Insurance - Endurance Specialty Insurance Ltd.

QUARTERLY FINANCIAL UPDATE
Q1 | 2013
Endurance Worldwide
Insurance

“As we continue to build out our
FINANCIAL HIGHLIGHTS
(in millions of U.S. dollars, except percentages)
insurance platform with new
specialty teams in the U.S. and
Quarter Ended
Mar 31, 2013
(Unaudited)
Year Ended
Dec 31, 2012
(Audited)
Year Ended
Dec 31, 2011
(Audited)
establish an international presence
in 2013, I anticipate that the growth
Endurance Specialty Holdings Ltd.
Gross premiums written
$1,177.4
$2,549.0
$2,467.1
in our book of business will gain
momentum during the year.”
Net premiums written
Net income (loss) before
preferred dividends
Loss ratio
908.9
100.3
52.1%
2,029.5
162.5
75.5%
1,979.8
(93.7)
84.6%
Combined ratio
85.0%
102.3%
112.9%
Jack Kuhn
CEO, Global Insurance
Endurance Specialty Holdings Ltd.
Total assets
Total shareholders’ equity
Debt to total capitalization
Annualized ROAE,
Operating income (loss)
$9,431.5
2,766.3
16.0%
15.6%
$8,795.0
2,710.6
16.3%
2.4%
$8,292.6
2,611.2
16.8%
(6.3%)
Worldwide Insurance Segment
INSURANCE SPECIALTY LINES
Agriculture
ARMtech, our U.S. crop insurance subsidiary, offers multi-peril
crop insurance, crop hail, livestock risk protection and other
agricultural risk management products through independent
agents.
Casualty & Other Specialty
• Primary and Excess Casualty
We write primary and excess casualty insurance for small,
middle market and Fortune 1000 accounts, accessed
through retail and wholesale channels.
• Contract Binding Operation
We offer property and general liability coverages for small to
medium-sized risks through our U.S. surplus lines agency
network.
• Healthcare Liability
Our U.S. and Bermuda teams provide excess hospital
medical professional and other third-party liability coverage
for non-profit and for-profit hospitals, academic medical
centers and integrated healthcare delivery systems.
• Inland Marine
We offer a full portfolio of inland marine coverage including
both mono-line and marine packages.
• Surety
We provide contract and commercial surety insurance
through a network of dedicated agents across the U.S.
Professional Lines
We offer primary and excess coverage for directors’ and officers’
liability, errors and omissions liability, employment practices
liability, and pension trust liability, underwriting through both
retail and wholesale channels.
Gross premiums written
Net premiums written
Underwriting income (loss)
Loss ratio
Combined ratio
Trailing Twelve Months Ending March 31, 2013
Insurance Net Premiums Written = $919.3 Million
4%
13%
24%
59%
$652.9
404.7
1.4
65.7%
99.0%
Agriculture
Casualty & Other Specialty
Professional Lines
Property
Production by Major Brokers on Net Premiums Written*
41%
19%
6%
4%4% 5%
3%
9%
9%
Marsh/Guy Carpenter
Independent Agents
Aon Benfield
AmWins
Willis
CRC/Crump
Swett & Crawford
Risk Placement Services
Other **
$1,429.9
942.4
(104.2)
89.6%
110.6%
$1,469.8
1,005.5
(4.3)
77.9%
100.1%
Property
We offer insurance against large-value commercial risks and
difference in conditions coverage by our U.S. property team
through a wholesale producer network.
* Excludes Agriculture, which is distributed by
Endurance’s ARMtech operating subsidiary
through independent agents
**
Includes multiple brokers with a 3% or less share

ENDURANCE SPECIALTY
HOLDINGS LTD.
Endurance Specialty Holdings Ltd. (NYSE:ENH) is
an insurance and reinsurance provider focused on
underwriting specialty lines on a global basis through
our operating subsidiaries. Our clients are serviced by
approximately 900 employees located in Bermuda,
Europe, Asia and throughout the United States.
Strong and Flexible Capital Structure (in millions of U.S. dollars)
3,500 $3,385
$3,376
$150
$3,139
$3,238
3,000
$448
$528
$528
$527
$200
$200
2,500
2,000
$430
$430
$2,587
$2,648
1,500
$2,281
$2,181
$3,294
$527
$430
$2,337
At Endurance, specialization is at the core of our
1,000
strategy, culture and values. We believe that this
specialty focus best positions us to withstand market
500
cycles and to identify and develop opportunities to
0
further enhance our business.
2009
2010
2011
2012
Mar 31, 2013
Contingent Equity Debt Preferred Equity Common Equity
The decline in capital in 2011 was principally driven by $414.1 million of share repurchases and
dividends. The decline was partially offset by $250.7 million in proceeds received upon issuance
of perpetual preferred shares and exercise of common stock options and warrants.
EXCELLENT FINANCIAL
STRENGTH AND LIQUIDITY
AT MARCH 31, 2013
Endurance’s total capital was $3.29 billion as of March 31,
2013 and includes $2.77 billion of shareholders’ equity.
At March 31, 2013, Endurance had access to additional
capital in the form of a credit facility with approximately
$409 million in remaining capacity.
Endurance maintains significant levels of liquidity with
approximately 42.0% of investments in cash, short-term
investments, U.S. Government, and U.S. Government
backed securities at March 31, 2013.
Endurance’s investment portfolio is comprised of high
quality assets with an average rating of AA for our fixed
income investments at March 31, 2013. Our priority is
capital preservation with a secondary goal of attractive
risk adjusted returns. We have limited exposure to lower
rated sovereign credits.
Endurance’s investment portfolio has been managed
to an average duration of 2.78 years at March 31, 2013
to minimize interest rate risk. We carefully manage
our asset-liability exposure and ensure that more than
sufficient liquidity is available.
Endurance Group Financial Strength Ratings
A.M. Best A (Excellent)
XV Financial Strength
Stable Outlook
NYSE: ENH
Standard & Poor’s
Stable Outlook
Investment Portfolio as of March 31, 2013
Fair Value = $6.5 Billion*
1% 1%
1%
12%
2%
3%
8%
9%
20%
11%
12%
22%
18%
A (Strong)
Type of Investment
Corporate Securities
U.S. Government Agency Residential
Mortgage-Backed Securities
Non-Agency Commercial
Mortgage-Backed Securities
U.S. Government & Agencies Notes
Other Investments
Asset-Backed Securities
Equity Securities
Foreign Government
Government & Agency Guaranteed
Corporates
Non-Agency Residential
Mortgage-Backed Securities
Municipals
Cash & Equivalents
8%
22% Investment Portfolio Ratings**
AAA/Aaa
AA/U.S. Government & Agencies
A/A
BBB and Below/Not Rated
50%
* Investment totals net of investments
pending settlement
** Excludes cash and cash equivalents,
equity securities and other investments

Worldwide Insurance Locations
Bermuda
Wellesley House
90 Pitts Bay Road
Pembroke HM 08
Bermuda
Tel No. +1 441-278-0400
United States
Alpharetta, Georgia
2300 Lakeview Parkway, Suite 700
Alpharetta, GA 30009
Tel No. +1 678-916-3850
Chicago, Illinois
10 South Wacker Drive, Suite 2970
Chicago, IL 60606
Tel No. +1 312-980-5300
Los Angeles, California
725 South Figueroa Street, Suite 2100
Los Angeles, CA 90017
Tel No. +1 213-270-7000
Lubbock, Texas
7101 82nd Street
Lubbock, TX 79424
Tel No. +1 806-473-0333
New York, New York
750 Third Avenue
New York, NY 10017
Tel No. +1 212-209-6500
St. Louis, Missouri
16052 Swingley Ridge Road, Suite 130
St. Louis, MO 63017
Tel No. +1 636-681-1220
Atlanta, Georgia
400 Interstate North Parkway, Suite 850
Atlanta, GA 30339
Tel No. +1 770-799-2660
New Hyde Park, New York
3333 New Hyde Park Road, Suite 210
New Hyde Park, NY 11042
Tel No. +1 212-209-7229
®
To learn more, visit us at: www.endurance.bm