Endurance Specialty (ENH) 8-K Results of Operations and Financial Condition

Exhibit 99.2

EnduranceSpecialtyHoldings Ltd.

INVESTORFINANCIALSUPPLEMENT

FIRSTQUARTER 2007

EnduranceSpecialtyHoldings Ltd.
Wellesley House, 90 Pitts Bay Rd.
Pembroke HM 08, Bermuda

InvestorRelations
Phone: (441) 278-0988
Fax: (441) 278-0493
email:investorrelations@endurance.bm

This report is for informationpurposes only. It should be read in conjunction with other documents filed by EnduranceSpecialtyHoldings Ltd. pursuant to the Securities Act of 1933 and the SecuritiesExchange Act of 1934.

Financial Supplement Table of Contents

	Page
i. Basis of Presentation	i
ii. Organizational Chart of Corporate Structure	ii
I. Financial Highlights	1
II. Consolidated Financial Statements
a. Consolidated Statements of Income - Quarterly	2
b. Consolidated Statements of Income - Prior Years	3
c. Consolidated Balance Sheets	4
d. Annual Aggregate Risk Curve	5
e. Segment Distribution	7
f. Segment Data	8
g. Deposit Accounting Adjustment Impacts on Segment Data	14
III. Other Financial Information
a. Return on Equity Analysis	15
b. ROE Component Analysis - Operating and Investment Leverage	16
c. Investment Portfolio Information	17
IV. Loss Reserve Analysis
a. Activity in Reserve for Losses and Loss Expenses	18
b. Activity in Reserve for Losses and Loss Expenses by Segment	19
c. Activity in Reserve for Losses and Loss Expenses by Development Tail	20
d. Analysis of Unpaid Losses and Loss Expense	21
V. Share Analysis
a. Weighted Average Dilutive Shares Outstanding	22
b. Operating Income Reconciliation	23
c. Dilutive Shares Sensitivity Analysis	24
d. Book Value Per Share Analysis	25
e. Growth in Book Value Per Share Analysis	26
VI. Regulation G	27

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

All forward-lookingstatements 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-lookingstatements. These factors include, but are not limited to, competition,possibleterrorism or the outbreak of war, the frequency or severity of unpredictablecatastrophic events, changes in demand for insurance or reinsurance, rating agency actions,uncertainties in our reservingprocess, a change in our tax status, acceptance of our products, the availability of reinsurance or retrocessionalcoverage,retention of key personnel,politicalconditions, the impact of current regulatoryinvestigations,changes in accountingpolicies,changes in general economicconditions and other factors described in our Annual Report on Form 10-K for the year ended December 31, 2006.

ENDURANCESPECIALTYHOLDINGS LTD.
BASIS OF PRESENTATION

DEFINITIONS AND PRESENTATION
•	All financialinformationcontained herein is unaudited, except the balance sheet and income statement data for the years ended December 31, 2006, December 31, 2005 and December 31, 2004, which was derived from the Company's audited financialstatements.
•	Unless otherwise noted, all data is in thousands, except for per share, percentage and ratio information.
•	As used in this financialsupplement,“common shares” refers to our ordinary shares and class A shares, collectively.
•	EnduranceSpecialtyHoldings Ltd., along with others in the industry, uses underwriting ratios as measures of performance. The loss ratio is the ratio of claims and claims adjustmentexpense to earned premiums. The acquisitionexpense ratio is the ratio of underwritingexpenses(commissions, taxes, licenses and fees, as well as other underwritingexpenses) to earned premiums. The general and administrativeexpense ratio is the ratio of general and administrativeexpenses to earned premiums. The combined ratio is the sum of the loss ratio, the acquisitionexpense ratio and the general and administrativeexpense 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% demonstratesunderwriting profit; a combined ratio above 100% demonstratesunderwriting loss.
•	GAAP combined ratios differ from statutorycombined ratios primarily due to the deferral of certain third party acquisitionexpenses for GAAP reportingpurposes and the use of net premiums earned rather than net premiums written in the denominator when calculating the acquisitionexpense and the general & administrativeexpense ratios.
•	NM - Not meaningful; NA - Not Applicable; LTM - Latest twelve months.

i

ENDURANCESPECIALTYHOLDINGS LTD.
CORPORATEORGANIZATIONCHART

ii

ENDURANCE SPECIALTY HOLDINGS LTD.
CONSOLIDATED FINANCIAL HIGHLIGHTS
			QUARTER ENDED MARCH 31,					Previous Quarter Change
			2007			2006
HIGHLIGHTS	Net income	$	101,835		$	107,036		(4.9	)%
	Net income available to common shareholders		97,960			103,161		(5.0	)%
	Operating income[a]		105,196			107,920		(2.5	)%
	Operating income available to common shareholders[a]		101,321			104,045		(2.6	)%
	Operating cash flow		122,757			174,844		(29.8	)%
	Gross premiums written		573,291			571,381		0.3	%
	Net premiums earned		377,045			420,206		(10.3	)%
	Total assets		7,190,463			6,728,927		6.9	%
	Total shareholders’ equity		2,366,546			1,923,988		23.0	%
PER SHARE	Basic earnings per common share
AND SHARES DATA	Net income (as reported)	$	1.47		$	1.55		(5.3	)%
	Operating income (as reported)[a]	$	1.52		$	1.57		(2.9	)%
	Diluted earnings per common share
	Net income (as reported)	$	1.36		$	1.45		(6.1	)%
	Operating income (as reported)[a]	$	1.41		$	1.46		(3.7	)%
As Reported	Weighted average common shares outstanding		66,613			66,445		0.3	%
	Weighted average common shares outstanding
	and dilutive potential common shares		72,073			71,295		1.1	%
Book Value Per	Book value[b]	$	32.77		$	25.93		26.4	%
Common Share	Diluted book value (treasury stock method)[b]	$	30.19		$	23.96		26.0	%
FINANCIAL RATIOS	Return on average common equity (ROAE), net income[c]		4.6	%		6.1	%	(1.5	)
	ROAE, operating income[a] [c]		4.8	%		6.1	%	(1.3	)
	Return on beg. common equity (ROBE), net income[c]		4.7	%		6.2	%	(1.5	)
	ROBE, operating income[a]		4.8	%		6.2	%	(1.4	)
	Annualized ROAE, net income[c]		18.4	%		24.3	%	(5.9	)
	Annualized ROAE, operating income[a] [c]		19.0	%		24.5	%	(5.5	)
	Annualized ROBE, net income		18.7	%		24.7	%	(6.0	)
	Annualized ROBE, operating income[a]		19.3	%		24.9	%	(5.6	)
	Annualized investment yield		5.5	%		4.9	%	0.6
	Loss ratio		55.9	%		56.8	%	(0.9	)
GAAP	Acquisition expense ratio		17.9	%		17.9	%	0.0
	General and administrative expense ratio		12.9	%		10.5	%	2.4
	Combined ratio		86.7	%		85.2	%	1.5
STAT	Acquisition expense ratio		15.9	%		15.9	%	0.0
	General and administrative expense ratio		9.8	%		7.9	%	1.9
	Combined ratio		81.6	%		80.6	%	1.0

[a]	Operating income represents after-tax operational results excluding, as applicable, after-tax net realized capital gains or losses and after-tax net foreign exchange gains or losses. Please see page 23 for a reconciliation to net income.
[b]	For detailed calculations please refer to page 25.
[c]	Average common equity is calculated as the arithmetic average of the beginning and ending common equity balances for the stated periods, which excludes the $200 million liquidation value of the preferred shares.

1

ENDURANCE SPECIALTY HOLDINGS LTD.
CONSOLIDATED STATEMENTS OF INCOME - QUARTERLY

	QUARTER ENDED
		MARCH 31, 2007			DEC. 31, 2006			SEPT. 30, 2006			JUNE 30, 2006			MARCH 31, 2006			MARCH 31, 2005
UNDERWRITING REVENUES
Gross premiums written	$	573,291		$	290,795		$	476,213		$	451,253		$	571,381		$	702,491
Premiums ceded		(39,626	)		(42,340	)		(90,791	)		(42,575	)		(28,372	)		(3,313	)
Net premiums written	$	533,665		$	248,455		$	385,422		$	408,678		$	543,009		$	699,178
Change in unearned premiums		(156,620	)		155,260			22,553			(2,000	)		(122,803	)		(261,580	)
Net premiums earned	$	377,045		$	403,715		$	407,975		$	406,678		$	420,206		$	437,598
Other underwriting (loss) income		(5,936	)		1,718			(1,837	)		(1,992	)		3,501			171
Total underwriting revenues	$	371,109		$	405,433		$	406,138		$	404,686		$	423,707		$	437,769
UNDERWRITING EXPENSES
Losses and loss expenses	$	210,594		$	131,420		$	188,033		$	269,445		$	238,732		$	251,059
Acquisition expenses		67,530			81,187			81,857			79,197			75,248			86,775
General and administrative expenses		48,829			51,879			48,535			46,068			43,891			33,546
Total underwriting expenses	$	326,953		$	264,486		$	318,425		$	394,710		$	357,871		$	371,380
Underwriting income	$	44,156		$	140,947		$	87,713		$	9,976		$	65,836		$	66,389
OTHER OPERATING REVENUE/EXPENSES
Net investment income	$	74,813		$	72,033		$	63,581		$	60,291		$	61,544		$	40,011
Interest expense		(7,529	)		(7,528	)		(7,528	)		(7,459	)		(7,526	)		(5,471	)
Amortization of intangibles		(1,127	)		(1,126	)		(1,158	)		(1,158	)		(1,158	)		(1,220	)
Total other operating  revenue/expenses	$	66,157		$	63,379		$	54,895		$	51,674		$	52,860		$	33,320
INCOME BEFORE OTHER ITEMS	$	110,313		$	204,326		$	142,608		$	61,650		$	118,696		$	99,709
OTHER
Net foreign exchange (losses) gains		($2,613	)	$	9,771			($3,633	)	$	11,997		$	2,886			($2,421	)
Net realized (losses) gains on investments		(2,084	)		(1,908	)		(6,375	)		(8,729	)		(3,330	)		(4,453	)
Income tax (expense) benefit		(3,781	)		(13,379	)		(4,370	)		(868	)		(11,216	)		3,424
NET INCOME	$	101,835		$	198,810		$	128,230		$	64,050		$	107,036		$	96,259
Preferred dividends		(3,875	)		(3,875	)		(3,875	)		(3,875	)		(3,875	)		—
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	97,960		$	194,935		$	124,355		$	60,175		$	103,161		$	96,259
KEY RATIOS/PER SHARE DATA
Loss ratio		55.9	%		32.6	%		46.1	%		66.3	%		56.8	%		57.4	%
Acquisition expense ratio		17.9	%		20.1	%		20.1	%		19.5	%		17.9	%		19.8	%
General and administrative expense ratio		12.9	%		12.8	%		11.9	%		11.3	%		10.5	%		7.7	%
Combined ratio		86.7	%		65.5	%		78.1	%		97.1	%		85.2	%		84.9	%
Weighted average basic shares outstanding		66,613			66,561			66,339			66,398			66,445			61,292
Weighted average dilutive shares outstanding		72,073			72,261			71,487			71,109			71,295			66,166
Basic earnings per common share	$	1.47		$	2.93		$	1.87		$	0.91		$	1.55		$	1.57
Diluted earnings per common share	$	1.36		$	2.70		$	1.74		$	0.85		$	1.45		$	1.45
ROAE, net income[a]		4.6	%		9.7	%		6.8	%		3.5	%		6.1	%		5.1	%

[a] Average common equity is calculated as the arithmetic average of the beginning and ending equity balances for the stated periods, which excludes the $200 million liquidation value of the preferred shares.

2

ENDURANCE SPECIALTY HOLDINGS LTD.
CONSOLIDATED STATEMENTS OF INCOME - PRIOR YEARS

	YEAR ENDED
	DEC. 31, 2006			DEC. 31, 2005			DEC. 31, 2004
UNDERWRITING REVENUES
Gross premiums written	$	1,789,642		$	1,668,877		$	1,711,357
Premiums ceded		(204,078	)		(49,528	)		(14,337	)
Net premiums written	$	1,585,564		$	1,619,349		$	1,697,020
Change in unearned premiums		53,010			104,345			(64,420	)
Net premiums earned	$	1,638,574		$	1,723,694		$	1,632,600
Other underwriting (loss) income		1,390			(4,818	)		—
Total underwriting revenues	$	1,639,964		$	1,718,876		$	1,632,600
UNDERWRITING EXPENSES
Losses and loss expenses	$	827,630		$	1,650,943		$	937,330
Acquisition expenses		317,489			331,309			329,784
General and administrative expenses		190,373			146,419			133,725
Total underwriting expenses	$	1,335,492		$	2,128,671		$	1,400,839
Underwriting income (loss)	$	304,472			($409,795	)	$	231,761
OTHER OPERATING REVENUE/EXPENSES
Net investment income	$	257,449		$	180,451		$	122,059
Interest expense		(30,041	)		(24,210	)		(9,959	)
Amortization of intangibles		(4,600	)		(4,694	)		(3,990	)
Total other operating revenue/expenses	$	222,808		$	151,547		$	108,110
INCOME (LOSS) BEFORE OTHER ITEMS	$	527,280			($258,248	)	$	339,871
OTHER
Net foreign exchange gains (losses)	$	21,021			($5,140	)		($214	)
Net realized (losses) gains on investments		(20,342	)		(8,244	)		6,130
Income tax (expense) benefit		(29,833	)		51,148			9,797
NET INCOME (LOSS)	$	498,126			($220,484	)	$	355,584
Preferred dividends		(15,500	)		($2,720	)		—
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS	$	482,626			($223,204	)	$	355,584
KEY RATIOS/PER SHARE DATA
Loss ratio		50.5	%		95.8	%		57.4	%
Acquisition expense ratio		19.4	%		19.2	%		20.2	%
General and administrative expense ratio		11.6	%		8.5	%		8.2	%
Combined ratio		81.5	%		123.5	%		85.8	%
Weighted average basic shares outstanding		66,436			62,029			62,781
Weighted average dilutive shares outstanding		71,755			62,029			67,283
Basic earnings (loss) per common share	$	7.26			($3.60	)	$	5.66
Diluted earnings (loss) per common share	$	6.73			($3.60	)	$	5.28
ROAE, net income (loss)[a]		25.6	%		(12.6	)%		20.3	%

[a] Average common equity is calculated as the arithmetic average of the beginning and ending equity balances for the stated periods, which excludes the $200 million liquidation value of the preferred shares.

3

ENDURANCE SPECIALTY HOLDINGS LTD.
CONSOLIDATED BALANCE SHEETS

		MARCH 31, 2007			DEC. 31, 2006			SEPT. 30, 2006			JUNE 30, 2006			MARCH 31, 2006			DEC. 31, 2005
ASSETS
Cash and cash equivalents	$	518,800		$	547,772		$	527,990		$	669,583		$	562,060		$	468,015
Fixed maturity investments available for sale, at fair value		4,838,405			4,714,204			4,652,163			4,323,661			4,310,088			4,323,339
Investments in other ventures, under equity method		267,721			253,068			223,536			204,272			184,215			161,883
Premiums receivable, net		808,064			660,570			769,462			827,239			798,008			575,109
Deferred acquisition costs		186,374			168,809			189,110			169,190			174,358			162,592
Securities lending collateral		217,698			226,762			349,630			371,407			439,652			408,663
Prepaid reinsurance premiums		92,722			105,058			108,251			56,194			39,617			27,132
Losses recoverable		55,579			44,244			37,447			27,452			26,442			17,248
Accrued investment income		36,792			40,692			37,007			36,740			33,737			33,734
Intangible assets		69,415			70,366			70,255			71,436			65,086			65,633
Deferred tax assets		61,385			54,019			65,738			66,545			61,745			69,360
Other assets		37,508			39,990			37,201			34,693			33,919			35,699
TOTAL ASSETS	$	7,190,463		$	6,925,554		$	7,067,790		$	6,858,412		$	6,728,927		$	6,348,407
LIABILITIES
Reserve for losses and loss expenses	$	2,790,183		$	2,701,686		$	2,769,418		$	2,782,803		$	2,688,986		$	2,603,590
Reserve for unearned premiums		987,748			843,202			997,478			967,844			939,165			803,629
Deposit liabilities		155,380			161,024			173,992			173,527			151,418			92,523
Reinsurance balances payable		147,745			172,328			147,218			122,829			102,726			85,281
Securities lending payable		217,698			226,762			349,630			371,407			439,652			408,663
Debt		447,192			447,172			447,151			447,131			447,112			447,092
Other liabilities		77,971			75,506			65,729			56,336			35,880			35,086
TOTAL LIABILITIES	$	4,823,917		$	4,627,680		$	4,950,616		$	4,921,877		$	4,804,939		$	4,475,864
SHAREHOLDERS’ EQUITY
Preferred shares
Series A, non-cumulative	$	8,000		$	8,000		$	8,000		$	8,000		$	8,000		$	8,000
Common shares		65,968			66,480			66,196			66,096			66,256			66,139
Additional paid-in capital		1,431,623			1,458,063			1,452,438			1,450,435			1,454,842			1,453,722
Accumulated other comprehensive (loss) income		(131	)		(14,465	)		(11,123	)		(82,087	)		(55,815	)		(19,672	)
Retained earnings		861,086			779,796			601,663			494,091			450,705			364,354
TOTAL SHAREHOLDERS’ EQUITY	$	2,366,546		$	2,297,874		$	2,117,174		$	1,936,535		$	1,923,988		$	1,872,543
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	7,190,463		$	6,925,554		$	7,067,790		$	6,858,412		$	6,728,927		$	6,348,407
Book value per common share	$	32.77		$	31.45		$	28.87		$	26.19		$	25.93		$	25.18
Diluted book value per common share (treasury stock method)	$	30.19		$	28.87		$	26.52		$	24.24		$	23.96		$	23.17
RATIOS
Debt-to-capital		15.9	%		16.3	%		17.4	%		18.8	%		18.9	%		19.3	%

4

ENDURANCE SPECIALTY HOLDINGS LTD.
AnnualAggregate Risk Curve

Endurance Operating Income Profile

as of January 1, 2007

The above chart represents a cumulativeanalysis of our in-force underwritingportfolio on a full year basis based on thousands of potentialscenarios. Loss years are driven largely by the occurrence of natural catastrophes and incorrect pricing of other property and casualtyexposures. The operating income depictedincludes net premiums earned plus net investmentincome,acquisitionexpenses and G&A expenses. Forecastedinvestmentincome,acquisition and G&A expenses are held constant across all scenarios. Losses included above are net of reinsuranceincludingcollateralizedreinsurance and ILW purchases. Our stated objective is to maintain a risk managementtolerance that limits our loss in a 1-in-100 year year to be no more than 25% of our equity capital. We base our budget and forecasts on the average result, although the nature of the curve places the median result further to the right.

Changes in Endurance’sunderwritingportfolio,investmentportfolio, risk control mechanisms, market conditions and other factors may cause actual results to vary considerably from those indicated by our value at risk curve. For a listing of risks related to Endurance and its future performance, please see “Risk Factors” in our Annual Report on Form 10K for the year ended December 31, 2006.

5

ENDURANCESPECIALTYHOLDINGS LTD.
AnnualAggregate Risk Curve

Annual Aggregate Risk Curve Comparison

	July 1, 2006 to		January 1, 2007 to		$		%
(in millions)	June 30, 2007		December 31, 2007		Change		Change
Median Result	$400		$381		($19	)	(5.0	%)
Average Result	342		341		(1	)	(0.3	%)
1 in 10 year annual gain	64		91		27		29.7	%
1 in 25 year annual loss	(182	)	(66	)	116		(175.8	%)
1 in 50 year annual loss	(334	)	(172	)	162		(94.2	%)
1 in 100 year annual loss	(486	)	(287	)	199		(69.3	%)
1 in 250 year annual loss	(707	)	(396	)	311		(78.5	%)
1 in 500 year annual loss	(904	)	(500	)	404		(80.8	%)

Changes in Endurance’sunderwritingportfolio,investmentportfolio, risk control mechanisms, market conditions and other factors may cause actual results to vary considerably from those indicated by our value at risk curve. For a listing of risks related to Endurance and its future performance, please see “Risk Factors” in our Annual Report on Form 10K for the year ended December 31, 2006.

6

ENDURANCESPECIALTYHOLDINGS LTD.
SEGMENTDISTRIBUTION

FOR THEQUARTERENDEDMARCH 31, 2007

[a] Prior to deposit accounting adjustments.

7

ENDURANCE SPECIALTY HOLDINGS LTD.
CONSOLIDATED SEGMENT DATA
FOR THE QUARTER ENDED MARCH 31, 2007

		Insurance			Reinsurance			Total Company Sub-total		Deposit Accounting Adjustment [a]			Reported Totals
UNDERWRITING REVENUES
Gross premiums written	$	147,033		$	429,473		$	576,506		($3,215	)	$	573,291
Net premiums written	$	108,089		$	428,791		$	536,880		($3,215	)	$	533,665
Net premiums earned	$	110,324		$	291,396		$	401,720		($24,675	)	$	377,045
Other underwriting loss		—			—			—		(5,936	)		(5,936	)
Total underwriting revenues	$	110,324		$	291,396		$	401,720		($30,611	)	$	371,109
UNDERWRITING EXPENSES
Losses and loss expenses	$	63,529		$	169,699		$	233,228		($22,634	)	$	210,594
Acquisition expenses		13,826			61,417			75,243		(7,713	)		67,530
General and administrative expenses	$	22,217		$	26,612			48,829		—			48,829
Total expenses		99,572			257,728			357,300		(30,347	)		326,953
UNDERWRITING INCOME (LOSS)	$	10,752		$	33,668		$	44,420		($264	)	$	44,156
GAAP RATIOS
Loss ratio		57.6	%		58.2	%		58.1	%	91.7	%		55.9	%
Acquisition expense ratio		12.5	%		21.1	%		18.7	%	31.3	%		17.9	%
General and administrative expense ratio		20.2	%		9.1	%		12.1	%	—			12.9	%
Combined ratio		90.3	%		88.4	%		88.9	%	123.0	%		86.7	%
STATUTORY RATIOS
Loss ratio		57.6	%		58.2	%		58.1	%	91.7	%		55.9	%
Acquisition expense ratio		19.2	%		15.4	%		16.2	%	62.4	%		15.9	%
General and administrative expense ratio		23.9	%		6.2	%		9.8	%	—			9.8	%
Combined ratio		100.7	%		79.8	%		84.1	%	154.1	%		81.6	%

[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.

8

ENDURANCESPECIALTYHOLDINGS LTD.
CONSOLIDATEDFINANCIALRATIOS
FOR THEQUARTERENDEDMARCH 31, 2007

	Insurance		Reinsurance		Total Company Sub-total		Deposit Accounting Adjustment [a]		Reported Totals
AS REPORTED
GAAP RATIOS
Loss ratio	57.6	%	58.2	%	58.1	%	91.7	%	55.9	%
Acquisition expense ratio	12.5	%	21.1	%	18.7	%	31.3	%	17.9	%
General and administrative expense ratio	20.2	%	9.1	%	12.1	%	—		12.9	%
Combined ratio	90.3	%	88.4	%	88.9	%	123.0	%	86.7	%
EFFECT OF PRIOR ACCIDENT YEAR RESERVE DEVELOPMENT
FAVORABLE / (UNFAVORABLE)
GAAP RATIOS
Loss ratio	24.0	%	7.9	%	12.3	%	(25.6	)%	14.8	%
NET OF PRIOR ACCIDENT YEAR RESERVE DEVELOPMENT
GAAP RATIOS
Loss ratio	81.6	%	66.1	%	70.4	%	66.1	%	70.7	%
Acquisition expense ratio	12.5	%	21.1	%	18.7	%	31.3	%	17.9	%
General and administrative expense ratio	20.2	%	9.1	%	12.1	%	—		12.9	%
Combined ratio	114.3	%	96.3	%	101.2	%	97.4	%	101.5	%

[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 loss ratio by segment to the Company's financial statement presentation.

9

ENDURANCESPECIALTYHOLDINGS LTD.
INSURANCESEGMENT DATA

	FOR THE QUARTERS ENDED
		MARCH 31, 2007			DEC. 31, 2006			SEPT. 30, 2006			JUNE 30, 2006			MARCH 31, 2006			MARCH 31, 2005
UNDERWRITING REVENUES
Gross premiums written	$	147,033		$	180,584		$	156,781		$	159,223		$	80,157		$	71,064
Net premiums written	$	108,089		$	138,436		$	98,328		$	123,181		$	56,692		$	70,930
Net premiums earned	$	110,324		$	102,921		$	90,062		$	88,353		$	90,426		$	87,661
UNDERWRITING EXPENSES
Losses and loss expenses	$	63,529		$	83,370		$	57,165		$	70,168		$	41,607		$	76,782
Acquisition expenses		13,826			11,382			8,492			6,532			6,123			8,094
General and administrative expenses		22,217			13,983			13,760			13,823			7,959			5,317
Total expenses		99,572			108,735			79,417			90,523			55,689			90,193
UNDERWRITING INCOME (LOSS)	$	10,752			($5,814	)	$	10,645			($2,170	)	$	34,737			($2,532	)
GAAP RATIOS
Loss ratio		57.6	%		81.0	%		63.5	%		79.4	%		46.0	%		87.6	%
Acquisition expense ratio		12.5	%		11.1	%		9.4	%		7.4	%		6.8	%		9.2	%
General and administrative expense ratio		20.2	%		13.5	%		15.3	%		15.7	%		8.8	%		6.1	%
Combined ratio		90.3	%		105.6	%		88.2	%		102.5	%		61.6	%		102.9	%
STATUTORY RATIOS
Loss ratio		57.6	%		81.0	%		63.5	%		79.4	%		46.0	%		87.6	%
Acquisition expense ratio		19.2	%		18.9	%		17.0	%		8.6	%		7.7	%		4.9	%
General and administrative expense ratio		23.9	%		9.8	%		12.2	%		9.3	%		12.0	%		7.5	%
Combined ratio		100.7	%		109.7	%		92.7	%		97.3	%		65.7	%		100.0	%

10

ENDURANCESPECIALTYHOLDINGS LTD.
REINSURANCESEGMENT DATA

	FOR THE QUARTERS ENDED
		MARCH 31, 2007			DEC. 31, 2006			SEPT. 30, 2006			JUNE 30, 2006			MARCH 31, 2006			MARCH 31, 2005
UNDERWRITING REVENUES
Gross premiums written	$	429,473		$	117,313		$	326,061		$	338,142		$	590,373		$	717,049
Net premiums written	$	428,791		$	117,121		$	293,723		$	331,609		$	585,466		$	713,870
Net premiums earned	$	291,396		$	338,266		$	353,868		$	368,496		$	386,537		$	360,593
UNDERWRITING EXPENSES
Losses and loss expenses	$	169,699		$	69,483		$	158,804		$	240,276		$	228,398		$	180,154
Acquisition expenses		61,417			81,883			83,244			86,371			89,696			82,393
General and administrative expenses		26,612			37,896			34,775			32,245			35,932			28,229
Total expenses		257,728			189,262			276,823			358,892			354,026			290,776
UNDERWRITING INCOME	$	33,668		$	149,004		$	77,045		$	9,604		$	32,511		$	69,817
GAAP RATIOS
Loss ratio		58.2	%		20.6	%		44.9	%		65.2	%		59.1	%		50.0	%
Acquisition expense ratio		21.1	%		24.2	%		23.5	%		23.4	%		23.2	%		22.8	%
General and administrative expense ratio		9.1	%		11.2	%		9.8	%		8.8	%		9.3	%		7.8	%
Combined ratio		88.4	%		56.0	%		78.2	%		97.4	%		91.6	%		80.6	%
STATUTORY RATIOS
Loss ratio		58.2	%		20.6	%		44.9	%		65.2	%		59.1	%		50.0	%
Acquisition expense ratio		15.4	%		31.4	%		29.7	%		22.6	%		19.3	%		21.6	%
General and administrative expense ratio		6.2	%		32.4	%		11.8	%		9.7	%		6.1	%		4.0	%
Combined ratio		79.8	%		84.4	%		86.4	%		97.5	%		84.5	%		75.6	%

Note: For internalmanagementreportingpurposes,underwriting results by segment are presented on the basis of applyingreinsuranceaccounting to all reinsurancecontractswritten. However, for financial statementpresentationpurposes,managementdetermined that certain reinsurancecontracts written during the period were more appropriatelyaccounted for under the deposit method of accountingspecified by AICPA SOP 98-7 whereby net premiums due on such contracts were recorded as deposit liabilities.

11

ENDURANCESPECIALTYHOLDINGS LTD.
SEGMENTGROSSPREMIUMSWRITTEN BY LINE OFBUSINESS

		FOR THE QUARTERS ENDED
		MARCH 31, 2007			DEC. 31, 2006			SEPT. 30, 2006			JUNE 30, 2006			MARCH 31, 2006			MARCH 31, 2005
INSURANCE SEGMENT
Property	$	27,042		$	44,268		$	47,860		$	52,591		$	28,573		$	23,374
Casualty		26,796			35,976			28,294			42,877			21,786			19,965
Healthcare liability		18,790			17,067			37,812			31,047			21,062			18,606
Workers’ compensation		61,633			62,355			24,993			6,431			—			—
Professional lines		12,772			20,918			17,822			26,277			8,736			9,119
TOTAL INSURANCE	$	147,033		$	180,584		$	156,781		$	159,223		$	80,157		$	71,064
REINSURANCE SEGMENT
Casualty	$	91,936		$	50,411		$	86,933		$	77,188		$	185,578		$	221,425
Property		36,701			22,170			124,235			49,998			122,480			171,290
Catastrophe		140,499			18,912			49,385			102,763			120,695			140,807
Agriculture		93,061			(2,124	)		16,324			42,373			50,531			25,899
Marine		33,080			15,344			16,237			14,560			57,246			48,763
Aerospace		6,480			10,795			17,761			25,560			22,700			74,289
Surety and other specialty		27,716			1,805			15,186			25,700			31,143			34,576
TOTAL REINSURANCE	$	429,473		$	117,313		$	326,061		$	338,142		$	590,373		$	717,049
TOTAL COMPANY SUBTOTAL	$	576,506		$	297,897		$	482,842		$	497,365		$	670,530		$	788,113
DEPOSIT ACCOUNTING
ADJUSTMENT[a]		(3,215	)		(7,102	)		(6,629	)		(46,112	)		(99,149	)		(85,622	)
REPORTED TOTALS	$	573,291		$	290,795		$	476,213		$	451,253		$	571,381		$	702,491

[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 gross premiums written by segment to the Company’s financial statement presentation.

12

ENDURANCESPECIALTYHOLDINGS LTD.
SEGMENT NETPREMIUMSWRITTEN BY LINE OFBUSINESS

		FOR THE QUARTERS ENDED
		MARCH 31, 2007			DEC. 31, 2006			SEPT. 30, 2006			JUNE 30, 2006			MARCH 31, 2006			MARCH 31, 2005
INSURANCE SEGMENT
Property	$	6,127		$	19,504		$	4,397		$	26,699		$	10,690		$	23,150
Casualty		17,761			24,305			16,194			33,113			16,204			19,965
Healthcare liability		18,790			17,067			37,812			31,047			21,062			18,606
Workers’ compensation		54,810			58,607			22,215			6,045			—			—
Professional lines		10,601			18,953			17,710			26,277			8,736			9,209
TOTAL INSURANCE	$	108,089		$	138,436		$	98,328		$	123,181		$	56,692		$	70,930
REINSURANCE SEGMENT
Casualty	$	91,921		$	50,367		$	86,716		$	76,004		$	183,575		$	219,665
Property		36,527			22,170			116,146			49,998			122,480			171,290
Catastrophe		140,183			18,912			31,282			99,238			120,695			140,807
Agriculture		93,061			(2,124	)		15,483			42,373			50,531			25,899
Marine		33,016			15,344			12,970			14,560			57,246			48,763
Aerospace		6,375			10,795			15,976			23,995			22,700			74,289
Surety and other specialty		27,708			1,657			15,150			25,441			28,239			33,157
TOTAL REINSURANCE	$	428,791		$	117,121		$	293,723		$	331,609		$	585,466		$	713,870
TOTAL COMPANY SUBTOTAL	$	536,880		$	255,557		$	392,051		$	454,790		$	642,158		$	784,800
DEPOSIT ACCOUNTING
ADJUSTMENT[a]		(3,215	)		(7,102	)		(6,629	)		(46,112	)		(99,149	)		(85,622	)
REPORTED TOTALS	$	533,665		$	248,455		$	385,422		$	408,678		$	543,009		$	699,178

[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 gross premiums written by segment to the Company’s financial statement presentation.

13

ENDURANCESPECIALTYHOLDINGS LTD.
DEPOSITACCOUNTINGADJUSTMENTIMPACTS ON SEGMENT DATA
FOR THEQUARTERENDEDMARCH 31, 2007

		Includes Deposit Accounting Adjustments									Excludes Deposit Accounting Adjustments
		Insurance			Reinsurance			Total Company			Insurance			Reinsurance			Total Company
UNDERWRITING REVENUES
Gross premiums written	$	147,033		$	426,258		$	573,291		$	147,033		$	429,473		$	576,506
Net premiums written	$	108,089		$	425,576		$	533,665		$	108,089		$	428,791		$	536,880
Net premiums earned	$	110,324		$	266,721		$	377,045		$	110,324		$	291,396		$	401,720
Other underwriting loss		—			($5,936	)		(5,936	)		—			—			—
Total underwriting revenues		110,324			260,785			371,109			110,324			291,396			401,720
UNDERWRITING EXPENSES
Losses and loss expenses	$	63,529		$	147,065		$	210,594		$	63,529		$	169,699		$	233,228
Acquisition expenses		13,826			53,704			67,530			13,826			61,417			75,243
General and administrative expenses		22,217			26,612			48,829			22,217			26,612			48,829
Total expenses		99,572			227,381			326,953			99,572			257,728			357,300
UNDERWRITING INCOME	$	10,752		$	33,404		$	44,156		$	10,752		$	33,668		$	44,420
GAAP RATIOS
Loss ratio		57.6	%		55.1	%		55.9	%		57.6	%		58.2	%		58.1	%
Acquisition expense ratio		12.5	%		20.1	%		17.9	%		12.5	%		21.1	%		18.7	%
General and administrative expense ratio		20.2	%		10.1	%		12.9	%		20.2	%		9.1	%		12.1	%
Combined ratio		90.3	%		85.3	%		86.7	%		90.3	%		88.4	%		88.9	%

14

ENDURANCESPECIALTYHOLDINGS LTD.
RETURN ON EQUITYANALYSIS

	FOR THE THREE MONTHS ENDED MARCH 31, 2007
Average common equity[a]	$	2,132,210
Net premiums earned	$	377,045
Combined ratio		86.7	%
Operating margin		13.3	%
Premium leverage		0.18	x
Implied ROAE from underwriting activity		2.4	%
Average cash and invested assets at amortized cost	$	5,596,675
Investment leverage		2.62	x
Year to date investment income yield, pretax		1.3	%
Implied ROAE from investment activity		3.5	%
Financing Costs [b]		(0.5	)%
Implied Pre-tax Operating ROAE, for period		5.4	%

[a]	Average common equity is calculated as the arithmetic average of the beginning and ending common equity balances for the stated periods, which excludes the $200 million liquidation value of the preferred shares.
[b]	Financing costs include interest expense and preferred dividends.

15

ENDURANCE SPECIALTY HOLDINGS LTD.
ANNUALIZED OPERATING & INVESTMENT LEVERAGE

	FOR THE QUARTERS ENDED													YEARS ENDED DECEMBER 31,
		MARCH 31 2007			DEC. 31, 2006			SEPT. 30, 2006			JUNE 30, 2006			2006			2005
Average common equity[a]	$	2,132,210		$	2,007,524		$	1,826,855		$	1,730,262		$	1,885,209		$	1,767,499
Net premiums earned	$	377,045		$	403,715		$	407,975		$	406,678		$	1,638,574		$	1,723,694
Operating leverage		0.18	x		0.20	x		0.22	x		0.24	x		0.87	x		0.98	x
Annualized operating leverage		0.71	x		0.80	x		0.89	x		0.94	x		0.87	x		0.98	x
Avg. cash and invested assets at amortizedcost	$	5,596,675		$	5,496,389		$	5,215,717		$	5,219,192		$	5,275,481		$	4,463,908
Investment leverage		2.62	x		2.74	x		2.86	x		3.02	x		2.80	x		2.53	x

[a] Average common equity is calculated as the arithmetic average of the beginning and ending equity balances for the stated periods and excludes the $200 million liquidation value of the preferred shares.

16

ENDURANCE SPECIALTY HOLDINGS LTD.
INVESTMENT PORTFOLIO
AS OFMARCH 31, 2007

Type of Investment						Fair Value		Percentage
Cash and equivalents[a]					$	504,352		9.0	%
U.S. government and agencies						952,223		17.0	%
Corporate securities						850,683		15.2	%
Foreign government						249,315		4.4	%
Municipals						7,452		0.1	%
Asset-backed securities						579,944		10.3	%
Mortgage-backed securities						2,198,788		39.2	%
Investments in other ventures						267,721		4.8	%
Total					$	5,610,478		100.0	%
Ratings						Fair Value		Percentage
U.S. Government and agencies					$	952,223		18.6	%
AAA/Aaa						3,137,163		61.4	%
AA/Aa						318,315		6.2	%
A/A						359,236		7.0	%
BBB						8,180		0.2	%
Below BBB						62,880		1.2	%
Not Rated						408		0.1	%
Investments in other ventures						267,721		5.3	%
Total					$	5,106,126		100.0	%
Performance								March 31, 2007
Yield[b]								5.5	%
Duration[c]								2.6
		Quarter Ended March 31, 2007		Quarter Ended December 31, 2006		Quarter Ended September 30, 2006		Quarter Ended June 30, 2006
Investment Income
Income from investments in other ventures	$	12,153	$	11,170	$	4,014	$	4,557
Total net investment income	$	74,813	$	72,033	$	63,581	$	60,291

Note:	[a]Cash andequivalents are shown net of investmentspendingsettlement.
	[b]Annualized earned yield excludes realized and unrealized gains and losses on fixed maturity investments.
	[c]Duration excludes investments in other ventures.

17

ENDURANCE SPECIALTY HOLDINGS LTD.
ACTIVITY IN RESERVE FOR LOSSES AND LOSS EXPENSES

		QUARTER ENDED MAR. 31, 2007			QUARTER ENDED DEC. 31, 2006			QUARTER ENDED SEPT. 30, 2006			QUARTER ENDED JUNE 30, 2006			QUARTER ENDED MARCH 31, 2006
Incurred related to:
Current year	$	266,501		$	158,160		$	198,073		$	247,863		$	281,273
Prior years		(55,907	)		(26,740	)		(10,040	)		21,582			(42,541	)
Total incurred	$	210,594		$	131,420		$	188,033		$	269,445		$	238,732
Paid related to:
Current year		($205	)		($34,706	)		($19,698	)		($1,923	)		($6,776	)
Prior years		(138,492	)		(183,233	)		(194,221	)		(185,676	)		(156,623	)
Total paid		($138,697	)		($217,939	)		($213,919	)		($187,599	)		($163,399	)

18

ENDURANCE SPECIALTY HOLDINGS LTD.
ACTIVITY IN RESERVE FOR LOSSES AND LOSS EXPENSES BY SEGMENT

(FAVORABLE)ADVERSEPRIORACCIDENT YEAR DEVELOPMENTDURING THE PERIODENDEDMARCH 31, 2007

	Insurance		Reinsurance		Total Company Sub-total			Deposit Accounting Adjustment [a]	Total Company
Incurred related to prior years
Quarter ended March 31, 2007	($26,507	)	($23,072	)	($49,579	)	$	6,328	($55,907	)

(FAVORABLE)ADVERSEPRIORACCIDENT YEAR DEVELOPMENTDURING THE YEAR ENDEDDECEMBER 31, 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	)
Quarter ended December 31, 2006	(7,523	)	(22,204	)	(29,727	)	(2,987	)	(26,740	)
Year ended December 31, 2006	($54,387	)	($4,989	)	($59,376	)	($1,637	)	($57,739	)

(FAVORABLE)ADVERSEPRIORACCIDENT YEAR DEVELOPMENTDURING THE YEAR ENDEDDECEMBER 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	)

[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.

19

ENDURANCE SPECIALTY HOLDINGS LTD.
ACTIVITY IN RESERVE FOR LOSSES AND LOSS EXPENSES BY DEVELOPMENT TAIL

(FAVORABLE) ADVERSE PRIOR ACCIDENT YEAR DEVELOPMENT

		FOR THE QUARTERS ENDED														FOR THE YEAR ENDED
		MAR. 31, 2007			DEC. 31, 2006			SEPT. 30, 2006			JUNE 30, 2006		MAR. 31, 2006			DEC. 31, 2006
INSURANCE SEGMENT
Short tail[a]		($16,098	)	$	6,508		$	2,142			($5,102	)	($23,746	)		($20,198	)
Long Tail[b]		($10,409	)		($14,031	)		($8,083	)		($7,966	)	($4,109	)		($34,189	)
TOTAL INSURANCE		($26,507	)		($7,523	)		($5,941	)		($13,068	)	($27,855	)		($54,387	)
REINSURANCE SEGMENT
Short tail[a]		($15,338	)		($20,330	)		($4,372	)	$	58,523		($4,412	)	$	29,409
Long Tail[b]		($5,036	)	$	444			($2,117	)		($10,115	)	($8,330	)		($20,118	)
Other[c]		($2,698	)		($2,318	)		($887	)		($6,871	)	($4,204	)		($14,280	)
TOTAL REINSURANCE		($23,072	)		($22,204	)		($7,376	)	$	41,537		($16,946	)		($4,989	)
TOTAL COMPANY      SUBTOTAL		($49,579	)		($29,727	)		($13,317	)	$	28,469		($44,801	)		($59,376	)
DEPOSIT ACCOUNTING      ADJUSTMENT[d]	$	6,328			($2,987	)		($3,277	)	$	6,887		($2,260	)		($1,637	)
REPORTED TOTALS		($55,907	)		($26,740	)		($10,040	)	$	21,582		($42,541	)		($57,739	)

[a]	Short tail business is that for which development typically emerges within a period of several quarters. The Company’s short tail line of business in the Insurance business segment includes its property line of business. The Company’s short tail lines in its Reinsurance business segment include property, catastrophe, marine, aerospace and surety.
[b]	Long tail business is that for which development 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. The Company’s other lines of business included in the Reinsurance business segment are agriculture, personal accident, and 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 underwriting results by segment to the Company’s financial statement presentation.

20

ENDURANCE SPECIALTY HOLDINGS LTD.
ANALYSIS OF UNPAID LOSSES AND LOSS EXPENSE

																									Deposit Accounting Adjustment [a]
																							Total Company					Reported Totals
					Insurance					Reinsurance
		Short Tail			Long Tail		Total				Short Tail			Long Tail			Other		Total
AT MAR. 31, 2007
Case reserves	$	121,095		$	32,998		$	154,093		$	645,790		$	217,718		$	9,760		$	873,268		$	1,027,361		($58,030	)	$	969,331
Total reserves	$	164,454		$	754,080		$	918,534		$	1,029,414		$	815,327		$	165,376		$	2,010,117		$	2,928,651		($138,468	)	$	2,790,183
Case reserves / Total reserves		73.6	%		4.4	%		16.8	%		62.7	%		26.7	%		5.9	%		43.4	%		35.1	%	41.9	%		34.7	%
IBNR / Total reserves		26.4	%		95.6	%		83.2	%		37.3	%		73.3	%		94.1	%		56.6	%		64.9	%	58.1	%		65.3	%
AT DEC. 31, 2006
Case reserves	$	146,138		$	25,941		$	172,079		$	683,118		$	211,940		$	9,031		$	904,089		$	1,076,168		($52,760	)	$	1,023,408
Total reserves	$	182,196		$	683,151		$	865,347		$	1,022,475		$	793,556		$	148,930		$	1,964,961		$	2,830,308		($128,622	)	$	2,701,686
Case reserves / Total reserves		80.2	%		3.8	%		19.9	%		66.8	%		26.7	%		6.1	%		46.0	%		38.0	%	41.0	%		37.9	%
IBNR / Total reserves		19.8	%		96.2	%		80.1	%		33.2	%		73.3	%		93.9	%		54.0	%		62.0	%	59.0	%		62.1	%
AT SEPT. 30, 2006
Case reserves	$	152,447		$	8,303		$	160,750		$	745,512		$	205,928		$	8,764		$	960,204		$	1,120,954		($52,630	)	$	1,068,324
Total reserves	$	193,275		$	615,947		$	809,222		$	1,147,159		$	796,003		$	139,649		$	2,082,811		$	2,892,033		($122,615	)	$	2,769,418
Case reserves / Total reserves		78.9	%		1.3	%		19.9	%		65.0	%		25.9	%		6.3	%		46.1	%		38.8	%	42.9	%		38.6	%
IBNR / Total reserves		21.1	%		98.7	%		80.1	%		35.0	%		74.1	%		93.7	%		53.9	%		61.2	%	57.1	%		61.4	%
AT JUNE 30, 2006
Case reserves	$	153,272		$	9,127		$	162,399		$	773,818		$	181,465		$	8,287		$	963,570		$	1,125,969		($31,308	)	$	1,094,661
Total reserves	$	201,130		$	560,380		$	761,510		$	1,233,673		$	762,543		$	125,362		$	2,121,578		$	2,883,088		($100,285	)	$	2,782,803
Case reserves / Total reserves		76.2	%		1.6	%		21.3	%		62.7	%		23.8	%		6.6	%		45.4	%		39.1	%	31.2	%		39.3	%
IBNR / Total reserves		23.8	%		98.4	%		78.7	%		37.3	%		76.2	%		93.4	%		54.6	%		60.9	%	68.8	%		60.7	%
AT MAR. 31, 2006
Case reserves	$	142,150		$	9,083		$	151,233		$	796,560		$	170,810		$	7,762		$	975,132		$	1,126,365		($15,355	)	$	1,111,010
Total reserves	$	196,312		$	509,582		$	705,894		$	1,208,202		$	725,752		$	121,353		$	2,055,307		$	2,761,201		($72,215	)	$	2,688,986
Case reserves / Total reserves		72.4	%		1.8	%		21.4	%		65.9	%		23.5	%		6.4	%		47.4	%		40.8	%	21.3	%		41.3	%
IBNR / Total reserves		27.6	%		98.2	%		78.6	%		34.1	%		76.5	%		93.6	%		52.6	%		59.2	%	78.7	%		58.7	%

[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.

21

ENDURANCE SPECIALTY HOLDINGS LTD.
DILUTIVE SHARES FOR EPS CALCULATION

		QUARTER ENDED
		MARCH 31,
			2007			2006
DILUTIVE SHARES	Average market price per share	$	35.14		$	32.67
OUTSTANDING:
AS REPORTED	Basic weighted average common shares outstanding		66,613			66,445
	Add: weighted avg. unvested restricted share units		738			705
	Weighted average exercise price per share		—			—
	Proceeds from unrecognized restricted share unit expense	$	8,842		$	16,750
	Less: restricted share units bought back via treasury method		(252	)		(513	)
	Add: weighted avg. dilutive warrants outstanding		7,202			7,202
	Weighted average exercise price per share	$	16.62		$	17.62
	Less: warrants bought back via treasury method		(3,407	)		(3,885	)
	Add: weighted avg. dilutive options outstanding		2,469			3,051
	Weighted average exercise price per share	$	18.35		$	18.21
	Proceeds from unrecognized option expense	$	58		$	324
	Less: options bought back via treasury method		(1,291	)		(1,710	)
	Weighted average dilutive shares outstanding		72,073			71,295

Note: Warrants, options and unvested restricted share units that are anti-dilutive are not included in the calculation of diluted shares outstanding. Warrants, options and unvested restricted share units are anti-dilutive for earnings per share in any period in which there is a net loss and the anti-dilution is reflected in the calculations above as additional treasury method repurchases. Restricted share units are included in the calculation of basic and diluted weighted shares outstanding. The treasury stock method assumes that the proceeds received from the exercise of options or warrants will be used to repurchase the Company’s common shares at the average market price during the period of calculation. SFAS No. 123R also requires that any unrecognized stock based compensation expense that will be recorded in future periods be included as proceeds for purposes of the treasury stock repurchases.

22

ENDURANCE SPECIALTY HOLDINGS LTD.
OPERATING INCOME RECONCILIATION
EARNINGS PER SHARE INFORMATION - AS REPORTED, GAAP

	QUARTER ENDED MARCH 31,
		2007			2006
Net income	$	101,835		$	107,036
Add (Less) after-tax items:
Net foreign exchange losses (gains)		1,541			(2,140	)
Net realized losses on investments		1,820			3,024
Operating income before preferred dividends	$	105,196		$	107,920
Preferred dividends		(3,875	)		($3,875	)
Operating income available to common shareholders	$	101,321		$	104,045
Weighted average common shares outstanding
Basic		66,613			66,445
Dilutive		72,073			71,295
Basic per common share data
Net income available to common shareholders	$	1.47		$	1.55
Add (Less) after-tax items:
Net foreign exchange losses (gains)		0.02			(0.03	)
Net realized losses on investments		0.03			0.05
Operating income available to common shareholders	$	1.52		$	1.57
Diluted per common share data
Net income available to common shareholders	$	1.36		$	1.45
Add (Less) after-tax items:
Net foreign exchange losses (gains)		0.02			(0.03	)
Net realized losses on investments		0.03			0.04
Operating income available to common shareholders	$	1.41		$	1.46

23

ENDURANCE SPECIALTY HOLDINGS LTD.
DILUTIVE SHARES SENSITIVITY ANALYSIS

DILUTIVE SHARES OUSTANDING
Market Price per Share
$	30.00	$	31.00	$	32.00	$	33.00	$	34.00	$	35.00	$	36.00	$	37.00	$	38.00	$	39.00	$	40.00
	70,878		71,054		71,219		71,374		71,520		71,657		71,787		71,910		72,026		72,136		72,241

24

ENDURANCE SPECIALTY HOLDINGS LTD.
BOOK VALUE PER SHARE

			MARCH 31,					DECEMBER 31, 2006
			2007			2006
DILUTIVE COMMON	Price per share at period end	$	35.74		$	32.55		$	36.58
SHARES OUTSTANDING:
AS-IF CONVERTED [a]	Basic common shares outstanding[b]		66,110			66,474			66,702
	Add: unvested restricted share units		642			826			790
	Add: dilutive warrants outstanding		7,202			7,202			7,202
	Weighted average exercise price per share	$	16.62		$	17.62		$	16.87
	Add: dilutive options outstanding		2,377			3,053			2,591
	Weighted average exercise price per share	$	18.47		$	18.23		$	18.50
	Book Value[c]	$	2,166,546		$	1,723,988		$	2,097,874
	Add: proceeds from converted warrants		119,703			126,905			121,504
	Add: proceeds from converted options		43,897			55,650			47,937
	Pro forma book value	$	2,330,146		$	1,906,543		$	2,267,315
	Dilutive shares outstanding		76,331			77,555			77,285
	Basic book value per common share	$	32.77		$	25.93		$	31.45
	Diluted book value per common share	$	30.53		$	24.58		$	29.34
DILUTIVE COMMON	Price per share at period end	$	35.74		$	32.55		$	36.58
SHARES OUTSTANDING:
TREASURY STOCK	Basic common shares outstanding[b]		66,110			66,474			66,702
METHOD
	Add: unvested restricted share units		642			826			790
	Add: dilutive warrants outstanding		7,202			7,202			7,202
	Weighted average exercise price per share	$	16.62		$	17.62		$	16.87
	Less: warrants bought back via treasury method		(3,349	)		(3,899	)		(3,322	)
	Add: dilutive options outstanding		2,377			3,053			2,591
	Weighted average exercise price per share	$	18.47		$	18.23		$	18.50
	Less: options bought back via treasury method		(1,228	)		(1,710	)		(1,309	)
	Dilutive shares outstanding		71,754			71,946			72,654
	Basic book value per common share	$	32.77		$	25.93		$	31.45
	Diluted book value per common share	$	30.19		$	23.96		$	28.87

[a]	The as-if converted method assumes that the proceeds received upon exercise of options and warrants will be retained by the Company and the resulting common shares from exercise will remain outstanding.
[b]	Basic common shares include vested restricted share units.
[c]	Excludes the $200 million liquidation value of the preferred shares.

25

ENDURANCE SPECIALTY HOLDINGS LTD.
SHAREHOLDER RETURN ANALYSIS

	QUARTER ENDED MAR. 31, 2007			YEARS ENDED DECEMBER 31,
				2006			2005			2004			2003
Net income (loss) available to common shareholders	$	97,960		$	482,626			($223,204	)	$	355,584		$	263,437
Dividends paid to common shareholders		(16,564	)		(66,262	)		(61,695	)		(50,346	)		(20,505	)
Shareholders’ equity[a]		2,166,546			2,097,874			1,672,543			1,862,455			1,644,815
Return on beginning equity		4.7	%		28.9	%		(12.0	)%		21.6	%		21.6	%
Dividend payout ratio[b]		0.8	%		4.0	%		3.3	%		3.1	%		1.7	%
Dilutive common shares outstanding		71,754			72,654			72,173			66,729			68,445
Diluted book value per common share	$	30.19		$	28.87		$	23.17		$	27.91		$	24.03
(treasury stock method)
Change in diluted book value per common share		4.6	%		24.6	%		(17.0	)%		16.1	%		10.6	%
Total return to common shareholders [c]		5.4	%		28.6	%		(13.7	)%		19.2	%		12.3	%

[a]	Excludes the $200 million liquidation value of the preferred shares.
[b]	Dividend payout ratio is calculated as dividends paid divided by beginning shareholders’ equity.
[c]	Total return to common shareholders is calculated as the sum of the change in diluted book value per common share and the dividend payout ratio.

26

ENDURANCE SPECIALTY HOLDINGS LTD.
REGULATION G

In presenting the Company’s results, management has included and discussed certain non-GAAP measures. Managementbelieves 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 completeunderstanding of the underlying trends in the Company’sbusiness. However, these measures should not be viewed as a substitute for those determined in accordance with GAAP.

Operating income is an internal performance measure used by the Company in the management of its operations. Operating income represents after-tax operational results excluding, as applicable, after-tax net realized capital gains or losses and after-tax net foreign exchange gains or losses because the amount of these gains or losses is heavily influenced by, and fluctuates in part, according to the availability of market opportunities. The Company believes these amounts are largely independent of its business and underwriting process and including them distorts the analysis of trends in its operations. In addition to presenting net income determined in accordance with GAAP, the Company believes that showing operating income enables investors, analysts, rating agencies and other users of its financial information to more easily analyze the Company’s results of operations in a manner similar to how management analyzes the Company’s underlying business performance. Operating income should not be view ed as a substitute for GAAP net income. Please see page 23 for a reconciliation of operating income to net income.

Return on Average Equity (ROAE) is comprised using the averagecommon equity calculated as the arithmeticaverage of the beginning and ending common equity balances for stated periods. Return on Beginning Equity (ROBE) is comprised using the beginningcommon equity for stated periods. The Companypresents various measures of Return on Equity that are commonlyrecognized as a standard of performance by investors,analysts, rating agencies and other users of its financialinformation.

Investment yield is provided by the Company’sinvestmentmanagers and is calculated by dividing net investment income by averageinvested assets at amortized cost. The Company utilizes and presents the investment yield in order to better disclose the performance of the Company’sinvestments and to show the components of the Company’s ROE.

The Company has included diluted book value per common share because it takes into account the effect of dilutivesecurities;therefore, the Companybelieves it is a better measure of calculatingshareholder returns than book value per common share. Please see page 25 for a reconciliation of diluted book value per common share to basic book value per common share.

27