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					                                                                         Endurance Worldwide
                                                                         Reinsurance
Q U A R T E R LY F I N A N C I A L U P D AT E
Q3 | 2010
                                                                         Quarter Ended       9 Months Ended    Year Ended        Year Ended
FINANCIAL HIGHLIGHTS                                                     Sep 30, 2010        Sep 30, 2010      Dec 31, 2009      Dec 31, 2008
(in millions of U.S. dollars, except percentages)                        (Unaudited)         (Unaudited)       (Audited)         (Audited)

Endurance Specialty Holdings Ltd.
Gross premiums written                                                      $555.6            $1,864.0         $2,021.5            $2,246.4
Net premiums written                                                         451.9             1,605.6           1,606.1            1,784.3
Net income before preferred dividends                                        139.1              253.5              536.1                   98.6
Loss ratio                                                                     56.6%              61.3%             53.1%                  54.3%
Combined ratio                                                                 83.7%              90.1%             84.0%                  93.5%


Total assets                                                               $8,353.2           $8,353.2         $7,666.7            $7,272.5
Total shareholders’ equity                                                  2,919.7            2,919.7           2,787.3            2,207.3
Debt to total capitalization                                                   15.3%              15.3%             13.8%                  16.9%
Annualized ROAE, Operating income                                              17.2%              11.3%             22.0%                   8.5%

Worldwide Reinsurance Segment
Gross premiums written                                                      $252.0             $864.5            $869.3              $820.1
Net premiums written                                                         247.6              857.4              865.7              803.7
Underwriting income                                                            52.4               75.4             195.6                   79.1
Loss ratio                                                                     41.5%              53.7%             38.8%                  53.6%
Combined ratio                                                                 76.9%              88.5%             75.9%                  90.2%




R E I N S U R A N C E S P E C I A LT Y L I N E S                         Quarter Ending September 30, 2010
                                                                         Reinsurance Net Premiums Written = $247.6 million
Catastrophe
• Reinsurance for catastrophic perils on a treaty basis for events
                                                                                        2%
  such as hurricanes, typhoons, earthquakes, floods, tornados, hail,
  fire, and certain workers’ compensation coverages                                     4%                 Reinsurance Net Premiums Written (NPW)
                                                                                                          by Business Lines
Casualty                                                                         16%
                                                                                                              Property
• Reinsurance of general liability, auto/motor liability, professional                         45%
                                                                                                              Casualty
  liability, directors’ and officers’ liability, umbrella liability and                                        Catastrophe
  workers’ compensation insurance                                                 33%
                                                                                                              Surety and Other Specialty
                                                                                                              Aerospace and Marine
Property
• Proportional and excess of loss reinsurance of personal lines and
  commercial exposures
                                                                                        5%
Surety and Other Specialty                                                                                Reinsurance Risk Exposures (NPW)
                                                                                      17%
• Contract and commercial surety reinsurance, on both a
                                                                                                              Property
  proportional and excess of loss basis, as well as personal accident,          36%
                                                                                             50%
                                                                                              59%             Casualty
  agriculture and terrorism
                                                                                  33%                         Other Specialty
Aerospace and Marine
• Reinsurance of aviation and space insurance, including aviation
  hull, aircraft liability and aircraft products coverages, as well as
  satellite launch and in-orbit coverage

• Proportional and non-proportional reinsurance of bluewater
  hull, brownwater hull and cargo insurance
E N D U R A N C E S P E C I A LT Y                          Strong and Flexible Capital Structure                          (in millions of U.S. dollars)


H O L D I N G S LT D .                                       3,500                                                                     $3,385
                                                                                                                                                              $3,448

                                                                                                                                        $150
                                                                                              $3,111
Endurance Specialty Holdings Ltd. (NYSE:ENH) is              3,000                             $150
                                                                                                                  $2,805
                                                                            $2,745
an insurance and reinsurance provider focused on                                                                  $150

underwriting specialty lines on a global basis through       2,500
                                                                                                                                       $1,742
                                                                            $780              $1,221                                                          $1,945
our operating subsidiaries. Our clients are serviced by
                                                             2,000                                                $1,245
approximately 800 employees located in Bermuda,
                                                                            $447
Europe, Asia and throughout the United States.               1,500                             $449
                                                                            $200
                                                                                                                                        $448
                                                                                               $200                $448                                       $528
At Endurance, specialization is at the core of our           1,000                                                                      $200
                                                                                                                  $200                                        $200
strategy, culture and values. We believe that this
                                                                            $1,318
                                                                                              $1,091
specialty focus best positions us to weather market           500
                                                                                                                  $762                  $845                  $775

cycles and to identify and develop opportunities to
                                                                0
further enhance our business.
                                                                            2006               2007               2008                 2009                Sep 30, 2010

                                                                            Contingent Equity              Debt                        Common
                                                                            Retained Earnings              Preferred Equity            Share Capital




E XCELLENT FINANCIAL                                        Endurance Group Financial                                Enterprise Risk Management
                                                            Strength Ratings                                         Rating
STRENGTH AND LIQUIDIT Y                                     A.M. Best                      A (Excellent)             Standard & Poor’s                     Excellent
                                                            XV Financial Strength
AT S E P T E M B E R 3 0 , 2 0 1 0                          Stable Outlook
                                                            Standard & Poor’s              A (Strong)                NYSE: ENH
Endurance’s total capital was $3.45 billion as of           Stable Outlook
September 30, 2010 and includes $2.92 billion of
shareholders’ equity.
                                                            Investment Portfolio as of September 30, 2010
At September 30, 2010, Endurance had access to additional   Fair Value = $6.3 Billion*
capital in the form of a credit facility maturing in 2012
with approximately $770 million in remaining capacity.                                                     Type of Investment
                                                                                                              Corporate Securities
Endurance maintains significant levels of liquidity with                                                       U.S. Government & Agencies Notes
                                                                     2%
approximately 55% of investments in cash, short-term                                                          U.S. Government Agency Residential
                                                                             9%                               Mortgage-Backed Securities**
investments, U.S. Government, and U.S. Government-                     4%            19%
                                                                      5%                                      Government & Agency Guaranteed
backed securities at September 30, 2010.                                                                      Corporates
                                                                     5%
                                                                                       16%                    Non-Agency Commercial
                                                                     6%                                       Mortgage-Backed Securities**
Endurance’s investment portfolio is comprised of high
                                                                      9%                                      Other Investments
quality assets with an average rating of AA for our fixed                             13%
                                                                             12%                              Short-Term Investments
income investments at September 30, 2010. We hold                                                             Asset-Backed Securities
no sub-prime mortgage-backed securities or credit and                                                         Non-Agency Residential
                                                                                                              Mortgage-Backed Securities**
interest rate derivatives in our portfolio.                                                                   Foreign Government
                                                                                                              Cash & Equivalents
Endurance’s investment portfolio has been managed
to an average duration of 2.25 years at September 30,                          6%
                                                                          5%
2010 to minimize interest rate risk. We carefully manage                                                   Investment Portfolio Ratings*
                                                                      13%                                      AAA/U.S. Government & Agencies
our asset-liability exposure and ensure that more than
                                                                                                               AA/Aa
sufficient liquidity is available.                                    8%              68%                       A/A
                                                                                                               BBB and Below/Not Rated
                                                                                                               Other Investments


                                         ®                                                                 *	 Investment	totals	net	of	investments		
                                                                                                           	 pending	settlement
                                                                                                           **
                                                                                                              	 Less	than	17.2%	of	total	Mortgage-	and	
                                                                                                           	 Asset-Backed	Securities	are	rated	below	AAA

				
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