unique product expertise, we are able to widen and diversify the strong relationships that we have been building
with key clients and brokers around the world. We are extremely confident that Endurance Re’s presence and
relevance in these targeted markets will continue to increase throughout the remainder of the year.
— Jerome Faure, CEO, Global Reinsurance, Endurance Specialty Holdings Ltd.
FINANCIAL HIGHLIGHTS
ENDURANCE RE GLOBAL LINES
Catastrophe Reinsurance for
catastrophic perils on a treaty basis for
events such as hurricanes, typhoons,
earthquakes, floods, tornadoes, hail, fire,
terrorism and certain personal accident
and workers’ compensation coverages.
Property Proportional and excess of
loss reinsurance of personal lines and
commercial/industrial exposures. We
also offer single project and operational
engineering coverages as well as
property, liability and multi-line treaties
for small U.S. businesses.
(in millions of U.S. dollars, except percentages)
QUARTER ENDED
MAR 31, 2015
QUARTER ENDED
MAR 31, 2014
YEAR ENDED
DEC 31, 2014
YEAR ENDED
DEC 31, 2013
(UNAUDITED)
(UNAUDITED)
(AUDITED)
(AUDITED)
$1,301.4
$1,157.5
$2,894.1
$2,665.2
Net premiums written
765.0
798.7
1,934.2
2,048.9
Net income before
preferred dividends
108.5
104.5
348.5
311.9
44.1%
44.6%
52.1%
60.5%
ENDURANCE SPECIALTY HOLDINGS LTD.
Gross premiums written
Loss ratio
Combined ratio
Total assets
82.4%
81.3%
86.0%
90.2%
$10,380.1
$9,794.8
$9,644.8
$8,978.1
Total shareholders’ equity
3,274.8
3,001.1
3,185.2
2,886.5
Debt to total capitalization
13.9%
15.0%
14.2%
15.5%
Annualized ROAE,
Operating income
13.0%
15.0%
11.7%
11.9%
$565.2
$505.2
$1,177.9
$1,189.8
Net premiums written
460.9
455.7
1,073.8
1,116.4
Underwriting income
58.3
71.3
255.5
245.7
Loss ratio
38.3%
35.0%
36.4%
41.6%
Combined ratio
78.0%
71.3%
74.6%
76.8%
ENDURANCE RE
Casualty Reinsurance of general
liability, auto/motor liability, umbrella
liability and workers’ compensation
insurance.
Professional Lines Directors’ and
officers’ liability and related products,
medical malpractice liability, and
many classes of errors and omissions
reinsurance.
Gross premiums written
Twelve Months Ending March 31, 2015
Reinsurance Net Premiums Written = $1,079.0 Million
12%
Specialty
• Agriculture
• Aviation & Space
26%
Reinsurance Net Premiums Written
by Business Lines
Specialty
18%
Property
21%
23%
Catastrophe
Professional Lines
Casualty
• Marine & Energy
• Personal Accident
2%1% 1%
• Structured Reinsurance
• Trade Credit, Surety & Political Risk
• Weather Risk
Reinsurance Net Premiums Written
by Geography
4%
5%
10%
United States
40%
Worldwide
Europe
37%
Asia ex Japan
Japan
Australia / New Zealand
Canada
Other
EXCELLENT FINANCIAL STRENGTH AND LIQUIDITY
(March 31, 2015)
Strong and Flexible Capital Structure (in millions of U.S. dollars)
4,000
$3,803
$3,713
3,500
$3,238
$3,139
3,000
$528
$430
$430
$430
$430
$430
$528
$527
$527
$528
2,500
$3,414
Endurance Group Financial
Ratings
A.M. Best — A (Excellent)
XV Financial Strength
Stable Outlook
Standard & Poor’s — A (Strong)
Stable Outlook
NYSE: ENH
Endurance’s total capital was
$3.80 billion as of March 31, 2015
2,000
$2,845
$2,755
$2,457
$2,281
1,500
and includes $3.27 billion of
shareholders’ equity.
$2,181
At March 31, 2015, Endurance had
1,000
access to additional capital in the form
500
of a credit facility with approximately
$587 million in remaining capacity.
0
2012
2011
Debt
2014
2013
Preferred Equity
Mar 31, 2015
Endurance maintains significant levels
Common Equity
of liquidity with approximately 33%
of investments in cash, short-term
investments, U.S. Government, and
Investment Portfolio as of March 31, 2015
Fair Value = $6.5 Billion*
U.S. Government backed securities at
March 31, 2015.
Type of Investment
Endurance’s investment portfolio
Corporate Securities
5%
5%
9%
22%
6%
6%
16%
7%
U.S. Government Agency Residential
Mortgage-Backed Securities
Non-Agency Commercial
Mortgage-Backed Securities
with an average rating of AA- for our
Other Investments
fixed income investments at March
U.S. Government & Agencies Notes
9%
15%
is comprised of high quality assets
Asset-Backed Securities
31, 2015. Our priority is capital
Equity Securities
preservation while achieving attractive
Collateralized loan and debt obligations
risk adjusted returns.
Other Fixed Income Securities**
Cash & Equivalents
Endurance’s investment portfolio
has been managed to an average
13%
24%
Investment Portfolio Ratings***
AAA/Aaa
U.S. Government & Agencies
21%
9%
33%
AA/Aa
A/A
BBB and Below/Not Rated
duration of 2.95 years at March 31,
2015 to minimize interest rate risk. We
carefully manage our asset-liability
exposure and ensure that more than
sufficient liquidity is available.
* Investment totals net of investments pending settlement
**Includes multiple types of securities with a 3% or less share
***Excludes cash and cash equivalents, equity securities and other investments
To learn more, visit us at:
www.endurance.bm
ENDURANCE RE
LO CATI ONS
Bermuda
Waterloo House
100 Pitts Bay Road
Pembroke HM 08
Bermuda
Tel No. +1.441.278.0400
London
2 Minster Court
Mincing Lane
London, EC3R 7BB
United Kingdom
Tel No. +44.207.337.2800
Singapore
12 Marina Boulevard, #38-03
Marina Bay Financial Centre
Tower 3
Singapore 018982
Tel No. +65.6521.6860
Zurich
Pelikanplatz 15
CH-8001 Zurich
Switzerland
Tel No. +41.44.213.2500
New York
750 Third Avenue
Floors 18 & 19
New York, NY 10017
United States
Tel No. +1.212.471.2800
ENDURANCE RE
L EAD ER SHIP
Jerome Faure
CEO, Global Reinsurance
[email protected]
Peter Mills
Chief Underwriting Officer,
Head of Global Specialty
Reinsurance & Europe Property
& Casualty Reinsurance
[email protected]
Christopher Donelan
President & Chief Underwriting
Officer, Endurance Re U.S.
[email protected]
Stephen Young
Chief Underwriting Officer &
Head of Global Catastrophe
Reinsurance
[email protected]
Rene Lamer
Chief Executive, Singapore
Branch, Head of Asia Pacific
Catastrophe Reinsurance
[email protected]