Exhibit 99.2

Endurance Specialty Holdings Ltd.

INVESTOR FINANCIAL SUPPLEMENT

THIRD QUARTER 2007

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 — Year to date					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					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 Details					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.			Share 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, 2006.

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, 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 SEPT. 30,												NINE MONTHS ENDED SEPT. 30,												Previous Quarter Change						Previous Year to Date Change
						2007						2006						2007						2006
HIGHLIGHTS			Net income				$	131,401					$	128,230					$	368,577					$	299,316				2.5%						23.1%
			Net income available to common shareholders					127,526						124,355						356,952						287,691				2.5%						24.1%
			Operating income[a]					133,868						137,228						380,242						307,344				(2.4)%						23.7%
			Operating income available to common shareholders[a]					129,993						133,353						368,617						295,719				(2.5)%						24.7%
			Operating cash flow					184,736						165,991						437,102						539,915				11.3%						(19.0)%
			Gross premiums written					423,271						476,213						1,503,365						1,498,847				(11.1)%						0.3%
			Net premiums earned					399,742						407,975						1,194,338						1,234,859				(2.0)%						(3.3)%
			Total assets					7,368,441						7,067,790						7,368,441						7,067,790				4.3%						4.3%
			Total shareholders’ equity					2,525,621						2,117,174						2,525,621						2,117,174				19.3%						19.3%
PER SHARE			Basic earnings per common share
AND SHARES DATA			Net income (as reported)					$1.98						$1.87						$5.45						$4.33						5.5	%					25.7	%
			Operating income (as reported)[a]					$2.02						$2.01						$5.63						$4.45						0.3	%					26.3	%
			Diluted earnings per common share
			Net income (as reported)					$1.81						$1.74						$5.02						$4.03						4.1	%					24.6	%
			Operating income (as reported)[a]					$1.85						$1.87						$5.18						$4.14						(1.1	)%					25.2	%
As Reported			Weighted average common shares outstanding					64,468						66,339						65,530						66,393						(2.8	)%					(1.3	)%
			Weighted average common shares outstanding and dilutive potential common shares					70,431						71,487						71,126						71,428						(1.5	)%					(0.4	)%
Book Value Per			Book value[b]					$36.21						$28.87						$36.21						$28.87						25.4	%					25.4	%
Common Share			Diluted book value (treasury stock method)[b]					$32.81						$26.52						$32.81						$26.52						23.7	%					23.7	%
FINANCIAL RATIOS			Return on average common equity (ROAE), net income[c]			5.7%						6.8%						16.1%						16.0%						(1.1)						0.1
			ROAE, operating income[a][c]			5.8%						7.3%						16.7%						16.5%						(1.5)						0.2
			Return on beg. common equity (ROBE), net income[c]			5.9%						7.2%						17.0%						17.2%						(1.3)						(0.2)
			ROBE, operating income[a]			6.0%						7.7%						17.6%						17.7%						(1.7)						(0.1)
			Annualized ROAE, net income[c]			22.6%						27.2%						21.5%						21.4%						(4.6)						0.1
			Annualized ROAE, operating income[a][c]			23.1%						29.2%						22.2%						22.0%						(6.1)						0.3
			Annualized ROBE, net income			23.4%						28.6%						22.7%						22.9%						(5.2)						(0.2)
			Annualized ROBE, operating income[a]			23.9%						30.7%						23.4%						23.6%						(6.8)						(0.2)
			Annualized investment yield			4.4%						4.8%						5.1%						4.8%						(0.4)						0.3
			Loss ratio			46.6%						46.1%						50.6%						56.4%						0.5						(5.8)
GAAP			Acquisition expense ratio			19.2%						20.1%						18.2%						19.1%						(0.9)						(0.9)
			General and administrative expense ratio			13.8%						11.9%						12.8%						11.2%						1.9						1.6
			Combined ratio			79.6%						78.1%						81.6%						86.7%						1.5						(5.1)
STAT			Acquisition expense ratio			23.8%						26.4%						19.2%						19.5%						(2.6)						(0.3)
			General and administrative expense ratio			14.6%						12.1%						11.2%						10.0%						2.5						1.2
			Combined ratio			85.0%						84.6%						81.0%						85.9%						0.4						(4.9)

[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
			SEPT. 30, 2007						JUNE 30, 2007						MARCH 31, 2007						DEC. 31, 2006						SEPT. 30, 2006						SEPT 30, 2005
UNDERWRITING REVENUES
Gross premiums written					$423,271						$506,803						$573,291						$290,795						$476,213						$370,565
Premiums ceded			(45,655)						(58,577)						(39,626)						(42,340)						(90,791)						(21,921)
Net premiums written					$377,616						$448,226						$533,665						$248,455						$385,422						$348,644
Change in unearned premiums					22,126				(30,675)						(156,620)								155,260						22,553						92,522
Net premiums earned					$399,742						$417,551						$377,045						$403,715						$407,975						$441,166
Other underwriting income (loss)					1,697				(3,203)						(5,936)								1,718				(1,837)								1,386
Total underwriting revenues					$401,439						$414,348						$371,109						$405,433						$406,138						$442,552
UNDERWRITING EXPENSES
Losses and loss expenses					$186,456						$207,179						$210,594						$131,420						$188,033						$784,608
Acquisition expenses					76,604						73,941						67,530						81,187						81,857						75,817
General and administrative expenses					55,121						48,664						48,829						51,879						48,535						41,474
Total underwriting expenses					$318,181						$329,784						$326,953						$264,486						$318,425						$901,899
Underwriting income (loss)					$83,258						$84,564						$44,156						$140,947						$87,713				($459,347)
OTHER OPERATING REVENUE/EXPENSES
Net investment income					$62,605						$78,548						$74,813						$72,033						$63,581						$49,034
Interest expense			(7,533)						(7,531)						(7,529)						(7,528)						(7,528)						(5,806)
Amortization of intangibles			(1,127)						(1,127)						(1,127)						(1,126)						(1,158)						(1,158)
Total other operating revenue/expenses					$53,945						$69,890						$66,157						$63,379						$54,895						$42,070
INCOME (LOSS) BEFORE OTHER ITEMS					$137,203						$154,454						$110,313						$204,326						$142,608						($417,277	)
OTHER
Net foreign exchange (losses) gains			($700)								$2,072				($2,613)								$9,771				($3,633)								$1,809
Net realized losses on investments			(3,055)						(9,038)						(2,084)						(1,908)						(6,375)						(1,073)
Income tax expense			(2,047)						(12,147)						(3,781)						(13,379)						(4,370)						39,552
NET INCOME (LOSS)					$131,401						$135,341						$101,835						$198,810						$128,230				($376,989)
Preferred dividends			(3,875)						(3,875)						(3,875)						(3,875)						(3,875)						—
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS					$127,526						$131,466						$97,960						$194,935						$124,355				($376,989)
KEY RATIOS/PER SHARE DATA
Loss ratio			46.6%						49.6%						55.9%						32.6%						46.1%						177.8%
Acquisition expense ratio			19.2%						17.7%						17.9%						20.1%						20.1%						17.2%
General and administrative expense ratio			13.8%						11.7%						12.9%						12.9%						11.9%						9.4%
Combined ratio			79.6%						79.0%						86.7%						65.6%						78.1%						204.4%
Weighted average basic shares outstanding					64,468						65,531						66,613						66,561						66,339						60,210
Weighted average dilutive shares outstanding					70,431						70,930						72,073						72,261						71,487						60,210
Basic earnings (loss) per common share					$1.98						$2.01						$1.47						$2.93						$1.87				($6.26)
Diluted earnings (loss) per common share					$1.81						$1.85						$1.36						$2.70						$1.74				($6.26)
ROAE, net income (loss)[a]			5.7%						6.0%						4.6%						9.7%						6.8%						(21.3)%

[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.

2

ENDURANCE SPECIALTY HOLDINGS LTD.

CONSOLIDATED STATEMENTS OF INCOME — YTD

			NINE MONTHS ENDED																		YEAR ENDED
			SEPT. 30, 2007						SEPT. 30, 2006						SEPT 30, 2005						DEC. 31, 2006						DEC. 31, 2005
UNDERWRITING REVENUES
Gross premiums written				$	1,503,365					$	1,498,847					$	1,476,245					$	1,789,642					$	1,668,877
Premiums ceded			(143,858)						(161,738)						(33,833)						(204,078)						(49,528)
Net premiums written				$	1,359,507					$	1,337,109					$	1,442,412					$	1,585,564					$	1,619,349
Change in unearned premiums			(165,169)						(102,250)						(125,727)						53,010						104,345
Net premiums earned				$	1,194,338					$	1,234,859					$	1,316,685					$	1,638,574					$	1,723,694
Other underwriting (loss) income			(7,442)						(328)						2,675						1,390						(4,818)
Total underwriting revenues				$	1,186,896					$	1,234,531					$	1,319,360					$	1,639,964					$	1,718,876
UNDERWRITING EXPENSES
Losses and loss expenses				$	604,229					$	696,210					$	1,264,583					$	827,630					$	1,650,943
Acquisition expenses					218,075						236,302						251,926						317,489						331,309
General and administrative expenses					152,614						138,494						115,452						190,373						146,419
Total underwriting expenses				$	974,918					$	1,071,006					$	1,631,961					$	1,335,492					$	2,128,671
Underwriting income (loss)				$	211,978					$	163,525				($312,601)							$	304,472				($409,795)
OTHER OPERATING REVENUE/EXPENSES
Net investment income				$	215,966					$	185,416					$	127,478					$	257,449					$	180,451
Interest expense			(22,593)						(22,513)						(16,889)						(30,041)						(24,210)
Amortization of intangibles			(3,381)						(3,474)						(3,536)						(4,600)						(4,694)
Total other operating revenue/expenses				$	189,992					$	159,429					$	107,053					$	222,808					$	151,547
INCOME (LOSS) BEFORE OTHER ITEMS				$	401,970					$	322,954				($205,548)							$	527,280				($258,248)
OTHER
Net foreign exchange (losses) gains			($1,241)							$	11,250				($2,354)							$	21,021				($5,140)
Net realized losses on investments			(14,177)						(18,434)						(4,934)						(20,342)						(8,244)
Income tax (expense) benefit					(17,975	)					(16,454	)					42,123						(29,833	)					51,148
NET INCOME (LOSS)				$	368,577					$	299,316				($170,713)							$	498,126				($220,484)
Preferred dividends			(11,625)						(11,625)						—						(15,500)						($2,720)
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS				$	356,952					$	287,691				($170,713)							$	482,626				($223,204)
KEY RATIOS/PER SHARE DATA
Loss ratio			50.6%						56.4%						96.0%						50.5%						95.8%
Acquisition expense ratio			18.2%						19.1%						19.1%						19.4%						19.2%
General and administrative expense ratio			12.8%						11.2%						8.8%						11.6%						8.5%
Combined ratio			81.6%						86.7%						123.9%						81.5%						123.5%
Weighted average basic shares outstanding					65,530						66,393						60,707						66,436						62,029
Weighted average dilutive shares outstanding					71,126						71,428						60,707						71,755						62,029
Basic earnings (loss) per common share				$	5.45					$	4.33				($2.81)							$	7.26				($3.60)
Diluted earnings (loss) per common share				$	5.02					$	4.03				($2.81)							$	6.73				($3.60)
ROAE, net income (loss)[a]			16.1%						16.0%						(10.0)%						25.6%						(12.6)%

[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

			SEPT. 30, 2007						JUNE 30, 2007						MAR. 31, 2007						DEC. 31, 2006						SEPT. 30, 2006						JUNE 30, 2006
ASSETS
Cash and cash equivalents				$	600,042					$	625,662					$	518,800					$	547,772					$	527,990					$	669,583
Fixed maturity investments available for sale, at fair value					4,803,808						4,728,942						4,838,405						4,714,204						4,652,163						4,323,661
Other Investments					343,926						281,241						267,721						253,068						223,536						204,272
Premiums receivable, net					768,162						839,106						808,064						660,570						769,462						827,239
Deferred acquisition costs					212,000						198,537						186,374						168,809						189,110						169,190
Securities lending collateral					195,727						173,884						217,698						226,762						349,630						371,407
Prepaid reinsurance premiums					92,466						99,446						92,722						105,058						108,251						56,194
Losses recoverable					96,008						66,377						55,579						44,244						37,447						27,452
Accrued investment income					36,075						40,443						36,792						40,692						37,007						36,740
Intangible assets					69,388						70,456						69,415						70,366						70,255						71,436
Deferred tax assets					46,926						57,993						61,385						54,019						65,738						66,545
Receivable on pending investment sales, net					53,061						—						—						—						—						—
Other assets					50,852						43,760						37,508						39,990						37,201						34,693
TOTAL ASSETS				$	7,368,441					$	7,225,847					$	7,190,463					$	6,925,554					$	7,067,790					$	6,858,412
LIABILITIES
Reserve for losses and loss expenses				$	2,841,810					$	2,767,525					$	2,790,183					$	2,701,686					$	2,769,418					$	2,782,803
Reserve for unearned premiums					999,046						1,027,229						987,748						843,202						997,478						967,844
Deposit liabilities					130,272						143,073						155,380						161,024						173,992						173,527
Reinsurance balances payable					153,815						194,012						147,745						172,328						147,218						122,829
Securities lending payable					195,727						173,884						217,698						226,762						349,630						371,407
Debt					447,235						447,213						447,192						447,172						447,151						447,131
Investments pending settlement, net					—						31,767						14,448						—						3,000						7,458
Other liabilities					74,915						61,298						63,523						75,506						62,729						48,878
TOTAL LIABILITIES				$	4,842,820					$	4,846,001					$	4,823,917					$	4,627,680					$	4,950,616					$	4,921,877
SHAREHOLDERS’ EQUITY
Preferred shares
Series A, non-cumulative				$	8,000					$	8,000					$	8,000					$	8,000					$	8,000					$	8,000
Common shares					64,081						64,591						65,968						66,480						66,196						66,096
Additional paid-in capital					1,355,468						1,378,685						1,431,623						1,458,063						1,452,438						1,450,435
Accumulated other comprehensive income (loss)					10,652				(47,525)						(131)						(14,465)						(11,123)						(82,087)
Retained earnings					1,087,420						976,095						861,086						779,796						601,663						494,091
TOTAL SHAREHOLDERS’ EQUITY				$	2,525,621					$	2,379,846					$	2,366,546					$	2,297,874					$	2,117,174					$	1,936,535
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY				$	7,368,441					$	7,225,847					$	7,190,463					$	6,925,554					$	7,067,790					$	6,858,412
Book value per common share				$	36.21					$	33.67					$	32.77					$	31.45					$	28.87					$	26.19
Diluted book value per common share (treasury stock method)				$	32.81					$	30.56					$	30.19					$	28.87					$	26.52					$	24.24
RATIOS
Debt-to-capital			15.0%						15.8%						15.9%						16.3%						17.4%						18.8%

4

ENDURANCE SPECIALTY HOLDINGS LTD.

Annual Aggregate Risk Curve

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. Forecasted investment income, acquisition and G&A expenses are held constant across all scenarios. Losses included above are net of reinsurance including collateralized reinsurance and ILW purchases. 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 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’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 10K for the year ended December 31, 2006.

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ENDURANCE SPECIALTY HOLDINGS LTD.

Annual Aggregate Risk Curve

Annual Aggregate Risk Curve Comparison

												Change from July 1, 2006 – June 30, 2007 to July 1, 2007 – June 30, 2008						Change from Jan. 1, 2007 – Dec. 31, 2007 to July 1, 2007 – June 30, 2008
(in millions)			July 1, 2006 – June 30, 2007			Jan. 1, 2007 – Dec. 31, 2007			July 1, 2007 – June 30, 2008			$ Change			% Change			$ Change			% Change
Median Result			$    400			$    381			$    391			($9)			(2.3%)			$10			2.6%
Average Result			342			341			342			0			0.0%			1			0.3%
1 in 10 year annual gain			64			91			64			0			0.0%			(27)			(42.2%)
1 in 25 year annual loss			(182)			(66)			(141)			41			(29.1%)			(75)			53.2%
1 in 50 year annual loss			(334)			(172)			(319)			15			(4.7%)			(147)			46.1%
1 in 100 year annual loss			(486)			(287)			(468)			18			(3.8%)			(181)			38.7%
1 in 250 year annual loss			(707)			(396)			(694)			13			(1.9%)			(298)			42.9%
1 in 500 year annual loss			(904)			(500)			(884)			20			(2.3%)			(384)			43.4%

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 10K for the year ended December 31, 2006.

6

ENDURANCE SPECIALTY HOLDINGS LTD.

SEGMENT DISTRIBUTION
FOR THE NINE MONTHS ENDED SEPT. 30, 2007

Gross Premiums Written = $1,527 million^[a]

[a] Prior to deposit accounting adjustments.

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ENDURANCE SPECIALTY HOLDINGS LTD.

CONSOLIDATED SEGMENT DATA
FOR THE QUARTER ENDED SEPT. 30, 2007

			Insurance						Reinsurance						Total Company Sub-total						Deposit Accounting Adjustment[a]						Reported Totals
UNDERWRITING REVENUES
Gross premiums written				$	180,046					$	243,787					$	423,833				($   562)							$	423,271
Net premiums written				$	137,404					$	240,774					$	378,178				($   562)							$	377,616
Net premiums earned				$	130,640					$	275,776					$	406,416				($6,674)							$	399,742
Other underwriting income					—						—						—						1,697				1,697
Total underwriting revenues				$	130,640					$	275,776					$	406,416				($4,977)							$	401,439
UNDERWRITING EXPENSES
Losses and loss expenses				$	69,709					$	119,798					$	189,507				($3,051)							$	186,456
Acquisition expenses					19,489						58,531						78,020				(1,416)								76,604
General and administrative expenses					21,988						33,133						55,121						—						55,121
Total expenses					111,186						211,462						322,648				(4,467)								318,181
UNDERWRITING INCOME				$	19,454					$	64,314					$	83,768				($   510)							$	83,258
GAAP RATIOS
Loss ratio			53.4%						43.5%						46.6%						45.7%						46.6%
Acquisition expense ratio			14.9%						21.2%						19.2%						21.2%						19.2%
General and administrative expense ratio			16.8%						12.0%						13.6%						—						13.8%
Combined ratio			85.1%						76.7%						79.4%						66.9%						79.6%
STATUTORY RATIOS
Loss ratio			53.4%						43.5%						46.6%						45.7%						46.6%
Acquisition expense ratio			17.4%						27.4%						23.8%						6.9%						23.8%
General and administrative expense ratio			15.9%						13.8%						14.5%						—						14.6%
Combined ratio			86.7%						84.7%						84.9%						52.6%						85.0%

[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 SEPT. 30, 2007

			Insurance			Reinsurance			Total Company Sub-total			Deposit Accounting Adjustment[a]			Reported Totals
AS REPORTED
GAAP RATIOS
Loss ratio			53.4%			43.5%			46.6%			45.7%			46.6%
Acquisition expense ratio			14.9%			21.2%			19.2%			21.2%			19.2%
General and administrative expense ratio			16.8%			12.0%			13.6%			—			13.8%
Combined ratio			85.1%			76.7%			79.4%			66.9%			79.6%
EFFECT OF PRIOR ACCIDENT YEAR RESERVE DEVELOPMENT FAVORABLE/(UNFAVORABLE)
GAAP RATIOS
Loss ratio			19.2%			2.9%			8.2%			(64.1)%			9.4%
NET OF PRIOR ACCIDENT YEAR RESERVE DEVELOPMENT
GAAP RATIOS
Loss ratio			72.6%			46.4%			54.8%			(18.4)%			56.0%
Acquisition expense ratio			14.9%			21.2%			19.2%			21.2%			19.2%
General and administrative expense ratio			16.8%			12.0%			13.6%			—			13.8%
Combined ratio			104.3%			79.6%			87.6%			2.8%			89.0%

[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
			SEPT. 30, 2007						JUNE 30, 2007						MAR. 31, 2007						DEC. 31, 2006						SEPT. 30, 2006						SEPT. 30, 2005
UNDERWRITING REVENUES
Gross premiums written				$	180,046					$	197,967					$	147,033					$	180,584					$	156,781					$	110,983
Net premiums written				$	137,404					$	152,000					$	108,089					$	138,436					$	98,328					$	98,303
Net premiums earned				$	130,640					$	124,057					$	110,324					$	102,921					$	90,062					$	91,525
UNDERWRITING EXPENSES
Losses and loss expenses				$	69,709					$	63,422					$	63,529					$	83,370					$	57,165					$	167,395
Acquisition expenses					19,489						16,528						13,826						11,382						8,492						6,668
General and administrative expenses					21,988						18,592						22,217						13,983						13,760						9,941
Total expenses					111,186						98,542						99,572						108,735						79,417						184,004
UNDERWRITING INCOME (LOSS)				$	19,454					$	25,515					$	10,752				($    5,814)							$	10,645				($  92,479)
GAAP RATIOS
Loss ratio			53.4%						51.1%						57.6%						81.0%						63.5%						182.9%
Acquisition expense ratio			14.9%						13.3%						12.5%						11.1%						9.4%						7.3%
General and administrative expense ratio			16.8%						15.0%						20.2%						13.5%						15.3%						10.9%
Combined ratio			85.1%						79.4%						90.3%						105.6%						88.2%						201.1%
STATUTORY RATIOS
Loss ratio			53.4%						51.1%						57.6%						81.0%						63.5%						182.9%
Acquisition expense ratio			17.4%						13.9%						19.2%						18.9%						17.0%						7.6%
General and administrative expense ratio			15.9%						12.0%						23.9%						9.8%						12.2%						8.1%
Combined ratio			86.7%						77.0%						100.7%						109.7%						92.7%						198.6%

10

ENDURANCE SPECIALTY HOLDINGS LTD.

REINSURANCE SEGMENT DATA

			FOR THE QUARTERS ENDED
			SEPT. 30, 2007						JUNE 30, 2007						MAR. 31, 2007						DEC. 31, 2006						SEPT. 30, 2006						SEPT. 30, 2005
UNDERWRITING REVENUES
Gross premiums written				$	243,787					$	328,815					$	429,473					$	117,313					$	326,061					$	294,861
Net premiums written				$	240,774					$	316,205					$	428,791					$	117,121					$	293,723					$	285,615
Net premiums earned				$	275,776					$	324,318					$	291,396					$	338,266					$	353,868					$	370,374
UNDERWRITING EXPENSES
Losses and loss expenses				$	119,798					$	171,172					$	169,699					$	69,483					$	158,804					$	630,055
Acquisition expenses					58,531						64,555						61,417						81,883						83,244						75,340
General and administrative expenses					33,133						30,072						26,612						37,896						34,775						31,533
Total expenses					211,462						265,799						257,728						189,262						276,823						736,928
UNDERWRITING INCOME (LOSS)				$	64,314					$	58,519					$	33,668					$	149,004					$	77,045				($366,554)
GAAP RATIOS
Loss ratio			43.5%						52.8%						58.2%						20.6%						44.9%						170.1%
Acquisition expense ratio			21.2%						19.9%						21.1%						24.2%						23.5%						20.3%
General and administrative expense ratio			12.0%						9.3%						9.1%						11.2%						9.8%						8.5%
Combined ratio			76.7%						82.0%						88.4%						56.0%						78.2%						198.9%
STATUTORY RATIOS
Loss ratio			43.5%						52.8%						58.2%						20.5%						44.9%						170.1%
Acquisition expense ratio			27.4%						21.8%						15.4%						31.4%						29.7%						21.2%
General and administrative expense ratio			13.8%						9.5%						6.2%						32.4%						11.8%						11.0%
Combined ratio			84.7%						84.1%						79.8%						84.3%						86.4%						202.3%

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 20.

11

ENDURANCE SPECIALTY HOLDINGS LTD.

SEGMENT GROSS PREMIUMS WRITTEN BY LINE OF BUSINESS

			FOR THE QUARTERS ENDED
			SEPT. 30, 2007						JUNE 30, 2007						MARCH 31, 2007						DEC. 31, 2006						SEPT. 30, 2006						SEPT 30, 2005
INSURANCE SEGMENT
Property				$	28,379					$	40,835					$	27,042					$	44,268					$	47,860					$	27,736
Casualty					30,133						42,343						26,796						35,976						28,294						27,427
Healthcare liability					30,262						28,054						18,790						17,067						37,812						41,972
Workers’ compensation					70,398						57,142						61,633						62,355						24,993						—
Professional lines					20,874						29,593						12,772						20,918						17,822						13,848
TOTAL INSURANCE				$	180,046					$	197,967					$	147,033					$	180,584					$	156,781					$	110,983
REINSURANCE SEGMENT
Casualty				$	66,006					$	27,788					$	91,936					$	50,411					$	86,933					$	89,057
Property					112,407						65,476						36,701						22,170						124,235						70,601
Catastrophe					43,684						147,506						140,499						18,912						49,385						66,127
Agriculture					6,917						24,118						93,061						(2,124	)					16,324				(1,252)
Marine					1,598						12,220						33,080						15,344						16,237						41,608
Aerospace					7,581						20,263						6,480						10,795						17,761						14,932
Surety and other specialty					5,594						31,444						27,716						1,805						15,186						13,788
TOTAL REINSURANCE				$	243,787					$	328,815					$	429,473					$	117,313					$	326,061					$	294,861
TOTAL COMPANY SUBTOTAL				$	423,833					$	526,782					$	576,506					$	297,897					$	482,842					$	405,844
DEPOSIT ACCOUNTING ADJUSTMENT[a]			(562)						(19,979)						(3,215)						(7,102)						(6,629)						(35,279)
REPORTED TOTALS				$	423,271					$	506,803					$	573,291					$	290,795					$	476,213					$	370,565

[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
			SEPT. 30, 2007						JUNE 30, 2007						MARCH 31, 2007						DEC. 31, 2006						SEPT. 30, 2006						SEPT. 30, 2005
INSURANCE SEGMENT
Property				$	7,689					$	17,262					$	6,127					$	19,504					$	4,397					$	20,147
Casualty					16,467						26,815						17,761						24,305						16,194						22,341
Healthcare liability					30,262						28,054						18,790						17,067						37,812						41,972
Workers’ compensation					64,131						52,999						54,810						58,607						22,215						—
Professional lines					18,855						26,870						10,601						18,953						17,710						13,848
TOTAL INSURANCE				$	137,404					$	152,000					$	108,089					$	138,436					$	98,328					$	98,308
REINSURANCE SEGMENT
Casualty				$	65,946					$	27,610					$	91,921					$	50,367					$	86,716					$	86,439
Property					112,398						67,074						36,527						22,170						116,146						69,337
Catastrophe					41,025						137,720						140,183						18,912						31,282						62,262
Agriculture					7,028						22,018						93,061						(2,124	)					15,483				(1,251)
Marine					559						12,704						33,016						15,344						12,970						41,608
Aerospace					7,831						18,326						6,375						10,795						15,976						14,932
Surety and other specialty					5,987						30,753						27,708						1,657						15,150						12,288
TOTAL REINSURANCE				$	240,774					$	316,205					$	428,791					$	117,121					$	293,723					$	285,615
TOTAL COMPANY SUBTOTAL				$	378,178					$	468,205					$	536,880					$	255,557					$	392,051					$	383,923
DEPOSIT ACCOUNTING ADJUSTMENT[a]			(562)						(19,979)						(3,215)						(7,102)						(6,629)						(35,279)
REPORTED TOTALS				$	377,616					$	448,226					$	533,665					$	248,455					$	385,422					$	348,644

[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 NINE MONTHS ENDED SEPT. 30, 2007

			Insurance						Reinsurance						Total Company Sub-total						Deposit Accounting Adjustment[a]			Reported Totals
UNDERWRITING REVENUES
Gross premiums written				$	525,046					$	1,002,075					$	1,527,121				($23,756)				$	1,503,365
Net premiums written				$	397,494					$	985,769					$	1,383,263				($23,756)				$	1,359,507
Net premiums earned				$	365,021					$	891,489					$	1,256,510				($62,172)				$	1,194,338
Other underwriting loss					—						—						—				(7,442)			(7,442)
Total underwriting revenues				$	365,021					$	891,489					$	1,256,510				($69,614)				$	1,186,896
UNDERWRITING EXPENSES
Losses and loss expenses				$	196,660					$	460,670					$	657,330				($53,101)				$	604,229
Acquisition expenses					49,844						184,503						234,347				(16,272)					218,075
General and administrative expenses					62,796						89,818						152,614				—					152,614
Total expenses					309,300						734,991						1,044,291				(69,373)					974,918
UNDERWRITING INCOME				$	55,721					$	156,498					$	212,219				($241)				$	211,978
GAAP RATIOS
Loss ratio			53.9%						51.7%						52.3%						85.4%			50.6%
Acquisition expense ratio			13.6%						20.7%						18.7%						26.2%			18.2%
General and administrative expense ratio			17.2%						10.0%						12.1%						—			12.8%
Combined ratio			84.7%						82.4%						83.1%						111.6%			81.6%
STATUTORY RATIOS
Loss ratio			53.9%						51.7%						52.3%						85.4%			50.6%
Acquisition expense ratio			16.5%						20.4%						19.3%						27.5%			19.2%
General and administrative expense ratio			15.7%						9.1%						11.0%						—			11.2%
Combined ratio			86.1%						81.2%						82.6%						112.9%			81.0%

[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 NINE MONTHS ENDED SEPT. 30, 2007

			Insurance			Reinsurance			Total Company Sub-total			Deposit Accounting Adjustment[a]			Reported Totals
AS REPORTED
GAAP RATIOS
Loss ratio			53.9%			51.7%			52.3%			85.4%			50.6%
Acquisition expense ratio			13.6%			20.7%			18.7%			26.2%			18.2%
General and administrative expense ratio			17.2%			10.0%			12.1%			—			12.8%
Combined ratio			84.7%			82.4%			83.1%			111.6%			81.6%
EFFECT OF PRIOR ACCIDENT YEAR RESERVE DEVELOPMENT
FAVORABLE / (UNFAVORABLE)
GAAP RATIOS
Loss ratio			19.3%			4.4%			8.8%			(17.7)%			10.1%
NET OF PRIOR ACCIDENT YEAR RESERVE DEVELOPMENT
GAAP RATIOS
Loss ratio			73.2%			56.1%			61.1%			67.7%			60.7%
Acquisition expense ratio			13.6%			20.7%			18.7%			26.2%			18.2%
General and administrative expense ratio			17.2%			10.0%			12.1%			—			12.8%
Combined ratio			104.0%			86.8%			91.9%			93.9%			91.7%

[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 NINE MONTHS ENDED																		FOR THE YEARS ENDED
			SEPT. 30, 2007						SEPT. 30, 2006						SEPT. 30, 2005						DEC. 31, 2006						DEC. 31, 2005
UNDERWRITING REVENUES
Gross premiums written				$	525,046					$	396,161					$	323,058					$	576,745					$	421,431
Net premiums written				$	397,494					$	278,201					$	305,168					$	416,637					$	387,654
Net premiums earned				$	365,021					$	268,841					$	269,146					$	371,762					$	364,175
UNDERWRITING EXPENSES
Losses and loss expenses				$	196,660					$	168,940					$	292,368					$	252,310					$	343,577
Acquisition expenses					49,844						21,147						21,064						32,528						27,483
General and administrative expenses					62,796						35,542						26,502						49,524						35,987
Total expenses					309,300						225,629						339,934						334,362						407,047
UNDERWRITING INCOME (LOSS)				$	55,721					$	43,212				($70,788)						$37,400						($42,872)
GAAP RATIOS
Loss ratio			53.9%						62.8%						108.6%						67.9%						94.3%
Acquisition expense ratio			13.6%						7.9%						7.8%						8.7%						7.6%
General and administrative expense ratio			17.2%						13.2%						9.8%						13.3%						9.9%
Combined ratio			84.7%						83.9%						126.2%						89.9%						111.8%
STATUTORY RATIOS
Loss ratio			53.9%						62.8%						108.6%						67.9%						94.3%
Acquisition expense ratio			16.5%						11.4%						6.6%						13.9%						6.7%
General and administrative expense ratio			15.7%						10.9%						8.0%						10.5%						8.5%
Combined ratio			86.1%						85.1%						123.2%						92.3%						109.5%

16

ENDURANCE SPECIALTY HOLDINGS LTD.

REINSURANCE SEGMENT DATA

			FOR THE NINE MONTHS ENDED									FOR THE YEARS ENDED
			SEPT. 30, 2007			SEPT. 30, 2006			SEPT. 30, 2005			DEC. 31, 2006			DEC. 31, 2005
UNDERWRITING REVENUES
Gross premiums written			$1,002,075			$1,254,576			$1,275,323			$1,371,889			$1,390,737
Net premiums written			$985,769			$1,210,798			$1,259,380			$1,327,919			$1,374,986
Net premiums earned			$891,489			$1,108,901			$1,092,851			$1,447,167			$1,439,266
UNDERWRITING EXPENSES
Losses and loss expenses			$460,670			$627,479			$999,564			$696,962			$1,368,284
Acquisition expenses			184,503			259,310			245,067			341,194			327,236
General and administrative expenses			89,818			102,952			88,950			140,849			110,432
Total expenses			734,991			989,741			1,333,581			1,179,005			1,805,952
UNDERWRITING INCOME (LOSS)			$156,498			$119,160			($240,730)			$268,162			($366,686)
GAAP RATIOS
Loss ratio			51.7%			56.6%			91.5%			48.2%			95.1%
Acquisition expense ratio			20.7%			23.4%			22.4%			23.6%			22.7%
General and administrative expense ratio			10.0%			9.3%			8.1%			9.7%			7.7%
Combined ratio			82.4%			89.3%			122.0%			81.5%			125.5%
STATUTORY RATIOS
Loss ratio			51.7%			56.6%			91.5%			48.2%			95.1%
Acquisition expense ratio			20.4%			22.8%			22.5%			23.5%			23.0%
General and administrative expense ratio			9.1%			8.5%			7.1%			10.6%			8.0%
Combined ratio			81.2%			87.9%			121.1%			82.3%			126.1%

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 NINE MONTHS ENDED																		FOR THE YEAR ENDED
			SEPT. 30, 2007						SEPT. 30, 2006						SEPT. 30, 2005						DEC. 31, 2006						DEC. 31, 2005
INSURANCE SEGMENT
Property				$	96,256					$	129,024					$	87,042					$	173,292					$	112,736
Casualty					99,273						92,957						94,633						128,933						129,951
Healthcare liability					77,105						89,921						95,964						106,988						117,120
Workers’ compensation					189,173						31,424						—						93,779						—
Professional lines					63,239						52,835						45,419						73,753						61,624
TOTAL INSURANCE				$	525,046					$	396,161					$	323,058					$	576,745					$	421,431
REINSURANCE SEGMENT
Casualty				$	185,730					$	349,700					$	340,249					$	400,111					$	385,604
Property					214,584						296,713						341,233						318,883						361,859
Catastrophe					331,689						272,843						276,489						291,755						300,892
Agriculture					124,095						109,228						33,814						107,104						33,035
Marine					46,898						88,043						97,349						103,387						118,976
Aerospace					34,325						66,021						119,102						76,816						120,501
Surety and other specialty					64,754						72,028						67,086						73,833						69,870
TOTAL REINSURANCE				$	1,002,075					$	1,254,576					$	1,275,322					$	1,371,889					$	1,390,737
TOTAL COMPANY SUBTOTAL				$	1,527,121					$	1,650,737					$	1,598,380					$	1,948,634					$	1,812,168
DEPOSIT ACCOUNTING ADJUSTMENT[a]			(23,756)						(151,890)						(122,135)						(158,992)						(143,291)
REPORTED TOTALS				$	1,503,365					$	1,498,847					$	1,476,245					$	1,789,642					$	1,668,877

[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 NINE MONTHS ENDED																		FOR THE YEAR ENDED
			SEPT. 30, 2007						SEPT. 30, 2006						SEPT. 30, 2005						DEC. 31, 2006						DEC. 31, 2005
INSURANCE SEGMENT
Property				$	31,078					$	41,786					$	75,707					$	61,290					$	91,774
Casualty					61,044						65,512						87,987						89,817						117,045
Healthcare liability					77,105						89,921						95,964						106,988						117,120
Workers’ compensation					171,941						28,260						—						86,867						—
Professional lines					56,326						52,722						45,510						71,675						61,715
TOTAL INSURANCE				$	397,494					$	278,201					$	305,168					$	416,637					$	387,654
REINSURANCE SEGMENT
Casualty				$	185,478					$	346,295					$	335,170					$	396,663					$	380,303
Property					215,999						288,624						339,895						310,795						360,517
Catastrophe					318,929						251,215						272,626						270,126						297,027
Agriculture					122,106						108,387						33,814						106,262						33,035
Marine					46,277						84,776						97,349						100,120						118,976
Aerospace					32,532						62,671						119,102						73,466						120,501
Surety and other specialty					64,448						68,830						61,424						70,487						64,627
TOTAL REINSURANCE				$	985,769					$	1,210,798					$	1,259,380					$	1,327,919					$	1,374,986
TOTAL COMPANY SUBTOTAL				$	1,383,263					$	1,488,999					$	1,564,548					$	1,744,556					$	1,762,640
DEPOSIT ACCOUNTING ADJUSTMENT[a]			(23,756)						(151,890)						(122,136)						(158,992)						(143,291)
REPORTED TOTALS				$	1,359,507					$	1,337,109					$	1,442,412					$	1,585,564					$	1,619,349

[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 SEPT. 30, 2007

			Includes Deposit Accounting Adjustments																		Excludes Deposit Accounting Adjustments
			Insurance						Reinsurance						Total Company						Insurance						Reinsurance						Total Company
UNDERWRITING REVENUES
Gross premiums written				$	180,046					$	243,225					$	423,271					$	180,046					$	243,787					$	423,833
Net premiums written				$	137,404					$	240,212					$	377,616					$	137,404					$	240,774					$	378,178
Net premiums earned				$	130,640					$	269,102					$	399,742					$	130,640					$	275,776					$	406,416
Other underwriting income					—					$	1,697						1,697						—						—						—
Total underwriting revenues					130,640						270,799						401,439						130,640						275,776						406,416
UNDERWRITING EXPENSES
Losses and loss expenses				$	69,709					$	116,747					$	186,455					$	69,709					$	119,798					$	189,507
Acquisition expenses					19,489						57,115						76,604						19,489						58,531						78,020
General and administrative expenses					21,988						33,133						55,121						21,988						33,133						55,121
Total expenses					111,186						206,995						318,181						111,186						211,462						322,648
UNDERWRITING INCOME				$	19,454					$	63,804					$	83,258					$	19,454					$	64,314					$	83,768
GAAP RATIOS
Loss ratio			53.4%						43.4%						46.6%						53.4%						43.5%						46.6%
Acquisition expense ratio			14.9%						21.2%						19.2%						14.9%						21.2%						19.2%
General and administrative expense ratio			16.8%						12.3%						13.8%						16.8%						12.0%						13.6%
Combined ratio			85.1%						76.9%						79.6%						85.1%						76.7%						79.4%

20

ENDURANCE SPECIALTY HOLDINGS LTD.

DEPOSIT ACCOUNTING ADJUSTMENT IMPACTS ON SEGMENT DATA
FOR THE NINE MONTHS ENDED SEPT. 30, 2007

			Includes Deposit Accounting Adjustments																		Excludes Deposit Accounting Adjustments
			Insurance						Reinsurance						Total Company						Insurance						Reinsurance						Total Company
UNDERWRITING REVENUES
Gross premiums written				$	525,046					$	978,319					$	1,503,365					$	525,046					$	1,002,075					$	1,527,121
Net premiums written				$	397,494					$	962,013					$	1,359,507					$	397,494					$	985,769					$	1,383,263
Net premiums earned				$	365,021					$	829,317					$	1,194,338					$	365,021					$	891,489					$	1,256,510
Other underwriting loss					—				($7,442)						(7,442)								—						—						—
Total underwriting revenues					365,021						821,875						1,186,896						365,021						891,489						1,256,510
UNDERWRITING EXPENSES
Losses and loss expenses				$	196,660					$	407,569					$	604,229					$	196,660					$	460,670					$	657,330
Acquisition expenses					49,844						168,231						218,075						49,844						184,503						234,347
General and administrative expenses					62,796						89,818						152,614						62,796						89,818						152,614
Total expenses					309,300						665,618						974,918						309,300						734,991						1,044,291
UNDERWRITING INCOME				$	55,721					$	156,257					$	211,978					$	55,721					$	156,498					$	212,219
GAAP RATIOS
Loss ratio			53.9%						49.2%						50.6%						53.9%						51.7%						52.3%
Acquisition expense ratio			13.6%						20.3%						18.2%						13.6%						20.7%						18.7%
General and administrative expense ratio			17.2%						10.8%						12.8%						17.2%						10.0%						12.1%
Combined ratio			84.7%						80.3%						81.6%						84.7%						82.4%						83.1%

21

ENDURANCE SPECIALTY HOLDINGS LTD.

RETURN ON EQUITY ANALYSIS

			FOR THE NINE MONTHS ENDED SEPT. 30, 2007
Average common equity[a]			$2,211,748
Net premiums earned			$1,194,338
Combined ratio			81.6%
Operating margin			18.4%
Premium leverage			0.54x
Implied ROAE from underwriting activity			9.9%
Average cash and invested assets at amortized cost			$5,688,869
Investment leverage			2.57x
Year to date investment income yield, pretax			3.8%
Implied ROAE from investment activity			9.8%
Financing Costs[b]			(1.5)%
Implied Pre-tax Operating ROAE, for period			18.2%
Implied Pre-tax Operating ROAE, annualized			24.2%

[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.

22

ENDURANCE SPECIALTY HOLDINGS LTD.

ANNUALIZED OPERATING & INVESTMENT LEVERAGE

			FOR THE QUARTERS ENDED																								YEARS ENDED DECEMBER 31,
			SEPT. 30, 2007						JUNE 30, 2007						MAR. 31, 2007						DEC. 31, 2006						2006						2005
Average common equity[a]				$	2,252,734					$	2,173,196					$	2,132,210					$	2,007,524					$	1,885,209					$	1,767,499
Net premiums earned				$	399,742					$	417,551					$	377,045					$	403,715					$	1,638,574					$	1,723,694
Operating leverage					0.18x						0.19x						0.18x						0.20x						0.87x						0.98x
Annualized operating leverage					0.71x						0.77x						0.71x						0.80x						0.87x						0.98x
Avg. cash and invested assets at amortized cost				$	5,751,342					$	5,659,148					$	5,596,675					$	5,496,389					$	5,275,481					$	4,463,908
Investment leverage					2.55x						2.60x						2.62x						2.74x						2.80x						2.53x

[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 SEPT. 30, 2007

Type of Investment			Fair Value						Percentage
Cash and equivalents[a]				$	653,103				11.3%
U.S. government and agencies					527,452				9.1%
Corporate securities					917,957				15.8%
Foreign government					215,155				3.7%
Municipals					15,538				0.3%
Asset-backed securities					537,425				9.3%
Mortgage-backed securities					2,590,281				44.6%
Other investments[b]					343,926				5.9%
Total				$	5,800,837				100.0%

Ratings			Fair Value						Percentage
U.S. Government and agencies				$	527,452				10.2%
AAA/Aaa and agency RMBS					3,465,948				67.3%
AA/Aa					352,782				6.9%
A/A					360,750				7.0%
BBB					30,369				0.6%
Below BBB					66,297				1.3%
Not Rated					210				0.0%
Other investments					343,926				6.7%
Total				$	5,147,734				100.0%

Performance			Sept. 30, 2007
Yield[c]			5.1%
Duration[d]			2.8

Investment Income			Quarter Ended Sept. 30, 2007						Quarter Ended June 30, 2007						Quarter Ended Mar. 31, 2007						Quarter Ended Dec. 31, 2006
Other Investments					($3,489	)				$	13,519					$	12,153					$	11,170
Total net investment income				$	62,605					$	78,548					$	74,813					$	72,033

Note:

[a] Cash and equivalents are shown net of investments pending settlement.

[b] Other investments includes investments in alternative and high yield fixed maturity security funds.

[c] Annualized earned yield excludes realized and unrealized gains and losses on fixed maturity investments.

[d] Duration excludes other investments and operating cash

24

ENDURANCE SPECIALTY HOLDINGS LTD.

STRUCTURED SECURITIES DETAIL
AS OF SEPT. 30, 2007

Securitized (RMBS, CMBS, ABS and CDO) securities ratings			Fair Value						Percentage			Percentage of Investment Portfolio
U.S. Government and agencies				$	1,349,159				43.1%			23.3%
AAA/Aaa					1,763,991				56.4%			30.4%
AA/Aa					745				0.0%			0.0%
A/A					496				0.0%			0.0%
BBB					5,073				0.2%			0.1%
Below BBB					8,258				0.3%			0.1%
Total				$	3,127,722				100.0%			53.9%

Structured securities sectors (RMBS, CMBS, ABS and CDO)			Fair Value						Percentage			Percentage
Commercial				$	850,131				27.2%			14.7%
Residential					1,800,772				57.6%			31.0%
Consumer					476,819				15.2%			8.2%
Total				$	3,127,722				100.0%			53.9%
Spread Duration                                 3.48 years

Subprime collateralized securities			Fair Value						Percentage			Percentage
AAA				$	13,554				99.0%			0.2%
BBB and below					132				1.0%			0.0%
Total				$	13,686				100.0%			0.2%
Spread Duration                                0.72 years

Collateralized debt obligations (CDO’s)			Fair Value						Percentage			Percentage
AAA/Aaa					—				—			0.0%
AA/Aa					—				—			0.0%
A/A					—				—			0.0%
BBB				$	1,128				56.2%			0.0%
Below BBB					879				43.8%			0.0%
Total				$	2,007				100.0%			0.0%

Collateralized dept obligations (CDO’s)			Fair Value						Percentage			Percentage
Commercial				$	1,932				96.3%			0.0%
Residential					75				3.7%			0.0%
Total				$	2,007				100.0%			0.0%
Spread Duration                                 3.76 years

25

ENDURANCE SPECIALTY HOLDINGS LTD.

ACTIVITY IN RESERVE FOR LOSSES AND LOSS EXPENSES

			QUARTER ENDED SEPT. 30, 2007			QUARTER ENDED JUNE 30, 2007			QUARTER ENDED MAR. 31, 2007			QUARTER ENDED DEC. 31, 2006			QUARTER ENDED SEPT. 30, 2006
Incurred related to:
Current year			$    223,946			$    234,768			$    266,501			$    158,160			$    198,073
Prior years			(37,490)			(27,589)			(55,907)			(26,740)			(10,040)
Total incurred			$    186,456			$    207,179			$    210,594			$    131,420			$    188,033
Paid related to:
Current year			($    24,416)			($    15,896)			($         205)			($    34,706)			($    19,698)
Prior years			(134,212)			(232,921)			(138,492)			(183,233)			(194,221)
Total paid			($  158,628)			($  248,817)			($  138,697)			($  217,939)			($  213,919)

26

ENDURANCE SPECIALTY HOLDINGS LTD.

ACTIVITY IN RESERVE FOR LOSSES AND LOSS EXPENSES BY SEGMENT

(FAVORABLE) ADVERSE PRIOR ACCIDENT YEAR DEVELOPMENT DURING THE NINE MONTHS ENDED SEPT. 30, 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			($55,907)
Quarter ended June 30, 2007			(18,725)			(8,441)			(27,166)			423			(27,589)
Quarter ended Sept. 30, 2007			(25,101)			(8,112)			(33,213)			4,277			(37,490)
Nine months ended Sept, 30, 2007			($  70,333)			($  39,625)			($  109,958)			$  11,028			($  120,986)

(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)

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

			Insurance			Reinsurance			Total Company Sub-total			Deposit Accounting Adjustment[a]			Total Company
Incurred related to prior years
Quarter ended March 31, 2005			($    9,788)			($    36,213)			($    46,001)			—			($    46,001)
Quarter ended June 30, 2005			(16,149)			(11,599)			(27,748)			—			(27,748)
Quarter ended September 30, 2005			(2,789)			(21,087)			(23,876)			—			(23,876)
Quarter ended December 31, 2005			(29,270)			(35,567)			(64,837)			—			(64,837)
Year ended December 31, 2005			($  57,996)			($  104,466)			($  162,462)			—			($  162,462)

[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, 2006
			SEPT. 30, 2007			JUNE 30, 2007			MAR. 31, 2007			DEC. 31, 2006
INSURANCE SEGMENT
Short tail[a]			($  1,003)			($  15,172)			($  16,098)			$      6,508			($  20,198)
Long Tail[b]			(24,098)			(3,553)			(10,409)			(14,031)			(34,189)
TOTAL INSURANCE			(25,101)			(18,725)			(26,507)			(7,523)			(54,387)
REINSURANCE SEGMENT
Short tail[a]			(12,953)			(10,114)			(15,583)			(20,330)			29,409
Long Tail[b]			(2,269)			1,106			(5,198)			444			(20,118)
Other[c]			7,110			567			(2,291)			(2,318)			(14,280)
TOTAL REINSURANCE			(8,112)			(8,441)			(23,072)			(22,204)			(4,989)
TOTAL COMPANY SUBTOTAL			(33,213)			(27,166)			(49,579)			(29,727)			(59,376)
DEPOSIT ACCOUNTING ADJUSTMENT[d]			4,277			423			6,328			(2,987)			(1,637)
REPORTED TOTALS			($  37,490)			($  27,589)			($  55,907)			($  26,740)			($  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.

28

ENDURANCE SPECIALTY HOLDINGS LTD.

ANALYSIS OF UNPAID LOSSES AND LOSS EXPENSE

			Insurance																		Reinsurance
			Short Tail						Long Tail						Total						Short Tail						Long Tail						Other						Total						Total Company						Deposit Accounting Adjustment[a]			Reported Totals
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%
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%

[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

						QUARTER ENDED SEPT. 30,						NINE MONTHS ENDED SEPT. 30,
						2007			2006			2007			2006
DILUTIVE SHARES			Average market price per share			$39.53			$32.62			$37.61			$32.09
OUTSTANDING: AS REPORTED			Basic weighted average common shares outstanding			64,468			66,339			65,530			66,393
			Add: weighted avg. unvested restricted share units			1,090			868			879			802
			Weighted average exercise price per share			—			—			—			—
			Proceeds from unrecognized restricted share unit expense			$22,283			$12,396			$22,283			$12,396
			Less: restricted share units bought back via treasury method			(564)			(380)			(592)			(386)
			Add: weighted avg. dilutive warrants outstanding			7,202			7,202			7,202			7,202
			Weighted average exercise price per share			$16.12			$17.12			$16.12			$17.12
			Less: warrants bought back via treasury method			(2,937)			(3,781)			(3,087)			(3,843)
			Add: weighted avg. dilutive options outstanding			2,174			2,885			2,314			2,984
			Weighted average exercise price per share			$18.19			$18.57			$18.15			$18.52
			Proceeds from unrecognized option expense			$     80			$   108			$     80			$   108
			Less: options bought back via treasury method			(1,002)			(1,646)			(1,119)			(1,724)
			Weighted average dilutive shares outstanding			70,431			71,487			71,126			71,428

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

			QUARTER ENDED SEPT. 30,												NINE MONTHS ENDED SEPT. 30,
			2007						2006						2007						2006
Net income				$	131,401					$	128,230					$	368,577					$	299,316
Add (Less) after-tax items:
Net foreign exchange losses (gains)					(546	)					2,918						(918	)					(8,183	)
Net realized losses on investments					3,013						6,080						12,583						16,211
Operating income before preferred dividends				$	133,868					$	137,228					$	380,242					$	307,344
Preferred dividends					(3,875	)					(3,875	)					(11,625	)					($11,625	)
Operating income available to common shareholders				$	129,993					$	133,353					$	368,617					$	295,719
Weighted average common shares outstanding
Basic					64,468						66,339						65,530						66,393
Dilutive					70,431						71,487						71,126						71,428
Basic per common share data
Net income available to common shareholders				$	1.98					$	1.87					$	5.45					$	4.33
Add (Less) after-tax items:
Net foreign exchange losses (gains)					(0.01	)					0.05						(0.01	)					(0.12	)
Net realized losses on investments					0.05						0.09						0.19						0.24
Operating income available to common shareholders				$	2.02					$	2.01					$	5.63					$	4.45
Diluted per common share data
Net income available to common shareholders				$	1.81					$	1.74					$	5.02					$	4.03
Add (Less) after-tax items:
Net foreign exchange losses (gains)					0.00						0.04						(0.01	)					(0.12	)
Net realized losses on investments					0.04						0.09						0.17						0.23
Operating income available to common shareholders				$	1.85					$	1.87					$	5.18					$	4.14

31

ENDURANCE SPECIALTY HOLDINGS LTD.

DILUTIVE SHARES SENSITIVITY ANALYSIS

DILUTIVE SHARES OUSTANDING
Market Price per Share
$35.00			$36.00			$37.00			$38.00			$39.00			$40.00			$41.00			$42.00			$43.00			$44.00			$45.00
70,190			70,313			70,430			70,541			70,646			70,745			70,840			70,931			71,017			71,099			71,178

32

ENDURANCE SPECIALTY HOLDINGS LTD.

BOOK VALUE PER SHARE

						SEPT. 30,												DECEMBER 31, 2006
						2007						2006
DILUTIVE COMMON			Price per share at period end				$	41.55					$	35.26					$	36.58
SHARES OUTSTANDING:
AS-IF CONVERTED[a]			Basic common shares outstanding[b]					64,223						66,416						66,702
			Add: unvested restricted share units					1,039						814						790
			Add: dilutive warrants outstanding					7,202						7,202						7,202
			Weighted average exercise price per share				$	16.12					$	17.12					$	16.87
			Add: dilutive options outstanding					2,169						2,853						2,591
			Weighted average exercise price per share				$	18.18					$	18.59					$	18.50
			Book Value[c]				$	2,325,621					$	1,917,174					$	2,097,874
			Add: proceeds from converted warrants					116,102						123,304						121,504
			Add: proceeds from converted options					39,439						53,031						47,937
			Pro forma book value				$	2,481,162					$	2,093,509					$	2,267,315
			Dilutive shares outstanding					74,634						77,285						77,285
			Basic book value per common share				$	36.21					$	28.87					$	31.45
			Diluted book value per common share				$	33.24					$	27.09					$	29.34
DILUTIVE COMMON			Price per share at period end				$	41.55					$	35.26					$	36.58
SHARES OUTSTANDING:
TREASURY STOCK METHOD			Basic common shares outstanding[b]					64,223						66,416						66,702
			Add: unvested restricted share units					1,039						814						790
			Add: dilutive warrants outstanding					7,202						7,202						7,202
			Weighted average exercise price per share				$	16.12					$	17.12					$	16.87
			Less: warrants bought back via treasury method					(2,794	)					(3,497	)					(3,322	)
			Add: dilutive options outstanding					2,169						2,853						2,591
			Weighted average exercise price per share				$	18.18					$	18.59					$	18.50
			Less: options bought back via treasury method					(950	)					(1,503	)					(1,309	)
			Dilutive shares outstanding					70,891						72,285						72,654
			Basic book value per common share				$	36.21					$	28.87					$	31.45
			Diluted book value per common share				$	32.81					$	26.52					$	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.

33

ENDURANCE SPECIALTY HOLDINGS LTD.

SHAREHOLDER RETURN ANALYSIS

			NINE MONTHS ENDED SEPT. 30, 2007			YEARS ENDED DECEMBER 31,
						2006			2005			2004			2003
Net income (loss) available to common shareholders			$356,952			$482,626			($223,204)			$355,584			$263,437
Dividends paid to common shareholders			(49,135)			(66,262)			(61,695)			(50,346)			(20,505)
Shareholders’ equity[a]			2,325,621			2,097,874			1,672,543			1,862,455			1,644,815
Return on beginning equity			17.0%			28.9%			(12.0)%			21.6%			21.6%
Dividend payout ratio[b]			2.3%			4.0%			3.3%			3.1%			1.7%
Dilutive common shares outstanding			70,891			72,654			72,173			66,729			68,445
Diluted book value per common share (treasury stock method)			$32.81			$28.87			$23.17			$27.91			$24.03
Change in diluted book value per common share			13.6%			24.6%			(17.0)%			16.1%			10.6%
Total return to common shareholders[c]			15.9%			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