Reinsurance - Endurance Specialty Insurance Ltd.

QUARTERLY FINANCIAL UPDATE
Q2 | 2013
Endurance Worldwide
Reinsurance

“I am pleased with our reinsurance results
FINANCIAL HIGHLIGHTS
(in millions of U.S. dollars, except percentages)
in spite of the significant catastrophe events
that occurred during the first half of 2013. In
an increasingly competitive environment, we
Quarter Ended
June 30, 2013
(Unaudited)
6 Months Ended
June 30, 2013
(Unaudited)
Year Ended
Dec 31, 2012
(Audited)
Year Ended
Dec 31, 2011
(Audited)
continue to expand our global presence and
Endurance Specialty Holdings Ltd.
add high quality underwriters to strengthen our
Gross premiums written
Net premiums written
$572.7
464.6
$1,750.1
1,373.5
$2,549.0
2,029.5
$2,467.1
1,979.8
specialty product capabilities as we refocus our
reinsurance operations to generate consistent
profitability with reduced volatility.”
Net income (loss) before
preferred dividends
Loss ratio
Combined ratio
61.0
66.1%
94.3%
161.3
60.0%
90.2%
162.5
75.5%
102.3%
(93.7)
84.6%
112.9%
Total assets
$9,550.4
$9,550.4
$8,795.0
$8,292.6
Jerome Faure
CEO, Global Reinsurance
Endurance Specialty Holdings Ltd.
Total shareholders’ equity
Debt to total capitalization
Annualized ROAE,
Operating income (loss)
2,736.1
16.2%
8.2%
2,736.1
16.2%
12.0%
2,710.6
16.3%
2.4%
2,611.2
16.8%
(6.3%)
Worldwide Reinsurance Segment
Gross premiums written
$295.8
$820.2
$1,119.1
$997.3
Net premiums written
273.1
777.3
1,087.1
974.3
Underwriting income (loss)
38.4
100.7
56.1
(247.6)
Loss ratio
52.0%
48.3%
62.8%
91.3%
REINSURANCE SPECIALTY LINES
Combined ratio
86.4%
81.8%
94.7%
126.0%
Catastrophe
Reinsurance for catastrophic perils on a treaty basis for
events such as hurricanes, typhoons, earthquakes, floods,
tornados, hail, fire, and certain workers’ compensation
coverages.
Trailing Twelve Months Ending June 30, 2013
Reinsurance Net Premiums Written = $1,151.4 Million
Property
Proportional and excess of loss reinsurance of personal
lines and commercial exposures. We also offer single
project and operational engineering coverages as well
as property, liability and multi-line treaties for U.S. small
businesses.
28%
11%
33%
Reinsurance Net Premiums Written (NPW)
by Business Lines
Property
Catastrophe
Casualty
28%
Casualty
Other Specialty
Reinsurance of general liability, auto/motor liability,
professional liability, directors’ and officers’ liability,
umbrella liability and workers’ compensation insurance.
Other Specialty
• Contract and Commercial Surety
• Aviation and Space
• Marine
29%
11%
60%
Reinsurance Risk Exposures (NPW)
Property
Casualty
Other Specialty
• Personal Accident
• Agriculture
• Trade Credit and Political Risk
• Weather Risk Management Products

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 930 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
$3,263
$527
$430
$2,306
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
June 30, 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 JUNE 30, 2013
Endurance’s total capital was $3.26 billion as of June 30,
2013 and includes $2.74 billion of shareholders’ equity.
At June 30, 2013, Endurance had access to additional
capital in the form of a credit facility with approximately
$430 million in remaining capacity.
Endurance maintains significant levels of liquidity with
approximately 42.8% of investments in cash, short-term
investments, U.S. Government, and U.S. Government
backed securities at June 30, 2013.
Endurance’s investment portfolio is comprised of high
quality assets with an average rating of AA for our fixed
income investments at June 30, 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 3.05 years at June 30, 2013
to balance investment yield and 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 June 30, 2013
Fair Value = $6.4 Billion*
1% 1%
1% 13%
2%
4%
8%
9%
10%
20%
8%
51%
20%
13%
21%
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
U.S. Government Agency Commercial
Mortgage-Backed Securities
Cash & Equivalents
Investment Portfolio Ratings**
AAA/Aaa
AA/U.S. Government & Agencies
A/A
BBB and Below/Not Rated
* Investment totals net of investments
pending settlement
** Excludes cash and cash equivalents,
equity securities and other investments

Worldwide Reinsurance Locations
Bermuda
Endurance Specialty Insurance Ltd.
Wellesley House
90 Pitts Bay Road
Pembroke HM 08
Bermuda
Tel No. +1 441-278-0400
London
Endurance Worldwide Insurance Limited
7th Floor, 2 Minster Court
Mincing Lane
London, EC3R 7BB
United Kingdom
Tel No. +44 207 337 2800
New York
Endurance Reinsurance Corporation of America
750 Third Ave, Floors 18 & 19
New York, NY 10017
Tel No. +1 212-471-2800
Singapore
Endurance Specialty Insurance Ltd.
Singapore Branch
12 Marina Boulevard, #38-03
Marina Bay Financial Centre Tower 3
Singapore 018982
Tel No. +65 6521 6860
Zurich
Endurance Specialty Insurance Ltd.
Pembroke (Bermuda)
Zurich Branch
Pelikanplatz 15
CH-8001 Zürich
Switzerland
Tel No. +41 44 213 2500
Kansas City
Endurance Reinsurance Corporation of America
4801 Main Street, Suite 300
Kansas City, MO 64112
Tel No. +1 816-410-1900
Worldwide Reinsurance Leadership
Jerome Faure
CEO, Global Reinsurance
jfaure@endurance.bm
James D’Onofrio
EVP, Head of Reinsurance U.S.
jdonofrio@endurancereusa.com
Patrick Aeschbacher
Head of Reinsurance, Asia Pacific
paeschbacher@endurance.bm
Peter Mills
EVP, Head of Specialty Reinsurance
pmills@endurance.bm
Stephen Young
Chief Underwriting Officer &
Head of Global Catastrophe Reinsurance
syoung@endurance.bm
®
To learn more, visit us at: www.endurance.bm