Turning to our results. For the fourth quarter, Endurance’s diluted book value per share shrank to 2.1% and now stands at 50.56. After adding back dividends paid, book value per share is down 1.9% for the year 2011. For 2011, Endurance produced a net loss of $94 million, while experiencing 467 million of catastrophe losses.
In the fourth quarter, the company posted a combined ratio of 112.5%, a number which included 22 percentage points of current year catastrophe losses. Year-over-year, fourth quarter written premiums grew materially, with a 39% increase in the gross premiums and a 19% increase in net premiums. These premium increases were attributable both to price increases and growth in policy counts, both in our Insurance and Reinsurance businesses.
Net investment income for the fourth quarter was 41 million, down from the 57 million we generated in the fourth quarter of 2010, as a result of lower alternative returns and fixed income yields. Finally, our balance sheet and capital position remained strong with our loss reserves generating 42 million of positive development in the fourth quarter and our P&L position is being comfortably within our risk tolerances. Later in the call I’ll provide further commentary on our performance for the quarter as well as some thoughts on our positioning for the 2012 year.
With that I’ll pass the call over to Mike McGuire, who will review our financial results in more detail.Mike McGuireThanks, David, and good morning everyone. Endurance generated a net loss of $27.4 million and $0.88 per diluted share for the fourth quarter and an operating loss of $31.3 million and $0.98 per diluted share. For the full-year we generate a net loss of $93.7 million or $2.95 per share and an operating loss of $128.2 million or $3.81 per share. Our diluted book value per share ended the year at $50.56, down 4.1% for the year. Adding back the $1.20 per share in dividends paid in the year, the decline in book value was 1.9%.Read the rest of this transcript for free on seekingalpha.com
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV