Endurance profits nearly triple in Q3 2016

Endurance Specialty Holdings, a Bermuda-based re/insurer, almost tripled its net income in the third quarter of 2016, only a month after its acquisition by Sompo.

Endurance’s net income for the third quarter of 2016 was $130.1 million, compared with $43.6 million in the same period of 2015.

The company said that this increase was predominantly driven by gains in its investment returns. Its net investment income for the quarter was $62.2 million, an increase of $45.7 million on the same period of 2015.

Endurance said its investment income benefited from increases in investment income generated from the re/insurer’s trading and available for sale investments due to an increase in invested assets.

The company’s gross written premiums (GWP) in the third quarter of 2016 reached $760.7 million, an increase of 18.4 percent, compared with the same period in 2015, the increase was driven by its insurance book of business.

The GWP for Endurance’s insurance segment were $568.3 million, an increase of 26.7 percent year-on-year.

The insurance segment’s combined ratio was 104.6 percent, however, compared with 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 GWP 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 to $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 mainly due to targeted non-renewals and reductions of signed lines, partially offset by new business and select renewal of business acquired from Montpelier.