Exhibit 99.1

		Contact
		Investor Relations
		Phone: (441) 278-0988
		Email: investorrelations@endurance.bm

ENDURANCE REPORTS THIRD QUARTER 2011 FINANCIAL RESULTS

PEMBROKE, Bermuda — October 27, 2011 — Endurance Specialty Holdings Ltd. (NYSE:ENH) today reported a net loss of $20.0 million and $0.71 per diluted common share for the third quarter of 2011 versus net income of $139.1 million and $2.51 per diluted common share in the third quarter of 2010. For the nine months ended September 30, 2011, the net loss was $66.4 million and $2.07 per diluted common share versus net income of $253.5 million and $4.33 per diluted common share for the nine months ended September 30, 2010.

Operating highlights for the quarter ended September 30, 2011 were as follows:

•

Net premiums written of $551.3 million, an increase of 22.0% over the same period in 2010;

•

Combined ratio of 104.6%, which included 17.5 percentage points of catastrophe losses partially offset by the benefit of 7.9 percentage points of favorable prior year loss reserve development;

•

Net investment income of $14.1 million, a decrease of $39.6 million over the same period in 2010;

•

An operating loss, which excludes after-tax realized investment gains and losses and foreign exchange gains and losses, of $24.7 million and $0.83 per diluted common share;

•

An operating loss on average common equity for the quarter of 1.5%; and

•

Book value of $51.63 per diluted common share, down 1.1% from June 30, 2011.

Operating highlights for the nine months ended September 30, 2011 were as follows:

•

Net premiums written of $1,792.0 million, an increase of 11.6% over the same period in 2010;

•

Combined ratio of 113.0%, which included 24.9 percentage points of catastrophe losses partially offset by the benefit of 9.6 percentage points of favorable prior year loss reserve development;

•

Net investment income of $106.4 million, a decrease of $37.0 million over the same period in 2010;

•

An operating loss, which excludes after-tax realized investment gains and losses and foreign exchange gains and losses, of $96.9 million and $2.83 per diluted common share;

•

An operating loss on average common equity for the first nine months of the year of 4.6%; and

•

Book value of $51.63 per diluted common share, down 2.1% from December 31, 2010.

David Cash, Chief Executive Officer, commented, “The third quarter was a tough one for the industry, as we saw continued frequency of severe catastrophe events and adverse weather conditions, combined with historically low interest rates, global economic uncertainty and a competitive marketplace. Endurance has been able to withstand these challenges, and continues to maintain a very strong balance sheet with prudent reserves and a high quality, short duration investment portfolio. We have selectively expanded our business within profitable niches while reducing those business lines where returns were below our targets.”

Insurance Segment

Operating highlights for Endurance’s Insurance segment for the quarter ended September 30, 2011 were as follows:

•

Net premiums written of $303.2 million, an increase of 48.4% from the third quarter of 2010;

•

Combined ratio of 96.8%, an increase of 6.7 percentage points from the third quarter of 2010; and

•

Favorable prior year loss reserve development of 3.9 percentage points during the current period, level with the third quarter of 2010.

Operating highlights for Endurance’s Insurance segment for the nine months ended September 30, 2011 were as follows:

•

Net premiums written of $909.0 million, an increase of 21.5% from the same period in 2010;

•

Combined ratio of 96.3%, an increase of 4.3 percentage points from the same period in 2010; and

•

Favorable prior year loss reserve development of 9.6 percentage points during the current period, compared to 5.7 percentage points of favorable prior year loss reserve development in the same period in 2010.

Third quarter net premiums written in the Insurance segment grew within the agriculture and casualty lines of business, partially offset by declines in the property and professional lines. The growth in the agriculture line resulted from positive adjustments to spring crop premiums, as well as commodity prices being higher than a year ago for winter crops. The increase in the casualty line was driven by the continued successful rollout of our contract binding authority business line which we launched in November 2010. The decline in net premiums written in the property, healthcare and professional lines of business was driven by increased competition, which led to either non-renewing business or a move to higher policy attachment points. For the nine months ended September 30, 2011, net premiums written increased primarily as a result of increased commodity prices in the agriculture line and growth in casualty premiums, partially offset by declines in the property, healthcare and professional lines of business.

The increase in the Insurance segment combined ratios in the third quarter and first nine months of 2011 compared to the same periods in 2010 resulted from higher net loss ratios, partially offset by improvements in the acquisition expense ratio and, in the third quarter, an improvement in the general and administrative expense ratio. The 2011 Insurance segment net loss ratios were higher than the net loss ratios in the corresponding 2010 periods primarily due to storm and flood losses in the property insurance line of business, including net losses of $7.5 million from Hurricane Irene in the current periods. The higher 2011 Insurance segment net loss ratios also resulted from higher losses in our agriculture line of business due to the current drought in the Southwest United States and the excess moisture in the Midwest United States in the spring. These losses were partially offset by higher levels of favorable prior year reserve development for the current nine months. The current quarter combined ratio benefitted from 3.9 percentage points of favorable loss reserve development, the same as the third quarter of 2010. For the first nine months of 2011, the combined ratio benefitted from 9.6 percentage points of favorable loss development compared to 5.7 percentage points for the first nine months of 2010. Favorable development for the current nine months was experienced in the short tail, long tail and other lines of business, as claims did not occur as originally expected.

The current periods’ general and administrative expense ratios improved in the current quarter compared to the same period a year ago and was flat for the first nine months of 2011 compared to a year ago. Investments in several new insurance lines of business, which require higher initial expenses compared to revenues, were offset by higher earned premiums within the agriculture line of business. The acquisition expense ratios in both periods in 2011 were lower than the same periods in 2010 as the agriculture line of business comprises a greater portion of 2011 earned premiums and has lower related acquisition costs.

Reinsurance Segment

Operating highlights for Endurance’s Reinsurance segment for the quarter ended September 30, 2011 were as follows:

•

Net premiums written of $248.1 million, an increase of 0.2% from the third quarter of 2010;

•

Combined ratio of 115.0%, an increase of 38.1 percentage points from the third quarter of 2010;

•

Favorable prior year loss reserve development of 13.2 percentage points during the current period, compared to 11.3 percentage points of favorable prior year loss reserve development in the third quarter of 2010; and

•

Net catastrophe losses of $91.1 million or 37.6 percentage points on the combined ratio.

Operating highlights for Endurance’s Reinsurance segment for the nine months ended September 30, 2011 were as follows:

•

Net premiums written of $882.9 million, an increase of 3.0% from the same period in 2010;

•

Combined ratio of 130.3%, an increase of 41.8 percentage points from the same period in 2010;

•

Favorable prior year loss reserve development of 9.7 percentage points during the current period, compared to 10.1 percentage points of favorable prior year loss reserve development in the same period in 2010; and

•

Net catastrophe losses of $347.2 million or 50.0 percentage points on the combined ratio.

The modest increases in net premiums written in the Reinsurance segment in the third quarter and first nine months of 2011 resulted primarily from growth in the property and catastrophe lines of business, partially offset by declines in the casualty line of business compared to 2010. Within the property line of business, growth primarily resulted from increased renewal premiums from one large contract and new business underwritten within our Singapore and Zurich offices. Growth in our catastrophe premiums was driven predominantly from price increases experienced on contract renewals and reinstatement premiums related to the various catastrophes. Current quarter casualty net premiums written declined 30.6% due to several contracts that were not renewed due to pricing, terms and conditions.

The Reinsurance segment’s combined ratio in the third quarter of 2011 increased compared to the third quarter of 2010 primarily due to $91.0 million or 37.6 percentage points in losses net of reinsurance and reinstatement premiums from Hurricane Irene, the Danish flood, Texas brushfires and multiple storms in the Midwest which when accumulated triggered several aggregate catastrophe contracts. The current quarter’s net loss ratio benefitted from 13.2 percentage points of favorable loss reserve development compared to 11.3 percentage points in the third quarter of 2010.

For the first nine months of 2011, the Reinsurance segment reported a combined ratio of 130.3% compared to 88.5% for the same period in 2010. The increase in the combined ratio was largely attributable to a greater frequency of catastrophe events in 2011, including the Australian floods, the Japan and New Zealand earthquakes, the spring tornadoes in the United States, and the third quarter events described above, which resulted in losses net of reinsurance and reinstatement premiums of $347.2 million or 50.0 percentage points to the combined ratio. For the nine months ended September 30, 2011, the net loss ratio benefitted from 9.7 percentage points of favorable loss reserve development compared to 10.1 percentage points in the first nine months of 2010.

Investments

Endurance’s net investment income for the quarter ended September 30, 2011 was $14.1 million, a decrease of $39.6 million as compared to the same period in 2010. Endurance’s net investment income for the nine months ended September 30, 2011 was $106.4 million, a decrease of $37.0 million or 25.8% as compared to the same period in 2010. During the third quarter and nine months ended September 30, 2011, Endurance’s net investment income included mark to market losses of $22.5 million and $7.6 million, respectively, on its alternative investments and high yield loan funds included in other investments, as compared to mark to market gains of $13.8 million and $23.8 million in the third quarter and first nine months of 2010, respectively. Investment income generated from Endurance’s fixed maturity investments decreased by $3.3 million and $6.5 million for the three and nine months ended September 30, 2011 compared to the same periods in 2010 due to lower reinvestment rates during the current periods and the short duration of the portfolio. The ending book yield on Endurance’s fixed maturity investments at September 30, 2011 was 2.79%, down from 3.13% at December 31, 2010.

Endurance’s fixed income investments, which comprised approximately 92.4% of Endurance’s investments as of September 30, 2011, maintained an average credit quality of AA. Endurance recorded net realized investment gains of $1.0 million during the third quarter and $26.3 million of net realized gains for the first nine months of 2011 compared to net realized investment gains of $9.0 million and $15.2 million during the third quarter and first nine months of 2010.

Endurance ended the third quarter of 2011 with cash and invested assets of $6.4 billion, which represents a 3.1% increase from December 31, 2010. Net operating cash flow was $337.5 million for the nine months ended September 30, 2011 versus $390.6 million for the same period in 2010.

Capitalization and Shareholders’ Equity

At September 30, 2011, Endurance’s shareholders’ equity was $2.64 billion or $51.63 per diluted common share versus $2.85 billion or $52.74 per diluted common share at December 31, 2010. For the quarter and nine months ended September 30, 2011, Endurance declared and paid dividends of $0.30 and $0.90 per share, respectively.

Earnings Call

Endurance will host a conference call on October 28, 2011 at 8:30 a.m. Eastern time to discuss its financial results. The conference call can be accessed via telephone by dialing (888) 631-5913 (toll free) or (913) 312-1447 (international) and entering pass code: 2144344. Those who intend to participate in the conference call should register at least ten minutes in advance to ensure access to the call. A telephone replay of the conference call will be available through November 11, 2011 by dialing (888) 203-1112 (toll-free) or (719) 457-0820 (international) and entering the pass code: 2144344.

The public may access a live broadcast of the conference call at the “Investors” section of Endurance’s website, www.endurance.bm. Following the live broadcast, an archived version will continue to be available on Endurance’s website.

A copy of Endurance’s financial supplement for the third quarter of 2011 will be available on Endurance’s website at www.endurance.bm shortly after the release of earnings.

Operating (loss) income, operating return on average common equity, operating (loss) income per dilutive common share, operating (loss) income allocated to common shareholders and combined ratio excluding prior year net loss reserve development are non-GAAP measures. Reconciliations of these measures to the appropriate GAAP measures are included in the attached tables.

About Endurance Specialty Holdings

Endurance Specialty Holdings Ltd. is a global specialty provider of property and casualty insurance and reinsurance. Through its operating subsidiaries, Endurance writes property, casualty, healthcare liability, agriculture, workers’ compensation, professional lines of insurance and property, catastrophe, casualty, agriculture, marine, aerospace, and surety and other specialty lines of reinsurance. We maintain excellent financial strength as evidenced by the ratings of A (Excellent) from A.M. Best (XV size category) and A (Strong) from Standard and Poor’s on our principal operating subsidiaries. Endurance’s headquarters are located at Wellesley House, 90 Pitts Bay Road, Pembroke HM 08, Bermuda and its mailing address is Endurance Specialty Holdings Ltd., Suite No. 784, No. 48 Par-la-Ville Road, Hamilton HM 11, Bermuda. For more information about Endurance, please visit www.endurance.bm.

Safe Harbor for Forward-Looking Statements

Some of the statements in this press release may include forward-looking statements which reflect our current views with respect to future events and financial performance. Such statements may include forward-looking statements both with respect to us in general and the insurance and reinsurance sectors specifically, both as to underwriting and investment matters. Statements which include the words “should,” “expect,” “intend,” “plan,” “believe,” “project,” “anticipate,” “seek,” “will,” and similar statements of a future or forward-looking nature identify forward-looking statements in this press release for purposes of the U.S. federal securities laws or otherwise. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the Private Securities Litigation Reform Act of 1995.

All forward-looking statements address matters that involve risks and uncertainties. Accordingly, there are or may be important factors that could cause actual results to differ from those indicated in the forward-looking statements. These factors include, but are not limited to, the effects of competitors’ pricing policies, greater frequency or severity of claims and loss activity, changes in market conditions in the agriculture insurance industry, termination of or changes in the terms of the U.S. multiple peril crop insurance program, a decreased demand for property and casualty insurance or reinsurance, changes in the availability, cost or quality of reinsurance or retrocessional coverage, our inability to renew business previously underwritten or acquired, our inability to maintain our applicable financial strength ratings, our inability to effectively integrate acquired operations, uncertainties in our reserving process, changes to our tax status, changes in insurance regulations, reduced acceptance of our existing or new products and services, a loss of business from and credit risk related to our broker counterparties, assessments for high risk or otherwise uninsured individuals, possible terrorism or the outbreak of war, a loss of key personnel, political conditions, changes in insurance regulation, changes in accounting policies, our investment performance, the valuation of our invested assets, a breach of our investment guidelines, the unavailability of capital in the future, developments in the world’s financial and capital markets and our access to such markets, government intervention in the insurance and reinsurance industry, illiquidity in the credit markets, changes in general economic conditions and other factors described in our Annual Report on Form 10-K, as amended, for the year ended December 31, 2010 and in our most recent Quarterly Report on Form 10-Q.

Forward-looking statements speak only as of the date on which they are made, and we undertake no obligation publicly to update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.

ENDURANCE SPECIALTY HOLDINGS LTD.

(in thousands of United States dollars, except share and per share amounts)

		September 30,				December 31,
		2011				2010
Assets
Cash and cash equivalents		$	623,944			$	609,852
Fixed maturity investments, available for sale, at fair value			4,998,142				5,116,702
Short term investments, available for sale, at fair value			323,119				70,444
Equity securities, available for sale, at fair value			49,323				13,565
Other investments			386,785				376,652
Premiums receivable, net			1,192,455				827,609
Deferred acquisition costs			203,455				154,484
Securities lending collateral			—				59,886
Prepaid reinsurance premiums			204,961				107,977
Losses recoverable			479,132				319,349
Accrued investment income			30,851				32,934
Goodwill and intangible assets			183,857				181,954
Deferred tax assets			40,253				33,684
Receivable on pending investment sales			37,947				602
Other assets			80,013				73,711
Total Assets		$	8,834,237			$	7,979,405
Liabilities
Reserve for losses and loss expenses		$	3,910,537			$	3,319,927
Reserve for unearned premiums			1,299,864				842,154
Net deposit liabilities			28,860				32,505
Securities lending payable			—				59,886
Reinsurance balances payable			244,769				228,860
Debt			528,664				528,411
Payable on pending investment purchases			56,496				—
Other liabilities			129,097				119,509
Total Liabilities			6,198,287				5,131,252
Shareholders’ Equity
Preferred shares
Series A, non-cumulative — 8,000,000 issued and outstanding (2010 — 8,000,000)			8,000				8,000
Series B, non-cumulative — 9,200,000 issued and outstanding (2010 — Nil)			9,200				—
Common shares
40,517,222 issued and outstanding (2010 —47,218,468)			40,517				47,218
Additional paid-in capital			512,323				613,915
Accumulated other comprehensive income			144,004				138,571
Retained earnings			1,921,906				2,040,449
Total Shareholders’ Equity			2,635,950				2,848,153
Total Liabilities and Shareholders’ Equity		$	8,834,237			$	7,979,405
Book Value per Common Share
Dilutive common shares outstanding			42,728,320				50,210,614
Diluted book value per common share[a]		$	51.63			$	52.74

ENDURANCE SPECIALTY HOLDINGS LTD.

CONSOLIDATED STATEMENTS OF (LOSS) INCOME

(in thousands of United States dollars, except share and per share amounts)

		Quarter Ended								For the Nine Months Ended
		September 30,				September 30,				September 30,				September 30,
		2011				2010				2011				2010
Revenues
Gross premiums written		$	700,866			$	555,574			$	2,204,148			$	1,864,011
Net premiums written		$	551,327			$	451,884			$	1,791,957			$	1,605,629
Change in unearned premiums			10,166				17,909				(361,053	)			(314,252	)
Net premiums earned			561,493				469,793				1,430,904				1,291,377
Other underwriting (loss) income			(2,141	)			322				(2,122	)			(2,046	)
Net investment income			14,100				53,654				106,443				143,484
Net realized gains on investment sales			1,033				8,973				26,340				15,174
Total other-than-temporary impairment losses			(168	)			(1,140	)			(1,908	)			(2,647	)
Portion of loss recognized in accumulated other comprehensive income			(72	)			(240	)			(911	)			(586	)
Net impairment losses recognized in earnings			(240	)			(1,380	)			(2,819	)			(3,233	)
Total revenues			574,245				531,362				1,558,746				1,444,756
Expenses
Net losses and loss expenses			456,691				266,132				1,220,514				791,676
Acquisition expenses			72,249				67,443				205,754				198,095
General and administrative expenses			58,574				59,523				190,421				174,164
Amortization of intangibles			2,976				2,588				8,800				7,764
Net foreign exchange gains			(4,085	)			(12,565	)			(7,655	)			(6,465	)
Interest expense			9,055				9,051				27,166				25,709
Total expenses			595,460				392,172				1,645,000				1,190,943
(Loss) Income before income taxes			(21,215	)			139,190				(86,254	)			253,813
Income tax benefit (expense)			1,197				(62	)			19,896				(303	)
Net (loss) income			(20,018	)			139,128				(66,358	)			253,510
Preferred dividends			(8,188	)			(3,875	)			(15,938	)			(11,625	)
Net (loss) income (attributable) available to common and participating common shareholders		$	(28,206	)		$	135,253			$	(82,296	)		$	241,885
Per share data
Basic (losses) earnings per common share		$	(0.71	)		$	2.64			$	(2.07	)		$	4.56
Diluted (losses) earnings per common share		$	(0.71	)		$	2.51			$	(2.07	)		$	4.33

ENDURANCE SPECIALTY HOLDINGS LTD.

RESULTS BY SEGMENT

(in thousands of United States dollars)

		For the quarter ended September 30, 2011
		Insurance				Reinsurance				Totals
Revenues
Gross premiums written		$	450,451			$	250,415			$	700,866
Ceded premiums written			(147,241	)			(2,298	)			(149,539	)
Net premiums written			303,210				248,117				551,327
Net premiums earned			318,602				242,891				561,493
Other underwriting (loss) income			(2,875	)			734				(2,141	)
Total underwriting revenues			315,727				243,625				559,352
Expenses
Net losses and loss expenses			260,206				196,485				456,691
Acquisition expenses			18,738				53,511				72,249
General and administrative expenses			29,328				29,246				58,574
			308,272				279,242				587,514
Underwriting income (loss)		$	7,455			$	(35,617	)		$	(28,162	)
Net loss ratio			81.7	%			81.0	%			81.3	%
Acquisition expense ratio			5.9	%			22.0	%			12.9	%
General and administrative expense ratio			9.2	%			12.0	%			10.4	%
Combined ratio			96.8	%			115.0	%			104.6	%

ENDURANCE SPECIALTY HOLDINGS LTD.

RESULTS BY SEGMENT

(in thousands of United States dollars)

		For the quarter ended September 30, 2010
		Insurance				Reinsurance				Totals
Revenues
Gross premiums written		$	303,561			$	252,013			$	555,574
Ceded premiums written			(99,268	)			(4,422	)			(103,690	)
Net premiums written			204,293				247,591				451,884
Net premiums earned			242,766				227,027				469,793
Other underwriting income (loss)			473				(151	)			322
Total underwriting revenues			243,239				226,876				470,115
Expenses
Net losses and loss expenses			172,015				94,117				266,132
Acquisition expenses			17,356				50,087				67,443
General and administrative expenses			29,256				30,267				59,523
			218,627				174,471				393,098
Underwriting income		$	24,612			$	52,405			$	77,017
Net loss ratio			70.9	%			41.5	%			56.6	%
Acquisition expense ratio			7.1	%			22.1	%			14.4	%
General and administrative expense ratio			12.1	%			13.3	%			12.7	%
Combined ratio			90.1	%			76.9	%			83.7	%

ENDURANCE SPECIALTY HOLDINGS LTD.

RESULTS BY SEGMENT

(in thousands of United States dollars)

		For the nine months ended September 30, 2011
		Insurance				Reinsurance				Totals
Revenues
Gross premiums written		$	1,302,032			$	902,116			$	2,204,148
Ceded premiums written			(393,020	)			(19,171	)			(412,191	)
Net premiums written			909,012				882,945				1,791,957
Net premiums earned			730,491				700,413				1,430,904
Other underwriting (loss) income			(2,875	)			753				(2,122	)
Total underwriting revenues			727,616				701,166				1,428,782
Expenses
Net losses and loss expenses			550,438				670,076				1,220,514
Acquisition expenses			50,907				154,847				205,754
General and administrative expenses			102,361				88,060				190,421
			703,706				912,983				1,616,689
Underwriting income (loss)		$	23,910			$	(211,817	)		$	(187,907	)
Net loss ratio			75.3	%			95.6	%			85.3	%
Acquisition expense ratio			7.0	%			22.1	%			14.4	%
General and administrative expense ratio			14.0	%			12.6	%			13.3	%
Combined ratio			96.3	%			130.3	%			113.0	%

ENDURANCE SPECIALTY HOLDINGS LTD.

RESULTS BY SEGMENT

(in thousands of United States dollars)

		For the nine months ended September 30, 2010
		Insurance				Reinsurance				Totals
Revenues
Gross premiums written		$	999,528			$	864,483			$	1,864,011
Ceded premiums written			(251,307	)			(7,075	)			(258,382	)
Net premiums written			748,221				857,408				1,605,629
Net premiums earned			616,300				675,077				1,291,377
Other underwriting income (loss)			471				(2,517	)			(2,046	)
Total underwriting revenues			616,771				672,560				1,289,331
Expenses
Net losses and loss expenses			428,872				362,804				791,676
Acquisition expenses			51,336				146,759				198,095
General and administrative expenses			86,523				87,641				174,164
			566,731				597,204				1,163,935
Underwriting income		$	50,040			$	75,356			$	125,396
Net loss ratio			69.6	%			53.7	%			61.3	%
Acquisition expense ratio			8.4	%			21.8	%			15.3	%
General and administrative expense ratio			14.0	%			13.0	%			13.5	%
Combined ratio			92.0	%			88.5	%			90.1	%

ENDURANCE SPECIALTY HOLDINGS LTD.

CONSOLIDATED FINANCIAL RATIOS

As Reported

		For the quarter ended September 30
		Insurance								Reinsurance								Total
		2011				2010				2011				2010				2011				2010
Net loss ratio			81.7	%			70.9	%			81.0	%			41.5	%			81.3	%			56.6	%
Acquisition expense ratio			5.9	%			7.1	%			22.0	%			22.1	%			12.9	%			14.4	%
General and administrative expense ratio			9.2	%			12.1	%			12.0	%			13.3	%			10.4	%			12.7	%
Combined ratio			96.8	%			90.1	%			115.0	%			76.9	%			104.6	%			83.7	%

Effect of Prior Year Net Loss Reserve Development

Favorable / (Unfavorable)

		For the quarter ended September 30
		Insurance								Reinsurance								Total
		2011				2010				2011				2010				2011				2010
Net loss ratio			3.9	%			3.9	%			13.2	%			11.3	%			7.9	%			7.5	%

Net of Prior Year Net Loss Reserve Development

		For the quarter ended September 30
		Insurance								Reinsurance								Total
		2011				2010				2011				2010				2011				2010
Net loss ratio			85.6	%			74.8	%			94.2	%			52.8	%			89.2	%			64.1	%
Acquisition expense ratio			5.9	%			7.1	%			22.0	%			22.1	%			12.9	%			14.4	%
General and administrative expense ratio			9.2	%			12.1	%			12.0	%			13.3	%			10.4	%			12.7	%
Combined ratio			100.7	%			94.0	%			128.2	%			88.2	%			112.5	%			91.2	%

The combined ratio is the sum of the loss, acquisition expense and general and administrative expense ratios. Endurance presents the combined ratio as a measure that is commonly recognized as a standard of performance by investors, analysts, rating agencies and other users of its financial information. The combined ratio, excluding prior year net loss reserve development, enables investors, analysts, rating agencies and other users of its financial information to more easily analyze Endurance’s results of underwriting activities in a manner similar to how management analyzes Endurance’s underlying business performance. The combined ratio, net of prior year net loss reserve development, should not be viewed as a substitute for the combined ratio.

ENDURANCE SPECIALTY HOLDINGS LTD.

CONSOLIDATED FINANCIAL RATIOS

As Reported

		For the nine months ended September 30
		Insurance								Reinsurance								Total
		2011				2010				2011				2010				2011				2010
Net loss ratio			75.3	%			69.6	%			95.6	%			53.7	%			85.3	%			61.3	%
Acquisition expense ratio			7.0	%			8.4	%			22.1	%			21.8	%			14.4	%			15.3	%
General and administrative expense ratio			14.0	%			14.0	%			12.6	%			13.0	%			13.3	%			13.5	%
Combined ratio			96.3	%			92.0	%			130.3	%			88.5	%			113.0	%			90.1	%

Effect of Prior Year Net Loss Reserve Development

Favorable / (Unfavorable)

		For the nine months ended September 30
		Insurance								Reinsurance								Total
		2011				2010				2011				2010				2011				2010
Net loss ratio			9.6	%			5.7	%			9.7	%			10.1	%			9.6	%			8.0	%

Net of Prior Year Net Loss Reserve Development

		For the nine months ended September 30
		Insurance								Reinsurance								Total
		2011				2010				2011				2010				2011				2010
Net loss ratio			84.9	%			75.3	%			105.3	%			63.8	%			94.9	%			69.3	%
Acquisition expense ratio			7.0	%			8.4	%			22.1	%			21.8	%			14.4	%			15.3	%
General and administrative expense ratio			14.0	%			14.0	%			12.6	%			13.0	%			13.3	%			13.5	%
Combined ratio			105.9	%			97.7	%			140.0	%			98.6	%			122.6	%			98.1	%

The combined ratio is the sum of the loss, acquisition expense and general and administrative expense ratios. Endurance presents the combined ratio as a measure that is commonly recognized as a standard of performance by investors, analysts, rating agencies and other users of its financial information. The combined ratio, excluding prior year net loss reserve development, enables investors, analysts, rating agencies and other users of its financial information to more easily analyze Endurance’s results of underwriting activities in a manner similar to how management analyzes Endurance’s underlying business performance. The combined ratio, excluding prior year net loss reserve development, should not be viewed as a substitute for the combined ratio.

ENDURANCE SPECIALTY HOLDINGS LTD.

GROSS AND NET PREMIUMS WRITTEN BY SEGMENT

(in thousands of United States dollars)

The following tables show Endurance’s gross and net premiums written for the quarters and nine months ended September 30, 2011 and 2010:

		Quarter Ended								Quarter Ended
		September 30, 2011								September 30, 2010
		Gross Premiums				Net Premiums				Gross Premiums				Net Premiums
		Written				Written				Written				Written
Insurance
Agriculture		$	289,656			$	185,017			$	156,162			$	89,119
Professional lines			39,559				30,812				43,381				38,522
Casualty			57,520				37,664				40,538				23,700
Property			30,049				17,681				30,295				21,366
Healthcare liability			33,652				32,021				34,024				32,393
Workers’ compensation			15				15				(839	)			(807	)
Subtotal Insurance		$	450,451			$	303,210			$	303,561			$	204,293
Reinsurance
Catastrophe		$	46,275			$	43,868			$	45,513			$	41,154
Casualty			56,293				56,292				81,167				81,163
Property			129,203				129,203				111,395				111,395
Aerospace and Marine			5,891				6,002				4,184				4,184
Surety and other specialty			12,753				12,752				9,754				9,695
Subtotal Reinsurance		$	250,415			$	248,117			$	252,013			$	247,591
Total		$	700,866			$	551,327			$	555,574			$	451,884

ENDURANCE SPECIALTY HOLDINGS LTD.

GROSS AND NET PREMIUMS WRITTEN BY SEGMENT

(in thousands of United States dollars)

		Nine Months Ended								Nine Months Ended
		September 30, 2011								September 30, 2010
		Gross Premiums				Net Premiums				Gross Premiums				Net Premiums
		Written				Written				Written				Written
Insurance
Agriculture		$	855,486			$	577,538			$	560,531			$	402,395
Professional lines			124,209				99,560				133,456				115,546
Casualty			159,580				107,234				130,172				82,265
Property			90,643				56,262				99,976				76,404
Healthcare liability			72,243				68,542				76,782				72,947
Workers’ compensation			(129	)			(124	)			(1,389	)			(1,336	)
Subtotal Insurance		$	1,302,032			$	909,012			$	999,528			$	748,221
Reinsurance
Catastrophe		$	330,771			$	314,328			$	291,990			$	287,721
Casualty			218,264				217,463				246,060				245,257
Property			251,475				251,475				215,916				215,916
Aerospace and Marine			53,472				51,567				46,381				44,316
Surety and other specialty			48,134				48,112				64,136				64,198
Subtotal Reinsurance		$	902,116			$	882,945			$	864,483			$	857,408
Total		$	2,204,148			$	1,791,957			$	1,864,011			$	1,605,629

ENDURANCE SPECIALTY HOLDINGS LTD.

RECONCILIATIONS

(in thousands of United States dollars, except share and per share amounts)

The following is a reconciliation of Endurance’s net (loss) income, net (loss) income per diluted common share, net (loss) income allocated to common shareholders under the two-class method and annualized (loss) return on average common equity to operating (loss) income, operating (loss) income per diluted common share, operating (loss) income allocated to common shareholders under the two-class method and annualized operating (loss) return on average common equity (all non-GAAP measures) for the quarters and nine months ended September 30, 2011 and 2010:

		Quarter Ended								Nine Months Ended
		September 30,								September 30,
		2011				2010				2011				2010
Net (loss) income		$	(20,018	)		$	139,128			$	(66,358	)		$	253,510
Add (Less) after-tax items:
Net foreign exchange gains			(4,153	)			(12,433	)			(7,822	)			(6,463	)
Net realized and unrealized investment gains			(775	)			(8,687	)			(25,514	)			(13,004	)
Net impairment losses recognized in earnings			240				1,380				2,819				3,233
Operating (loss) income before preferred dividends		$	(24,706	)		$	119,388			$	(96,875	)		$	237,276
Preferred dividends			(8,188	)			(3,875	)			(15,938	)			(11,625	)
Operating (loss) income (attributable ) available to common and participating common shareholders			(32,894	)		$	115,513				(112,813	)		$	225,651
Operating (loss) income allocated to common shareholders under the two-class method		$	(33,118	)		$	113,404			$	(113,553	)		$	221,390
Weighted average dilutive common shares			39,764,756				52,997,120				40,071,340				54,851,248
Operating (loss) income per diluted common share [b]		$	(0.83	)		$	2.14			$	(2.83	)		$	4.04
Average common equity [a]		$	2,223,113			$	2,681,895			$	2,427,052			$	2,653,484
Operating (loss) return on average common equity			(1.5	)%			4.3	%			(4.6	)%			8.5	%
Annualized operating (loss) return on average common equity			(5.9	)%			17.2	%			(6.2	)%			11.3	%
Net (loss) income		$	(20,018	)		$	139,128			$	(66,358	)		$	253,510
Preferred dividends			(8,188	)			(3,875	)			(15,938	)			(11,625	)
Net (loss) income (attributable) available to common and participating common shareholders		$	(28,206	)		$	135,253			$	(82,296	)		$	241,885
Net (loss) income allocated to common shareholders under the two-class method		$	(28,430	)		$	132,785			$	(83,036	)		$	237,320
Net (loss) income per diluted common share		$	(0.71	)		$	2.51			$	(2.07	)		$	4.33
(Loss) return on average common equity, Net (loss) income			(1.3	)%			5.0	%			(3.4	)%			9.1	%
Annualized (loss) return on average common equity, Net (loss) income			(5.1	)%			20.2	%			(4.5	)%			12.2	%

Operating (loss) income and operating (loss) income per diluted common share are internal performance measures used by Endurance in the management of its operations. Operating (loss) income allocated to common shareholders (excludes unvested restricted shares outstanding which are considered participating) per diluted common share represents operating (loss) income divided by weighted average dilutive common shares, which has been calculated in accordance with the two-class method under U.S. GAAP. Operating (loss) income represents after-tax operational results excluding, as applicable, after-tax net realized capital gains or losses and after-tax net foreign exchange gains or losses because the amount of these gains or losses is heavily influenced by, and fluctuates in part, according to the availability of market opportunities. Endurance believes these amounts are largely independent of its business and underwriting process and including them distorts the analysis of trends in its operations. In addition to presenting net (loss) income and net (loss) income per dilutive common share determined in accordance with the two-class method under GAAP, Endurance believes that showing operating (loss) income and operating (loss) income per dilutive common share enables investors, analysts, rating agencies and other users of its financial information to more easily analyze Endurance’s results of operations in a manner similar to how management analyzes Endurance’s underlying business performance. Operating (loss) income and operating (loss) income per dilutive common share should not be viewed as substitutes for GAAP net (loss) income and net (loss) income per dilutive common share, respectively.

Endurance presents return on equity as a measure that is commonly recognized as a standard of performance by investors, analysts, rating agencies and other users of its financial information.

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