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

Exhibit 99.2

Endurance Specialty Holdings Ltd.

INVESTOR FINANCIAL SUPPLEMENT

SECOND QUARTER 2008

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 conjunction with other documents filed by Endurance Specialty Holdings Ltd. pursuant to the Securities Act of 1933 and the Securities Exchange 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. Endurance Operating Income Profile	5
	e. Segment Distribution	7
	f. Segment Data	8
	g. Deposit Accounting Adjustment Impacts on Segment Data	20
III. Other Financial Information
	a. Return on Equity Analysis	22
	b. ROE Component Analysis - Operating and Investment Leverage	23
	c. Investment Portfolio Information	24
	d. Structured Securities Detail	25
IV. Loss Reserve Analysis
	a. Activity in Reserve for Losses and Loss Expenses	26
	b. Activity in Reserve for Losses and Loss Expenses by Segment	27
	c. Activity in Reserve for Losses and Loss Expenses by Development Tail	28
	d. Analysis of Unpaid Losses and Loss Expense	29
V. Shareholder Return Analysis
	a. Weighted Average Dilutive Shares Outstanding	30
	b. Operating Income Reconciliation	31
	c. Dilutive Shares Sensitivity Analysis	32
	d. Book Value Per Share Analysis	33
	e. Growth in Book Value Per Share Analysis	34
VI. Regulation G		35

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, 2007.

ENDURANCE SPECIALTY HOLDINGS LTD.
BASIS OF PRESENTATION

DEFINITIONS AND PRESENTATION

• All financial information contained herein is unaudited, except the balance sheet and income statement data for the years ended December 31, 2007, December 31, 2006 and December 31, 2005, which was derived from the Company’s audited financial statements.

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

• As used in this financial supplement, “common shares” refers to our ordinary shares and class A shares, collectively.

• 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.

• NM - Not meaningful; NA - Not Applicable; LTM - Latest twelve months.

i

ENDURANCE SPECIALTY HOLDINGS LTD.
CORPORATE ORGANIZATION CHART

ii

ENDURANCE SPECIALTY HOLDINGS LTD.
CONSOLIDATED FINANCIAL HIGHLIGHTS

		QUARTER ENDED JUNE 30,						SIX MONTHS ENDED JUNE 30,						Previous Quarter Change			Previous Year to Date Change
		2008			2007			2008			2007
HIGHLIGHTS	Net income	$	103,338		$	135,341		$	181,149		$	237,176			(23.6	)%		(23.6	)%
	Net income available to common shareholders		99,463			131,466			173,399			229,426			(24.3	)%		(24.4	)%
	Operating income[a]		102,678			141,177			192,205			246,373			(27.3	)%		(22.0	)%
	Operating income available to common shareholders[a]		98,803			137,302			184,455			238,623			(28.0	)%		(22.7	)%
	Operating cash flow		127,085			118,870			269,823			240,675			6.9	%		12.1	%
	Gross premiums written		518,063			506,803			1,386,654			1,080,094			2.2	%		28.4	%
	Net premiums earned		453,085			417,551			825,128			794,596			8.5	%		3.8	%
	Total assets		7,884,286			7,225,847			7,884,286			7,225,847			9.1	%		9.1	%
	Total shareholders’ equity		2,533,895			2,379,846			2,533,895			2,379,846			6.5	%		6.5	%
PER SHARE	Basic earnings per common share
AND SHARES DATA	Net income (as reported)	$	1.70		$	2.01		$	2.95		$	3.47			(15.3	)%		(14.9	)%
	Operating income (as reported)[a]	$	1.69		$	2.10		$	3.14		$	3.61			(19.5	)%		(13.0	)%
	Diluted earnings per common share
	Net income (as reported)	$	1.56		$	1.85		$	2.70		$	3.22			(15.8	)%		(16.1	)%
	Operating income (as reported)[a]	$	1.55		$	1.94		$	2.87		$	3.35			(19.9	)%		(14.2	)%
As Reported	Weighted average common shares outstanding		58,558			65,531			58,691			66,069			(10.6	)%		(11.2	)%
	Weighted average common shares outstanding and dilutive potential common shares		63,712			70,930			64,196			71,294			(10.2	)%		(10.0	)%
Book Value Per	Book value[b]	$	39.97		$	33.67		$	39.97		$	33.67			18.7	%		18.7	%
Common Share	Diluted book value (treasury stock method)[b]	$	36.72		$	30.56		$	36.72		$	30.56			20.1	%		20.1	%
FINANCIAL RATIOS	Return on average common equity (ROAE), net income[c]		4.3	%		6.0	%		7.5	%		10.7	%		(1.8	)		(3.3	)
	ROAE, operating income[a] [c]		4.2	%		6.3	%		7.9	%		11.2	%		(2.1	)		(3.2	)
	Return on beg. common equity (ROBE), net income[c]		4.3	%		6.1	%		7.5	%		10.9	%		(1.8	)		(3.4	)
	ROBE, operating income[a]		4.2	%		6.3	%		8.0	%		11.4	%		(2.1	)		(3.4	)
	Annualized ROAE, net income[c]		17.0	%		24.2	%		14.9	%		21.5	%		(7.2	)		(6.5	)
	Annualized ROAE, operating income[a] [c]		16.9	%		25.3	%		15.9	%		22.3	%		(8.4	)		(6.4	)
	Annualized ROBE, net income		17.0	%		24.3	%		15.0	%		21.9	%		(7.3	)		(6.9	)
	Annualized ROBE, operating income[a]		16.9	%		25.3	%		16.0	%		22.7	%		(8.4	)		(6.8	)
	Annualized investment yield		4.4	%		5.7	%		3.9	%		5.5	%		(1.3	)		(1.6	)
	Loss ratio		60.7	%		49.6	%		56.3	%		52.6	%		11.1			3.7
GAAP	Acquisition expense ratio		16.7	%		17.7	%		18.2	%		17.8	%		(1.0	)		0.4
	General and administrative expense ratio		11.6	%		11.7	%		12.4	%		12.3	%		(0.1	)		0.1
	Combined ratio		89.0	%		79.0	%		86.9	%		82.7	%		10.0			4.2
STAT	Acquisition expense ratio		18.2	%		19.1	%		15.1	%		17.4	%		(0.9	)		(2.3	)
	General and administrative expense ratio		12.5	%		10.8	%		9.7	%		9.9	%		1.7			(0.2	)
	Combined ratio		91.4	%		79.5	%		81.1	%		79.9	%		11.9			1.2

[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 31 for a reconciliation to net income.
[b]	For detailed calculations please refer to page 33.
[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
	JUNE 30, 2008				MAR. 31, 2008				DEC. 31, 2007				SEPT. 30, 2007				JUNE 30, 2007				JUNE 30, 2006
UNDERWRITING REVENUES
Gross premiums written		$	518,063			$	868,591			$	277,750			$	423,271			$	506,803			$	451,253
Premiums ceded			(48,678	)			(227,804	)			(62,282	)			(45,655	)			(58,577	)			(42,575	)
Net premiums written		$	469,385			$	640,787			$	215,468			$	377,616			$	448,226			$	408,678
Change in unearned premiums			(16,300	)			(268,744	)			184,994				22,126				(30,675	)			(2,000	)
Net premiums earned		$	453,085			$	372,043			$	400,462			$	399,742			$	417,551			$	406,678
Other underwriting income (loss)			1,933				(740	)			9,044				1,697				(3,203	)			(1,992	)
Total underwriting revenues		$	455,018			$	371,303			$	409,506			$	401,439			$	414,348			$	404,686
UNDERWRITING EXPENSES
Losses and loss expenses		$	275,325			$	189,502			$	144,852			$	186,456			$	207,179			$	269,445
Acquisition expenses			75,636				74,374				89,501				76,604				73,941				79,197
General and administrative expenses			52,493				50,044				64,655				55,121				48,664				46,068
Total underwriting expenses		$	403,454			$	313,920			$	299,008			$	318,181			$	329,784			$	394,710
Underwriting income		$	51,564			$	57,383			$	110,498			$	83,258			$	84,564			$	9,976
OTHER OPERATING REVENUE
Net investment income		$	60,482			$	46,878			$	65,310			$	62,605			$	78,548			$	60,291
Interest expense			(7,534	)			(7,534	)			(7,532	)			(7,533	)			(7,531	)			(7,459	)
Amortization of intangibles			(2,637	)			(2,688	)			(1,905	)			(1,127	)			(1,127	)			(1,158	)
Total other operating revenue		$	50,311			$	36,656			$	55,873			$	53,945			$	69,890			$	51,674
INCOME BEFORE OTHER ITEMS		$	101,875			$	94,039			$	166,371			$	137,203			$	154,454			$	61,650
OTHER
Net foreign exchange gains (losses)		$	5,621			($	3,107	)		($	6,729	)		($	700	)		$	2,072			$	11,997
Net realized losses on investments			(4,013	)			(11,484	)			(4,125	)			(3,055	)			(9,038	)			(8,729	)
Income tax expense			(145	)			(1,637	)			(2,987	)			(2,047	)			(12,147	)			(868	)
NET INCOME		$	103,338			$	77,811			$	152,530			$	131,401			$	135,341			$	64,050
Preferred dividends			(3,875	)			(3,875	)			(3,875	)			(3,875	)			(3,875	)			(3,875	)
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS		$	99,463			$	73,936			$	148,655			$	127,526			$	131,466			$	60,175
KEY RATIOS/PER SHARE DATA
Loss ratio			60.7	%			50.9	%			36.2	%			46.6	%			49.6	%			66.3	%
Acquisition expense ratio			16.7	%			20.0	%			22.3	%			19.2	%			17.7	%			19.5	%
General and administrative expense ratio			11.6	%			13.5	%			16.2	%			13.8	%			11.7	%			11.3	%
Combined ratio			89.0	%			84.4	%			74.7	%			79.6	%			79.0	%			97.1	%
Weighted average basic shares outstanding			58,558				58,823				62,225				64,468				65,531				66,398
Weighted average dilutive shares outstanding			63,712				64,503				68,326				70,431				70,930				71,109
Basic earnings per common share		$	1.70			$	1.26			$	2.39			$	1.98			$	2.01			$	0.91
Diluted earnings per common share		$	1.56			$	1.15			$	2.18			$	1.81			$	1.85			$	0.85
ROAE, net income[a]			4.3	%			3.2	%			6.4	%			5.7	%			6.0	%			3.5	%

[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 - YTD

	SIX MONTHS ENDED												YEAR ENDED
	JUNE 30, 2008				JUNE 30, 2007				JUNE 30, 2006				DEC. 31, 2007				DEC. 31, 2006
UNDERWRITING REVENUES
Gross premiums written		$	1,386,654			$	1,080,094			$	1,022,634			$	1,781,115			$	1,789,642
Premiums ceded			(276,482	)			(98,203	)			(70,947	)			(206,140	)			(204,078	)
Net premiums written		$	1,110,172			$	981,891			$	951,687			$	1,574,975			$	1,585,564
Change in unearned premiums			(285,044	)			(187,295	)			(124,803	)			19,825				53,010
Net premiums earned		$	825,128			$	794,596			$	826,884			$	1,594,800			$	1,638,574
Other underwriting income (loss)			1,193				(9,139	)			1,509				1,602				1,390
Total underwriting revenues		$	826,321			$	785,457			$	828,393			$	1,596,402			$	1,639,964
UNDERWRITING EXPENSES
Losses and loss expenses		$	464,827			$	417,773			$	508,177			$	749,081			$	827,630
Acquisition expenses			150,010				141,471				154,445				307,576				317,489
General and administrative expenses			102,537				97,493				89,959				217,269				190,373
Total underwriting expenses		$	717,374			$	656,737			$	752,581			$	1,273,926			$	1,335,492
Underwriting income		$	108,947			$	128,720			$	75,812			$	322,476			$	304,472
OTHER OPERATING REVENUE
Net investment income		$	107,360			$	153,361			$	121,835			$	281,276			$	257,449
Interest expense			(15,068	)			(15,060	)			(14,985	)			(30,125	)			(30,041	)
Amortization of intangibles			(5,325	)			(2,254	)			(2,316	)			(5,286	)			(4,600	)
Total other operating revenue		$	86,967			$	136,047			$	104,534			$	245,865			$	222,808
INCOME BEFORE OTHER ITEMS		$	195,914			$	264,767			$	180,346			$	568,341			$	527,280
OTHER
Net foreign exchange gains (losses)		$	2,514			($	541	)		$	14,883			($	7,970	)		$	21,021
Net realized losses on investments			(15,497	)			(11,122	)			(12,059	)			(18,302	)			(20,342	)
Income tax expense			(1,782	)			(15,928	)			(12,084	)			(20,962	)			(29,833	)
NET INCOME		$	181,149			$	237,176			$	171,086			$	521,107			$	498,126
Preferred dividends			(7,750	)			(7,750	)			(7,750	)			(15,500	)			(15,500	)
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS		$	173,399			$	229,426			$	163,336			$	505,607			$	482,626
KEY RATIOS/PER SHARE DATA
Loss ratio			56.3	%			52.6	%			61.5	%			47.0	%			50.5	%
Acquisition expense ratio			18.2	%			17.8	%			18.7	%			19.3	%			19.4	%
General and administrative expense ratio			12.4	%			12.3	%			10.9	%			13.6	%			11.6	%
Combined ratio			86.9	%			82.7	%			91.1	%			79.9	%			81.5	%
Weighted average basic shares outstanding			58,691				66,069				66,421				64,697				66,436
Weighted average dilutive shares outstanding			64,196				71,294				71,243				70,540				71,755
Basic earnings per common share		$	2.95			$	3.47			$	2.46			$	7.82			$	7.26
Diluted earnings per common share		$	2.70			$	3.22			$	2.29			$	7.17			$	6.73
ROAE, net income [a]			7.5	%			10.7	%			9.6	%			22.9	%			25.6	%

[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

	JUNE 30, 2008				MAR. 31, 2008				DEC. 31, 2007				SEPT. 30, 2007				JUNE 30, 2007				MAR. 31, 2007
ASSETS
Cash and cash equivalents		$	656,158			$	549,692			$	567,825			$	600,042			$	625,662			$	518,800
Fixed maturity investments available for sale, at fair value			4,604,653				4,710,467				4,660,236				4,803,808				4,728,942				4,838,405
Other investments			366,886				369,347				358,128				343,926				281,241				267,721
Premiums receivable, net			1,101,610				1,088,998				723,832				768,162				839,106				808,064
Deferred acquisition costs			194,390				184,646				168,968				212,000				198,537				186,374
Securities lending collateral			153,062				241,343				173,041				195,727				173,884				217,698
Prepaid reinsurance premiums			205,454				268,442				122,594				92,466				99,446				92,722
Losses recoverable			270,053				150,665				187,354				96,008				66,377				55,579
Accrued investment income			37,930				33,650				38,543				36,075				40,443				36,792
Goodwill and intangible assets			205,635				208,202				206,632				69,388				70,456				69,415
Deferred tax assets			14,788				17,702				—				46,926				57,993				61,385
Receivable on pending investment sales, net			—				1,427				2,783				53,061				—				—
Other assets			73,667				50,630				60,791				50,852				43,760				37,508
TOTAL ASSETS		$	7,884,286			$	7,875,211			$	7,270,727			$	7,368,441			$	7,225,847			$	7,190,463
LIABILITIES
Reserve for losses and loss expenses		$	3,080,274			$	2,928,427			$	2,892,224			$	2,841,810			$	2,767,525			$	2,790,183
Reserve for unearned premiums			1,222,830				1,269,318				855,085				999,046				1,027,229				987,748
Deposit liabilities			89,718				105,115				108,943				130,272				143,073				155,380
Reinsurance balances payable			272,901				224,223				162,899				153,815				194,012				147,745
Securities lending payable			153,062				241,343				173,041				195,727				173,884				217,698
Debt			448,793				448,978				448,753				447,235				447,213				447,192
Investments pending settlement, net			—				—				—				—				31,767				14,448
Deferred tax liability			—				—				922				—				—				—
Other liabilities			82,813				119,633				116,601				74,915				61,298				63,523
TOTAL LIABILITIES		$	5,350,391			$	5,337,037			$	4,758,468			$	4,842,820			$	4,846,001			$	4,823,917
SHAREHOLDERS’ EQUITY
Preferred shares Series A, non-cumulative		$	8,000			$	8,000			$	8,000			$	8,000			$	8,000			$	8,000
Common shares			59,642				60,098				60,364				64,081				64,591				65,968
Additional paid-in capital			1,107,219				1,127,594				1,165,300				1,355,468				1,378,685				1,431,623
Accumulated other comprehensive (loss) income			(5,282	)			62,705				57,725				10,652				(47,525	)			(131	)
Retained earnings			1,364,316				1,279,777				1,220,870				1,087,420				976,095				861,086
TOTAL SHAREHOLDERS’ EQUITY		$	2,533,895			$	2,538,174			$	2,512,259			$	2,525,621			$	2,379,846			$	2,366,546
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$	7,884,286			$	7,875,211			$	7,270,727			$	7,368,441			$	7,225,847			$	7,190,463
Book value per common share		$	39.97			$	39.83			$	38.94			$	36.21			$	33.67			$	32.77
Diluted book value per common share (treasury stock method)		$	36.72			$	36.00			$	35.05			$	32.81			$	30.56			$	30.19
RATIOS
Debt-to-capital			15.0	%			15.0	%			15.2	%			15.0	%			15.8	%			15.9	%

4

ENDURANCE SPECIALTY HOLDINGS LTD.
Annual Aggregate Risk Curve

Endurance Operating Income Profile

as of July 1, 2008

Operating Result - $ Millions

The above chart represents a cumulative analysis of our in-force underwriting portfolio on a full year basis based on thousands of potential scenarios. Loss years are driven largely by the occurrence of natural catastrophes and incorrect pricing of other property and casualty exposures. The operating income depicted includes net premiums earned plus net investment income, acquisition expenses and G&A expenses. The operating income depicted excludes the effects of income tax (expenses) benefits, amortization of intangibles and interest expense. Forecasted investment income, acquisition and G&A expenses are held constant across all scenarios. Losses included above are net of reinsurance. Our stated objective is to maintain a risk management tolerance that limits our loss in a 1-in-100 year year to be no more than 25% of our shareholders' equity.

Changes in Endurance’s underwriting portfolio, investment portfolio, 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 10-K for the year ended December 31, 2007.

5

ENDURANCE SPECIALTY HOLDINGS LTD.
Annual Aggregate Risk Curve

Annual Aggregate Risk Curve Comparison

										Change from July 1, 2007 - June 30, 2008 to July 1, 2008 - June 30, 2009					Change from Jan. 1, 2008 - Dec. 31, 2008 to July 1, 2008 - June 30, 2009
(in millions)	July 1, 2007 - June 30, 2008			Jan. 1, 2008 - Dec. 31, 2008			July 1, 2008 - June 30, 2009			$ Change			% Change		$ Change			% Change
Median Result	$	391		$	481		$	380		($	11	)	(2.9	%)	($	101	)	(26.6	%)
Average Result		342			421			330			(12	)	(3.6	%)		(91	)	(27.6	%)
1 in 10 year annual gain		64			34			61			(3	)	(4.9	%)		27		44.3	%
1 in 25 year annual loss		(141	)		(121	)		(209	)		(68	)	32.5	%		(88	)	42.1	%
1 in 50 year annual loss		(319	)		(248	)		(330	)		(11	)	3.3	%		(82	)	24.8	%
1 in 100 year annual loss		(468	)		(438	)		(487	)		(19	)	3.9	%		(49	)	10.1	%
1 in 250 year annual loss		(694	)		(659	)		(729	)		(35	)	4.8	%		(70	)	9.6	%
1 in 500 year annual loss		(884	)		(775	)		(882	)		2		(0.2	%)		(107	)	12.1	%

Changes in Endurance’s underwriting portfolio, investment portfolio, 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 10-K for the year ended December 31, 2007.

6

ENDURANCE SPECIALTY HOLDINGS LTD.
SEGMENT DISTRIBUTION
FOR THE SIX MONTHS ENDED JUNE 30, 2008

Gross Premiums Written = $1,389 million [a]
Source of Business	Business Segments
Broker Distribution - Insurance	Broker Distribution - Reinsurance

[a]	Prior to deposit accounting adjustments.
[b]	Other specialty includes the agriculture line in the Insurance segment and agriculture, marine, aerospace and surety and other in the Reinsurance segment.

7

ENDURANCE SPECIALTY HOLDINGS LTD.
CONSOLIDATED SEGMENT DATA
FOR THE QUARTER ENDED JUNE 30, 2008

	Insurance				Reinsurance				Total Company Sub-total				Deposit Accounting Adjustment [a]				Reported Totals
UNDERWRITING REVENUES
Gross premiums written		$	271,973			$	246,386			$	518,359			($	296	)		$	518,063
Net premiums written		$	234,390			$	235,291			$	469,681			($	296	)		$	469,385
Net premiums earned		$	245,383			$	210,001			$	455,384			($	2,299	)		$	453,085
Other underwriting income			—				—				—				1,933				1,933
Total underwriting revenues		$	245,383			$	210,001			$	455,384			($	366	)		$	455,018
UNDERWRITING EXPENSES
Losses and loss expenses		$	188,171			$	86,737			$	274,908			$	417			$	275,325
Acquisition expenses			29,000				47,499				76,499				(863	)			75,636
General and administrative expenses			25,071				27,422				52,493				—				52,493
Total expenses		$	242,242			$	161,658			$	403,900			($	446	)		$	403,454
UNDERWRITING INCOME		$	3,141			$	48,343			$	51,484			$	80			$	51,564
GAAP RATIOS
Loss ratio			76.7	%			41.3	%			60.4	%							60.7	%
Acquisition expense ratio			11.8	%			22.6	%			16.8	%							16.7	%
General and administrative expense ratio			10.2	%			13.1	%			11.5	%							11.6	%
Combined ratio			98.7	%			77.0	%			88.7	%							89.0	%
STATUTORY RATIOS
Loss ratio			76.7	%			41.3	%			60.4	%							60.7	%
Acquisition expense ratio			13.8	%			22.6	%			18.2	%							18.2	%
General and administrative expense ratio			13.4	%			11.7	%			12.5	%							12.5	%
Combined ratio			103.9	%			75.6	%			91.1	%							91.4	%

[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

ENDURANCE SPECIALTY HOLDINGS LTD.
CONSOLIDATED FINANCIAL RATIOS
FOR THE QUARTER ENDED JUNE 30, 2008

	Insurance			Reinsurance			Total Company Sub-total			Deposit Accounting Adjustment [a]		Reported Totals
AS REPORTED
GAAP RATIOS
Loss ratio		76.7	%		41.3	%		60.4	%				60.7	%
Acquisition expense ratio		11.8	%		22.6	%		16.8	%				16.7	%
General and administrative expense ratio		10.2	%		13.1	%		11.5	%				11.6	%
Combined ratio		98.7	%		77.0	%		88.7	%		NM		89.0	%
EFFECT OF PRIOR ACCIDENT YEAR RESERVE DEVELOPMENT FAVORABLE / (UNFAVORABLE)
GAAP RATIOS
Loss ratio		10.4	%		15.7	%		12.9	%		NM		12.4	%
NET OF PRIOR ACCIDENT YEAR RESERVE DEVELOPMENT
GAAP RATIOS
Loss ratio		87.1	%		57.0	%		73.3	%				73.1	%
Acquisition expense ratio		11.8	%		22.6	%		16.8	%				16.7	%
General and administrative expense ratio		10.2	%		13.1	%		11.5	%				11.6	%
Combined ratio		109.1	%		92.7	%		101.6	%		NM		101.4	%

[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

ENDURANCE SPECIALTY HOLDINGS LTD.
INSURANCE SEGMENT DATA

	FOR THE QUARTERS ENDED
	JUNE 30, 2008				MAR. 31, 2008				DEC. 31, 2007				SEPT. 30, 2007				JUNE 30, 2007				JUNE 30, 2006
UNDERWRITING REVENUES
Gross premiums written		$	271,973			$	585,134			$	216,510			$	180,046			$	197,967			$	159,223
Net premiums written		$	234,390			$	356,141			$	154,476			$	137,404			$	152,000			$	123,181
Net premiums earned		$	245,383			$	167,982			$	137,060			$	130,640			$	124,057			$	88,353
UNDERWRITING EXPENSES
Losses and loss expenses		$	188,171			$	130,950			$	93,553			$	69,709			$	63,422			$	70,168
Acquisition expenses			29,000				23,117				22,145				19,542				16,528				6,532
General and administrative expenses			25,071				20,561				27,200				21,988				18,592				13,823
Total expenses		$	242,242			$	174,628			$	142,898			$	111,239			$	98,542			$	90,523
UNDERWRITING INCOME (LOSS)		$	3,141			($	6,646	)		($	5,838	)		$	19,401			$	25,515			($	2,170	)
GAAP RATIOS
Loss ratio			76.7	%			78.0	%			68.3	%			53.4	%			51.1	%			79.4	%
Acquisition expense ratio			11.8	%			13.8	%			16.2	%			14.9	%			13.3	%			7.4	%
General and administrative expense ratio			10.2	%			12.2	%			19.8	%			16.8	%			15.0	%			15.7	%
Combined ratio			98.7	%			104.0	%			104.3	%			85.1	%			79.4	%			102.5	%
STATUTORY RATIOS
Loss ratio			76.7	%			78.0	%			68.3	%			53.4	%			51.1	%			79.4	%
Acquisition expense ratio			13.8	%			7.7	%			16.9	%			17.4	%			13.9	%			8.6	%
General and administrative expense ratio			13.4	%			5.5	%			18.1	%			15.9	%			12.0	%			9.3	%
Combined ratio			103.9	%			91.2	%			103.3	%			86.7	%			77.0	%			97.3	%

10

ENDURANCE SPECIALTY HOLDINGS LTD.
REINSURANCE SEGMENT DATA

	FOR THE QUARTERS ENDED
	JUNE 30, 2008				MAR. 31, 2008				DEC. 31, 2007				SEPT. 30, 2007				JUNE 30, 2007				JUNE 30, 2006
UNDERWRITING REVENUES
Gross premiums written		$	246,386			$	285,478			$	66,039			$	243,787			$	328,815			$	338,142
Net premiums written		$	235,291			$	286,667			$	65,791			$	240,774			$	316,205			$	331,609
Net premiums earned		$	210,001			$	205,735			$	267,772			$	275,776			$	324,318			$	368,496
UNDERWRITING EXPENSES
Losses and loss expenses		$	86,737			$	61,202			$	42,134			$	119,798			$	171,172			$	240,276
Acquisition expenses			47,499				51,157				70,641				58,478				64,555				86,371
General and administrative expenses			27,422				29,483				37,455				33,133				30,072				32,245
Total expenses		$	161,658			$	141,842			$	150,230			$	211,409			$	265,799			$	358,892
UNDERWRITING INCOME		$	48,343			$	63,893			$	117,542			$	64,367			$	58,519			$	9,604
GAAP RATIOS
Loss ratio			41.3	%			29.7	%			15.7	%			43.5	%			52.8	%			65.2	%
Acquisition expense ratio			22.6	%			24.9	%			26.4	%			21.2	%			19.9	%			23.4	%
General and administrative expense ratio			13.1	%			14.3	%			14.0	%			12.0	%			9.3	%			8.8	%
Combined ratio			77.0	%			68.9	%			56.1	%			76.7	%			82.0	%			97.4	%
STATUTORY RATIOS
Loss ratio			41.3	%			29.7	%			15.7	%			43.5	%			52.8	%			65.2	%
Acquisition expense ratio			22.6	%			19.4	%			47.1	%			27.4	%			21.8	%			22.6	%
General and administrative expense ratio			11.7	%			10.3	%			56.9	%			13.8	%			9.5	%			9.7	%
Combined ratio			75.6	%			59.4	%			119.7	%			84.7	%			84.1	%			97.5	%

Note: For internal management reporting purposes, underwriting results by segment are presented on the basis of applying reinsurance accounting to all reinsurance contracts written. Ho 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. For the impact of deposit accounting segment results, refer to page 20.

11

ENDURANCE SPECIALTY HOLDINGS LTD.
SEGMENT GROSS PREMIUMS WRITTEN BY LINE OF BUSINESS

	FOR THE QUARTERS ENDED
	JUNE 30, 2008				MAR. 31, 2008				DEC. 31, 2007				SEPT. 30, 2007				JUNE 30, 2007				JUNE 30, 2006
INSURANCE SEGMENT
Property		$	52,360			$	31,183			$	37,905			$	28,379			$	40,835			$	52,591
Casualty			38,737				25,124				25,851				30,133				42,343				42,877
Healthcare liability			25,485				16,492				15,256				30,262				28,054				31,047
Workers’ compensation			69,888				83,480				73,054				70,398				57,142				6,431
Agriculture			50,921				413,419				42,242				—				—
Professional lines			34,582				15,436				22,202				20,874				29,593				26,277
TOTAL INSURANCE		$	271,973			$	585,134			$	216,510			$	180,046			$	197,967			$	159,223
REINSURANCE SEGMENT
Casualty		$	36,244			$	69,301			$	15,301			$	66,006			$	27,788			$	77,188
Property			34,886				36,248				14,212				112,407				65,476				49,998
Catastrophe			130,217				105,234				13,499				43,684				147,506				102,763
Agriculture			5,822				10,911				7,230				6,917				24,118				42,373
Aerospace and Marine			24,250				36,536				11,660				9,179				32,483				40,120
Surety and other specialty			14,967				27,248				4,137				5,594				31,444				25,700
TOTAL REINSURANCE		$	246,386			$	285,478			$	66,039			$	243,787			$	328,815			$	338,142
TOTAL COMPANY SUBTOTAL		$	518,359			$	870,612			$	282,549			$	423,833			$	526,782			$	497,365
DEPOSIT ACCOUNTING ADJUSTMENT[a]			(296	)			(2,021	)			(4,799	)			(562	)			(19,979	)			(46,112	)
REPORTED TOTALS		$	518,063			$	868,591			$	277,750			$	423,271			$	506,803			$	451,253

[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

ENDURANCE SPECIALTY HOLDINGS LTD.
SEGMENT NET PREMIUMS WRITTEN BY LINE OF BUSINESS

	FOR THE QUARTERS ENDED
	JUNE 30, 2008				MAR. 31, 2008				DEC. 31, 2007				SEPT. 30, 2007				JUNE 30, 2007				JUNE 30, 2006
INSURANCE SEGMENT
Property		$	36,641			$	15,003			$	16,827			$	7,689			$	17,262			$	26,699
Casualty			34,953				15,113				16,144				16,467				26,815				33,113
Healthcare liability			25,169				16,492				15,256				30,262				28,054				31,047
Workers’ compensation			63,482				75,906				66,428				64,131				52,999				6,045
Agriculture			44,193				222,400				21,115				—				—				—
Professional lines			29,952				11,227				18,706				18,855				26,870				26,277
TOTAL INSURANCE		$	234,390			$	356,141			$	154,476			$	137,404			$	152,000			$	123,181
REINSURANCE SEGMENT
Casualty		$	36,273			$	70,503			$	14,908			$	65,946			$	27,610			$	76,004
Property			34,886				36,220				14,212				112,398				67,074				49,998
Catastrophe			122,231				105,156				13,499				41,025				137,720				99,238
Agriculture			5,187				10,911				7,230				7,028				22,018				42,373
Aerospace and Marine			21,916				36,626				11,805				8,390				31,030				38,555
Surety and other specialty			14,798				27,251				4,137				5,987				30,753				25,441
TOTAL REINSURANCE		$	235,291			$	286,667			$	65,791			$	240,774			$	316,205			$	331,609
TOTAL COMPANY SUBTOTAL		$	469,681			$	642,808			$	220,267			$	378,178			$	468,205			$	454,790
DEPOSIT ACCOUNTING ADJUSTMENT[a]			(296	)			(2,021	)			(4,799	)			(562	)			(19,979	)			(46,112	)
REPORTED TOTALS		$	469,385			$	640,787			$	215,468			$	377,616			$	448,226			$	408,678

   [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

ENDURANCE SPECIALTY HOLDINGS LTD.
CONSOLIDATED SEGMENT DATA
FOR THE SIX MONTHS ENDED JUNE 30, 2008

	Insurance				Reinsurance				Total Company Sub-total			Deposit Accounting Adjustment [a]				Reported Totals
UNDERWRITING REVENUES
Gross premiums written		$	857,107			$	531,864		$	1,388,971			($	2,317	)	$	1,386,654
Net premiums written		$	590,531			$	521,958		$	1,112,489			($	2,317	)	$	1,110,172
Net premiums earned		$	413,364			$	415,737		$	829,101			($	3,973	)	$	825,128
Other underwriting income			—				—			—				1,193			1,193
Total underwriting revenues		$	413,364			$	415,737		$	829,101			($	2,780	)	$	826,321
UNDERWRITING EXPENSES
Losses and loss expenses		$	319,122			$	147,937		$	467,059			($	2,232	)	$	464,827
Acquisition expenses			52,117				98,655			150,772				(762	)		150,010
General and administrative expenses			45,632				56,905			102,537				—			102,537
Total expenses		$	416,871			$	303,497		$	720,368			($	2,994	)	$	717,374
UNDERWRITING (LOSS) INCOME		($	3,507	)		$	112,240		$	108,733			$	214		$	108,947
GAAP RATIOS
Loss ratio			77.2	%			35.6	%		56.3	%						56.3	%
Acquisition expense ratio			12.6	%			23.7	%		18.2	%						18.2	%
General and administrative expense ratio			11.0	%			13.7	%		12.4	%						12.4	%
Combined ratio			100.8	%			73.0	%		86.9	%						86.9	%
STATUTORY RATIOS
Loss ratio			77.2	%			35.6	%		56.3	%						56.3	%
Acquisition expense ratio			10.1	%			20.8	%		15.1	%						15.1	%
General and administrative expense ratio			8.7	%			10.9	%		9.7	%						9.7	%
Combined ratio			96.0	%			67.3	%		81.1	%						81.1	%

[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.

14

ENDURANCE SPECIALTY HOLDINGS LTD.
CONSOLIDATED FINANCIAL RATIOS
FOR THE SIX MONTHS ENDED JUNE 30, 2008

	Insurance		Reinsurance		Total Company Sub-total		Deposit Accounting Adjustment [a]	Reported Totals
AS REPORTED
GAAP RATIOS
Loss ratio	77.2	%	35.6	%	56.3	%		56.3	%
Acquisition expense ratio	12.6	%	23.7	%	18.2	%		18.2	%
General and administrative expense ratio	11.0	%	13.7	%	12.4	%		12.4	%
Combined ratio	100.8	%	73.0	%	86.9	%	NM	86.9	%
EFFECT OF PRIOR ACCIDENT YEAR RESERVE DEVELOPMENT FAVORABLE / (UNFAVORABLE)
GAAP RATIOS
Loss ratio	7.1	%	16.5	%	11.8	%	NM	11.8	%
NET OF PRIOR ACCIDENT YEAR RESERVE DEVELOPMENT
GAAP RATIOS
Loss ratio	84.3	%	52.1	%	68.1	%		68.1	%
Acquisition expense ratio	12.6	%	23.7	%	18.2	%		18.2	%
General and administrative expense ratio	11.0	%	13.7	%	12.4	%		12.4	%
Combined ratio	107.9	%	89.5	%	98.7	%	NM	98.7	%

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

15

ENDURANCE SPECIALTY HOLDINGS LTD.
INSURANCE SEGMENT DATA

	FOR THE SIX MONTHS ENDED												FOR THE YEARS ENDED
	JUNE 30, 2008				JUNE 30, 2007				JUNE 30, 2006				DEC. 31, 2007				DEC. 31, 2006
UNDERWRITING REVENUES
Gross premiums written		$	857,107			$	345,000			$	239,380			$	741,556			$	576,745
Net premiums written		$	590,531			$	260,089			$	179,873			$	551,970			$	416,637
Net premiums earned		$	413,364			$	234,382			$	178,779			$	502,082			$	371,762
UNDERWRITING EXPENSES
Losses and loss expenses		$	319,122			$	126,951			$	111,775			$	290,213			$	252,310
Acquisition expenses			52,117				30,354				12,655				72,044				32,528
General and administrative expenses			45,632				40,809				21,782				89,996				49,524
Total expenses		$	416,871			$	198,114			$	146,212			$	452,253			$	334,362
UNDERWRITING (LOSS) INCOME		($	3,507	)		$	36,268			$	32,567			$	49,829			$	37,400
GAAP RATIOS
Loss ratio			77.2	%			54.2	%			62.5	%			57.8	%			67.9	%
Acquisition expense ratio			12.6	%			13.0	%			7.1	%			14.4	%			8.7	%
General and administrative expense ratio			11.0	%			17.3	%			12.2	%			17.9	%			13.3	%
Combined ratio			100.8	%			84.5	%			81.8	%			90.1	%			89.9	%
STATUTORY RATIOS
Loss ratio			77.2	%			54.2	%			62.5	%			57.8	%			67.9	%
Acquisition expense ratio			10.1	%			16.1	%			8.3	%			16.6	%			13.9	%
General and administrative expense ratio			8.7	%			15.6	%			10.2	%			16.4	%			10.5	%
Combined ratio			96.0	%			85.9	%			81.0	%			90.8	%			92.3	%

16

ENDURANCE SPECIALTY HOLDINGS LTD.
REINSURANCE SEGMENT DATA

	FOR THE SIX MONTHS ENDED												FOR THE YEARS ENDED
	JUNE 30, 2008				JUNE 30, 2007				JUNE 30, 2006				DEC. 31, 2007				DEC. 31, 2006
UNDERWRITING REVENUES
Gross premiums written		$	531,864			$	758,288			$	928,515			$	1,068,114			$	1,371,889
Net premiums written		$	521,958			$	744,996			$	917,075			$	1,051,560			$	1,327,919
Net premiums earned		$	415,737			$	615,713			$	755,033			$	1,159,261			$	1,447,167
UNDERWRITING EXPENSES
Losses and loss expenses		$	147,937			$	340,871			$	468,674			$	502,804			$	696,962
Acquisition expenses			98,655				125,973				176,066				255,091				341,194
General and administrative expenses			56,905				56,684				68,177				127,273				140,849
Total expenses		$	303,497			$	523,528			$	712,917			$	885,168			$	1,179,005
UNDERWRITING INCOME		$	112,240			$	92,185			$	42,116			$	274,093			$	268,162
GAAP RATIOS
Loss ratio			35.6	%			55.4	%			62.1	%			43.4	%			48.2	%
Acquisition expense ratio			23.7	%			20.5	%			23.3	%			22.0	%			23.6	%
General and administrative expense ratio			13.7	%			9.1	%			9.0	%			11.0	%			9.7	%
Combined ratio			73.0	%			85.0	%			94.4	%			76.4	%			81.5	%
STATUTORY RATIOS
Loss ratio			35.6	%			55.4	%			62.1	%			43.4	%			48.2	%
Acquisition expense ratio			20.8	%			18.2	%			20.5	%			22.1	%			23.5	%
General and administrative expense ratio			10.9	%			7.6	%			7.4	%			12.1	%			10.6	%
Combined ratio			67.3	%			81.2	%			90.0	%			77.6	%			82.3	%

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. For the impact of deposit accounting on segment results, refer to page 21.

17

ENDURANCE SPECIALTY HOLDINGS LTD.
SEGMENT GROSS PREMIUMS WRITTEN BY LINE OF BUSINESS

	FOR THE SIX MONTHS ENDED												FOR THE YEARS ENDED
	JUNE 30, 2008				JUNE 30, 2007				JUNE 30, 2006				DEC. 31, 2007				DEC. 31, 2006
INSURANCE SEGMENT
Property		$	83,542			$	67,877			$	81,164			$	134,161			$	173,292
Casualty			63,861				69,140				64,664				125,124				128,933
Healthcare liability			41,978				46,843				52,109				92,361				106,988
Workers' compensation			153,367				118,775				6,431				262,228				93,779
Agriculture			464,340				—				—				42,242				—
Professional lines			50,019				42,365				35,012				85,440				73,753
TOTAL INSURANCE		$	857,107			$	345,000			$	239,380			$	741,556			$	576,745
REINSURANCE SEGMENT
Casualty		$	105,545			$	119,725			$	262,767			$	201,032			$	400,111
Property			71,134				102,177				172,478				228,796				318,883
Catastrophe			235,451				288,005				223,459				345,187				291,755
Agriculture			16,734				117,179				92,904				131,325				107,104
Aerospace and Marine			60,785				72,042				120,065				92,882				180,203
Surety and other specialty			42,215				59,160				56,842				68,892				73,833
TOTAL REINSURANCE		$	531,864			$	758,288			$	928,515			$	1,068,114			$	1,371,889
TOTAL COMPANY SUBTOTAL		$	1,388,971			$	1,103,288			$	1,167,895			$	1,809,670			$	1,948,634
DEPOSIT ACCOUNTING ADJUSTMENT[a]			(2,317	)			(23,194	)			(145,261	)			(28,555	)			(158,992	)
REPORTED TOTALS		$	1,386,654			$	1,080,094			$	1,022,634			$	1,781,115			$	1,789,642

[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.

18

ENDURANCE SPECIALTY HOLDINGS LTD.
SEGMENT NET PREMIUMS WRITTEN BY LINE OF BUSINESS

	FOR THE SIX MONTHS ENDED												FOR THE YEARS ENDED
	JUNE 30, 2008				JUNE 30, 2007				JUNE 30, 2006				DEC. 31, 2007				DEC. 31, 2006
INSURANCE SEGMENT
Property		$	51,644			$	23,389			$	37,389			$	47,905			$	61,290
Casualty			50,066				44,577				49,318				77,188				89,817
Healthcare liability			41,661				46,843				52,109				92,361				106,988
Workers' compensation			139,387				107,809				6,044				238,369				86,867
Agriculture			266,593				—				—				21,115				—
Professional lines			41,180				37,471				35,013				75,032				71,675
TOTAL INSURANCE		$	590,531			$	260,089			$	179,873			$	551,970			$	416,637
REINSURANCE SEGMENT
Casualty		$	106,775			$	119,532			$	256,054			$	200,385			$	396,663
Property			71,107				103,601				172,478				230,211				310,795
Catastrophe			227,386				277,904				223,458				332,428				270,126
Agriculture			16,099				115,079				92,904				129,337				106,262
Aerospace and Marine			58,542				70,419				118,501				90,613				173,586
Surety and other specialty			42,049				58,461				53,680				68,586				70,487
TOTAL REINSURANCE		$	521,958			$	744,996			$	917,075			$	1,051,560			$	1,327,919
TOTAL COMPANY SUBTOTAL		$	1,112,489			$	1,005,085			$	1,096,948			$	1,603,530			$	1,744,556
DEPOSIT ACCOUNTING ADJUSTMENT[a]			(2,317	)			(23,194	)			(145,261	)			(28,555	)			(158,992	)
REPORTED TOTALS		$	1,110,172			$	981,891			$	951,687			$	1,574,975			$	1,585,564

[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.

19

ENDURANCE SPECIALTY HOLDINGS LTD.
DEPOSIT ACCOUNTING ADJUSTMENT IMPACTS ON SEGMENT DATA
FOR THE QUARTER ENDED JUNE 30, 2008

	Includes Deposit Accounting Adjustments												Excludes Deposit Accounting Adjustments
	Insurance				Reinsurance				Total Company				Insurance				Reinsurance				Total Company
UNDERWRITING REVENUES
Gross premiums written		$	271,973			$	246,090			$	518,063			$	271,973			$	246,386			$	518,359
Net premiums written		$	234,390			$	234,995			$	469,385			$	234,390			$	235,291			$	469,681
Net premiums earned		$	245,383			$	207,702			$	453,085			$	245,383			$	210,001			$	455,384
Other underwriting income			—				1,933				1,933				—				—				—
Total underwriting revenues		$	245,383			$	209,635			$	455,018			$	245,383			$	210,001			$	455,384
UNDERWRITING EXPENSES
Losses and loss expenses		$	188,171			$	87,154			$	275,325			$	188,171			$	86,737			$	274,908
Acquisition expenses			29,000				46,636				75,636				29,000				47,499				76,499
General and administrative expenses			25,071				27,422				52,493				25,071				27,422				52,493
Total expenses		$	242,242			$	161,212			$	403,454			$	242,242			$	161,658			$	403,900
UNDERWRITING INCOME		$	3,141			$	48,423			$	51,564			$	3,141			$	48,343			$	51,484
GAAP RATIOS
Loss ratio			76.7	%			42.0	%			60.7	%			76.7	%			41.3	%			60.4	%
Acquisition expense ratio			11.8	%			22.4	%			16.7	%			11.8	%			22.6	%			16.8	%
General and administrative expense ratio			10.2	%			13.2	%			11.6	%			10.2	%			13.1	%			11.5	%
Combined ratio			98.7	%			77.6	%			89.0	%			98.7	%			77.0	%			88.7	%

20

ENDURANCE SPECIALTY HOLDINGS LTD.
DEPOSIT ACCOUNTING ADJUSTMENT IMPACTS ON SEGMENT DATA
FOR THE SIX MONTHS ENDED JUNE 30, 2008

	Includes Deposit Accounting Adjustments												Excludes Deposit Accounting Adjustments
	Insurance				Reinsurance				Total Company				Insurance				Reinsurance				Total Company
UNDERWRITING REVENUES
Gross premiums written		$	857,107			$	529,547			$	1,386,654			$	857,107			$	531,864			$	1,388,971
Net premiums written		$	590,531			$	519,641			$	1,110,172			$	590,531			$	521,958			$	1,112,489
Net premiums earned		$	413,364			$	411,764			$	825,128			$	413,364			$	415,737			$	829,101
Other underwriting income			—				1,193				1,193				—				—				—
Total underwriting revenues		$	413,364			$	412,957			$	826,321			$	413,364			$	415,737			$	829,101
UNDERWRITING EXPENSES
Losses and loss expenses		$	319,122			$	145,705			$	464,827			$	319,122			$	147,937			$	467,059
Acquisition expenses			52,117				97,893				150,010				52,117				98,655				150,772
General and administrative expenses			45,632				56,905				102,537				45,632				56,905				102,537
Total expenses		$	416,871			$	300,503			$	717,374			$	416,871			$	303,497			$	720,368
UNDERWRITING (LOSS) INCOME		($	3,507	)		$	112,454			$	108,947			($	3,507	)		$	112,240			$	108,733
GAAP RATIOS
Loss ratio			77.2	%			35.4	%			56.3	%			77.2	%			35.6	%			56.3	%
Acquisition expense ratio			12.6	%			23.8	%			18.2	%			12.6	%			23.7	%			18.2	%
General and administrative expense ratio			11.0	%			13.8	%			12.4	%			11.0	%			13.7	%			12.4	%
Combined ratio			100.8	%			73.0	%			86.9	%			100.8	%			73.0	%			86.9	%

21

ENDURANCE SPECIALTY HOLDINGS LTD.
RETURN ON EQUITY ANALYSIS

	FOR THE SIX MONTHS ENDED JUNE 30, 2008
Average common equity[a]		$	2,323,077
Net premiums earned		$	825,128
Combined ratio			86.9	%
Operating margin			13.1	%
Premium leverage			0.36	x
Implied ROAE from underwriting activity			4.7	%
Average cash and invested assets at amortized cost		$	5,576,372
Investment leverage			2.40	x
Year to date investment income yield, pretax			1.9	%
Implied ROAE from investment activity			4.6	%
Financing Costs [b]			(1.0	)%
Implied Pre-tax Operating ROAE, for period [c]			8.4	%
Implied Pre-tax Operating ROAE, annualized [c]			16.8	%

[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.
[c]	Implied pre-tax Operating ROAE considers only the main components of the Company’s return on equity -- underwriting and investment returns. As such, it differs from operating ROE primarily due to the exclusion of tax on underwriting and investment profits and the tax-effected impact of amortization and interest expense.

22

ENDURANCE SPECIALTY HOLDINGS LTD.
ANNUALIZED OPERATING & INVESTMENT LEVERAGE

	FOR THE QUARTERS ENDED																YEARS ENDED DECEMBER 31,
	JUNE 30, 2008				MAR. 31, 2008				DEC. 31, 2007				SEPT. 30, 2007				2007				2006
Average common equity[a]		$	2,336,035			$	2,325,217			$	2,318,940			$	2,252,734			$	2,215,885			$	1,885,209
Net premiums earned		$	453,085			$	372,043			$	400,462			$	399,742			$	1,594,800			$	1,638,574
Operating leverage			0.19	x			0.16	x			0.17	x			0.18	x			0.72	x			0.87	x
Annualized operating leverage			0.78	x			0.64	x			0.69	x			0.71	x			0.72	x			0.87	x
Avg. cash and invested assets at amortized cost		$	5,593,901			$	5,579,783			$	5,691,919			$	5,751,342			$	5,559,204			$	5,275,481
Investment leverage			2.39	x			2.40	x			2.45	x			2.55	x			2.51	x			2.80	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.

23

ENDURANCE SPECIALTY HOLDINGS LTD.
INVESTMENT PORTFOLIO
AS OF JUNE 30, 2008

Type of Investment	Fair Value		Percentage
Cash and equivalents [a]	$	654,326		11.6	%
U.S. government and agencies		723,561		12.9	%
Corporate securities		808,101		14.3	%
Foreign government		195,652		3.5	%
Municipals		124,351		2.2	%
Asset-backed securities		363,823		6.5	%
Mortgage-backed securities		2,389,165		42.5	%
Other investments [b]		366,886		6.5	%
Total	$	5,625,865		100.0	%

Ratings [e]	Fair Value		Percentage
U.S. Government and agencies notes	$	723,561		14.6	%
AAA/Aaa		3,114,330		62.6	%
AA/Aa		338,683		6.8	%
A/A		340,023		6.8	%
BBB		24,510		0.5	%
Below BBB		62,788		1.3	%
Not Rated		758		0.0	%
Other investments [b]		366,886		7.4	%
Total	$	4,971,539		100.0	%

Performance	JUNE 30, 2008
Yield [c]		3.9	%
Duration [d]		3.0

Investment Income	Quarter Ended June 30, 2008				Quarter Ended Mar. 31, 2008				Quarter Ended Dec. 31, 2007				Quarter Ended Sept. 30, 2007
Other Investments		($	519	)		($	16,112	)		($	898	)		($	3,489	)
Total net investment income		$	60,482			$	46,878			$	65,310			$	62,605

Note:	[a]	Cash and equivalents are shown net of investments pending settlement.
	[b]	Other investments includes investments in alternative and high yield bank loan funds.
	[c]	Annualized earned yield excludes realized and unrealized gains and losses on fixed maturity investments.
	[d]	Duration excludes other investments and operating cash.
	[e]	Excludes cash and equivalents.

24

ENDURANCE SPECIALTY HOLDINGS LTD.
STRUCTURED SECURITIES DETAIL
AS OF JUNE 30, 2008

Securitized (RMBS, CMBS, ABS and CDO) securities ratings	Fair Value		Percentage			Percentage of Investment Portfolio
U.S. Government and agencies	$	1,185,215		43.1	%		21.1	%
AAA/Aaa		1,512,905		54.9	%		26.9	%
AA/Aa		12,255		0.4	%		0.2	%
A/A		10,112		0.4	%		0.2	%
BBB		22,110		0.8	%		0.4	%
Below BBB		10,391		0.4	%		0.2	%
Total	$	2,752,988		100.0	%		49.0	%

Structured securities sectors (RMBS, CMBS, ABS and CDO)		Fair Value		Percentage			Percentage
Commercial		$	741,269		26.9	%		13.2	%
Residential			1,684,253		61.2	%		30.0	%
Consumer			327,466		11.9	%		5.8	%
Total		$	2,752,988		100.0	%		49.0	%
Spread Duration	3.67 years

Subprime collateralized securities		Fair Value			Percentage			Percentage
AAA			$	399		98.0	%		0.0	%
BBB and below				8		2.0	%		0.0	%
Total			$	407		100.0	%		0.0	%
Spread Duration	2.04 years

Collateralized debt obligations (CDO’s)	Fair Value			Percentage			Percentage
AAA/Aaa		$	—		—			—
AA/Aa			144		3.6	%		—
A/A			1,315		32.4	%		—
BBB			1,919		47.3	%		—
Below BBB			675		16.7	%		—
Total		$	4,053		100.0	%		—

Collateralized debt obligations (CDO’s)		Fair Value			Percentage			Percentage
Commercial			$	4,050		99.9	%		—
Residential				3		0.1	%		—
Total			$	4,053		100.0	%		—
Spread Duration	3.85 years

25

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

	FOR THE QUARTER ENDED
	JUNE 30, 2008				MAR. 31, 2008				DEC. 31, 2007				SEPT. 30, 2007				JUNE 30, 2007
Incurred related to:
Current year		$	331,507			$	230,456			$	183,253			$	223,946			$	234,768
Prior years			(56,182	)			(40,954	)			(38,401	)			(37,490	)			(27,589	)
Total incurred		$	275,325			$	189,502			$	144,852			$	186,456			$	207,179
Paid related to:
Current year		($	16,906	)		($	587	)		($	42,814	)		($	24,416	)		($	15,896	)
Prior years			(347,670	)			(127,272	)			(172,362	)			(134,212	)			(232,921	)
Total paid		($	364,576	)		($	127,859	)		($	215,176	)		($	158,628	)		($	248,817	)

26

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

(FAVORABLE) ADVERSE PRIOR ACCIDENT YEAR DEVELOPMENT DURING THE PERIODS ENDED JUNE 30, 2008

	Insurance				Reinsurance				Total Company Sub-total				Deposit Accounting Adjustment [a]				Total Company
Incurred related to prior years
Quarter ended March 31, 2008		($	3,743	)		($	35,498	)		($	39,241	)		$	1,713			($	40,954	)
Quarter ended June 30, 2008			(25,583	)			(33,025	)			(58,608	)			(2,426	)			(56,182	)
Six months ended June 30, 2008		($	29,326	)		($	68,523	)		($	97,849	)		($	713	)		($	97,136	)
(FAVORABLE) ADVERSE PRIOR ACCIDENT YEAR DEVELOPMENT DURING THE YEAR ENDED DEC. 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	)
Quarter ended June 30, 2007			(18,725	)			(8,441	)			(27,166	)			423				(27,589	)
Quarter ended Sept. 30, 2007			(25,101	)			(8,112	)			(33,213	)			4,277				(37,490	)
Quarter ended Dec. 31, 2007			(10,080	)			(34,783	)			(44,863	)			(6,462	)			(38,401	)
Year ended December 31, 2007		($	80,413	)		($	74,408	)		($	154,821	)		$	4,566			($	159,387	)
(FAVORABLE) ADVERSE PRIOR ACCIDENT YEAR DEVELOPMENT DURING THE YEAR ENDED DECEMBER 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	)

[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.

27

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 DEC. 31, 2007
	JUNE 30, 2008				MAR. 31, 2008				DEC. 31, 2007				SEPT. 30, 2007				JUNE 30, 2007
INSURANCE SEGMENT
Short tail[a}		($	7,423	)		($	1,896	)		$	1,340			($	1,003	)		($	15,172	)		($	30,933	)
Long tail[b]			(18,160	)			(1,847	)			(11,420	)			(24,098	)			(3,553	)			(49,480	)
Other[c]			—				—				—				—				—				—
TOTAL INSURANCE			(25,583	)			(3,743	)			(10,080	)			(25,101	)			(18,725	)			(80,413	)
REINSURANCE SEGMENT
Short tail[a}			(10,316	)			(31,880	)			(30,577	)			(12,953	)			(10,114	)			(69,227	)
Long tail[b]			1,187				(101	)			(89	)			(2,269	)			1,106				(6,450	)
Other[c]			(23,896	)			(3,517	)			(4,117	)			7,110				567				1,269
TOTAL REINSURANCE			(33,025	)			(35,498	)			(34,783	)			(8,112	)			(8,441	)			(74,408	)
TOTAL COMPANY SUBTOTAL			(58,608	)			(39,241	)			(44,863	)			(33,213	)			(27,166	)			(154,821	)
DEPOSIT ACCOUNTING ADJUSTMENT[d]			(2,426	)			1,713				(6,462	)			4,277				423				4,566
REPORTED TOTALS		($	56,182	)		($	40,954	)		($	38,401	)		($	37,490	)		($	27,589	)		($	159,387	)

[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 segment includes its property line of business. The Company’s short tail lines in its Reinsurance 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 segment includes casualty, healthcare liability, workers’ compensation and professional lines. The Company’s long tail line of business in the Reinsurance 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 Insurance segment is agriculture and in the Reinsurance 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.

28

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

	Insurance													Reinsurance														Total Company			Deposit Accounting Adjustment [a]				Reported Totals
	Short Tail				Long Tail			Other			Total			Short Tail				Long Tail				Other			Total
AT JUNE 30, 2008
Case reserves		$	76,961		$	100,219		$	253,067		$	430,247			$	445,073			$	257,920		$	6,338		$	709,331		$	1,139,578			($	41,900	)	$	1,097,678
Total reserves		$	112,959		$	1,129,238		$	271,389		$	1,513,586			$	729,039			$	839,848		$	83,252		$	1,652,139		$	3,165,725			($	85,451	)	$	3,080,274
Case reserves / Total reserves			68.1	%		8.9	%		93.2	%		28.4	%			61.0	%			30.7	%		7.6	%		42.9	%		36.0	%			49.0	%		35.6	%
IBNR / Total reserves			31.9	%		91.1	%		6.8	%		71.6	%			39.0	%			69.3	%		92.4	%		57.1	%		64.0	%			51.0	%		64.4	%
AT MAR. 31, 2008
Case reserves		$	91,447		$	75,515		$	21,520		$	188,482			$	476,650			$	245,327		$	8,199		$	730,176		$	918,658			($	51,541	)	$	867,117
Total reserves		$	127,760		$	1,050,603		$	83,274		$	1,261,637			$	750,966			$	837,407		$	177,810		$	1,766,183		$	3,027,820			($	99,393	)	$	2,928,427
Case reserves / Total reserves			71.6	%		7.2	%		25.8	%		14.9	%			63.5	%			29.3	%		4.6	%		41.3	%		30.3	%			51.9	%		29.6	%
IBNR / Total reserves			28.4	%		92.8	%		74.2	%		85.1	%			36.5	%			70.7	%		95.4	%		58.7	%		69.7	%			48.1	%		70.4	%
AT DEC. 31, 2007
Case reserves		$	88,197		$	57,282		$	64,259		$	209,738			$	507,230			$	244,276		$	8,784		$	760,290		$	970,028			($	52,131	)	$	917,897
Total reserves		$	122,643		$	968,891		$	91,092		$	1,182,626			$	794,983			$	839,744		$	177,835		$	1,812,562		$	2,995,188			($	102,964	)	$	2,892,224
Case reserves / Total reserves			71.9	%		5.9	%		70.5	%		17.7	%			63.8	%			29.1	%		4.9	%		41.9	%		32.4	%			50.6	%		31.7	%
IBNR / Total reserves			28.1	%		94.1	%		29.5	%		82.3	%			36.2	%			70.9	%		95.1	%		58.1	%		67.6	%			49.4	%		68.3	%
AT SEPT. 30, 2007
Case reserves		$	116,106		$	46,092			—		$	162,198			$	577,103			$	244,289		$	18,260		$	839,652		$	1,001,850			($	67,709	)	$	934,141
Total reserves		$	145,657		$	899,080			—		$	1,044,737			$	923,945			$	837,817		$	161,607		$	1,923,369		$	2,968,106			($	126,296	)	$	2,841,810
Case reserves / Total reserves			79.7	%		5.1	%		—			15.5	%			62.5	%			29.2	%		11.3	%		43.7	%		33.8	%			53.6	%		32.9	%
IBNR / Total reserves			20.3	%		94.9	%		—			84.5	%			37.5	%			70.8	%		88.7	%		56.3	%		66.2	%			46.4	%		67.1	%
AT JUNE 30, 2007
Case reserves		$	100,339		$	49,928			—		$	150,267			$	614,638			$	234,964		$	9,267		$	858,869		$	1,009,136			($	65,639	)	$	943,497
Total reserves		$	134,405		$	832,868			—		$	967,273			$	974,941			$	833,779		$	126,404		$	1,935,124		$	2,902,397			($	134,872	)	$	2,767,525
Case reserves / Total reserves			74.7	%		6.0	%		—			15.5	%			63.0	%			28.2	%		7.3	%		44.4	%		34.8	%			48.7	%		34.1	%
IBNR / Total reserves			25.3	%		94.0	%		—			84.5	%			37.0	%			71.8	%		92.7	%		55.6	%		65.2	%			51.3	%		65.9	%

[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 underwriting results by segment to the Company’s financial statement presentation.

29

ENDURANCE SPECIALTY HOLDINGS LTD.
DILUTIVE SHARES FOR EPS CALCULATION

		QUARTERS ENDED JUNE 30,						SIX MONTHS ENDED JUNE 30,
		2008			2007			2008			2007
DILUTIVE SHARES OUTSTANDING:	Average market price per share	$	35.05		$	38.09		$	37.19		$	36.64
AS REPORTED	Basic weighted average common shares outstanding		58,558			65,531			58,691			66,069
	Add: weighted avg. unvested restricted share units		1,360			804			1,263			771
	Weighted average exercise price per share		—			—			—			—
	Proceeds from unrecognized restricted share unit expense	$	28,186		$	26,420		$	28,186		$	26,420
	Less: restricted share units bought back via treasury method		(804	)		(694	)		(758	)		(721	)
	Add: weighted avg. dilutive warrants outstanding		6,413			7,202			6,718			7,202
	Weighted average exercise price per share	$	15.37		$	16.37		$	15.37		$	16.37
	Less: warrants bought back via treasury method		(2,812	)		(3,096	)		(2,777	)		(3,218	)
	Add: weighted avg. dilutive options outstanding		2,029			2,284			2,034			2,385
	Weighted average exercise price per share	$	17.81		$	18.33		$	17.81		$	18.30
	Proceeds from unrecognized option expense	$	48		$	87		$	48		$	87
	Less: options bought back via treasury method		(1,032	)		(1,101	)		(975	)		(1,194	)
	Weighted average dilutive shares outstanding		63,712			70,930			64,196			71,294

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.

30

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

	QUARTERS ENDED JUNE 30,						SIX MONTHS ENDED JUNE 30,
	2008			2007			2008			2007
Net income	$	103,338		$	135,341		$	181,149		$	237,176
Add (Less) after-tax items:
Net foreign exchange gains		(4,071	)		(1,914	)		(4,081	)		(372	)
Net realized losses on investments		3,411			7,750			15,137			9,569
Operating income before preferred dividends	$	102,678		$	141,177		$	192,205		$	246,373
Preferred dividends		(3,875	)		(3,875	)		(7,750	)		(7,750	)
Operating income available to common shareholders	$	98,803		$	137,302		$	184,455		$	238,623
Weighted average common shares outstanding
Basic		58,558			65,531			58,691			66,069
Dilutive		63,712			70,930			64,196			71,294
Basic per common share data
Net income available to common shareholders	$	1.70		$	2.01		$	2.95		$	3.47
Add (Less) after-tax items:
Net foreign exchange gains		(0.07	)		(0.03	)		(0.07	)		(0.01	)
Net realized losses on investments		0.06			0.12			0.26			0.15
Operating income available to common shareholders	$	1.69		$	2.10		$	3.14		$	3.61
Diluted per common share data
Net income available to common shareholders	$	1.56		$	1.85		$	2.70		$	3.22
Add (Less) after-tax items:
Net foreign exchange gains		(0.06	)		(0.02	)		(0.06	)		(0.01	)
Net realized losses on investments		0.05			0.11			0.23			0.14
Operating income available to common shareholders	$	1.55		$	1.94		$	2.87		$	3.35

31

ENDURANCE SPECIALTY HOLDINGS LTD.
DILUTIVE SHARES SENSITIVITY ANALYSIS

DILUTIVE SHARES OUSTANDING
Market Price per Share
$	24.00	$	25.00	$	26.00	$	27.00	$	28.00	$	29.00	$	30.00	$	31.00	$	32.00	$	33.00	$	34.00
	62,372		62,588		62,788		62,972		63,144		63,304		63,453		63,592		63,723		63,846		63,961

32

ENDURANCE SPECIALTY HOLDINGS LTD.
BOOK VALUE PER SHARE

		JUNE 30,
								DEC. 31, 2007
		2008			2007
DILUTIVE COMMON SHARES OUTSTANDING:	Price per share at period end	$	30.79		$	40.04		$	41.73
AS-IF CONVERTED [a]	Basic common shares outstanding[b]		58,398			64,734			59,384
	Add: unvested restricted shares and restricted share units		1,260			1,142			1,041
	Add: dilutive warrants outstanding		6,095			7,202			7,095
	Weighted average exercise price per share	$	15.37		$	16.37		$	15.87
	Add: dilutive options outstanding		2,022			2,192			2,045
	Weighted average exercise price per share	$	17.81		$	18.34		$	18.12
	Book Value[c]	$	2,333,895		$	2,179,846		$	2,312,259
	Add: proceeds from converted warrants		93,676			117,902			112,593
	Add: proceeds from converted options		36,003			40,199			37,059
	Pro forma book value	$	2,463,574		$	2,337,947		$	2,461,911
	Dilutive shares outstanding		67,775			75,271			69,564
	Basic book value per common share	$	39.97		$	33.67		$	38.94
	Diluted book value per common share	$	36.35		$	31.06		$	35.39
DILUTIVE COMMON SHARES OUTSTANDING:	Price per share at period end	$	30.79		$	40.04		$	41.73
TREASURY STOCK METHOD	Basic common shares outstanding[b]		58,398			64,734			59,384
	Add: unvested restricted shares and restricted share units		1,260			1,142			1,041
	Add: dilutive warrants outstanding		6,095			7,202			7,095
	Weighted average exercise price per share	$	15.37		$	16.37		$	15.87
	Less: warrants bought back via treasury method		(3,042	)		(2,945	)		(2,698	)
	Add: dilutive options outstanding		2,022			2,192			2,045
	Weighted average exercise price per share	$	17.81		$	18.34		$	18.12
	Less: options bought back via treasury method		(1,170	)		(1,004	)		(889	)
	Dilutive shares outstanding		63,563			71,321			65,978
	Basic book value per common share	$	39.97		$	33.67		$	38.94
	Diluted book value per common share	$	36.72		$	30.56		$	35.05

[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 includes vested restricted share units.
[c]	Excludes the $200 million liquidation value of the preferred shares.

33

ENDURANCE SPECIALTY HOLDINGS LTD.
SHAREHOLDER RETURN ANALYSIS

	SIX MONTHS JUNE 30, 2008				YEARS ENDED DECEMBER 31,
					2007			2006			2005			2004			2003
Net income (loss) available to common shareholders		$	173,399		$	505,607		$	482,626		($	223,204	)	$	355,584		$	263,437
Dividends paid to common shareholders			(29,943	)		(64,353	)		(66,262	)		(61,695	)		(50,346	)		(20,505	)
Shareholders’ equity[a]			2,333,895			2,312,259			2,097,874			1,672,543			1,862,455			1,644,815
Return on beginning equity			7.5	%		24.1	%		28.9	%		(12.0	)%		21.6	%		21.6	%
Dividend payout ratio[b]			1.3	%		3.1	%		4.0	%		3.3	%		3.1	%		1.7	%
Dilutive common shares outstanding			63,563			65,978			72,654			72,173			66,729			68,445
Diluted book value per common share (treasury stock method)		$	36.72		$	35.05		$	28.87		$	23.17		$	27.91		$	24.03
Change in diluted book value per common share			4.8	%		21.4	%		24.6	%		(17.0	)%		16.1	%		10.6	%
Total return to common shareholders [c]			6.1	%		24.5	%		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.

34

ENDURANCE SPECIALTY HOLDINGS LTD.
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.

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 viewed as a substitute for GAAP net income. Please see page 31 for a reconciliation of operating income to net income.

Return on Average Equity (ROAE) is comprised using the average common equity calculated as the arithmetic average of the beginning and ending common equity balances for stated periods. Return on Beginning Equity (ROBE) is comprised using the beginning common equity for stated periods. The Company presents various measures of Return on Equity that are commonly recognized as a standard of performance by investors, analysts, rating agencies and other users of its financial information.

Investment yield is provided by the Company’s investment managers and is calculated by dividing net investment income by average invested assets at amortized cost. The Company utilizes and presents the investment yield in order to better disclose the performance of the Company’s investments 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 dilutive securities; therefore, the Company believes it is a better measure of calculating shareholder returns than book value per common share. Please see page 33 for a reconciliation of diluted book value per common share to basic book value per common share.

35