Exhibit 99.1

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

ENDURANCE REPORTS THIRD QUARTER NET INCOME OF $153.8 MILLION, 25.1% ANNUALIZED RETURN ON AVERAGE COMMON EQUITY AND 10.6% INCREASE IN DILUTED BOOK VALUE PER SHARE

PEMBROKE, Bermuda — October 29, 2009 — Endurance Specialty Holdings Ltd. (NYSE:ENH) today reported net income of $153.8 million and $2.51 per diluted common share for the third quarter of 2009 versus a net loss of $99.4 million and $1.79 per diluted common share in the third quarter of 2008.

For the nine months ended September 30, 2009, net income was $381.3 million and $6.15 per diluted common share versus net income of $81.8 million and $1.09 per diluted common share for the nine months ended September 30, 2008.

Operating highlights for the quarter ended September 30, 2009 were as follows:

	•		Net premiums written of $396.7 million, a decrease of 19.7% over the same period in 2008;
	•		Combined ratio of 79.5%, which included 8.1 percentage points of favorable prior year loss reserve development;
	•		Net investment income of $71.6 million, an increase of $44.1 million over the same period in 2008;
	•		Operating income, which excludes after-tax realized investment gains and losses and foreign exchange gains and losses, of $148.1 million and $2.41 per diluted common share; and
	•		Operating return on average common equity for the quarter of 6.0%, or 24.1% on an annualized basis.

Operating highlights for the nine months ended September 30, 2009 were as follows:

	•		Net premiums written of $1,459.6 million, a decrease of 9.0% over the same period in 2008;
	•		Combined ratio of 86.9%, which included 8.9 percentage points of favorable prior year loss reserve development;
	•		Net investment income of $224.9 million, an increase of $90.2 million over the same period in 2008;
	•		Operating income, which excludes after-tax realized investment gains and losses and foreign exchange gains and losses, of $367.0 million and $5.91 per diluted common share;
	•		Operating return on average common equity for the first nine months of the year of 15.7%, or 21.0% on an annualized basis; and
	•		Book value of $42.09 per diluted common share, up 27.3% from December 31, 2008.

Kenneth J. LeStrange, Chairman and Chief Executive Officer, commented, “I am extremely pleased that Endurance has delivered another quarter of excellent operating results and robust growth in book value per share. Our strong results highlight the quality of our underwriting and investment activities and careful and conscientious risk management practices. Although market conditions remain competitive, we are committed to maintaining our underwriting discipline and we are well positioned strategically and financially to capitalize on attractive underwriting opportunities.”

Insurance Segment

Operating highlights for Endurance’s Insurance segment for the quarter ended September 30, 2009 were as follows:

	•		Net premiums written of $175.7 million, a decrease of 29.3% from the third quarter of 2008;
	•		Combined ratio of 98.7%, an increase of 6.1 percentage points from the third quarter of 2008; and
	•		Favorable prior year loss reserve development of 6.1 percentage points during the current period, compared to 6.4 percentage points of favorable prior year loss reserve development in the third quarter of 2008.

Operating highlights for Endurance’s Insurance segment for the nine months ended September 30, 2009 were as follows:

	•		Net premiums written of $651.9 million, a decrease of 22.3% from the same period in 2008;
	•		Combined ratio of 93.4%, an improvement of 4.2 percentage points from the same period in 2008; and
	•		Favorable prior year loss reserve development of 11.2 percentage points during the current period, compared to 6.8 percentage points of favorable prior year loss reserve development in the same period in 2008.

Net premiums written declined in the Insurance segment for the current periods compared to the same periods in 2008, driven by reductions in the workers’ compensation, property and agriculture lines. The reduction in the workers’ compensation and property net premiums written was due to the Company’s strategic exit from the California workers’ compensation and U.K. property insurance markets in the first quarter of 2009. In the third quarter and first nine months of 2008, these lines contributed $43.4 million and $202.9 million of net written premiums, respectively. The reduction in agriculture net premiums written was a result of lower commodity prices compared to a year ago. Partially offsetting these declines was modest growth in net premiums written in the professional, casualty and healthcare lines of business in the three months ended September 30, 2009 compared to the same period last year, which resulted from expanded underwriting capabilities and increased market penetration.

The increase in the Insurance segment combined ratio in the third quarter of 2009 compared to 2008 was driven by higher general and administrative expense and net loss ratios. The general and administrative expense ratio increased 4.0 percentage points partly as a result of reductions in net earned premiums and third party commissions and expense reimbursement offsets, primarily in the agriculture line. In addition, the Company continued in the third quarter of 2009 to make strategic employee additions in its agriculture and other U.S. specialty insurance operations. The net loss ratio increased by 2.1 percentage points primarily due to higher provisions for losses incurred but not reported in the 2009 accident year in the Company’s recently exited California workers’ compensation line, reflecting the Company’s cautious view of industry trends and potential claim cost changes.

For the nine months ended September 30, 2009, the Insurance segment combined ratio improved compared to the same period in 2008 due to increased levels of favorable prior year loss reserve development. Favorable loss reserve development emerged in both the third quarter and first nine months of 2009 across each of the short tailed, long tailed and other lines of business in the Insurance segment as claims did not develop as originally estimated.

Reinsurance Segment

Operating highlights for Endurance’s Reinsurance segment for the quarter ended September 30, 2009 were as follows:

	•		Net premiums written of $221.0 million, a decrease of 10.0% from the third quarter of 2008;
	•		Combined ratio of 57.4%, an improvement of 77.8 percentage points from the third quarter of 2008; and
	•		Favorable prior year loss reserve development of 10.3 percentage points during the current period, compared to 0.5 percentage points of favorable prior year loss reserve development in the third quarter of 2008.

Operating highlights for Endurance’s Reinsurance segment for the nine months ended September 30, 2009 were as follows:

	•		Net premiums written of $807.7 million, an increase of 5.6% from the same period in 2008;
	•		Combined ratio of 80.1%, an improvement of 15.7 percentage points from the same period in 2008; and
	•		Favorable prior year loss reserve development of 6.4 percentage points during the current period, compared to 10.6 percentage points of favorable prior year loss reserve development in the same period in 2008.

The decrease in net premiums written in the Reinsurance segment during the third quarter of 2009 resulted primarily from the absence of reinstatement premiums in the catastrophe line of business which were recorded in the third quarter of 2008 as a result of Hurricanes Ike and Gustav. This decline was partially offset by an increase in net premiums written in the Reinsurance segment’s casualty line, which was primarily driven by favorable prior period premium adjustments. The remaining lines of business within the Reinsurance segment posted modest net premium changes from a year ago.

The combined ratios in the Reinsurance segment for the current periods decreased from the same periods a year ago due to the absence of catastrophe events and favorable claims trends. Partially offsetting the decrease in the net loss ratio in the nine months ended September 30, 2009 was the recognition of less favorable prior year loss reserve development compared to the same period in 2008.

The decrease in the net loss ratio for the third quarter of 2009 was partially offset by increases in the current period’s acquisition expense ratio compared to the same period in 2008 primarily due to higher profit commissions in the property line. The general and administrative expense ratio also increased in the current period largely due to lower net earned premiums year over year.

Investments

Endurance’s net investment income increased 161.1% or $44.1 million for the quarter ended September 30, 2009 and 66.9% or $90.2 million for the nine months ended September 30, 2009 as compared to the same periods in 2008. During the third quarter and nine months ended September 30, 2009, Endurance’s net investment income included gains of $30.4 million and $81.3 million on its alternative investments and high yield loan funds included in other investments, as compared to losses of $32.8 million and $49.4 million in the third quarter and first nine months of 2008. Investment income generated from Endurance’s fixed maturity investments decreased by $19.1 million and $37.3 million for the three and nine months ended September 30, 2009 compared to the same periods in 2008 due to lower reinvestment rates during the current periods and a higher allocation of investments to cash, cash equivalents and short duration securities. For the same reasons, the ending book yield on Endurance’s fixed maturity investments at September 30, 2009 was 3.35%, down from 4.45% at December 31, 2008.

At September 30, 2009, Endurance’s fixed maturity portfolio, which comprises approximately 94.0% of Endurance’s investments, maintained an average credit quality of AAA. Endurance’s fixed maturity portfolio was in an unrealized gain position of $39.2 million at September 30, 2009, an improvement of $120.3 million in the third quarter and $199.1 million in the first nine months of 2009 (an improvement of $174.0 million in the first nine months of 2009 after adjusting for a change in accounting policy related to the recognition and presentation of other-than-temporary impairments (“OTTI”) which Endurance adopted in the second quarter of 2009). Endurance recorded net realized gains on investment sales of $1.4 million and $3.1 million during the third quarter and first nine months of 2009 compared to net realized investment losses of $7.6 million and $4.5 million during the same periods in 2008.

Endurance recorded $0.5 million of OTTI on its debt securities in the third quarter of 2009. All of the OTTI recorded by Endurance in the third quarter of 2009 was determined to relate to specific credit events and recorded in earnings.

Endurance ended the third quarter of 2009 with cash and invested assets of $6.2 billion, which represents a 15.2% increase from December 31, 2008. Net operating cash flow was $431.2 million for the nine months ended September 30, 2009 versus $457.7 million for the same period in 2008.

Capitalization and Shareholders’ Equity

At September 30, 2009, Endurance’s shareholders’ equity was $2.7 billion or $42.09 per diluted common share versus $2.2 billion or $33.06 per diluted common share at December 31, 2008. During the three months ended September 30, 2009, Endurance repurchased 792,698 of its common shares and share equivalents in private and open market transactions for an aggregate repurchase price of $26.6 million. Year-to-date, Endurance has repurchased 1.8 million shares and share equivalents in private and open market transactions for an aggregate repurchase price of $52.4 million.

Earnings Call

Endurance will host a conference call on October 30, 2009 at 8:30 a.m. Eastern time to discuss its financial results. The conference call can be accessed via telephone by dialing (877) 672-9216 or (706) 634-9637 (international) and entering pass code: 68800643. 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 13, 2009 by dialing (800) 642-1687 or (706) 645-9291 (international) and entering the pass code: 68800643.

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 2009 will be available on Endurance’s website at www.endurance.bm shortly after the release of earnings.

Operating income (loss), operating return on average common equity, operating income (loss) per dilutive common share, operating income (loss) 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 and professional lines of insurance and property, catastrophe, casualty, agriculture, aerospace and marine, 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 & Poor’s. 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 “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, developments in the world’s financial and capital markets that could adversely affect the performance of Endurance’s investment portfolio or access to capital, changes in the composition of Endurance’s investment portfolio, competition, possible terrorism or the outbreak of war, the frequency or severity of unpredictable catastrophic events, changes in demand for insurance or reinsurance, rating agency actions, uncertainties in our reserving process, a change in our tax status, acceptance of our products, the availability of reinsurance or retrocessional coverage, retention of key personnel, political conditions, the impact of current regulatory investigations, changes in accounting policies, changes in general economic conditions and other factors described in our Annual Report on Form 10-K for the year ended December 31, 2008 as amended on May 8, 2009.

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.
CONSOLIDATED BALANCE SHEETS
(in thousands of United States dollars, except share and per share amounts)

		September 30,				December 31,
		2009				2008
Assets
Cash and cash equivalents		$	614,437			$	1,061,994
Fixed maturity investments, available for sale, at fair value			4,494,429				3,875,137
Short term investments, available for sale, at fair value			712,618				111,333
Preferred equity securities, available for sale, at fair value			15,535				25,360
Other investments			335,498				284,263
Premiums receivable, net			828,316				609,387
Deferred acquisition costs			181,018				160,870
Securities lending collateral			113,499				112,940
Prepaid reinsurance premiums			169,097				149,591
Losses recoverable			454,972				557,834
Accrued investment income			27,826				30,872
Goodwill and intangible assets			194,033				200,791
Deferred tax assets			16,142				20,691
Receivable on pending investment sales			326,133				3,104
Other assets			73,728				68,303
Total Assets		$	8,557,281			$	7,272,470
Liabilities
Reserve for losses and loss expenses		$	3,241,244			$	3,235,456
Reserve for unearned premiums			1,127,834				885,488
Net deposit liabilities			47,338				58,622
Securities lending payable			113,717				115,603
Reinsurance balances payable			263,170				233,561
Debt			447,485				447,468
Payable on pending investment purchases			504,587				9
Other liabilities			103,556				88,980
Total Liabilities			5,848,931				5,065,187
Shareholders’ Equity
Preferred shares
Series A, non-cumulative — 8,000,000 issued and outstanding (2008 — 8,000,000)			8,000				8,000
Common shares
56,716,431 issued and outstanding (2008 — 57,203,454)			56,716				57,203
Additional paid-in capital			986,701				1,029,363
Accumulated other comprehensive income (loss)			51,541				(132,665	)
Retained earnings			1,605,392				1,245,382
Total Shareholders’ Equity			2,708,350				2,207,283
Total Liabilities and Shareholders’ Equity		$	8,557,281			$	7,272,470
Book Value per Common Share
Dilutive common shares outstanding			59,599,192				60,718,312
Diluted book value per common share[a]		$	42.09			$	33.06

ENDURANCE SPECIALTY HOLDINGS LTD.

CONSOLIDATED STATEMENTS OF INCOME (LOSS)

(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,
		2009				2008				2009				2008
Revenues
Gross premiums written		$	469,622			$	624,144			$	1,812,083			$	2,010,798
Net premiums written		$	396,666			$	494,023			$	1,459,608			$	1,604,195
Change in unearned premiums			30,088				15,606				(220,359	)			(269,438	)
Net premiums earned			426,754				509,629				1,239,249				1,334,757
Other underwriting income (loss)			5				(2,712	)			4,198				(1,519	)
Net investment income			71,559				27,410				224,943				134,770
Net realized gains (losses) on investment sales			1,396				(7,574	)			3,137				(4,527	)
Total other-than-temporary impairment losses			(497	)			(22,495	)			(50,432	)			(41,039	)
Portion of loss recognized in accumulated other comprehensive income			—				—				31,165				—
Net impairment losses recognized in earnings(1)			(497	)			(22,495	)			(19,267	)			(41,039	)
Total revenues			499,217				504,258				1,452,260				1,422,442
Expenses
Losses and loss expenses			211,683				445,501				702,635				910,328
Acquisition expenses			63,026				70,598				195,150				220,608
General and administrative expenses			64,436				57,771				179,222				160,308
Amortization of intangibles			2,588				2,588				7,764				7,913
Net foreign exchange (gains) losses			(2,963	)			15,477				(30,748	)			12,963
Interest expense			7,540				7,535				22,633				22,603
Total expenses			346,310				599,470				1,076,656				1,334,723
Income (loss) before income taxes			152,907				(95,212	)			375,604				87,719
Income tax benefit (expense)			935				(4,180	)			5,675				(5,962	)
Net income (loss)			153,842				(99,392	)			381,279				81,757
Preferred dividends			(3,875	)			(3,875	)			(11,625	)			(11,625	)
Net income (loss) available to common and participating common shareholders		$	149,967			$	(103,267	)		$	369,654			$	70,132
Per share data
Basic earnings (loss) per common share(2)		$	2.63			$	(1.76	)		$	6.46			$	1.18
Diluted earnings (loss) per common share(2)		$	2.51			$	(1.79	)		$	6.15			$	1.09

ENDURANCE SPECIALTY HOLDINGS LTD.

RESULTS BY SEGMENT

(in thousands of United States dollars)

		For the quarter ended September 30, 2009
										Total
										Company				Deposit				Reported
		Insurance				Reinsurance				Subtotal				Accounting(1)				Totals
Revenues
Gross premiums written		$	248,673			$	220,460			$	469,133			$	489			$	469,622
Ceded premiums written			(72,987	)			31				(72,956	)			—				(72,956	)
Net premiums written			175,686				220,491				396,177				489				396,666
Net premiums earned			228,290				198,527				426,817				(63	)			426,754
Other underwriting income			382				—				382				(377	)			5
Total underwriting revenues			228,672				198,527				427,199				(440	)			426,759
Expenses
Net losses and loss expenses			168,861				43,714				212,575				(892	)			211,683
Acquisition expenses			20,409				42,388				62,797				229				63,026
General and administrative expenses			36,015				28,421				64,436				—				64,436
			225,285				114,523				339,808				(663	)			339,145
Underwriting income		$	3,387			$	84,004			$	87,391			$	223			$	87,614
Net loss ratio			74.0	%			22.0	%			49.8	%							49.6	%
Acquisition expense ratio			8.9	%			21.4	%			14.7	%							14.8	%
General and administrative expense ratio			15.8	%			14.3	%			15.1	%							15.1	%
Combined ratio			98.7	%			57.7	%			79.6	%							79.5	%

ENDURANCE SPECIALTY HOLDINGS LTD.

RESULTS BY SEGMENT

(in thousands of United States dollars)

		For the quarter ended September 30, 2008
										Total Company				Deposit				Reported
		Insurance				Reinsurance				Subtotal				Accounting (1)				Totals
Revenues
Gross premiums written		$	372,936			$	251,228			$	624,164			$	(20	)		$	624,144
Ceded premiums written			(124,335	)			(5,786	)			(130,121	)			—				(130,121	)
Net premiums written			248,601				245,442				494,043				(20	)			494,023
Net premiums earned			270,298				240,975				511,273				(1,644	)			509,629
Other underwriting loss			—				—				—				(2,712	)			(2,712	)
Total underwriting revenues			270,298				240,975				511,273				(4,356	)			506,917
Expenses
Net losses and loss expenses			194,477				257,512				451,989				(6,488	)			445,501
Acquisition expenses			24,065				44,528				68,593				2,005				70,598
General and administrative expenses			31,675				26,096				57,771				—				57,771
			250,217				328,136				578,353				(4,483	)			573,870
Underwriting income (loss)		$	20,081			$	(87,161	)		$	(67,080	)		$	127			$	(66,953	)
Net loss ratio			71.9	%			106.9	%			88.4	%							87.4	%
Acquisition expense ratio			8.9	%			18.5	%			13.4	%							13.8	%
General and administrative expense ratio			11.8	%			10.8	%			11.3	%							11.4	%
Combined ratio			92.6	%			136.2	%			113.1	%							112.6	%

ENDURANCE SPECIALTY HOLDINGS LTD.

RESULTS BY SEGMENT

(in thousands of United States dollars)

		For the nine months ended September 30, 2009
										Total Company				Deposit				Reported
		Insurance				Reinsurance				Subtotal				Accounting(1)				Totals
Revenues
Gross premiums written		$	1,001,679			$	812,431			$	1,814,110			$	(2,027	)		$	1,812,083
Ceded premiums written			(349,801	)			(2,674	)			(352,475	)			—				(352,475	)
Net premiums written			651,878				809,757				1,461,635				(2,027	)			1,459,608
Net premiums earned			632,552				608,455				1,241,007				(1,758	)			1,239,249
Other underwriting income			3,444				—				3,444				754				4,198
Total underwriting revenues			635,996				608,455				1,244,451				(1,004	)			1,243,447
Expenses
Net losses and loss expenses			433,711				270,980				704,691				(2,056	)			702,635
Acquisition expenses			66,105				127,956				194,061				1,089				195,150
General and administrative expenses			90,953				88,269				179,222				—				179,222
			590,769				487,205				1,077,974				(967	)			1,077,007
Underwriting income (loss)		$	45,227			$	121,250			$	166,477			$	(37	)		$	166,440
Net loss ratio			68.6	%			44.6	%			56.8	%							56.7	%
Acquisition expense ratio			10.4	%			21.0	%			15.6	%							15.7	%
General and administrative expense ratio			14.4	%			14.5	%			14.5	%							14.5	%
Combined ratio			93.4	%			80.1	%			86.9	%							86.9	%

ENDURANCE SPECIALTY HOLDINGS LTD.

RESULTS BY SEGMENT

(in thousands of United States dollars)

		For the nine months ended September 30, 2008
										Total Company				Deposit				Reported
		Insurance				Reinsurance				Subtotal				Accounting(1)				Totals
Revenues
Gross premiums written		$	1,230,043			$	783,092			$	2,013,135			$	(2,337	)		$	2,010,798
Ceded premiums written			(390,911	)			(15,692	)			(406,603	)			—				(406,603	)
Net premiums written			839,132				767,400				1,606,532				(2,337	)			1,604,195
Net premiums earned			683,662				656,712				1,340,374				(5,617	)			1,334,757
Other underwriting loss			—				—				—				(1,519	)			(1,519	)
Total underwriting revenues			683,662				656,712				1,340,374				(7,136	)			1,333,238
Expenses
Net losses and loss expenses			513,598				405,451				919,049				(8,721	)			910,328
Acquisition expenses			76,182				143,184				219,366				1,242				220,608
General and administrative expenses			77,308				83,000				160,308				—				160,308
			667,088				631,635				1,298,723				(7,479	)			1,291,244
Underwriting income		$	16,574			$	25,077			$	41,651			$	343			$	41,994
Net loss ratio			75.1	%			61.7	%			68.6	%							68.2	%
Acquisition expense ratio			11.2	%			21.8	%			16.4	%							16.5	%
General and administrative expense ratio			11.3	%			12.7	%			11.9	%							12.0	%
Combined ratio			97.6	%			96.2	%			96.9	%							96.7	%

ENDURANCE SPECIALTY HOLDINGS LTD.

CONSOLIDATED FINANCIAL RATIOS

As Reported

		For the quarter ended September 30
		Insurance								Reinsurance								Total
		2009				2008				2009				2008				2009				2008
Net loss ratio			74.0	%			71.9	%			21.6	%			104.9	%			49.6	%			87.4	%
Acquisition expense ratio			8.9	%			8.9	%			21.5	%			19.4	%			14.8	%			13.8	%
General and administrative expense ratio			15.8	%			11.8	%			14.3	%			10.9	%			15.1	%			11.4	%
Combined ratio			98.7	%			92.6	%			57.4	%			135.2	%			79.5	%			112.6	%

Effect of Prior Year Net Loss Reserve Development

Favorable / (Unfavorable)

		For the quarter ended September 30
		Insurance								Reinsurance								Total
		2009				2008				2009				2008				2009				2008
Net loss ratio			6.1	%			6.4	%			10.3	%			0.5	%			8.1	%			3.6	%

Net of Prior Year Net Loss Reserve Development

		For the quarter ended September 30
		Insurance								Reinsurance								Total
		2009				2008				2009				2008				2009				2008
Net loss ratio			80.1	%			78.3	%			31.9	%			105.4	%			57.7	%			91.0	%
Acquisition expense ratio			8.9	%			8.9	%			21.5	%			19.4	%			14.8	%			13.8	%
General and administrative expense ratio			15.8	%			11.8	%			14.3	%			10.9	%			15.1	%			11.4	%
Combined ratio			104.8	%			99.0	%			67.7	%			135.7	%			87.6	%			116.2	%

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
		2009				2008				2009				2008				2009				2008
Net loss ratio			68.6	%			75.1	%			44.3	%			60.9	%			56.7	%			68.2	%
Acquisition expense ratio			10.4	%			11.2	%			21.3	%			22.2	%			15.7	%			16.5	%
General and administrative expense ratio			14.4	%			11.3	%			14.5	%			12.7	%			14.5	%			12.0	%
Combined ratio			93.4	%			97.6	%			80.1	%			95.8	%			86.9	%			96.7	%

Effect of Prior Year Net Loss Reserve Development

Favorable / (Unfavorable)

		For the nine months ended September 30
		Insurance								Reinsurance								Total
		2009				2008				2009				2008				2009				2008
Net loss ratio			11.2	%			6.8	%			6.4	%			10.6	%			8.9	%			8.7	%

Net of Prior Year Net Loss Reserve Development

		For the nine months ended September 30
		Insurance								Reinsurance								Total
		2009				2008				2009				2008				2009				2008
Net loss ratio			79.8	%			81.9	%			50.7	%			71.5	%			65.6	%			76.9	%
Acquisition expense ratio			10.4	%			11.2	%			21.3	%			22.2	%			15.7	%			16.5	%
General and administrative expense ratio			14.4	%			11.3	%			14.5	%			12.7	%			14.5	%			12.0	%
Combined ratio			104.6	%			104.4	%			86.5	%			106.4	%			95.8	%			105.4	%

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.

RECONCILIATION

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, 2009 and 2008:

		Quarter Ended								Quarter Ended
		September 30, 2009								September 30, 2008
		Gross				Net				Gross				Net
		Premiums				Premiums				Premiums				Premiums
		Written				Written				Written				Written
Insurance
Property		$	30,307			$	13,467			$	35,574			$	20,901
Casualty			39,671				25,025				29,196				18,141
Healthcare liability			30,390				29,075				28,010				27,636
Workers’ compensation			(2,384	)			(2,291	)			41,709				37,685
Agriculture			104,021				71,767				195,852				109,159
Professional lines			46,668				38,643				42,595				35,079
Subtotal Insurance		$	248,673			$	175,686			$	372,936			$	248,601
Reinsurance
Casualty		$	61,394			$	61,387			$	53,914			$	53,912
Property			115,342				115,342				113,080				113,081
Catastrophe			31,637				31,637				65,825				60,699
Agriculture			1,014				1,014				3,452				3,769
Aerospace and Marine			7,185				7,170				9,814				8,838
Surety and other specialty			4,377				4,430				5,123				5,123
Subtotal Reinsurance		$	220,949			$	220,980			$	251,208			$	245,422
Total		$	469,622			$	396,666			$	624,144			$	494,023

ENDURANCE SPECIALTY HOLDINGS LTD.

RECONCILIATION

GROSS AND NET PREMIUMS WRITTEN BY SEGMENT

(in thousands of United States dollars)

		Nine Months Ended								Nine Months Ended
		September 30, 2009								September 30, 2008
		Gross Premiums				Net Premiums				Gross Premiums				Net Premiums
		Written				Written				Written				Written
Insurance
Property		$	98,142			$	53,079			$	119,116			$	72,545
Casualty			120,900				71,196				93,058				68,207
Healthcare liability			73,305				69,155				69,987				69,297
Workers’ compensation			26,782				12,030				195,076				177,072
Agriculture			538,666				323,783				660,193				375,752
Professional lines			143,884				122,635				92,613				76,259
Subtotal Insurance		$	1,001,679			$	651,878			$	1,230,043			$	839,132
Reinsurance
Casualty		$	220,599			$	220,361			$	159,136			$	160,365
Property			205,375				205,375				182,302				182,275
Catastrophe			289,465				289,465				301,277				288,085
Agriculture			8,790				8,790				20,185				19,868
Aerospace and Marine			42,980				40,840				70,600				67,381
Surety and other Specialty			43,195				42,899				47,255				47,089
Subtotal Reinsurance		$	810,404			$	807,730			$	780,755			$	765,063
Total		$	1,812,083			$	1,459,608			$	2,010,798			$	1,604,195

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 income, net income (loss) per diluted common share, net income (loss) allocated to common shareholders under the two-class method and annualized return on average common equity to operating income (loss), operating income (loss) per diluted common share, operating income (loss) allocated to common shareholders under the two-class method and operating return on average common equity (all non-GAAP measures) for the quarters and nine months ended September 30, 2009 and 2008:

		Quarter Ended								Nine Months Ended
		September 30,								September 30,
		2009				2008				2009				2008
Net income (loss)		$	153,842			$	(99,392	)		$	381,279			$	81,757
(Less) Add after-tax items:
Net foreign exchange (gains) losses			(3,634	)			15,400				(30,488	)			12,798
Net realized (gains) losses on investment sales			(2,641	)			5,439				(3,019	)			2,417
Net impairment losses recognized in earnings			497				22,495				19,267				41,039
Operating income (loss) before preferred dividends		$	148,064			$	(56,058	)		$	367,039			$	138,011
Preferred dividends			(3,875	)			(3,875	)			(11,625	)			(11,625	)
Operating income (loss) available (attributable) to common and participating common shareholders		$	144,189			$	(59,933	)		$	355,414			$	126,386
Operating income (loss) allocated to common shareholders under the two-class method		$	141,764			$	(58,739	)		$	349,005			$	123,934
Weighted average dilutive common shares			58,781,987				57,569,606				59,019,716				63,025,068
Operating income (loss) per diluted common share		$	2.41			$	(1.04)	[b]		$	5.91			$	1.97
Average common equity [a]		$	2,391,974			$	2,201,306			$	2,257,817			$	2,190,488
Operating return on average common equity			6.0	%			(2.7	%)			15.7	%			5.8	%
Annualized operating return on average common equity			24.1	%			(10.9	%)			21.0	%			7.7	%
Net income (loss)		$	153,842			$	(99,392	)		$	381,279			$	81,757
Preferred dividends			(3,875	)			(3,875	)			(11,625	)			(11,625	)
Net income (loss) available (attributable) to common and participating common shareholders		$	149,967			$	(103,267	)		$	369,654			$	70,132
Net income (loss) allocated to common shareholders under the two-class method		$	147,446			$	(101,210	)		$	362,989			$	68,742
Net income (loss) per diluted common share		$	2.51			$	(1.79)	[b]		$	6.15			$	1.09
Return on average common equity, Net income (loss)			6.3	%			(4.7	%)			16.4.	%			3.2	%
Annualized return on average common equity, Net income (loss)			25.1	%			(18.8	%)			21.8	%			4.3	%