Bermuda insurer Endurance Specialty Holdings Ltd. yesterday estimated that hurricanes Ike and Gustav would cost the company around $145 million.

Endurance also announced that its estimate of realised losses on its investment portfolio for the third quarter totalled around $31 million, principally due to the widening of credit spreads during the period.

Endurance's storm loss estimate is largely derived from a combination of catastrophe modelling, standard industry models, and preliminary indications from clients and brokers.

The company also announced that its fixed maturity portfolio has only limited exposure to several financial institutions that have recently experienced financial distress.

As of September 30, 2008, Endurance's fixed maturity portfolio held senior indebtedness issued by Lehman Brothers and American International Group and its affiliates with a pre-write down amortised cost of $6.5 million and $3.5 million, respectively.

In its fixed maturity portfolio, Endurance does not own any subordinated indebtedness, preferred or common equity of Lehman, American International Group, Fannie Mae or Freddie Mac and has no holdings of any security issued by Washington Mutual.

Endurance also announced that based on preliminary valuations received to date, the estimated returns on its alternative investments for the three months ended September 30, 2008 is expected to be negative $33 million or negative 8.9 percent, reflecting monthly results of negative 1.4 percent in July, negative 0.6 percent in August and negative 6.9 percent in September.

Kenneth LeStrange, Endurance's chairman and chief executive officer, said: "Endurance's careful attention to its risk levels on both the asset and liability sides of its balance sheet have served it well during the active storm season and turbulent financial markets that have marked the past several months.

"Endurance's estimated losses from Hurricanes Gustav and Ike remain well within our expectations and risk parameters for such events. Although it is disappointing to report investment losses, I am pleased with the absolute and relative performance of our portfolio.

"Our conservative investment strategy has proved to be a sound course of action during this period of unprecedented volatility in the financial markets."