Profile: Endurance Specialty Holdings Ltd. (ENH)

Endurance Specialty Holdings Ltd. (Endurance Holdings) is a holding company. Through its operating subsidiaries based in Bermuda, the United Kingdom and the United States, the Company underwrites specialty lines of personal and commercial property and casualty insurance and reinsurance on a global basis. The Company’s portfolio of specialty lines of business is organized into two business segments: Insurance and Reinsurance. As of December 31, 2008, Endurance Holdings’ seven wholly owned operating subsidiaries are Endurance Bermuda, Endurance Worldwide Insurance Limited (Endurance U.K.), Endurance Reinsurance Corporation of America (Endurance U.S. Reinsurance), Endurance American Insurance Company (Endurance American), Endurance American Specialty Insurance Company (Endurance American Specialty), American Merchants Casualty Company (American Merchants) and American Agri-Business Insurance Company (ARMtech).

Insurance

The Company’s Insurance segment consists of six lines of business: property, casualty, healthcare liability, workers’ compensation, agriculture and professional lines. Its property insurance line of business consists of insured properties with values to require multiple insurers and reinsurers to accommodate their insurance capacity needs. The properties insured are of a commercial nature and are spread across a variety of industries, such as real estate, retail, manufacturing, chemicals, financial services, utilities, telecommunications, construction, civil engineering and municipalities/institutions.

Endurance Holdings’ casualty insurance line of business provides third party liability insurance for a range of industry groups. In addition, it writes casualty insurance that targets middle market companies at lower attachment points for real estate, manufacturing, chemicals, financial, utilities, telecommunications, construction and other industries. The Company’s healthcare liability line of business is focused on excess hospital medical professional liability insurance. Its workers’ compensation insurance line is primarily focused on markets in the United States. ARMtech focuses on traditional multiple peril crop insurance, crop hail, livestock risk protection and other agriculture risk management products, all offered through independent agents.

The professional lines insurance business includes directors’ and officers’ liability, errors and omissions, employment practices liability, environmental liability and pension trust liability insurance and includes both non-profit and for-profit entities representing a wide range of industry groups.

Reinsurance

Endurance Holdings’ Reinsurance segment consists of seven lines of business: casualty, property, catastrophe, agriculture, aerospace and marine and surety and other specialty. Its casualty reinsurance business line reinsures third party liability exposures from ceding companies on a treaty basis, such as automobile liability, professional liability, directors’ and officers’ liability, umbrella liability and workers’ compensation. Property reinsurance reinsures individual property insurance policies issued by the Company’s ceding company clients, including both personal lines and commercial exposures (principally covering buildings, structures, equipment, contents and time element coverages on a treaty basis).

The Company’s catastrophe reinsurance business line reinsures catastrophic perils for ceding companies on a treaty basis. The principal perils reinsured in its catastrophe reinsurance business include hurricanes, typhoons, earthquakes, floods, tornados, hail and fire, as well as certain workers’ compensation coverages. Its agriculture reinsurance business line reinsures risks associated with the production of food and fiber on a global basis. Endurance Holdings’ aerospace line of business consists of the reinsurance of aviation and space businesses. The aviation business includes hull, aircraft liability and aircraft products coverages. The space business includes satellite launch and in-orbit coverage.

The Company’s marine line of business consists of the reinsurance of bluewater hull, brownwater hull and cargo insurance business. The Company provides surety reinsurance for contract and commercial surety, as well as for the fidelity line of business on both a proportional and excess of loss basis. Its remaining business in this line represents a variety of contracts, such as personal accident and terrorism, which are underwritten utilizing the expertise of our senior underwriting staff.

The Company competes with ACE Ltd., American International Group, Arch Capital Group Ltd., Factory Mutual Insurance Company, RLI Corp., Axis Capital Holdings Group, Zurich Financial Services Group, XL Capital Ltd., Allied World Assurance Company, CNA Financial Corporation, Rural Community Insurance Company, Rain and Hail LLC, NAU Country Insurance Company, Great American Insurance Company, Producers Agriculture Insurance Company, Allianz AG, Lloyd’s Syndicates, Royal & Sun Alliance Insurance Group Plc, XL Zurich, AWAC, Ironshore, Inc., General Re Corporation, Munchener Ruckversicherungs-Gesellschaft Aktiengesellschaft, Partner Reinsurance Company Ltd., Swiss Reinsurance Company, Transatlantic Reinsurance Company, Hannover Ruckversicherungs-Aktiengesellschaft, SCOR Reinsurance Company, Everest Re and Odyssey Re, IPC Holdings Ltd., Montpelier Re Holdings Ltd., Renaissance Reinsurance Ltd.