Bermuda-based Endurance Specialty Holdings yesterday posted third-quarter profits of $43.6 million, as acquisition expenses hit earnings.

The company said last night it recorded $64 million in one-time transaction and integration expenses associated with the buyout of Montpelier in the third quarter.

Net income — equivalent to 73 cents per share — was down $24.4 million on the $698 million reported for the same quarter of 2014.

John Charman, chairman and chief executive officer of the insurance and reinsurance firm, said: “Against a backdrop of relentless global competition coupled with extremely challenging investment market conditions, I am very pleased with our ability to generate an attractive third quarter annualises operation return on equity, excluding one time acquisition costs of 12.3 per cent.

“Our strong results ably reflect the high quality of our underwriting and risk management, our ongoing expense discipline, as well as the benefits arising from a globally-diversified specialty insurance and reinsurance platform.”

Endurance completed its acquisition of Montpelier at the end of the second quarter.

Mr Charman said: “In the third quarter, we also completely integrated Montpelier’s global staff and operations into our Endurance and we are highly confident in our ability to materially exceed our originally planned expense savings.

“With the powerful combination of our two companies, we are very well positioned within the global marketplace to better serve our valued clients and distribution partners with both increased capacity and a larger, more diversified product offering across our wide distribution network.”

And Mr Charman added: “The absolute transformation of Endurance over the last three years uniquely positions us to generate continuous superior value for our shareholders despite the challenging market conditions.”

Endurance reported gross premiums written of $642.6 million for the quarter, up 2.6 per cent on the same period last year.

Net investment income totalled $16.5 million, a decrease of $8.8 million on the corresponding quarter of 2014.