Endurance Specialty Holdings Ltd. reported a net loss of $99.4 million, or $1.79 per share, for the third quarter of 2008 versus a profit of $131.4 million, or $1.81 per share, for the same period last year in the wake of the destruction wreaked by Hurricanes Gustav and Ike.

For the first nine months of the year, the insurer made a net income of $81.8 million or $1.10 per share compared to a profit of $368.6 million, or $5.02 per share, for the nine months ended September 30, 2007.

But gross premiums written increased 47.5 percent to $624.1 million for the quarter and were up 33.8 percent at $2 billion for the opening nine months of 2008.

Ceded premiums stood at $130.1 million versus $45.7 million in the third quarter of 2007, while the company's combined ratio climbed to 112.6 percent, including 28.1 percentage points due to net losses from Gustav and Ike and 3.6 percentage points of favourable prior year loss reserve development.

Similarly, net investment income declined $35.2 million to $27.4 million over the same quarter period in 2007 and operating loss, which excludes after-tax realised investment gains and losses and foreign exchange gains and losses, reached $56.1 million or $1.04 per share.

Book value was also down 1.8 percent at $33.68 per share, excluding dividends paid, from December 31, 2007.

Kenneth LeStrange, chairman and chief executive officer of Endurance said: "While Endurance's results this quarter were negatively impacted by Hurricanes Gustav and Ike, our performance was within our expected tolerance level for events of this size demonstrating the effectiveness of our underwriting and risk management techniques.

"Likewise, although our investment portfolio was adversely impacted by the continued unprecedented turmoil in the global financial markets, we believe Endurance performed very well on a relative basis.

"Our prudent investment and capital management strategies have allowed us to maintain a secure balance sheet and excellent liquidity, and we are very well-positioned to take advantage of the opportunities we expect to emerge from the current market environment."

Endurance's third-quarter losses, net of reinstatement premiums and other loss sensitive accruals, from Gustav and Ike totalled $139.9 million, while the company's operating results for the nine months ended September 30, 2008 included the impact of severe weather and worse than expected growing conditions for major crops in the US.