Bermuda-based Endurance Specialty Holdings reported a $74.4 million profit for the first quarter of 2012, citing improving market conditions.The reinsurer’s net income of $1.72 per share for the first quarter of 2012 compares to a loss of $91.3 million and $2.25 per share during the same period last year.Operating earnings were $53.3 million, or $1.23 per share, comfortably beating the 94 cents estimate of analysts polled by YahooFinance.Underwriting operations were profitable with a combined ratio of 96.5 percent, which included 4.1 percentage points of favourable prior year loss reserve development and 5.5 percentage points of catastrophe losses from 2012 events.CEO David Cash cited strong January 1 renewals and double-digit policy growth in certain lines of business.“The first quarter was a good start to the year with strong earnings, growth in book value, and improving market conditions,” he said.“Within our agriculture insurance line of business, we achieved double-digit policy count growth, with increased penetration in attractive Midwestern states. Our reinsurance business had a strong January 1st renewal, achieving robust renewal retentions, solid organic growth in our developing international reinsurance units, and an improved catastrophe portfolio with higher pricing and reduced exposures.“Our efforts have positioned us well as we continue to enhance our diversified portfolio of speciality risks in 2012.”Endurance wrote more business in the first quarter of 2012, recording gross premiums written of $1.06 million compared to $1 million the first quarter of 2011, primarily driven by the reinsurance segment.Net investment income was $57.1 million, an increase of $4.6 million from a year earlier.Endurance ended the quarter with diluted book value per share of $51.90, an increase of 2.7 percent from December 31, 2011.Endurance’s shareholders’ equity was $2.68 billion, or $51.90 per share, versus $2.61 billion, or $50.56 per share, at December 31, 2011. At the quarter end, Endurance declared and paid common dividends of $0.31 per share.