Endurance boosted by steady profits rise

Bermuda-based Endurance has reported a 7.3 percent rise in profits for 2016, despite taking losses from Hurricane Matthew and the earthquake in New Zealand.

The company said that net income had gone from $355.1 million for full year 2015 to $381.1 million for full year 2018, a rise of just over seven percent.

The company saw gross premiums written rise substantially, from $3.32 billion in 2015 to $4.2 billion in 2016, an increase of 26.2 percent. Its catastrophe line of business increased by $10.4 million due to reinstatement premiums on current quarter events and the 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 company also reported a rise in net investment income, which went from $113.8 million in 2015 to $176.6 million in 2016.

However, Endurance also saw its combined ratio weaken from 82.9 percent in 2015 to 88.1 percent in 2016. The company said that it had seen an overall net negative financial impact from catastrophe losses in 2016 of $140.4 million. This was made up of net loss expenses of $174.9 million, but was partially offset by $21.5 million in net reinstatement premiums and $13.0 million of amounts attributable to non-controlling interests.

Endurance said that its accident year net loss ratio of 77.8 percent increased 13.9 percentage points, with most of this 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. In addition it said that higher attritional losses had been incurred within the property, marine/energy and aviation lines of business.