Endurance Specialty Holdings Ltd. last night announced record net income of more than $536 million.

The re/insurer posted net income of $154.8 million, or $2.56 per share, for the fourth quarter versus $16.9 million, or 22 cents per share, for the same period in 2008.

For the year ended December 31, 2009, net income was a record $536.1 million, or $8.69 per share, compared to $98.6 million, or $1.31 per share, for the year ended December 31, 2008.

Meanwhile gross premiums written were down at $209.4 million from $235.6 million over the respective period and combined ratio improved to 74.8 percent from 83.5 percent, which included 10.5 percentage points of favourable prior year loss reserve development.

Net investment income stood at $59.3 million, an increase of $63.9 million over the same period in 2008, while operating income, which excludes after-tax realised investment gains and losses and foreign exchange gains and losses, reached $153.7 million, or $2.54 per share, and operating return on average common equity for the quarter of 5.9 percent or 23.5 percent for the full year.

Kenneth LeStrange, chairman, president and CEO of Endurance, said: "Our excellent results in the fourth quarter capped a record year for Endurance. Solid underwriting results, strong performance from our investment portfolio and disciplined capital management contributed to outstanding results and growth in book value per share in 2009.

"We begin 2010 with an exceptionally strong balance sheet and excellent strategic position that should enable Endurance to continue to deliver on our commitments to our shareholders, clients and employees."

Net premiums written in the insurance segment decreased for 2009 compared to the same periods in 2008, largely driven by the strategic decisions to exit the California workers' compensation and UK property insurance lines in early 2009.

The workers' compensation and UK property lines contributed $51.6 million in the fourth quarter and $254.5 million in the full year of 2008 compared to zero in the fourth quarter of 2009 and $9.2 million in the full year of 2009.

Partially offsetting this growth was a decline in agriculture premiums resulting from lower commodity prices.

The increase in net premiums written in the reinsurance segment during the fourth quarter of 2009 resulted primarily from growth in the casualty line of business and an absence of the downward premium adjustments that occurred in the fourth quarter of 2008.

ENDURANCE Q4 REPORT CARD

Net income: $154.8 million compared to $16.9 million in 2008

Combined ratio: 74.8 percent compared to 83.5 percent in 2008

Gross premiums written: $209.4 million compared to $235.6 million in 2008