Insurance - Endurance Specialty Insurance Ltd.

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“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
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Insurance - Endurance Specialty Insurance Ltd.

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