Bermuda-based re/insurer Endurance Specialty Holdings Ltd. last night reported net income of $139.1 million for the third quarter.

Net premiums written rose nearly 14 percent over the same period last year, boosted in the reinsurance segment by the company's acquisition of the renewal rights of Glacier Re during the third quarter.

Endurance suffered estimated net losses of $11.6 million related to the New Zealand earthquake in September.

The company's book value per share was $51.83, up 8.5 percent during the July through September period.

The quarterly net income of $139.1 million, or $2.51 per share compared to $153.8 million, or $2.51 per share in the same period of last year.

Endurance's chief executive officer David Cash said: "Endurance generated strong returns in the quarter in spite of historically low investment yields and strong competitive forces in many of the underwriting markets in which we operate.

"During the quarter, we found a number of good opportunities in which to deploy our capital, including the expansion and diversification of our international catastrophe reinsurance portfolio through a renewal rights transaction.

"Our agriculture insurance line of business continues to outperform our expectations, generating improved margins on a growing premium base. In addition, we repurchased nearly three million shares of our common stock at a significant discount to book value."

Net premiums written were $451.9 million for the quarter and $1.61 billion for the first nine months of the year, up ten percent from the January through September period last year.

Annualised operating return on average common equity was 17.2 percent for the third quarter, while combined ratio — the proportion of premium dollars spent on claims and expenses — was 83.7 percent. This included 7.5 percentage points of favourable prior year loss reserve development.

The company's insurance underwriting results held up well in the soft market conditions, as net premiums written rose 16.3 percent to $204.3 million and the combined ratio of 90.1 percent improved 8.6 percentage points from the third quarter of 2009.

On the reinsurance side, net premiums written rose 12 percent to $247.6 million, while combined ratio was 76.9 percent.

Net investment income totalled $53.7 million, a decrease of $17.9 million over the same period in 2009.

Endurance's shareholders' equity was $2.9 billion, or $51.83 per share, versus $2.8 billion or $44.61 per common share at the end of last year.

During the third quarter Endurance repurchased 2.98 million of its ordinary shares for an aggregate repurchase price of $112.8 million.