Endurance Specialty 8K Other Events | ENH 31 Jan 07

Exhibit 99.1

Endurance Specialty Holdings Ltd.

REORGANIZED BUSINESS SEGMENT INFORMATION

BASED ON THIRD QUARTER 2006 DATA

Endurance Specialty Holdings Ltd.

Wellesley House, 90 Pitts Bay Rd.

Pembroke HM 08, Bermuda

Investor Relations

Phone: (441) 278-0988

Fax: (441) 278-0493

email: investorrelations@endurance.bm

This report is for information purposes only. It should be read in conjunctionwith other documents filed by Endurance Specialty Holdings Ltd. pursuant tothe Securities Act of 1933 and the Securities Exchange Act of 1934.

Application of the Safe Harbor of the Private Securities Litigation Reform Act of 1995

Some of the statements in this financial supplement may include forward-looking statements which reflect our current views with respect to future events and financial performance. Such statements may include forward-looking statements both with respect to us in general and the insurance and reinsurance sectors specifically, both as to underwriting and investment matters. Statements which include the words “expect,” “intend,” “plan,” “believe,” “project,” “anticipate,” “seek,” “will,” and similar statements of a future or forward-looking nature identify forward-looking statements in this financial supplement for purposes of the U.S. federal securities laws or otherwise. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only to the date on which they are made. We undertake no obligation to publicly update or review any forward looking statement, when as a result of new information, future developments or otherwise.

All forward-looking statements address matters that involve risks and uncertainties. Accordingly, there are or may be important factors that could cause actual results to differ from those indicated in the forward-looking statements. These factors include, but are not limited to, competition, possible terrorism or the outbreak of war, the frequency or severity of unpredictable catastrophic events, changes in demand for insurance or reinsurance, rating agency actions, uncertainties in our reserving process, a change in our tax status, acceptance of our products, the availability of reinsurance or retrocessional coverage, retention of key personnel, political conditions, the impact of current regulatory investigations, changes in accounting policies, changes in general economic conditions and other factors described in our Annual Report on Form 10-K for the year ended December 31, 2005.

Regulation G

In presenting the Company’s results, management has included and discussed certain non-GAAP measures. Management believes that these non-GAAP measures, which may be defined differently by other companies, better explain the Company's results of operations in a manner that allows for a more complete understanding of the underlying trends in the Company's business. However, these measures should not be viewed as a substitute for those determined in accordance with GAAP.

ENDURANCE SPECIALTY HOLDINGS LTD.

SEGMENT REORGANIZATION

As a result of a shift in our operational structure and the implementation of certain strategic initiatives during 2006, the Company is changing its operating segments to reflect the current manner by which the chief operating decision maker views and manages the business. As a result, we will now report two business segments:

• Insurance– The Insurance business segment is to be comprised of five lines of business: property, excess casualty, healthcare liability, workers' compensation and professional lines.

• Reinsurance – The Reinsurance business segment is to be comprised of seven lines of business: casualty, property, catastrophe, agriculture, marine, aerospace and surety and other specialty.

Data included herein for all periods presented, reflects the current segment reporting, Insurance and Reinsurance.

Table of Contents

		Page
i. Basis of Presentation		i

I. Segment Data
a. Segment Data		1
b. Segment Distribution		9
c. Deposit Accounting Adjustment Impacts on Segment Data		10

II. Loss Reserve Analysis
a. Activity in Reserve for Losses and Loss Expenses by Segment		12
b. Activity in Reserve for Losses and Loss Expenses by Tail		13
c. Analysis of Unpaid Losses and Loss Expense		14

ENDURANCE SPECIALTY HOLDINGS LTD.

BASIS OF PRESENTATION

DEFINITIONS AND PRESENTATION

•

All financial information contained herein is unaudited.

•

Unless otherwise noted, all data is in thousands, except for per share, percentage and ratio information.

•

Endurance Specialty Holdings Ltd., along with others in the industry, uses underwriting ratios as measures of performance. The loss ratio is the ratio of claims and claims adjustment expense to earned premiums. The acquisition expense ratio is the ratio of underwriting expenses (commissions, taxes, licenses and fees, as well as other underwriting expenses) to earned premiums. The general and administrative expense ratio is the ratio of general and administrative expenses to earned premiums. The combined ratio is the sum of the loss ratio, the acquisition expense ratio and the general and administrative expense ratio. These ratios are relative measurements that describe for every $100 of net premiums earned, the cost of losses and expenses, respectively. The combined ratio presents the total cost per $100 of earned premium. A combined ratio below 100% demonstrates underwriting profit; a combined ratio above 100% demonstrates underwriting loss.

•

GAAP combined ratios differ from statutory combined ratios primarily due to the deferral of certain third party acquisition expenses for GAAP reporting purposes and the use of net premiums earned rather than net premiums written in the denominator when calculating the acquisition expense and the general & administrative expense ratios.

ENDURANCE SPECIALTY HOLDINGS LTD.

CONSOLIDATED SEGMENT DATA

FOR THE QUARTER ENDED SEPTEMBER 30, 2006

	Insurance			Reinsurance			Total Company Sub-total			Deposit Accounting Adjustment [a]			Reported Totals
UNDERWRITING REVENUES
Gross premiums written	$	156,781		$	326,061		$	482,842			($6,629	)	$	476,213
Net premiums written	$	98,328		$	293,723		$	392,051			($6,629	)	$	385,422
Net premiums earned	$	90,062		$	353,868		$	443,930			($35,955	)	$	407,975
Other underwriting loss		—			—			—			(1,837	)		(1,837	)
Total underwriting revenues	$	90,062		$	353,868		$	443,930			($37,792	)	$	406,138

UNDERWRITING EXPENSES
Losses and loss expenses	$	57,165		$	158,804		$	215,969			($27,936	)	$	188,033
Acquisition expenses^[b]		8,492			83,244			91,736			(9,879	)		81,857
General and administrative expenses^[b]		13,760			34,775			48,535			—			48,535
Total expenses		79,417			276,823			356,240			(37,815	)		318,425

UNDERWRITING INCOME	$	10,645		$	77,045		$	87,690		$	23		$	87,713

GAAP RATIOS
Loss ratio		63.5	%		44.9	%		48.6	%		77.7	%		46.1	%
Acquisition expense ratio^[b]		9.4	%		23.5	%		20.7	%		27.5	%		20.1	%
General and administrative expense ratio^[b]		15.3	%		9.8	%		10.9	%		—			11.9	%
Combined ratio		88.2	%		78.2	%		80.2	%		105.2	%		78.1	%

STATUTORY RATIOS
Loss ratio		63.5	%		44.9	%		48.6	%		77.7	%		46.1	%
Acquisition expense ratio^[b]		17.0	%		29.7	%		26.5	%		36.1	%		26.4	%
General and administrative expense ratio^[b]		12.2	%		11.8	%		11.9	%		—			12.1	%
Combined ratio		92.7	%		86.4	%		87.0	%		113.8	%		84.6	%

[a] For internal management reporting purposes, underwriting results by segment are presented on the basis of applying reinsurance accounting to all reinsurance contracts written. However, for financial statement presentation purposes, management determined that certain reinsurance contracts written during the period were more appropriately accounted for under the deposit method of accounting specified by AICPA SOP 98-7 whereby net premiums due on such contracts were recorded as deposit liabilities. The adjustment herein reconciles the Company’s underwriting results by segment to the Company’s financial statement presentation.

[b] Certain amounts in the Insurance business segment were reclassified for all periods presented between acquisition and general and administrative expenses to present the Insurance business segment results in a manner consistent with how management now manages and reviews the results of the Insurance business segment.

ENDURANCE SPECIALTY HOLDINGS LTD.

CONSOLIDATED FINANCIAL RATIOS

FOR THE QUARTER ENDED SEPTEMBER 30, 2006

	Insurance			Reinsurance			Total Company Sub-total			Deposit Accounting Adjustment [a]			Reported Totals
AS REPORTED

GAAP RATIOS
Loss ratio		63.5	%		44.9	%		48.6	%		77.7	%		46.1	%
Acquisition expense ratio^[b]		9.4	%		23.5	%		20.7	%		27.5	%		20.1	%
General and administrative expense ratio^[b]		15.3	%		9.8	%		10.9	%		—			11.9	%
Combined ratio		88.2	%		78.2	%		80.2	%		105.2	%		78.1	%

EFFECT OF PRIOR YEAR RESERVE DEVELOPMENT
FAVORABLE / (UNFAVORABLE)

GAAP RATIOS
Loss ratio		6.6	%		2.1	%		3.0	%		9.1	%		2.5	%

NET OF PRIOR PERIOD RESERVE DEVELOPMENT

GAAP RATIOS
Loss ratio		70.1	%		47.0	%		51.6	%		86.8	%		48.6	%
Acquisition expense ratio^[b]		9.4	%		23.5	%		20.7	%		27.5	%		20.1	%
General and administrative expense ratio^[b]		15.3	%		9.8	%		10.9	%		—			11.9	%
Combined ratio		94.8	%		80.3	%		83.2	%		114.3	%		80.6	%

ENDURANCE SPECIALTY HOLDINGS LTD.

INSURANCE SEGMENT DATA

	FOR THE QUARTERS ENDED
	SEPT. 30, 2006			JUNE 30, 2006			MARCH 31, 2006			DEC. 31, 2005			SEPT. 30, 2005			SEPT. 30, 2004
UNDERWRITING REVENUES
Gross premiums written	$	156,781		$	159,223		$	80,157		$	98,373		$	110,983		$	85,460
Net premiums written	$	98,328		$	123,181		$	56,692		$	82,485		$	98,308		$	83,923
Net premiums earned	$	90,062		$	88,353		$	90,426		$	95,029		$	91,525		$	88,359

UNDERWRITING EXPENSES
Losses and loss expenses	$	57,165		$	70,168		$	41,607		$	51,209		$	167,395		$	57,522
Acquisition expenses^[a]		8,492			6,532			6,123			6,419			6,668			8,936
General and administrative expense^[a]		13,760			13,823			7,959			9,485			9,941			8,262
Total expenses		79,417			90,523			55,689			67,113			184,004			74,720

UNDERWRITING INCOME (LOSS)	$	10,645			($2,170	)	$	34,737		$	27,916			($92,479	)	$	13,639

GAAP RATIOS
Loss ratio		63.5	%		79.4	%		46.0	%		53.9	%		182.9	%		65.1	%
Acquisition expense ratio^[a]		9.4	%		7.4	%		6.8	%		6.7	%		7.3	%		10.1	%
General and administrative expense ratio^[a]		15.3	%		15.7	%		8.8	%		10.0	%		10.8	%		9.4	%
Combined ratio		88.2	%		102.5	%		61.6	%		70.6	%		201.0	%		84.6	%

STATUTORY RATIOS
Loss ratio		63.5	%		79.4	%		46.0	%		53.9	%		182.9	%		65.1	%
Acquisition expense ratio^[a]		17.0	%		8.6	%		7.7	%		7.2	%		7.6	%		7.8	%
General and administrative expense ratio^[a]		12.2	%		9.3	%		12.0	%		10.4	%		8.1	%		9.8	%
Combined ratio		92.7	%		97.3	%		65.7	%		71.5	%		198.6	%		82.7	%

[a]

Certain amounts in the Insurance business segment were reclassified for all periods presented between acquisition and general and administrative expenses to present the Insurance business segment results in a manner consistent with how management now manages and reviews the results of the Insurance business segment.

ENDURANCE SPECIALTY HOLDINGS LTD.

REINSURANCE SEGMENT DATA

	FOR THE QUARTERS ENDED
	SEPT. 30, 2006			JUNE 30, 2006			MARCH 31, 2006			DEC. 31, 2005			SEPT. 30, 2005			SEPT. 30, 2004
UNDERWRITING REVENUES
Gross premiums written	$	326,061		$	338,142		$	590,373		$	115,415		$	294,861		$	282,405
Net premiums written	$	293,723		$	331,609		$	585,466		$	115,608		$	285,615		$	273,777
Net premiums earned	$	353,868		$	368,496		$	386,537		$	346,415		$	370,374		$	321,128

UNDERWRITING EXPENSES
Losses and loss expenses	$	158,804		$	240,276		$	228,398		$	368,720		$	630,055		$	250,733
Acquisition expenses		83,244			86,371			89,696			82,169			75,340			72,211
General and administrative expenses		34,775			32,245			35,932			21,482			31,533			24,271
Total expenses		276,823			358,892			354,026			472,371			736,928			347,215

UNDERWRITING INCOME (LOSS)	$	77,045		$	9,604		$	32,511			($125,956	)		($366,554	)		($26,087	)

GAAP RATIOS
Loss ratio		44.9	%		65.2	%		59.1	%		106.5	%		170.1	%		78.1	%
Acquisition expense ratio		23.5	%		23.4	%		23.2	%		23.7	%		20.4	%		22.5	%
General and administrative expense ratio		9.8	%		8.8	%		9.3	%		6.2	%		8.5	%		7.5	%
Combined ratio		78.2	%		97.4	%		91.6	%		136.4	%		199.0	%		108.1	%

STATUTORY RATIOS
Loss ratio		44.9	%		65.2	%		59.1	%		106.4	%		170.1	%		78.1	%
Acquisition expense ratio		29.7	%		22.6	%		19.3	%		29.0	%		21.2	%		22.7	%
General and administrative expense ratio		11.8	%		9.7	%		6.1	%		18.6	%		11.0	%		8.9	%
Combined ratio		86.4	%		97.5	%		84.5	%		154.0	%		202.3	%		109.7	%

Note:

For internal management reporting purposes, underwriting results by segment are presented on the basis of applying reinsurance accounting to all reinsurance contracts written. However, for financial statement presentation purposes, management determined that certain reinsurance contracts written during the period were more appropriately accounted for under the deposit method of accounting specified by AICPA SOP 98-7 whereby net premiums due on such contracts were recorded as deposit liabilities.

ENDURANCE SPECIALTY HOLDINGS LTD.

SEGMENT GROSS PREMIUMS WRITTEN BY LINE OF BUSINESS

	FOR THE QUARTERS ENDED
	SEPT. 30, 2006			JUNE 30, 2006			MARCH 31, 2006			DEC. 31, 2005			SEPT. 30, 2005			SEPT. 30, 2004
INSURANCE SEGMENT
Property	$	47,860		$	52,591		$	28,573		$	25,694		$	27,736		$	25,467
Casualty		28,294			42,877			21,786			35,318			27,427			14,955
Healthcare liability		37,812			31,047			21,062			21,156			41,972			35,211
Workers’ compensation		24,993			6,431			—			—			—			—
Professional lines		17,822			26,277			8,736			16,205			13,848			9,827
TOTAL INSURANCE	$	156,781		$	159,223		$	80,157		$	98,373		$	110,983		$	85,460

REINSURANCE SEGMENT
Casualty	$	86,933		$	77,188		$	185,578		$	45,357		$	89,057		$	156,366
Property		124,235			49,998			122,480			20,626			70,601			33,964
Catastrophe		49,385			102,763			120,695			24,401			66,127			46,542
Agriculture		16,324			42,373			50,531			(779	)		(1,252	)		—
Marine		16,237			14,560			57,246			21,626			41,608			22,759
Aerospace		17,761			25,560			22,700			1,400			14,932			17,056
Surety and other specialty		15,186			25,700			31,143			2,784			13,788			5,718
Subtotal	$	326,061		$	338,142		$	590,373		$	115,415		$	294,861		$	282,405
Deposit accounting adjustment [a]		(6,629	)		(46,112	)		(99,149	)		(21,156	)		(35,279	)		—
TOTAL REINSURANCE	$	319,432		$	292,030		$	491,224		$	94,259		$	259,582		$	282,405

TOTAL	$	476,213		$	451,253		$	571,381		$	192,632		$	370,565		$	367,865

[a]

For internal management reporting purposes, underwriting results by segment are presented on the basis of applying reinsurance accounting to all reinsurance contracts written. However, for financialstatement presentation purposes, management determined that certain reinsurance contracts written during the period were more appropriately accounted for under the deposit method of accountingspecified by AICPA SOP 98-7 whereby net premiums due on such contracts were recorded as deposit liabilities. The adjustment herein reconciles the Company's gross premiums written by segment tothe Company's financial statement presentation.

ENDURANCE SPECIALTY HOLDINGS LTD.

CONSOLIDATED SEGMENT DATA

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2006

	Insurance			Reinsurance			Total Company Sub-total			Deposit Accounting Adjustment [a]			Reported Totals
UNDERWRITING REVENUES
Gross premiums written	$	396,161		$	1,254,576		$	1,650,737			($151,890	)	$	1,498,847
Net premiums written	$	278,201		$	1,210,798		$	1,488,999			($151,890	)	$	1,337,109
Net premiums earned	$	268,841		$	1,108,901		$	1,377,742			($142,883	)	$	1,234,859
Other underwriting income		—			—			—			(328	)		(328	)
Total underwriting revenues	$	268,841		$	1,108,901		$	1,377,742			($143,211	)	$	1,234,531

UNDERWRITING EXPENSES
Losses and loss expenses	$	168,940		$	627,479		$	796,419			($100,209	)	$	696,210
Acquisition expenses^[b]		21,147			259,310			280,457			(44,155	)		236,302
General and administrative expenses^[b]		35,542			102,952			138,494			—			138,494
Total expenses		225,629			989,741			1,215,370			(144,364	)		1,071,006

UNDERWRITING INCOME	$	43,212		$	119,160		$	162,372		$	1,153		$	163,525

GAAP RATIOS
Loss ratio		62.8	%		56.6	%		57.8	%		70.1	%		56.4	%
Acquisition expense ratio^[b]		7.9	%		23.4	%		20.4	%		30.9	%		19.1	%
General and administrative expense ratio^[b]		13.2	%		9.3	%		10.0	%		—			11.2	%
Combined ratio		83.9	%		89.3	%		88.2	%		101.0	%		86.7	%

STATUTORY RATIOS
Loss ratio		62.8	%		56.6	%		57.8	%		70.1	%		56.4	%
Acquisition expense ratio^[b]		11.4	%		22.8	%		20.6	%		30.6	%		19.5	%
General and administrative expense ratio^[b]		10.9	%		8.5	%		9.0	%		—			10.0	%
Combined ratio		85.1	%		87.9	%		87.4	%		100.7	%		85.9	%

[a]

For internal management reporting purposes, underwriting results by segment are presented on the basis of applying reinsurance accounting to all reinsurance contracts written. However, for financialstatement presentation purposes, management determined that certain reinsurance contracts written during the period were more appropriately accounted for under the deposit method of accountingspecified by AICPA SOP 98-7 whereby net premiums due on such contracts were recorded as deposit liabilities. The adjustment herein reconciles the Company's underwriting results by segment tothe Company’s financial statement presentation.

[b]

ENDURANCE SPECIALTY HOLDINGS LTD.

CONSOLIDATED FINANCIAL RATIOS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2006

	Insurance			Reinsurance			Total Company Sub-total			Deposit Accounting Adjustment [a]			Reported Totals
AS REPORTED

GAAP RATIOS
Loss ratio		62.8	%		56.6	%		57.8	%		70.1	%		56.4	%
Acquisition expense ratio^[b]		7.9	%		23.4	%		20.4	%		30.9	%		19.1	%
General and administrative expense ratio^[b]		13.2	%		9.3	%		10.0	%		—			11.2	%
Combined ratio		83.9	%		89.3	%		88.2	%		101.0	%		86.7	%

EFFECT OF PRIOR YEAR RESERVE DEVELOPMENT
FAVORABLE / (UNFAVORABLE)

GAAP RATIOS
Loss ratio		17.4	%		(1.6	)%		2.2	%		(0.9	)%		2.5	%

NET OF PRIOR PERIOD RESERVE DEVELOPMENT

GAAP RATIOS
Loss ratio		80.2	%		55.0	%		60.0	%		69.2	%		58.9	%
Acquisition expense ratio^[b]		7.9	%		23.4	%		20.4	%		30.9	%		19.1	%
General and administrative expense ratio^[b]		13.2	%		9.3	%		10.0	%		—			11.2	%
Combined ratio		101.3	%		87.7	%		90.4	%		100.1	%		89.2	%

[a]

For internal management reporting purposes, underwriting results by segment are presented on the basis of applying reinsurance accounting to all reinsurance contracts written. However, for financialstatement presentation purposes, management determined that certain reinsurance contracts written during the period were more appropriately accounted for under the deposit method of accountingspecified by AICPA SOP 98-7 whereby net premiums due on such contracts were recorded as deposit liabilities. The adjustment herein reconciles the Company’s underwriting results by segment tothe Company’s financial statement presentation.

[b]

Certain amounts in the Insurance business Segment were reclassified for all periods presented between acquisition and general and administrative expenses to present the Insurance business segment results in a manner consistent with how management now manages and reviews the results of the Insurance business segment.

ENDURANCE SPECIALTY HOLDINGS LTD.

SEGMENT GROSS PREMIUMS WRITTEN BY LINE OF BUSINESS

	FOR THE NINE MONTHS ENDED								FOR THE YEAR ENDED
	SEPT. 30, 2006			SEPT. 30, 2005			SEPT. 30, 2004		DEC. 31, 2005			Dec. 31, 2004
INSURANCE SEGMENT
Property	$	129,024		$	87,042		$	85,454	$	112,736		$	112,900
Casualty		92,957			94,633			62,890		129,951			85,226
Healthcare liability		89,921			95,964			91,368		117,120			111,097
Workers’ compensation		31,424			—			—		—			—
Professional lines		52,835			45,419			40,241		61,624			50,479
TOTAL INSURANCE	$	396,161		$	323,058		$	279,953	$	421,431		$	359,702

REINSURANCE SEGMENT
Casualty	$	349,700		$	340,249		$	369,219	$	385,604		$	401,393
Property		296,713			341,233			332,628		361,859			441,369
Catastrophe		272,843			276,489			266,006		300,892			286,873
Agriculture		109,228			33,814			—		33,035			4,825
Marine		88,043			97,349			38,480		118,976			50,662
Aerospace		66,021			119,102			129,268		120,501			132,731
Surety and other specialty		72,028			67,086			23,603		69,870			33,802
Subtotal	$	1,254,576		$	1,275,322		$	1,159,204	$	1,390,737		$	1,351,655
Deposit accounting adjustment[a]		(151,890	)		(122,135	)		—		(143,291	)		—
TOTAL REINSURANCE	$	1,102,686		$	1,153,187		$	1,159,204	$	1,247,446		$	1,351,655

TOTAL	$	1,498,847		$	1,476,245		$	1,439,157	$	1,668,877		$	1,711,357

[a]

For internal management reporting purposes, underwriting results by segment are presented on the basis of applying reinsurance accounting to all reinsurance contracts written. However, for financialstatement presentation purposes, management determined that certain reinsurance contracts written during the period were more appropriately accounted for under the deposit method of accountingspecified by AICPA SOP 98-7 whereby net premiums due on such contracts were recorded as deposit liabilities. The adjustment herein reconciles the Company’s gross premiums written by segment tothe Company’s financial statement presentation.

ENDURANCE SPECIALTY HOLDINGS LTD.

SEGMENT DISTRIBUTION

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2006

Gross Premiums Written = $1,651 million [a]

[a]

Prior to deposit accounting adjustments.

ENDURANCE SPECIALTY HOLDINGS LTD.

DEPOSIT ACCOUNTING ADJUSTMENT IMPACTS ON SEGMENT DATA

FOR THE QUARTER ENDED SEPTEMBER 30, 2006

	Includes Deposit Accounting Adjustments									Excludes Deposit Accounting Adjustments
	Insurance			Reinsurance			Total Company			Insurance			Reinsurance			Total Company
UNDERWRITING REVENUES
Gross premiums written	$	156,781		$	319,432		$	476,213		$	156,781		$	326,061		$	482,842
Net premiums written	$	98,328		$	287,094		$	385,422		$	98,328		$	293,723		$	392,051
Net premiums earned	$	90,062		$	317,913		$	407,975		$	90,062		$	353,868		$	443,930
Other underwriting loss		—			(1,837	)		(1,837	)		—			—			—
Total underwriting revenues		90,062			316,076			406,138			90,062			353,868			443,930

UNDERWRITING EXPENSES
Losses and loss expenses	$	57,165		$	130,868		$	188,033		$	57,165		$	158,804		$	215,969
Acquisition expenses^[a]		8,492			73,365			81,857			8,492			83,244			91,736
General and administrative expenses^[a]		13,760			34,775			48,535			13,760			34,775			48,535
Total expenses		79,417			239,008			318,425			79,417			276,823			356,240

UNDERWRITING INCOME	$	10,645		$	77,068		$	87,713		$	10,645		$	77,045		$	87,690

GAAP RATIOS
Loss ratio		63.5	%		41.2	%		46.1	%		63.5	%		44.9	%		48.6	%
Acquisition expense ratio^[a]		9.4	%		23.1	%		20.1	%		9.4	%		23.5	%		20.7	%
General and administrative expense ratio^[a]		15.3	%		10.9	%		11.9	%		15.3	%		9.8	%		10.9	%
Combined ratio		88.2	%		75.2	%		78.1	%		88.2	%		78.2	%		80.2	%

[a]

ENDURANCE SPECIALTY HOLDINGS LTD.

DEPOSIT ACCOUNTING ADJUSTMENT IMPACTS ON SEGMENT DATA

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2006

	Includes Deposit Accounting Adjustments									Excludes Deposit Accounting Adjustments
	Insurance			Reinsurance			Total Company			Insurance			Reinsurance			Total Company
UNDERWRITING REVENUES
Gross premiums written	$	396,161		$	1,102,686		$	1,498,847		$	396,161		$	1,254,576		$	1,650,737
Net premiums written	$	278,201		$	1,058,908		$	1,337,109		$	278,201		$	1,210,798		$	1,488,999
Net premiums earned	$	268,841		$	966,018		$	1,234,859		$	268,841		$	1,108,901		$	1,377,742
Other underwriting loss		—			(328	)		(328	)		—			—			—
Total underwriting revenues		268,841			965,690			1,234,531		$	268,841		$	1,108,901		$	1,377,742

UNDERWRITING EXPENSES
Losses and loss expenses	$	168,940		$	527,270		$	696,210		$	168,940		$	627,479		$	796,419
Acquisition expenses^[a]		21,147			215,155			236,302			21,147			259,310			280,457
General and administrative expenses^[a]		35,542			102,952			138,494			35,542			102,952			138,494
Total expenses		225,629			845,377			1,071,006			225,629			989,741			1,215,370

UNDERWRITING INCOME	$	43,212		$	120,313		$	163,525		$	43,212		$	119,160		$	162,372

GAAP RATIOS
Loss ratio		62.8	%		54.6	%		56.4	%		62.8	%		56.6	%		57.8	%
Acquisition expense ratio^[a]		7.9	%		22.3	%		19.1	%		7.9	%		23.4	%		20.4	%
General and administrative expense ratio^[a]		13.2	%		10.6	%		11.2	%		13.2	%		9.3	%		10.0	%
Combined ratio		83.9	%		87.5	%		86.7	%		83.9	%		89.3	%		88.2	%

[a]

ENDURANCE SPECIALTY HOLDINGS LTD.

ACTIVITY IN RESERVE FOR LOSSES AND LOSS EXPENSES BY SEGMENT

(FAVORABLE) ADVERSE DEVELOPMENT DURING THE NINE MONTHS ENDED SEPTEMBER 30, 2006

	Insurance			Reinsurance			Total Company Sub-total			Deposit Accounting Adjustment [a]			Total Company
Incurred related to prior years

Quarter ended March 31, 2006		($27,855	)		($16,946	)		($44,801	)		($2,260	)		($42,541	)
Quarter ended June 30, 2006		(13,068	)		41,537			28,469			6,887			21,582
Quarter ended September 30, 2006		(5,941	)		(7,376	)		(13,317	)		(3,277	)		(10,040	)
Nine months ended September 30, 2006		($46,864	)		$17,215			($29,649	)		$1,350			($30,999	)

(FAVORABLE) ADVERSE DEVELOPMENT DURING THE YEAR ENDED DECEMBER 31, 2005

	Insurance			Reinsurance			Total Company Sub-total			Deposit Accounting Adjustment [a]		Total Company
Incurred related to prior years

Quarter ended March 31, 2005		($9,788	)		($36,213	)		($46,001	)		—		($46,001	)
Quarter ended June 30, 2005		(16,149	)		(11,599	)		(27,748	)		—		(27,748	)
Quarter ended September 30, 2005		(2,789	)		(21,087	)		(23,876	)		—		(23,876	)
Quarter ended December 31, 2005		(29,270	)		(35,567	)		(64,837	)		—		(64,837	)
Year ended December 31, 2005		($57,996	)		($104,466	)		($162,462	)		—		($162,462	)

(FAVORABLE) ADVERSE DEVELOPMENT DURING THE YEAR ENDED DECEMBER 31, 2004

	Insurance			Reinsurance			Total Company Sub-total			Deposit Accounting Adjustment [a]		Total Company
Incurred related to prior years

Quarter ended March 31, 2004		($6,666	)		($12,706	)		($19,372	)		—		($19,372	)
Quarter ended June 30, 2004		(9,882	)		(30,812	)		(40,694	)		—		(40,694	)
Quarter ended September 30, 2004		(4,933	)		(46,000	)		(50,933	)		—		(50,933	)
Quarter ended December 31, 2004		(9,372	)		(16,309	)		(25,681	)		—		(25,681	)
Year ended December 31, 2004		($30,853	)		($105,827	)		($136,680	)		—		($136,680	)

[a]

ENDURANCE SPECIALTY HOLDINGS LTD.

ACTIVITY IN RESERVE FOR LOSSES AND LOSS EXPENSES BY TAIL

(FAVORABLE) ADVERSE DEVELOPMENT

	FOR THE QUARTERS ENDED
	SEPT. 30, 2006			JUNE 30, 2006			MARCH 31, 2006
INSURANCE SEGMENT
Short tail^[a]	$	2,142		$	(5,102	)	$	(23,746	)
Long Tail^[b]		(8,083	)		(7,966	)		(4,109	)
TOTAL INSURANCE	$	(5,941	)	$	(13,068	)	$	(27,855	)

REINSURANCE SEGMENT
Short tail^[a]	$	(4,372	)	$	58,523		$	(4,412	)
Long tail^[b]		(2,092	)		(10,092	)		(8,300	)
Other^[c]		(912	)		(6,894	)		(4,234	)
Subtotal	$	(7,376	)	$	41,537		$	(16,946	)
Deposit accounting adjustment^[d]		(3,277	)		6,887			(2,260	)
TOTAL REINSURANCE	$	(4,099	)	$	34,650		$	(14,686	)

TOTAL	$	(10,040	)	$	21,582		$	(42,541	)

[a] Short tail business is defined as loss development which typically emerges within a period of several quarters. The Company's short tail line of business in the Insurance business segment includes its property business line. The Company's short tail lines in its Reinsurance business segment include catastrophe, property, marine, aerospace and surety.

[b] Long tail business is defined as loss development which emerges over many years. The Company's long tail lines of business in the Insurance business segment includes casualty, healthcare liability, workers' compensation and professional lines. The Company's long tail line of business in the Reinsurance business segment includes casualty.

[c] The Company writes certain specialty lines of business for which the loss emergence is considered to be unique in nature and thus, has been included as other.

[d] For internal management reporting purposes, underwriting results by segment are presented on the basis of applying reinsurance accounting to all reinsurance contracts written. However, for financial statement presentation purposes, management determined that certain reinsurance contracts written during the period were more appropriately accounted for under the deposit method of accounting specified by AICPA SOP 98-7 whereby net premiums due on such contracts were recorded as deposit liabilities. The adjustment herein reconciles the Company's losses and loss expenses by segment to the Company's financial statement presentation.

ENDURANCE SPECIALTY HOLDINGS LTD.

ANALYSIS OF UNPAID LOSSES AND LOSS EXPENSE

	Insurance			Reinsurance			Total Company			Deposit Accounting Adjustment [a]			Reported Total
AT SEPT. 30, 2006
Case reserves	$	160,750		$	960,204		$	1,120,954			($52,630	)	$	1,068,324
Total reserves	$	809,222		$	2,082,811		$	2,892,033			($122,615	)	$	2,769,418

Case reserves / Total reserves		19.9	%		46.1	%		38.8	%		42.9	%		38.6	%
IBNR / Total reserves		80.1	%		53.9	%		61.2	%		57.1	%		61.4	%


AT JUNE 30, 2006
Case reserves	$	162,399		$	963,570		$	1,125,969			($31,308	)	$	1,094,661
Total reserves	$	761,510		$	2,121,578		$	2,883,088			($100,285	)	$	2,782,803

Case reserves / Total reserves		21.3	%		45.4	%		39.1	%		31.2	%		39.3	%
IBNR / Total reserves		78.7	%		54.6	%		60.9	%		68.8	%		60.7	%

AT MAR. 31, 2006
Case reserves	$	151,233		$	975,132		$	1,126,365			($15,355	)	$	1,111,010
Total reserves	$	705,894		$	2,055,307		$	2,761,201			($72,215	)	$	2,688,986

Case reserves / Total reserves		21.4	%		47.4	%		40.8	%		21.3	%		41.3	%
IBNR / Total reserves		78.6	%		52.6	%		59.2	%		78.7	%		58.7	%

AT DEC. 31, 2005
Case reserves	$	159,350		$	872,718		$	1,032,068			($13,576	)	$	1,018,492
Total reserves	$	670,769		$	1,979,446		$	2,650,215			($46,625	)	$	2,603,590

Case reserves / Total reserves		23.8	%		44.1	%		38.9	%		29.1	%		39.1	%
IBNR / Total reserves		76.2	%		55.9	%		61.1	%		70.9	%		60.9	%

[a] For internal management reporting purposes, underwriting results by segment are presented on the basis of applying reinsurance accounting to all reinsurance contracts written. However, for financial statement presentation purposes, management determined that certain reinsurance contracts written during the period were more appropriately accounted for under the deposit method of accounting specified by AICPA SOP 98-7 whereby net premiums due on such contracts were recorded as deposit liabilities. The adjustment herein reconciles the Company's reserve for losses and loss expensesby segment to the Company's financial statement presentation.

Endurance Specialty (ENH) Inactive 8-KOther Events