Endurance Specialty Holdings Ltd. swung to profit as its net income rose above $150 million for the third quarter of 2009.

The insurer reported net income of $153.8 million and $2.51 per share for the third quarter versus a net loss of $99.4 million and $1.79 per share for the same period in 2008.

For the nine months ended September 30, 2009, net income was $381.3 million and $6.15 per share compared to $81.8 million and $1.09 per share for the nine months ended September 30, 2008.

Net premiums written, however dropped 19.7 percent to $396.7 million from the same period in 2008, while net investment income increased $44.1 million to $71.6 million in Q3 2009.

Kenneth LeStrange, chairman and CEO, said: "I am extremely pleased that Endurance has delivered another quarter of excellent operating results and robust growth in book value per share.

"Our strong results highlight the quality of our underwriting and investment activities and careful and conscientious risk management practices. Although market conditions remain competitive, we are committed to maintaining our underwriting discipline and we are well-positioned strategically and financially to capitalise on attractive underwriting opportunities."

The company posted a combined ratio of 79.5 percent, including 8.1 percentage points of favourable prior year loss reserve development, with an operating income, of $148.1 million. Operating return on average common equity for the quarter was six percent, or 24.1 percent on an annualised basis.

Net premiums written declined in the Insurance segment for the current periods compared to the same periods in 2008, driven by reductions in the workers' compensation, property and agriculture lines. The reduction in the workers' compensation and property net premiums written was due to the company's strategic exit from the California workers' compensation and UK property insurance markets in the first quarter of 2009, whose lines contributed $43.4 million and $202.9 million of net written premiums to the third quarter and first nine months of 2009, respectively.

The reduction in agriculture net premiums written was a result of lower commodity prices compared to a year ago.

Partially offsetting these declines was modest growth in net premiums written in the professional, casualty and healthcare lines of business in the three months ended September 30, 2009 compared to the same period last year, which resulted from expanded underwriting capabilities and increased market penetration.

The general and administrative expense ratio increased four percentage points, partly as a result of reductions in net earned premiums and third party commissions and expense reimbursement offsets, primarily in the agriculture line. In addition, the company continued to make strategic employee additions in its agriculture and other US specialty insurance operations during the third quarter.