Endurance Specialty Holdings Ltd. reported a 24 percent drop in its net income during the second quarter.

The company reported a net income of $103.3 million and $1.56 per common share for the second quarter of 2008, versus net income of $135.3 million, or $1.85 per share in the second quarter of 2007.

The company's agriculture business line was being blamed for some of the company's loss as a result of severe weather, particularly heavy rains in the US, and poor growing conditions for major crops in the US.

Endurance reported an increase in gross written premiums of 2.2 percent compared to the second quarter of 2007.

The financial statement also showed an $18.1 million decrease in net investment income, which was $60.5 million for the three-month period ending June 30, 2008.

The decline was attributed to recent market volatility, which has reduced the carrying value and related net investment income contribution from its alternative and high yield fund investments. The report added that the company has achieved an annualised 9.6-percent return on these investments.

Kenneth LeStrange, chairman and chief executive officer, said: "Endurance produced another quarter of strong core earnings in the midst of increasing competition in the insurance and reinsurance markets and continued volatility in the financial markets, as well as increased levels of US catastrophes and adverse crop growing conditions in many parts of the Midwestern United States.

"Our second quarter performance in spite of these obstacles is a testament to the quality of Endurance's strategy of diversification and the effectiveness of Endurance's underwriting, risk control and capital management."