J.P. Morgan Comments On Endurance Specialty CEO Appearance At Insurance Conference

According to J.P. Morgan, Endurance Specialty Holdings ENH CEO David Cash spoke at its insurance conference. J.P. Morgan reported that over the long term, the company sees an opportunity to expand its international reinsurance operation as the market grows faster than domestic and clients look for more local partners. “Over the short term, business will likely benefit from improved pricing following Japanese earthquake losses; current renewal prices in Japan are up 40%-70%. Management expects a broad improvement in property reinsurance pricing including the US, with Europe the potential laggard and with potential for US property insurance to improve based on higher reinsurance costs. The company currently writes approximately $45 million of Japanese premium with $25 million in catastrophe and $20 million in non-catastrophe through its Singapore office. The company believes it now has the right infrastructure in place to take advantage of a broad range of market and cyclical opportunities as well as the ability to weather further market downside. The company believes it is more adequately capitalized today, which leaves little excess capital to pursue acquisitions. In terms of agriculture business, the company is more cautious about, or watching more closely, what appear to be drier-than-normal growing conditions in the southern US than it is local flooding in the Midwest.” Endurance Specialty Holdings closed yesterday at $45.82.