Endurance Specialty Holdings saw its profits drop almost $50 million during the fourth quarter 2007.

The Bermuda-based company's net income was reduced from $198.8 million or $2.70 per diluted common share for the fourth quarter 2006 to $152.5 million or $2.18 per share for the same period last year.

But full-year net income for 2007 was up at a record $521.1 million or $7.17 per share, from $498.1 million or $6.73 per share for 2006.

Total premiums written, however, decreased by 5.2 percent to $282.5 million for the fourth quarter 2007.

In terms of investments, the company's fixed maturity portfolio continued to maintain an average credit quality of AA and to date there had been "no material adverse impact" to its investment portfolio as a result of the credit crisis.

Kenneth LeStrange, chairman and CEO of Endurance, said: "The past year was very successful for Endurance on many fronts.

"Financially, we generated record earnings driven by strong underwriting and investment results, we returned over $375 million of capital to our shareholders through share repurchases and dividends and our financial strength rating was upgraded to A by AM Best.

"Strategically we continued to expand our expertise through the hiring of several seasoned specialty underwriting teams and acquired ARMtech Insurance Services Inc., the fifth largest provider of federally-sponsored crop insurance in the United States.

"Looking forward to 2008, I expect Endurance's agility and specialty focus to differentiate us from our peers in an increasingly competitive market."