A record fourth quarter for Endurance Specialty Holdings Limited, with net income of $198.8 million, has given the insurer and reinsurer a record final year net income of $498.1 million.

And while the hurricane-force windstorm Kyrill, which hit Europe last month appears likely to have caused a loss for Endurance of around $30 million to $40 million on initial estimates, that has not dampened the spirits of Kenneth J. LeStrange, chairman and chief executive officer, after the record-breaking year.

“I am extremely pleased with the record earnings that Endurance achieved both for the fourth quarter and for the full year of 2006,” he said last night.

“In addition to posting record earnings this year, we took significant steps to further expand and balance our book of business through growth in our specialty lines and we significantly reduced our catastrophe risk profile — accomplishments we believe will serve us well in 2007 and beyond.”

The fourth quarter results show net income of $198.8m and $2.70 per diluted common share compared with a net loss of $49.8 million and $0.80 per diluted common share in the fourth quarter of 2005.

The full year net income was $498.1m and $6.73 per diluted common share versus a net loss of $220.5 million and $3.60 per diluted common share for 2005.

Both year’s had favourable prior year loss reserve development of $57.7 million in 2006 and $162.5 million in 2005.

Endurance’s estimate of losses relating to Kyrill, the January windstorm that caused widespread damage in Europe, is based on a review of in-force contracts and preliminary loss information from clients.

Mr. LeStrange also announced some new appointments.

“I am pleased to announce that William Jewett has been appointed the president and Chief Executive Officer of our reinsurance business and will be responsible for strategy, profitability and underwriting results for our reinsurance business worldwide,” he said.

“This appointment compliments our earlier appointment in 2006 of Michael Fujii to lead our global insurance business. Mr. Fujii has now assumed additional responsibilities in this business segment as the president and chief executive officer.

“In addition, as part of our management realignment, Dan Izard has been appointed chief operating officer of Endurance, assuming global responsibility for operating effectiveness and shared services for all of our subsidiaries.”