SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 8-K

                                 Current Report
                     Pursuant to Section 13 or 15(d) of the
                         Securities Exchange Act of 1934

                                December 22, 2004
                Date of Report (Date of earliest event reported)

                        Endurance Specialty Holdings Ltd.
             (Exact name of registrant as specified in its charter)

            Bermuda                       1-31599                 98-032908
(State or Other Jurisdiction of   (Commission File Number)    (I.R.S. Employer
        Incorporation)                                       Identification No.)

          Wellesley House, 90 Pitts Bay Road, Pembroke HM 08, Bermuda
          (Address of principal executive offices, including zip code)

                                 (441) 278-0440
              (Registrant's telephone number, including area code)

                                 Not Applicable
          (Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:

|_|   Written communications pursuant to Rule 425 under the Securities Act (17
      CFR 230.425)

|_|   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)

|_|   Pre-commencement communications pursuant to Rule 14d-2(b) under the
      Exchange Act (17 CFR 240.14d-2(b))

|_|   Pre-commencement communications pursuant to Rule 13e-4(c) under the
      Exchange Act (17 CFR 240.13e-4(c))



Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement of a Registrant.

(a)   On December 22, 2004, Endurance U.S. Holdings Corp., a wholly-owned
subsidiary of Endurance Specialty Holdings Ltd. (the "Company"), borrowed
$143,500,000 (the "Borrowing") under the unsecured revolving portion of the
Credit Agreement, dated as of August 6, 2004, by and among the Company and the
Borrowers (as defined therein), the Lenders from time to time party thereto, and
JPMorgan Chase Bank, as Administrative Agent (the "Credit Agreement"). Pursuant
to the terms of the Credit Agreement, the Borrowing will accrue interest at the
three month London Interbank Offered Rate ("LIBOR") plus 0.40%, currently 2.92%.
The interest rate on the Borrowing can vary from time to time based upon
increases or decreases in either LIBOR or the Company's ratio of total
consolidated indebtedness to total consolidated capital. Interest payments on
the Borrowing are due in arrears every three months. The Borrowing must be
repaid on or before August 6, 2007. The additional material terms of the Credit
Agreement, including covenants, events of default and fees, are as set forth in
the description of the Credit Agreement included in the Company's Form 10-Q for
the three months ended September 30, 2004 and are incorporated by reference
herein.



                                   SIGNATURES

      Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

Dated: December 23, 2004


                                            By: /s/ John V. Del Col
                                            -----------------------
                                            Name: John V. Del Col
                                            Title: General Counsel & Secretary