10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-K

ý Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the fiscal year ended December 31, 2016,

or

¨ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from  to

Commission file number 1-31599

ENDURANCE SPECIALTY HOLDINGS LTD.

(Exact name of registrant as specified in its charter)

Bermuda	98-0392908
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)

Waterloo House

100 Pitts Bay Road

Pembroke HM 08, Bermuda

(Address of principal executive offices, including postal code)

Registrant’s telephone number, including area code: (441) 278-0400

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:

Title of Each Class	Name of Each Exchange on Which Registered
Ordinary Shares, par value $1.00 per share	New York Stock Exchange
Preferred Shares, Series C, par value $1.00 per share	New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Securities Exchange Act of 1934: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act of 1933.    Yes  ý    No  ¨

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934.    Yes  ¨    No  ý

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter periods that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ý    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  ý    No  ¨

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§ 229.405 of this chapter) is not contained herein, and will not be contained, to the best of the registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.    ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definition of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Securities Exchange Act of 1934. (Check one):

Large accelerated filer ý Accelerated filer ¨ Non-accelerated filer ¨ Smaller reporting company ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Securities Exchange Act of 1934).    Yes  ¨    No  ý

The aggregate market value of the ordinary shares held by non-affiliates of the registrant, as of June 30, 2016, was $3,747,152,576.

As of February 27, 2017, 67,616,222 ordinary shares were outstanding.

Certain portions of the registrant’s definitive proxy statement relating to its 2017 Annual General Meeting of Shareholders are incorporated by reference into Part III of this report.

TABLE OF CONTENTS

		Page
PART I
Item 1.	Business	4
Item 1A.	Risk Factors	36
Item 1B.	Unresolved Staff Comments	59
Item 2.	Properties	59
Item 3.	Legal Proceedings	59
Item 4.	Mine Safety Disclosures	59
PART II
Item 5.	Market for Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities	60
Item 6.	Selected Financial Data	62
Item 7.	Management's Discussion and Analysis of Financial Condition and Results of Operations	64
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	107
Item 8.	Financial Statements and Supplementary Data	112
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	185
Item 9A.	Controls and Procedures	185
Item 9B.	Other Information	185
PART III
Item 10.	Directors, Executive Officers and Corporate Governance	185
Item 11.	Executive Compensation	187
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters	187
Item 13.	Certain Relationships and Related Transactions, and Director Independence	187
Item 14.	Principal Accountant Fees and Services	187
PART IV
Item 15.	Exhibits and Financial Statement Schedules	188
Item 16.	Form 10-K Summary	188

1

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

Some of the statements under "Item 1. Business", "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" and elsewhere in this Annual Report on Form 10-K for the year ended December 31, 2016 (the "Form 10-K") may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 ("PSLRA"). The PSLRA provides a "safe harbor" for forward-looking statements. These forward-looking statements reflect our current views with respect to future events and financial performance. Such statements include forward-looking statements with respect to us specifically and the insurance and reinsurance business generally, investments, capital markets and the general economic environments in which we operate. 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 for purposes of the PSLRA or otherwise.

All forward-looking statements address matters that involve risks and uncertainties. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements. We believe that these factors include, but are not limited to, the following:

• the effects of competitors' pricing policies, and of changes in laws and regulations on competition, industry consolidation and development of competing financial products;

• greater frequency or severity of claims and loss activity, including as a result of natural or man-made catastrophic events or as a result of changing climate conditions, than our underwriting, reserving or investment practices have anticipated;

• changes in market conditions in the agriculture industry, which may vary depending upon demand for agricultural products, weather, commodity prices, natural disasters, technological advances in agricultural practices, changes in U.S. and foreign legislation and policies related to agricultural products and producers;

• termination of or changes in the terms of the U.S. multiple peril crop insurance program and termination or changes to the U.S. Farm Bill, including modifications to the Standard Reinsurance Agreement put in place by the Risk Management Agency of the U.S. Department of Agriculture;

• decreased demand for property and casualty insurance or reinsurance or increased competition due to an increase in capacity of property and casualty insurers and reinsurers;

• changes in the availability, cost or quality of reinsurance or retrocessional coverage;

• the inability to renew business previously underwritten or acquired;

• the inability to obtain or maintain financial strength or claims-paying ratings by one or more of our subsidiaries;

• our ability to effectively integrate acquired operations and to continue to expand our business;

• uncertainties in our reserving process, including the potential for adverse development of our loss reserves or failure of our loss limitation methods;

• the ability of the counterparty institutions with which we conduct business to continue to meet their obligations to us;

• the failure or delay of the Florida Hurricane Catastrophe Fund or private market participants in Florida to promptly pay claims, particularly following a large windstorm or of multiple smaller storms;

• our continued ability to comply with applicable financial standards and restrictive covenants, the breach of which could trigger significant collateral or prepayment obligations;

• Endurance Specialty Holdings Ltd. or Endurance Specialty Insurance Ltd. becomes subject to income taxes in jurisdictions outside of Bermuda;

• changes in tax regulations or laws applicable to us, our subsidiaries, brokers or customers;

• state, federal and foreign regulations that impede our ability to charge adequate rates and efficiently allocate capital;

• changes in insurance regulations in the U.S. or other jurisdictions in which we operate, including the implementation of Solvency II by the European Commission;

• the impact of the United Kingdom's June 2016 referendum on European Union membership and the potential withdrawal of the United Kingdom from the European Union;

• reduced acceptance of our existing or new products and services;

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• loss of business provided by any one of a few brokers on whom we depend for a large portion of our revenue, and our exposure to the credit risk of our brokers;

• actions by our competitors, many of which are larger or have greater financial resources than we do;

• assessments by states for high risk or otherwise uninsured individuals;

• the impact of acts of terrorism and acts of war;

• the effects of terrorist related insurance legislation and laws;

• the inability to retain key personnel;

• political stability of Bermuda or other countries in which we operate;

• changes in the political environment of certain countries in which we operate or underwrite business;

• changes in accounting regulation, policies or practices;

• our investment performance;

• the valuation of our invested assets and the determination of impairments of those assets, if any;

• the breach of our investment guidelines or the inability of those guidelines to mitigate investment risk;

• the need for additional capital in the future, which may not be available or only available on unfavorable terms;

• the ability to maintain the availability of our systems and safeguard the security of our data in the event of a security breach, disaster or other unanticipated event;

• changes in general economic and/or industry specific conditions, including inflation or deflation, foreign currency exchange rates, interest rates, and other factors; and

• the failure of Sompo Holdings, Inc. ("Sompo") to complete the acquisition of the Company.

The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this Form 10-K, including the risk factors set forth in Item 1A, "Risk Factors". We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.

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PART I

References in the Form 10-K to the terms "we," "us," "our," "the Company" or other similar terms mean the consolidated operations of Endurance Specialty Holdings Ltd. and its subsidiaries, unless the context requires otherwise. References in the Form 10-K to the term "Endurance Holdings" means only Endurance Specialty Holdings Ltd. References to our "insurance subsidiaries" may include our reinsurance subsidiaries. References in this Form 10-K to $ are to the lawful currency of the United States.

Item 1. Business

OVERVIEW

Endurance Specialty Holdings Ltd. ("Endurance Holdings") is a holding company headquartered in Bermuda. Through our operating subsidiaries based in Bermuda, the United States and the United Kingdom, we underwrite property and casualty insurance and reinsurance on a global basis. We focus on the underwriting of specialty lines of insurance and reinsurance, which require dedicated, specialized underwriting skills and resources in order to be profitably underwritten. Our operations are organized into two business segments – Insurance and Reinsurance.

We began operations in December 2001 after Endurance Specialty Insurance Ltd. completed a private placement of $1.2 billion of its equity securities. Endurance Holdings was incorporated in Bermuda in June 2002. On March 5, 2003, Endurance Holdings completed the initial public offering of its ordinary shares on the New York Stock Exchange under the symbol "ENH". On July 31, 2015, we acquired all of the outstanding common shares of Montpelier Re Holdings Ltd. ("Montpelier"), a Bermuda based provider of global property and casualty reinsurance and insurance products. As part of the acquisition, we acquired Montpelier's Lloyd's of London operations, including Syndicate 5151 ("Syndicate 5151") and its managing agent, Endurance at Lloyd's Limited ("Endurance at Lloyd's"). Also as part of the acquisition, we acquired Montpelier's collateralized reinsurance and third party asset management operations, operating under the name "Blue Capital", which includes Blue Capital Management Ltd. ("BCML"), a wholly-owned subsidiary that provides investment and insurance management services to the Blue Capital vehicles through business written in Blue Water Re Ltd. ("Blue Water Re") and Blue Water Re II Ltd. ("Blue Water Re II"), wholly-owned special purpose insurers.

On October 5, 2016, the Company entered into an agreement and plan of merger (the "Merger Agreement") for the acquisition of 100% of the outstanding ordinary shares of the Company by Sompo for $93.00 per share in cash (the "Merger"). The Merger has been approved by each company's Board of Directors and the Company's ordinary and preferred shareholders at a special general meeting. The Merger is expected to close as soon as practicable following the satisfaction of customary closing conditions including, but not limited to, regulatory approvals. There can be no assurance that the Merger will occur.

Under the terms of the Merger Agreement, the aggregate consideration for the Merger will be approximately $6,304.0 million in cash. The purchase will be financed by Sompo from existing sources of liquidity and supplementary facilities. If the Merger is terminated under certain circumstances, the Company is obligated to pay Sompo a cash termination fee of $204.9 million together with Sompo's expenses related to the Merger up to $15.8 million. The Company is contractually obligated to pay investment banking fees upon the closing of the Merger.

Endurance Holdings' nine wholly-owned operating subsidiaries as of December 31, 2016 are as follows:

• Endurance Specialty Insurance Ltd. ("Endurance Bermuda"), domiciled in Bermuda with branch offices in Switzerland and Singapore;

• Blue Capital Management Ltd. ("BCML"), domiciled in Bermuda, and manager of Blue Water Re and Blue Water Re II, also domiciled in Bermuda;

• Endurance Assurance Corp. ("Endurance Assurance" formerly Endurance Reinsurance Corporation of America), domiciled in Delaware;

• Endurance Worldwide Insurance Limited ("Endurance U.K."), domiciled in England with a branch office in Switzerland;

• Endurance at Lloyd's, managing agent for Lloyd's Syndicate 5151, domiciled in England;

• Endurance American Insurance Company ("Endurance American"), domiciled in Delaware;

• Endurance American Specialty Insurance Company ("Endurance American Specialty"), domiciled in Delaware;

• Endurance Risk Solutions Assurance Co. ("Endurance Risk Solutions"), domiciled in Delaware; and

• American Agri-Business Insurance Company ("American Agri-Business"), domiciled in Texas and managed by ARMtech Insurance Services, Inc. (together with American Agri-Business, "ARMtech").

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In addition, as part of the Blue Capital operations, Endurance Holdings and Endurance Bermuda together own 33.3% of Blue Capital Reinsurance Holdings Ltd. ("BCRH") and Endurance Bermuda owns 25.2% of Blue Capital Global Reinsurance Fund Limited ("BCGR").

BCRH is a Bermuda-based exempted limited liability holding company managed by BCML that provides fully-collateralized property catastrophe reinsurance and invests in various insurance-linked securities through its wholly-owned Bermuda-based subsidiaries, Blue Capital Re. Ltd. ("Blue Capital Re") and Blue Capital Re ILS Ltd. ("Blue Capital Re ILS"). BCRH's shares are listed on the New York Stock Exchange and the Bermuda Stock Exchange.

BCGR is a closed-ended mutual fund incorporated in Bermuda and managed by BCML that serves as the feeder fund for the Blue Capital Global Reinsurance SA-I cell (the "BCGR Cell"). BCGR's shares are listed on the Specialist Fund Market of the London Stock Exchange and on the Bermuda Stock Exchange.

BUSINESS STRATEGY

Our goal is to generate superior value and long-term return on capital for our shareholders as a leading globally diversified specialty insurance and reinsurance company. We believe the substantial investments we have made to increase the scale of the Company, expand our global underwriting talent and product capabilities, improve our risk management, coupled with our ongoing expense discipline and risk management focus, uniquely positions us to achieve this goal.

The key strategies we employ are:

• Create and continually refine a portfolio of specialty lines of business focused on profitability. We participate in specific specialty lines of insurance and reinsurance that we believe have the potential to offer the highest risk-adjusted return on capital and in which we can establish a competitive advantage through our specialized teams of expert underwriters. We underwrite our business with a focus on its underlying profitability and are committed to expanding or contracting our businesses based upon the opportunities presented in the markets in which we participate.

• Develop and maintain deep relationships with clients and distribution partners, while utilizing specialized levels of expertise and analysis in our underwriting. Our management team and underwriters have extensive industry experience, long standing market relationships, and are specialists in the business lines in which they operate. We supplement our underwriters' knowledge and experience through the utilization of catastrophe modeling and dynamic financial analysis techniques that provide a quantitative basis for the management of our risk aggregation and correlation.

• Employ strong risk management practices, including the purchase of reinsurance and retrocessional protection. Our enterprise risk management framework includes sophisticated modeling technology and a detailed internal control structure that we use to manage the underwriting, investment and operational risks across the Company in order to maximize risk adjusted returns on capital. We also purchase reinsurance and retrocessional protection in order to manage our exposure to large individual risk losses and portfolio loss accumulations, to ensure our businesses are of sufficient size to be considered a lead market for their products and to reduce the overall potential for volatility.

• Enhance shareholder value by managing a portfolio of investments designed to generate net investment income and book value growth. We manage our investment portfolio within a risk adjusted, total return framework. We focus on implementing a portfolio management strategy designed to generate investment income and increase book value by outperforming the financial markets on a risk adjusted basis while ensuring that we have adequate liquidity to satisfy the needs of our clients, regulators, rating agencies and shareholders.

• Proactively manage our capital base. We proactively manage our capital by allocating resources to underwriting and investment opportunities that we believe will offer the highest risk-adjusted return. We will return capital to our shareholders when the demand for our products declines and when we believe a return of capital would be beneficial to our shareholders. The primary focus of our capital management activities is to optimize our risk adjusted return on equity while ensuring we maintain sufficient levels of risk based capital and financial flexibility as required by our clients, regulators and rating agencies.

BUSINESS SEGMENTS

The Company has two business segments – Insurance and Reinsurance. Financial data relating to our two segments is included in Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations" and in our Audited Consolidated Financial Statements and related notes presented under Item 8, "Financial Statements and Supplementary Data".

5

Our two business segments and the related gross and net premiums written for the years ended December 31, 2016, 2015 and 2014 are as follows:

	2016				2015				2014
Business Segments	Gross Premiums Written		Net Premiums Written		Gross Premiums Written		Net Premiums Written		Gross Premiums Written		Net Premiums Written
	(U.S. dollars in thousands)
Insurance	$	2,570,494	$	1,056,254	$	2,085,901	$	880,373	$	1,716,128	$	860,406
Reinsurance	1,631,676		1,313,681		1,234,960		1,070,097		1,177,948		1,073,800
Total	$	4,202,170	$	2,369,935	$	3,320,861	$	1,950,470	$	2,894,076	$	1,934,206

Insurance

Our Insurance segment is comprised of four lines of business: agriculture, casualty and other specialty, professional lines, and property, marine/energy and aviation. Gross and net premiums written for the lines of business in the Insurance segment for the years ended December 31, 2016, 2015 and 2014 are as follows:

	2016				2015				2014
Lines of Business	Gross Premiums Written		Net Premiums Written		Gross Premiums Written		Net Premiums Written		Gross Premiums Written		Net Premiums Written
	(U.S. dollars in thousands)
Agriculture	$	760,877	$	274,952	$	840,445	$	267,890	$	866,025	$	459,149
Casualty and other specialty	657,558		281,256		514,203		248,554		396,113		195,927
Professional lines	461,552		191,596		344,482		156,918		263,538		93,640
Property, marine/energy and aviation	690,507		308,450		386,771		207,011		190,452		111,690
Total	$	2,570,494	$	1,056,254	$	2,085,901	$	880,373	$	1,716,128	$	860,406

A description of each of these lines of business follows:

Agriculture. Our agriculture insurance line of business focuses on traditional multi-peril crop insurance, crop hail, livestock risk protection and other agriculture risk management products, all offered through independent agents in the United States.

Casualty and other specialty. Our casualty and other specialty insurance line of business includes casualty insurance, healthcare liability insurance, and contract and commercial surety insurance. Our casualty insurance business provides third party excess and primary liability insurance for a wide range of industry groups. Our healthcare liability insurance business is focused on excess hospital medical professional liability insurance. Our surety insurance business provides contract and commercial surety insurance in the U.S.

Professional lines. Our professional lines insurance business includes directors' and officers' liability, errors and omissions, employment practices liability, fiduciary, environmental liability and pension trust liability insurance and includes both non-profit and for-profit entities representing a wide range of industry groups.

Property, marine/energy and aviation. Our property, marine/energy and aviation line of business includes property insurance, inland marine, ocean marine, marine war, energy and aviation insurance. Our property insurance business provides coverage against all risks of physical loss or damage of commercial properties, engineering and construction of properties and resultant loss of business income. Our inland marine insurance business provides indemnification of loss related to property in transit; movable or specialized types of property. Our ocean marine insurance business covers the loss or damage of ships, cargo, terminals, piers, wharfs and any transport or cargo, as well as general liability coverage for marine risks. Our energy business provides upstream, midstream, downstream, power and renewable energy coverage covering property and liability risk, control of well, transportation and storage, business interruption, cargo and equipment risks. Our aviation business provides general liability and property coverages for a wide range of aviation risks, including hull and liability coverage as well as general liability coverage for ground based risks such as fixed base operators, airport owners and aircraft manufacturers and distributors.

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Reinsurance

Our Reinsurance segment is comprised of five lines of business: catastrophe, property, casualty, professional lines, and specialty. Gross and net premiums written for the lines of business in the Reinsurance segment for the years ended December 31, 2016, 2015 and 2014 are as follows:

	2016				2015				2014
Lines of Business	Gross Premiums Written		Net Premiums Written		Gross Premiums Written		Net Premiums Written		Gross Premiums Written		Net Premiums Written
	(U.S. dollars in thousands)
Catastrophe	$	506,300	$	336,413	$	311,914	$	194,662	$	343,213	$	252,973
Property	250,447		243,697		209,392		205,999		287,326		287,235
Casualty	245,092		243,154		176,506		176,487		159,533		157,947
Professional lines	256,337		254,148		248,610		248,610		174,656		174,656
Specialty	373,500		236,269		288,538		244,339		213,220		200,989
Total	$	1,631,676	$	1,313,681	$	1,234,960	$	1,070,097	$	1,177,948	$	1,073,800

A description of these lines of business follows:

Catastrophe. Our catastrophe reinsurance line of business reinsures catastrophic perils for ceding companies on a treaty basis primarily for property and workers' compensation business. The principal perils reinsured include natural perils such as hurricanes, typhoons, earthquakes, floods, tornados, hail and fire and certain man-made perils such as industrial events and terrorism.

Property. Our property reinsurance line of business reinsures property insurance policies issued by our ceding company clients for personal, commercial and industrial exposures (including engineering risks). These policies principally cover buildings, structures, automobiles, equipment, contents and time element coverages. We provided treaty coverage for these policies which have exposure to losses from perils including fire, explosion, collapse, riot, vandalism, wind, tornado, flood and earthquake.

Casualty. Our casualty reinsurance line of business reinsures third party liability exposures from ceding companies such as automobile liability, general liability, umbrella liability and workers’ compensation.

Professional lines. Our professional lines reinsurance line of business reinsures third party professional liability policies issued by our ceding company clients for exposures such as directors' and officers' liability, directors' and officers' and management liability, errors and omissions, employment practices liability, cyber liability, fiduciary, and pension trust liability insurance and includes both non-profit and for-profit entities representing a wide range of industry groups.

Specialty. Our specialty line of business includes primarily aerospace, international agriculture, marine and energy, and trade credit and surety, all of which are underwritten on either a proportional or non-proportional basis. This business line also includes our weather risk management products. Our aerospace business is comprised of the reinsurance of aviation and space risks. Our agriculture business includes reinsurance of international multi-peril crop insurance policies, crop hail policies and other types of crop insurance. Our marine business consists of the reinsurance of river and ocean vessels, cargo risks and marine liabilities such as protection and indemnity, terminal operators and other forms of marine liability. Our energy business covers risks of downstream, midstream and upstream type exposures through our support of mainstream energy underwriters around the world. Our trade credit and surety business includes the reinsurance of trade credit and political risk, contract surety and commercial surety on a worldwide basis. We also provide reinsurance for mortgage insurers and for fidelity insurers. Our weather risk management business sells weather protection in the form of both derivatives and insurance to corporations and government entities seeking to mitigate the impact of variable weather and correlated commodity prices. Our remaining business in this line represents a variety of contracts that are underwritten utilizing the expertise of our senior underwriting staff.

Please see Item 8, "Financial Statements and Supplementary Data" and in our Audited Consolidated Financial Statements and related notes presented under Note 10, "Segment Reporting" for additional information about our business segments and the geographic distribution of our gross premiums written for the last three fiscal years.

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DISTRIBUTION

Our business is obtained either directly by the Company or through the use of intermediaries, including independent agents and insurance and reinsurance brokers around the world. The brokerage distribution channel provides us with access to an efficient, variable cost, and global distribution system without the significant time and expense that would be incurred in creating wholly-owned distribution networks.

For the year ended December 31, 2016, Marsh & McLennan Companies, Inc. was the largest single broker in both our Insurance and Reinsurance segments. A breakdown of our distribution by broker and by business segment for the years ended December 31, 2016, 2015 and 2014 is provided in the tables below:

Insurance
	Percentage of Gross Premiums Written
Broker/Agent	2016		2015		2014
Marsh & McLennan Companies, Inc.	11.8	%	10.8	%	10.8	%
Aon Benfield	7.1	%	6.7	%	5.9	%
Willis Companies	4.1	%	4.4	%	3.5	%
Independent agents	29.6	%	40.3	%	50.5	%
All others	47.4	%	37.8	%	29.3	%
Total	100.0	%	100.0	%	100.0	%
Reinsurance
	Percentage of Gross Premiums Written
Broker	2016		2015		2014
Marsh & McLennan Companies, Inc.	35.1	%	35.1	%	31.3	%
Aon Benfield	25.6	%	22.9	%	23.7	%
Willis Companies	16.5	%	17.4	%	20.9	%
All others	22.8	%	24.6	%	24.1	%
Total	100.0	%	100.0	%	100.0	%

CLAIMS MANAGEMENT

Claims are managed by our experienced, technical claims teams working closely with each of our operating subsidiaries. Our claims staff reviews and responds to initial loss reports, administers claims databases, identifies and handles coverage issues, determines whether further investigation is required and where appropriate, retains outside claims counsel, establishes case reserves, approves claims for payment, manages salvage and subrogation and notifies reinsurers. In addition, our claims staff conducts audits of our significant clients throughout the year, evaluating claims handling abilities, reserve philosophies, loss notification processes and the overall quality of our clients' performance.

Upon receipt, claims notices are recorded by the claims staff within our underwriting, financial and claims systems. When we are notified of insured losses or discover potential losses as part of our claims audits, claims personnel record a case reserve as appropriate for the estimated amount of the exposure at that time. The estimate reflects the judgment of our claims personnel based on general reserving practices, the experience and knowledge of such personnel regarding the nature of the specific claim and, where appropriate, advice of outside counsel. Reserves are also established to provide for the estimated expense of settling claims, including legal and other fees and the general expenses of administering the claims adjustment process.

RESERVE FOR LOSSES AND LOSS EXPENSES

We are required by applicable laws and regulations and accounting principles generally accepted in the United States ("U.S. GAAP") to establish reserves for losses and loss expenses that arise from our business. These reserves are balance sheet liabilities representing estimates of future amounts required to pay losses and loss expenses for insured or reinsured claims that have been incurred at or before the balance sheet date, whether already known to us or not yet reported. It is our policy to establish these losses and loss expense reserves after evaluating all information known to us as of the valuation date.

We use statistical and actuarial methods to make a reasonable estimate of ultimate expected losses and loss expenses. The period of time from the reporting of a loss to us and the settlement of our liability may be many years. During this period, additional facts and trends may be revealed. As these factors become apparent, estimated reserves will be adjusted, sometimes

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requiring an increase or decrease in our overall reserves, and at other times requiring a reallocation of incurred but not reported reserves to specific case reserves.

Reserves for losses and loss expenses are based in part upon the estimation of losses resulting from catastrophic events. Estimation of losses from catastrophic events is inherently difficult because of the infrequency and severity of large catastrophes. Therefore, we utilize commercially available models, historical reinsurance industry property catastrophe claims experience and other data and estimates provided by our clients to supplement our own historical claims experience for purposes of evaluating future trends and providing an estimate of ultimate claims costs on large catastrophes.

To assist us in establishing appropriate reserves for losses and loss expenses, we analyze a significant amount of insurance industry information with respect to the pricing environment, loss trends, and loss settlement patterns. In combination with our individual pricing analyses, this industry information is used to guide our loss and loss expense estimates. These estimates are reviewed regularly, and adjustments, if any, are recorded in earnings in the periods in which they are determined.

While management believes it has made a reasonable estimate of ultimate losses, there can be no assurance that our future losses and loss expenses will not exceed our current total reserves. For a description of the Company's current reserves, please refer to Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations – Reserve for Losses and Loss Expenses" and Note 6, "Reserve for losses and loss expenses" in the Notes to the Consolidated Financial Statements of the Company.

ENTERPRISE RISK MANAGEMENT

We have established processes and controls to monitor and manage our risk exposures. Our enterprise risk management ("ERM") activities are led by our Chief Risk Officer and Group Actuary and are critical to the organization's sustained profitability and financial integrity. The goals of our ERM framework that drive our corporate risk management strategy are as follows:

• identify, assess, measure, monitor and manage the risks that threaten us and our solvency;

• optimize our risk based capital position;

• maximize our risk adjusted returns on capital;

• manage underwriting, investment and operational volatility; and

• clearly communicate our approach to our employees and external constituencies.

Our ERM framework is rooted in our risk appetite and a system of governance with responsibilities for identifying, managing, monitoring and taking risk. Our risk appetite, as authorized by our Board of Directors, represents the risk that we are willing to accept. We employ a system of quantitative risk limits of our key risks both on an aggregate and stand-alone basis to provide transparency and understanding of our risk profile. To support our governance we use documented risk policies which articulate roles and responsibilities for risk management throughout the organization, including assigning key risks from our risk register and associated controls to our various governance committees.

On a group basis, we monitor our:-

• Capital position relative to internal requirements, as measured by our economic capital model, and the requirements of our regulators and rating agencies;

• Underwriting risk exposure relative to limits for loss arising from catastrophic natural peril and man made events;

• Reserve risk through our exposure to medium and long tailed lines of business;

• Investment risk, through a system of limits incorporating exposure to asset class, credit rating, duration and currency;

• Liquidity, by stressing cash outflow scenarios relative to available cash and cash equivalents and other forms of liquidity; and

• Counterparty exposure nominally and to loss scenarios for ceded reinsurance and for non-reinsurance counterparties.

The following sections more specifically address our method and procedures for addressing and managing our primary risk exposure areas of underwriting, catastrophe, loss reserving, investment, counterparty and operational risks.

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Underwriting Risk Management

Internal underwriting controls are established by our Chief Risk Officer and Group Actuary and the Management Risk Committee, which includes our Chief Executive Officer and the Chief Executive Officers of Global Insurance and Global Reinsurance. Underwriting authority is delegated to the managers of our lines of business in each business segment and to underwriters in accordance with corporate risk tolerances, prudent practice and underwriting capabilities. Detailed letters of authority are issued to each of our underwriters. These letters of authority reference our operating guidelines and a description of the analytic process to be followed. The letters of authority include, as appropriate, referral requirements specific to each line of business, terms, conditions, risk exposures, transactional situations, limits and premium capacity. Our pricing guidelines are communicated to all business units and each individual underwriter and are stated in terms of maximum combined ratio targets and minimum returns on risk based capital, by line of business, with exceptions permitted only upon approval of senior management as noted in the guidelines.

Our pricing guidelines are regularly reviewed by our Chief Executive Officer, Chief Executive Officers of Global Insurance and Global Reinsurance, and Chief Risk Officer and Group Actuary in order to ensure the guidelines reflect changes in market conditions, interest rates, capital requirements and market-expected returns. In addition, oversight of underwriting risk management is provided by our Board of Directors and its Risk Committee. For a further discussion on the role of our Board of Directors in the Company's risk management, see "Role of the Board of Directors in Risk Management" below.

We have a disciplined approach to underwriting and risk management that relies heavily upon the collective underwriting expertise of our management and staff. This expertise is in turn guided by the following underwriting principles:

• we will underwrite and accept only those risks we know and understand;

• we establish pricing parameters, set our own independent pricing and conduct a risk review on risks we accept; and

• we generally accept those risks that are expected to earn a return on capital commensurate with the risk they present.

Before we review any natural catastrophe exposed insurance or reinsurance proposal, we consider the appropriateness of the client, including the quality of its management and its risk management strategy. In addition, we prefer those proposals that include significant information on the nature of the perils to be underwritten and detailed aggregate information as to the location or locations of the risks covered. We further request information on the client's loss history for the perils being insured or reinsured, together with relevant underwriting considerations. If a proposal meets the preceding underwriting criteria, we then evaluate the proposal in terms of its risk/reward profile to assess the adequacy of the proposed pricing and its potential impact on our overall return on capital as well as our corporate risk objectives and tolerances.

We have fully integrated our internal pricing actuarial staff into the underwriting and decision making process. We use in-depth actuarial and risk analyses to evaluate contracts prior to authorization. In addition to internal actuaries and risk professionals, we make use of outside consultants as necessary to develop appropriate analyses for pricing.

Separate from our natural catastrophe exposed businesses, we underwrite and accept property, casualty and specialty insurance and reinsurance business. We perform actuarial and risk analysis on these businesses using commercial data and models. As with our natural catastrophe exposed businesses, we seek to identify those casualty and specialty exposures that are most likely to be simultaneously influenced by significant events. These exposures are then jointly tracked to ensure that we do not develop an excessive accumulation of exposure to that particular type of event.

In addition to the above technical and analytical practices, our underwriters use a variety of tools, including specific contract terms, to manage our exposure to loss. These include occurrence limits, aggregate limits, reinstatement provisions and loss ratio caps. Additionally, our underwriters use appropriate exclusions and terms and conditions to further eliminate particular risks or exposures that our underwriting team deems to be outside of the intent of the coverage we are willing to offer. Our Bermuda underwriting location provides us with a particular advantage for certain lines of business because there are no regulatory limitations upon our use of coverage restrictions in insurance policies.

In our crop insurance business, we have invested in an experienced team of professionals who have developed proprietary tools to manage risk, pricing and exposure in this business. These proprietary tools are constructed from databases that involve a comprehensive set of historical profit and loss experience data developed at a crop, farm, county and state level of detail. We further analyze this data based on current and forecasted crop growing conditions, agriculture commodity prices and market conditions in an effort to produce attractive returns.

In certain cases, the insurance and reinsurance risks written and assumed by the Company are partially reinsured with third party reinsurers. The amount of reinsurance protection varies by segment and line of business based on a number of factors, including market conditions. The benefits of reinsuring our risks include reducing exposure on individual risks, improving the balance of the Company's portfolio, protecting against catastrophic risks, maintaining acceptable capital ratios

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and enabling the writing of additional business. Reinsurance ceded does not legally discharge the Company from its liabilities to the original policyholder in respect of the risk being reinsured. For more information on the Company's reinsurance ceded, please see Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations – Ceded Reinsurance" and Note 7, "Reinsurance" in the Notes to the Consolidated Financial Statements of the Company.

Catastrophe Risk Management

To achieve our catastrophe risk management objectives, we utilize a variety of proprietary and commercially available tools to quantify and monitor the various risks we accept.

Our catastrophe modeling tools, which include both proprietary and licensed software, use exposure data provided by our insureds and ceding company clients to simulate catastrophic losses. We take an active role in the evaluation of a commercial catastrophe model, providing feedback to the modeling company to improve the effectiveness of their model. We use modeling not just for the underwriting of individual transactions but also to optimize the total return and manage the aggregate risk of our underwriting portfolio. We have specific requirements as to the quality and levels of detailed exposure data to be provided by our clients and have an expressed preference for data at the zip code or postal code level or finer. Data provided at more summary levels, such as counties or Catastrophe Risk Evaluation and Standardizing Target Accumulations (CRESTA) zones, is surcharged for increased uncertainty, where appropriate. We decline business in which we believe the data provided is insufficient to make an appropriate analysis.

Data output from the software described above is incorporated in our proprietary models. Our proprietary systems include those for modeling a variety of insurance and reinsurance risks including those associated with property, catastrophe, agriculture, and other specialty risks, various casualty and specialty pricing models, as well as our proprietary portfolio risk management and capital allocation models. These systems allow us to monitor our pricing and risks on a contract by contract basis in our segments and business lines.

Data output from both our licensed and proprietary software models is used to estimate the amount of premium that is required to pay the long-term expected losses under the proposed contracts. The data output is also used to estimate correlation between both new business and our existing portfolio. The degree of correlation is used to estimate the incremental capital required to support our participation on each proposed risk, allowing us to calculate a return on consumed capital. Finally, the data output is used to monitor and control our cumulative exposure to individual perils across all of our businesses.

Our pricing of catastrophe reinsurance contracts is based on a combination of modeled loss estimates, actual ceding company loss history, charges for potential unmodeled exposures, fixed and variable expense estimates and profit requirements. The profit requirements are based on incremental capital usage estimates described above and on our required return on consumed capital.

Loss Reserving Risk Management

Establishing reserves for losses and loss expenses, in particular reserves for the Company's long-tail lines of business, constitutes a significant risk for the Company. Loss reserves do not represent an exact calculation of liability, but instead are estimates of what the Company expects the ultimate settlement and administration of claims will cost. To the extent the Company determines that losses and loss expenses are estimated to exceed the loss reserves recorded in our financial statements, the Company will be required to increase its reserve for losses and loss expenses, which in turn could cause a material reduction in the Company's profitability and capital.

The Company manages the risk inherent in estimating the Company's reserves for losses and loss expenses in a variety of ways. First, the Company underwrites a balanced and diversified portfolio of business, which reduces the Company's susceptibility to reserving errors that may be associated with any one line or type of business. Second, where loss development uncertainty exists, the Company may use purchased reinsurance to reduce the Company's exposure to such loss development uncertainty. Finally, in the Reinsurance segment, the Company conducts active, regular audits of its ceding company clients with the intent of quickly and thoroughly identifying losses assumed by the Company.

The Company’s reserving process also serves to mitigate the risk associated with the Company's loss and loss expense reserve estimates. The Company seeks to base its loss reserve estimates upon actuarial and statistical projections derived from the most recently available data, as well as current information on future trends in claims severity and frequency, judicial theories of liability and other factors. The Company continually refines both its loss reserve estimates and the means by which its loss reserve estimates are derived, continually integrating developing loss experience, reported claims and claims settlements.

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Investment Risk Management

Investment risk encompasses the risk of loss in the Company's investment portfolio potentially caused by the adverse impact on its invested assets from fluctuations in interest rates, equity prices, credit spreads, foreign currency rates, inflation and other market changes.

The Company manages its investment risks through both a system of limits and a strategy to optimize expected risk and reward. To ensure diversification of the Company's investment portfolio and to avoid excessive aggregation of risks, limits on asset types, economic sector exposure, industry exposure and individual security exposure are placed on the Company's investment portfolio and monitored on an ongoing basis. The Company manages its interest rate risk through an asset liability management strategy that involves the selection of investments with appropriate characteristics, such as duration, yield, currency and liquidity that are tailored to the anticipated cash outflow characteristics of our liabilities and the anticipated interest rate environment. The Company manages foreign currency risk by seeking to match the Company's liabilities under insurance and reinsurance policies that are payable in foreign currencies with assets, such as cash and investments or currency options and forwards, that are denominated in such currencies. In order to limit the Company's exposure to credit risk, the Company's Investment Policy is to invest primarily in debt instruments of high credit quality issuers and to limit exposure to any one issuer. The Company's Investment Policy sets limits for individual credit exposures based on credit rating. The Company manages equity risk by maintaining a diversified portfolio and limiting the overall size of its investment in equities.

The Company uses a number of capital-at-risk models, which include scenario based analysis, value-at-risk ("VaR") and credit impairment calculations to evaluate its investment portfolio risk. Additionally, the Company's capital-at-risk models also include the measures of risk capital applied by Standard & Poor's ("S&P") and A.M. Best Company ("A.M. Best") in their risk based capital assessments of the Company. Scenario-based analytics are used in order to stress test the portfolio for expected changes in specific market scenarios. VaR is a probabilistic method of measuring the potential loss in portfolio value over a given time period and for a given distribution of historical returns. Portfolio risk, as measured by VaR, is affected by four primary risk factors: asset concentration, asset volatility, asset correlation and systematic risk. The Company adjusts its investment risk scenarios for a variety of extremes as well as expected outcomes. Management continuously evaluates the applicability and relevance of the models used and makes adjustments as necessary to reflect actual market conditions and performance over time.

Counterparty Risk Management

Counterparty risk encompasses risk that a counterparty will not uphold its contractual obligations. The Company’s counterparty risk arises mainly from external ceded reinsurance, and the reinsurer’s ability to pay liabilities due.

The Company mitigates this risk through the management’s Ceded Reinsurance Committee, which is responsible for ensuring that the Company’s underwriting strategy is properly balanced with the Company’s risk tolerance strategy. This is achieved through the determination, at a group level and in conjunction with group risk management, of all underwriting limits and tolerances, which are then promulgated down to the individual entities.

The purchase of ceded reinsurance is coordinated by the Ceded Reinsurance Officer who works with the business and various functional areas to determine coverage needs, develop an appropriate reinsurance structure and build the submission to present to market. All draft contracts undergo a legal review. The reinsurance also undergoes a risk transfer analysis based on final terms and conditions. All purchases are made through a pre-approved counterparty panel with the constituents selected on the basis of their financial strength rating and other background criteria. In the event of credit downgrades, approved counterparties are removed from the panel. The ceded reinsurance function formally advises the claims and finance functions of all in-force ceded reinsurance treaties to ensure that appropriate recoveries are obtained and reinsurance cessions are properly recorded.

Operational Risk Management

Operational risk represents the risk of loss as a result of inadequate or failed internal processes, system failures, human error or external events. Operational risks include, for example, employee or third party fraud, business interruptions, inaccurate processing of transactions, information technology failures, the loss of key employees without appropriate successors, and non-compliance with reporting obligations.

The Company seeks to mitigate operational risks through ongoing training and the application of strong process controls throughout its business. Key process controls include underwriting letters of authority, underwriting referral protocols, claims procedures guidelines, financial reporting controls and procedures, information technology procedures, succession planning, disaster recovery planning and business continuity planning. The Company's internal audit department tests the Company's policies and various process controls on a regular basis.

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The use by the Company of the services of unaffiliated third parties exposes the Company to heightened operational risks, including the risk of information technology and physical security breaches, fraud, non-compliance with laws, regulations or internal guidelines and inadequate service to its clients. The Company mitigates the operational risk posed by the use of third party vendors by verifying, among other items, a potential third party vendor’s financial stability, ability to provide ongoing service, business continuity planning and its business reputation as well as monitoring any significant third party relationships.

Role of the Board of Directors in Risk Management

The Company's Board of Directors administers its risk oversight of the Company through quarterly meetings of its Risk Committee with members of senior management, including representatives from the risk management, actuarial, claims, finance, internal audit, investment, legal and underwriting functions within the organization. The Risk Committee's members review with senior management the Company's enterprise risk management framework and risk register as well as related policies, processes and procedures and reports regularly to the Board of Directors on its activities.

The Risk Committee reviews with management and monitors the Company's risk tolerances as well as the methods utilized by the Company to assess, quantify, monitor and manage these risks. The Risk Committee also evaluates the Company's business plans, projections and performance relative to the level of risk associated with such plans, projections and performance. The Risk Committee reviews and approves on a periodic basis:

• the Company’s framework for the assessment and management of risk, including the definition of applicable categories of risk, standards in relation to each category of risk and the appropriate risk tolerances;

• the policies and guidelines governing the Company's framework for the assessment and management of risk; and

• the level of risk assumed by the Company in its underwriting, investment and operational activities, including the methods by which such risk is measured.

INVESTMENTS

We follow an investment strategy designed to protect book value and generate appropriate risk adjusted returns to grow book value, while providing sufficient liquidity to meet our operating cash needs. The investment portfolio is designed to diversify risks, including interest rate, credit, structure and equity risks. Our investment portfolio is managed by our Chief Investment Officer and a team of investment professionals. Our investment team is experienced in direct portfolio management, asset allocation, managing external investment manager relationships and risk management. Our investment team uses specialized analytical tools to evaluate risk and opportunity in investments to facilitate a risk managed, opportunity oriented approach to investing consistent with the requirements of our Investment Policy. We utilize external portfolio managers to oversee most of the day-to-day activities of our investment portfolio, and our investment professionals actively monitor our investment managers' performance and compliance with our Investment Policy and with the specific investment guidelines applicable to each investment manager. We use quoted values and other data provided by nationally recognized third-party pricing sources as inputs to our process for determining the value of our investment portfolio that is carried at fair value in our financial statements.

Our Investment Policy establishes authority for our investment activities and specifies risk tolerances and minimum criteria on the overall credit quality and liquidity characteristics of the portfolio. This includes limitations on the size of certain holdings as well as restrictions on purchasing certain types of securities or investing in certain industries. Our investment managers may be instructed to invest some of the investment portfolio in currencies other than U.S. dollars based upon the business we have written, the currency in which our loss reserves are denominated or regulatory requirements.

Our Investment Policy incorporates a traditional policy limit approach to each type of risk, thus setting a maximum amount of capital that may be exposed at any one time to particular types of securities and investment vehicles. We develop and maintain an investment risk profile, including the establishment of risk limits, which is reviewed and revised by the Finance Committee of the Board of Directors based on market conditions and our developing needs and includes estimates of the maximum and expected levels of investment risk relative to shareholders' equity that will be taken over a 12 month period. In determining our investment decisions, we consider the impact of various catastrophic events on our invested assets, particularly those to which our insurance and reinsurance portfolio may also be exposed, in order to protect our financial position. In addition, as part of our risk management processes, we maintain a watch list of securities that management considers to be at risk due to industry and/or issuer specific issues or securities potentially subject to future impairments. These securities are subjected to further internal analysis to evaluate their underlying structures, credit characteristics and overall industry and security specific fundamentals until they are sold, mature or it is deemed that further review is no longer necessary.

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For additional information on the Company's investment portfolio, please see Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations – Investment Portfolio" and Note 4, "Investments" in the Notes to the Consolidated Financial Statements of the Company.

FINANCIAL STRENGTH RATINGS

Financial strength ratings have become an increasingly important factor in evaluating the competitive position of insurance and reinsurance companies. Endurance Holdings and certain of its operating subsidiaries maintain a financial strength rating at A.M. Best of "A" (Excellent), an S&P rating of "A" (Strong) and a Moody's Investors Service, Inc. ("Moody's") rating of "A2". All three ratings agencies conducted reviews of Endurance Holdings during 2016. Syndicate 5151 (which is managed by Endurance at Lloyd's), as is the case with all Lloyd's syndicates, benefits from the Lloyd's single market rating. Lloyd's currently maintains a financial strength rating at A.M. Best of "A" (Excellent), an S&P rating of "A+" (Strong) and a Fitch Ratings Ltd. ("Fitch") rating of "AA-" (Very Strong).

The objective of S&P's, A.M. Best's, Moody's and Fitch's rating systems is to provide an opinion of an insurer's or reinsurer's financial strength and ability to meet ongoing obligations to its policyholders and debt holders. These ratings reflect S&P's, A.M. Best's and Moody's opinions of our capitalization, performance and management, and are not a recommendation to buy, sell or hold the Company’s securities. These ratings may be changed, suspended, or withdrawn at the discretion of S&P, A.M. Best, Moody's and Fitch.

S&P maintains a letter rating system ranging from "AAA" (Extremely Strong) to "R" (Under Regulatory Supervision). The rating "A" (Strong) by S&P is the sixth highest of twenty-one rating levels. Publications of S&P indicate that the "A" rating is assigned to those companies that, in S&P's opinion, have demonstrated strong financial security characteristics, but are somewhat more likely to be affected by adverse business conditions than are insurers with higher ratings.

A.M. Best maintains a letter scale rating system ranging from "A++" (Superior) to "F" (In Liquidation). The rating "A" (Excellent) by A.M. Best is the third highest of 16 rating levels. Publications of A.M. Best indicate that the "A" rating is assigned to those companies that, in A.M. Best's opinion, have demonstrated an excellent ability to meet their obligations to policyholders.

Moody's maintains a letter rating system ranging from "Aaa" (highest quality, subject to the lowest level of credit risk) to "C" (lowest rated, typically in default, with little prospect for recovery of principal or interest). Moody's appends numerical modifiers 1, 2 and 3 to each generic rating classification from Aa through Caa. The modifier 1 indicates that the obligation ranks in the higher end of its generic rating category; the modifier 2 indicates a mid-range ranking; and the modifier 3 indicates a ranking in the lower end of that generic rating category. The rating "A2" by Moody's is the sixth highest of twenty-one rating levels. Publications of Moody's indicate that the "A" rating is assigned to those companies that, in Moody's opinion, are judged to be upper-medium grade and are subject to low credit risk.

Fitch maintains a letter rating system ranging from "AAA" (highest credit quality companies, reliable and stable) to "NR" (not publicly rated). The rating "AA-" (Very Strong) by Fitch is the fourth highest of the 24 rating levels. Publications of Fitch indicate that the "AA-" rating is assigned to those companies that, in Fitch's opinion, have very low default risk, strong capacity for payment of financial commitments and are not significantly vulnerable to foreseeable events.

COMPETITION

The insurance and reinsurance industries are mature and highly competitive. Insurance and reinsurance companies compete on the basis of many factors, including premium charges, general reputation and perceived financial strength, the terms and conditions of the products offered, ratings assigned by independent rating agencies, speed of claims payments, reputation and experience in the particular risk to be underwritten, the jurisdictions where the reinsurer or insurer is licensed or otherwise authorized, capacity and coverages offered and various other factors. These factors can effect transactions at the individual market participant level and in the aggregate across the insurance and reinsurance industry more generally. In addition, background economic conditions and variations in the insurance and reinsurance buying practices of insureds and ceding companies, by participant and in the aggregate, contribute to cyclical movements in rates, terms and conditions and may impact industry aggregate financial results.

We compete in the Bermuda, U.S., London and international insurance and reinsurance markets directly with numerous other parties, including established global insurance and reinsurance companies, start-up insurance and reinsurance entities, as well as potential capital markets and securitization structures aimed at managing catastrophe and other risks. Many of these entities have significantly larger amounts of capital and more employees than we maintain and have established long-term and continuing business relationships throughout the industry, which can be a significant competitive advantage.

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EMPLOYEES

As of December 31, 2016, we had 1,244 full-time employees. We believe that our employee relations are satisfactory. None of our employees are subject to collective bargaining agreements.

REGULATORY MATTERS

General

The business of insurance and reinsurance is regulated in most countries, although the degree and type of regulation varies significantly from one jurisdiction to another. Reinsurers are generally subject to less direct regulation than primary insurers. Endurance Bermuda, Blue Capital Re, Blue Water Re and Blue Water Re II are regulated by the Bermuda Monetary Authority ("BMA"). Endurance Assurance, Endurance American, Endurance American Specialty, Endurance Risk Solutions and ARMtech are regulated by either Delaware or Texas insurance departments based on their state of domicile. Endurance U.K. and Endurance at Lloyd's are regulated by the Prudential Regulation Authority ("PRA"), the Financial Conduct Authority ("FCA"), and in the case of Endurance at Lloyd's, by Lloyd's.

Bermuda

The Insurance Act 1978 of Bermuda and its related rules and regulations, as amended (the "Bermuda Insurance Act") regulates the insurance and reinsurance business of the following entities:

•Endurance Bermuda - Class 4 insurer;

•Blue Capital Re - Class 3A insurer;

•Blue Water Re - special purpose insurer; and

•Blue Water Re II - special purpose insurer.

The Bermuda Insurance Act provides that no person may carry on any insurance business in or from within Bermuda unless registered as an insurer by the BMA under the Bermuda Insurance Act. References to insurance or insurance business in this summary are deemed to include references to reinsurance and reinsurance business. The BMA, in deciding whether to grant registration, has broad discretion to act as it thinks fit in the public interest. The BMA is required by the Bermuda Insurance Act to determine whether the applicant is a fit and proper body to be engaged in the insurance business and, in particular, whether it has, or has available to it, adequate knowledge and expertise. The continued registration of an applicant as an insurer is subject to it complying with the terms of its registration and such other conditions as the BMA may impose from time to time.

The Bermuda Insurance Act imposes solvency and liquidity standards and auditing and reporting requirements on Bermuda insurance companies and grants the BMA powers to supervise, investigate, require information and the production of documents and intervene in the affairs of insurance companies. Certain significant aspects of the Bermuda insurance regulatory framework are set forth below.

The BMA has enacted various legislative and regulatory amendments to the Bermuda Insurance Act to aid in Bermuda's achievement of regulatory equivalence with that of the European Commission's Solvency II framework in relation to commercial insurance entities. Bermuda has been awarded full equivalence for commercial insurers under Europe's Solvency II regime applicable to insurance companies, which came into effect on January 1, 2016. The Insurance Amendment Act 2015 (No. 2) ("Act No. 2") and the Insurance Amendment Act 2015 (No. 3) ("Act No. 3") were proposed during 2015 as part of the BMA's objective of receiving Solvency II equivalency. Act No. 2 and Act No. 3 were approved by the Bermuda Parliament with the majority of the changes becoming operative on January 1, 2016. Act No. 2 and Act No. 3 materially amend the Bermuda Insurance Act including to: (i) require certain classes of insurers (including the Company) to maintain their head offices in Bermuda; (ii) require insurers to notify the BMA of any reduction or disposal of shares taking a shareholder controller below 10%, 20%, 33% or 50%; (iii) permit certain classes of insurers to submit condensed audited GAAP financial statements; and (iv) establish the minimum criteria of matters of material significance whereby the approved auditor is required to provide written notice to the BMA of those matters that would impact the BMA's discharge of its functions under the Bermuda Insurance Act. The Act No. 3 also materially amends the Insurance Returns and Solvency Regulations 1980 to include the items and the content of the documents to be submitted as part of the required statutory financial returns for insurers carrying on special purpose business. The Insurance (Prudential Standards) (Class 4 and Class 3B Solvency Requirement) Amendment Rules 2015 and Insurance (Prudential Standards) (Class 3A Solvency Requirement) Amendment Rules 2015, effective as of January 1, 2016, expand the prudential standards of the Bermuda Insurance Act to include the requirements of insurers and insurance groups to meet regulatory capital and reporting requirements on a statutory economic capital and surplus basis. Further amendments to the Bermuda Insurance Act provide that all insurers are now required to implement corporate

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governance policies and processes as the BMA considers appropriate given the nature, size, complexity and risk profile of the insurer, and all insurers, on an annual basis, are now required to deliver a declaration to the BMA confirming whether or not they meet the minimum criteria for registration.

BCML is licensed as an insurance manager and agent under the Bermuda Insurance Act and is also licensed to carry on investment business under the Investment Business Act 2003, as amended.

Classification of Insurers

The Bermuda Insurance Act distinguishes between insurers carrying on long-term business, insurers carrying on general business and insurers carrying on special purpose business. There are six classifications of insurers carrying on general business, ranging from Class 1 insurers (pure captives) to Class 4 insurers (very large commercial underwriters), with Class 4 insurers being subject to the strictest regulation. There is only one classification of special purpose insurer. The Endurance Holdings entities licensed in Bermuda are not licensed to carry on long-term business. Endurance Bermuda as a Class 4 insurer must (i) at the time of its application for registration, or before it carries on insurance business, have a total statutory capital and surplus of not less than $100.0 million and (ii) intend to carry on general insurance business, including excess liability business or property catastrophe reinsurance business. Class 4 insurers are required to maintain fully paid-up share capital of $1.0 million. Blue Capital Re as a Class 3A insurer must maintain fully paid-up capital of $120,000. Generally, Class 3A insurers must (i) intend to carry on general insurance business in circumstances where (a) 50% or more of the net premiums written or (b) 50% or more of the loss and loss exchange provisions, represent unrelated business; and (ii) its total net premiums written from unrelated business are less than $50.0 million. The total annual net premiums from unrelated business written by Blue Capital Re may, in the future, exceed $50.0 million, the maximum amount of total net premiums currently permitted by a Class 3A insurer. However, Blue Capital Re has obtained a waiver from the BMA so that it may remain a Class 3A insurer at all times, even if it writes more than $50.0 million in total annual net premiums from unrelated business. Blue Water Re and Blue Water Re II as special purpose insurers, must fully collateralize the insurance and reinsurance contracts they each write and all parties to these agreements must be sophisticated. Blue Water Re must notify the BMA of each reinsurance contract it writes and Blue Water Re II is only permitted to write business with Endurance Bermuda.

Cancellation of Insurer's Registration

An insurer's registration may be canceled by the BMA on certain grounds specified in the Bermuda Insurance Act, including failure of the insurer to comply with its obligations under the Bermuda Insurance Act or if, in the opinion of the BMA, the insurer has not been carrying on business in accordance with sound insurance principles.

Principal Representative, Head and Principal Office

Every registered insurer or reinsurer is required to maintain a principal office in Bermuda and to appoint and maintain a principal representative in Bermuda, subject to certain prescribed requirements under the Bermuda Insurance Act. Further, any registered insurer that is a Class 3A insurer or above is required to maintain a head office in Bermuda and direct and manage its insurance business from Bermuda. The recent amendments to the Bermuda Insurance Act provide that in considering whether an insurer satisfies the requirements of having its head office in Bermuda, the BMA may consider (a) where the underwriting, risk management and operational decision making occurs; (b) whether the presence of senior executives who are responsible for, and involved in, the decision making are located in Bermuda; and (c) where meetings of the board of directors occur. The BMA will also consider (a) the location where management meets to effect policy decisions; (b) the residence of the officers, insurance managers or employees; and (c) the residence of one or more directors in Bermuda.

For the purpose of the Bermuda Insurance Act, Endurance Bermuda, Blue Capital Re, Blue Water Re and Blue Water Re II's principal office is the Company's executive offices at Waterloo House, 100 Pitts Bay Road, Pembroke HM 08, Bermuda. Michael J. McGuire has been appointed by the Board of Directors as Endurance Bermuda's principal representative and has been approved by the BMA. BCML has been appointed and approved as the principal representative for Blue Capital Re, Blue Water Re and Blue Water Re II. The principal representative has statutory reporting duties under the Bermuda Insurance Act for certain reportable events, such as threatened insolvency or non-compliance with the Bermuda Insurance Act or with a condition or restriction imposed on an insurer.

Where there has been a significant loss that is reasonably likely to cause Endurance Bermuda and/or Blue Capital Re to fail to comply with its enhanced capital requirement (as described in more detail below), the principal representative must furnish the BMA with a capital and solvency return reflecting an enhanced capital requirement prepared using post-loss data. The principal representative must provide this within forty-five days of notifying the BMA of the loss.

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In addition, where a notification has been made to the BMA regarding a material change to an insurer's business or structure (as described in more detail below), the principal representative has thirty days from the date of such notification to provide to the BMA unaudited interim statutory financial statements in relation to such period if so requested by the BMA, together with a general business solvency certificate in respect of those statements.

Independent Approved Auditor

Every registered insurer must appoint an independent auditor who will audit and report annually on the statutory financial statements and the statutory financial return of the insurer, both of which, in the case of Endurance Bermuda, are required to be filed annually with the BMA. Each of Blue Capital Re, Blue Water Re and Blue Water Re II has obtained a waiver under the Bermuda Insurance Act and is not required to file audited statutory financial statements and statutory financial returns annually with the BMA; however, Blue Capital Re, Blue Water Re and Blue Water Re II are each required to file annual audited GAAP financial statements with the BMA. Endurance Bermuda, Blue Capital Re, Blue Water Re and Blue Water Re II's independent auditor must be approved by the BMA and may be the same person or firm that audits Endurance Holdings' consolidated financial statements and reports for presentation to its shareholders. Ernst & Young Ltd., the independent auditor of Endurance Bermuda, Blue Capital Re, Blue Water Re and Blue Water Re II, has been approved by the BMA.

Loss Reserve Specialist and Group Actuary

As a registered Class 4 insurer, Endurance Bermuda is required to appoint and maintain a loss reserve specialist who is required to submit an opinion with Endurance Bermuda’s statutory financial return in respect of Endurance Bermuda’s losses and loss expenses provisions. The loss reserve specialist, who will normally be a qualified property and casualty actuary, must be approved by the BMA. Jeffrey Dollinger, Chief Reserving Actuary for the Company, has been appointed by the Board of Directors and has been approved by the BMA to act as Endurance Bermuda's loss reserve specialist.

Blue Capital Re, Blue Water Re and Blue Water Re II are not currently required to obtain an opinion form a loss reserve specialist in respect of their stand-alone loss and loss expenses provisions.

Endurance Bermuda, as the Designated Insurer for the Group (see further below), is required to ensure that the Group appoints an actuary approved by the BMA to provide an opinion as to the adequacy of the Group's insurance reserves as reported in its group statutory financial statements. Mr. Dollinger has also been approved by the BMA to act as the Approved Group Actuary for the Group.

Group Supervision

The BMA may, in respect of an insurance group, determine whether it is appropriate for it to act as its group supervisor. An insurance group is defined as a group of companies that conducts exclusively, or mainly, insurance business. The BMA may make such determination where it ascertains that (i) the group is headed by a "specified insurer", which is a Class 3A, Class 3B or Class 4 general business insurer or a Class C, Class D or Class E long-term insurer or another class of insurer designated by order of the BMA; (ii) where the insurance group is not headed by a specified insurer, where it is headed by a parent company which is incorporated in Bermuda; or (iii) where the parent company of the group is not a Bermuda company, in circumstances where the BMA is satisfied that the insurance group is directed and managed from Bermuda or the insurer with the largest balance sheet total is a specified insurer.

Where the BMA determines that it should act as the group supervisor, it shall designate a specified insurer that is a member of the insurance group to be the designated insurer (the "Designated Insurer") and it shall give to the Designated Insurer and other competent authorities written notice of its intention to act as group supervisor. Endurance Bermuda has been notified by the BMA that the Company's group of insurance and reinsurance companies (the "Group") is subject to group supervision by the BMA, and that Endurance Bermuda is the Designated Insurer in respect of the Group for purposes of the Bermuda Insurance Act.

Pursuant to its powers under the Bermuda Insurance Act as group supervisor, the BMA maintains a register of particulars for the Group detailing, among other things, the names and addresses of the Designated Insurer; each member company of the Group falling within the scope of group supervision; the principal representative of the Group in Bermuda; other competent authorities supervising other member companies of the Group; and the Group's auditors. The BMA and the European Insurance and Occupational Pensions Authority signed a memorandum of understanding in January 2017 (the "MoU") under which each authority agrees to provide mutual assistance and the exchange of information to ensure optimal supervision for insurance and reinsurance groups with international activities in the European Union and Bermuda. The BMA may share information about the Group with the European Insurance and Occupational Pensions Authority if a request is made pursuant to the terms set out in the MoU.

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The specific duties of the Designated Insurer include reporting obligations, the establishment of key Group functions, and notification to the BMA of material changes, certain specified events generally related to impairment to the Group financial condition or breaches by the Group, the appointment of auditors and actuaries and duties related to the financial condition of the Group.

In addition, the BMA has issued insurance group supervision rules in respect of the assessment of the financial situation and solvency, the system of governance and risk management, supervisory reporting and disclosures, the capital and solvency reporting requirements and capital requirements.

Annual Statutory and GAAP Financial Statements

Endurance Bermuda, as a Class 4 insurer, must prepare and file with the BMA annual statutory financial statements as prescribed by the Bermuda Insurance Act. The Designated Insurer on behalf of the Group must prepare and file with the BMA annual group statutory financial statements. The Bermuda Insurance Act prescribes rules for the preparation and substance of these statutory financial statements (which include, in statutory form, a balance sheet, an income statement, a statement of capital and surplus and notes thereto). The insurer or group is required to give detailed information and analyses regarding premiums, claims, reinsurance and investments.

Endurance Bermuda, as a Class 4 insurer, and the Designated Insurer on behalf of the Group are also required to prepare and file with the BMA audited annual financial statements and audited annual group financial statements respectively, prepared in accordance with GAAP or International Financial Reporting Standards.

Blue Capital Re, Blue Water Re and Blue Water Re II are each required to file annual audited GAAP financial statements with the BMA, as the requirement to file audited statutory financial statements and statutory financial returns annually with the BMA has been waived by the BMA.

Annual Statutory Financial Return

Endurance Bermuda, as a Class 4 insurer, is required to file with the BMA an annual statutory financial return. The statutory financial return for a Class 4 insurer includes, among other matters, a report of the approved independent auditor on the statutory financial statements of the insurer, solvency certificates, the statutory financial statements, the opinion of the loss reserve specialist and a schedule of reinsurance ceded. The solvency certificates must be signed by the principal representative and at least two directors of the insurer certifying that the minimum solvency margin and the minimum liquidity ratio have been met and must further certify whether the insurer has complied with the conditions attached to its certificate of registration. The statutory financial statements and the statutory financial return do not form part of the public records maintained by the BMA.

The Designated Insurer on behalf of the Group is required to file with the BMA an annual group statutory financial return. The group statutory financial return includes, among other matters, a group solvency certificate, particulars of ceded reinsurance, a list of non-insurance financial regulated entities owned by the Group, the opinion of the Group actuary and particulars of qualifying members as defined within the Group Supervision Rules. The group statutory financial return is not subject to independent audit.

Bermuda Insurer Capital Requirements

As a Class 4 insurer, Endurance Bermuda is required to maintain available statutory capital adequacy and surplus at a level equal to or in excess of its enhanced capital requirement ("ECR"), which is established by reference to either the Bermuda Solvency Capital Requirement model ("BSCR") or an approved internal capital model. An insurer may file an application under the Bermuda Insurance Act to have its ECR requirements waived. Blue Capital Re has obtained such a waiver from the BMA. Blue Water Re and Blue Water Re II, as special purpose insurers, are not subject to the ECR requirements.

The BSCR provides a risk-based capital model as a tool to assist the BMA both in measuring risk and in determining appropriate levels of capitalization. The BSCR employs a standard mathematical model that correlates the risk underwritten by Bermuda insurers and reinsurers to the capital that is dedicated to their business. The framework that has been developed applies a standard measurement format to the risk associated with an insurer's or reinsurer's assets, liabilities and premiums, including a formula to take account of catastrophe risk exposure. Where an insurer or reinsurer believes that its own internal model for measuring risk and determining appropriate levels of capital better reflects the inherent risk of its business, it may apply to the BMA for approval to use its internal capital model in substitution for the BSCR model. The BMA may approve an insurer's or reinsurer's internal model, provided certain conditions have been established, and may revoke approval of an internal model in the event that the conditions are no longer met or where it feels that the revocation is appropriate. The BMA

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reviews the internal model regularly to confirm that the model continues to meet the conditions. Endurance Bermuda utilizes the BMA's standard BSCR model for calculating its capital requirements.

While not specifically incorporated into the Bermuda Insurance Act, the BMA has established a target capital level for Class 4 insurers equal to 120% of their ECR ("TCL"). While a Class 4 insurer is not currently required to maintain its statutory capital and surplus at this level, the TCL serves as an early warning sign for the BMA, and failure to maintain statutory capital at least equal to the TCL will likely result in increased regulatory oversight by the BMA. Endurance Bermuda's capital level exceeded the TCL level as of December 31, 2016. The Bermuda Insurance Act also provides that the value of the statutory assets of a Class 4 insurer must exceed the value of its statutory liabilities by an amount greater than its prescribed minimum margin of solvency ("MSM"). The MSM that must be maintained at all times by a Class 4 insurer, such as Endurance Bermuda, with respect to its general business is the greater of: (a) $100.0 million; (b) 50% of net premiums written (with a credit for reinsurance ceded not exceeding 25% of gross premiums written); and (c) 15% of net loss and loss expense provisions and other general business insurance reserves.

In relation to the Group, the Designated Insurer must ensure that the value of the Group's assets exceeds the amount of the Group's liabilities by the aggregate MSM of each qualifying member of the Group. The Group is also required to maintain available group capital and surplus equal to the Group's ECR.

In order to demonstrate compliance with required capital levels, Endurance Bermuda and the Designated Insurer on behalf of the Group are each required to prepare and file a capital and solvency return, which sets out the calculation of applicable capital, as well as the risk management practices and other information used to calculate applicable capital.

The BMA requires Endurance Bermuda, as a Class 4 insurer, and the Group, as a Bermuda insurance group, to perform an assessment of their own risk and solvency requirements, referred to as a Commercial Insurer's Solvency Self Assessment ("CISSA") and the Group Solvency Self Assessment ("GSSA"). The CISSA and the GSSA provide the BMA with an entity's or group's (as applicable) view of the capital resources required to achieve its business objectives and to assess the insurer or insurance group’s governance, risk management and controls surrounding this process. In addition, Class 4 insurers and insurance groups are required to prepare and file with the BMA a catastrophe risk return, which assesses an insurer's reliance on vendor models in assessing catastrophe exposure.

Restrictions on Dividends, Distributions and Reduction of Capital

Under the Bermuda Insurance Act, Endurance Bermuda and Blue Capital Re are prohibited from declaring or paying any dividends of more than 25% of its total statutory capital and surplus, as shown on its previous financial year statutory balance sheet, unless at least seven days before payment of the dividends it files with the BMA an affidavit signed by at least two directors and by the insurer's principal representative in Bermuda that the declaration of such dividend has not caused the insurer to fail to meet its relevant margins. In addition, Endurance Bermuda and Blue Capital Re are prohibited from declaring or paying any dividends during any financial year if they are in breach of their ECR, solvency margins or liquidity ratios (as described in more detail below) or if the declaration of such dividend would cause a breach.

Furthermore, under the Companies Act 1981 of Bermuda, as amended (the "Bermuda Companies Act"), Bermuda domiciled companies may only declare or pay a dividend or make a distribution from contributed surplus, if the company has no reasonable grounds for believing that it is, or would after the payment be, unable to pay its liabilities as they become due, or if the realizable value of its assets would be less than its liabilities.

Endurance Bermuda as a Class 4 insurer must obtain the BMA's prior approval before reducing its total statutory capital, as shown on its previous financial year statutory balance sheet, by 15% or more and any application for such approval must include an affidavit signed by at least two directors and by the insurer's principal representative in Bermuda stating that the proposed reduction of capital will not cause the insurer to fail to meet its relevant margins.

Minimum Liquidity Ratio

The Bermuda Insurance Act provides for a minimum liquidity ratio for general business insurers, like Endurance Bermuda and Blue Capital Re. An insurer engaged in general insurance business is required to maintain the value of its relevant assets at not less than 75% of the amount of its relevant liabilities. Relevant assets include, but are not limited to, cash and time deposits, quoted investments, unquoted bonds and debentures, first liens on real estate, investment income due and accrued, accounts and premiums receivable, reinsurance balances receivable and funds held by ceding reinsurers. There are certain categories of assets which, unless specifically permitted by the BMA, do not automatically qualify as relevant assets, such as unquoted equity securities, investments in and advances to affiliates and real estate and collateral loans. The relevant liabilities are total general business insurance reserves and total other liabilities less deferred income tax and sundry liabilities (by interpretation, those not specifically defined), letters of credit and guarantees.

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Supervision, Investigation and Intervention

The BMA may appoint an inspector with extensive powers to investigate and report on the affairs of Endurance Bermuda, Blue Capital Re, Blue Water Re, Blue Water Re II or the Group if the BMA believes that such an investigation is in the best interests of its policyholders or persons who may become policyholders. Such an inspector also has the power to investigate the business of any person who is or at any relevant time was a member of the Group of which the person under investigation is a part or a partnership of which the person under investigation is part. In order to verify or supplement information otherwise provided to the BMA, the BMA may direct a company to produce documents or information relating to matters connected with its business. In addition, the BMA has the power to require the production of documents from any person who appears to be in possession of such documents. Further, the BMA has the power, in respect of a person registered under the Bermuda Insurance Act, to appoint a professional person to prepare a report on any aspect of any matter about which the BMA has required or could require information. If it appears to the BMA to be desirable in the interests of the clients of a person registered under the Bermuda Insurance Act, the BMA may also exercise these powers in relation to any company which is or has at any relevant time been (a) a parent company, subsidiary company or related company of that registered person; (b) a subsidiary company of a parent company of that registered person, (c) a parent company of a subsidiary company of that registered person; or (d) a company in the case of which a shareholder controller of that registered person, either alone or with any associate or associates, holds 50 percent or more of the shares or is entitled to exercise, or control the exercise, of more than 50 percent of the voting power at a general meeting.

If it appears to the BMA that there is a significant risk of a company becoming insolvent, or that a company is in breach of the Bermuda Insurance Act or any conditions imposed upon its registration, the BMA may, among other things, direct the company (i) not to effect further contracts of insurance, or any contract of insurance of a specified description; (ii) to limit the aggregate of the premiums to be written by it during a specified period beginning not earlier than 28 days after the direction is given; (iii) not to vary any contract of insurance in force when the direction is given, if the effect of the variation would be to increase the liabilities of the insurer; (iv) not to make any investment of a specified class; (v) before the expiration of a specified period (or such longer period as the BMA may allow) to realize any existing investment of a specified class; (vi) not to declare or pay any dividends or any other distributions, or to restrict the making of such payments to such extent as the BMA thinks fit; (vii) not to enter into any specified transaction with any specified person or persons of a specified class; (viii) to provide such written particulars relating to the financial circumstances of the insurer as the BMA thinks fit; (ix) to obtain the opinion of a loss reserve specialist with respect to general business, or an actuarial opinion with respect to long-term business, and to submit it to the BMA within a specified time; (x) to remove a controller or officer; and (xi) to maintain in, or transfer to and keep in the custody of, a specified bank, assets of the insurer of such value and description as the BMA may direct.

Disclosure of Information

In addition to powers under the Bermuda Insurance Act to investigate the affairs of an insurer, the BMA may require certain information from an insurer (or certain other persons) to be produced to them. Further, the BMA has the power to assist other regulatory authorities, including foreign insurance regulatory authorities, with their investigations involving insurance and reinsurance companies in Bermuda but subject to restrictions. For example, the BMA must be satisfied that the assistance being requested is in connection with the discharge of regulatory responsibilities of the foreign regulatory authority. Further, the BMA must consider whether cooperation is in the public interest. The grounds for disclosure are limited and the Bermuda Insurance Act provides sanctions for breach of the statutory duty of confidentiality.

The Insurance Code of Conduct

The BMA has implemented the Insurance Code of Conduct, which establishes duties, requirements and compliance standards to be adhered to by all insurers registered under the Bermuda Insurance Act, including procedure and sound principles to be observed by insurers. Failure to comply with the requirements of the Insurance Code of Conduct will be a factor taken into account by the BMA in determining whether an insurer is conducting its business in a sound and prudent manner as prescribed by the Bermuda Insurance Act and could result in the BMA exercising its powers of intervention as well as being a factor in calculating the operational risk charge applicable to that insurer's risk based capital model. Endurance Bermuda, Blue Capital Re, Blue Water Re and Blue Water Re II are each subject to the Insurance Code of Conduct and are required to file annually a statutory declaration confirming its compliance with the Insurance Code of Conduct.

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The Insurance Manager Code of Conduct

In 2016, the BMA implemented the Insurance Manager Code of Conduct, which establishes duties, requirements and compliance standards to be adhered to by all insurance managers registered under the Bermuda Insurance Act, including the procedure and sound principles to be observed by insurance managers. Insurance managers were required to implement the Insurance Manager Code of Conduct into their operations by December 31, 2016. Failure to comply with the requirements of the Insurance Manager Code of Conduct will be taken into account by the BMA in assessing whether the insurance manager has satisfied its requirement under the minimum criteria for registration to conduct its business in a prudent manner. However, the BMA takes a proportionate approach to compliance, taking into consideration the nature, scale and complexity of an insurance managers' business. BCML is subject to the Insurance Manager Code of Conduct and will be required to file annually prior to June 30 an annual return, and a statutory declaration confirming its compliance with the Insurance Manager Code of Conduct.

Notifications to the BMA

The BMA maintains supervision over the controllers of all registered insurers in Bermuda. A controller includes (i) the managing director of the registered insurer or its parent company; (ii) the chief executive of the registered insurer or of its parent company; (iii) a shareholder controller; and (iv) any person in accordance with whose directions or instructions the directors of the registered insurer or of its parent company are accustomed to act, including any person who holds, or is entitled to exercise, 10% or more of the voting shares or voting power or is able to exercise a significant influence over the management of the insurer.

The definition of "shareholder controller" is set out in the Bermuda Insurance Act but generally refers to (i) a person who holds 10% or more of the shares carrying rights to vote at a shareholders' meeting of the registered insurer or its parent company, or (ii) a person who is entitled to exercise 10% or more of the voting power at any shareholders' meeting of such registered insurer or its parent company, or (iii) a person who is able to exercise significant influence over the management of the registered insurer or its parent company by virtue of its shareholding or its entitlement to exercise, or control the exercise of, the voting power at any shareholders' meeting.

Where an insurer's shares or its parent company's shares are traded on any stock exchange recognized by the BMA, then any shareholder must notify the BMA within 45 days of becoming or ceasing to be a 10 percent, 20 percent, 33 percent, or 50 percent shareholder controller of such insurer. The notice has to be given within 45 days of the shareholder becoming aware of the relevant facts. These provisions are applicable to us and our shareholders although we are unlikely to ever trigger the shareholder controller provisions in respect of U.S. shareholders due to the limitation on voting provisions in Endurance Bermuda’s bye-laws.

Endurance Bermuda is also required to notify the BMA in writing in the event any person has become or ceased to be an officer of Endurance Bermuda. For these purposes, an "officer" is defined as being a director, chief executive or senior executive performing duties of underwriting, actuarial, risk management, compliance, internal audit, finance or investment matters. Failure to give a required notice is an offence under the Bermuda Insurance Act.

No insurer, or designated insurer, in respect of the group of which it is a member, may effect or allow another member of the group to effect a material change unless notice in writing of the material change has been served on the BMA and the BMA has not before the end of thirty days from the date of service of the notice notified it in writing that it has objected to the effecting of the material change. A "material change" includes (i) an acquisition or transfer of insurance business being part of a scheme falling within, or any transaction relating to a scheme of arrangement under, section 25 of the Bermuda Insurance Act or section 99 of the Bermuda Companies Act, (ii) an amalgamation with or acquisition of another firm, (iii) engaging in unrelated business that is retail business, (iv) an acquisition of controlling interest in an undertaking that is engaged in non-insurance business that offers services and products to persons who are not affiliates of the insurer; (v) outsourcing all or substantially all of the functions of actuarial, risk management, compliance or internal audit; (vi) outsourcing of all or a material part of an insurer's underwriting activity; (vii) the transfer other than by way of reinsurance of all or substantially all of a line of business; (viii) expansion into a material new line of business; (ix) the sale of an insurer; and (x) outsourcing of an officer role. Failure to give such notice constitutes an offence under the Bermuda Insurance Act. It is possible to appeal a notice of objection served by the BMA.

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Bermuda Guidance Notes

The BMA has issued Guidance Notes on the application of the Bermuda Insurance Act in respect of the duties, requirements and standards to be complied with by persons registered under the Bermuda Insurance Act or otherwise regulated under it and the procedures and sound principles to be observed by such persons and by auditors, principal representatives and loss reserve specialists. The BMA continues to issue Guidance Notes through its web site at www.bma.bm. These provide guidance on, among other things, the roles of the principal representative, approved auditor, and approved actuary and corporate governance for Bermuda insurers and insurance groups. The BMA has stated that the Guidance Notes should be understood as reflecting the minimum standard that the BMA expects insurers such as Endurance Bermuda and other relevant parties to observe at all times.

Winding-up

The BMA may present a petition for the winding-up of an insurer on the ground that the insurer (a) is unable to pay its debts within the meaning of Sections 161 and 162 of the Bermuda Companies Act, (b) has failed to satisfy an obligation to which it is or was subject by virtue of the Bermuda Insurance Act, or (c) has failed to satisfy the obligation imposed upon it by Section 15 as to the preparation of accounts or to produce or file statutory financial statements in accordance with Section 17 (save where the appropriate waivers have been obtained), and that the BMA is unable to ascertain the insurer’s financial position. In addition, if it appears to the BMA that it is expedient in the public interest that an insurer should be wound up, it may present a petition for it to be so wound up if a court thinks it just and equitable for it to be so wound up.

Certain Other Bermuda Law Considerations

Endurance Holdings, Endurance Bermuda, BCRH, Blue Capital Re, Blue Capital Re ILS, Blue Water Re, Blue Water Re II and BCML each are required to comply with the provisions of the Bermuda Companies Act regulating the payment of dividends and making of distributions from contributed surplus. Each company is prohibited from declaring or paying a dividend, or making a distribution out of contributed surplus, if there are reasonable grounds for believing that: (a) the company is, or would after the payment be, unable to pay its liabilities as they become due; or (b) the realizable value of the company’s assets would thereby be less than its liabilities.

Although Endurance Holdings, Endurance Bermuda, BCRH, Blue Capital Re, Blue Capital Re ILS, Blue Water Re, Blue Water Re II and BCML are incorporated in Bermuda, they are classified as a non-resident of Bermuda for exchange control purposes by the BMA. Pursuant to their non-resident status, each of these companies may engage in transactions in currencies other than Bermuda dollars and there are no restrictions on its ability to transfer funds (other than funds denominated in Bermuda dollars) in and out of Bermuda or, in the case of Endurance Holdings and BCRH, to pay dividends to United States residents who are holders of its ordinary shares.

Under Bermuda law, exempted companies are companies formed for the purpose of conducting business outside Bermuda from a principal place of business in Bermuda. As "exempted" companies, Endurance Holdings, Endurance Bermuda, BCRH, Blue Capital Re, Blue Capital Re ILS, Blue Water Re, Blue Water Re II and BCML may not, without the express authorization of the Bermuda legislature or under a license or consent granted by the Bermuda Minister of Economic Development, participate in certain business transactions, including: (1) the acquisition or holding of land in Bermuda (recent changes to the law enable exempted companies to purchase land in Bermuda outright for commercial and residential purposes, subject to obtaining ministerial consent and certain other conditions); (2) the taking of mortgages on land in Bermuda to secure an amount in excess of $50,000; (3) to acquire any bonds or debentures secured on any land in Bermuda except bonds or debentures issued by the Government of Bermuda or a public authority or (4) the carrying on of business of any kind for which it is not licensed in Bermuda, except in certain limited circumstances such as doing business with another exempted undertaking in furtherance of Endurance Holdings' business carried on outside Bermuda. Endurance Bermuda, Blue Capital Re, Blue Water Re and Blue Water Re II as licensed insurers in Bermuda, may carry on activities from Bermuda that are related to and in support of its insurance and reinsurance business. While an insurer is permitted to reinsure risks undertaken by any company incorporated in Bermuda and permitted to engage in the insurance and reinsurance business, generally it is not permitted without a special license granted by the Minister of Economic Development to insure Bermuda domestic risks or risks of persons of, in or based in Bermuda.

Securities may be offered or sold in Bermuda only in compliance with the provisions of the Investment Business Act 2003, and the Exchange Control Act 1972, and related regulations of Bermuda which regulate the sale of securities in Bermuda. In addition, specific permission is required from the BMA, pursuant to the provisions of the Exchange Control Act 1972 and related regulations, for all issuances and transfers of securities of Bermuda companies, other than in cases where the BMA has granted a general permission. The BMA, in its policy dated June 1, 2005, provides that where any equity securities, which would include our ordinary and preferred shares, of a Bermuda company are listed on an appointed stock exchange (the New York Stock Exchange is deemed to be an appointed stock exchange under Bermuda law), general permission is given for the

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issue and subsequent transfer of any securities of a company from and/or to a non-resident, for as long as any equity securities of the company remain so listed. The ordinary and preferred shares of Endurance Holdings are listed on the New York Stock Exchange, the shares of BCRH are listed on the New York Stock Exchange and the Bermuda Stock Exchange, and the shares of BCGR are listed on the Specialist Fund Market of the London Stock Exchange and on the Bermuda Stock Exchange.

Notwithstanding the above general permission, the BMA has granted us permission to, subject to our ordinary or voting shares being listed on an appointed stock exchange, issue, grant, create, sell and transfer any of our shares, stock, bonds, notes (other than promissory notes), debentures, debenture stock, units under a unit trust scheme, shares in an oil royalty, options, warrants, coupons, rights and depository receipts (collectively, the "Securities") to and among persons who are either resident or non-resident of Bermuda for exchange control purposes, whether or not the Securities (excluding, for the avoidance of doubt, our ordinary or voting shares) are listed on an appointed stock exchange.

The Minister of Finance, under Bermuda's Exempted Undertakings Tax Protection Act 1966, as amended, has given us a written assurance that if any legislation is enacted in Bermuda that would impose tax on profits or income, or computed on any capital asset, gain or appreciation, or any tax in the nature of estate duty or inheritance tax, then the imposition of any such tax will not be applicable to us or any of our operations or our shares, debentures or other obligations until March 31, 2035. It is possible that after March 31, 2035 we may be subject to Bermuda taxes.

The Contracts (Rights of Third Parties) Act 2016 became operative in Bermuda on March 28, 2016 and permits third parties, who are expressly identified in a contract but not specifically party to such contract, to be entitled to enforce and benefit from the terms of the contract, subject to certain requirements. The Bermuda legislation closely resembles the existing UK rights of third parties legislation.

Bermuda Work Permit Considerations

Generally, under Bermuda law, non-Bermudians (other than spouses of Bermudians and individuals holding permanent resident's certificates or working resident's certificates) may not engage in any gainful occupation in Bermuda without the appropriate governmental standard work permit.

Standard work permits can be obtained for a one-, two-, three-, four- or five-year period. Ten year permits are also available but these are generally only applicable where a company meets various criteria, including at least 10 Bermudian staff, development programs for Bermudians, entry level position and equal pay between Bermudians and non-Bermudians. Recent changes to the law now enable an employer to apply for an exemption from the requirement to hold a work permit in respect of its senior executives. Certain senior executives are also now eligible to apply for a permanent resident certificate. Where a standard work permit is being applied for, it is a requirement that the job must be advertised for three days (within an eight-day period) in a local Bermuda newspaper.

U.K. Regulation

General

In the U.K., parts of the Endurance business are subject to regulation by the Prudential Regulation Authority ("PRA") and the Financial Conduct Authority ("FCA"). The PRA oversees and is responsible for the micro-prudential regulation of banks, insurers and some investment firms. The FCA, which is a separate entity, is responsible for the conduct of business regulation in relation to all authorized firms and the prudential regulation of firms not regulated by the PRA as well as the majority of the market regulatory functions previously conducted by the Financial Services Authority. In addition, the Bank of England's Financial Policy Committee is responsible for the macro-prudential regulation of the entire financial services sector. Under this regulatory structure Endurance U.K. and Endurance at Lloyd's are supervised by both the FCA and the PRA. Endurance Global Weather Risk Advisers Ltd ("EGWRAL") is regulated by only the FCA. In addition, the Council of Lloyd's is responsible under the Lloyd's Act 1982 for the management and supervision of Lloyd's, including its members, syndicates and managing agents, and has rule-making and enforcement powers. The Council of Lloyd's may discharge some of its functions directly by making decisions and issuing resolutions, requirements, rules and byelaws. Other decisions are delegated to the Lloyd's Franchise Board and associated committees. The PRA and FCA, when relevant, coordinate with each other and Lloyd's over its use of enforcement powers. Endurance Corporate Capital Limited ("ECCL") and Endurance at Lloyd's are subject to regulation by Lloyd's.

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Supervision

The PRA's approach to supervision of insurance companies is forward looking and judgment based. In taking a forward looking approach, the PRA looks at the current risks faced by a firm, and also possible future risks that may impact on the safety and soundness of a firm's business. By using quantitative and qualitative analysis, the PRA uses its risk assessment framework to form a judgment about the level and type of supervision required for a firm based on how great a risk the firm poses to the stability of the United Kingdom financial system.

The FCA's supervisory focus is on good market conduct and consumer protection, and it also takes a risk-based approach to supervision. The FCA makes judgments and takes action based on the risks posed by firms to the FCA meeting its objectives. There are three elements to the FCA's supervision framework:

• the firm systematic framework, which is designed to assess a firm's conduct risk by reference to the firm's business model and an assessment of how it embeds fair treatment of customers and ensures market integrity in its conduct of business;

• event-driven work to enable the FCA to respond quickly to identified risks in the market; and

• issues and product focused work to enable the FCA to deal promptly with emerging issues that might put customers at risk.

Endurance U.K.

Insurance business in the United Kingdom is divided between two main categories: long-term insurance (which is primarily investment-related and life insurance) and general insurance. These two categories are both further divided into "classes" of business. Under the Financial Services and Markets Act 2000 as amended ("FSMA"), effecting or carrying out contracts of insurance, within a class of general or long-term insurance, by way of business in the United Kingdom, constitutes a regulated activity requiring individual authorization. An authorized insurance company must have permission for each class of insurance business it intends to write.

Endurance U.K. is authorized to effect and carry out in the United Kingdom contracts of insurance in all classes of general insurance (limited in the case of credit and surety to reinsurance only) except legal expenses and assistance business. On January 14, 2005, as a result of the implementation by the United Kingdom Government of the Insurance Mediation Directive (2002/92/EC), various additional activities, which had previously been unregulated, fell within the scope of United Kingdom regulation.

Accordingly, Endurance U.K. is authorized to conduct the following additional regulated activities: arranging (bringing about) deals in investments and making arrangements with a view to transactions in investments. In both cases, these activities are restricted to non-investment insurance contracts. Endurance U.K. is also authorized to accept deposits (limited to accepting deposits in the course of carrying on insurance business for which it holds permission).

As an authorized insurer in the United Kingdom, Endurance U.K. is able to operate throughout the European Union, subject to certain additional regulatory requirements. An insurance company with authorization to write insurance business in the United Kingdom can seek consent from the PRA to allow it to provide cross-border services in other member states of the E.U. As an alternative, PRA consent may be obtained to establish a branch office within another member state, which may require compliance with certain additional local regulatory requirements in respect of the branch.

As an authorized insurer, the insurance and reinsurance businesses of Endurance U.K. are subject to close supervision by the PRA and the FCA. There are a number of specific requirements for governance and risk management, including in respect of senior management arrangements and systems and controls, which place a strong emphasis on risk identification and management in relation to the prudential regulation of insurance and reinsurance business in the United Kingdom.

Syndicate 5151, ECCL and Endurance at Lloyd's

ECCL, Syndicate 5151's corporate underwriting member at Lloyd's, provides 100% of the stamp capacity of Syndicate 5151. Stamp capacity is a measure of the amount of premium a syndicate is authorized to write by Lloyd's. Syndicate 5151's stamp capacity for 2017 is £370.0 million compared to £220.0 million for 2016.

As a corporate underwriting member of Lloyd's, ECCL is bound by the rules of Lloyd's, which are prescribed by byelaws and requirements made by the Council of Lloyd's under powers conferred by the Lloyd's Act 1982. These rules, among other matters, prescribe ECCL's membership subscription, the level of its contribution to the Lloyd's New Central Fund and the

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assets it must deposit with Lloyd's in support of its underwriting. The Council of Lloyd's has broad powers to sanction breaches of its rules, including the power to restrict or prohibit a member's participation in Lloyd's syndicates.

Under the U.K. regulatory regime, Endurance at Lloyd's, as a managing agent regulated by the PRA and FCA, in addition to Lloyd's, is required, among other matters, to adopt internal systems and controls appropriate to the risks of their business, obtain regulatory approval for those members of staff responsible for performing certain controlled functions and calculate the level of capital required to support the underwriting of the syndicates that it manages. It is also subject to minimum solvency tests and is required to conduct its business according to eleven core regulatory principles, to which all firms regulated by the PRA and FCA are subject. Each corporate or individual member of Lloyd's is required to deposit cash, securities or letters of credit (or a combination of these assets) with Lloyd's to support its participation on Lloyd's syndicates. These assets are known as a member's "Funds at Lloyd's." Funds at Lloyd's requirements are calculated according to a minimum capital resources requirement, which is assessed at the syndicate level by Lloyd's and at the level of the Lloyd's market as a whole by the PRA.This requirement is similar in effect to a required solvency margin. Endurance Bermuda holds cash and securities in trust of $323.6 million at December 31, 2016 and $276.8 million at December 31, 2015 on behalf of ECCL in support of its participation in Syndicate 5151.

The Council of Lloyd's also supervises the companies or partnerships authorized by managing agents to enter into contracts of insurance on behalf of Lloyd's syndicates ("Coverholders"), including those of Endurance at Lloyd's, as part of its statutory role in managing and supervising the Lloyd's market. This supervision is carried out through the approval process and through Lloyd's ongoing supervision of Coverholders. Local regulators may require Lloyd's to demonstrate that it has control over, and responsibility for, the business carried out by Coverholders under the terms of Lloyd's authorization in that jurisdiction. Nonetheless, the primary responsibility for the oversight of Coverholders and binding authorities on a day-to-day basis rests with Lloyd's managing agents, such as Endurance at Lloyd's.

At the syndicate level, managing agents are required to calculate the capital resources requirement of the members of each syndicate they manage in accordance with the Solvency II framework (as described in more detail below), replacing the Individual Capital Adequacy ("ICA") regime under Solvency I. Lloyd's requires that each syndicate calculate a Solvency II Solvency Capital Requirement ("SCR"). In the case of Syndicate 5151, this utilized ECCL's own internal model equivalent to the Solvency II principles. Both the SCR and former ICA requirement evaluate the risks faced by the syndicate, including insurance risk, operational risk, market risk, credit risk, liquidity risk and group risk, and assess the amount of capital that syndicate members should hold against those risks.

Lloyd's reviews each syndicate's SCR annually and may challenge it. In order to ensure that Lloyd's aggregate capital is maintained at a high enough level to support its overall security rating, Lloyd's adds an uplift to each member's overall capital resources requirement produced by the ICA or SCR. The aggregate amount is known as a syndicate's Economic Capital Assessment, which is used by Lloyd's to determine the syndicate's required Funds at Lloyd's.

At market level, Lloyd's is required to demonstrate to the PRA that each member's capital resources requirement is met by that member's capital resources made available to Lloyd's, which for this purpose comprises its Funds at Lloyd's and its share of member capital held at syndicate level. Any deficits must be covered by the Lloyd's New Central Fund, which is itself subject to review by the PRA for the purposes of the capital adequacy of the market as a whole. The Council of Lloyd's has wide discretionary powers to regulate members' underwriting at Lloyd's. It may, for instance, vary the amount of a member's Funds at Lloyd's requirement (or alter the ways in which those funds may be invested). The exercise of any of these powers may reduce the amount of premium which a member is allowed to accept for its account in an underwriting year and/or increase a member's costs of doing business at Lloyd's. As a consequence, the member's ability to achieve an anticipated return on capital during that year may be compromised.

Each syndicate is required to submit a business plan to Lloyd's on an annual basis, which is subject to the review and approval of the Lloyd's Franchise Board. The Franchise Board is the managing agents' principal interface with the Council of Lloyd's. The main goal of the Franchise Board is to seek to create and maintain a commercial environment at Lloyd's in which underwriting risk is prudently managed while providing maximum long-term returns to capital providers.

Lloyd's syndicates are treated as "annual ventures" and members' participation on syndicates may change from underwriting year to underwriting year. Ordinarily, a syndicate will accept business over the course of one calendar year (an underwriting year of account), which will remain open for a further two calendar years before being closed by means of "reinsurance to close". An underwriting year may be reinsured to close by the next underwriting year of the same syndicate or by an underwriting year of a different syndicate. Prior to 2005, the London market operated according to a three-year accounting cycle so that members were not able to distribute profits made in an underwriting year until it had been reinsured to close, usually at the end of three years. Since then, provided that certain solvency requirements are met, underwriting profits may be distributed in part before the year has been reinsured to close. Once an underwriting year has been reinsured to close,

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Lloyd's will release the Funds at Lloyd's provided that they are not required to support open underwriting years or to meet a loss made on the closed underwriting year. If reinsurance to close cannot be obtained at the end of an underwriting year's third open year (either at all, or on terms that the managing agent considers to be acceptable on behalf of the members participating on that underwriting year), then the managing agent must determine that the underwriting year will remain open. If the managing agent determines to keep the underwriting year open, then the underwriting year of account will be considered to be in run-off, and the Funds at Lloyd's of the participating members will continue to be held by Lloyd's to support their continuing liabilities unless the members can demonstrate that their Funds at Lloyd's are in excess of the amount required to be held in relation to that year.

The reinsurance to close of an underwriting year does not discharge participating members from the insurance liabilities they incurred during that year. Rather, it provides them with a full indemnity from the members participating in the reinsuring underwriting year in respect of those liabilities. Therefore, even after all the underwriting years in which a member has participated have been reinsured to close, the member is required to stay in existence and to remain a non-underwriting member of Lloyd's. Accordingly, although Lloyd's will release members' Funds at Lloyd's, there nevertheless continues to be an administrative and financial burden for corporate members between the time of the reinsurance to close of the underwriting years on which they participated and the time that their insurance obligations are entirely extinguished. This includes the completion of financial accounts in accordance with the U.K. Companies Act 2006 and the submission of an annual compliance declaration to Lloyd's.

Underwriting losses incurred by a syndicate during an underwriting year must be paid according to the links in the Lloyd's chain of security. Claims must be funded first from the member's (or members') premiums trust fund(s) (which are held under the control of the syndicate's managing agent), second from a cash call made to the syndicate's member(s) and third from the member's (or members') Funds at Lloyd's. In the event that any member is unable to pay its debts owed to policyholders from these assets, such debts may be paid by the Lloyd's New Central Fund.

Syndicate 5151's contribution to the Lloyd's New Central Fund, which is available to satisfy claims if a member of Lloyd's is unable to meet its obligation to policyholders and is funded annually by members, was determined by Lloyd's to be 0.35% of Syndicate 5151's written premiums with respect to 2016 (2015 - 0.5%). In addition, the Council of Lloyd's has the power to call on members to make an additional contribution to the New Central Fund of up to 3% for 2016 (2015 - 3%) of their underwriting capacity each year should it decide that such additional contributions are necessary.

Lloyd's also imposes other charges on its members and the syndicates on which they participate, including an annual subscription charge of 0.45% (2015 - 0.5%) of written premiums and an overseas business charge, levied as a percentage of gross international premiums (defined as business outside the U.K. and the Channel Islands), with the percentage depending on the type of business written. Lloyd's also has the power to impose additional charges under Lloyd's Powers of Charging Byelaw.

Solvency Requirements

The solvency requirements applicable to insurance companies domiciled in the EU are primarily derived from the requirements of the Solvency II Directive. The Directive introducing Solvency II came into force on January 6, 2010 and Member States were required to transpose the new regime by March 31, 2015. The Solvency II Directive (2009/138/EC) has been subsequently amended (by the Second Solvency II Quick Fix Directive (2013/58/EU) and the Omnibus II Directive (2014/51/EU)) and references to Solvency II here are to the Directive as amended. The Solvency II regime came into effect and firms are required to operate subject to it with effect from January 1, 2016.

The objective of Solvency II is to establish a solvency system that is better matched to the true risks of insurers, enabling supervisors to protect policyholders' interests as effectively as possible and in accordance with common principles across the EU. It specifies a range of capital requirements, such as the minimum capital requirement ("MCR") and the SCR. Additionally, it establishes governance and risk management requirements, including but not limited to the following, an own risk and solvency assessment, a supervisory review process, disclosure and reporting requirements, and the regular supervisory report.

Solvency II is broadly structured according to three "pillars", which group the Solvency II requirements into three main areas that cover different aspects of the regime (and is in this respect similar to the Basel II Capital Accord). The Pillars are broadly:

•Pillar 1: financial requirements;

•Pillar 2: governance and risk-management requirements, and supervisory review; and

•Pillar 3: disclosure and reporting requirements.

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In terms of Pillar 1, Solvency II, sets out a number of capital requirements, such as an own funds requirement (including prescribing the type and nature of capital which is eligible to meet these capital requirements). It also specifies the obligation to have an MCR (i.e., the minimum amount of capital needed to be held by a firm and that is also part of the PRA's General Prudential Sourcebook) and the SCR (the risk based level of capital required to be held by a firm). Pillar 1 further sets out the various requirements in how a firm's capital is to be assessed, including the application of the standard and internal models and the manner in which assets and liabilities are to be valued. Significant elements of the Solvency II regime are similar in effect to the prior regime that operated in the U.K., pursuant to the Prudential Sourcebooks.

Under Pillar 2, firms must develop and embed systems to identify, measure and proactively manage risks. In particular, it sets out the own risk and solvency assessment ("ORSA"), which broadly requires a firm to assess (in a proportionate manner) all of the current and possible future risks it has within its business to determine the level of capital (own funds) needed to mitigate these risks.

Pillar 3 sets out a number of requirements on firms in relation to public disclosure and regulatory reporting. For example, firms are required to publish an annual report that sets out their solvency and financial condition. This is the firm's solvency and financial condition report ("SFCR") and must, inter alia, include information on the firm's capital management, its systems of governance and a description of each category of risk the firm is exposed to. The rationale behind this and the other disclosure and reporting requirements, set out in Pillar 3 is to ensure market discipline and provide supervisors with information required to carry out their functions.

The legislation implementing the final version of the Solvency II Directive has now replaced the solvency requirements described in the first three paragraphs of this section with effect from January 1, 2016. The PRA has an ongoing program of work including the approval of internal and standard models and the determination of the SCR and MCR applicable for each authorized insurer. Detailed implementation and the publication of replacement sourcebooks continue. Endurance U.K. has agreed its regulatory capital requirements under Solvency II with the PRA and continues to cooperate fully with the PRA in connection with the introduction of the Solvency II regime.

Restrictions on Dividend Payments

U.K. company law prohibits each of Endurance U.K., ECCL, EGWRAL and Endurance at Lloyd's from declaring a dividend to its shareholders unless it has "profits available for distribution". The determination of whether a company has profits available for distribution is based on its accumulated realized profits less its accumulated realized losses. While the United Kingdom insurance regulatory laws impose no statutory restrictions on a general insurer's ability to declare a dividend, the PRA strictly controls the maintenance of each insurance company's solvency margin within its jurisdiction. The PRA's rules require notification to the PRA of any proposed or actual payment of a dividend. Any such payment or proposal could result in regulatory intervention. In addition, the PRA requires authorized insurance companies to notify the PRA in advance of any significant dividend payment.

Reporting Requirements

U.K. insurance companies must prepare their financial statements under the Companies Act 2006 (as amended), which requires the filing with Companies House of audited financial statements and related reports. In addition, U.K. insurance companies are required to prepare and submit annual returns to the PRA, together with audited annual financial statements. The PRA uses the annual return to assist it in monitoring the solvency of an insurance company. The directors of an insurance company are required to sign a certificate to be submitted with the annual return, which includes a statement that the directors are satisfied that the company has complied in all material respects with certain parts of the PRA Handbook, in particular, the parts dealing with systems and controls and principles for businesses.

Supervision of Management

The PRA and the FCA closely supervise the management of insurance companies through the approved persons regime, by which any appointment of persons to perform certain specified "controlled functions" within a regulated entity must be approved by the regulators. Both regulators have responsibility for applications under the approved persons regime and the list of controlled functions has been split between the regulators. Which regulator has responsibility for approving an application will depend on the controlled function position. Following their authorization, there are codes of practice issued by the PRA and FCAwith which approved persons are expected to comply. A new senior managers regime has been put into place, pursuant to which the senior management of Endurance U.K. and Endurance at Lloyd's are regulated. While the new regime has some impact on the governance of these entities, it is not currently considered that it will materially change the overall level of supervision.

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Change of Control

The FSMA regulates the acquisition of control of any U.K. insurance company authorized under the FSMA. Any company or individual that (together with any person acting in concert with it or him) directly or indirectly acquires 10% or more of the shares in a U.K. authorized insurance company or its parent company, or is entitled to exercise or control the exercise of 10% or more of the voting power in such authorized insurance company or its parent company, would be considered to have acquired control of the authorized insurance company for the purposes of the relevant legislation, as would a person who had significant influence over the management of such authorized insurance company or its parent company by virtue of his shareholding or voting power in either company. A purchaser of 10% or more of the ordinary shares would therefore be considered to have acquired control of Endurance U.K. A slightly different threshold applies to EGWRAL because it only distributes insurance products. A new controller must seek consent from the FCA before acquiring 20% of the shares in EGWRAL or a parent.

Under FSMA, any person proposing to acquire control over a U.K. authorized insurance company must give prior notification to the PRA (or the FCA, if the company is only a distributor) of their intention to do so together with certain prescribed information and obtain the prior approval of the PRA or FCA, as applicable, to the change of control. Where a notification is made to the PRA, the PRA is required to consult with the FCA and the FCA may require the PRA to reject the application or impose conditions if the FCA has concerns about money laundering or terrorist financing. The PRA (or the FCA, if the company is only a distributor) has 60 working days to make a decision following its acknowledgment of the complete application. The duration of this period may be stopped by the PRA (or the FCA, if the company is only a distributor) once, to request further information, for a maximum of 20 days (30 days for non-EU applicants). Although the regulators may make further information requests, this does not "stop the clock", meaning that the regulators have a maximum of 80 working days to consider a complete application from an EU applicant (90 for a non-EU applicant). The regulators may only object to a particular acquisition on the basis of certain specified "assessment criteria" relating to the reputation and financial soundness of the acquirer, the reputation and experience of those who will direct the regulated business, compliance with prudential requirements and any suspicion of money laundering or terrorist financing. In addition to these requirements, the relevant firm itself is obliged to notify its regulator(s) if it is aware of the proposed acquisition, and may be subject to regulatory enforcement action if it fails to do so.

Intervention and Enforcement

The PRA and the FCA have extensive powers to intervene in the affairs of an authorized person, culminating in the ultimate sanction of the removal of authorization to carry on a regulated activity. The FSMA imposes statutory obligations on the PRA and the FCA to monitor compliance with the requirements imposed by the FSMA, and to enforce the provisions of the FSMA related rules made by the PRA and FCA. The PRA and the FCA have the power, among other things, to enforce and take disciplinary measures in respect of breaches of rules made by them. The FCA also has the power to prosecute criminal offences arising under the FSMA, and to prosecute insider dealing under Part V of the Criminal Justice Act of 1993, and breaches of money laundering regulations. The FCA's stated policy is to pursue criminal prosecution in all appropriate cases.

Passporting

European Union directives and treaties allow Endurance U.K. to conduct business in European Union states other than the United Kingdom in compliance with the scope of its U.K. permissions without the necessity of additional licensing or authorization in other European Union jurisdictions. This ability to operate in other jurisdictions of the European Union on the basis of home state authorization and supervision is sometimes referred to as passporting. Insurers may operate outside their home member state either on a services basis or on an establishment basis. Operating on a services basis means that a company can conduct permitted business in the host state without having a physical presence there, while operating on an establishment basis means that the company has a branch or physical presence in the host state.

In both cases, the prudential regulation of the company remains the responsibility of its home state regulator, and not of local regulatory authorities, although the company nonetheless may have to comply with certain local rules reserved to the "host state" (the state into which the services are being provided or in which the branch is being established). In addition to European Union member states, Norway, Iceland and Liechtenstein (members of the broader European Economic Area) are jurisdictions in which this passporting framework applies.

U.S. Regulation

The Company's U.S. operating subsidiaries are domiciled in the State of Delaware, with the exception of American Agri-Business, which is domiciled in the State of Texas. In addition, one of the Company's U.S. operating subsidiaries, Endurance Risk Solutions, is commercially domiciled in the State of California.

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Much of state insurance regulation follows model statutes or regulations developed or amended by the National Association of Insurance Commissioners ("NAIC") that is comprised of the insurance commissioners of each U.S. jurisdiction. The NAIC re-examines and amends existing model laws and regulations (including holding company regulations) as it deems appropriate in addition to determining whether new ones are needed.

NAIC model laws and regulations are merely recommended laws and regulations relating to the regulation of insurance in the U.S. that become effective only when enacted into law or promulgated as a regulation in a state, often with state-specific changes. Some model laws and regulations have been enacted in very few states and some model laws and regulations have been enacted in all states in some form or another.

Insurance Holding Company Regulation of Endurance Holdings

Endurance Holdings, Endurance U.S. Holdings Corp. and the Company's U.S. operating subsidiaries are subject to the insurance holding company laws of the States of Delaware, Texas and California, the states in which the Company's U.S. operating subsidiaries are organized and domiciled or commercially domiciled. These laws generally require, among other things, each insurance company directly or indirectly owned by the holding company to register with the insurance regulator in the insurance company's state of domicile and state, if any, in which it is commercially domiciled and to furnish annually financial and other information about the operations of companies within the holding company system. Generally, all material transactions among companies in the holding company system involving the Company's U.S. operating subsidiaries, including sales, loans, reinsurance agreements, service agreements, dividend payments and certain transactions within the insurance holding company system must be fair and, if material or of a specified category, require prior notice and approval or non-disapproval by the insurance regulator of the state in which the involved U.S. operating subsidiary is domiciled and commercially domiciled.

The NAIC, as part of its solvency modernization initiative, has engaged in a concerted effort to strengthen the ability of U.S. state insurance regulators to monitor U.S. insurance holding company groups. The NAIC’s solvency modernization initiative, among other things, aims to expand the authority and focus of state insurance regulators to encompass U.S. insurance holding company systems at the group level. The holding company reform efforts at the NAIC culminated in December 2010 in the adoption of significant amendments to the NAIC's Insurance Holding Company System Regulatory Act (the "Model Holding Company Act") and its Insurance Holding Company System Model Regulation (the "Model Holding Company Regulation"). Among other things, the revised Model Holding Company Act and Model Holding Company Regulation explicitly address "enterprise" risk – the risk that an activity, circumstance, event or series of events involving one or more affiliates of an insurer that, if not remedied promptly, is likely to have a material adverse effect upon the financial condition or liquidity of the insurer or its insurance holding company system as a whole – and require annual reporting of potential enterprise risk as well as access to information to allow the state insurance regulator to assess such risk. In addition, the Model Holding Company Act amendments include a requirement to the effect that any person divesting control over an insurer must provide 30 days' notice to the regulator and the insurer (with an exception for cases where a Form A is being filed). The amendments direct the domestic state insurance regulator to determine those instances in which a divesting person will be required to file for and obtain approval of the transaction.

In June 2011, Texas became one of the first states to adopt the principal components of the amended Model Holding Company Act. The related amendments to the Texas insurance holding company act depart somewhat from the Model Holding Company Act in including a phase-in of the enterprise risk annual reporting requirement based on the volume of total direct or assumed annual premiums written by the insurer during the preceding 12-month period. Ultimate controlling persons of insurers with direct written and assumed premiums of more than $1 billion but less than $5 billion during the preceding 12-month period were required to file their first enterprise risk report with the first annual registration statement that became due after January 1, 2014. In 2016, the Texas Department of Insurance amended its insurance regulations that address the information to be provided in connection with the proposed acquisition of control of a Texas domestic insurance company. The amendments were adopted to maintain the confidentiality of enterprise risk information that is not required by the acquisition statutes as part of the acquisition process.

In January 2013, California adopted the principal components of the amended Model Holding Company Act. Under the California amendments, the enterprise risk report is to be filed with the lead state commissioner, when applicable, of the insurance holding company system as determined by the procedures within the Financial Analysis Handbook adopted by the NAIC, and if the California Commissioner of Insurance is not the lead state commissioner of the insurance holding company system, a copy is required to be provided to the California Commissioner of Insurance if the insurance holding company system has an insurer domiciled in the State of California. The first annual enterprise risk report was required to be filed with the insurer's first registration statement filed after July 1, 2013.

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In August 2014, Delaware adopted the principal components of the amended Model Holding Company Act. Under the Delaware amendments, the ultimate controlling person of insurers subject to registration is required to file an annual enterprise risk report with the lead state commissioner, when applicable, of the insurance holding company system as determined by the procedures within the Financial Analysis Handbook adopted by the NAIC. The first enterprise risk report was required 60 days following the effective date of the Delaware amendments.

In December 2014, the NAIC adopted additional revisions to the Model Holding Company Act, updating the model to clarify the group-wide supervisor for a defined class of internationally active insurance groups. The revisions also outline the process for determining the lead state for domestic insurance groups, outline the activities the commissioner may engage in as group-wide supervisor and extend confidentiality protections to cover information received in the course of group-wide supervision. The 2014 revisions to the Model Holding Company Act have been adopted in Delaware and California.

In 2012, the NAIC adopted the Risk Management and Own Risk and Solvency Assessment ("ORSA") Model Act (the "ORSA Model Act"), which requires domestic insurers to maintain a risk management framework and establishes a legal requirement for domestic insurers to conduct an ORSA in accordance with the NAIC's ORSA Guidance Manual. The ORSA Model Act provides that domestic insurers, or their insurance group, must regularly conduct an ORSA consistent with a process comparable to the ORSA Guidance Manual process. The ORSA Model Act also provides that, no more than once a year, an insurer's domiciliary regulator may request that an insurer submit an ORSA summary report, or any combination of reports that together contain the information described in the ORSA Guidance Manual, with respect to the insurer and/or the insurance group of which it is a member. If and when the ORSA Model Act is adopted by a particular state, the ORSA Model Act would impose more extensive filing requirements on parents and other affiliates of domestic insurers. Effective January 1, 2015, each of California and Delaware adopted the ORSA Model Act. In May 2015, Texas adopted its version of the ORSA Model Act, which became effective immediately. In 2015, the Company filed an ORSA with the Delaware Department of Insurance as an insurance group including Endurance Assurance, Endurance American, Endurance American Specialty, Endurance Risk Solutions and American Agri-Business, all of its U.S. operating insurance companies.

Additionally, in response to the growing threat of cyber-attacks in the insurance industry, certain jurisdictions have begun to consider new cybersecurity measures, including the adoption of cybersecurity regulations which, among other things, would require insurance companies to establish and maintain a cybersecurity program and implement and maintain cybersecurity policies and procedures. Notably, the NAIC has begun, over the past year, to draft a new Insurance Data Security Model Law (the "Cyber Model Law"), the drafting process for which is still on-going.

Changes of Control

Before a person can acquire control of a U.S. domestic insurer (or reinsurer), prior written approval must be obtained from the insurance commissioner of the state where the insurer (or reinsurer) is domiciled and, when applicable, commercially domiciled, or the acquiror must make a disclaimer of control filing with the insurance department of such state(s) and obtain approval thereon. Prior to granting approval of an application to acquire control of a domestic insurer (or reinsurer), the domiciliary (or commercial domiciliary) state insurance commissioner will consider such factors as the financial strength of the proposed acquiror, the integrity and management of the acquiror's board of directors and executive officers, the acquiror's plans for the future operations of the domestic insurer and any anti-competitive results that may arise from the consummation of the acquisition of control.

Generally, state insurance statutes provide that control over a domestic insurer is presumed to exist if any person, directly or indirectly, owns, controls, holds with the power to vote, or holds proxies representing, ten percent or more of the voting securities of the domestic insurer. This statutory presumption of control may be rebutted by a showing that control does not exist in fact. The state regulators, however, may find that "control" exists in circumstances in which a person owns or controls less than ten percent of voting securities. Because a person acquiring ten percent or more of Endurance Holdings' ordinary shares would indirectly acquire the same percentage of common stock of Endurance Holdings' U.S. operating subsidiaries, the U.S. insurance change of control laws would likely apply to such a transaction. These laws may discourage potential acquisition proposals and may delay, deter or prevent a change of control of Endurance Holdings, including through transactions, and in particular unsolicited transactions, that some or all of the shareholders of Endurance Holdings might consider to be desirable.

In addition, many state insurance laws require prior notification of state insurance regulators of a change in control of a non-domiciliary insurance company doing business in that state. While these pre-notification statutes do not authorize the state insurance regulators to disapprove the change in control, they authorize regulatory action in the affected state if particular conditions exist such as undue market concentration. Any future transactions that would constitute a change in control of our insurance subsidiaries may require prior notification in those states that have adopted pre-acquisition notification laws.

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The Model Holding Company Act amendments adopted by Texas alter the method by which a person can "disclaim" control over an insurer where a presumption of control exists. Historically under the Model Holding Company Act, a disclaimer of control was considered effective when filed; no affirmative approval from the state insurance regulator was required, and the regulator could disapprove a disclaimer only upon a notice and hearing. Under the amendments to the Model Holding Company Act adopted in Texas, a disclaimer is deemed effective after 60 days unless disallowed prior to that time, and disallowance does not require a notice or hearing. The Texas amendments expressly provide, however, that the Texas Commissioner of Insurance (the "Texas Commissioner") may disallow a disclaimer at any time if the Texas Commissioner determines that the disclaimer is incomplete or inaccurate or is no longer accurate.

Under the 2011 amendments to the Texas insurance holding company act, a "divesting person" must have the "divestiture" approved by the Texas Commissioner. Unlike the Model Holding Company Act amendments, which require the confidential notice of proposed divestiture at least 30 days prior to the cessation of control, the Texas amendments require a divesting person to file a notice of its proposed divestiture with the Texas Commissioner at least 60 days before the cessation of control. In considering whether to approve or deny the divestiture, the Texas Commissioner will consider whether it may jeopardize financial stability of the insurer or prejudice the interest of the insurer’s policyholders or other claimants.

Similar to the Model Holding Company Act amendments, under the amendments adopted in California and Delaware, any controlling person of a domestic (or commercially domiciled) insurer must file a confidential notice of proposed divestiture at least 30 days prior to the cessation of control. The California and Delaware amendments provide that the California Commissioner of Insurance (the "California Commissioner") and the Delaware Commissioner of Insurance, respectively, will determine those instances in which the party or parties seeking to divest a controlling interest in an insurer will be required to file for and obtain approval of the transaction. Under the California amendments, the California Commissioner may disallow a disclaimer at any time if the California Commissioner determines that the disclaimer is incomplete or inaccurate. Under the amendments to the Model Holding Company Act adopted in Delaware, a disclaimer is deemed effective after 30 days unless disallowed prior to that time, and, in the event of disallowance, the disclaiming party may request a hearing.

State Insurance Regulation of the Company's U.S. Operating Subsidiaries

State insurance authorities have broad regulatory powers with respect to various aspects of the business of the Company's U.S. operating subsidiaries including: licensing to transact business, admittance of assets to statutory surplus, regulating unfair trade and claims practices, establishing reserve requirements and solvency standards (including risk-based capital standards), establishing credit for reinsurance requirements, approval of policy forms and dates, and regulating investments, dividends and transactions between an insurer and its affiliates. With respect to direct insurance business, states may also regulate rates and forms used by insurers admitted to transact business within a given state jurisdiction and the marketplace conduct of such insurers. With respect to reinsurance, other than bulk reinsurance arrangements, the terms and conditions of reinsurance agreements between unaffiliated parties generally are not subject to regulation by any U.S. state insurance department with respect to rates or policy terms.

State insurance laws and regulations require each of the Company's U.S. operating subsidiaries to file financial statements with insurance departments everywhere it is licensed, authorized or accredited to conduct insurance business and the operations of the Company's U.S. operating subsidiaries are subject to examination by those departments at any time. The Company's U.S. operating subsidiaries prepare statutory financial statements in accordance with statutory accounting practices and procedures prescribed or permitted by these departments. State insurance departments also conduct periodic examinations of the books and records, financial reporting, policy filings and market conduct of insurance companies domiciled or authorized to transact business in their states, generally once every three to five years. Examinations are generally carried out in cooperation with the insurance departments of other states under guidelines promulgated by the NAIC. State and federal insurance and securities regulatory authorities and other state law enforcement agencies and attorneys general also occasionally make inquiries and conduct examinations or investigations regarding the compliance of our companies, as well as other companies in our industry, with insurance, securities and other laws.

In general, such state regulation is for the protection of policyholders rather than shareholders. Under Delaware, Texas and California insurance laws, the Company's U.S. operating subsidiaries may only pay dividends to their respective parent companies out of earned surplus. In Delaware, Texas and California, earned surplus is defined as an amount equal to the unassigned funds of an insurer as set forth in the most recent annual statement of the insurer submitted to the applicable state insurance regulator, including all or part of the surplus arising from unrealized capital gains or revaluation of assets.

In addition, the Company's U.S. operating subsidiaries may not, without the approval or non-disapproval of the applicable domestic (or commercially domestic) state insurance regulator, declare or pay any dividend (referred to as an extraordinary dividend), together with all dividends declared or distributed by it within the preceding twelve months, if the dividend exceeds the greater of:

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1. ten percent of its policyholders surplus as of the 31^st day of December of the preceding year; or

2. the statutory net income (under Texas and California insurance laws), not including realized capital gains (under Delaware insurance laws) for the 12-month period ending, for the preceding calendar year (the 31^st day of December next preceding).

Any dividend paid by any one of the Company's U.S. operating subsidiaries must first be paid to its immediate parent company. If the parent company is also an insurer, as is the case with Endurance American, Endurance American Specialty and Endurance Risk Solutions, the parent company or companies must also meet their own dividend eligibility requirements set forth above in order to pass along any dividends received from subsidiary insurance companies.

The dividend limitations imposed by Delaware, Texas and California insurance laws are based on the statutory financial results of the Company’s U.S. operating subsidiaries determined by using statutory accounting practices which differ in certain respects from accounting principles used in financial statements prepared in conformity with U.S. GAAP. The significant differences relate to deferred acquisition expenses, deferred income taxes, required investment reserves, reserve calculation assumptions and surplus notes. At December 31, 2016, of the Company's U.S. operating subsidiaries, only American Agri-Business Insurance Company ("American Agri-Business") had earned surplus, and therefore, only American Agri-Business could declare or distribute dividends in 2017 without prior regulatory approval.

Developments at the Federal Level

The U.S. federal government's oversight of the insurance industry was expanded under the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act"). Prior to the enactment of the Dodd-Frank Act in July 2010, the U.S. federal government's regulation of the insurance industry was essentially limited to certain insurance products, such as flood insurance, multi-peril crop insurance and reinsurance of losses from terrorism. As part of the overall federal financial regulatory reform package contained in the Dodd-Frank Act, Congress has legislated reforms in the reinsurance and surplus lines sectors.

Under reinsurance credit rules established under the Dodd-Frank Act, a U.S. ceding insurer need not satisfy the reinsurance credit rules of any nondomestic state if the following two conditions are met: 1) the ceding insurer's domestic state is NAIC-accredited or has financial solvency requirements substantially similar to the requirements necessary for NAIC accreditation, and 2) the ceding insurer's domestic state recognizes credit for reinsurance for its ceded risk.

The Dodd-Frank Act also established the Federal Insurance Office (the "FIO") in the U.S. Department of the Treasury and vested the FIO with the authority to monitor all aspects of the insurance sector, monitor the extent to which traditionally underserved communities and consumers have access to affordable non-health insurance products, and to represent the United States on prudential aspects of international insurance matters, including at the International Association of Insurance Supervisors (the "IAIS"). In addition, the FIO serves as an advisory member of the Financial Stability Oversight Council, assists the Secretary of the U.S. Department of the Treasury with administration of the Terrorism Risk Insurance Program, and advises the Secretary of the U. S. Department of the Treasury on important national and international insurance matters. In addition, the FIO has the ability to recommend to the Financial Stability Oversight Council the designation of an insurer as "systemically significant" and therefore subject to regulation by the Federal Reserve as a bank holding company.

In limited circumstances, the FIO can declare a state insurance law or regulation "preempted," but this can be done only after extensive consultation with state insurance regulators, the Office of the U.S. Trade Representative and key insurance industry players (in trade associations representing insurers and intermediaries). Additionally, the FIO must publish a notice regarding the basis for the preemption in the Federal Register, allowing a reasonable opportunity for comments. The FIO cannot preempt state antitrust laws governing rate making, underwriting, sales practices or coverage requirements. No later than September 30^th of each year, the FIO must submit an annual report to Congress explaining any use of the preemption authority during the prior year.

In addition, a number of federal laws affect and apply to the insurance industry, including various privacy laws and the economic and trade sanctions implemented by the Office of Foreign Assets Control ("OFAC") of the U.S. Department of the Treasury. OFAC maintains and enforces economic sanctions against certain foreign countries and groups and prohibits U.S. persons from engaging in certain transactions with certain persons or entities. OFAC has imposed civil penalties on persons, including insurance and reinsurance companies, arising from violations of its economic sanctions program.

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On December 12, 2013, the FIO submitted a report to Congress as required under the Dodd-Frank Act on improving U.S. insurance regulation (the "Modernization Report"). The Modernization Report concludes that the federal government should continue its involvement in insurance regulation, emphasizing the need for improved uniformity and efficiency in the U.S. insurance regulatory system, but that the current "hybrid" state and federal regulatory system should remain in place. The Modernization Report also recommends certain steps that should be taken to modernize and improve the U.S. insurance regulatory system through a combination of actions to be taken by the state and federal governments. Many of the recommendations in the Modernization Report are subject to NAIC initiatives. As the FIO does not have regulatory authority, the recommendations in its report could be viewed as advisory in nature. Most suggestions for U.S. federal standards and involvement in insurance regulation would require U.S. Congressional action. In its 2016 Annual Report on the Insurance Industry released on September 30, 2016, the FIO continued to highlight perceived shortcomings in the state-based insurance regulatory system, advocate for improved uniformity across a number of insurance regulatory issues and recommend increased federal involvement in certain areas of insurance regulation.

On November 20, 2015, the FIO and the Office of the U.S. Trade Representative announced their intention to exercise their authority under the Dodd-Frank Act to negotiate a "covered agreement" with the European Union. After a number of private negotiating sessions, on January 13, 2017, the U.S. Department of Treasury and the Office of the U.S. Trade Representative notified Congress that they had completed negotiations with the European Union for the covered agreement, which addressed reinsurance, insurance group supervision and the exchange of information between insurance supervisors. Significantly for state insurance regulation, the covered agreement contemplates that in the U.S. it will be implemented by the states by incorporating its standards into state law, with the FIO authorized to preempt offending state law if the law of a particular state is not amended to incorporate such standards and disadvantages a European Union insurer.

With respect to reinsurance, under the covered agreement, both the U.S. and the European Union agreed that their supervisory authorities will not impose reinsurance collateral requirements or "local presence" requirements on a reinsurer domiciled in (or with a head office in) the other's territory that are less favorable than collateral or local presence requirements applied to a domestic reinsurer. However, the collateral or local presence provisions apply only if the insurer or reinsurer satisfies certain conditions and standards, including among others, minimum capital and risk-based capital, confirmation of financial condition by the reinsurer's domestic regulator and claims payment standards. As discussed above, if implemented, the covered agreement could preempt the credit for reinsurance laws in jurisdictions that have not amended their credit for reinsurance laws to allow reduced collateral requirements for certified reinsurers.

As for group supervision, the covered agreement seeks to clarify that U.S. and European Union insurers operating in a jurisdiction that is a party to the covered agreement will be subject to worldwide prudential insurance group oversight only by the supervisors in their home jurisdiction.

It is unclear whether the U.S. Congress or the Trump administration will support the covered agreement (although Congress does not have the ability to veto the covered agreement, it retains the authority to enact legislation that could block the covered agreement from taking effect). In addition, the European Council and the European Parliament must each adopt decisions approving the covered agreement before it can become effective.

Any additional regulations established as a result of the Dodd-Frank Act or actions in response to the Modernization Report could increase costs or compliance or lead to disciplinary action. In addition, legislation has been introduced from time to time that, if enacted, could result in the federal government assuming a more direct role in the regulation of the insurance industry, including federal licensing in addition to or in lieu of state licensing and requiring reinsurance for natural catastrophes. We are unable to predict whether any legislation will be enacted or any regulations will be adopted, or the effect any such developments could have on our business, financial condition or results of operations.

Risk-Based Capital Regulations

The insurance laws of Delaware and Texas require that insurers report their risk-based capital (“RBC”) based on a formula calculated by applying factors to various asset, premium and reserve items. The formula takes into account the risk characteristics of the insurer, including asset risk, insurance risk, interest rate risk and business risk. The state insurance departments of Delaware and Texas use the formula only as an early warning regulatory tool to identify possibly inadequately capitalized insurers for purposes of initiating regulatory action, and not as a means to rank insurers generally. Insurance laws impose broad confidentiality requirements on those engaged in the insurance business (including insurers, agents, brokers and others) and on the state insurance departments as to the use and publication of RBC data. The insurance departments of Delaware and Texas have explicit regulatory authority to require various actions by, or take various actions against, insurers whose total adjusted capital does not exceed certain RBC levels.

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IRIS Tests

The NAIC has developed a set of financial relationships or tests known as the Insurance Regulatory Information System ("IRIS") to assist state regulators in monitoring the financial condition of U.S. insurance companies and identifying companies requiring special attention or action. For IRIS ratio purposes, our U.S. operating subsidiaries submit data to the NAIC on an annual basis. The NAIC analyzes this data using prescribed financial data ratios. A ratio falling outside the prescribed "usual range" is not considered a failing result. Rather, unusual values are viewed as part of the regulatory early monitoring system. In many cases, it is not unusual for financially sound companies to have one or more ratios that fall outside the usual range.

Regulators typically investigate or monitor an insurance company if its IRIS ratios fall outside the prescribed usual range for four or more of the ratios, but each state has the right to inquire about any ratios falling outside the usual range. The inquiries made by state insurance regulators into an insurance company's IRIS ratios can take various forms.

Statutory Accounting Practices

Statutory accounting practices, or "SAP," are a basis of accounting developed to assist U.S. insurance regulators in monitoring and regulating the solvency of insurance companies. It is primarily concerned with measuring an insurer's surplus to policyholders. Accordingly, statutory accounting focuses on valuing assets and liabilities of insurers at financial reporting dates in accordance with appropriate insurance law and regulatory provisions applicable in each insurer’s domiciliary state.

U.S. GAAP concerns an insurer's solvency, but it also concerns other financial measurements, such as income and cash flows. Accordingly, U.S. GAAP gives more consideration to appropriate matching of revenue and expenses and accounting for management's stewardship of assets than does SAP. As a direct result, different assets and liabilities and different amounts of assets and liabilities will be reflected in financial statements prepared in accordance with U.S. GAAP as opposed to SAP.

Statutory accounting practices established by the NAIC and adopted, in part, by the Delaware and Texas insurance regulators, determine, among other things, the amount of statutory surplus and statutory net income of Endurance Holdings' U.S. insurance company subsidiaries and thus determine, in part, the amount of funds they have available to pay dividends to their respective parent companies.

Effective with the annual reporting period ended December 31, 2010, the NAIC adopted revisions to the Annual Financial Reporting, or the Model Audit Rule, related to auditor independence, corporate governance and internal control over financial reporting. The adopted revisions required that we file reports with state insurance regulators regarding our assessment of internal control over financial reporting.

Insurance Guaranty Associations

Each state has insurance guaranty association laws that require insurance companies doing business in the state to participate in various types of guaranty associations or other similar arrangements. The laws are designed to protect policyholders from losses under insurance policies issued by insurance companies that become impaired or insolvent. Typically, these associations levy assessments, up to prescribed limits, on member insurers on the basis of the member insurer’s proportionate share of the business in the relevant jurisdiction in the lines of business in which the impaired or insolvent insurer is engaged. Some jurisdictions permit members insurers to recover assessments that they paid through full or partial premium tax offsets, usually over a period of years.

International Developments

The IAIS has proposed a common framework for the supervision of Internationally Active Insurance Groups ("IAIGs"), which is scheduled to be effective in 2019. Under the proposed framework, IAIGs would be supervised on a group-wide basis across national boundaries and each IAIG would be required to conduct its own risk and solvency assessment to monitor and manage its overall solvency. The IAIS is also developing a risk-based global Insurance Capital Standard ("ICS"), which would apply to IAIGs. In addition, the Financial Stability Board is pursuing enhanced group supervisory and capital requirements for Global Systemically Important Insurers ("G-SIIs"). Finally, Insurance Core Principles ("ICPs"), another set of supervisory requirements under development by the IAIS, would apply to all insurers and insurance groups, regardless of size or systemic importance. These frameworks may influence applicable capital requirements in the jurisdictions in which we operate in the future, potentially leading to an increase in our capital requirements.

Additionally, on June 23, 2016, the United Kingdom held a referendum in which a majority voted for the United Kingdom’s withdrawal from the European Union. As a result of this vote, negotiations are expected to commence to determine the terms of the United Kingdom’s withdrawal from the European Union, as well as its relationship with the European Union going forward (“Brexit”). Brexit has caused and may continue to cause significant volatility in global stock markets and

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currency exchange rates, which could increase the volatility of, or reduce, the Company’s results in particular periods or over time. Higher levels of political and market turmoil could persist until some clarity emerges around the United Kingdom’s exit process from the European Union and the impact of Brexit on the economies of the other European countries. The geopolitical impacts of Brexit are unknown and may adversely affect long-term European and global economic growth and forecasts, which could adversely impact the demand for the Company’s products. Brexit could also lead to legal uncertainty and differing laws and regulations between the United Kingdom and the European Union. These uncertainties could affect the operations, strategic position or results of brokers, insurers or reinsurers with whom the Company does business. Any of these potential effects of Brexit, and others we cannot anticipate, could adversely affect our business, results of operations or financial condition.

Operations of Endurance U.K. and Endurance Bermuda

Endurance U.K. and Endurance Bermuda are not admitted to do business in any state in the United States. Insurance laws of each state of the United States and of many other countries generally restrict or prohibit the sale of insurance and reinsurance within their jurisdictions by non-admitted alien insurers and reinsurers such as Endurance U.K. and Endurance Bermuda.

In addition to the regulatory requirements imposed by the jurisdictions in which they are licensed, reinsurers' business operations are affected by regulatory requirements in various states of the United States governing "credit for reinsurance" that are imposed on ceding companies in these states. In general, a ceding company that obtains reinsurance from a reinsurer that is licensed, accredited or approved by the state of domicile of the ceding company is permitted to reflect in the ceding company's statutory financial statements a credit in an aggregate amount equal to the liability for unearned premiums (which are that portion of written premiums which applies to the remaining portion of the policy period) and loss reserves and loss expense reserves ceded to the reinsurer. In accordance with the Dodd-Frank Act, only a ceding company's state of domicile can dictate credit for reinsurance requirements. Other states in which a ceding company is licensed are no longer able to impose their own credit for reinsurance laws on ceding companies domiciled in other states.

As stated above, Endurance U.K. and Endurance Bermuda are not licensed, accredited or approved in any state in the United States. The great majority of states, however, permit a credit to statutory surplus resulting from reinsurance obtained from a non-licensed or non-accredited reinsurer to be offset to the extent that the reinsurer provides a letter of credit or other acceptable security arrangement. A few states do not allow credit for reinsurance ceded to non-licensed or non-accredited reinsurers except in certain limited circumstances and others impose additional requirements that make it difficult to become accredited.

Effective January 1, 2015, the NAIC placed Bermuda, France, the United Kingdom, Germany, Japan, Ireland and Switzerland on the NAIC List of Qualified Jurisdictions. These designations are part of continuing efforts to implement a "certified reinsurer" concept that allows highly rated reinsurers, domiciled in qualified jurisdictions, to take advantage of reduced reinsurance collateral requirements under the NAIC's revised Credit for Reinsurance Model Law and Regulations (the "Certified Reinsurer Provisions"). Reinsurers, including Endurance U.K. and Endurance Bermuda, domiciled in any of the seven jurisdictions are eligible to apply to be certified for reduced reinsurance collateral requirements in those U.S. states that have adopted the revised Credit for Reinsurance Model Law and Regulations. Thirty-five U.S. states have adopted the revised Credit for Reinsurance Model Law and Regulations or some variation thereof. As a result, a non-U.S. reinsurer that has qualified as a certified reinsurer in one of these states is still obligated to post 100% collateral with respect to business assumed from U.S. ceding companies domiciled in the remaining fifteen U.S. jurisdictions. Importantly, the covered agreement with the European Union discussed below, if implemented, could preempt the credit for reinsurance laws in these fifteen remaining jurisdictions with respect to business assumed from an insurer domiciled in any U.S. state.

In 2008, prior to the adoption of Certified Reinsurer Provisions in the NAIC Credit for Reinsurance Model Law and Regulations, the Florida insurance regulator adopted similar regulations permitting lower collateral requirements for "eligible" non-U.S.-based reinsurers engaged in the property and casualty insurance business that meet specified standards. Endurance Bermuda was granted eligible reinsurer status by the Florida Office of Insurance Regulation in 2012, thereby permitting Florida domiciled ceding companies to take 100% credit in their financial statements for reinsurance provided by Endurance Bermuda. In 2015, Endurance Bermuda established multi-beneficiary reinsurance trusts ("Reinsurance Trusts") domiciled in Delaware as a means of providing statutory credit to Endurance Bermuda's cedants, including those cedants that were clients of Montpelier and had previously obtained statutory credit through Montpelier's Reinsurance Trusts established in New York. In November 2015, the New York Department of Financial Services approved the transfer to the Endurance Bermuda Reinsurance Trusts of all assets in excess of the statutory required minimum amounts held in the Montpelier Reinsurance Trusts.

Beginning in 2015, Endurance Bermuda applied for certified reinsurer status in certain states that adopted the Certified Reinsurer Provisions. In certain states that have not yet adopted the Certified Reinsurer Provisions or require additional qualifications, Endurance Bermuda has applied for or obtained the requisite qualification necessary to use the Reinsurance

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Trusts as a means to allow cedants to take full credit in their financial statements for the reinsurance provided by Endurance Bermuda.

We do not believe that Endurance U.K. and Endurance Bermuda are in violation of insurance laws of any jurisdiction in the United States or in any other applicable jurisdiction. There can be no assurance however, that inquiries or challenges to Endurance U.K.'s or Endurance Bermuda's insurance or reinsurance activities will not be raised in the future.

Registered Investment Advisor

As a result in a change in its business plans, during 2015, BCML voluntarily terminated its status as a registered investment advisor under the Investment Act of 1940.

Switzerland

In 2008, Endurance Bermuda established a branch in Zurich, Switzerland named Endurance Specialty Insurance Ltd. Pembroke (Bermuda) Zurich Branch. In 2015, Endurance U.K. established a branch in Zurich named Endurance Worldwide Insurance Limited, London, Zurich Branch. Swiss law does not impose additional regulation upon a Swiss branch of a foreign reinsurer.

Singapore

Endurance Specialty Insurance Ltd. Singapore Branch (the "Singapore Branch") is registered under the Singapore Insurance Act as a general insurer as a branch of Endurance Bermuda in Singapore to transact general reinsurance domestically and internationally. The Singapore Branch is regulated by the Monetary Authority of Singapore pursuant to the Insurance Act. The Singapore Branch is also registered with the Accounting and Corporate Regulatory Authority ("ACRA") as a foreign company in Singapore and is regulated under the Companies Act. The Singapore Branch has received approval under a tax incentive scheme set out in the Income Tax Act (and the relevant regulations) which provides for a concessionary corporate tax rate of 10% to be applied on its income from underwriting offshore risks for a period of 10 years from April 2010 to March 2020. During 2015, the Monetary Authority of Singapore conducted an inspection of the Singapore Branch with no material findings reported.

AVAILABLE INFORMATION

General information about us, including our Corporate Governance Guidelines, Code of Business Conduct and Ethics and the charters for the Audit, Compensation, Finance, Nominating and Corporate Governance and Risk Committees of our Board of Directors, can be found on our website at www.endurance.bm. Our Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, as well as any amendments and exhibits to those reports, are available free of charge through our website as soon as reasonably practicable after we file them with, or furnish them to, the United States Securities and Exchange Commission (the "SEC"). The public may read and copy any materials we file with the SEC at the SEC's Public Reference Room at 100 F Street, NE, Washington, DC 20549. The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. The SEC maintains an Internet site that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC (including Endurance Holdings) and the address of that site is www.sec.gov. Any of the above referenced documents can also be obtained in print, free of charge, by contacting the Secretary at Endurance Specialty Holdings Ltd., Waterloo House, 100 Pitts Bay Road, Pembroke HM08, Bermuda. Information on our website is not incorporated into this Form 10-K or our other securities filings and is not a part of these filings.

Item 1A. Risk Factors

Before investing in any of our securities, you should carefully consider the following risk factors and all other information set forth in this Form 10-K. These risks could materially affect our business, results of operations or financial condition and could cause the trading price of our securities to decline. You could lose all or part of your investment. The headings used in this section are solely to aid the reader as to general categories of risks related to investing in the Company. Many of the risk factors listed apply to more than one category or to the Company generally. Accordingly, the headings used in this section should not be construed as limiting in any manner the general applicability of any of the risk factors included in this section.

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UNDERWRITING RISKS

As a property, marine/energy and aviation, agriculture, catastrophe and specialty insurer and reinsurer, we are particularly vulnerable to losses from catastrophes.

Our property, marine/energy and aviation, agriculture, catastrophe and specialty insurance and reinsurance lines expose us to claims arising out of catastrophes. Catastrophes can be caused by various unpredictable events, including earthquakes, hurricanes, hailstorms, droughts, severe weather, floods, fires, tornadoes, volcano eruptions, explosions and other natural or man-made disasters. Many scientists believe that the earth's atmospheric and oceanic temperatures are increasing and that, in recent years, changing climate conditions have increased the unpredictability, severity and frequency of natural disasters in certain parts of the world.

The global geographic distribution of our business subjects us to catastrophe exposure for natural events occurring in a number of areas throughout the world, including, but not limited to, windstorms in the United Kingdom and continental Europe, hurricanes in Florida, the Gulf Coast and the Atlantic coast regions of the United States, typhoons and earthquakes in Japan, New Zealand, Australia and other parts of Southeast Asia, earthquakes in California and the Pacific Northwest and New Madrid region of the United States and drought, hail, tornado and flooding in the Midwestern United States. From time to time, we may have greater exposures in one or more of these geographic areas than our overall share of the worldwide market might suggest. Accordingly, when and if catastrophes occur in these areas, we may experience relatively more severe negative results from such events than our competitors. In particular, the Company has historically had a relatively large percentage of its coverage exposures concentrated in the Northeast and mid-Atlantic states and the states of Texas, California and Florida, continental Europe, and Japan.

In addition, changing climate conditions, primarily rising global temperatures, may be increasing, or may in the future increase the frequency and severity of natural catastrophes, including weather events, and may create new types of catastrophe losses. We expect that increases in the values and concentrations of insured property will increase the severity of such occurrences in the future. In the event that we experience catastrophe losses, there is a possibility that our premiums will be inadequate to cover these risks. In addition, because accounting regulations do not permit insurers and reinsurers to reserve for such catastrophic events until they occur, claims from catastrophic events could cause substantial volatility in our financial results for any fiscal quarter or year and could have a material adverse effect on our financial condition and results of operations. Furthermore, the estimation of reserves related to catastrophic events can be affected by the inability to access portions of the affected areas, the complexity of factors contributing to the losses, legal and regulatory uncertainties and the nature of the information available to establish the reserves. Complex factors include but are not limited to: determining whether damage was caused by flooding versus wind; evaluating general liability and pollution exposures; estimating additional living expenses; the impact of demand surge; infrastructure disruption; fraud; the effect of mold damage; business interruption costs; and reinsurance collectability. The timing of a catastrophe's occurrence, such as at or near the end of a reporting period, can also affect the information available to us in estimating reserves for that reporting period. The estimates related to catastrophes are adjusted as actual claims emerge and additional information becomes available. Our ability to write new business also could be adversely impacted. Although we attempt to manage our exposure to such events through the use of underwriting controls and the purchase of third-party reinsurance, catastrophic events are inherently unpredictable and the actual nature of such events when they occur could be more frequent or severe than contemplated in our pricing and risk management expectations. As a result, the occurrence of one or more catastrophic events could have a material adverse effect on our results of operations or financial condition.

As a property and casualty insurer and reinsurer, we could face losses from war, terrorism and political unrest.

We may have substantial exposure to losses resulting from acts of war, acts of terrorism and political instability. These risks are inherently unpredictable, although recent events may lead to increased frequency and severity. It is difficult to predict their occurrence with statistical certainty or to estimate the amount of loss an occurrence will generate. Accordingly, it is possible that our loss reserves will be inadequate to cover these risks. We closely monitor the amount and types of coverage we provide for terrorism risk under insurance policies and reinsurance treaties. We often seek to exclude terrorism when we cannot reasonably evaluate the risk of loss or charge an appropriate premium for such risk. Even in cases where we have deliberately sought to exclude coverage, we may not be able to eliminate our exposure to terrorist acts, and thus it is possible that these acts will have a material adverse effect on us.

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We are exposed to, and may face adverse developments involving, mass tort claims such as those relating to exposure to potentially harmful products or substances.

We face exposure to mass tort claims, including claims related to exposure to potentially harmful products or substances. Establishing claims and claim adjustment expense reserves for mass tort claims is subject to uncertainties because of many factors, including expanded theories of liability, disputes concerning medical causation with respect to certain diseases, geographical concentration of the lawsuits asserting the claims and the potential for a large rise in the total number of claims without underlying epidemiological developments suggesting an increase in disease rates. Moreover, evolving judicial interpretations regarding the application of various tort theories and defenses, including application of various theories of joint and several liabilities, as well as the application of insurance coverage to these claims, make it difficult to estimate our ultimate liability for such claims.

Because of the uncertainties set forth above, additional liabilities may arise for amounts in excess of the current related reserves. In addition, our estimate of claims and claim adjustment expenses may change, and such change could be material. These additional liabilities or increases in estimates, or a range of either, cannot now be reasonably estimated and could materially and adversely affect our results of operations.

The risks associated with property and casualty reinsurance underwriting could adversely affect us.

Because we participate in property and casualty reinsurance markets, the success of our underwriting efforts depends, in part, upon the policies, procedures and expertise of the ceding companies making the original underwriting decisions. We face the risk that these ceding companies may fail to accurately assess the risks that they assume initially, which, in turn, may lead us to inaccurately assess the risks we assume. If we fail to establish and receive appropriate premium rates, we could face significant losses on these contracts.

When we enter into reinsurance contracts, all loss settlements made by a ceding company, provided they are within the terms of the underlying policies and within the terms of the relevant contract, will be unconditionally binding upon us. While we believe that the ceding companies will settle such claims in good faith, we are bound to accept the claims settlements agreed to by the ceding companies. Under the underlying policies, each ceding company bears the burden of proving that a contractual exclusion applies to a loss, and there may be circumstances where the facts of a loss are insufficient to support the application of an exclusion. In such circumstances, we assume such losses under the reinsured policies, which could materially adversely affect our performance.

The terms of the Federal Multi-Peril Crop Insurance Program may change and adversely impact us.

ARMtech currently participates in the U.S. Federal Multi-Peril Crop Insurance Program ("MPCI") sponsored by the Risk Management Agency of the U.S. Department of Agriculture (the "RMA"). The U.S. Farm Bill was signed into law February 2014, which fixes the terms of the MPCI program, is subject to change by the U. S. Congress at any time. ARMtech's agriculture insurance premiums, which are primarily driven by MPCI, represent a large portion of our business, totaling $760.9 million of gross premiums written in 2016, and representing 29.6% of the total gross premiums written in our Insurance segment in 2016.

The RMA periodically reviews and proposes changes to the Standard Reinsurance Agreement ("SRA") used in connection with the MPCI program and such changes to the SRA could adversely affect the financial results of crop insurers such as ARMtech.

As an agriculture insurer, we could face losses from commodity price volatility.

A significant portion of our agriculture insurance business provides revenue protection to farmers for their expected crop revenues, which can be affected by changes in crop prices. We face the risk that significant losses could be incurred in the event of a decline in the applicable commodity prices prior to harvest. While this risk is partially mitigated by policyholder retentions, it is possible that large declines in the commodity prices of the major crops we insure, including corn, soybeans, cotton and wheat, could have a material adverse effect on our results of operations or financial condition if we are unable to effectively reinsure these risks or enter into applicable commodity price hedges.

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If actual renewals of our existing policies and contracts do not meet expectations, our gross premiums written in future years and our future results of operations could be materially adversely affected.

Our insurance policies and reinsurance contracts are generally for a one-year term. In our financial forecasting process, we make assumptions about the renewal of our prior year’s policies and contracts. If actual renewals do not meet expectations, our gross premiums written in future years and our future results of operations could be materially adversely affected. This risk is especially prevalent in the first quarter of each year when a large number of insurance and reinsurance contracts are subject to renewal.

The ongoing development of our excess and surplus lines insurance operations is subject to increased risk from changing market conditions.

Excess and surplus lines insurance is a substantial portion of the business written by our U.S.- and U.K.-based insurance operations. Excess and surplus lines insurance covers risks that are typically more complex and unusual than standard risks and require a high degree of specialized underwriting. As a result, excess and surplus lines risks do not often fit the underwriting criteria of standard insurance carriers. Our excess and surplus lines insurance business fills the insurance needs of businesses with unique characteristics and is generally considered higher risk than those in the standard market. If our underwriting staff inadequately judges and prices the risks associated with the business underwritten in the excess and surplus lines market, our financial results could be adversely impacted.

Further, the excess and surplus lines market is significantly affected by the conditions of the property and casualty insurance market in general. The impact of this cyclicality can be more pronounced in the excess and surplus market than in the standard insurance market. During times of hard market conditions (when market conditions are more favorable to insurers), as rates increase and coverage terms become more restrictive, business tends to move from the admitted market to the excess and surplus lines market and growth in the excess and surplus market can be significantly more rapid than growth in the standard insurance market. When soft market conditions are prevalent (when market conditions are less favorable to insurers), standard insurance carriers tend to loosen underwriting standards and expand market share by moving into business lines traditionally characterized as excess and surplus lines, exacerbating the effect of rate decreases. If we fail to manage the cyclical nature and volatility of the revenues and profit we generate in the excess and surplus lines market, our financial results could be adversely impacted.

The failure of any of the loss limitation methods we employ, as well as an unexpected accumulation of attritional losses, could have a material adverse effect on our financial condition or on our results of operations.

We seek to limit our loss exposure in a variety of ways, including by writing many of our insurance and reinsurance contracts on an excess of loss basis, adhering to maximum limitations on policies written in defined geographical zones, limiting program size for each client, establishing per risk and per occurrence limitations for each event, employing coverage restrictions, following prudent underwriting guidelines for each program written and purchasing reinsurance and retrocessional protection. In the case of proportional treaties, we generally seek per occurrence limitations or loss ratio caps to limit the impact of losses from any one event. Most of our direct liability insurance policies include maximum aggregate limitations. We also seek to limit our loss exposure through geographic diversification. Disputes relating to coverage and choice of legal forum may also arise. As a result, various provisions of our policies, such as limitations or exclusions from coverage or choice of forum, may not be enforceable in the manner we intend and some or all of our other loss limitation methods may prove to be ineffective. Underwriting is a matter of judgment, involving important assumptions about matters that are inherently unpredictable and beyond our control, and for which historical experience and probability analysis may not provide sufficient guidance. One or more future catastrophic or other events could result in claims that substantially exceed our expectations, which could have a material adverse effect on our financial condition and our results of operations, possibly to the extent of eliminating our shareholders' equity.

Our operating results may also be adversely affected by unexpectedly large accumulations of smaller losses. We seek to manage this risk by using appropriate loss limitation methods as noted above. These processes are intended to ensure that premiums received are sufficient to cover the expected levels of attritional loss as well as a contribution to the cost of natural catastrophes and large losses where necessary. It is possible, however, that our loss limitation methods may not work as intended in this respect and that actual losses, including attritional losses, from a class of risks may be greater than expected, which may have a material adverse effect on our financial condition and our results of operations.

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We may be unable to purchase reinsurance and our net income could be reduced or we could incur a net loss in the event of an unusual loss experience.

We purchase reinsurance if it is deemed prudent from a risk mitigation perspective or if it is expected to have a favorable cost/benefit relationship relative to our retained risk portfolio. Changes in the availability and cost of reinsurance, which are subject to market conditions that are outside of our control, may reduce to some extent our ability to use reinsurance to balance exposures across our reinsurance or insurance operations. Accordingly, we may not be able to obtain our desired amounts of reinsurance. In addition, even if we are able to obtain such reinsurance, we may not be able to negotiate terms that we deem appropriate or acceptable or obtain such reinsurance from entities with satisfactory creditworthiness.

We are also subject to credit risk with respect to our reinsurers because the transfer of risk to a reinsurer does not relieve us of our liability to our clients. If our reinsurance companies experience financial difficulties, they may be unable to pay us. In addition, reinsurers may be unwilling to pay us, even though they are able to do so. The failure of one or more of our reinsurers to honor their obligations to us in a timely fashion would impact our cash flow and reduce our net income and, depending upon the amount of reinsurance we have purchased, could cause us to incur a significant loss.

Consolidation in the (re)insurance industry could adversely affect our business.

Several (re)insurance industry participants are likely seeking to consolidate. These consolidated entities may try to use their enhanced market power to negotiate price reductions for our products and services and/or obtain a larger market share through increased line sizes. If competitive pressures reduce our prices, we would expect to write less business. As the (re)insurance industry consolidates, competition for customers will become more intense and the importance of acquiring and properly servicing each customer will become greater. We could incur greater expenses relating to customer acquisition and retention, further reducing our operating margins. In addition, insurance companies that merge may be able to spread their risks across a consolidated, larger capital base so that they require less reinsurance. Reinsurance intermediaries could also continue to consolidate, potentially adversely impacting our ability to access business and distribute our products. We could also experience more robust competition from larger, better capitalized competitors. Any of the foregoing could adversely affect our business or our results of operations.

A decline in our financial strength ratings could affect our standing among brokers and customers and cause our premiums and earnings to decrease.

Financial strength ratings have become an increasingly important factor in establishing the competitive position of insurance and reinsurance companies. Endurance Bermuda and certain of our operating subsidiaries currently maintain an A.M. Best financial strength rating of "A" (Excellent) with a stable outlook and an S&P financial strength rating of "A" (Strong) with a stable outlook and a Moody's rating of "A2" with a stable outlook. Syndicate 5151 (which is managed by Endurance at Lloyd's), as is the case with all Lloyd's syndicates, benefits from the Lloyd's single market rating. Lloyd's currently maintains a financial strength rating at A.M. Best of "A" (Excellent), an S&P rating of "A+" (Strong) and a Fitch rating of "AA-" (Very Strong).

Because all ratings are subject to continual review, the retention of these ratings cannot be assured. If our ratings are reduced from their current level by A.M. Best, S&P, Moody's or Fitch, our competitive position in the insurance and reinsurance industry would suffer. Such a downgrade may have a material negative impact on our ability to expand our insurance and reinsurance portfolio and renew our existing insurance and reinsurance policies and agreements, require us to establish trusts or post letters of credit for ceding company clients, and could trigger provisions allowing some ceding company clients to terminate their reinsurance contracts with us on terms disadvantageous to us. In addition, a downgrade of our A.M. Best rating below "B++" (two levels below our current rating) would constitute an event of default under our bank credit facility. Each of the effects of a downgrade of our financial strength rating described above could make it more expensive or otherwise difficult for us to compete in certain business segments in which we would otherwise desire to operate. If this were to occur, we could suffer a material and adverse effect on our financial position and results of operations, and the market price for our securities, including any ordinary shares, could be materially and adversely affected.

It is possible that rating agencies may in the future heighten the level of scrutiny they apply when analyzing companies in our industry, may increase the frequency and scope of their reviews, may request additional information from the companies that they rate, and may adjust upward the capital and other requirements employed in their models for maintenance of certain rating levels.

We cannot predict what actions rating agencies may take, or what actions we may take in response to the actions of rating agencies, which could adversely affect our business. As with other companies in the financial services industry, our ratings could be downgraded at any time and without any notice.

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Profitability may be adversely impacted by inflation.

The effects of inflation could cause the cost of claims from catastrophes or other events to rise in the future. Our reserve for losses and loss expenses includes assumptions about future payments for settlement of claims and claims handling expenses, such as medical treatments and litigation costs. To the extent inflation causes these costs to increase above reserves established for these claims, we will be required to increase our loss reserves with a corresponding reduction in our net income in the period in which the deficiency is identified.

Inflation could also lead to higher interest rates causing the current unrealized gain position in the Company's fixed maturity portfolio to decrease.

Adverse changes to the economy in the countries in which we operate could lower the demand for our insurance and reinsurance products and could have a materially adverse effect on the profitability of our operations.

Factors such as consumer spending, business investment, government spending, the volatility and strength of the capital markets, inflation, and membership in key economic and political confederations such as the European Union all affect the business and economic environment and, indirectly, the amount and profitability of our business. In an economic environment characterized by higher unemployment, lower family income, lower corporate earnings, lower business investment and lower consumer spending, the demand for insurance products could be adversely affected. Adverse changes in the economy could potentially lead our customers to have less need for insurance coverage, to cancel existing insurance policies, modify coverage or to not renew with us, and our premium revenue could be adversely affected. Challenging economic conditions also may impair the ability of our customers to pay premiums as they come due.

The continuing worldwide economic instability has resulted in global financial market uncertainty and economic instability. Consequently, evolving market conditions may continue to affect our investment portfolio, results of operations, financial position and capital resources. In the event that there is further deterioration or volatility in financial markets or general economic conditions, our investment portfolio, results of operations, financial position and/or liquidity, and competitive landscape could be materially and adversely affected.

Since we depend on a few brokers for a large portion of our revenues, loss of business provided by any one of them could adversely affect us.

We market our insurance and reinsurance worldwide through insurance and reinsurance brokers. In the year ended December 31, 2016, our top three brokers represented approximately 44.1% of our gross premiums written. Loss of all or a substantial portion of the business provided by one or more of these brokers could have a material adverse effect on our business.

Our reliance on brokers subjects us to their credit risk.

In accordance with industry practice, we frequently pay amounts owed on claims under our insurance or reinsurance contracts to brokers, and these brokers, in turn, pay these amounts to the clients that have purchased insurance or reinsurance from us. If a broker fails to make such a payment, in a significant majority of business that we write, it is highly likely that we will be liable to the client for the deficiency because of local laws or contractual obligations, notwithstanding the broker's obligation to make such payment. Likewise, when the client pays premiums for these policies to brokers for payment over to us, these premiums are considered to have been paid and, in most cases, the client will no longer be liable to us for those amounts, whether or not we have actually received the premiums. Consequently, we assume a degree of credit risk associated with brokers around the world with respect to most of our insurance and reinsurance business. To date we have not experienced any losses related to such credit risks.

The effects of emerging claim and coverage issues on our business are uncertain.

As industry practices and legal, judicial, social and other environmental conditions change, unexpected and unintended issues related to claims and coverage may emerge. These issues may adversely affect our business by either broadening coverage beyond our underwriting intent or by increasing the number or size of claims. In some instances, these changes may not become apparent until sometime after we have issued insurance or reinsurance contracts that are affected by the changes. As a result, the full extent of liability under our insurance or reinsurance contracts may not be known for many years after a contract is issued.

Recent examples of emerging claims and coverage issues include:

• An increase in the dollar magnitude of security class action settlements, particularly in the settlement of mega-cases, covered by professional liability and directors' and officers' liability insurance;

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• continued challenges to tort reform by plaintiffs with mixed results across the United States;

• a low interest rate environment, which continues to create upward pressure on settlement values;

• a growing trend of plaintiffs targeting property and casualty insurers relating to claims-handling practices in the adjustment of losses relating to natural disasters; and

• securities litigation with a focus on initial public offerings and merger and acquisition activities.

We may also be deemed liable for losses arising out of a matter that we had not anticipated or had attempted to contractually exclude. Moreover, irrespective of the clarity and inclusiveness of policy language, there can be no assurance that a court or arbitration panel will limit enforceability of policy language or not issue a ruling adverse to us. Our exposure to these uncertainties could be exacerbated by the increased willingness of some market participants to dispute insurance and reinsurance contract and policy wordings. Alternatively, potential efforts by us to exclude such exposures could, if successful, reduce the market's acceptance of our related products. The effects of these and other unforeseen emerging claim and coverage issues are extremely hard to predict and could have a material adverse effect on our financial condition or results of operations.

We operate in a highly competitive environment which could adversely impact our operating margins.

The insurance and reinsurance industries are highly competitive. We compete with major U.S. and non-U.S. insurers and reinsurers, including other Bermuda-based insurers and reinsurers. Many of our competitors have greater financial, marketing and management resources. In addition, we may not be aware of other companies that may be planning to enter the segments of the insurance and reinsurance market in which we operate or of existing companies that may be planning to raise additional capital. Increasing competition could result in fewer submissions, lower premium rates and less favorable policy terms and conditions, which could have a material adverse impact on our growth and profitability.

Further, insurance/risk-linked securities and derivative and other non-traditional risk transfer mechanisms and vehicles are being developed and offered by other parties, including non-insurance company entities, which could impact the demand for traditional insurance or reinsurance. A number of new, proposed or potential industry or legislative developments could further increase competition in our industry. New competition from these developments could cause the demand for insurance or reinsurance to fall or the expense of customer acquisition and retention to increase, either of which could have a material adverse effect on our growth and profitability.

The historical cyclicality of the property and casualty reinsurance industry may cause fluctuations in our results.

Historically, property and casualty insurers and reinsurers have experienced significant fluctuations in operating results due to competition, frequency of occurrence or severity of catastrophic events, levels of capacity, general economic conditions and other factors. Demand for insurance and reinsurance is influenced significantly by prevailing general economic conditions and, in the case of reinsurance, the underwriting results of primary property and casualty insurers. The supply of insurance and reinsurance is related to prevailing prices, the levels of insured losses and the levels of industry surplus which, in turn, may fluctuate in response to changes in rates of return on investments being earned in the insurance and reinsurance industry. As a result, the insurance and reinsurance business historically has been a cyclical industry characterized by periods of intense price competition due to excessive underwriting capacity as well as periods when shortages of capacity permitted favorable premium levels. The continued strength of the industry's surplus position and the establishment of new market entrants has increased the supply of insurance and reinsurance and has caused insurance and reinsurance prices in many of the markets in which we participate to decrease in the past five years. Any of these factors could lead to a significant reduction in premium rates, less favorable policy terms and fewer submissions for insurance and reinsurance coverage. In addition to these considerations, changes in the frequency and severity of losses suffered by insureds and cedants may affect the cycles of the insurance and reinsurance business significantly. To the extent these trends continue, our financial condition or results of operations could be materially and adversely affected.

INVESTMENT RISKS

We are exposed to significant financial and capital markets risk, including changes in interest rates, credit spreads, equity prices and foreign currency exchange rates, which may adversely affect our results of operations, financial condition or liquidity.

We are exposed to significant financial and capital markets risk, including changes in interest rates, credit spreads, equity prices, foreign currency exchange rates, market volatility, the performance of the economy in general, the performance of the specific issuers included in our portfolio and other factors outside our control.

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Our exposure to interest rate risk relates primarily to the market price and cash flow variability associated with changes in interest rates. A rise in interest rates, in the absence of other countervailing changes, will reduce the net unrealized gain or increase the net unrealized loss position of our investment portfolio. As portions of our fixed maturity investments mature, we may be forced to reinvest these investments at lower rates, which could result in materially lower investment yields. In the event that our estimate of our liability-cash flow profile is inaccurate, we may be forced to liquidate investments prior to maturity at a loss in order to cover the liability. Although we take measures to manage the economic risks of investing in a changing interest rate environment, we may not be able to adequately mitigate the interest rate risk of our assets relative to our liabilities, which could have a material adverse effect on our consolidated results of operations, financial condition or liquidity.

Our exposure to credit spreads primarily relates to market price and cash flow variability associated with changes in credit spreads. If issuer credit spreads widen or increase significantly over an extended period of time, it may result in a decrease in the net unrealized gain position of our investment portfolio. If credit spreads tighten significantly, it will reduce net investment income associated with new purchases of fixed maturity investments.

Our exposure to equity price risk relates primarily to equity market price variability. Although we take measures to manage the economic risks of investing in a changing equity market, we may not be able to adequately mitigate the equity risk of our assets relative to our liabilities.

Our primary foreign currency exchange risks are related to net income from foreign operations, non–U.S. dollar denominated investments, investments in foreign subsidiaries, cash and premium receivable balances and reserves. In general, the weakening of foreign currencies versus the U.S. dollar will unfavorably affect net income from foreign operations, investments in foreign subsidiaries, and the value of cash, investments and premium receivable balances offset by reserves held in currencies other than U.S. dollars.

A portion of our investment portfolio is allocated to alternative investment funds that we expect will have different risk characteristics than our investments in traditional fixed maturity securities, equity securities and short-term investments, which in turn could result in a material adverse change to our investment performance, and accordingly adversely affect our financial results.

A portion of our investment portfolio is allocated to alternative funds, which we expect to have different risk characteristics than our investments in traditional fixed maturity securities, equity securities and short-term investments. Our alternative funds include investments in hedge funds and private investment funds that generally invest in senior secured bank debt, high yield credit securities, distressed debt, macro strategies, multi-strategy, equity long/short strategies, distressed real estate, and energy sector private equity. The amount and timing of net investment income from such alternative and specialty investment funds tends to be uneven as a result of the performance of the underlying investments. The timing of distributions from these investments, which depends on particular events relating to the underlying investments, as well as the funds' schedules for making distributions and their needs for cash, can be difficult to predict. The amount of net investment income that we record from these investments can vary substantially from quarter to quarter. Many of the investments are subject to restrictions on redemptions and sales that limit our ability to liquidate these investments in the short-term. These investments expose us to market risks including interest rate risk, foreign currency risk, equity price risk and credit risk. In addition, we typically do not hold the underlying securities of these investments in our custody accounts. As a result, we generally do not have the ability to quantify the risks associated with these investments in the same manner as we have for our fixed maturity portfolio. The performance of these investments is also dependent on the individual investment managers and their investment strategies. It is possible that the investment managers will leave and/or the investment strategies will become ineffective. Any of the foregoing could result in a material adverse change to our investment performance, and accordingly adversely affect our financial results.

Losses due to defaults by others, including issuers of investment securities (which include structured securities such as commercial mortgage-backed securities and residential mortgage-backed securities or high yield bonds), and reinsurance counterparties could adversely affect the value of our investments, results of operations, financial condition or cash flows.

Issuers or borrowers whose securities or loans we hold, customers, reinsurers, clearing agents, exchanges, clearing houses and other financial intermediaries and guarantors may default on the principal and interest they owe to us due to bankruptcy, insolvency, lack of liquidity, adverse economic conditions, operational failure, fraud or other reasons. We are also subject to the risk that the underlying collateral within loan-backed securities, including mortgage-backed and asset-backed securities, may default on principal and interest payments causing an adverse change in cash flows paid to us. The occurrence of a major economic downturn, acts of corporate malfeasance, widening risk spreads, or other events that adversely impact the issuers, guarantors or underlying collateral of these securities could cause the value of our investment portfolio and our net income to decline and the default rate of our fixed maturity investments to increase. A ratings downgrade affecting issuers or guarantors of particular securities, or similar trends that could worsen the credit quality of issuers, such as the corporate issuers of securities

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in our investment portfolio, could also have a similar effect. With economic uncertainty, credit quality of issuers or guarantors could be adversely affected. Similarly, a ratings downgrade affecting a loan-backed security we hold could indicate the credit quality of that security has deteriorated. Any event reducing the value of these securities other than on a temporary basis could have a material adverse effect on our business, results of operations and financial condition. Levels of write down or impairment are impacted by our assessment of the intent and ability to hold securities which have declined in value and whether such declines in the Company's value below amortized cost are due to credit related factors.

We have also engaged third party investment managers to provide us with investment advisory and management services. It is possible that the investment strategies employed by these third party investment managers may become ineffective or that such managers will fail to follow our investment guidelines, which could result in a material adverse change to our investment performance, and accordingly adversely affect our financial results.

A downgrade of U.S. or foreign government securities by credit rating agencies could adversely impact the value of the U.S. or foreign government and other securities in our investment portfolio and create uncertainty in the market generally.

A downgrade of the U.S. or foreign government securities by credit rating agencies has the potential to adversely impact the value of the U.S. or foreign government and other securities in our investment portfolio. A further downgrade in the rating of U.S. or foreign government securities may cause the Company's investment portfolio's average credit rating to fall and may result in the Company no longer being in compliance with its current investment policy at its current level of U.S. or foreign government security holdings. In addition to the foregoing, a further downgrade in the rating of U.S. or foreign government securities may have an adverse impact on fixed income markets, which in turn could cause our net investment income to decline or have a material adverse effect on our financial condition.

Our investment portfolio contains direct and indirect exposure to the indebtedness and equity securities of those countries whose currency is the Euro or whose sovereign debt rating is below AAA (except the U.S.) which may be subject to increased liquidity risk, interest rate risk and default risk as a result of economic conditions in those countries. Increased defaults or a significant increase in interest rates could result in losses, realized or unrealized, in the fair value of our investment portfolio and, consequently, could have a material adverse effect on our financial condition.

The determination of the other-than-temporary impairments taken on our available for sale investments is highly subjective and could materially impact our financial position or results of operations.

The determination of the amount of other-than-temporary impairments recognized on our available for sale investments varies by investment type and is based upon our periodic evaluation and assessment of known and inherent risks associated with the respective asset class as well as an analysis on a security by security basis. Such evaluations and assessments are revised as conditions change and new information becomes available. Management updates its evaluations regularly and reflects impairments in operations as such evaluations are revised.

During periods of market disruption including periods of significantly rising or high interest rates, rapidly widening credit spreads or illiquidity, it may be difficult to value certain of our securities, such as mortgage-backed securities, if trading becomes less frequent or market data becomes less observable. In addition, there may be certain asset classes that were in active markets with significant observable data that become illiquid. In such cases, more securities may require more subjectivity and management judgment in determining their values, including the use of inputs and assumptions that are less observable or require greater estimation as well as valuation methods, which are more sophisticated or require greater estimation thereby resulting in values which may differ materially from the value at which the investments may be ultimately sold. Further, rapidly changing and unprecedented credit and equity market conditions could materially impact the valuation of securities as reported within our consolidated financial statements and the period-to-period changes in value could vary significantly. Decreases in value may have a material adverse effect on our results of operations or financial condition.

There can be no assurance that our management has accurately assessed the level of impairments taken in our financial statements. Furthermore, additional impairments may need to be taken in the future, which could materially impact our financial position or results of operations. Historical trends may not be indicative of future impairments.

Some of our investments are relatively illiquid and are in asset classes that may experience significant market valuation fluctuations.

We hold certain investments that may lack liquidity, such as our alternative funds. If we require significant amounts of cash on short notice in excess of normal cash requirements or are required to post or return collateral in connection with our investment portfolio, we may have difficulty selling these investments in a timely manner, be forced to sell them for less than we otherwise would have been able to realize, or both.

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The reported value of our relatively illiquid types of investments and, at times, our high quality, generally liquid asset classes, do not necessarily reflect the lowest current market price for the asset. If we were forced to sell certain of our assets in the current market, there can be no assurance that we will be able to sell them for the prices at which we have recorded them, and we may be forced to sell them at significantly lower prices.

We are exposed to equity market risks, which may adversely affect our results of operations, financial condition or liquidity.

We are exposed to risks associated with our investments in equity securities, which are subject to significant financial and capital markets risk, including changes in interest rates, credit spreads, equity prices, real estate markets, the performance of the economy in general, the performance of the specific securities included in our investment portfolio and other factors outside our control.

Our exposure to equity price risk relates primarily to equity market price variability. Although we take measures to manage the economic risks of investing in a changing equity market, we may not be able to adequately mitigate the equity risk of our assets relative to our liabilities, which could have an adverse effect on our results of operations, financial condition or liquidity.

We are exposed to derivative financial instrument risks, which may adversely affect our results of operations, financial condition or liquidity.

We are exposed to risks associated with our investments in derivative financial instruments, which are subject to significant financial and capital markets risk, including changes in interest rates, credit spreads, equity prices, real estate markets, foreign currency exchange rates, weather elements such as temperature, precipitation, snowfall and windspeed, market volatility, the performance of the economy in general, the performance of the specific securities included in our investment portfolio and other factors outside our control.

Losses due to defaults by our derivative counterparties could adversely affect the value of our investments, results of operations, financial condition or cash flows.

Derivative counterparties may default on the amounts they owe to us due to bankruptcy, insolvency, lack of liquidity, adverse economic conditions, operational failure, fraud or other reasons. The occurrence of a major economic downturn, acts of corporate malfeasance, widening risk spreads or other events that adversely impact our derivative counterparties or the collateral supporting our derivative instruments could cause our net income to decline and have a material adverse effect on our financial condition.

Our failure to comply with the financial strength standards governing our derivative instruments could obligate us to post collateral or settle our outstanding derivative instruments.

Certain of the Company's derivative agreements contain provisions that are tied to the financial strength ratings of the individual legal entity which entered into the derivative agreement as set by nationally recognized statistical rating agencies. If the legal entity’s financial strength were to fall below certain ratings, the counterparties to the derivative agreements could demand immediate and ongoing full collateralization and in certain instances demand immediate settlement of all outstanding derivative positions traded under each impacted bilateral agreement. The settlement amount is determined by netting the derivative positions transacted under each agreement. If the termination rights were to be exercised by the counterparties, it could have a material adverse effect on the Company's liquidity, financial condition, results of operations and ability to conduct hedging activities by increasing the associated costs and decreasing the willingness of counterparties to transact with the legal entity.

Our investment liquidity and investment performance may affect our financial assets and ability to conduct business.

We derive a significant portion of our income from our invested assets. As a result, our operating results depend in part on the performance of our investment portfolio, which consists primarily of fixed maturity investments. Our operating results are subject to a variety of investment risks, including risks relating to general economic conditions, market volatility, interest rate fluctuations, liquidity risk and credit and default risk. In addition, we are subject to pre-payment or reinvestment risk as well as restrictions on redemptions or sale of certain of our investments.

With respect to our liabilities, we strive to structure our investments in a manner that recognizes their cash flow profile and our potential liquidity needs. In that regard, we attempt to correlate the maturity and duration of our investment portfolio to our liability profile. However, if our liquidity needs or liability profile unexpectedly changes, we may not be successful in continuing to structure our investment portfolio in that manner. The market value of our fixed maturity portfolio will be subject

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to fluctuations depending on changes in various factors, including prevailing interest rates. To the extent that we are unsuccessful in correlating our investment portfolio with our liabilities, we may be forced to liquidate our investments at times and prices that are not optimal, which could have a material adverse effect on the performance of our investment portfolio.

Interest rates are highly sensitive to many factors, including governmental monetary policies, domestic and international economic and political conditions and other factors beyond our control. Although we take measures to attempt to manage the risks of investing in a changing interest rate environment, we may not be able to mitigate interest rate sensitivity effectively. A significant increase in interest rates may have a material adverse effect on our book value.

LIQUIDITY AND CAPITAL RISKS

Our holding company structure and certain regulatory and other constraints affect our ability to pay dividends and make other payments.

Endurance Holdings is a holding company and, as such, has no substantial operations of its own. Dividends and other permitted distributions from our operating subsidiaries are expected to be Endurance Holdings' primary source of funds to meet ongoing cash requirements, including debt service payments and other expenses, and to pay dividends, if any, to shareholders. Bermuda law and regulations, including, but not limited to, Bermuda insurance regulations, restrict the declaration and payment of dividends and the making of distributions by Endurance Bermuda unless certain regulatory requirements are met. The inability of Endurance Bermuda to pay dividends in an amount sufficient to enable Endurance Holdings to meet its cash requirements at the holding company level could have a material adverse effect on its operations. In addition, Endurance Holdings' U.S. and U.K. operating subsidiaries are subject to significant regulatory restrictions limiting their ability to declare and pay dividends. We therefore do not expect to receive material dividends from these operating subsidiaries for the foreseeable future.

Endurance Holdings is subject to Bermuda regulatory constraints that will affect its ability to pay dividends on its ordinary shares and 6.35% Non-Cumulative Preferred Shares, Series C (the "Preferred Shares") and to make other payments. Under the Bermuda Companies Act, Endurance Holdings may declare or pay a dividend or make a distribution out of retained earnings or contributed surplus only if it has reasonable grounds for believing that it is, or would after the payment be, able to pay its liabilities as they become due and if the realizable value of its assets would thereby not be less than the aggregate of its liabilities and issued share capital and share premium accounts. In addition, the terms of our credit facility prohibit Endurance Holdings from declaring or paying any dividends if a default or event of default has occurred and is continuing at the time of such declaration or payment or would result from such declaration or payment. In addition, the terms of the Preferred Shares prohibit the declaration or payment of dividends on our ordinary shares unless dividends on the Preferred Shares have been declared and paid. Preference shares, including the Preferred Shares, may also not be redeemed if as a result of the redemption, our issued share capital would be reduced below the minimum capital specified in the memorandum of association of Endurance Holdings.

We could incur substantial losses and reduced liquidity if one of the financial institutions we use in our operations, including those institutions that participate in our credit facility, fails.

We have exposure to counterparties in many different industries and routinely execute transactions with counterparties in the financial services industry, including brokers and dealers, commercial banks, investment banks, hedge funds and other investment funds and other institutions. Many of these transactions expose us to credit risk in the event of default of our counterparty. In addition, with respect to secured transactions, our credit risk may be exacerbated when the collateral held by us cannot be realized or is liquidated at prices not sufficient to recover the full amount of the obligation. Current reinsurance recoverables are subject to the credit risk of the reinsurers.

We maintain cash balances, including restricted cash held in premium trust accounts, significantly in excess of the Federal Deposit Insurance Corporation insurance limits at various depository institutions. We also maintain cash balances in foreign banks and institutions and rely upon funding commitments from several banks and financial institutions that participate in our credit facility. If one or more of these financial institutions were to fail, our ability to access cash balances or draw down on our credit facility may be temporarily or permanently limited, which could have a material adverse effect on our results of operations, financial condition or cash flows.

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The cost of reinsurance security arrangements may materially impact our margins.

As a Bermuda reinsurer, Endurance Bermuda is required to post collateral with respect to reinsurance liabilities it assumes from ceding insurers domiciled in the U.S. The posting of collateral is generally required in order for U.S. ceding companies to obtain credit on their U.S. statutory financial statements with respect to reinsurance liabilities ceded to unlicensed or unaccredited reinsurers, such as Endurance Bermuda. Under applicable statutory provisions, the security arrangements may be in the form of letters of credit, reinsurance trusts maintained by third-party trustees or funds-withheld arrangements whereby the trusteed assets are held by the ceding company. Endurance Bermuda has the ability to issue up to $450.0 million in letters of credit under our letter of credit facility that expires on March 23, 2021. If this facility is not sufficient or if the Company is unable to renew this facility or is unable to arrange for other types of security on commercially acceptable terms, the ability of Endurance Bermuda to provide reinsurance to U.S.-based clients may be severely limited.

Security arrangements may subject our assets to security interests and/or require that a portion of our assets be pledged to, or otherwise held by, third parties. Although the investment income derived from our assets while held in trust typically accrues to our benefit, the investment of these assets is governed by the investment regulations of the state of domicile of the ceding insurer, which may be more restrictive than the investment regulations applicable to us under Bermuda law. The restrictions may result in lower investment yields on these assets, which could have a material adverse effect on our profitability.

Adverse capital and credit market conditions may significantly affect our ability to meet liquidity needs, access to capital and cost of capital.

Our future capital requirements depend on many factors, including our ability to underwrite new business successfully, to establish premium rates and reserves at levels sufficient to cover losses, and to maintain our current rating agency ratings. In addition, we need liquidity to pay our operating expenses and without sufficient liquidity, we will be forced to curtail our operations, and our business will suffer. The principal sources of our liquidity are our invested assets. Sources of liquidity in normal markets also include a variety of short- and long-term instruments, including repurchase agreements, commercial paper, medium- and long-term debt, junior subordinated debt securities, capital securities and shareholders' equity.

In the event current resources do not satisfy our needs, we may have to seek additional financing. The availability of additional financing will depend on a variety of factors such as market conditions, the general availability of credit, the volume of trading activities, the overall availability of credit to the financial services industry, our credit ratings and credit capacity, as well as the possibility that customers or lenders could develop a negative perception of our long- or short-term financial prospects if we incur large investment losses or if the level of our business activity decreases due to a market downturn. Similarly, our access to funds may be impaired if regulatory authorities or rating agencies take negative actions against us. Our internal sources of liquidity may prove to be insufficient, and in such case, we may not be able to successfully obtain additional financing on favorable terms, or at all.

Disruptions, uncertainty or volatility in the capital and credit markets may also limit our access to capital required to operate our business, most significantly our insurance operations. Such market conditions may limit our ability to replace, in a timely manner, maturing liabilities; satisfy statutory capital requirements; generate fee income and market-related revenue to meet liquidity needs; and access the capital necessary to grow our business. As such, we may be forced to delay raising capital, issue shorter tenor securities than we prefer, or bear an unattractive cost of capital which could decrease our profitability and significantly reduce our financial flexibility. Any equity or debt financing, if available at all, may be on terms that are not favorable to us. In the case of equity financings, dilution to our shareholders could result, and in any case such securities may have rights, preferences and privileges that are senior to those of our already outstanding securities. Our results of operations, financial condition, cash flows and statutory capital position could be materially adversely affected by disruptions in the financial markets and an inability to obtain adequate capital.

The Company may require additional capital in the future, which may not be available to it on satisfactory terms, if at all.

The Company will require liquidity to pay claims, fund its operating expenses, make interest and principal payments on its debt and pay dividends. Any future debt financing may not be available on terms that are favorable to the Company, if at all. Markets in the U.S., Europe and elsewhere have experienced extreme volatility and disruption in recent years due to financial stresses that affected the liquidity of the financial markets. These circumstances have at times reduced access to the public and private debt markets. If the Company cannot obtain adequate sources of financing on favorable terms, or at all, its business, operating results and financial condition could be adversely affected.

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Our failure to comply with restrictive covenants contained in the indentures governing our senior notes or our current or future credit facility could trigger prepayment obligations, which could adversely affect our business, financial condition and results of operations.

The indentures governing our senior notes contain covenants that impose restrictions on us and certain of our subsidiaries with respect to, among other things, the incurrence of liens and the disposition of capital stock of these subsidiaries. In addition, our credit facility requires us and/or certain of our subsidiaries to comply with certain covenants, including the maintenance of a minimum consolidated net tangible worth and restrictions on the payment of dividends. Our failure to comply with these covenants could result in an event of default under the indentures or our credit facility, which, if not cured or waived, could result in us being required to repay the notes or any amounts outstanding under the credit facility prior to maturity. As a result, our business, financial condition and results of operations could be adversely affected.

LEGAL AND REGULATORY RISKS

Recent or future legislation may decrease the demand for our property catastrophe reinsurance products and adversely affect our business and results of operations.

It is possible that U.S. states, particularly those with Atlantic or Gulf Coast exposures, may enact new or expanded legislation establishing further state involvement in providing or governing the insurance or reinsurance of catastrophe exposed risks, or may otherwise enact legislation, that might further diminish aggregate private market demand for our products. Alternatively, legislation adversely impacting the private markets could be enacted on a regional or at the Federal level. Moreover, we believe that numerous modeled potential catastrophes could exceed the actual or politically acceptable bonded capacity of one or more of the catastrophe funds established by U.S. states, which could lead either to a severe dislocation or the necessity of Federal intervention in the markets of one or more of those states, either of which would adversely impact the private insurance and reinsurance industry.

The regulatory system under which we operate, and potential changes thereto, including heightened scrutiny of issues and practices in the insurance industry could have a material adverse effect on our business.

The laws and regulations under which we operate, such as the regulations governing our insurance rates and forms, the U.S. multi-peril crop insurance program and the purchase of reinsurance by property insurers in Florida, could be revised in a manner materially adverse to the manner in which we conduct our business.

The insurance and reinsurance regulatory framework continues to be subject to increased scrutiny in many jurisdictions, including the U.S. and various states within the U.S. It is possible that changes in regulation arising from such scrutiny, such as the expansion of the regulatory scope of the U.S. Federal Insurance Office, the repeal of the insurance company antitrust exemption under the McCarran-Ferguson Act or the expansion of the European Union Solvency II requirements, could impact us adversely and it is also possible that investigations or related regulatory developments could mandate or otherwise give rise to changes in industry practices in a fashion that increases our costs or requires us to alter how we conduct our business. In addition, if our Bermuda insurance or reinsurance operations become subject to the insurance laws of any state in the U.S., we could face inquiries or challenges to the future operations of these companies.

Our insurance and reinsurance subsidiaries may not be able to obtain or maintain necessary licenses, permits, authorizations or accreditations, or may be able to do so only at great cost. In addition, we may not be able to comply fully with, or obtain appropriate exemptions from, the wide variety of laws and regulations applicable to insurance or reinsurance companies or holding companies. Failure to comply with or to obtain appropriate exemptions under any applicable laws could result in restrictions on our ability to do business in one or more of the jurisdictions in which we operate and fines and other sanctions, which could have a material adverse effect on our business.

Although surplus lines insurance business is generally less regulated than the admitted insurance market, the regulation of surplus lines insurance may undergo changes in the future. Federal and/or state measures may be introduced and promulgated that could result in increased oversight and regulation of surplus lines insurance.

Endurance Assurance, Endurance American and Endurance Risk Solutions write insurance on an admitted basis within the U.S. and are subject to extensive regulation. Endurance Assurance, Endurance American and Endurance Risk Solutions are primarily regulated by their state of domicile under state statutes which confer comprehensive regulatory, supervisory and administrative powers on state insurance commissioners. Such regulation generally is designed to protect policyholders rather than investors or shareholders of the insurer.

Our current or future business strategy could cause one or more of our currently unregulated non-insurance subsidiaries to become subject to some form of regulation. Any failure to comply with applicable laws could result in the imposition of

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significant restrictions on our ability to do business, and could also result in fines and other sanctions, any or all of which could adversely affect our financial results and operations.

Compliance with applicable laws and regulations is time consuming and personnel-intensive, and changes in these laws and regulations may impact the operations of our insurance and non-insurance subsidiaries and ultimately could impact our financial condition as well. In addition, we could be adversely affected if a regulatory authority believed we had failed to comply with applicable law or regulation. Despite our efforts to maintain effective compliance procedures, there is a risk that applicable laws and regulations may be unclear, subject to multiple interpretations, under development or may conflict with one another, that regulators may revise their previous guidance or that courts overturn previous rulings, or that we could otherwise fail to meet the applicable standards.

Solvency II could adversely impact our financial results and operations.

Solvency II, a European Union directive concerning capital adequacy, risk management and regulatory reporting for insurers, which was adopted by the European Parliament in April of 2009, and which came into effect on January 1, 2016 for all European Economic Area member state (re)insurers, may adversely affect our (re)insurance businesses. Implementation of Solvency II continues to require us to utilize a significant amount of resources to ensure compliance. The principles, standards and requirements of Solvency II may also, directly or indirectly, impact the future supervision of additional operating subsidiaries of ours.

Our international business is subject to applicable laws and regulations relating to sanctions and foreign corrupt practices, the violation of which could adversely affect our operations.

We must comply with all applicable economic and financial sanctions, other trade controls and anti-bribery laws and regulations of the United States and other foreign jurisdictions where we operate, including the United Kingdom and the European Community. United States laws and regulations applicable to us include the economic trade sanctions laws and regulations administered by the United States Department of Treasury's Office of Foreign Assets Control as well as certain laws administered by the United States Department of State. In addition, we are subject to the Foreign Corrupt Practices Act and other anti-bribery laws such as the U.K. Bribery Act that generally bar corrupt payments or unreasonable gifts to foreign government officials. Although we have policies and controls in place that are designed to ensure compliance with these laws and regulations, it is possible that an employee or intermediary acting on our behalf could fail to comply with applicable laws and regulations. In such event, we could be exposed to civil penalties, criminal penalties and other sanctions, including fines or other unintended punitive actions. In addition, such violations could damage our business and/or our reputation. Such criminal or civil sanctions, penalties, other sanctions, and damage to our business and/or reputation could have a material adverse effect on our financial condition and operating results.

The referendum vote by the United Kingdom in favor of leaving the European Union could adversely affect our business.

The United Kingdom held a referendum on June 23, 2016, in which a majority voted for the United Kingdom's withdrawal from the European Union. As a result of this vote, negotiations are expected to commence to determine the terms of the United Kingdom's withdrawal from the European Union, as well as its relationship with the European Union going forward ("Brexit"). Brexit has caused and may continue to cause significant volatility in global stock markets and currency exchange rates, which could increase the volatility of, or reduce, the Company's investment results in particular periods or over time. Higher levels of political and market turmoil could persist until some clarity emerges around the United Kingdom's exit process from the European Union and the impact of Brexit on the economies of the other European countries. The geopolitical impacts of Brexit are unknown and may adversely affect long-term European and global economic growth and forecasts, which could adversely impact the demand for the Company's insurance and reinsurance products. Brexit could also lead to legal uncertainty and differing laws and regulations between the United Kingdom and the European Union, and could impair or adversely affect the ability of the Company's United Kingdom operating subsidiaries to transact business in the European Union. In addition, these uncertainties could affect the operations, strategic position or results of brokers, insurers or reinsurers with whom the Company does business. Any of these potential effects of Brexit, and others we cannot anticipate, could adversely affect our business, results of operations or financial condition.

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OPERATING RISKS

Changes in current accounting practices and future pronouncements may materially impact our reported financial results.

Unanticipated developments in accounting practices may require us to incur considerable additional expenses to comply with such developments, particularly if it is required to prepare information relating to prior periods for comparative purposes or to apply the new requirements retroactively. The impact of changes in current accounting practices and future pronouncements cannot be predicted but may affect the calculation of net income, net equity, and other relevant financial statement line items.

Our results of operations may fluctuate significantly from period to period and may not be indicative of our long-term prospects.

Our results of operations may fluctuate significantly from period to period. These fluctuations result from a variety of factors, including the seasonality of the reinsurance and insurance business, the volume and mix of reinsurance and insurance products that we write, loss experience on our reinsurance and insurance liabilities, the performance of our investment portfolio and our ability to assess and integrate our risk management strategy effectively. In particular, we seek to underwrite products and make investments to achieve long-term results. As a result, our short-term results of operations may not be indicative of our long-term prospects.

If actual claims exceed our reserve for losses and loss expenses, our financial condition and results of operations could be adversely affected.

Our success depends upon our ability to accurately assess the risks associated with the businesses that we insure or reinsure. We establish loss reserves to cover our estimated liability for the payment of all losses and loss expenses incurred with respect to premiums earned on the policies that we write. Loss reserves do not represent an exact calculation of liability. Rather, loss reserves are estimates of what we expect the ultimate settlement and administration of claims will cost. These estimates are based upon actuarial and statistical projections and on our assessment of currently available data, as well as estimates of future trends in claims severity and frequency, judicial theories of liability and other factors. Loss reserve estimates are refined continually in an ongoing process as experience develops and claims are reported and settled. Establishing an appropriate level of loss reserves is an inherently uncertain process. Moreover, these uncertainties are greater for companies like us than for those with a longer operating history because we do not yet have an extensive loss history. Because of this uncertainty, it is possible that our reserves at any given time will prove inadequate.

To the extent we determine that actual losses and loss expenses exceed our expectations and loss reserves recorded in our financial statements, we will be required to increase our reserve for losses and loss expenses. This could cause a material reduction in our profitability and capital.

We may be adversely affected by foreign currency fluctuations.

We have made a significant investment in the capitalization of Endurance U.K., which is denominated in British Sterling. In addition, we enter into reinsurance and insurance contracts where we are obligated to pay losses in currencies other than U.S. dollars. For the year ended December 31, 2016, approximately 16.9% of our gross premiums were written in currencies other than the U.S. dollar. A portion of our cash and cash equivalents, investments and loss reserves are also denominated in non-U.S. currencies. The majority of our operating foreign currency assets and liabilities are denominated in Euros, British Sterling, Canadian Dollars, Japanese Yen, New Zealand Dollars and Australian Dollars. We may, from time to time, experience losses from fluctuations in the values of these and other non-U.S. currencies, which could have a material adverse effect on our results of operations.

We periodically buy and sell currencies or investment securities denominated in non-U.S. dollars in an attempt to match our non-U.S. dollar assets to our related non-U.S. dollar liabilities. We currently have no currency hedges in place but may implement hedges in the future. As part of our asset-liability matching strategy, we also consider the use of hedges when we become aware of probable significant losses that will be paid in non-U.S. currencies. However, it is possible that we will not successfully match our exposures or structure the hedges to effectively manage these risks.

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Acquisitions or strategic investments that we made or may make could turn out to be unsuccessful.

As part of our strategy, we have pursued and may continue to pursue growth through acquisitions and/or strategic investments in new businesses. The negotiation of potential acquisitions or strategic investments as well as the integration of an acquired business or new personnel could result in a substantial diversion of management resources. Successful integration will depend on, among other things, our ability to effectively integrate acquired businesses or new personnel into our existing risk management techniques, our ability to effectively manage any regulatory issues created by our entry into new markets and geographic locations, our ability to retain key personnel and other operational and economic factors. There can be no assurance that the integration of acquired business or new personnel will be successful or that the business acquired will prove to be profitable or sustainable. The failure to integrate successfully or to manage the challenges presented by the integration process may adversely impact our financial results. Acquisitions could involve numerous additional risks such as:

• potential losses from unanticipated litigation or levels of claims;

• the inability to generate sufficient revenue to offset acquisition costs;

• the value of assets related to acquisitions or new ventures may be lower than expected or may diminish due to credit defaults or changes in interest rates and liabilities assumed may be greater than expected;

• the assets and liabilities related to acquisitions or new ventures may be subject to foreign currency exchange rate fluctuation; and

• financial exposures in the event that sellers of the entities we acquire are unable or unwilling to meet their indemnification, reinsurance and other obligations to us.

Our ability to manage our growth through acquisitions or strategic investments will depend, in part, on our success in addressing these risks. Any failure by us to effectively implement our acquisitions or strategic investment strategies could have a material adverse effect on our business, financial condition or results of operations.

The Company faces risks related to operating at Lloyd's.

The Company faces exposure to the risks facing syndicates operating at Lloyd's which include, but are not limited to, the following risks which, alone or in combination, could have an adverse effect on the Company's business, financial condition and results of operations:

• having exposure to the Council of Lloyd's (the "Council") wide discretionary powers to regulate members of Lloyd's, including the Council's power to vary the method by which the capital solvency ratio is calculated;

• being subject to increased capital requirements due to changes in regulation;

• facing reputational issues arising from the actions of other Lloyd's syndicates;

• being subject to potential changes in business strategy due to requirements of the Lloyd's Franchise Board (which is responsible for the day-to-day management of the Lloyd's market);

• reduced underwriting capacity for the Company due to a reduction in the funds held in trust at Lloyd's (as a result of changes in the market value of investments or otherwise) to support underwriting activities;

• being required to cease or reduce underwriting if Lloyd's fails to satisfy the FCA's and the PRA's annual solvency test in any given year;

• having a reduced ability to trade in certain classes of business at current levels as a consequence of a downgrading of the Lloyd's market;

• being subject to additional or special levies imposed by the Council; and

• as a Lloyd's syndicate transacting certain types of business in the United States, being required by U.S. regulators to increase the level of funding required as minimum deposits for the protection of U.S. policyholders and, as a consequence, being required to make cash calls to meet claims payments and deposit funding obligations.

There may be conflicts of interest that arise from our relationships with BCGR and BCRH and its subsidiaries.

The Company, through BCML, provides services to the BCGR Cell (which serves as a segregated account for the benefit of BCGR) and to BCRH and its subsidiaries. In addition, The Company's subsidiary Blue Water Re is the sole source of collateralized reinsurance business for the BCGR Cell and is a significant source of business for BCRH and its subsidiaries. As of December 31, 2016, Endurance Holdings and Endurance Bermuda together owned 33.3% of BCRH and Endurance Bermuda owned 25.2% of BCGR, with third-party "non-controlling" investors owning the remainder of each entity.

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The Company provides reinsurance opportunities and makes investments on behalf of these affiliates that the Company determines are appropriate for them, provided that such business is in accordance with their respective underwriting guidelines. The Company primarily allocates those reinsurance opportunities that are made available to these affiliates on a proportional basis in accordance with the Company's allocation policies.

In addition, officers of the Company serve as Chairman, Chief Executive Officer and Chief Financial Officer of BCRH and as Chief Executive Officer of BCGR.

As a result, certain of our officers, BCML and Blue Water Re may have conflicts of interest between their duties to the Company and their duties to BCGR and BCRH and its subsidiaries.

Operational risks, including systems or human failures, are inherent in business, including ours, and could adversely affect our financial condition and results of operations.

We are subject to operational risks including fraud, employee errors, failure to document transactions properly or to obtain proper internal authorization, failure to comply with regulatory requirements or obligations under our agreements, information technology failures, or external events. Losses from these risks may occur from time to time and may be significant. As our business and operations grow more complex, we are exposed to more risk in these areas.

Our modeling, underwriting and information technology systems are critical to our success. Moreover, our proprietary technology and application systems have been an important part of our underwriting strategy and our ability to compete successfully. We have also licensed certain systems and data from third parties. We cannot be certain that we will have access to these, or comparable, service providers, or that our information technology or application systems will continue to operate as intended. While we have implemented disaster recovery and other business continuity plans, a defect or failure in our internal controls or information technology systems could result in reduced or delayed revenue growth, higher than expected losses, management distraction, or harm to our operations and/or our reputation. We believe appropriate controls and mitigation procedures are in place to prevent significant risk of defect in our internal controls and information technology systems, but internal controls provide only reasonable, not absolute, assurance as to the absence of errors or irregularities and any ineffectiveness of such controls and procedures could have a material adverse effect on our business.

Our efforts to develop products, expand in targeted markets or modify our business and strategic plans may not be successful and may create enhanced risks.

A number of our planned business initiatives involve developing new products or expanding existing products in targeted markets. To develop new products or markets, we may need to make substantial capital and operating expenditures, which may negatively impact our results in the near term. In addition, the demand for new products or in new markets may not meet our expectations. To the extent we are able to market new products or expand in new markets, our risk exposures may change and the data and models we use to manage such exposures may not be as sophisticated as those we use in existing markets or with existing products. This, in turn, could lead to losses in excess of expectations.

As part of our ongoing efforts to continually improve our performance, we regularly evaluate our business plans and strategies, which may result in changes to our business plans and initiatives, some of which may be material. We are subject to increasing risks related to our ability to successfully implement our evolving plans and strategies. Changing plans and strategies requires significant management time and effort, and may divert management's attention from our core operations and competencies. Moreover, modifications we undertake to our operations may not immediately result in improved financial performance. Therefore, risks associated with implementing or changing our business strategies and initiatives, including risks related to developing or enhancing the operations, controls and other infrastructure required for these strategies and initiatives, may not have a positive impact on our publicly reported results until many years after implementation. The risk that we may fail to have the ability to carry out our business plans may have an adverse effect on our long-term results of operations and financial condition.

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Technology breaches or failures, including but not limited to cyber security incidents, could disrupt business operations, result in the loss of critical and confidential information, and adversely impact our reputation and results of operations.

Global cyber security threats can range from uncoordinated individual attempts to gain unauthorized access to our information technology systems and those of our business partners or services providers to sophisticated and targeted measures known as advanced persistent threats. While we and our business partners and services providers employ measures to prevent, detect, address and mitigate these threats (including access controls, data encryption, vulnerability assessments, continuous monitoring of information technology networks and systems and maintenance of backup and protective systems), cyber security incidents, depending on their nature and scope, could potentially result in the misappropriation, destruction, corruption or unavailability of critical data and confidential or proprietary information (our own or that of third parties) and the disruption of business operations. Security breaches could expose us to a risk of loss or misuse of our information, litigation and potential liability. In addition, cyber incidents that impact the availability, reliability, speed, accuracy or other proper functioning of our critical information technology systems could have a significant impact on our operations, and potentially on our results. We may not have the resources or technical sophistication to anticipate or prevent rapidly evolving types of cyber attacks. A significant cyber incident, including system failure, security breach, disruption by malware or other damage could interrupt or delay our operations, result in a violation of applicable privacy and other laws, damage our reputation, cause a loss of customers or give rise to monetary fines and other penalties, which could be significant. It is possible that insurance policies we have in place would not entirely protect us in the event that we experienced a cyber security incident, interruption or widespread failure of our information technology systems. Furthermore, we have not secured insurance coverage designed to specifically protect us from an economic loss resulting from such events.

Since we are dependent on key executives, the loss of any of these executives or our inability to retain other key personnel could adversely affect our business.

Our success substantially depends upon our ability to attract and retain qualified employees and upon the ability of our senior management and other key employees to implement our business strategy. We believe there are only a limited number of available qualified executives in the business lines in which we compete. We rely substantially upon the services of our Chief Executive Officer. We believe we have been successful in attracting and retaining key personnel since our inception. The loss of any of their services or the services of other members of our management team or the inability to attract and retain other talented personnel could impede the further implementation of our business strategy, which could have a material adverse effect on our business. We do not currently maintain key man life insurance policies with respect to any of our employees.

Our business could be adversely affected by Bermuda employment restrictions.

We will need to continue to hire employees to work in Bermuda. Generally, under Bermuda law, non-Bermudians (other than spouses of Bermudians and individuals holding permanent resident certificates or working resident certificates) may not engage in any gainful occupation in Bermuda without the appropriate governmental standard work permit. Standard work permits can be obtained for a one-, two-, three-, four- or five-year period. Ten year permits are also available but these are generally only applicable where a company meets various criteria, including at least ten Bermudian staff, development programs for Bermudians, entry level position and equal pay between Bermudians and non-Bermudians. Where a standard work permit is being applied for, it is a requirement that the job must be advertised for three days (within an eight-day period) in a local Bermuda newspaper. All of our 26 Bermuda-based professional employees who require work permits have been granted permits by the Bermuda government. It is possible that we could lose the services of one or more of our key employees if we are unable to obtain or renew their work permits, which could have a material adverse effect on our business.

The pending Merger between the Company and Sompo is subject to conditions, including certain conditions that may not be satisfied, or satisfied on a timely basis, if at all. Failure to complete the Merger could have material and adverse effects on the Company.

The completion of the Merger is subject to the satisfaction or waiver of a number of conditions, including the receipt of required approvals from governmental regulators, which make the completion and timing of the completion of the Merger uncertain. In addition, regulators could impose additional requirements or obligations as conditions for their approvals, which may be burdensome and which may permit Sompo under the terms of the Merger Agreement to refuse to complete the Merger.

If the Merger is not completed on a timely basis, or at all, the Company's ongoing business may be adversely affected and, without realizing any of the benefits of having completed the Merger, the Company will be subject to a number of risks, including the following:

• The Company’s current stock price reflects a market assumption that the Merger will occur. If the Merger is not consummated, the investment goals of our shareholders may be materially different than those of our shareholders on a pre-Merger announcement basis.

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• Under certain circumstances, the Company may be required to pay a termination fee of $204.9 million and reimburse Sompo's expenses relating to the Merger up to $15.8 million;

• The Company may be required to pay significant costs relating to the Merger, such as legal, accounting, financial advisory and printing fees, whether or not the Merger is completed;

• Time and resources committed by the Company's management to matters relating to the Merger could otherwise have been devoted to the Company's existing business or to pursuing other beneficial opportunities;

• The Merger may not have been completed as a result of the occurrence of an event, change or other circumstances that have a material adverse effect on the Company’s business;

• The manner in which brokers, insurers, cedants and other third parties perceive the Company may be negatively impacted, which in turn could affect the ability of the Company to compete for or write new business or obtain renewals in the marketplace;

• The Company's ratings may be adversely affected, which could have an adverse effect on its business, financial condition and operating results; and

• The Company could be subject to litigation related to any failure to complete the Merger or related to any enforcement proceeding commenced against the Company to perform its obligations under the Merger Agreement.

The Company is subject to business uncertainties and contractual restrictions while the Merger is pending, which could adversely affect the Company's business and operations.

In connection with the pendency of the Merger, it is possible that some customers, suppliers and other persons with whom the Company has a business relationship may delay or defer certain business decisions or might decide to seek to terminate, change or renegotiate their relationships with the Company as a result of the Merger, which could negatively affect the Company's revenues, earnings and cash flows, as well as the market price of the Company's ordinary shares, regardless of whether the Merger is completed.

Under the terms of the Merger Agreement, the Company is subject to certain restrictions on the conduct of its business prior to completing the Merger, which may adversely affect its ability to execute certain of its business strategies, including the ability in certain cases to enter into contracts, acquire or dispose of assets, incur indebtedness or incur capital expenditures. Such limitations could negatively affect the Company's business and operations prior to the completion of the Merger.

Uncertainties associated with the Merger may cause a loss of management and other key employees and disrupt our business relationships, which could adversely affect our business.

Uncertainty about the effect of the Merger on our employees and our customers may have an adverse effect on our business. These uncertainties may impair our ability to attract, retain and motivate key personnel until the Merger is completed and for a period of time thereafter. Employee retention may be particularly challenging during the pendency of the Merger, as employees of the Company may experience uncertainty about their future roles with the combined company. We face additional uncertainties relating to the Merger, including that our business relationships may be subject to disruption as brokers, insurers, cedants, customers and other third parties attempt to negotiate changes in existing business relationships or consider entering into business relationships with parties other than the Company, Sompo or the combined company. If key employees depart or if our existing business relationships suffer, our results of operations may be adversely affected. The adverse effects of such disruptions could be further exacerbated by any delay in the completion of the Merger.

The Merger Agreement limits our ability to pursue alternatives to the Merger and may discourage other companies from trying to acquire us for greater consideration than what Sompo has agreed to pay.

The Merger Agreement contains provisions that make it more difficult for us to sell our business to a company other than Sompo. These provisions include a general prohibition on us soliciting any acquisition proposal or offer for a competing transaction, subject to limited exceptions. If we or Sompo terminate the Merger Agreement, we may in some circumstances be required to reimburse Sompo for its incurred out-of-pocket expenses (not to exceed $15.8 million) and, if we subsequently are, or agree to be acquired by another company, pay to Sompo a termination fee of $204.9 million. Further, our Board of Directors has agreed in the Merger Agreement, subject to limited exceptions, that it will not withdraw or modify in a manner adverse to Sompo its recommendation that our shareholders approve the Merger. These provisions might discourage a third party that has an interest in acquiring all or a significant part of the Company from considering or proposing an acquisition, or might result in

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a potential competing acquirer proposing to pay a lower price than it might otherwise have proposed to pay because of the added expense of the termination fee or the payment of expenses that may become payable in certain circumstances.

CORPORATE RISKS

There are provisions in our charter documents that may reduce or increase the voting rights of our ordinary shares.

The bye-laws of Endurance Holdings generally provide that any shareholder owning, directly, indirectly or, in the case of any U.S. person, by attribution, outstanding ordinary shares possessing more than 9.5% of the aggregate voting power of our ordinary shares will have their voting rights reduced so that they may not exercise more than 9.5% of the voting rights conferred by our ordinary shares. Under these provisions, certain shareholders may have their voting rights limited to less than one vote per share, while other shareholders may have voting rights in excess of one vote per share. Moreover, these provisions could have the effect of reducing the votes of certain shareholders who would not otherwise be subject to the 9.5% limitation by virtue of their direct share ownership. The bye-laws of Endurance Holdings provide that shareholders will be notified of their voting interests prior to any vote to be taken by the shareholders.

As a result of any reallocation of votes, your voting rights might increase above 5% of the aggregate voting power of the outstanding ordinary shares, thereby possibly resulting in your becoming a reporting person subject to Schedule 13D or 13G filing requirements under the Securities Exchange Act of 1934, as amended (the "Exchange Act"). In addition, the reallocation of your votes could result in your becoming subject to filing requirements under Section 16 of the Exchange Act.

We also have the authority to request information from any shareholder for the purpose of determining whether a shareholder’s voting rights are to be reallocated pursuant to the bye-laws. If a shareholder fails to respond to a request for information from us or submits incomplete or inaccurate information (after a reasonable cure period) in response to a request, we may, in our reasonable discretion, reduce or eliminate the shareholder's voting rights.

Provisions of Endurance Holdings' bye-laws may restrict the ability to transfer shares of Endurance Holdings.

Endurance Holdings' Board of Directors may decline to register a transfer of any ordinary shares if the relevant instrument of transfer (if any) is in favor of five persons or more jointly or is not properly executed, the transferred shares are not fully paid shares or if the transferor fails to comply with all applicable laws and regulations governing the transfer.

A shareholder may be required to sell its shares of Endurance Holdings.

The bye-laws of Endurance Holdings provide that we have the option, but not the obligation, to require a shareholder to sell its ordinary shares for their fair market value to us, to other shareholders or to third parties if we determine, based on the written advice of legal counsel, that failure to exercise our option would result in non-de minimis adverse tax, legal or regulatory consequences to us or certain U.S. persons as to which the shares held by such shareholder constitute controlled shares. In the latter case, our right to require a shareholder to sell its ordinary shares to us will be limited to the purchase of a number of ordinary shares that will permit avoidance of those adverse tax consequences.

A shareholder may be required to indemnify us for any tax liability that results from the acts of that shareholder.

The bye-laws of Endurance Holdings provide certain protections against adverse tax consequences to us resulting from laws that apply to the shareholders of Endurance Holdings. If a shareholder’s death or non-payment of any tax or duty payable by the shareholder, or any other act or thing involving the shareholder, causes any adverse tax consequences to us (i) the shareholder (or his executor or administrator) is required to indemnify us against any tax liability that we incur as a result, (ii) we will have a lien on any dividends or any other distributions payable to the shareholder by us to the extent of the tax liability and (iii) if any amounts not covered by our lien on dividends and distributions are owed to us by the shareholder as a result of our tax liability, we have the right to refuse to register any transfer of the shareholder's shares.

There are regulatory limitations on the ownership and transfer of our ordinary shares.

State laws in the United States and the United Kingdom require prior notices or regulatory agency approval of changes in control of an insurer or its holding company. The insurance laws of the domiciliary jurisdiction provide that no corporation or other person (except in certain jurisdictions an authorized insurer) may acquire control (whether direct or indirect) of a domestic insurance or reinsurance company unless it has given notice and obtained prior written approval of the appropriate regulatory agency. Any purchaser of 10% or more of our ordinary shares could become subject to such regulations and could be required to file certain notices and reports with the insurance commissioners or equivalent regulators of the domiciliary jurisdictions of our operating companies.

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U.S. persons who own our ordinary shares may have more difficulty in protecting their interests than U.S. persons who are shareholders of a U.S. corporation.

The Bermuda Companies Act, which applies to Endurance Holdings and Endurance Bermuda, differs in certain material respects from laws generally applicable to U.S. corporations and their shareholders. These differences include the manner in which directors must disclose transactions in which they have an interest, the rights of shareholders to bring class action and derivative lawsuits and the scope of indemnification available to directors and officers.

Anti-takeover provisions in our bye-laws could impede an attempt to replace or remove our directors, which could diminish the value of our ordinary shares.

Endurance Holdings’ bye-laws contain provisions that may make it more difficult for shareholders to replace directors even if the shareholders consider it beneficial to do so. In addition, these provisions could delay or prevent a change of control that a shareholder might consider favorable. Even in the absence of an attempt to effect a change in management or a takeover attempt, these provisions may adversely affect the prevailing market price of our ordinary shares if they are viewed as discouraging changes in management and takeover attempts in the future.

It may be difficult to enforce service of process and enforcement of judgments against us and our officers and directors.

Endurance Holdings is a Bermuda company and certain of its officers and directors are residents of jurisdictions outside the United States. A substantial portion of its assets and its officers and directors, at any one time, are or may be located in jurisdictions outside the United States. It may be difficult for investors to effect service of process within the United States on our directors and officers who reside outside the United States or to enforce against us or our directors and officers judgments of U.S. courts predicated upon civil liability provisions of the U.S. federal securities laws.

There is no treaty in force between the United States and Bermuda providing for the reciprocal recognition and enforcement of judgments in civil and commercial matters. As a result, whether a United States judgment would be enforceable in Bermuda against us or our directors and officers depends on whether the U.S. court that entered the judgment is recognized by the Bermuda court as having jurisdiction over us or our directors and officers, as determined by reference to Bermuda conflict of law rules.

In addition to and irrespective of jurisdictional issues, the Bermuda courts will not enforce a United States federal securities law that is either penal or contrary to Bermuda public policy. An action brought pursuant to a public or penal law, the purpose of which is the enforcement of a sanction, power or right at the instance of the state in its sovereign capacity, will not be entertained by a Bermuda court. Consequently, certain remedies available under the laws of U.S. jurisdictions, including certain remedies under U.S. federal securities laws, may not be available under Bermuda law or enforceable in a Bermuda court, as they may be contrary to Bermuda public policy. Further, no claim may be brought in Bermuda against us or our directors and officers in the first instance for violation of U.S. federal securities laws because these laws have no extraterritorial jurisdiction under Bermuda law and do not have force of law in Bermuda. A Bermuda court may, however, impose civil liability on us or our directors and officers if the facts alleged in a complaint constitute or give rise to a cause of action under Bermuda law.

TAXATION RISKS

We and our subsidiaries may be subject to U.S. tax, which may have a material adverse effect on our financial condition and results of operations.

Endurance Holdings and its non-U.S. subsidiaries intend to operate in such a manner that none of these companies will be deemed to be engaged in the conduct of a trade or business within the United States. Nevertheless, because definitive identification of activities which constitute being engaged in a trade or business in the United States is not provided by the Internal Revenue Code of 1986, as amended (the "Code"), regulations or court decisions, the U.S. Internal Revenue Service (the "IRS") might successfully contend that any of Endurance Holdings and its non-U.S. subsidiaries are/is engaged in a trade or business in the United States. If Endurance Holdings or any of its non-U.S. subsidiaries were engaged in a trade or business in the United States, and if any of Endurance Holdings' non-U.S. subsidiaries were to qualify for benefits under an applicable tax treaty with the United States, but such trade or business was attributable to a permanent establishment in the United States (or in the case of our Bermuda insurance subsidiaries, with respect to investment income, arguably, even if such income were not attributable to a permanent establishment), Endurance Holdings or any of such non-U.S. subsidiaries would be subject to U.S. federal income tax at regular corporate rates on the income that is effectively connected with the U.S. trade or business, plus an additional 30% "branch profits" tax in certain circumstances. If Endurance Holdings or any of its non-U.S. subsidiaries were subject to U.S. federal income tax, our financial condition and results of operations, as well as an investment in our shares, could be materially adversely affected.

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Holders of Endurance Holdings' ordinary shares or Preferred Shares who own 10% or more of our voting power may be subject to taxation under the controlled foreign corporation ("CFC") rules.

A 10% U.S. Shareholder (as defined below) of a foreign corporation that is considered a CFC (as defined below) for U.S. federal income tax purposes must include in gross income such 10% U.S. Shareholder's pro rata share of the CFC's income under subpart F of the Code ("subpart F income"), even if the subpart F income is not distributed. A foreign corporation is considered a CFC if 10% U.S. Shareholders own (directly, indirectly through foreign entities or constructively pursuant to the application of certain constructive ownership rules) more than 50% of the total combined voting power of all classes of voting stock of such foreign corporation, or the total value of all stock of such corporation. For purposes of taking into account insurance income, a CFC also includes a foreign corporation in which more than 25% of the total combined voting power or value of all classes of stock is owned (directly, indirectly through foreign entities or constructively pursuant to the application of certain constructive ownership rules) by 10% U.S. Shareholders, on any day during the taxable year of such corporation, if the gross amount of premiums or other consideration for the reinsurance or the issuing of insurance contracts exceeds 75% of the gross amount of all premiums or other consideration in respect of all risks. A "10% U.S. Shareholder" is a U.S. Person (as defined below) that owns (directly, indirectly through foreign entities or constructively pursuant to the application of certain constructive ownership rules) at least 10% of the total combined voting power of all classes of stock of a foreign corporation.

For purposes of this discussion, a "U.S. Person" means: (i) a citizen or resident of the United States, (ii) a partnership or corporation created or organized in or under the laws of the United States, or organized under the laws of any political subdivision thereof, (iii) an estate the income of which is subject to U.S. federal income taxation regardless of its source, (iv) a trust if either (x) a court within the United States is able to exercise primary supervision over the administration of the trust and one or more U.S. Persons have the authority to control the substantial decisions of the trust or (y) the trust has a valid election in effect to be treated as a U.S. Person for U.S. federal income tax purposes and (v) any other person or entity that is treated for U.S. federal income tax purposes as if it were one of the foregoing.

Due to the dispersion of Endurance Holdings' share ownership among holders, its bye-law provisions that impose limitations on the concentration of voting power of its shares entitled to vote and authorize Endurance Holdings to purchase such shares under certain circumstances, and other factors, no U.S. Person that owns shares in Endurance Holdings directly or indirectly through foreign entities should be subject to treatment as a 10% U.S. Shareholder of a CFC. It is possible, however, that the IRS could challenge the effectiveness of these provisions and that a court could sustain such a challenge. Accordingly, investors should consult their tax advisors regarding the application of the CFC rules to an investment in Endurance Holdings.

U.S. Persons who hold ordinary shares or Preferred Shares may be subject to U.S. income taxation on their pro rata share of our related party insurance income ("RPII").

The CFC rules apply to certain insurance and reinsurance companies that earn RPII. If the RPII rules were to apply to any of Endurance Holdings' non-U.S. subsidiaries, a U.S. Person who owns ordinary shares or Preferred Shares of Endurance Holdings directly or indirectly through foreign entities on the last day of the taxable year would be required to include in its income for U.S. federal income tax purposes the shareholder's pro rata share of such non-U.S. subsidiary's RPII for the entire taxable year, determined as if such RPII were distributed proportionately to such U.S. shareholders at that date regardless of whether such income is distributed. In addition, any RPII that is includible in the income of a U.S. tax-exempt organization would be treated as unrelated business taxable income. Although Endurance Holdings' non-U.S. subsidiaries intend to generally operate in a manner so as to qualify for certain exceptions to the RPII rules, there can be no assurance that these exceptions will be available. Accordingly, there can be no assurance that U.S. Persons who own ordinary shares or Preferred Shares will not be required to recognize gross income inclusions attributable to RPII.

U.S. Persons who dispose of our shares may be subject to U.S. federal income taxation at the rates applicable to ordinary income.

Section 1248 of the Code, in conjunction with the RPII rules, provides that if a shareholder who is a U.S. Person disposes of shares in a foreign insurance corporation that has RPII and in which U.S. Persons collectively own 25% or more of the shares, any gain from the disposition will generally be treated as ordinary income to the extent of the shareholder's share of the corporation's undistributed earnings and profits that were accumulated during the period that the shareholder owned the shares (whether or not such earnings and profits are attributable to RPII). In addition, such a shareholder will be required to comply with certain reporting requirements, regardless of the amount of shares owned by the shareholder. These rules should not apply to dispositions of ordinary shares or Preferred Shares because Endurance Holdings will not itself be directly engaged in the insurance business. The RPII provisions, however, have not been interpreted by the courts or the U.S. Treasury Department, and regulations interpreting the RPII provisions of the Code exist only in proposed form. Accordingly, the IRS might interpret the proposed regulations in a different manner and the applicable proposed regulations may be promulgated in final form in a manner that would cause these rules to apply to dispositions of our ordinary shares and Preferred Shares.

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U.S. Persons who hold ordinary shares or Preferred Shares will be subject to adverse tax consequences if we are considered a passive foreign investment company ("PFIC") for U.S. federal income tax purposes.

A foreign corporation will generally be considered a PFIC during a given year if (i) 75% or more of its gross income constitutes "passive income" or (ii) 50% or more of its assets produce passive income. For purposes of the PFIC determination, passive income generally includes interest, dividends, annuities and other investment income. The PFIC statutory provisions contain an express exception for income derived in the active conduct of an insurance business by a corporation which is predominantly engaged in an insurance business. The PFIC statutory provisions also contain a look through rule stating that, for purposes of determining whether a foreign corporation is a PFIC, such foreign corporation shall be treated as if it received directly its proportionate share of the income and as if it held its proportionate share of the assets of any other corporation in which it owns at least 25% by value of the shares. While no explicit guidance is provided by the statutory language, under this look-through rule Endurance Holdings should be deemed to own the assets and to have received the income of its insurance subsidiaries directly for purposes of determining whether it qualifies for the insurance exception.

We believe that we should not be considered a PFIC for U.S. federal income tax purposes for the year ended December 31, 2016. Moreover, we do not expect to conduct our activities in a manner that would cause us to become a PFIC in the future. There are currently no final regulations in effect regarding the application of the PFIC rules to an insurance company and, in particular, there is no definitive authority as to how the insurance business exception should be interpreted. Proposed regulations, however, were issued that are intended to clarify the circumstances under which investment income earned by foreign insurance companies is derived in the active conduct of an insurance business for purposes of the PFIC tests. It is uncertain if, when and in what form the proposed regulations will be finalized, and if, when or in what form any additional guidance will be provided by the IRS regarding the application of the PFIC provisions to foreign insurance companies, or if enacted, whether such guidance would have retroactive effect. Due to these legal uncertainties, there can be no assurance that the IRS will not challenge our position that we should not be a PFIC or that a court will not sustain such challenge. Accordingly, it is possible that we could be deemed a PFIC by the IRS or a court for the 2016 taxable year or any future year. If we were considered a PFIC, it could have material adverse tax consequences for an investor that is subject to U.S. federal income taxation, including subjecting the investor to a greater tax liability than might otherwise apply or subjecting the investor to tax on amounts in advance of when tax would otherwise be imposed. In addition, if we were considered a PFIC, dividends paid in respect of our shares would not be eligible for the preferential tax rate applicable to "qualified dividend income" received by certain non-corporate U.S. shareholders.

Changes to U.S. tax legislation could have an adverse impact on us or our shareholders.

The U.S. Congress and recent U.S. Presidents have offered from time-to-time proposals intended to eliminate certain perceived tax advantages of companies (including insurance and reinsurance companies) that have legal domiciles outside the United States but have certain U.S. connections. Such proposals include the denial of deductions for certain non-taxed reinsurance premiums paid to affiliates by U.S. insurance companies, the treatment of foreign corporations as U.S. corporations for U.S. federal tax purposes under certain circumstances and changes to existing laws and regulations governing cross-border transactions and low tax jurisdictions. It is uncertain if, when or in what form any such proposals may be enacted and whether such proposals, if enacted, would have retroactive effect. Enactment of some versions of prior proposed legislation as well as other changes in U.S. tax laws, regulations and interpretations of any tax law changes to address these issues could adversely affect the results of our operations and financial condition and could have a material adverse effect on our business, financial condition or results of operations.

The Organization for Economic Cooperation and Development ("OECD") and the European Union ("EU") are considering measures that might increase our taxes and reduce our net income.

The OECD has published reports and launched a global dialogue among member and non-member countries on measures to limit harmful tax competition. These measures are largely directed at counteracting the effects of preferential tax regimes in countries around the world. In the OECD's periodic progress reports, Bermuda has not been listed as an uncooperative tax haven jurisdiction because it had previously committed to eliminate harmful tax practices and to embrace international tax standards for transparency, exchange of information and the elimination of any aspects of the regimes for financial and other services that attract business with no substantial domestic activity. Bermuda was reported as being largely compliant with the OECD's international tax standards on transparency and exchange of information in the OECD's 2015 Tax Transparency Report on Progress. Other "largely compliant" jurisdictions include Germany, the United Kingdom and the United States. Bermuda has announced that it will adopt Country-by-Country Reporting Regime following the OECD recommendations to address base erosion and profit shifting ("BEPS").

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In addition, on January 28, 2016 the EU Commission announced an Anti-Tax Avoidance Package containing measures to regulate certain elements of tax planning further and to boost tax transparency for consideration by the European parliament and Council. On July 12, 2016 the Economic and Financial Affairs Council adopted a Council Directive forming part of the EU Anti-Tax Avoidance Package and building upon the OECD BEPS recommendations. EU Member States are required to implement the Directive into their domestic laws by December 31, 2018 (or December 31, 2019 in the case of provisions on exit taxation). Further changes, including to the Directive, have been proposed as part of an EU corporate tax reform package published on October 25, 2016.

We are currently not able to provide a definitive view on whether any changes arising from any proposals introduced in connection with the possible new OECD and EU measures will subject us to additional taxes or otherwise affect our operations.

We may become subject to taxes in Bermuda after March 31, 2035, which may have a material adverse effect on our financial condition.

The Bermuda Minister of Finance, under the Exempted Undertakings Tax Protection Act 1966, as amended, of Bermuda, has given Endurance Holdings and Endurance Bermuda an assurance that if any legislation is enacted in Bermuda that would "impose tax computed on profits or income or computed on any capital asset, gain or appreciation, or any tax in the nature of estate duty or inheritance tax, then the imposition" any such tax will not be applicable to Endurance Holdings, Endurance Bermuda or any of their respective operations, shares, debentures or other obligations until March 31, 2035. It is possible that after March 31, 2035 we may be subject to Bermuda taxes.

Item 1B. Unresolved Staff Comments

The Company has no outstanding, unresolved comments from the SEC staff.

Item 2. Properties

The Company leases office space in Pembroke, Bermuda where the Company's principal executive office is located. Additionally, the Company and its subsidiaries lease office space in the United States, the United Kingdom, Switzerland and Singapore sufficient for the operation of its business. We renew and enter into new leases in the ordinary course of business. For further discussion of our leasing commitments at December 31, 2016, please see Note 12, "Commitments and Contingencies" to our Audited Consolidated Financial Statements.

Item 3. Legal Proceedings

We are party to various legal proceedings generally arising in the normal course of our business. While any proceeding contains an element of uncertainty, we do not believe that the eventual outcome of any litigation or arbitration proceeding to which we are presently a party could have a material adverse effect on our financial condition, results of operations or business. Pursuant to our insurance and reinsurance agreements, disputes are generally required to be finally settled by arbitration.

Item 4. Mine Safety Disclosures

Not Applicable.

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PART II

Item 5. Market for the Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities

Market Information

Our ordinary shares are publicly traded on the New York Stock Exchange ("NYSE") under the symbol "ENH." The following table sets forth, for the fiscal quarters and periods indicated, the high and low closing sale price per ordinary share as reported on the NYSE for the two most recent fiscal years:

	High		Low
2016
First quarter	$	65.69	$	59.35
Second quarter	$	68.85	$	62.89
Third quarter	$	68.68	$	64.49
Fourth quarter	$	92.60	$	64.96
2015
First quarter	$	64.72	$	59.17
Second quarter	$	66.51	$	60.38
Third quarter	$	69.49	$	60.54
Fourth quarter	$	66.96	$	60.93

Number of Holders of Ordinary Shares

The approximate number of record holders of our ordinary shares as of February 23, 2017 was 291, not including beneficial owners of shares registered in nominee or street name.

Dividends

We paid a quarterly dividend of $0.38 per ordinary share in each of the four quarters of 2016 (2015 - $0.35). Our Board of Directors reviews our ordinary share dividend each quarter and determines the amount, if any, of each dividend at that time. Among the factors considered by the Board of Directors in determining the amount of each dividend are the results of operations and the capital requirements, growth and other characteristics of our businesses. The declaration and payment of future dividends is also subject to certain legal, regulatory and other restrictions.

Endurance Holdings is a holding company and has no direct operations. The ability of Endurance Holdings to pay dividends or distributions depends almost exclusively on the ability of its subsidiaries to pay dividends to Endurance Holdings. Under Bermuda law, Endurance Bermuda may not declare or pay a dividend if there are reasonable grounds for believing that Endurance Bermuda is, or would after the payment be, unable to pay its liabilities as they become due, or the realizable value of Endurance Bermuda’s assets would thereby be less than the aggregate of its liabilities and its issued share capital and share premium accounts. Further, Endurance Bermuda, as a regulated insurance company in Bermuda, is subject to additional regulatory restrictions on the payment of dividends or other distributions. As of December 31, 2016, the maximum amount of dividend distributions that Endurance Bermuda could pay to Endurance Holdings under applicable insurance and Bermuda Companies Act regulations without prior regulatory approval was $1,109.3 million. As of December 31, 2016, Endurance U.K. was precluded by regulatory restrictions from declaring or distributing dividends in 2017. At December 31, 2016, ECCL did not have assets available for distribution. As of December 31, 2016, Endurance Assurance, Endurance American, Endurance Risk Solutions and Endurance American Specialty did not have earned surplus and thus were precluded from dividend distributions in 2017 without prior regulatory approval. As of December 31, 2016, American Agri-Business (with notice to the Texas Department of Insurance) could pay $3.3 million of dividends without prior regulatory approval.

Our credit facility prohibits Endurance Holdings from declaring or paying any dividends if a default or event of default has occurred and is continuing at the time of such declaration or payment or would result from such declaration or payment. In addition, the terms of our Preferred Shares prohibit dividends from being declared or paid on ordinary shares unless the full dividends for the latest completed dividend period on all outstanding Preferred Shares have been declared and paid.

For a description of working capital restrictions and other limitations upon the payment of dividends, see Item 1, "Business – Regulatory Matters," Item 7, "Management's Discussion and Analysis of Financial Condition and Results of

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Operations – Liquidity and Capital Resources," and Note 18, "Statutory requirements and dividend restrictions" to the Company's Audited Consolidated Financial Statements.

Recent Sales of Unregistered Securities

None.

Purchase of Equity Securities by Issuer and Affiliated Purchasers

At a meeting on February 25, 2016, the Board of Directors of the Company authorized the repurchase of up to a total of 5,000,000 ordinary shares and share equivalents through February 28, 2018, superseding all previous authorizations. The Company did not purchase any shares or share equivalents in the fourth quarter of 2016.

Performance Graph

The following performance graph and related information shall not be deemed to be "soliciting material" or to be "filed" with the Securities and Exchange Commission, nor shall such information be incorporated by reference into any future filing under the Securities Act of 1933 or Securities Exchange Act of 1934, each as amended, except to the extent that the Company specifically incorporates it by reference into such filing.

The following graph illustrates the cumulative 5-year total return to shareholders, including reinvestment of dividends, on the Company’s ordinary shares compared with such return for the (i) Standard & Poor's ("S&P") 500 Composite Stock Price Index and (ii) S&P Property & Casualty Industry Group Stock Price Index, in each case measured during the period from December 31, 2011 to December 31, 2016. During this period, the cumulative total return on the Company's ordinary shares was 174.01%, the cumulative total return for the S&P 500 Composite Stock Price Index was 98.18% and the cumulative total return for the S&P Property & Casualty Industry Group Stock Price Index was 143.65%.

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	12/11	12/12	12/13	12/14	12/15	12/16
Endurance Specialty Holdings Ltd.	100.00	107.12	162.42	169.84	185.70	274.01
S&P 500	100.00	116.00	153.58	174.60	177.01	198.18
S&P Property & Casualty Insurance	100.00	120.11	166.10	192.25	210.57	243.65

The stock price performance included in this graph is not necessarily indicative of future stock price performance.

Item 6. Selected Financial Data

The following table sets forth our selected consolidated financial information for the years ended and as of the dates indicated. As described in Note 1 to our Audited Consolidated Financial Statements included elsewhere in this Annual Report on Form 10-K, our Audited Consolidated Financial Statements include the accounts of Endurance Holdings, Endurance Bermuda, BCML, Endurance U.K., Syndicate 5151, Endurance Assurance, Endurance American, Endurance American Specialty, Endurance Risk Solutions, ARMtech, BCRH and BCGR Cell, as well as all of the other direct or indirect wholly-owned subsidiaries of Endurance Holdings.

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We derived the following selected consolidated financial information for the years ended December 31, 2016, 2015, 2014, 2013 and 2012 from our Audited Consolidated Financial Statements and related notes. These historical results are not necessarily indicative of results to be expected from any future period.

You should read the following selected consolidated financial information along with the information contained in this Form 10-K, including Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations" and the Audited Consolidated Financial Statements and related notes included elsewhere in this Form 10-K.

For the years ended December 31,	2016			2015			2014			2013			2012
Selected Income Statement Data:
Gross premiums written	$	4,202,170		$	3,320,861		$	2,894,076		$	2,665,244		$	2,549,026
Net premiums written	2,369,935			1,950,470			1,934,206			2,048,933			2,029,495
Net premiums earned	2,363,660			1,978,453			1,863,978			2,016,484			2,013,900
Net investment income	176,590			113,826			131,543			166,216			173,326
Net realized and unrealized (losses) gains	(12,419		)	12,660			14,283			15,164			72,139
Net impairment losses recognized in earnings	(10,769		)	(3,715		)	(625		)	(1,616		)	(847		)
Net losses and loss expenses	1,321,052			917,108			970,162			1,219,684			1,520,995
Acquisition expenses	460,483			347,885			319,513			304,430			303,179
General and administrative expenses	248,146			259,791			247,387			236,873			211,763
Corporate expenses	51,706			114,429			66,200			58,033			23,926
Net income	381,147			355,111			348,450			311,915			162,516
Net income attributable to non-controlling interests	(24,130		)	(11,016		)	—			—			—
Net income available to Endurance Holdings	357,017			344,095			348,450			311,915			162,516
Preferred dividends	23,799			32,750			32,750			32,750			32,750
Net income available to Endurance Holdings' common and participating shareholders	333,218			311,345			315,700			279,165			129,766
Per Share Data:
Dividends declared and paid per common share	$	1.52		$	1.40		$	1.36		$	1.28		$	1.24
Basic earnings per common share	$	4.94		$	5.74		$	7.07		$	6.37		$	3.00
Diluted earnings per common share	$	4.93		$	5.73		$	7.06		$	6.37		$	3.00
Weighted average number of common shares outstanding:
Basic	65,992			52,707			43,368			42,818			42,568
Diluted	66,135			52,829			43,415			42,818			42,602
As of December 31,	2016			2015			2014			2013			2012
Selected Balance Sheet Data:
Cash and investments	$	8,960,515		$	8,945,156		$	6,719,889		$	6,574,787		$	6,638,942
Total assets	14,122,861			13,241,525			9,640,684			8,973,097			8,789,035
Reserve for losses and loss expenses	4,905,138			4,510,415			3,846,859			4,002,259			4,240,876
Reserve for unearned premiums	1,994,676			1,789,148			1,254,519			1,018,851			965,244
Debt	705,292			717,650			523,617			522,453			521,402
Preferred stock, Series A non-cumulative	—			—			8,000			8,000			8,000
Preferred stock, Series B non-cumulative	—			9,200			9,200			9,200			9,200
Preferred stock, Series C non-cumulative	9			9			—			—			—
Total shareholders' equity available to Endurance Holdings	4,882,439			4,856,262			3,185,182			2,886,549			2,710,597
Selected Ratios (based on U.S. GAAP income statement data):
For the years ended December 31,	2016			2015			2014			2013			2012
Net loss ratio(a)	55.9		%	46.4		%	52.1		%	60.5		%	75.5		%
Acquisition expense ratio(b)	19.5		%	17.6		%	17.1		%	15.1		%	15.1		%
General and administrative expense ratio(c)	12.7		%	18.9		%	16.8		%	14.6		%	11.7		%
Combined ratio(d)	88.1		%	82.9		%	86.0		%	90.2		%	102.3		%

(a) The net loss ratio is calculated by dividing net losses and loss expenses by net premiums earned.

(b) The acquisition expense ratio is calculated by dividing acquisition expenses by net premiums earned.

(c) The general and administrative expense ratio includes general and administrative expenses and corporate expenses. The general and administrative expense ratio is calculated by dividing general and administrative expenses and corporate expenses by net premiums earned.

(d) The combined ratio is the sum of the net loss ratio, the acquisition expense ratio and the general and administrative expense ratio. Our historical combined ratio may not be indicative of future underwriting performance.

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Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of the Company's financial condition and results of operations should be read in conjunction with the Company's consolidated financial statements and related notes included in this Form 10-K.

Some of the information contained in this discussion and analysis or set forth elsewhere in this Form 10-K, including information with respect to the Company's plans and strategy for its business and statements regarding marketplace conditions and trends, includes forward-looking statements that involve risk and uncertainties. Please see the "Cautionary Statement Regarding Forward-Looking Statements" in this Form 10-K for more information on factors that could cause actual results to differ materially from the results described in or implied by any forward-looking statements contained in this discussion and analysis. You should review the "Risk Factors" set forth in this Form 10-K for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained herein.

Executive Overview

Endurance Specialty Holdings Ltd. ("Endurance Holdings") was organized as a Bermuda holding company on June 27, 2002. Endurance Holdings has nine wholly-owned operating subsidiaries:

• Endurance Specialty Insurance Ltd. ("Endurance Bermuda"), domiciled in Bermuda with branch offices in Switzerland and Singapore;

• Blue Capital Management Ltd. ("BCML"), domiciled in Bermuda, manager of Blue Water Re Ltd. ("Blue Water Re") and Blue Water Re II Ltd. ("Blue Water Re II"), domiciled in Bermuda;

• Endurance Assurance Corp. ("Endurance Assurance," formerly Endurance Reinsurance Corporation of America), domiciled in Delaware;

• Endurance Worldwide Insurance Limited ("Endurance U.K."), domiciled in England with a branch office in Switzerland;

• Endurance at Lloyd's Limited ("Endurance at Lloyd's"), managing agent for Lloyd's Syndicate 5151 ("Syndicate 5151"), domiciled in England;

• Endurance American Insurance Company ("Endurance American"), domiciled in Delaware;

• Endurance American Specialty Insurance Company ("Endurance American Specialty"), domiciled in Delaware;

• Endurance Risk Solutions Assurance Co. ("Endurance Risk Solutions"), domiciled in Delaware; and

• American Agri-Business Insurance Company ("American Agri-Business"), domiciled in Texas and managed by ARMtech Insurance Services, Inc. (together with American Agri-Business, "ARMtech").

Endurance Holdings and its wholly-owned subsidiaries are collectively referred to in this discussion and analysis as the "Company."

Through its operating subsidiaries based in Bermuda, the United States and the United Kingdom, the Company focuses on underwriting specialty lines of personal and commercial property and casualty insurance and reinsurance on a global basis. The Company's portfolio of specialty lines of business is organized into two business segments – Insurance and Reinsurance.

In the Insurance segment, the Company writes agriculture, casualty and other specialty, professional lines, and property, marine/energy and aviation insurance. In the Reinsurance segment, the Company writes catastrophe, property, casualty, professional lines, and specialty reinsurance.

The Company's Insurance and Reinsurance segments both include property related coverages, which provide insurance or reinsurance of an insurable interest in tangible property for property loss, damage, or loss of use. In addition, the Company's Insurance and Reinsurance segments include various casualty insurance and reinsurance coverages, which are primarily concerned with the losses caused by injuries to third parties, i.e., not the insured, or to property owned by third parties and the legal liability imposed on the insured resulting from such injuries.

Proposed Acquisition with Sompo

On October 5, 2016, the Company entered into an agreement and plan of merger (the "Merger Agreement") with Sompo and Volcano International Limited, an indirect, wholly-owned subsidiary of Sompo ("Merger Sub"). The Merger Agreement provides for, subject to the satisfaction or waiver of specified conditions, the merger of Merger Sub with and into the Company (the “Merger”), with the Company surviving the Merger as an indirect, wholly-owned subsidiary of Sompo. At the effective

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time of the Merger, each issued and outstanding ordinary share of the Company will be automatically canceled and converted into the right to receive $93.00 in cash, without interest.

The Merger was approved at a special general meeting of the Company's ordinary and preferred shareholders held on January 27, 2017. The Merger is expected to close as soon as practicable following the satisfaction of customary closing conditions including, but not limited to, regulatory approvals and the absence of any law, injunction or order restraining the Merger. There can be no assurance that the Merger will occur.

Under the terms of the Merger Agreement, the aggregate consideration for the Merger will be approximately $6,304.0 million in cash. The purchase will be financed by Sompo from existing sources of liquidity and supplementary facilities. If the Merger is terminated under certain circumstances, the Company is obligated to pay Sompo a cash termination fee of $204.9 million together with Sompo's expenses related to the Merger up to a cap of $15.8 million. The Company is contractually obligated to pay investment banking fees upon the closing of the Merger.

Acquisition of Montpelier

On March 31, 2015, the Company announced the signing of a definitive agreement and plan of merger (the "Merger Agreement") with Montpelier Re Holdings Ltd. ("Montpelier") and Millhill Holdings Ltd., a direct, wholly-owned subsidiary of the Company ("Merger Sub"), under which Endurance Holdings, through Merger Sub, acquired all of the outstanding common shares of Montpelier. The acquisition of Montpelier was completed on July 31, 2015 and Merger Sub was merged into Endurance Holdings on July 31, 2015.

Prior to the closing of the acquisition, Montpelier was a publicly traded company listed on the New York Stock Exchange and headquartered in Bermuda. As of the close of trading on July 31, 2015, the common shares of Montpelier ceased trading. Montpelier, through its operating subsidiaries, was a provider of global property and casualty reinsurance and insurance products.

The aggregate consideration for the acquisition of Montpelier consisted of the issuance of 20.7 million Endurance Holdings common shares valued at $1.4 billion, 841,926 Endurance Holdings restricted share units with an aggregate fair value of $33.3 million assigned as purchase consideration, and $451.1 million of cash. The cash consideration was funded through a dividend of $9.89 per Montpelier common share paid by Montpelier to its common shareholders prior to the closing of the acquisition.

The Company's consolidated statements of income and comprehensive income for the year ended December 31, 2015 include the results of operations of Montpelier for the period from August 1, 2015 through December 31, 2015.

As part of the acquisition of Montpelier, the Company acquired Montpelier's Lloyd's of London operations.

Also as part of the acquisition of Montpelier, the Company acquired Montpelier's collateralized reinsurance and third party asset management operations operated under the name "Blue Capital" (Blue Capital is a registered trademark of the Company), which includes BCML, a wholly-owned Bermuda subsidiary that provides investment and insurance management services to the Blue Capital vehicles, including Blue Water Re and Blue Water Re II, wholly-owned Bermuda-based special purpose insurers licensed under the Insurance Act 1978 of Bermuda, as amended and its related regulations (the "Bermuda Insurance Act") that provide collateralized property catastrophe reinsurance coverage and related products. Blue Capital was launched in 2012 as an asset management platform offering a range of catastrophe reinsurance-linked investment products to institutional and retail investors.

Effective December 29, 2015, Montpelier Reinsurance Ltd., a wholly-owned Bermuda domiciled Class 4 insurer ("Montpelier Re"), merged with and into Endurance Bermuda with Endurance Bermuda as the surviving company.

Endurance Holdings and Endurance Bermuda together hold a 33.3% interest in Blue Capital Reinsurance Holdings Ltd. ("BCRH"). BCRH is a Bermuda-based exempted limited liability holding company managed by BCML that provides fully-collateralized property catastrophe reinsurance and invests in various insurance-linked securities through BCRH's wholly-owned Bermuda-based subsidiaries, Blue Capital Re. Ltd. ("Blue Capital Re") and Blue Capital Re ILS Ltd. ("Blue Capital Re ILS"). Blue Capital Re is a Class 3A insurer licensed under the Bermuda Insurance Act. BCRH's shares are listed on the New York Stock Exchange and the Bermuda Stock Exchange.

Endurance Bermuda holds a 25.2% interest in Blue Capital Global Reinsurance Fund Limited ( "BCGR") is a closed-ended mutual fund incorporated in Bermuda and managed by BCML that serves as the feeder fund for the Blue Capital Global Reinsurance SA-I cell ("BCGR Cell"). BCGR's shares are listed on the Specialist Fund Market of the London Stock Exchange and on the Bermuda Stock Exchange.

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The Company is entitled to receive management and performance fees from BCRH and the BCGR Cell for the services that it performs for these entities through BCML.

Business and Accounting Factors

The Company's results of operations are affected by the following business and accounting factors:

Revenues. The Company derives its revenues primarily from premiums from its insurance policies and reinsurance contracts. The premiums the Company charges for the risks assumed are priced based on many assumptions and are a function of the amount and type of policies and contracts the Company writes as well as prevailing market prices, and, in the case of agricultural insurance contracts, federally mandated pricing and commodity price levels. The Company prices these risks before its ultimate costs are known, which may extend many years into the future.

The Company's revenues also include income generated from its investment portfolio. The Company's investment portfolio is comprised of fixed maturity investments, short-term investments and equity securities that are held as either trading or available for sale and other investments, comprised of alternative funds that are accounted for under the equity method of accounting. In accordance with generally accepted accounting principles in the United States ("U.S. GAAP"), trading securities are carried at fair value with unrealized gains and losses recognized through earnings while the available for sale investments are carried at fair value with unrealized gains and losses included on the Company's balance sheet in accumulated other comprehensive loss as a separate component of shareholders' equity. If unrealized losses are considered to be other-than-temporary due to the Company's intent to sell or requirement to sell such securities, or credit related factors, such losses are included in earnings as net impairment losses recognized in earnings. For other investments, the Company increases or decreases the value of these investments for the Company's share of income or loss, less dividends, through net investment income.

Expenses. The Company's expenses consist primarily of losses and loss expenses, acquisition expenses, interest expense, amortization of intangibles, general and administrative expenses and corporate expenses. Losses and loss expenses are estimated by management and reflect management's best estimate of ultimate losses and loss adjustment costs arising during the current reporting period and revisions of prior period estimates. The Company records losses and loss expenses based on an actuarial analysis of the estimated losses the Company expects to be reported on policies and contracts written. The ultimate losses and loss expenses will depend on the actual costs to settle claims. Acquisition expenses consist of commissions and brokerage expenses that are typically a percentage of the premiums on insurance policies or reinsurance contracts successfully written. General and administrative expenses consist primarily of personnel expenses and general operating expenses directly attributable to the Company's insurance and reinsurance operations. Corporate expenses are expenses not allocated directly to the insurance and reinsurance operations.

Marketplace Conditions and Trends. In general, management believes operating conditions continued to be competitive in both the insurance and reinsurance markets in which the Company operated in 2016. In most classes of property and casualty business, the Company experienced competitive pricing pressure due to the relatively high levels of underwriting capacity and recent favorable loss trends, particularly in catastrophe exposed property insurance and reinsurance, where rates have declined. In the Company's agriculture insurance business, pricing was relatively stable across the portfolio, although the underlying exposure base has varied with commodity price movements. The Company continued to adhere to its underwriting standards by declining business when pricing, terms and conditions did not meet the Company's underwriting criteria.

In 2017, management believes the following four primary influences may affect the market for the Company's insurance and reinsurance products – the continuation of the challenging global economy, continued pricing competition in most of the markets in which the Company operates, continued volatility in agriculture commodity prices, and a low interest rate environment. The United States and other markets around the world have continued to experience unsettled economic conditions, including high levels of unemployment, significant governmental regulation initiatives and continued uncertainty in the financial markets. Although some economies are slowly recovering, the lower levels of economic activity are likely to continue to suppress growth in demand for insurance and reinsurance. In addition, increased capital investment and new forms of reinsurance in the industry are likely to have a continuing negative impact on pricing, particularly in catastrophe exposed property insurance and reinsurance. This is likely to result in a continued competitive global insurance and reinsurance market in 2017. The Company's agriculture insurance business will be influenced by the volatility of agriculture commodity prices, which could lead to decreased premium and risk exposure levels, which may be partially offset by higher demand for agriculture insurance due to recent yield and price volatility. Lastly, the current low interest rate environment may result in a lower appetite for longer duration risks that are not adequately priced as there will be reduced investment earnings from underwriting cash flows.

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At this time, the Company cannot predict with any reasonable certainty whether and to what extent current marketplace conditions and trends will persist in the future.

Critical Accounting Estimates

The Company’s consolidated financial statements contain certain amounts that are inherently subjective in nature and require management to make assumptions and best estimates to determine the reported values and related disclosures. Management considers an accounting estimate to be critical if:

• it requires assumptions to be made that were uncertain at the time the estimate was made; and

• changes in the estimate or different estimates that could have been selected could have a material impact on the Company's consolidated results of operations or financial condition.

If factors such as those described in the "Risk Factors" section in this Form 10-K cause actual events or results to differ materially from management's underlying assumptions or estimates, there could be a material adverse effect on the Company's results of operations, financial condition and liquidity.

Management believes that the following critical accounting policies affect significant estimates used in the preparation of its consolidated financial statements:

Premiums and Related Expenses. The Company's insurance premiums are earned pro rata over the terms of the applicable risk period specified in the insurance policy. The Company's insurance policies cover losses occurring or claims made during the term of the policy. Generally, the Company receives a fixed premium that is identified in the policy and is recorded on the inception date of the contract or when premiums are determinable and earned evenly over the policy term. This premium will generally only adjust if the underlying insured values adjust. Accordingly, the Company monitors the underlying insured values and records additional or return premiums in the period in which amounts are reasonably determinable. For the Company's agriculture insurance line, premiums are determined based on estimated acreage planted combined with the base commodity price for the insured crops. Adjustments are made to the agriculture premium estimates as acreage reporting and claims adjusting occurs. Insurance premiums written accounted for 61%, 63%, and 59% of the Company's gross premiums written during the years ended December 31, 2016, 2015, and 2014, respectively.

The Company's reinsurance premiums are earned in proportion to the amount of reinsurance protection provided over the applicable risk period established in the reinsurance contract. Reinsurance contracts written on a losses occurring basis cover losses which occur during the term of the reinsurance contract, typically 12 months. Accordingly, the Company earns the premium on a losses occurring reinsurance contract evenly over the reinsurance contract term. Losses occurring reinsurance contracts accounted for approximately 19%, 16%, and 20% of the Company's gross premiums written during the years ended December 31, 2016, 2015, and 2014, respectively. Reinsurance contracts written on a policies attaching basis cover losses from the underlying insurance policies incepting during the terms of the reinsurance contracts. Losses under a policies attaching reinsurance contract may occur after the end date of the reinsurance contract, so long as they are losses from policies which began during the reinsurance contract period. The Company typically earns the premiums for policies attaching reinsurance contracts over a 24 month period in proportion to the amount of reinsurance protection provided to reflect the extension of the risk period past the term of the contract and the varying levels of reinsurance protection provided during the reinsurance contract period. Policies attaching reinsurance contracts accounted for approximately 20%, 21%, and 21% of the Company's gross premiums written during the years ended December 31, 2016, 2015, and 2014, respectively.

In addition to the applicable risk period, the Company's estimate of its reinsurance premiums written is based on the type of reinsurance contracts underwritten. For excess of loss reinsurance contracts, the deposit premium, as defined in the contract, is generally considered to be the best estimate of the reinsurance contract's written premium at inception. The Company earns reinstatement premiums upon the occurrence of a loss under the reinsurance contract. Reinstatement premiums are calculated in accordance with the contract terms based upon the ultimate loss estimate associated with each contract. Excess of loss reinsurance contracts accounted for approximately 18%, 16%, and 19% of the Company's gross premiums written during the years ended December 31, 2016, 2015, and 2014, respectively. For proportional reinsurance contracts, the Company estimates premiums, commissions and related expenses based on broker and ceding company estimates. In addition to broker and ceding company estimates, the Company's management also utilizes its judgment in establishing proportional reinsurance contract premium estimates after considering the following factors:

• the ceding company's historical premium versus projected premium;

• the ceding company's history of providing accurate estimates;

• anticipated changes in the marketplace and the ceding company's competitive position therein;

• reported premiums to date; and

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• correspondence and communication between the Company and its brokers, intermediaries and ceding companies.

Proportional reinsurance contracts accounted for approximately 21%, 21%, and 22% of the Company's gross premiums written during the years ended December 31, 2016, 2015, and 2014, respectively.

Premiums on the Company's excess of loss and proportional reinsurance contracts are estimated at the time the business is underwritten. Accordingly, this is the amount the Company records as written premium in the period the reinsurance contracts are underwritten. As actual premiums are reported by the ceding companies, management evaluates the appropriateness of the original premium estimates and any adjustments to these estimates are recorded in the period in which they become known. The Company has not historically experienced material adjustments to its initial premium estimates for its excess of loss reinsurance contracts. For proportional contracts, as is customary in the reinsurance market, there is a time lag from the point when premium and related commission and expense activity is recorded by a ceding company to the point when such information is reported by the ceding company to the Company, either directly or through a reinsurance intermediary. This time lag can vary from one to several months or calendar quarters. In addition, uncertainty in premium estimates arises due to changes in renewal rates or rate of new business acceptances by the cedant insurance companies and changes in the rates being charged by cedants. Changes to original premium estimates for proportional contracts could be material and such adjustments may directly and significantly impact earnings in the period they are determined because the subject premium may be fully or substantially earned.

The Company's historical experience has shown that estimated premiums from proportional contracts have varied and have been adjusted by up to approximately 10%, although larger variations, both positive and negative, are possible as a result of changes in one or more of the premium assumptions as noted above. A 10% variation in the Company's proportional premiums receivable, net as of December 31, 2016, after considering the related expected losses and loss expenses, acquisition expenses and taxes, would result in an impact of approximately $5.8 million on the Company's net income.

The following summarizes the Company's net proportional premium estimates within premiums receivable, net on the Company's Audited Consolidated Balance Sheets as of December 31, 2016 and 2015:

Classes of Coverage	Casualty		Professional lines		Property		Other specialty		Total
	(U.S. dollars in thousands)
As of December 31, 2016
Proportional premiums receivable, net	$	98,654	$	108,733	$	183,644	$	86,249	$	477,280
As of December 31, 2015
Proportional premiums receivable, net	$	73,328	$	113,313	$	137,334	$	57,948	$	381,923

As a result of recognizing the estimated gross premium written at the inception of the policy and collecting that premium over an extended period, we include a premiums receivable asset on our balance sheet. We actively monitor our premiums receivable asset to consider whether we need an allowance for doubtful accounts. As part of this process, we consider the credit quality of our cedants and monitor premium receipts versus expectations. At December 31, 2016, the Company has an allowance for estimated uncollectible premiums receivable of $6.2 million (2015 - $7.4 million).

Acquisition expenses are costs that vary with and are directly related to the successful production of new and renewal business, and consist principally of commissions and brokerage expenses. Acquisition expenses are shown net of commissions, other fees and expense allowances associated with and earned on ceded business. These costs are deferred and amortized over the periods in which the related premiums are earned.

Reserve for Losses and Loss Expenses. The Company's reserve for losses and loss expenses includes case reserves and reserves for losses incurred but not reported (referred to as "IBNR reserves"). Case reserves are established for losses that have been reported to us, but not yet paid. IBNR reserves represent a provision for claims that have been incurred but not yet reported to the Company, as well as future loss development on losses already reported, in excess of the case reserves. Case reserves and IBNR reserves are established by management based on reports from reinsurance intermediaries, ceding companies and insureds and consultations with independent legal counsel. In addition, IBNR reserves are established by management based on reported losses and loss expenses and actuarially determined estimates of ultimate losses and loss expenses.

Under U.S. GAAP, the Company is not permitted to establish loss reserves until the occurrence of an actual loss event. Once such an event occurs, the Company establishes reserves based upon estimates of total losses incurred by the ceding companies or insureds as a result of the event, its estimate of the potential losses incurred, and its estimate of the portion of such loss the Company has insured or reinsured. As a result, only loss reserves applicable to losses incurred up to the financial

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statement date may be recorded, with no allowance for the provision of a contingency reserve to account for expected future losses. See "Reserve for Losses and Loss Expenses" below for further discussion.

The Company's loss and loss expense reserves are reviewed regularly, and adjustments, if any, are reflected in earnings in the period in which they become known. The establishment of new loss and loss expense reserves or the adjustment of previously recorded loss and loss expense reserves could result in significant positive or negative changes to the Company's financial condition for any particular period. While we believe that we have made a reasonable estimate of loss and loss expense reserves, the ultimate loss experience may not be reliably predicted, and it is possible that losses and loss expenses will be higher or lower than the total reserve for losses and loss expenses recorded by the Company.

Information Used in Determining the Reserve for Losses and Loss Expenses. In order to estimate the Company's reserve for losses and loss expenses, management uses information either developed from internal or external sources, or pricing information created by the Company or provided to the Company by insureds and brokers at the time individual contracts and policies are bound. In addition, we use commercially available risk analysis models, contract by contract review by our underwriting teams, other data and estimates provided by our clients, and, to a limited extent, overall market share assumptions to estimate our loss and loss expense reserves related to specific loss events.

Actuarial Methods Used to Estimate Loss and Loss Expense Reserves. The Company uses a variety of actuarial methods to estimate the ultimate losses and loss expenses incurred by the Company. One actuarial method used by the Company to estimate its reserve for losses and loss expenses is the expected loss ratio approach, which is based on expected results independent of current loss reporting activity. This approach is typically used for immature loss periods (i.e., the current accident year). Another actuarial method used by the Company is known as the Bornhuetter-Ferguson method. The Bornhuetter-Ferguson method uses an initial loss estimate (expected loss technique) for each accident year by business line and type of contract. Under this method, IBNR is set equal to the initial loss estimate multiplied by the expected percent of loss yet to be reported at each valuation date. In a given quarter, if reported losses are less than expected, then the difference would result in a decrease in estimated ultimate losses. If losses for the quarter are greater than expected, then the difference would result in an increase in estimated ultimate losses. A third actuarial method used by the Company to estimate reserves for losses and loss expenses is known as the loss development method. The loss development method extrapolates the current value of reported losses to ultimate expected losses by using selected reporting patterns of losses over time. The selected reporting patterns are based on historical information (organized into loss development triangles) and are adjusted to reflect the changing characteristics of the book of business written by the Company. Management uses these multiple actuarial methods, supplemented with its own professional judgment, to establish its best estimate of reserves for losses and loss expenses.

For the agriculture insurance line of business, case reserves are established from initial loss notifications that are provided to our independent agents from insureds. Based on the information provided, the Company's system establishes a case reserve amount calculated from a formulaic model that includes historical experience, type of crop, and percent of liability. As actual claims are adjusted, outstanding reserves are adjusted to reflect the actual losses incurred.

The information gathered by the Company and the actuarial analyses performed on the gathered information is used to develop individual point estimates of carried loss and loss expense reserves for each of the Company's business segments and underlying lines of business. These individual point estimates are then aggregated along with the case reserves for actual losses reported to reach the total reserve for losses and loss expenses carried on the Company's consolidated financial statements. All of the Company's loss reserving is currently performed on a point estimate basis. The Company does not utilize range estimation in its loss reserving process.

The Company uses reserving methods that are commonly applied when limited loss development experience exists. As the Company has accumulated its own loss reserve history, it has incorporated the Company's actual loss experience for certain lines of business that have reached a level of maturity sufficient to provide a credible basis on which to estimate its reserve for losses and loss expenses related to these lines of business. The Company continues to utilize industry loss and development patterns in the establishment of loss and loss expense reserves where appropriate.

Significant Assumptions Employed in the Estimation of Loss and Loss Expense Reserves. The most significant assumptions used as of December 31, 2016 to estimate the reserve for losses and loss expenses within the Company's Insurance and Reinsurance segments are as follows:

• the information developed from internal and external sources can be used to develop meaningful estimates of the likely future performance of business bound by the Company;

• the loss and exposure information provided by ceding companies, insureds and brokers in support of their submissions can be used to derive meaningful estimates of the likely future performance of business bound with respect to each contract and policy;

• historic loss development and trend experience is assumed to be indicative of future loss development and trends;

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• no significant emergence of losses or types of losses that are not represented in the information supplied to the Company by its brokers, ceding companies and insureds will occur; and

• the terms of the contracts and policies the Company entered into with its insureds and ceding companies will be interpreted as intended, including those related to applicable aggregation limits and occurrence definitions.

The above five assumptions most significantly influence the Company's determination of initial expected loss ratios and expected loss reporting patterns that are the key inputs which impact potential variability in the estimate of the reserve for losses and loss expenses and are applicable to each of the Company's business segments. While there can be no assurance that any of the above assumptions will prove to be correct, we believe that these assumptions represent a realistic and appropriate basis for estimating the reserve for losses and loss expenses.

Factors Creating Uncertainty in the Estimation of the Reserve for Losses and Loss Expenses. While management does not at this time include an explicit or implicit provision for uncertainty in its reserve for losses and loss expenses, certain of the Company's business lines are by their nature subject to additional uncertainties, including the Company's casualty, property, professional lines, catastrophe, and specialty lines in the Reinsurance segment and the Company's casualty and other specialty, property, marine/energy and aviation and professional lines in the Insurance segment, which are discussed in detail below. In addition, the Company's Reinsurance segment is subject to additional factors that add to the uncertainty of estimating loss and loss expense reserves. Time lags in the reporting of losses can also introduce further ambiguity to the process of estimating loss and loss expense reserves.

The aspects of the Company's casualty, casualty and other specialty and professional lines in the Reinsurance and Insurance segments that complicate the process of estimating loss reserves include the lack of long-term historical data for losses of the same type intended to be covered by the policies and contracts written by the Company and the expectation that a portion of losses in excess of the Company's attachment levels in many of its contracts will be low in frequency and high in severity, limiting the usefulness of claims experience of other insurers and reinsurers for similar claims. In addition, the portion of the Company's casualty and other specialty line in its Insurance segment that is underwritten in Bermuda sometimes includes policy forms that vary from more traditional policy forms. The primary difference in the casualty policy form sometimes used by Endurance Bermuda from more traditional policy forms relates to the coverage being provided on an occurrence reported basis instead of the typical occurrence or claims-made basis used in traditional policy forms. The occurrence reported policy forms typically cover occurrences causing unexpected and unintended personal injury or property damage to third parties arising from events or conditions that commence at or subsequent to an inception date, and prior to the expiration of the policy provided that proper notice is given during the term of the policy or the discovery period.

The inherent uncertainty of estimating the Company's loss and loss expense reserves for its Reinsurance segment increases principally due to:

• the delay between the time claims are reported to the ceding company and the time they are reported through one or more reinsurance broker intermediaries to the Company;

• the differing reserving practices among ceding companies;

• the diversity of loss development patterns among different types of reinsurance treaties or contracts;

• the Company's need to rely on its ceding companies for loss information; and

• the fact that reinsurance treaties typically cover a disproportionate amount of large and more complicated claims.

In order to verify the accuracy and completeness of the information provided to the Company by its ceding company counterparties, the Company's underwriters, actuaries, accounting and claims personnel perform underwriting and claims reviews of the Company's ceding companies. Findings are communicated as appropriate to the ceding companies and are utilized in the establishment or revision of the Company's case reserves and related IBNR reserves. On occasion, these reviews reveal that the ceding company's reported losses and loss expenses do not comport with the terms of the contract with the Company. In such events, the Company strives to resolve the outstanding differences in an amicable fashion. The large majority of such differences are resolved in this manner. In the infrequent instance where an amicable solution is not feasible, the Company's policy is to vigorously defend its position in litigation or arbitration. As of December 31, 2016, the Company was not involved in any material claims litigation or arbitration proceedings.

Due to the large volume of potential transactions that must be recorded in the insurance and reinsurance industry, backlogs in the recording of the Company's business activities can also impair the accuracy of its loss and loss expense reserve estimates. As of December 31, 2016, there were no significant backlogs related to the processing of policy or contract information in the Company's Insurance or Reinsurance segments.

The Company assumes in its loss and loss expense reserving process that, on average, the time periods between the recording of expected losses and the reporting of actual losses are predictable when measured in the aggregate and over time.

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The time period over which all losses are expected to be reported to the Company varies significantly by line of business. This period can range from a few quarters for some lines, such as agriculture, to many years for some casualty lines of business. For the Company's Reinsurance business segment, due to ceding company and reinsurance intermediary reporting frequency, the time period is generally longer than for its Insurance segment, resulting in a reliance by the Company for a longer period of time on its actuarial estimates of loss and loss expense reserves. To the extent that actual reported losses are reported more quickly than expected, the Company may adjust upward its estimate of ultimate loss and to the extent that actual reported losses are reported more slowly than expected, the Company may reduce its estimate of ultimate loss.

Potential Volatility in the Reserve for Losses and Loss Expenses. In addition to the factors creating uncertainty in the Company's estimate of loss and loss expense reserves, the Company's estimated reserve for losses and loss expenses can change over time because of unexpected changes in the external environment. Potential changing external factors include:

• changes in the inflation rate for goods and services related to the covered damages;

• changes in the general economic environment that could cause unanticipated changes in claim frequency or severity;

• changes in the litigation environment regarding the representation of plaintiffs and potential plaintiffs;

• changes in the judicial and/or arbitration environment regarding the interpretation of policy and contract provisions relating to the determination of coverage and/or the amount of damages awarded for certain types of claims;

• changes in the social environment regarding the general attitude of juries in the determination of liability and damages;

• changes in the legislative environment regarding the definition of damages;

• new types of injuries caused by new types of injurious activities or exposures; and

• in the case of assumed reinsurance, changes in ceding company case reserving and reporting patterns.

The Company's estimates of reserves for losses and loss expenses can also change over time because of changes in internal company operations, such as:

• alterations in claims handling procedures;

• growth in new lines of business where exposure and loss development patterns are not well established; or

• changes in the quality of risk selection or pricing in the underwriting process.

Due to the inherent complexity of the assumptions used in establishing the Company's loss and loss expense reserve estimates, final claim settlements made by the Company may vary significantly from the present estimates, particularly when those settlements may not occur until well into the future. For an illustration of the effect of a 10% change in the Company's two key inputs used in determining its loss and loss expense reserves – the expected loss ratio and the expected loss reporting pattern – please see "Reserve for Losses and Loss Expenses" below.

Investments. The Company currently classifies its fixed maturity investments, short-term investments and equity securities as trading or available for sale. Trading securities are carried at estimated fair value, with related net realized and unrealized gains or losses included in earnings.

Available for sale securities are carried at estimated fair value, with related net unrealized gains or losses excluded from earnings and included in shareholders' equity as a component of accumulated other comprehensive loss. The Company determines the fair value of its fixed maturity, short-term and equity investments in accordance with current accounting guidance, which defines fair value and establishes a fair value hierarchy based on inputs to the various valuation techniques used for each fair value measurement. The use of valuation techniques for any given investment requires a significant amount of judgment and consideration of factors specific to the underlying investment. Fair value measurements determined by the Company seek to maximize observable inputs and minimize the use of unobservable inputs. Current accounting guidance establishes three levels as follows:

Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2: Quoted prices for similar assets in markets that are active, quoted prices for identical or similar assets in markets that are not active or inputs that are observable either directly or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities other than quoted prices in Level 1; quoted prices in markets that are not active; or other inputs that are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3: Unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets or liabilities. Unobservable inputs reflect the Company's own views about the assumptions that market participants would use in pricing the asset or liability. Level 3 assets and liabilities include financial instruments whose values are determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation.

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The Company determines the estimated fair value of each individual security utilizing the highest level inputs available. The Company uses quoted values and other data provided by nationally recognized third-party pricing sources as inputs into its process for determining fair values of its fixed maturity, short-term and equity portfolios. The Company obtains multiple prices for its securities where available. Pricing sources used in pricing the Company's fixed maturity, short-term and equity portfolios at December 31, 2016 were primarily pricing services and broker quotes.

Pricing Services and Index Providers. Pricing services, including index providers, provide pricing for less-complex, liquid securities based on market quotations in active markets. For securities that do not trade on a listed exchange, these pricing services may use a matrix pricing consisting of observable market inputs to estimate the fair value of a security. These observable market inputs include reported trades, benchmark yields, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, reference data, and industry and economic factors. Additionally, pricing services may use a valuation model such as an option adjusted spread model commonly used for estimating fair values of mortgage-backed and asset-backed securities. At December 31, 2016, the Company has not adjusted any pricing provided by third-party pricing services and index providers and have classified all such securities as Level 2.

Broker/Dealers. Generally, the Company obtains quotes directly from broker/dealers who are active in the corresponding markets when prices are unavailable from third-party pricing services or index providers. Broker/dealer quotes may also be used if the pricing from pricing services or index providers is not reflective of current market levels, as detected by our pricing control tolerance procedures. Generally, broker/dealers value securities through their trading desks based on observable market inputs. Their pricing methodologies include mapping securities based on trade data, bids or offers, observed spreads and performance on newly issued securities. They may also establish pricing through observing secondary trading of similar securities. Quotes from broker/dealers are all non-binding. At December 31, 2016, the Company has not adjusted any pricing provided by broker/dealers and has classified the majority of such securities as Level 2.

As described above, third-party pricing services, index providers and broker/dealers have their own method for determining the fair value of securities. As such, prices provided by pricing services, index providers and broker quotes can vary widely, even for the same security, and may have a material effect on the estimated fair values of the Company's securities. If the Company determines that there has been a significant decrease in the volume and level of trading activity for the securities in relation to the normal market activity for such security (or similar securities), then transactions or quoted prices may not accurately reflect fair value and, if there is evidence that the transaction for the security is not orderly, the Company may place less weight on the transaction price as an indicator of fair value. To validate the techniques or models used by pricing sources, the Company's review process includes, but is not limited to:

• quantitative analysis (consisting of comparing the quarterly return for each managed portfolio to its target benchmark, with significant differences identified and investigated);

• corroborating prices;

• initial and ongoing evaluation of methodologies used by outside parties to calculate fair value; and

• comparing the fair value estimates to its knowledge of the current market.

Other than Temporary Impairment ("OTTI"). Following a determination of fair value, the Company reviews its available for sale portfolios to determine whether any declines in the fair value below the amortized cost basis of these securities are other-than-temporary. If the Company determines that a decision to sell the available for sale security has been made or that it is more likely than not that the Company will be required to sell an available for sale security, the Company deems the security to be other-than-temporarily impaired and writes it down to fair value, thereby establishing a new cost basis. The amount of the write-down is recognized in earnings as net impairment losses recognized in earnings.

For the remaining fixed maturity and short-term investments classified as available for sale in an unrealized loss position for which a decision to sell has not been made and it is more likely than not that the Company will not be required to sell, the Company performs additional reviews to determine whether the investment will recover its amortized cost. If the amortized cost of the Company's fixed maturity or short-term investments classified as available for sale is, based upon the judgment of management, unlikely to be recovered, the Company writes down the investment by the amount representing the credit related portion of the decline in value, thereby establishing a new cost basis. The amount of the write-down is recognized in earnings as an OTTI loss. The new cost basis is not changed for subsequent recoveries in fair value.

To the extent the Company determines that the amortized cost of the Company's fixed maturity or short-term investments classified as available for sale is likely to be recovered and related to non-credit factors (such as interest rates, market conditions, etc.) and not due to credit related factors, that remaining non-credit portion of the unrealized loss is recorded as a part of accumulated other comprehensive loss in the shareholders' equity section of the Company's balance sheet.

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For equity securities classified as available for sale, the Company considers its ability and intent to hold the equity security in an unrealized loss position for a reasonable period of time to allow for a full recovery. When the Company determines that the decline in value of an equity security is other-than-temporary, the Company reduces the cost of the equity security to its fair value and recognizes the loss in the Consolidated Statements of Income and Comprehensive Income. The new cost basis is not changed for subsequent recoveries in fair value.

Other Investments. Other investments consist of alternative funds and are accounted for using the equity method of accounting whereby the initial investment is recorded at cost. Alternative funds include investments in hedge funds, private investment funds and other investment funds that generally invest in senior secured bank debt, high yield credit securities, distressed debt, macro strategies, multi-strategy, equity long/short strategies, distressed real estate, and energy sector private equity. The carrying value of other investments are increased or decreased to reflect the Company's share of income or loss, which is included in net investment income, and are decreased for dividends. Due to the timing of the delivery of the final valuations reported by certain of the fund managers, valuations of certain alternative funds are estimated based on the most recently available information, including period end valuation statements, period end estimates, or, in some cases, prior month or quarter valuation statements.

Goodwill and Intangible Assets. The Company is required to make an annual assessment as to whether the value of the Company's goodwill and intangible assets are impaired. Impairment of these assets can be either partial or full. For goodwill, impairment is based on a fair value analysis by individual reporting unit. Based upon the Company's assessment at the reporting unit level, there was no impairment of its goodwill asset of $175.5 million during 2016.

In making an assessment of the value of its goodwill, the Company uses both market based and non-market based valuations. Assumptions underlying these valuations include forecasts of discounted future cash flows and future profits in addition to an analysis of the Company's stock price relative to both its book value and its net income. Significant changes in the data underlying these assumptions could result in an assessment of impairment of the Company's goodwill asset. In addition, if the current economic environment and/or the Company's financial performance were to deteriorate significantly, this could lead to an impairment of goodwill, the write-off of which would be recorded against net income in the period such deterioration occurred. If a 5% decline in the fair value of the reporting units occurred, this would not result in an impairment of the goodwill asset at December 31, 2016.

Intangible assets are tested for impairment annually. For the years ended December 31, 2016 and 2015, an analysis was performed to determine if the carrying value of the Company's intangible assets with indefinite lives was impaired. No impairments were recorded as for the years ended December 31, 2016 and 2015.

Deferred Tax Assets. The Company provides for income taxes in accordance with the provisions of the relevant accounting guidance on "Accounting for Income Taxes" and "Accounting for Uncertain Tax Positions" for Endurance Assurance, Endurance American, Endurance American Specialty, Endurance Risk Solutions, ARMtech, Endurance U.K. and Endurance at Lloyd's, which are the Company's operating subsidiaries in income tax paying jurisdictions. The Company's deferred tax assets and liabilities primarily result from the net tax effect of temporary differences between the amounts recorded in our Audited Consolidated Financial Statements and the tax basis of our assets and liabilities. The Company determines deferred tax assets and liabilities separately for each tax-paying component in each tax jurisdiction.

At each balance sheet date, management assesses the need to establish a valuation allowance that reduces deferred tax assets when it is more likely than not that all, or some portion, of the deferred tax asset will not be realized. The valuation allowance is based on all available information from each tax-paying component in each tax jurisdiction and available tax planning strategies. Estimates of future taxable income incorporate several assumptions that may differ from actual experience. Differences in management's assumptions and resulting estimates could be material and have an adverse impact on the Company's financial results of operations and liquidity. Any such differences are recorded in the period in which they become known. As of December 31, 2016, the Company had a net deferred income tax asset of $58.7 million (2015 - $46.8 million), which includes a valuation allowance of $104.8 million (2015 - $131.1 million).

Reclassifications. Certain comparative information has been reclassified to conform to current year presentation.

Recent Accounting Pronouncements. In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, "Revenue from Contracts with Customers" ("ASU 2014-09"). ASU 2014-09 provides comprehensive guidance on the recognition of revenue from customers arising from the transfer of goods and services. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for these goods or services. ASU 2014-09 also provides guidance on accounting for certain contract costs and will also require new disclosures. ASU 2014-09 was to be effective for public business entities in annual and interim periods beginning after December 15, 2016; however, in July 2015, the FASB decided to defer by one year the effective dates of ASU 2014-09, and as

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a result, ASU 2014-09 will be effective for public business entities in annual and interim period beginning after December 15, 2017. Early adoption is permitted. Based on initial review, the Company has determined that this standard specifically excludes revenue from the following sources: Topic 944, Financial Services-Insurance and investment income; Topic 320, Investments-Debt and Equity Securities; Topic 323, Investments-Equity Methods and Joint Ventures; Topic 325, Investment-Others; and Topic 815, Derivatives and Hedging. As substantially all of the Company's revenues are subject to the topics above that are excluded from the standard, the Company has determined that this standard will not have a material impact on the Company's Consolidated Financial Statements.

In February 2015, the FASB issued ASU 2015-02, "Amendments to the Consolidation Analysis". Under ASU 2015-02, all legal entities are required to evaluate whether they should consolidate certain legal entities. ASU 2015-02 set forth amendments: (1) modifying the evaluation of whether limited partnerships and similar legal entities are variable interest entities ("VIEs") or voting interest entities; (2) eliminating the presumption that a general partner should consolidate a limited partnership; (3) affecting the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships; and (4) providing a scope exception from consolidation guidance for certain reporting entities. ASU 2015-02 was effective for public business entities for annual and interim periods beginning after December 15, 2015. Early adoption was permitted. ASU 2015-02 may be applied retrospectively or by using a modified retrospective approach by recording a cumulative-effect adjustment to equity as of the beginning of the year of adoption. The Company adopted this standard on January 1, 2016 and it did not have a material impact on the Company's Consolidated Financial Statements.

In May 2015, the FASB issued ASU 2015-09, "Disclosures about Short-Duration Contracts" ("ASU 2015-09"). The objective of ASU 2015-09 is to make targeted improvements to disclosure requirements for insurance companies that issue short-duration contracts. The guidance requires additional disclosures of claims development tables, frequency of reported claims, and history of claims duration. This information is required to be disaggregated so that useful information is not obscured by either the inclusion of a large amount of insignificant detail, or the aggregation of items that have significantly different characteristics. ASU 2015-09 was effective for public business entities in annual periods beginning after December 15, 2015, and interim periods within annual periods beginning after December 15, 2016. Early adoption is permitted. ASU 2015-09 should be applied retrospectively. The Company adopted this standard in the fourth quarter of 2016 and has included the appropriate annual disclosures within Note 6, Reserves for losses and loss expenses. The adoption of this standard did not have a material impact on the Company's Consolidated Financial Statements.

In January 2016, the FASB issued ASU No. 2016-01, "Recognition and Measurement of Financial Assets and Financial Liabilities" ("ASU 2016-01"). ASU 2016-01 requires equity investments (except those accounted for under the equity method of accounting or those that result in the consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income, simplifies the impairment assessment of equity investments without readily determinable values by requiring a qualitative assessment to identify impairment, eliminates the requirement to disclose the methods and significant assumptions used to estimate the fair value for financial instruments measured at amortized cost, requires the use of the exit price notion when measuring the fair value of financial instruments for disclosure purposes, requires separate presentation in other comprehensive income of the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the organization has elected to measure the liabilities in accordance with the fair value option, requires the separate presentation of financial assets and financial liabilities by measurement category and for form of years, beginning after December 15, 2015. Early adoption was permitted. The Company adopted ASU 2015-02 effective January 1, 2016 and it did not have material impact on the Company's consolidated statements of operations and financial position.

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Results of Operations

Years Ended December 31, 2016, 2015 and 2014

The following is a discussion and analysis of the Company's consolidated results of operations for the years ended December 31, 2016, 2015 and 2014:

	2016			2015			2014
	(U.S. dollars in thousands)
Revenues
Gross premiums written	$	4,202,170		$	3,320,861		$	2,894,076
Ceded premiums written	(1,832,235		)	(1,370,391		)	(959,870		)
Net premiums written	2,369,935			1,950,470			1,934,206
Net premiums earned	2,363,660			1,978,453			1,863,978
Net investment income	176,590			113,826			131,543
Net realized and unrealized (losses) gains	(12,419		)	12,660			14,283
Net impairment losses recognized in earnings	(10,769		)	(3,715		)	(625		)
Other underwriting loss	(909		)	(3,694		)	(5,786		)
Total revenues	2,516,153			2,097,530			2,003,393
Expenses
Net losses and loss expenses	1,321,052			917,108			970,162
Acquisition expenses	460,483			347,885			319,513
General and administrative expenses	248,146			259,791			247,387
Corporate expenses	51,706			114,429			66,200
Amortization of intangibles	84,624			30,620			6,484
Net foreign exchange (gains) losses	(74,684		)	26,964			3,839
Interest expense	43,860			41,260			40,968
Income tax (benefit) expense	(181		)	4,362			390
Total expenses	2,135,006			1,742,419			1,654,943
Net income	381,147			355,111			348,450
Net income attributable to non-controlling interests	(24,130		)	(11,016		)	—
Preferred dividends	(23,799		)	(32,750		)	(32,750		)
Net income available to Endurance Holdings' common and participating common shareholders	$	333,218		$	311,345		$	315,700
Ratios
Net loss ratio	55.9		%	46.4		%	52.1		%
Acquisition expense ratio	19.5		%	17.6		%	17.1		%
General and administrative expense ratio(1)	12.7		%	18.9		%	16.8		%
Combined ratio	88.1		%	82.9		%	86.0		%

(1) General and administrative expense ratio includes general and administrative expenses and corporate expenses.

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Premiums

Gross premiums written in 2016 increased $881.3 million, or 26.5%, compared to 2015 and increased $1,308.1 million, or 45.2% compared to 2014. The following table provides the distribution of gross premiums written by the geographic location in which the risk originated for the years ended December 31, 2016, 2015 and 2014:

	2016		2015		2014
	(U.S. dollars in thousands)
United States	$	2,823,950	$	2,305,301	$	2,054,431
Worldwide	794,289		566,664		456,078
Europe	265,100		209,729		172,077
Asia	105,838		75,165		38,442
Japan	82,864		58,524		45,618
Australasia	49,727		41,309		61,994
Other	80,402		64,169		65,436
Total gross premiums written	$	4,202,170	$	3,320,861	$	2,894,076

Increases in gross premiums written for 2016 versus 2015 and 2014 were driven by the following factors:

• An increase in gross premiums written in the property, marine/energy and aviation line of business in the Insurance segment, due primarily to business generated by new underwriting teams added over the last twenty four months in the U.S. and the U.K., including new business resulting from the acquisition of Montpelier;

• An increase in gross premiums written in the catastrophe and property lines of business in the Reinsurance segment compared to 2015 primarily due to new business resulting from the Company's acquisition of Montpelier, partially offset by targeted line size reductions;

• An increase in gross premiums written in the casualty and other specialty and professional lines of business in the Insurance segment, including excess casualty and various professional liability coverages, due to the expansion of the Company's Insurance underwriting personnel over the last twenty four months, including new business resulting from the acquisition of Montpelier;

• An increase in gross premiums written in the specialty line of business in the Reinsurance segment, primarily due to growth in international marine, aerospace, trade credit and surety and agriculture business written by new underwriting teams, partially offset by non-renewals due to increased ceding company retentions;

• An increase in gross premiums written in the casualty and professional lines of business in the Reinsurance segment compared to 2015 and 2014 due to new business written and increased premiums on renewal business, partially offset by non-renewal of policies that no longer met profitability targets; and

• A decrease in gross premiums written in the agriculture line of business in the Insurance segment due to lower commodity prices and from reductions in the Company's crop hail portfolio.

Net premiums written in 2016 increased $419.5 million, or 21.5%, compared to 2015 and $435.7 million, or 22.5% compared to 2014. The change in net premiums written from 2016 compared to 2015 and 2014 was driven primarily by growth in gross premiums written in both the Insurance and Reinsurance segments. Partially offsetting this increase was growth in ceded premiums written in 2016 compared to 2015 and 2014. Ceded premiums increased across all lines of business, except in the agriculture line of business in the Insurance segment. The Company purchased additional quota share, facultative and excess of loss reinsurance across most lines of business in the Insurance segment. In the Reinsurance segment, ceded premium written increased as the Company purchased increased levels of protection, including additional proportional and excess of loss retrocessional coverage within the catastrophe line of business, and additional proportional coverage on the specialty line of business.

Net premiums earned in 2016 increased $385.2 million, or 19.5% compared to 2015 and $499.7 million, or 26.8% compared to 2014 principally due to the increase in gross premiums written and the earning of Montpelier premiums acquired in 2015, partially offset by increased ceded premiums.

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Net Investment Income

The components of net investment income for the years ended December 31, 2016, 2015 and 2014 are as follows:

	2016			2015			2014
	(U.S. dollars in thousands)
Fixed income investments	$	165,210		$	132,786		$	118,084
Equity securities	12,639			8,209			5,689
Other investments	12,442			(13,553		)	19,609
Cash and cash equivalents	2,824			2,870			2,445
	$	193,115		$	130,312		$	145,827
Investment expenses	(16,525		)	(16,486		)	(14,284		)
Net investment income	$	176,590		$	113,826		$	131,543

The Company's 2016 net investment income increased 55.1% or $62.8 million compared to 2015 and 34.2% or $45.0 million compared to 2014. Net investment income during 2016 included net mark to market gains of $12.4 million on other investments as compared to mark to market losses of $13.6 million in 2015 and mark to market gains of $19.6 million in 2014. Investment income generated by the Company's equity securities and fixed income investments increased by $36.9 million compared to 2015 and $54.1 million compared to 2014. The increase in 2016 resulted primarily from an increase in fixed income investments acquired as part of the Company's acquisition of Montpelier. The value of the investment portfolio (including cash and cash equivalents and pending investment purchases and sales) as of December 31, 2016 decreased 0.9% from 2015. Investment expenses in 2016 increased compared to 2015 and 2014 due to an increase in invested assets.

During 2016, the yield on the benchmark three year U.S. Treasury bond fluctuated within a 96 basis point range, with a high of 1.61% and a low of 0.65%. Trading activity in the Company's investment portfolio in 2016 included increased allocations to corporate debt securities, U.S. government and government agencies securities, agency residential mortgaged-backed securities and foreign government securities, and reductions in non-agency mortgage-backed securities, collateralized loan and debt obligations, U.S. government and agency guaranteed corporate securities, municipal securities, equity securities and other investments. The duration of the Company's fixed maturity portfolio was 3.04 years at December 31, 2016 and 2.74 years at December 31, 2015. The increase in duration from 2015 to 2016 was due to an increase in interest rates that impacted the Company's fixed income portfolio.

Net Realized and Unrealized (Losses) Gains

The Company's investment portfolio is actively managed on a fair value basis to generate attractive economic returns and income. Movements in financial markets and interest rates influence the timing and recognition of net realized gains and losses as the portfolio is adjusted and rebalanced. Proceeds from sales and maturities of investments classified as trading and available for sale for the year ended December 31, 2016 were $6,592.9 million compared to $6,352.7 million for the year ended December 31, 2015 and $4,145.9 million for the year ended December 31, 2014. Net realized and unrealized losses were $12.4 million for the year ended December 31, 2016 compared to gains of $12.7 million and $14.3 million for 2015 and 2014, respectively. The increase in net realized and unrealized losses in 2016 compared to 2015 and 2014 resulted from net realized losses on sales of securities in the current period which were negatively impacted by a rise in interest rates during 2016.

Realized investment gains and losses, intangible asset impairment loss, net unrealized gains (losses) and the change in the fair value of investment-related derivative financial instruments for the years ended December 31, 2016, 2015 and 2014 were as follows:

	2016			2015			2014
	(U.S. dollars in thousands)
Gross realized gains on investment sales	$	39,033		$	65,881		$	35,921
Gross realized losses on investment sales	(61,752		)	(28,636		)	(16,515		)
Net unrealized gains (losses) on trading securities	12,480			(24,257		)	—
Intangible asset impairment loss	—			—			(5,450		)
Change in fair value of derivative financial instruments	(2,180		)	(328		)	327
Net realized and unrealized (losses) gains	$	(12,419	)	$	12,660		$	14,283

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Net Foreign Exchange (Gains) Losses

During 2016, the Company remeasured its monetary assets and liabilities denominated in foreign currencies, which resulted in net foreign exchange gains of $74.7 million compared to losses of $27.0 million for 2015 and $3.8 million for 2014. The gains recorded in 2016 resulted primarily from British Sterling weakening against the U.S. dollar over the year resulting in the upward revaluation of U.S. dollar assets held by Endurance U.K., which has a functional currency of British Sterling. The losses recorded in 2015 resulted from a decrease in the value of net asset positions in key foreign currencies as the U.S. dollar strengthened generally during the year. Additionally, sales of invested assets yielded realized foreign exchange losses recognized in net income that had previously been recognized as unrealized foreign exchange losses in other comprehensive (loss) income. In 2014, the net foreign exchange losses resulted from offsetting exposures across the Company as the U.S. dollar weakened generally in the first half of the year before strengthening against the major currencies in the second half.

Net Losses and Loss Expenses

The Company's reported net losses and loss expenses are significantly impacted by the occurrence or absence of catastrophic events and subsequent loss emergence related to such events. The following table shows the net losses and loss expenses after adjustment for reinstatement premiums and other loss sensitive accruals recorded by the Company in connection with catastrophes for the years ended December 31, 2016, 2015 and 2014.

2016
Event Date	Event	Net Loss
(U.S. dollars in millions)
February 2016	Earthquake in Taiwan	$	6.2
February and March 2016	Jubilee oil field	9.4
April 2016	Convective storms in the United States	22.6
April 2016	Earthquake in Japan	9.6
May 2016	Wildfires in Canada	30.4
May 2016	Convective Storms in Germany	4.1
June 2016	Hailstorms in the Netherlands	10.0
September 2016	Typhoon Meranti in Asia	8.3
October 2016	Hurricane Matthew in the United States	59.8
November 2016	Earthquake in New Zealand	14.5
	Total impact on net losses and loss expenses	174.9
	Less: reinstatement premiums	(21.5		)
	Net losses after adjustment for reinstatement premiums	$	153.4

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2015
Event Date	Event	Net Loss
(U.S. dollars in millions)
February 2015	Winter storm in the United States	$	12.9
April 2015	Windstorm in the United States	7.4
May 2015	Windstorm in the United States	6.4
August 2015	Tianjin explosions	14.1
August 2015	Unipetrol fire	9.2
	Total impact on net losses and loss expenses	50.0
	Less: reinstatement premiums	(3.1		)
	Net losses after adjustment for reinstatement premiums	$	46.9
2014
Event Date	Event	Net Loss
(U.S. dollars in millions)
February 2014	Windstorm in Japan	$	7.2
April 2014	Windstorms in the United States	8.1
May 2014	Windstorms in the United States	2.9
June 2014	Windstorms in the United States	5.6
June 2014	Windstorm Ela in Europe	21.1
November 2014	Windstorm in Australia	6.3
	Other loss events in 2014	5.0
	Total impact on net losses and loss expenses	56.2
	Less: reinstatement premiums	(5.1		)
	Net losses after adjustment for reinstatement premiums	$	51.1

For 2016, catastrophe related losses added 7.0 percentage points to the Company's net loss ratio after adjustment for reinstatement premiums and other loss sensitive accruals compared to 2.3 percentage points in 2015 and 2.9 percentage points in 2014. The Company's net loss ratio was higher in 2016 compared to 2015 and 2014 due to an increase in catastrophe losses, higher than expected attritional losses and decreased favorable prior year loss reserve development.

During 2016, 2015 and 2014, the Company's previously estimated ultimate losses for prior accident years were reduced by $221.6 million, $243.5 million and $233.8 million, respectively, as the loss emergence related to prior accident years was lower than expected. The overall net reduction in the Company's estimated losses for prior accident years experienced in 2016 emerged across all lines of the Company's Insurance and Reinsurance segments, except for Insurance professional lines. Favorable prior year loss reserve development in 2016 was lower than in 2015 in the Insurance segment as reported losses in the casualty and other specialty line of business were closer to expectations in the current year. Favorable prior year loss reserve development in 2016 was lower than in 2015 in the Reinsurance segment primarily due to reported losses in the casualty and property lines of business being closer to expectations in the current year.

The Company participates in lines of business where claims may not be reported for many years. Accordingly, management does not believe that reported claims are the only valid means for estimating ultimate obligations. Ultimate losses and loss expenses may differ materially from the amounts recorded in the Company's consolidated financial statements. These estimates are reviewed regularly and, as experience develops and new information becomes known, the reserves are adjusted as necessary. As a result of the incorporation of the Company's own loss reporting patterns and loss history related to its short tail business, including catastrophe reinsurance and property insurance and reinsurance business lines, the Company would expect its prior year loss reserve development and adjustments for short tail business to be less than recorded in prior years. Reserve adjustments, if any, are recorded in earnings in the period in which they are determined. The overall loss reserves were established by the Company's actuaries and reflect management's best estimate of ultimate losses. See "Reserve for Losses and Loss Expenses" below for further discussion.

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Acquisition Expenses

The Company's acquisition expense ratio in 2016 was higher than 2015 and 2014. The increase from 2015 and 2014 to 2016 was primarily due to the decrease in net premiums earned in the agriculture line of business in the Insurance segment, which incurs lower than average acquisition expenses, and the increase in premiums earned in other lines of business, including the specialty and casualty lines of business in the Reinsurance segment, which incur a higher than average net acquisition expense rate. This increase was partially offset by the addition of earned premiums from the Company's acquisition of Montpelier, which had no associated acquisition costs as these were written off upon the closing of the acquisition in accordance with applicable accounting guidance.

General and Administrative Expenses and Corporate Expenses

The Company's general and administrative expense ratio for 2016 was lower than that of 2015 and 2014. The higher general and administrative expense ratio in 2015 and 2014 compared to 2016 was primarily due to $76.6 million of acquisition and integration costs associated with the Company's acquisition of Montpelier included in 2015 and $15.5 million of costs incurred in the Company's proposed acquisition of Aspen Insurance Holdings Limited ("Aspen") included in 2014, which are included in corporate expenses and no similar costs in 2016. This decrease was partially offset by increased personnel costs from added underwriting teams partially offset by increased ceding commission reimbursements as a result of additional purchases of reinsurance and growth in gross premiums written during 2016. At December 31, 2016, the Company had a total of 1,244 employees as compared to 1,154 employees at December 31, 2015 and 997 employees at December 31, 2014.

Amortization of Intangibles

The Company's expenses related to the amortization of intangibles increased $54.0 million in 2016 compared to 2015 as a result of amortization expense recorded from finite lived intangibles acquired as part of the acquisition of Montpelier. The Company estimates additional amortization expenses will be incurred related to Montpelier of $57.5 million, $31.5 million, $21.2 million for the years ended 2017, 2018, and 2019 with $78.3 million to be recognized thereafter.

Income Tax (Benefit) Expense

The Company incurred a tax benefit for the year ended December 31, 2016 of $0.2 million compared to a tax expense of $4.4 million and $0.4 million for the years ended December 31, 2015 and 2014. The tax benefit in 2016 resulted from reductions in the Company's deferred tax valuation allowance recorded at the Company's United States taxable jurisdictions.

Net Income

The Company generated net income of $381.1 million in 2016 compared to net income of $355.1 million in 2015 and $348.5 million in 2014. The increase in 2016 net income compared to 2015 and 2014 was primarily due to an increase in net premiums earned, a reduction in corporate expenses, increased net investment income and increased net foreign exchange gains, partially offset by increased net losses and loss expenses, acquisition expenses and amortization expenses.

Net Income Attributable to Non-controlling Interests

The Company's net income attributable to non-controlling interest was $24.1 million2016 compared to $11.0 million in 2015 and nil in 2014. As part of the acquisition of Montpelier, the Company acquired ownership of BCRH common shares and BCGR's ordinary shares. At December 31, 2016, Endurance Holdings and Endurance Bermuda together owned 33.3% of BCRH and Endurance Bermuda owned 25.2% of BCGR. Net income attributable to non-controlling interests relates to the share of the Company's net income attributable to the BCRH common shares and BCGR ordinary shares that are not owned by the Company.

Underwriting Results by Business Segment

The determination of the Company's business segments is based on the manner in which management monitors the performance of the Company’s underwriting operations. As a result, we report two business segments – Insurance and Reinsurance.

One of the key measures used by management in assessing the Company's underwriting performance is the combined ratio, which is obtained by dividing the sum of the losses and loss expenses, acquisition expenses and general and administrative expenses by net premiums earned. The Company's historic combined ratios may not be indicative of future underwriting performance. When purchased within a single line of business, ceded reinsurance and recoveries are accounted for within that line of business. When purchased across multiple lines of business, ceded reinsurance and recoveries are allocated to the lines of business in proportion to the related risks assumed. The Company does not manage its assets by business segment; accordingly, net investment income and total assets are not allocated to the individual business segments. General and administrative expenses incurred by business segments are allocated directly. Remaining general and administrative expenses

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not directly incurred by the segments are classified as corporate expenses and are not allocated to the individual business segments. Ceded reinsurance and recoveries are recorded within the segment to which they apply.

Insurance

The following table summarizes the underwriting results and associated ratios for the Company's Insurance segment for the years ended December 31, 2016, 2015 and 2014:

	2016			2015			2014
	(U.S. dollars in thousands)
Revenues
Gross premiums written	$	2,570,494		$	2,085,901		$	1,716,128
Ceded premiums written	(1,514,240		)	(1,205,528		)	(855,722		)
Net premiums written	1,056,254			880,373			860,406
Net premiums earned	1,009,375			824,552			833,912
Expenses
Net losses and loss expenses	684,178			500,867			594,561
Acquisition expenses	149,763			80,252			65,368
General and administrative expenses	140,742			140,012			148,475
	974,683			721,131			808,404
Underwriting income	$	34,692		$	103,421		$	25,508
Ratios
Net loss ratio	67.9		%	60.8		%	71.4		%
Acquisition expense ratio	14.8		%	9.7		%	7.8		%
General and administrative expense ratio	13.9		%	17.0		%	17.7		%
Combined ratio	96.6		%	87.5		%	96.9		%

Premiums. Gross premiums written in 2016 increased $484.6 million, or 23.2%, compared to 2015 and increased $854.4 million, or 49.8% compared to 2014. Net premiums written in the Insurance segment increased in 2016 by 20.0% compared to 2015 and 22.8% compared to 2014. Gross and net premiums written for each line of business in the Insurance segment for the years ended December 31, 2016, 2015 and 2014 were as follows:

	2016				2015				2014
	Gross Premiums Written		Net Premiums Written		Gross Premiums Written		Net Premiums Written		Gross Premiums Written		Net Premiums Written
	(U.S. dollars in thousands)
Agriculture	$	760,877	$	274,952	$	840,445	$	267,890	$	866,025	$	459,149
Casualty and other specialty	657,558		281,256		514,203		248,554		396,113		195,927
Professional lines	461,552		191,596		344,482		156,918		263,538		93,640
Property, marine/energy and aviation	690,507		308,450		386,771		207,011		190,452		111,690
Total	$	2,570,494	$	1,056,254	$	2,085,901	$	880,373	$	1,716,128	$	860,406

The increase in the Insurance business segment gross premiums written in 2016 compared to 2015 and 2014 was driven by the following factors:

• An increase in gross premiums written in the property, marine/energy and aviation line of business, due primarily to business generated by new underwriting teams added over the last twelve months in the U.S. and the U.K., including new business resulting from the acquisition of Montpelier;

• An increase in gross premiums written in the casualty and other specialty and professional lines of business, including excess casualty and various professional liability coverages, due to the expansion of the Company's Insurance underwriting personnel over the past twenty four months, as well as new business resulting from the acquisition of Montpelier; and

• A decrease in gross premiums written in the agriculture line of business due to lower commodity prices and reduced policy counts from reunderwriting related to the Company's crop hail portfolio.

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Net premiums written in the Insurance segment increased compared to 2015 and 2014 as a result of increased gross premiums written by the Company. Net premium growth was partially offset by an increase in ceded premiums written across all lines of business primarily due to a whole account quota share treaty providing protection for all of the Insurance segment's book of business. In addition, the Company purchased additional quota share, facultative and excess of loss reinsurance across most lines of business in the Insurance segment, as well as increased quota share coverage on the agriculture line of business during 2016 as compared to 2015 and 2014.

Net premiums earned by the Company in 2016 in the Insurance segment increased compared to net premiums earned in 2015 and 2014 primarily due to the earnings of gross premiums written in more recent periods partially offset by increased ceded premiums across the segment.

Net Losses and Loss Expenses. The increase in the net loss ratio in the Company's Insurance segment for the year ended December 31, 2016 compared to 2015 resulted primarily from a higher current accident year loss ratio and decreased levels of favorable loss reserve development. The current accident year loss ratio was impacted in 2016 by higher actual losses incurred and changes in loss picks reflecting increased attritional and large losses primarily in the property, marine/energy and aviation and casualty and other specialty lines of business. Partially offsetting these losses in 2016 were better results in the Company's agriculture line of business resulting from favorable crop results. Prior year loss reserves were reduced in 2016 by $77.1 million as compared to reductions of $82.0 million and $80.6 million for the years ended December 31, 2015 and 2014. The Company's Insurance segment experienced net reductions in the Company's estimated losses for prior accident years in 2016 as claims have not materialized as originally estimated by the Company, primarily in the casualty and other specialty and property, marine/energy and aviation lines of business.

Acquisition Expenses. The Company's acquisition expense ratio in the Insurance segment for the year ended December 31, 2016 increased compared to 2015 and 2014 primarily due to more premiums being written in lines with higher acquisition costs and lower premiums in the agriculture line of business, which has lower acquisition costs.

General and Administrative Expenses. The Company's general and administrative expense ratio in the Insurance segment for 2016 decreased compared to 2015 and 2014. The decrease in 2016 was due to increased ceding commission reimbursements received as a result of additional purchases of reinsurance during the current year. This benefit was partially offset by an increase in personnel costs associated with the addition of new underwriting teams over the past year.

Reinsurance

The following table summarizes the underwriting results and associated ratios for the Company's Reinsurance segment for the years ended December 31, 2016, 2015 and 2014:

	2016			2015			2014
	(U.S. dollars in thousands)
Revenues
Gross premiums written	$	1,631,676		$	1,234,960		$	1,177,948
Ceded premiums written	(317,995		)	(164,863		)	(104,148		)
Net premiums written	1,313,681			1,070,097			1,073,800
Net premiums earned	1,354,285			1,153,901			1,030,066
Other underwriting loss	(909		)	(3,694		)	(5,786		)
	1,353,376			1,150,207			1,024,280
Expenses
Net losses and loss expenses	636,874			416,241			375,601
Acquisition expenses	310,720			267,633			254,145
General and administrative expenses	107,404			119,779			98,912
	1,054,998			803,653			728,658
Underwriting income	$	298,378		$	346,554		$	295,622
Ratios
Net loss ratio	47.1		%	36.0		%	36.4		%
Acquisition expense ratio	22.9		%	23.2		%	24.7		%
General and administrative expense ratio	7.9		%	10.4		%	9.6		%
Combined ratio	77.9		%	69.6		%	70.7		%

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Premiums. Gross premiums written in 2016 increased $396.7 million, or 32.1%, compared to 2015 and increased $453.7 million, or 38.5% compared to 2014. Net premiums written in the Reinsurance segment increased in 2016 by 22.8% over 2015 and 22.3% over 2014, respectively. Gross and net premiums written for each line of business in the Reinsurance segment for the years ended December 31, 2016, 2015 and 2014 were as follows:

	2016				2015				2014
	Gross Premiums Written		Net Premiums Written		Gross Premiums Written		Net Premiums Written		Gross Premiums Written		Net Premiums Written
	(U.S. dollars in thousands)
Catastrophe	$	506,300	$	336,413	$	311,914	$	194,662	$	343,213	$	252,973
Property	250,447		243,697		209,392		205,999		287,326		287,235
Casualty	245,092		243,154		176,506		176,487		159,533		157,947
Professional lines	256,337		254,148		248,610		248,610		174,656		174,656
Specialty	373,500		236,269		288,538		244,339		213,220		200,989
Total	$	1,631,676	$	1,313,681	$	1,234,960	$	1,070,097	$	1,177,948	$	1,073,800

The change in the Reinsurance business segment gross premiums written during 2016 compared to 2015 and 2014 was driven by the following factors:

• An increase in gross premiums written in the catastrophe and property lines of business compared to 2015 primarily due to new business resulting from the Company's acquisition of Montpelier, partially offset by targeted line size reductions;

• An increase in gross premiums written in the specialty line of business compared to 2015 and 2014 primarily due to growth in international marine, aerospace, trade credit and surety and agriculture business written by new underwriting teams, partially offset by non-renewals due to increased ceding company retentions; and

• An increase in gross premiums written in the casualty and professional lines of business compared to 2015 and 2014 due to new business written, including those acquired from Montpelier and increased premiums on renewal business, partially offset by non-renewal of policies that no longer met profitability targets.

Ceded premiums written increased in 2016 compared to 2015 and 2014 as the Company purchased increased levels of retrocessional protection, including additional proportional and excess of loss coverage within the catastrophe, casualty, professional and specialty lines of business.

Net premiums earned by the Company in the Reinsurance segment increased in 2016 compared to 2015 and 2014 primarily due to reinsurance premiums earned resulting from the Company's acquisition of Montpelier and overall increases in gross premiums written in more recent periods, partially offset by the increase in ceded premiums written during 2016.

Net Losses and Loss Expenses. The net loss ratio in the Company's Reinsurance segment for 2016 increased compared to 2015 and 2014 as a result of higher levels of catastrophe losses in 2016, decreased favorable prior year reserve development and an increase in the current accident year loss ratio in the specialty line of business.

In 2016, catastrophe related losses added 10.1 percentage points to the Reinsurance segment's net loss ratio after adjustment for reinstatement premiums and other loss sensitive accruals compared to 3.0 percentage points in 2015 and 5.1 percentage points in 2014. In 2016, the current accident year loss ratio increased as compared to 2015 and 2014 as a result of higher than expected attritional losses incurred in 2016 as compared to 2015 and 2014. The Company experienced lower favorable prior year loss reserve development in its Reinsurance segment in 2016 compared to 2015 and 2014. During 2016, 2015 and 2014, the Company's previously estimated ultimate losses for the Reinsurance segment for prior accident years were reduced by $144.4 million, $161.5 million and $153.2 million, respectively. The 2016 favorable prior year loss reserve development emerged across all lines of business in the Reinsurance segment. Favorable prior year loss reserve development resulted as claims have not materialized as originally estimated by the Company.

Acquisition Expenses. The Company's acquisition expense ratio in the Reinsurance segment for the year ended December 31, 2016 was lower than in 2015 and 2014. The decrease in the Company's acquisition expense ratio in the Reinsurance segment for the year ended December 31, 2015 compared to 2014 was primarily due to the addition of earned premiums from the Company's acquisition of Montpelier, which had no associated acquisition costs as these were written off on purchase.

General and Administrative Expenses. The general and administrative expense ratio in the Reinsurance segment decreased for the year ended December 31, 2016 compared to 2015 and 2014. The decrease in the ratio for 2016 compared to 2015 and 2014 was primarily due to increased ceding commission offsets.

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Investment Portfolio

The Company's investment portfolio was valued at $8.8 billion as of December 31, 2016 compared to $8.9 billion as of December 31, 2015. The Company's investment portfolio contains cash and cash equivalents, fixed maturity investments, short-term investments, equity securities and other investments, comprised of alternative funds. Alternative funds include investments in hedge funds, private investment funds and other investment funds that generally invest in senior secured bank debt, high yield credit securities, distressed debt, macro strategies, multi-strategy, equity long/short strategies, distressed real estate, and energy sector private equity.

The following tables set forth the types of securities and fair values of the Company's fixed maturity investments, short-term investments and equity securities as of December 31, 2016 and 2015:

	2016		2015
	(U.S. dollars in thousands)
Fixed maturity investments
U.S. government and agencies securities	$	1,001,882	$	818,468
U.S. state and municipal securities	18,357		22,406
Foreign government securities	178,919		160,976
Government guaranteed corporate securities	3,917		57,753
Corporate securities	2,147,693		1,849,934
Residential mortgage-backed securities	1,461,286		1,311,373
Commercial mortgage-backed securities	618,848		812,886
Collateralized loan and debt obligations	371,256		405,128
Asset-backed securities	510,663		507,255
Total fixed maturity investments	$	6,312,821	$	5,946,179
Short-term investments	408,704		419,796
Total fixed income investments	$	6,721,525	$	6,365,975
Equity securities
Equity investments	$	500,968	$	511,191
Preferred equity investments	173		17,623
Total equity securities	$	501,141	$	528,814

Fixed Maturity Investments

U.S. Government and Agencies Securities. U.S. government and agencies securities are comprised of bonds issued by the U.S. Treasury, the Federal Home Loan Bank, Freddie Mac and Fannie Mae.

U.S. State and Municipal Securities. U.S. state and municipal securities are debt securities issued by a state, municipality, or county, in order to finance its capital expenditures. Most municipal bonds are exempt from federal taxes and from most state and local taxes.

Foreign Government Securities. Non U.S. government securities represent the fixed maturity obligations of non-U.S. governmental entities.

Government Guaranteed Corporate Securities. Corporate issued securities backed by the full faith and credit of the sponsor country.

Corporate Securities. Corporate securities are comprised of bonds issued by corporations, primarily rated Baa3/BBB- or higher and are diversified across a wide range of issuers and industries. Corporate securities also include high yield securities comprised of bonds issued by corporations rated below BBB-. The principal risk of corporate securities is the potential loss of income and potential realized and unrealized principal losses due to insolvencies or deteriorating credit. The largest corporate security in the Company's portfolio represented approximately 1% of our fixed income investments at December 31, 2016.

Residential Mortgage-Backed Securities. The majority of the residential mortgage-backed securities in the Company's investment portfolio are issued by Freddie Mac and Fannie Mae. The principal risks inherent in holding agency mortgage-backed securities are prepayment and extension risks, which will affect the timing of when principal cash flows will be received. Non-agency mortgage-backed securities also have credit risk should losses on the underlying collateral exceed the credit protection provided.

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Commercial Mortgage-Backed Securities. The Company's commercial mortgage-backed securities ("CMBS") portfolio is diversified both geographically and by the types of underlying properties. The portfolio is primarily collateralized by office, retail and other commercial properties. The Company has limited exposure to lodging and industrial properties. The majority of commercial mortgage-backed securities in the Company's portfolio are non-agency backed securities and are in the super senior tranche which typically have greater than 30% credit support. The principal risks inherent in holding agency commercial mortgage-backed securities are prepayment and extension risks, which will affect the timing of when cash flows are received. Non-agency CMBS also have credit risk should losses on the underlying collateral exceed the credit protection provided.

Collateralized Loan and Debt Obligations. Collateralized loan and debt obligations are diversified by both type of collateral and issuer. Our collateralized loan obligations are backed by floating-rate corporate bank loans of various vintages and sectors. The majority of our collateralized loan obligations are rated AAA and AA, in very senior parts of the capital structure. Our collateralized debt obligations are primarily backed by corporate bonds. The principal risks of holding both collateralized loan and debt obligations are structural and credit risks. Structural risks include the security's priority in the issuer's capital structure, and the adequacy of and ability to realize proceeds from the underlying collateral. Credit risks include performance of the underlying bank loans or corporate bonds, which act as collateral for these securities.

Asset-Backed Securities. Asset-backed securities are diversified both by type of collateral and issuer. The majority of our asset-backed securities are AAA-rated bonds backed by pools of automobile loan receivables, credit card receivables, student loans and other collateral originated by a variety of financial institutions. The principal risks in holding asset-backed securities are structural and credit risks. Structural risks include the security's priority in the issuer's capital structure, the adequacy of and ability to realize proceeds from the collateral and the potential for prepayments. Credit risks include performance of the underlying consumer or corporate loans, which act as collateral for these securities.

Short-term Investments

Short-term investments are investments that mature within no more than one year or no less than 90 days at the time of purchase. The Company's short-term investments generally consist of U.S. government and agencies securities.

Equity Securities

Equity securities in the Company's investment portfolio consist of publicly traded common stocks, preferred stocks, and mutual funds. The Company's equity exposure is diversified across both dividend growth oriented strategies and a global mix of index strategies. A portion of our equity securities are comprised of shares of institutional mutual funds, which are invested in emerging market debt, convertible bonds and other targeted strategies.

Investment Ratings

The investment ratings (provided by major rating agencies) for the fixed income investments held as of December 31, 2016 and 2015 and the percentage of our fixed income investments they represented at such date were as follows:

	December 31, 2016				December 31, 2015
Ratings(1)	Fair Value		Percentage		Fair Value		Percentage
	(U.S. dollars in thousands)
U.S. government and agencies securities	$	1,001,882	14.9	%	$	818,468	12.9	%
AAA / Aaa	3,002,166		44.7	%	1,204,763		18.9	%
AA / Aa(2)	720,678		10.7	%	2,237,707		35.1	%
A / A	1,055,428		15.7	%	1,094,590		17.2	%
BBB	449,244		6.7	%	703,817		11.1	%
Below BBB	419,664		6.2	%	268,030		4.2	%
Not rated	72,463		1.1	%	38,600		0.6	%
Total	$	6,721,525	100.0	%	$	6,365,975	100.0	%

(1) The credit rating for each security reflected above was determined based on the highest rating assigned to the individual security by Standard & Poor's Financial Services LLC ("S&P"), Moody's Investors Service, Inc. ("Moody's"), Fitch Ratings, Inc., or DBRS, Inc.

(2) Includes agency mortgage-backed securities of $1,472.3 million and $1,335.7 million at December 31, 2016 and 2015, respectively.

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The contractual maturity distribution for our fixed maturity portfolio held as of December 31, 2016 and 2015 was as follows:

	December 31, 2016				December 31, 2015
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(U.S. dollars in thousands)
Due within one year	$	617,655	$	617,462	$	622,070	$	622,248
Due after one year through five years	2,170,111		2,187,173		2,005,456		1,995,502
Due after five years through ten years	887,775		896,388		683,147		676,932
Due after ten years	55,400		58,449		33,168		34,651
Residential mortgage-backed securities	1,448,917		1,461,286		1,301,083		1,311,373
Commercial mortgage-backed securities	615,730		618,848		817,570		812,886
Collateralized loan and debt obligations	369,126		371,256		419,795		405,128
Asset-backed securities	509,595		510,663		510,540		507,255
Total	$	6,674,309	$	6,721,525	$	6,392,829	$	6,365,975

Other Investments

The Company's other investments are comprised of hedge funds, private investment funds and other investment funds that generally invest in senior secured bank debt, high yield credit securities, distressed debt, macro strategies, multi-strategy, equity long/short strategies, distressed real estate, and energy sector private equity ("alternative funds") and are recorded on the Company's balance sheet as "other investments." As of December 31, 2016, the Company's Board of Directors had approved investments in alternative funds at the time of commitment of capital of up to 25% of total shareholders' equity. Using this measure, as of December 31, 2016, alternative funds represented 12% of the Company's shareholders’ equity. As of December 31, 2016, the Company's other investments totaled $588.3 million and represented 6.7% of the Company's investment portfolio. As of December 31, 2016, the Company had invested, net of capital returned, a total of $470.3 million in alternative funds. As of December 31, 2016, the market value of alternative funds represented $588.3 million.

Other investments are accounted for under the equity method of accounting. Adjustments to the carrying value of these investments are made based upon the net valuation criteria established by the managers of the other investments, which in turn are established based upon the valuation criteria in the governing documents of the other investments. Such valuations may differ significantly from the values that would have been used had liquid markets existed for the shares or partnership interests of the other investments. Due to a delay in the valuations reported by certain of the fund managers, valuations of certain alternative funds are estimated based on the most recently available information, including period end valuation statements, period end estimates, or, in some cases, prior month or quarter valuation statements. Many of the other investments are subject to restrictions on redemptions and sale that limit our ability to liquidate these investments in the short-term. Interest income, income distributions and realized and unrealized gains and losses on other investments included in net investment income were gains of $12.4 million for the year ended 2016, losses of $13.6 million and gains of $19.6 million for the years ended 2015 and 2014, respectively.

Investment Portfolio Management

We have engaged outside investment managers to provide us with investment advisory and management services. Investment management fees, which vary depending on the amount of assets under management and the type of assignment, are offset against net investment income. Agreements with our investment managers may be terminated by either party upon written notice.

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Our investment returns for the years ended December 31, 2016, 2015 and 2014 were as follows:

Investment Returns	2016			2015			2014
	(U.S. dollars in thousands)
Net investment income (loss) from other investments	$	12,442		$	(13,553	)	$	19,609
Net investment income from fixed income investments, equity securities and cash and cash equivalents (net of investment expenses)	164,148			127,379			111,934
Net investment income included in net income	176,590			113,826			131,543
Net realized and unrealized investment (losses) gains included in net income	(12,419		)	12,660			19,733
Net impairment losses recognized in earnings	(10,769		)	(3,715		)	(625		)
Net increase (decrease) in unrealized gain (loss) included in other comprehensive (loss) income, before deferred tax offsets	82,925			(104,628		)	44,271
Total net investment return	$	236,327		$	18,143		$	194,922

During 2016, 2015 and 2014, the Company identified available for sale securities that were considered to be other-than-temporarily impaired. In identifying such securities, the Company initially considered whether it intended to sell or would be more likely than not required to sell the securities in an unrealized loss position at the end of the applicable period. To the extent that the Company did not identify securities meeting these criteria, the Company then performed various reviews to determine whether the investments in an unrealized loss position were other-than-temporarily impaired as a result of credit factors or non-credit related factors. As such, the Company recognized in earnings total other than temporary impairments of $10.8 million (2015 - $3.7 million; 2014 - $0.6 million) primarily as a result of declines in certain equity securities that have been at a loss for more than twelve months during 2016.

Sovereign Debt Exposure

The Company's diversified portfolio of investments includes exposures to the debt of various European countries. The Company continuously monitors its exposures through review of its portfolio and has established investment guidelines that restrict the amount of investment exposure to any one issuer or country depending on specific ratings of such issuer or country as stated by credit rating agencies. The Company's aggregate direct exposure to the indebtedness and equity securities of those countries whose currency is the Euro or whose sovereign debt rating is below AAA (except the U.S.) was $763.7 million at December 31, 2016 (2015 - $820.1 million).

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The following table shows the fair value of the Company's investments exposed to all countries whose currency is the Euro or whose sovereign debt rating is below AAA (except the U.S.) by any of the recognized rating agencies at December 31, 2016. The amortized cost basis of these investments was not significantly different from their fair value at December 31, 2016. The Company determined the underlying exposure of the investment by reference to the risk country or parent risk country as published by a third party pricing service.

	Sovereign Exposure				Non-Sovereign Exposure
					Corporate securities
Country	Foreign Government Securities		Government Guaranteed Corporate Securities		Financial		Non-Financial		Structured Securities(1)		Equity Securities		Short-term Investments		Gross Exposure
	(U.S. dollars in thousands)
Belgium	$	1,943	$	—	$	875	$	35,340	$	—	$	—	$	—	$	38,158
Bermuda	—		—		2,577		—		—		23		—		2,600
Brazil	—		—		877		616		—		—		—		1,493
Chile	—		—		3,176		—		—		—		—		3,176
China	—		—		—		1,268		—		—		—		1,268
Finland	2,987		—		—		—		—		—		—		2,987
France	17,691		3,569		24,245		23,672		2,354		—		—		71,531
Germany	17,758		—		3,989		42,823		—		16,026		—		80,596
Hong Kong	—		—		—		894		—		—		—		894
Ireland	—		—		1,353		1,090		809		—		—		3,252
Israel	—		—		—		3,947		—		—		—		3,947
Italy	—		—		—		1,472		—		—		—		1,472
Japan	—		—		25,349		8,546		—		—		—		33,895
Republic of Korea	7,274		—		—		—		—		—		—		7,274
Luxembourg	—		—		5,363		3,602		181		48,938		—		58,084
Mexico	1,367		—		—		1,247		—		5		—		2,619
Netherlands	4,260		—		37,667		13,439		1,395		—		—		56,761
New Zealand	—		—		—		3,033		—		—		—		3,033
Portugal	—		—		—		—		58		—		—		58
Qatar	—		—		—		539		—		—		—		539
Russia	—		—		1,568		4,655		—		—		—		6,223
Saudi Arabia	3,314		—		—		—		—		—		—		3,314
Slovenia	620		—		—		—		—		—		—		620
Spain	—		—		1,191		1,913		647		—		—		3,751
European Supranational(2)	6,203		—		—		—		—		—		—		6,203
United Arab Emirates	—		—		679		765		—		—		—		1,444
United Kingdom	64,016		347		71,414		65,742		8,734		143,259		14,779		368,291
Virgin Islands (British)	—		—		266		—				—		—		266
Total	$	127,433	$	3,916	$	180,589	$	214,603	$	14,178	$	208,251	$	14,779	$	763,749

(1) Structured securities includes residential non-agency mortgage-backed securities, commercial non-agency mortgage-backed securities, and asset-backed securities.

(2) European Supranational securities are issued by entities formed by two or more central governments to promote economic development for the member countries, such as the World Bank, the European Bank for Reconstruction and Development and the European Investment Bank.

88

The following table shows the fair value as of December 31, 2016 based on the ratings of the securities held by country of risk in those countries whose currency is the Euro or whose sovereign debt rating is below AAA (except the U.S.) by any of the recognized rating agencies at December 31, 2016:

Country	AAA		AA		A		BBB		Below BBB		NR and Equity Securities		Total
	(U.S. dollars in thousands)
Belgium	$	—	$	1,943	$	34,035	$	—	$	2,180	$	—	$	38,158
Bermuda	—		—		—		—		2,577		23		2,600
Brazil	—		—		—		616		877		—		1,493
Chile	—		3,176		—		—		—		—		3,176
China	—		—		1,268		—		—		—		1,268
Finland	—		2,987		—		—		—		—		2,987
France	14,173		16,282		33,494		3,246		3,705		631		71,531
Germany	17,758		995		43,351		1,872		433		16,187		80,596
Hong Kong	—		—		635		—		259		—		894
Ireland	808		—		—		—		2,444		—		3,252
Israel	—		—		—		3,947		—		—		3,947
Italy	—		—		—		1,472		—		—		1,472
Japan	—		—		33,895		—		—		—		33,895
Republic of Korea	—		7,274		—		—		—		—		7,274
Luxembourg	603		—		—		2,984		3,346		51,151		58,084
Mexico	—		—		1,243		1,367		—		9		2,619
Netherlands	8,315		15,878		16,081		9,030		7,081		376		56,761
New Zealand	—		—		—		—		3,033		—		3,033
Portugal	—		—		58		—		—		—		58
Qatar	—		539		—		—		—		—		539
Russia	—		—		—		3,923		2,300		—		6,223
Saudi Arabia	—		3,314		—		—		—		—		3,314
Slovenia	—		—		620		—		—		—		620
Spain	318		969		551		1,913		—		—		3,751
European Supranational	5,101		1,102		—		—		—		—		6,203
United Arab Emirates	—		1,444		—		—		—		—		1,444
United Kingdom	51,853		76,450		69,070		17,263		9,761		143,894		368,291
Virgin Islands (British)	—		—		—		—		—		266		266
Total	$	98,929	$	132,353	$	234,301	$	47,633	$	37,996	$	212,537	$	763,749

In addition to the direct exposures above, the Company has indirect exposure to sovereign and non-sovereign investments held within certain alternative funds in its other investments.

Liquidity and Capital Resources

Endurance Holdings is a holding company that does not have any significant operations or assets other than its ownership of the shares of its direct and indirect subsidiaries. Endurance Holdings relies primarily on dividends and other permitted distributions from its subsidiaries to pay its operating expenses, interest on debt and dividends, if any, on its ordinary shares and its 6.35% Non-Cumulative Preferred Shares, Series C ("Series C Preferred Shares"). There are restrictions on the payment of dividends by the Company's operating subsidiaries to Endurance Holdings, which are described in more detail below.

Ability of Subsidiaries to Pay Dividends. The ability of Endurance Bermuda to pay dividends is dependent on its ability to meet the requirements of applicable Bermuda law and regulations. Under Bermuda law, Endurance Bermuda may not declare or pay a dividend if there are reasonable grounds for believing that Endurance Bermuda is, or would after the payment be, unable to pay its liabilities as they become due, or the realizable value of Endurance Bermuda's assets would thereby be less than the aggregate of its liabilities and its issued share capital and share premium accounts. Further, Endurance Bermuda, as a regulated insurance company in Bermuda, is subject to additional regulatory restrictions on the payment of dividends or distributions. As of December 31, 2016, Endurance Bermuda could pay a dividend or return additional paid-in capital totaling

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approximately $1,109.3 million without prior regulatory approval based upon the Bermuda insurance and corporate regulations. As of December 31, 2016, Endurance Holdings has loaned Endurance Bermuda $613.5 million, which remains outstanding and is callable on demand.

Endurance Assurance, Endurance American, Endurance American Specialty and Endurance Risk Solutions are subject to regulation by the State of Delaware Department of Insurance and American Agri-Business is subject to regulation by the Texas Department of Insurance. Dividends for each U.S. operating subsidiary are limited to the greater of 10% of policyholders' surplus or statutory net income, excluding realized capital gains. In addition, dividends may only be declared or distributed out of earned surplus. At December 31, 2016, Endurance Assurance, Endurance American, Endurance Risk Solutions, and Endurance American Specialty did not have earned surplus; therefore, these companies are precluded from declaring or distributing dividends during 2017 without the prior approval of the applicable insurance regulator. At December 31, 2016, American Agri-Business (with notice to the Texas Department of Insurance) could pay dividends of $3.3 million without prior regulatory approval from the applicable regulators. In addition, any dividends paid by Endurance American, Endurance American Specialty and Endurance Risk Solutions would be subject to the dividend limitation of their respective parent insurance companies.

Under the jurisdiction of the United Kingdom's Prudential Regulatory Authority ("PRA") and the Financial Conduct Authority ("FCA"), Endurance U.K. must maintain a margin of solvency at all times, which is determined based on the type and amount of insurance business written. The PRA regulatory requirements impose no explicit restrictions on Endurance U.K.'s ability to pay a dividend, but Endurance U.K. would have to notify the PRA 28 days prior to any proposed dividend payment. Dividends may only be distributed from profits available for distributions. At December 31, 2016, Endurance U.K. did not have retained profits available for distributions.

Endurance Corporate Capital Limited, Syndicate 5151 and Endurance at Lloyd's Limited are subject to oversight by the Council of Lloyd's. Endurance at Lloyd's is also subject to regulation by the PRA and the Financial Conduct Authority. Underwriting capacity of a member of Lloyd's must be supported by providing a deposit in the form of cash, securities or letters of credit, which are referred to as Funds at Lloyd's ("FAL"). This amount is determined by Lloyd's and is based on Syndicate 5151's solvency and capital requirement as calculated through its internal model. In addition, if the FAL are not sufficient to cover all losses, the Lloyd's Central Fund provides an additional level of security for policyholders. At December 31, 2016, the FAL requirement set by Lloyd's for Syndicate 5151 was $293.1 million based on its business plan, approved in November 2016. Actual FAL posted for Syndicate 5151 at December 31, 2016 by was $323.6 million. At December 31, 2016, Endurance Corporate Capital Limited did not have assets available for distribution.

Cash and Invested Assets. The Company's aggregate invested assets as of December 31, 2016 totaled $8.8 billion compared to aggregate invested assets of $8.9 billion as of December 31, 2015. The decrease in invested assets since December 31, 2015 resulted primarily from the retirement of the Company's Series B preferred shares and payment of dividends, which were largely offset by net operating cash flows generated during 2016.

At December 31, 2016, the Company's available for sale investments had gross unrealized gains of $95.3 million and gross unrealized losses of $37.4 million compared to gross unrealized gains of $40.8 million and gross unrealized losses of $72.6 million at December 31, 2015. The increase in gross unrealized gains on the Company's available for sale investments at December 31, 2016 compared to 2015 was primarily due to tightening of credit spreads and strong high yield returns during the year. At December 31, 2016, the Company had certain equity securities that were in an unrealized loss position for more than twelve months. As a result, total other-than-temporary impairments of $10.8 million for the year (2015 - $3.7 million; 2014 - $0.6 million) were recognized in earnings.

As of December 31, 2016 and 2015, the Company had pledged cash and cash equivalents and fixed maturity investments of $106.8 million and $108.9 million, respectively, in favor of certain ceding companies to collateralize obligations. As of December 31, 2016 and 2015, the Company had also pledged $252.2 million and $383.3 million of its cash and fixed maturity investments to meet collateral obligations for $222.3 million and $341.6 million in secured letters of credit outstanding under its credit facilities, respectively. In addition, at December 31, 2016 and 2015, cash and fixed maturity investments with fair values of $207.8 million and $208.3 million were on deposit with U.S. state regulators, respectively.

During 2015, Endurance Bermuda established a multi-beneficiary reinsurance trust (the "Endurance Reinsurance Trust") domiciled in Delaware. The Endurance Reinsurance Trust was established as a means of providing statutory credit to Endurance Bermuda's U.S. cedants. As of December 31, 2016, the fair value of the assets held in the Endurance Reinsurance Trust exceeded $783.9 million (2015- $94.1 million), the minimum value required on that date.

Endurance Bermuda is party to a second multi-beneficiary reinsurance trust (the "Reduced Collateral Trust") domiciled in Delaware. The Reduced Collateral Trust was established as a means of providing statutory credit to Endurance Bermuda's U.S. cedants in connection with a reduction in collateral requirements in certain states. As of December 31, 2016, the fair value of

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the assets held in the Reduced Collateral Trust exceeded $16.4 million (2015- $10.8 million), the minimum value required on that date.

Endurance Bermuda is party to a reinsurance trust (the "MUSIC Trust"). The MUSIC Trust was established as a means of providing statutory credit to Montpelier U.S. Insurance Company ("MUSIC") in support of the business retained in connection with the 2011 sale by Montpelier of MUSIC to Selective Insurance Group, Inc. ("Selective"). As of December 31, 2016, the fair value of the assets held in the MUSIC Trust was $24.6 million (2015- $21.3 million).

Endurance Bermuda was party to a multi-beneficiary Reinsurance Trust originally established by Montpelier Re (the "Montpelier Reinsurance Trust") domiciled in New York. The Montpelier Reinsurance Trust was established as a means of providing statutory credit to Montpelier Re’s U.S. cedants. Endurance Bermuda was also party to a multi-beneficiary reinsurance trust originally established by Montpelier Re (the "FL Trust") in connection with a reduction in its Florida collateral requirements. With the consent of the New York Department of Financial Services, all assets in excess of the statutory minimum required amounts in the Montpelier Reinsurance Trust and the FL Trust were transferred to the Endurance Reinsurance Trust and the Reduced Collateral Trust, respectively, upon the merger of Montpelier Re with and into Endurance Bermuda, with Endurance Bermuda as the surviving entity, on December 29, 2015.

Cash Flows

	2016			2015			2014
	(U.S. dollars in thousands)
Net cash provided by operating activities	$	415,492		$	245,457		$	266,261
Net cash (used in) provided by investing activities	(19,222		)	486,793			(236,881		)
Net cash used in financing activities	(403,583		)	(274,774		)	(99,738		)
Effect of exchange rate changes on cash and cash equivalents	(20,896		)	(25,198		)	(30,021		)
Net (decrease) increase in cash and cash equivalents	(28,209		)	432,278			(100,379		)
Cash and cash equivalents, beginning of year	1,177,750			745,472			845,851
Cash and cash equivalents, end of year	$	1,149,541		$	1,177,750		$	745,472

The Company's cash and cash equivalents decreased by $28.2 million to $1,149.5 million at December 31, 2016, compared to $1,177.8 million at December 31, 2015, and increased by $404.1 million compared to $745.5 million at December 31, 2014.

Cash flows provided by operating activities. Cash flows provided by operating activities for the year ended December 31, 2016 were $415.5 million compared to $245.5 million for the year ended December 31, 2015 and $266.3 million for the year ended December 31, 2014. The increase in cash flows provided by operating activities in 2016 compared to 2015 and 2014 was primarily due to higher cash inflows from premiums collections and lower levels of gross loss payments, partially offset by lower ceded loss collections and higher payments of ceded premiums.

Cash flows (used in) provided by investing activities. During the year ended December 31, 2016, cash flows used in investing activities were $19.2 million, compared to cash flows provided by investing activities of $486.8 million for 2015 and cash flows used in investing activities of $236.9 million in 2014. The Company actively manages its investment portfolio on a fair value basis to generate attractive economic returns and income. Movements in financial markets and interest rates influence the timing of investment sales and purchases. The increase in cash flows used in investing activities in 2016 compared to 2015 is primarily due to the decrease in cash assumed from the acquisition of Montpelier in 2015 and higher net purchases of trading and available for sale investments, offset by higher net proceeds from the redemption of other investments. The decrease in cash flows used in investing activities in 2016 compared to 2014 is primarily due to lower net purchases of trading and available for sale investments and higher net proceeds from the redemption of other investments.

Cash flows used in financing activities. The Company's cash flows used in financing activities for the year ended December 31, 2016 were $403.6 million, compared to $274.8 million and $99.7 million in 2015 and 2014, respectively. The 2016 cash flows used in financing activities increased compared to 2015 and 2014 due to the redemption of the Company's 7.5% Non-Cumulative Preferred Shares, Series B, higher dividends paid and increased net distributions to non-controlling interest.

Credit Facilities. On March 23, 2016, the Company and certain designated subsidiaries of the Company entered into a $450.0 million five-year letter of credit facility with JPMorgan Chase Bank, N.A. ("JPMorgan") as administrative agent (the "Credit Facility"). Upon entering into the Credit Facility, the Company terminated its existing $700.0 million credit agreement, dated April 19, 2012, with JPMorgan as administrative agent. The Credit Facility does not provide for revolving or term loans.

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As of December 31, 2016 and 2015, there were no borrowings under the Credit Facility and letters of credit outstanding under the Credit Facility were $199.8 million (2015 - $329.9 million).

The Credit Facility is collateralized on a several basis by each entity incurring such obligation by cash and securities deposited into collateral accounts from time to time with Deutsche Bank Trust Company Americas as collateral agent. So long as there is no default under the terms of the Credit Facility, the Company may request that the size of the Credit Facility be increased by $100.0 million, but no participating lender is obligated to increase its commitments under the Credit Facility.

The Company is required to pay a fee of 0.40% per annum on the daily stated amount of outstanding letters of credit issued under the Credit Facility. In addition, the Credit Facility requires the Company to pay to the lenders a commitment fee iof 0.125% per annum on the average daily amount of the unused commitments of the lenders. The Credit Facility permits a lender, if requested and in its discretion, to issue a letter of credit pursuant to which it fronts for the other lenders. For such letters of credit, such fronting lenders may receive certain fronting fees from the Company.

The Credit Facility requires the Company's compliance with certain customary restrictive covenants, including a financial covenant that the Company maintain a leverage ratio of no greater than 0.35:1.00 at any time. In addition, each of the Company's regulated insurance subsidiaries that has a claims paying rating from A.M. Best must maintain a rating of at least

B++ at all times.

The Credit Facility also contains customary event of default provisions, including failure to pay any unpaid drawing under a letter of credit under the Credit Facility or interest thereon and failure to pay any fee under the Credit Facility, insolvency events of the Company or any of its subsidiaries (other than certain immaterial subsidiaries), a change in control of the Company, a breach of the representations or covenants in the Credit Facility or the security documents relating thereto and certain defaults by the Company or its subsidiaries under other indebtedness. In the case of an event of default that occurs as a result of an insolvency event of the Company or one of its designated subsidiary borrowers, the commitments of the lenders will automatically terminate and the repayment of outstanding obligations will be automatically accelerated. Upon the occurrence of any other event of default under the Credit Facility, the lenders can terminate their commitments under the Credit Facility, require repayment of any outstanding obligations under the Credit Facility, give notice of non-extension of any outstanding letters of credit in accordance with their terms, require the delivery of cash collateral for outstanding letters of credit and foreclose on any collateral held by the lenders (or any agent on their behalf) under the Credit Facility.

The Company is party to certain uncommitted letter of credit reimbursement agreements ("LOC Agreements") that allow for the issuance of letters of credit in a variety of currencies, including U.S. dollars. The fees paid under the LOC Agreements depend on the amount of the outstanding letters of credit and vary from 0.30% to 0.45% on the principal amount of letters of credit outstanding to a fee negotiated at the time of issuance of the individual letters of credit. The total amount of letters of credit outstanding under the LOC Agreements as of December 31, 2016 was $22.5 million (2015 - $11.7 million).

Senior Notes. On October 17, 2005, Endurance Holdings issued $200.0 million principal amount of 6.15% Senior Notes due October 15, 2015 (the "6.15% Senior Notes"). The 6.15% Senior Notes were offered by the underwriters at a price of 99.639% of their principal amount, providing an effective yield to investors of 6.199%. The 6.15% Senior Notes matured on October 15, 2015 and were repaid by the Company on that date.

Upon closing of the acquisition of Montpelier, Montpelier, as issuer, Endurance Holdings, as parent guarantor, and The Bank of New York Mellon, as trustee, entered into a Fourth Supplemental Indenture, dated as of July 31, 2015 (the "Fourth Supplemental Indenture"). The Fourth Supplemental Indenture amended the Indenture, dated as of July 15, 2003 (as amended and supplemented from time to time (collectively, the "Senior Notes Supplemental Indentures")). The Senior Notes Supplemental Indentures provided for the unconditional assumption of the due and punctual payment of the principal of, any premium and interest on and any additional amounts with respect to the 4.7% Senior Unsecured Notes Due 2022 (the "4.7% Senior Notes") originally issued by Montpelier on October 2, 2012 in an aggregate principal amount of $300.0 million and the performance of every obligation in the Senior Notes Indenture and the 4.7% Senior Notes to be performed or observed. The 4.7% Senior Notes bear a rate of interest equal to 4.7% per annum, payable semi-annually in arrears on April 15 and October 15 each year. The 4.7% Senior Notes mature on October 15, 2022. The 4.7% Senior Notes do not contain any covenants regarding financial ratios or specified levels of net worth or liquidity to which the Company or any of its subsidiaries must adhere.

On July 15, 2004, the Company issued $250.0 million principal amount of 7% Senior Notes due July 15, 2034. On March 23, 2010, the Company issued an additional $85.0 million principal amount of 7% Senior Notes. The additional 7% Senior Notes issued have terms identical to the previously issued notes in the series, other than the date of issue, the initial purchase price to the public and the first interest payment date. The additional 7% Senior Notes trade interchangeably with and vote together with, the previously issued 7% Senior Notes. The 7% Senior Notes were offered by the underwriters at a price of

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99.108% (original issuance) and 94.976% (additional issuance) of their principal amount, providing an effective yield to investors of 7.072% (original issuance) and 7.449% (additional issuance).

The 4.7% Senior Notes and the 7% Senior Notes (collectively, the "Senior Notes") are senior unsecured obligations of Endurance Holdings and rank equally with all of Endurance Holdings' existing and future unsecured and unsubordinated debt. The Senior Notes are also effectively junior to claims of creditors of Endurance Holdings' subsidiaries, including policyholders, trade creditors, debt holders, and taxing authorities.

The indentures governing the Senior Notes contain customary covenants and events of default for senior unsecured indebtedness, including events of default for non-payment of principal or interest, breaches of covenants, insolvency of the Company or a default by the Company under other outstanding indebtedness. The Company was in compliance with all covenants contained within the indentures governing the Senior Notes as of December 31, 2016.

Given that the Company's Senior Notes and the Credit Facility contain cross default provisions, the risk exists that the holders of the Senior Notes and the lenders under the Credit Facility may declare such debt due and payable, which could result in an acceleration of all debt due under both the Senior Notes and the Credit Facility. If this were to occur, the Company may not have funds sufficient to repay any or all of such indebtedness.

Trust Preferred Securities. Upon closing of the acquisition of Montpelier, Montpelier, as issuer, Endurance Holdings, as parent guarantor, and Wilmington Trust Company, as trustee, entered into the Second Supplemental Indenture, dated as of July 31, 2015 (the "Second Supplemental Indenture"). The Second Supplemental Indenture amended the Junior Subordinated Indenture, dated as of January 6, 2006 (as amended and supplemented from time to time (collectively, the "Junior Subordinated Supplemental Indentures")). The Junior Subordinated Supplemental Indentures provided for the express assumption by Endurance Holdings of the due and punctual payment of the principal of and any premium and interest (including any additional interest) on the unsecured junior subordinated deferrable interest notes issued by Montpelier in connection with the issuance of the trust preferred securities (the "Trust Preferred Securities") by MRH Capital Trust III (the "MRH Capital Trust") and the performance of every covenant of the Junior Subordinated Indenture on the part of Montpelier to be performed or observed. The MRH Capital Trust originally issued the Trust Preferred Securities in January 2006 in an aggregate principal amount of $100.0 million. The Trust Preferred Securities mature on March 30, 2036 and bear interest at a floating rate of 3-month LIBOR plus 380 basis points, reset quarterly. The Trust Preferred Securities may be redeemed prior to maturity at a redemption price equal to 100% of the principal amount thereof plus accrued interest, provided that the prior approval of any applicable insurance regulatory authority with respect to such redemption has been received. The Trust Preferred Securities do not contain any covenants regarding financial ratios or specified levels of net worth or liquidity to which the Company or any of its subsidiaries must adhere.

At December 31, 2016, the carrying value of the Senior Notes and Trust Preferred Securities stood at $705.3 million while the fair value as determined by quoted market valuation was $770.7 million.

LIBOR Swap. Upon closing of the acquisition of Montpelier, the Company became a party to the LIBOR Swap, which will result in the future net cash flows in connection with the Trust Preferred Securities for the 5-year period beginning March 30, 2012 being the same as if these securities bore interest at a fixed rate of 4.905%, provided the Company holds the LIBOR Swap to its maturity. Net realized and unrealized gains and losses associated with the LIBOR Swap are reported within net realized and unrealized gains on the Company's Consolidated Statements of Income and Comprehensive Income, as opposed to interest expense.

BCRH Credit Agreement. On May 6, 2016, the Company, through a wholly-owned subsidiary, entered into a credit facility agreement with BCRH (the "BCRH Credit Facility"). The BCRH Credit Facility provides BCRH with an unsecured $20.0 million revolving credit facility for working capital and general corporate purposes and expires on September 30, 2018. Borrowings under the BCRH Credit Facility bear interest, set at the time of the borrowing, at a rate equal to the applicable LIBOR rate plus 150 basis points.  The BCRH Credit Facility contains covenants that limit BCRH's ability, among other things, to grant liens on its assets, sell assets, merge or consolidate, or incur debt.  If BCRH fails to comply with any of these covenants, the Company could terminate the BCRH Credit Facility and exercise remedies against BCRH. In addition, in the event of a default in the performance of any of the agreements or covenants under certain management agreements with BCML by BCRH, the Company has the right to terminate the BCRH Credit Facility. As of December 31, 2016, BCRH had no outstanding borrowings under the BCRH Credit Facility.

BCGR Credit Agreement. On May 16, 2016, the Company, through a wholly-owned subsidiary, entered into a credit facility agreement with BCGR (the "BCGR Credit Facility"). The BCGR Credit Facility provides BCGR with an unsecured $20.0 million revolving credit facility for working capital and general corporate purposes and expires on September 30, 2018. Borrowings under the BCGR Credit Facility bear interest, set at the time of the borrowing, at a rate equal to the applicable LIBOR rate plus 150 basis points.  The BCGR Credit Facility contains covenants that limit BCGR's ability, among other things,

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to grant liens on its assets, sell assets, merge or consolidate, or incur debt.  If BCGR fails to comply with any of these covenants, the Company could terminate the BCGR Credit Facility and exercise remedies against BCGR. In addition, in the event of a default in the performance of any of the agreements or covenants under certain management agreements with BCML by BCGR, the Company has the right to terminate the BCGR Credit Facility. As of December 31, 2016, BCGR had no outstanding borrowings under the BCGR Credit Facility.

Preferred Shares. On November 24, 2015, Endurance Holdings issued 9,200 shares of its 6.35% Non-Cumulative Preferred Shares, Series C (the "Series C Preferred Shares") (equivalent to 9,200,000 Depositary Shares), each of which represents a 1/1,000th interest in a Series C Preferred Share, $1.00 par value and $25,000.00 liquidation preference per share (equivalent to $25.00 per Depositary Share). The Series C Preferred Shares sold were registered under the Securities Act of 1933, as amended. The Series C Preferred Shares were issued at a price to the public of $25,000.00 per share (equivalent to $25.00 per Depositary Share). Endurance Holdings received net proceeds of $222.0 million from its offering of Series C Preferred Shares, after expenses and underwriting discounts. The proceeds of the offering of Series C Preferred Shares were used to redeem on December 24, 2015 all 8,000,000 of Endurance Holdings' outstanding 7.75% Non-Cumulative Preferred Shares, Series A, and for general corporate purposes.

On June 1, 2016, Endurance Holdings redeemed all 9,200,000 of its 7.5% Non-Cumulative Preferred Shares, Series B (the "Series B Preferred Shares"). The Series B Preferred shares were redeemed at a redemption price of $25.00 per share together with an amount equal to any dividends that were declared but not paid prior to June 1, 2016.

The Series C Preferred shares are traded on the New York Stock Exchange. The Series C Preferred Shares have no stated maturity date and are redeemable in whole or in part at the option of Endurance Holdings any time after December 15, 2020 at a redemption price of $25,000.00 per Series C Preferred Share (equivalent to $25.00 per Depositary Share), plus any declared and unpaid dividends, without accumulation of any undeclared dividends. Endurance Holdings may redeem all but not less than all of the Series C Preferred Shares before the redemption date at a redemption price of $26,000.00 per Series C Preferred Share (equivalent to $26.00 per Depositary Share), plus any declared and unpaid dividends to the date of redemption, if Endurance Holdings is required to submit a proposal to the holders of the Series C Preferred Shares concerning an amalgamation, consolidation, merger, similar corporate transaction, change in Bermuda law or other matter that requires the vote of the holders of the Series C Preferred Shares voting separately as a single class.

Dividends on the Series C Preferred Shares, when, as and if declared by the Board of Directors of Endurance Holdings or a duly authorized committee of the board, accrue and are payable on the liquidation preference amount from the original issue date, quarterly in arrears on each dividend payment date, at an annual rate of 6.35%. Dividends on the Series C Preferred Shares are not cumulative.

Upon any voluntary or involuntary liquidation, dissolution or winding-up of Endurance Holdings, holders of the Series C Preferred Shares and any parity shares are entitled to receive out of Endurance Holdings' assets available for distribution to shareholders, before any distribution is made to holders of Endurance Holdings' common equity securities, a liquidating distribution in the amount of $25,000.00 per Series C Preferred Share (equivalent to $25.00 per Depositary Share), plus any declared and unpaid dividends, without accumulation of any undeclared dividends. Distributions will be made pro rata as to the Series C Preferred Shares and any parity shares and only to the extent of Endurance Holdings' assets, if any, that are available after satisfaction of all liabilities to creditors.

Holders of the Series C Preferred Shares have no voting rights, except with respect to certain dividend non-payments or as otherwise required by Bermuda law or Endurance Holdings' bye-laws. 

On an ongoing basis, the Company expects its internally generated funds, together with borrowings available under the Credit Facility, capital generated from the offering and sale of its Senior Notes, Series C Preferred Shares and ordinary shares, to be sufficient to operate its business. However, there can be no assurance that the Company will not incur additional indebtedness or issue additional equity or hybrid securities in order to implement its business strategy or pay claims.

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Contractual Obligations. The Company's contractual obligations as of December 31, 2016 are summarized as follows:

	Payments due by period
Contractual Obligations	Total		Less than 1 year		1 - 3 years		3 - 5 years		More than 5 years
	(U.S. dollars in thousands)
Reserve for losses and loss expenses	$	4,905,138	$	1,720,760	$	1,607,684	$	737,181	$	839,513
4.7% Senior Notes	300,000		—		—		—		300,000
Interest on 4.7% Senior Notes	84,600		14,100		28,200		28,200		14,100
7% Senior Notes	335,000		—		—		—		335,000
Interest on 7% Senior Notes	422,100		23,450		46,900		46,900		304,850
Trust Preferred Securities(1)	100,000		—		—		—		100,000
Interest on Trust Preferred Securities(1)	98,100		4,905		9,810		9,810		73,575
Investment commitments(2)	92,214		92,214		—		—		—
Operating lease obligations(3)	201,862		15,895		42,365		40,159		103,443
Total	$	6,539,014	$	1,871,324	$	1,734,959	$	862,250	$	2,070,481

(1) Assumes that the Trust Preferred Securities are redeemed upon their maturity in March 2036, and that the interest rate thereon remains at 4.905% per year, the rate that has been set through the LIBOR swap.

(2) The Company entered into investment agreements to invest additional amounts in other investments.

(3) The Company leases office space and office equipment under various operating leases.

The Company expects to fund these estimated obligations noted in the table above through operating cash flows and existing cash and investments.

The following table summarizes the components of our capital resources at December 31, 2016 and 2015:

	2016			2015
	(U.S. dollars in thousands)
Senior notes and Trust Preferred Securities	$	705,285		$	717,497
Preferred shares	230,000			460,000
Common shareholders' equity	4,652,439			4,396,262
Total capital resources(1)	$	5,587,724		$	5,573,759
Ratio of debt to total capital resources	12.6		%	12.9		%
Ratio of debt plus preferred shares to total capital resources	16.7		%	21.1		%

(1) The Company also has Credit Facility and LOC Agreements capacity of $295.5 million and $438.4 million as at December 31, 2016 and 2015, respectively.

The Company believes that its operating subsidiaries have adequate capital resources in the aggregate, and the ability to produce sufficient cash flows to meet expected claims payments and operational expenses and to provide dividend payments to Endurance Holdings. In turn, we believe Endurance Holdings has at this time adequate capital resources, or the access to sufficient capital resources to meet its obligations, including but not limited to dividend payments to its ordinary and preferred shareholders, interest payments on its outstanding indebtedness and other liabilities as they come due.

Off-Balance Sheet Arrangements

Certain of our ongoing obligations to Selective in connection with the sale of MUSIC constitute off-balance sheet arrangements. Excluding these specific transactions, as of December 31, 2016, we were not party to any off-balance sheet arrangements, as defined by Item 303(a)(4) of Regulation S-K, to which an entity unconsolidated with us is a party that management believes is reasonably likely to have a current or future effect on our financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that we believe is material to investors.

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Currency and Foreign Exchange

The Company's functional currencies are U.S. dollars for its U.S. and Bermuda operations and British Sterling for its U.K. operations. The reporting currency for all entities is U.S. dollars. The Company maintains a portion of its investments and liabilities in currencies other than the U.S. dollar. The Company has made a significant investment in the capitalization of Endurance U.K. which was valued at £426.3 million as of December 31, 2016 ($526.7 million in U.S. dollars). Endurance U.K. is subject to the United Kingdom's Prudential Regulation Authority rules concerning the matching of the currency of its assets to the currency of its liabilities. Depending on the profile of Endurance U.K.'s liabilities, it may be required to hold some of its assets in currencies corresponding to the currencies of its liabilities. The Company may, from time to time, experience losses resulting from fluctuations in the values of foreign currencies, which could have a material adverse effect on the Company's results of operations. The Company's investment in Endurance at Lloyd's is primarily through Funds at Lloyd's, which is denominated in U.S. dollars.

Assets and liabilities of foreign operations whose functional currency is not the U.S. dollar are translated at exchange rates in effect at the balance sheet date. Revenues and expenses of such foreign operations are translated at average exchange rates during the year. The effect of the translation adjustments for foreign operations is included in accumulated other comprehensive loss.

Other monetary assets and liabilities denominated in foreign currencies are revalued at the exchange rates in effect at the balance sheet date with the resulting foreign exchange gains and losses included in earnings. Revenues and expenses denominated in foreign currencies are translated at the prevailing exchange rate on the transaction date.

For the year ended December 31, 2016, 16.9% of the Company's gross premiums were written in currencies other than the U.S. dollar. The portions of the Company's cash and cash equivalents, investments, net premium receivable and insurance and reinsurance balances receivable, and reserves for loss and loss expenses denominated in non-U.S. currencies at December 31, 2016 were approximately 24.3%, 3.8%, 11.8%, 6.0% and 16.4%, respectively. As of December 31, 2016, the Company's principal foreign currency exposures are denominated in British Sterling and Euros. The Company measures and manages its exposure in these currencies, among others, by monitoring its estimated gross and net asset positions. In order to estimate such exposures, the Company considers currency specific investments, cash and cash equivalents, premiums receivable, reserve for losses and loss expenses, and unearned premiums. As of December 31, 2016, the total estimated gross asset and net liability balances denominated in Euros were $233.8 million and $23.9 million, respectively. The total estimated gross and net asset balances denominated in British Sterling were $261.9 million and $8.1 million, respectively. Assuming all other variables are held constant and disregarding any tax effects, a 10% change in the U.S. dollar relative to these currencies could result in a $1.6 million increase or decrease in the net assets held by the Company at December 31, 2016.

Effects of Inflation

The effects of inflation could cause the severity of claims to rise in the future. The Company's estimates for losses and loss expenses include assumptions about future payments for settlement of claims and claims handling expenses, such as medical treatments and litigation costs. To the extent inflation causes these costs to increase above reserves established for these claims, the Company will be required to increase the reserve for losses and loss expenses with a corresponding reduction in its earnings in the period in which the deficiency is identified. In addition, inflation could lead to higher interest rates causing the current unrealized gain position on the Company's fixed maturity portfolio to decrease or become an unrealized loss position. The current short duration of the Company's fixed maturity portfolio has the potential to help reduce the negative effects of higher interest rates on the Company's fixed maturity portfolio. The Company may also choose to hold its fixed income investments to maturity which would result in the unrealized gains largely amortizing through net investment income.

Reserve for Losses and Loss Expenses

Reserving Process

The Company establishes loss and loss expense reserves to provide for the estimated costs of paying claims under insurance policies and reinsurance contracts underwritten by the Company. These reserves include estimates for both claims that have been reported and those that have been incurred but not reported and include estimates of all expenses associated with processing and settling these claims. Estimating the ultimate cost of future claims and claim adjustment expenses is an uncertain and complex process. This estimation process is based largely on the assumption that past developments are an appropriate predictor of future events and involves a variety of actuarial techniques and judgments that analyze experience, trends and other relevant factors.

The Company's reserving actuaries, who report separately from the Company's business units, review the Company's loss and loss expense reserves on a quarterly basis for both current and prior accident years using the most current claims data. These reserve reviews incorporate a variety of actuarial methods and judgments, including the three most common methods of

96

actuarial evaluation used within the insurance industry: the expected loss ratio method; the Bornhuetter-Ferguson method; and the loss development method. The expected loss ratio approach is based on expected results independent of current loss reporting activity. This approach is typically used for immature loss periods (i.e., the current accident year). The Bornhuetter-Ferguson method uses an initial loss estimate (expected loss technique) for each accident year by business line and type of contract. Under this method, IBNR is set equal to the initial loss estimate multiplied by the expected percent of loss yet to be reported at each valuation date. In a given quarter, if reported losses are less than expected, then the difference would result in a decrease in estimated ultimate losses. If losses for the quarter are greater than expected, then the difference would result in an increase in estimated ultimate losses. In contrast, the loss development method extrapolates the current value of reported losses to ultimate expected losses by using selected reporting patterns of losses over time. The selected reporting patterns are based on historical information (organized into loss development triangles) and are adjusted to reflect the changing characteristics of the book of business written by the Company. The Company uses these multiple methods, supplemented with its own actuarial and professional judgment, to establish its best estimate of loss and loss expense reserves.

The estimate of the reserve for losses and loss expenses is reviewed each quarter by the Company's Loss Reserve Committee, consisting of the Company's Chief Executive Officer, Chief Financial Officer, Chief Risk Officer and Group Actuary, Chief Reserving Actuary, General Counsel and representatives of various disciplines from within the Company, such as underwriting, claims, actuarial pricing and legal.

Current Reserve for Losses and Loss Expenses

As more fully described under "Reserving Process" above, the Company incorporates a variety of actuarial methods and judgments in its reserving process. Two key inputs in the various actuarial methods employed by the Company are initial expected loss ratios and expected loss reporting patterns. These key inputs impact the potential variability in the estimate of the reserve for losses and loss expenses and are applicable to each of the Company's business segments. The Company's loss and loss expense reserves consider and reflect, in part, deviations resulting from differences between expected loss and actual loss reporting as well as judgments relating to the weights applied to the reserve levels indicated by the actuarial methods. Expected loss reporting patterns are based upon internal and external historical data and assumptions regarding claims reporting trends over a period of time that extends beyond the Company's own operating history. Refer to Note 6, "Reserves for loss and loss expenses" in the Notes to the Consolidated Financial Statements of the Company for additional information related to claims development.

Differences between actual reported losses and expected losses are anticipated to occur in any individual period and such deviations may influence future initial expected loss ratios and/or expected loss reporting patterns as recent actual experience becomes part of the historical data utilized as part of the ongoing reserve estimation process. The Company has demonstrated the impact of changes in the speed of loss reporting patterns, as well as changes in expected loss ratios, within the table under the heading "Potential Variability in Reserves for Losses and Loss Expenses" below.

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Current and prior year incurred losses and loss expenses by segment and line of business for the year ended December 31, 2016 were as follows:

	Incurred related to:					Total incurred
	Current year		Prior years			losses
	(U.S. dollars in thousands)
Insurance segment:
Agriculture	$	201,002	$	(16,569	)	$	184,433
Casualty and other specialty	191,462		(31,881		)	159,581
Professional lines	111,293		205			111,498
Property, marine/energy and aviation	257,558		(28,892		)	228,666
Total Insurance	761,315		(77,137		)	684,178
Reinsurance segment:
Catastrophe	140,696		(32,663		)	108,033
Property	166,785		(20,854		)	145,931
Casualty	149,674		(20,111		)	129,563
Professional lines	150,158		(31,052		)	119,106
Specialty	173,974		(39,733		)	134,241
Total Reinsurance	781,287		(144,413		)	636,874
Totals	$	1,542,602	$	(221,550	)	$	1,321,052

Losses and loss expenses for the year ended December 31, 2016 include $221.6 million in favorable development of reserves relating to prior accident years. The favorable loss reserve development experienced during 2016 benefited the Company’s 2016 reported loss ratio by approximately 9.4 percentage points. The net reduction in estimated losses for prior accident years reflects lower than expected loss emergence in each of the Company's reserve categories within both the Insurance and Reinsurance segments.

For the year ended December 31, 2016, as part of the Company's periodic review of key inputs and parameters it uses to establish its reserve for losses and loss expenses and in order to recognize accumulated historical experience and other relevant industry information, the Company made minor adjustments to the loss reporting patterns used for a number of lines of business. For the year ended December 31, 2016, the Company did not materially alter initial expected loss ratios for business related to prior years for the insurance and reinsurance reserve categories as the variances in reported losses in 2016 for those reserve categories were within the range of possible results anticipated by the Company.

Current and prior year incurred losses and loss expenses by segment and line of business for the year ended December 31, 2015 were as follows:

	Incurred related to:					Total incurred
	Current year		Prior years			losses
	(U.S. dollars in thousands)
Insurance segment:
Agriculture	$	241,590	$	(1,331	)	$	240,259
Casualty and other specialty	144,865		(54,594		)	90,271
Professional lines	80,166		(194		)	79,972
Property, marine/energy and aviation	116,247		(25,882		)	90,365
Total Insurance	582,868		(82,001		)	500,867
Reinsurance segment:
Catastrophe	45,977		(32,260		)	13,717
Property	150,717		(29,364		)	121,353
Casualty	114,832		(34,730		)	80,102
Professional lines	124,041		(26,108		)	97,933
Specialty	142,137		(39,001		)	103,136
Total Reinsurance	577,704		(161,463		)	416,241
Totals	$	1,160,572	$	(243,464	)	$	917,108

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Losses and loss expenses for the year ended December 31, 2015 include $243.5 million in favorable development of reserves relating to prior accident years. The favorable loss reserve development experienced during 2015 benefited the Company's 2015 reported loss ratio by approximately 12.3 percentage points. The net reduction in estimated losses for prior accident years reflects lower than expected loss emergence in each of the Company's reserve categories within both the Insurance and Reinsurance segments.

For the year ended December 31, 2015, as part of the Company's periodic review of key inputs and parameters it uses to establish its reserve for losses and loss expenses and in order to recognize accumulated historical experience and other relevant industry information, the Company adjusted the loss reporting patterns used for a limited number of business units within the Insurance and Reinsurance segments. For the Insurance segment, the loss reporting patterns were accelerated for the healthcare business within the casualty and other specialty line of business, and slowed for the professional liability business within the professional line of business. For the Reinsurance segment, the loss reporting pattern used for the U.S. and international property catastrophe business within the catastrophe line of business was accelerated for the most recent accident year and slowed for subsequent accident years.

Insurance

Agriculture. The favorable loss emergence within the agriculture insurance line of business during 2016 resulted from lower than anticipated agriculture claims settlements for the 2015 crop year, particularly for the multi-peril crop insurance product. During 2015, there was a modest amount of favorable loss emergence due to lower than anticipated agriculture claims settlements for the 2014 crop year.

Casualty and other specialty. The favorable loss emergence within the casualty and other specialty insurance line of business during 2016 was primarily due to lower than expected claims activity within the Bermuda excess casualty and healthcare businesses, which more than offset unfavorable loss emergence within the United States contract binding general liability business. In 2015, the Company recorded favorable loss emergence within this line of business primarily due to lower than expected claims activity within the Bermuda excess casualty business and a reduction in claims made year 2010 and prior IBNR for the Bermuda healthcare liability business due to case incurred loss activity and open claim counts being less than expected.

Professional lines. Loss emergence within the professional liability line of business during 2016 and 2015 was largely in line with expectations resulting in modest amounts of development in prior year reserves.

Property, marine/energy and aviation. The favorable loss emergence within the property, marine/energy and aviation line of business during 2016 and 2015 was primarily due to lower than expected reported claim emergence within the Company's U.K. property and energy businesses.

Reinsurance

Catastrophe. The Company recorded favorable loss emergence within the catastrophe line of business during 2015 and 2016 primarily due to lower than expected claims activity within the U.S. and international property catastrophe businesses.

Property. The Company recorded favorable loss emergence in the property line of business in 2016 due primarily to lower than expected claims activity within the Bermuda and United States property lines of business. The Company recorded favorable loss emergence in the property line of business during 2015 primarily due to lower than expected claims activity within the property treaty business for accident years 2012 and 2013.

Casualty. The Company recorded favorable prior period development within this line of business during 2016 due to lower than expected claims activity within the Company’s Bermuda casualty treaty businesses. The Company recorded favorable prior period development within this line of business during 2015 primarily due to lower than expected claims activity within the Company’s Bermuda and United States regional casualty treaty businesses.

Professional lines. The favorable loss emergence within this line of business during 2016 was primarily due to lower than expected claims emergence in accident years 2012 and 2013. The favorable loss emergence within this line of business during 2015 was primarily due to lower than expected claims emergence for accident years 2010-2013.

Specialty. The Company recorded favorable loss emergence within this line of business during 2016 primarily due to lower than expected claims emergence in the marine, aerospace, political risk, surety, and mortgage businesses. The Company recorded favorable loss emergence within this line of business during 2015 primarily due to lower than expected claims emergence in the Company's aerospace, political risk, and surety businesses, as well as an IBNR reduction for the Company's self insured risk business, which was shut down in 2003.

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Case and IBNR reserves for losses and loss expenses by segment and line of business were as follows at December 31, 2016:

	Case Reserves		IBNR Reserves		Reserve for Losses and Loss Expenses
	(U.S. dollars in thousands)
Insurance segment:
Agriculture	$	195,981	$	51,906	$	247,887
Casualty and other specialty	299,684		1,072,560		1,372,244
Professional lines	155,631		555,743		711,374
Property, marine/energy and aviation	295,430		172,054		467,484
Total Insurance	946,726		1,852,263		2,798,989
Reinsurance segment:
Catastrophe	150,408		59,436		209,844
Property	220,223		100,122		320,345
Casualty	233,374		499,459		732,833
Professional lines	87,138		338,034		425,172
Specialty	153,581		264,374		417,955
Total Reinsurance	844,724		1,261,425		2,106,149
Totals	$	1,791,450	$	3,113,688	$	4,905,138

Case and IBNR reserves for losses and loss expenses by segment and line of business were as follows at December 31, 2015:

	Case Reserves		IBNR Reserves		Reserve for Losses and Loss Expenses
	(U.S. dollars in thousands)
Insurance segment:
Agriculture	$	226,753	$	57,799	$	284,552
Casualty and other specialty	267,877		1,010,083		1,277,960
Professional lines	116,920		464,638		581,558
Property, marine/energy and aviation	226,894		122,930		349,824
Total Insurance	838,444		1,655,450		2,493,894
Reinsurance segment:
Catastrophe	109,374		80,851		190,225
Property	229,283		112,026		341,309
Casualty	247,802		524,917		772,719
Professional lines	70,301		285,692		355,993
Specialty	142,217		214,058		356,275
Total Reinsurance	798,977		1,217,544		2,016,521
Totals	$	1,637,421	$	2,872,994	$	4,510,415

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Selected quarterly activity in the reserve for losses and loss expenses for the years ended December 31, 2016 and 2015 is summarized as follows:

	Quarter Ended    March 31, 2016			Quarter Ended    June 30, 2016			Quarter Ended    September 30, 2016			Quarter Ended    December 31, 2016			Year Ended December 31, 2016
	(U.S. dollars in thousands)
Incurred related to:
Current year	$	304,437		$	434,747		$	385,714		$	417,704		$	1,542,602
Prior years	(61,109		)	(58,635		)	(54,252		)	(47,554		)	(221,550		)
Total incurred	$	243,328		$	376,112		$	331,462		$	370,150		$	1,321,052
Paid related to:
Current year	$	(7,051	)	$	(46,513	)	$	(92,862	)	$	(149,436	)	$	(295,862	)
Prior years	(333,227		)	(207,596		)	(177,027		)	(172,178		)	(890,028		)
Total paid	$	(340,278	)	$	(254,109	)	$	(269,889	)	$	(321,614	)	$	(1,185,890	)
	Quarter Ended    March 31, 2015			Quarter Ended    June 30, 2015			Quarter Ended    September 30, 2015			Quarter Ended    December 31, 2015			Year Ended December 31, 2015
	(U.S. dollars in thousands)
Incurred related to:
Current year	$	229,094		$	297,958		$	331,340		$	302,180		$	1,160,572
Prior years	(57,158		)	(58,836		)	(67,347		)	(60,123		)	(243,464		)
Total incurred	$	171,936		$	239,122		$	263,993		$	242,057		$	917,108
Paid related to:
Current year	$	1,971		$	(27,807	)	$	(113,105	)	$	(126,958	)	$	(265,899	)
Prior years	(304,617		)	(196,734		)	(202,858		)	(163,530		)	(867,739		)
Total paid	$	(302,646	)	$	(224,541	)	$	(315,963	)	$	(290,488	)	$	(1,133,638	)

Potential Variability in Reserves for Losses and Loss Expenses

The Company's estimated reserve for losses and loss expenses can change over time due to unexpected changes in the external business environment in which the Company operates or changes in internal Company operations. For a discussion of the factors which can contribute to uncertainty in the reserving process and volatility in the reserve for losses and loss expenses, see "Critical Accounting Estimates – Reserves for Losses and Loss Expenses" above.

Two key inputs utilized in determining loss and loss expense reserves for the Company's two business segments are the initial expected loss ratio and the speed of the loss reporting pattern. The following tables illustrate the possible percentage effects on current estimates of the reserve for losses and loss expenses due to 10% changes in the initial expected loss ratio and the percent of loss yet to be reported at each valuation date as of December 31, 2016. The 10% changes in the initial expected loss ratio and the percent of loss yet to be reported were chosen to demonstrate the impact on the Company's loss and loss expense reserves of variation in key inputs and, as described below, may not be reflective of actual changes in loss and loss expense reserves.

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Insurance

Agriculture

Potential Percentage Change in Total Loss and Loss Expense Reserves

	Initial Expected Loss Ratio
Reporting Pattern	10% Lower		Unchanged		10% Higher
10% Faster	(1.1	)%	(0.7	)%	(0.4	)%
Unchanged (1)	(0.4	)%	—	%	0.4	%
10% Slower	0.3	%	0.7	%	1.2	%
Casualty and other specialty Potential Percentage Change in Total Loss and Loss Expense Reserves
	Initial Expected Loss Ratio
Reporting Pattern	10% Lower		Unchanged		10% Higher
10% Faster	(13.2	)%	(9.1	)%	(5.0	)%
Unchanged	(4.6	)%	—	%	4.6	%
10% Slower	6.1	%	11.1	%	16.1	%
Professional lines Potential Percentage Change in Total Loss and Loss Expense Reserves
	Initial Expected Loss Ratio
Reporting Pattern	10% Lower		Unchanged		10% Higher
10% Faster	(12.9	)%	(8.2	)%	(3.5	)%
Unchanged	(5.2	)%	—	%	5.2	%
10% Slower	5.3	%	11.0	%	16.6	%
Property, marine/energy and aviation Potential Percentage Change in Total Loss and Loss Expense Reserves
	Initial Expected Loss Ratio
Reporting Pattern	10% Lower		Unchanged		10% Higher
10% Faster	(9.6	)%	(7.7	)%	(5.9	)%
Unchanged	(2.1	)%	—	%	2.1	%
10% Slower	6.6	%	8.9	%	11.1	%

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Reinsurance

Catastrophe

Potential Percentage Change in Total Loss and Loss Expense Reserves

	Initial Expected Loss Ratio
Reporting Pattern	10% Lower		Unchanged		10% Higher
10% Faster	(4.1	)%	(3.1	)%	(2.0	)%
Unchanged	(1.2	)%	—	%	1.2	%
10% Slower	2.0	%	3.3	%	4.6	%
Property Potential Percentage Change in Total Loss and Loss Expense Reserves
	Initial Expected Loss Ratio
Reporting Pattern	10% Lower		Unchanged		10% Higher
10% Faster	(6.5	)%	(4.6	)%	(2.6	)%
Unchanged	(2.1	)%	—	%	2.1	%
10% Slower	3.4	%	5.7	%	8.0	%
Casualty Potential Percentage Change in Total Loss and Loss Expense Reserves
	Initial Expected Loss Ratio
Reporting Pattern	10% Lower		Unchanged		10% Higher
10% Faster	(12.1	)%	(8.4	)%	(4.6	)%
Unchanged	(4.2	)%	—	%	4.2	%
10% Slower	6.4	%	11.0	%	15.5	%
Professional lines Potential Percentage Change in Total Loss and Loss Expense Reserves
	Initial Expected Loss Ratio
Reporting Pattern	10% Lower		Unchanged		10% Higher
10% Faster	(15.7	)%	(9.4	)%	(3.0	)%
Unchanged	(7.1	)%	—	%	7.1	%
10% Slower	4.7	%	12.2	%	19.8	%
Specialty Potential Percentage Change in Total Loss and Loss Expense Reserves
	Initial Expected Loss Ratio
Reporting Pattern	10% Lower		Unchanged		10% Higher
10% Faster	(9.4	)%	(6.1	)%	(2.8	)%
Unchanged	(3.7	)%	—	%	3.7	%
10% Slower	4.9	%	9.0	%	13.0	%

(1) Reporting pattern changes are not applicable to the agricultural business as it is typically settled at an established time each year.

Each of the impacts set forth in the tables above is estimated individually, without consideration for any correlation among key assumptions or among lines of business. Therefore, it would be inappropriate to take each of the amounts set forth above and add them together in an attempt to estimate volatility for the Company's loss and loss expense reserves in total. The Company believes the assumed variations in loss and loss expense reserves set forth in the tables above represents a reasonable estimate of possible loss and loss expense reserve variations that may occur in the future. It is important to note that the variations set forth in the tables above are not meant to be a "best-case" or "worst-case" series of scenarios, and therefore, it is possible that future variations may be more or less than the amounts set forth above.

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Ceded Reinsurance

Ceded premiums written were $1,832.2 million for the year ended December 31, 2016, $1,370.4 million for the year ended December 31, 2015 and $959.9 million for the year ended December 31, 2014. The increase in ceded premiums written was primarily due to decreased retentions across our entire Insurance segment as the Company increased the whole account quota share treaty providing protection across the Insurance segment's book of business for 2016. In addition, the Company purchased additional quota share, facultative and excess of loss reinsurance across most Insurance lines of business, and increased quota share coverage on the agriculture Insurance line of business. In the Reinsurance segment, ceded premium written increased as the Company purchased increased levels of protection, including additional proportional and excess of loss retrocessional coverage on the catastrophe line of business, and additional proportional coverage on the specialty line of business.

The Company's U.S., U.K. and Bermuda insurance operating subsidiaries use proportional and excess reinsurance to protect larger limits on certain business written by the Insurance segment. The Company's agriculture Insurance line of business participates in a crop reinsurance program sponsored by the U.S. federal government and utilizes third party reinsurance covers. Excess reinsurance coverage is often purchased in relation to the property Insurance line of business to protect against catastrophic events.

At December 31, 2016 and 2015, the Company had reinsurance recoverables of $1,486.9 million and $1,196.0 million, respectively, related to its ceded reinsurance agreements. The Company remains obligated for amounts ceded in the event that its reinsurers or retrocessionaires do not meet their obligations, except for amounts ceded to the U.S. federal government in the agriculture line of business. Accordingly, the Company has evaluated the reinsurers and retrocessionaires that are providing reinsurance and retrocessional protection and will continue to monitor the stability of its reinsurers and retrocessionaires. At December 31, 2016 and 2015, the Company held collateral of $493.3 million and $321.5 million, respectively, related to its ceded reinsurance agreements. The balance of losses recoverable at December 31, 2016 was distributed as follows based on the ratings of the reinsurers:

Rating	December 31, 2016		December 31, 2015
	(U.S. dollars in thousands)
U.S. Government sponsored program	$	141,443	$	234,596
A+ and above	889,814		458,255
A	397,691		476,184
A-	5,805		7,060
Not rated	52,165		19,875
Total	$	1,486,918	$	1,195,970

Goodwill and Intangible Assets

Goodwill and other intangibles that arise from business combinations are accounted for by the Company in accordance with the applicable accounting guidance on "Business Combinations" and "Goodwill and Other Intangible Assets." The accounting literature requires that identifiable intangible assets are amortized in accordance with their useful lives and goodwill and intangible assets with indefinite useful lives should not be amortized but should be tested for impairment at least annually.

The Company's intangible assets and goodwill are tested at least annually for impairment and more often if a triggering event is deemed to have occurred. Impairment testing for indefinite-lived intangible assets is performed based upon estimates of the fair value of the asset. The Company uses internal and third party valuation appraisals to estimate the fair value of its indefinite-lived intangible assets. Impairment testing for goodwill is performed based upon estimates of the fair value of the "reporting unit" to which the goodwill relates. The reporting unit is the operating segment or a business one level below that operating segment if discrete financial information is prepared and regularly reviewed by management at that level. The Company's reporting units identified include the agriculture line of business in the Insurance segment, Syndicate 5151 in the Insurance segment, the remaining Insurance segment lines of business, and the Reinsurance segment. The fair value of the reporting unit is impacted by the performance of the business. The Company uses a combination of market and income approaches to estimate fair value of its reporting units. There have been no significant changes in the Company's methodologies from the prior year. If it is determined that goodwill or intangible assets with indefinite useful lives have been impaired, the Company must write down the goodwill or intangible asset by the amount of the impairment, with a corresponding charge to net income.

During the fourth quarter of 2016, the Company performed its annual impairment testing of goodwill.The Company has three primary sources of goodwill – goodwill obtained from a renewal rights transaction completed in 2003 with HartRe, goodwill obtained from the Company’s acquisition of ARMtech in 2007 and goodwill obtained from the Company's acquisition

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of Montpelier in 2015. The Company determined that the appropriate reporting units for evaluation were the Reinsurance segment in relation to HartRe and part of the Montpelier acquisition, the agriculture line of business of the Insurance segment in relation to the ARMtech goodwill, and Syndicate 5151 in the Insurance segment in relation to the Montpelier acquisition. The Company qualitatively reviewed each of its reporting units given the recent proposed acquisition of the Company by Sompo. Based on the results of the qualitative review, the Company believed that it was more likely than not that the fair values of the Reinsurance and Syndicate 5151 reporting units were in excess of their carrying values. As a result, no additional analysis was completed. For the ARMtech reporting unit, the Company used a discounted cash flow approach to estimate the fair value of this reporting unit. The fair value determined was in excess of the carrying value including goodwill for ARMtech. As a result of the goodwill impairment testing, no write-downs of goodwill were deemed necessary during 2016 and 2015.

During the fourth quarter of 2016, the Company performed its annual impairment testing of its intangible assets with indefinite useful lives. The Company's intangible assets with indefinite lives are its insurance licenses and the Lloyd's syndicate capacity. For the years ended December 31, 2016 and 2015, no impairment was recognized for the Company's intangible assets with indefinite lives.

Income Taxes

The Company is subject to income taxes on the operations of its subsidiaries and branch offices in the United States, United Kingdom, Switzerland and Singapore. The Company is not required to pay any income or capital gains taxes on its operations in Bermuda.

The Company's income tax expense was as follows for the years ended December 31, 2016, 2015 and 2014, respectively:

	2016			2015			2014
	(U.S. dollars in thousands)
Current income tax expense	$	(10,993	)	$	(6,262	)	$	(1,804	)
Deferred income tax benefit (expense)	11,174			1,900			1,414
Income tax benefit (expense)	$	181		$	(4,362	)	$	(390	)

Of the 2016 current income tax expense, $1.8 million related to taxes incurred in the United States (2015 - $4.2 million; 2014 - $1.8 million), $4.2 million related to taxes incurred in the United Kingdom (2015 - $2.2 million; 2014 - nil) and $5.0 million related to taxes incurred in Switzerland (2015 - ($0.1 million); 2014 - nil). Of the deferred income tax benefit, $5.2 million related to deferred income tax benefit in the United States (2015 - $0.7 million; 2014 - $1.4 million), $1.7 million related to deferred income tax benefit in the United Kingdom (2015 - $0.2 million; 2014 - nil) and $4.2 million related to deferred income tax benefit in Bermuda including its branches (2015 - $1.0 million; 2014 - nil). The deferred income tax benefit in Bermuda related to amortization of intangible assets from the acquisition of Montpelier which the Company elected not to push down to Endurance at Lloyd's under current accounting guidance.

In 2016 a full valuation allowance has been recorded against the net deferred asset position of Endurance Bermuda's branches in Singapore and Switzerland. In 2015 a full valuation allowance had been recorded against the net asset position of Endurance Bermuda's branches in Singapore and Switzerland and United Kingdom subsidiary.

Net income tax payments in 2016, 2015, and 2014 totaled $7.8 million, $2.4 million and $0.9 million, respectively. Net operating loss carryforwards gross of tax in the amount of $119.8 million, $45.9 million, $61.1 million and $44.5 million are available for application against future taxable income in the United States, United Kingdom, and Endurance Bermuda's branches in Singapore and Switzerland, respectively. These net operating loss carry forwards have no expiration date in the United Kingdom and Singapore. In Switzerland and the United States, the net operating loss carry forwards expire through 2016 and 2028, respectively.

The Company's income before income taxes was distributed as follows for the years ended December 31, 2016, 2015 and 2014, respectively:

	2016		2015		2014
	(U.S. dollars in thousands)
U.S. (domestic)	$	40,872	$	95,649	$	60,112
Non-U.S. (foreign)	340,094		263,824		288,728
Pre-tax income	$	380,966	$	359,473	$	348,840

Gross premiums written and earned by our non-U.S. and U.S. operations generally do not bear a proportionate relationship to the respective pre-tax income of these operations. The disproportionate relationship between gross premium written and net income between our operations occurs as a result of various factors, including but not limited to the differences

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in the underlying type of business underwritten, the underwriting profitability attributable to such business, and the applicable investment income generated.

Pre-tax income for our non-U.S. operations was higher than that of our U.S. operations for the years ended December 31, 2016, 2015 and 2014. The higher pre-tax income in our non-U.S. operations resulted primarily from the more volatile catastrophe business underwritten in our non-U.S. operations having below average losses and thus generating higher levels of net underwriting income during the years ended December 31, 2016, 2015 and 2014. In addition, our non-U.S. operations hold a substantial amount of our invested assets and thus a larger portion of the Company’s investment income is earned in our non-U.S. operations as compared to our U.S. operations.

The Company has operating subsidiaries and branch operations in the United States, United Kingdom, Switzerland and Singapore, which are subject to the relevant taxes in those jurisdictions. During 2014, the United States Internal Revenue Service ("IRS") completed its audit of the income tax returns of the Company's U.S. subsidiaries for 2009, 2010 and 2011. The audit results were immaterial to the operations of the Company. During 2015, the IRS commenced an examination of the 2012 income tax return of Endurance Bermuda. Although the timing and ultimate resolution of the IRS examinations is uncertain, the Company does not expect the resolution of the examinations to result in a material change to the Company's financial position, results of operations or cash flows. In January 2017, the Switzerland tax authority issued a tax assessment for the Swiss branch of Endurance Bermuda for years 2013 and 2014. The Company disagrees with the assessment and is appealing the assessment. Although the timing and ultimate resolution of the Swiss assessment is uncertain, the Company does not expect the resolution of the examinations to result in a material change to the Company's financial position, results of operations or cash flows. As of December 31, 2016, none of the Company's other operating subsidiaries or branch operations were under examination in any of the jurisdictions in which they operate. The Company remains subject to examination for tax years 2008 through 2016.

As of December 31, 2016 and 2015, the Company had no material uncertain tax positions.

Deferred Tax Assets and Liabilities

The Company is subject to income taxes in certain jurisdictions in which the Company operates; however, since the majority of the Company's income is currently earned in Bermuda, a jurisdiction with no corporate income tax, the tax impact to the Company's operations has historically been minimal. In 2016, the Company generated income before income taxes in its subsidiaries, which generated a consolidated (0.1)% (2015 - 1.2%, 2014 - 0.1%) effective income tax rate.

The Company's balance sheet at December 31, 2016 contains a net deferred tax asset in the amount of $58.7 million (2015 - $46.8 million). The current year net deferred tax asset consists of gross deferred tax assets of $205.9 million, gross deferred tax liabilities of $42.3 million and a valuation allowance against certain operating loss carryforwards of $104.8 million (2015 - $131.1 million). Of the Company's gross deferred tax assets, $66.3 million (2015 - $92.8 million) relates to net operating loss carryforwards that are available to offset future taxable income generated by the Company’s United States subsidiaries, a United Kingdom subsidiary and Endurance Bermuda’s Singapore branch in 2016 and the Company's United States subsidiaries, a United Kingdom subsidiary and non-U.S. branches in 2015. The Company's net operating losses may be carried forward indefinitely in the United Kingdom and Singapore. In Switzerland and the United States the net operating loss carryforwards expire through 2016 and 2028, respectively.

In 2015 Management concluded that valuation allowances were required against the net operating loss and net capital loss carryforwards assumed as part of the Montpelier acquisition. The valuation allowances had been established as Internal Revenue Code Section 382 limits the application of net operating loss and net capital loss carryforwards following an ownership change. Accordingly, a tax effected valuation allowance of $11.6 million and $0.7 million, respectively, was required as of August 1, 2015. The Montpelier capital loss carryforwards have fully expired. Net operating loss carryforwards available per year are $0.2 million as required by Internal Revenue Code Section 382.

In 2016 valuation allowances were established against net deferred tax assets in the Company's United States subsidiaries and Endurance Bermuda's non-U.S. branches. In 2015 valuation allowances were established against net operating loss carryforwards in the Company's United States subsidiaries, United Kingdom subsidiary and non-U.S. branches. The increase in the valuation allowance was charged to the Company's income tax expense during 2016. Management believes the net deferred tax assets, less the valuation allowance noted, are more likely than not to be fully realized in corresponding future periods, and the Company's net deferred tax asset has been fairly stated as at December 31, 2016. In the event that management determines in the future that it is more likely than not that the net deferred tax assets will be fully realized in the near term and prior to their expiration, the Company will reassess the valuation allowance against the net deferred tax assets and record any changes to income tax expense in the period determined.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

The following is a discussion of our primary market risk exposures at December 31, 2016. Our policies to address these risks in 2016 were not materially different from 2015. The Company believes that it is principally exposed to the following types of market risk: interest rate risk, liquidity risk, foreign currency risk, investment and reinsurance counterparty credit risk, equity price risk, derivative counterparty credit risk, derivative interest rate risk, inflation, and energy and weather-related risk.

Interest Rate Risk. The Company's primary market risk exposure is to changes in interest rates. The Company's fixed maturity portfolio is exposed to interest rate risk. Fluctuations in interest rates have a direct impact on the market valuation of these securities. As interest rates rise, the fair value of our fixed income investments generally falls, and the converse is generally also true. The Company manages its interest rate risk through an asset liability matching strategy that involves the selection of investments with appropriate characteristics, such as duration, yield, currency and liquidity that are tailored to the anticipated cash outflow characteristics of our liabilities to create a match of assets and liabilities. The duration of the assets comprising the fixed income investments increased during the 2016 calendar year from approximately 2.74 years at December 31, 2015 to 3.04 years at December 31, 2016. A significant portion of the investment portfolio matures each quarter, allowing for reinvestment at current market rates. As of December 31, 2016, assuming parallel shifts in interest rates, the impact of these interest rate shifts in basis points on the Company's cash and fixed income investments of $7,871.1 million (2015 - $7,543.7 million) at December 31, 2016 and 2015 would have been as follows:

	Interest Rate Shift in Basis Points
December 31, 2016	(100)			(50)			—		50			100
	(U.S. dollars in millions)
Total fair value	$	8,073.5		$	7,974.8		$	7,871.1	$	7,764.3		$	7,657.5
Market value change from base	2.57		%	1.32		%	—		(1.36		)%	(2.71		)%
Change in unrealized value	$	202.4		$	103.7		$	—	$	(106.8	)	$	(213.6	)

	Interest Rate Shift in Basis Points
December 31, 2015	(100)			(50)			—		50			100
	(U.S. dollars in millions)
Total fair value	$	7,725.1		$	7,635.6		$	7,543.7	$	7,450.5		$	7,356.5
Market value change from base	2.40		%	1.22		%	—		(1.24		)%	(2.48		)%
Change in unrealized value	$	181.4		$	91.9		$	—	$	(93.2	)	$	(187.2	)

In addition, we consider the effect of credit spread movements on the market value of our fixed maturity investments, short-term investments and certain of our other investments that invest in fixed maturity securities and the corresponding change in unrealized appreciation. As credit spreads widen, the market value of our fixed maturity securities falls, and the converse is also true.

The following table summarizes the effect that an immediate, parallel shift in credit spreads in a static interest rate environment would have had on the Company's cash and fixed maturity portfolio at December 31, 2016 and 2015:

	Credit Spread Shift in Basis Points
December 31, 2016	(100)			(50)			—		50			100
	(U.S. dollars in millions)
Total fair value	$	8,029.9		$	7,950.8		$	7,871.1	$	7,791.3		$	7,712.2
Market value change from base	2.02		%	1.01		%	—		(1.01		)%	(2.02		)%
Change in unrealized value	$	158.8		$	79.7		$	—	$	(79.8	)	$	(158.9	)
	Credit Spread Shift in Basis Points
December 31, 2015	(100)			(50)			—		50			100
	(U.S. dollars in millions)
Total fair value	$	7,662.7		$	7,603.2		$	7,543.7	$	7,484.2		$	7,425.4
Market value change from base	1.58		%	0.79		%	—		(0.79		)%	(1.57		)%
Change in unrealized value	$	119.0		$	59.5		$	—	$	(59.5	)	$	(118.3	)

Another method used by the Company to evaluate investment portfolio risk is Value-at-Risk ("VaR"). VaR is a probabilistic method of measuring the potential loss in portfolio value over a given time period and for a given distribution of historical returns. Portfolio risk, as measured by VaR, is affected by four primary risk factors: asset concentration, asset volatility, asset correlation and systematic risk. For a one year period over 95% of the time, assuming the risks taken into

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account in the VaR model perform per their historical tendencies, the investment portfolio loss for this year period is expected to be less than or equal to 3.04% at December 31, 2016 and 2.66% at December 31, 2015.

Liquidity Risk. When financial markets experience a reduction in liquidity, our ability to conduct orderly investment transactions may be limited and may result in declines in fair values of the securities in our investment portfolio. In addition, if we require significant amounts of cash on short notice in excess of normal cash requirements (which could include claims on a major catastrophe event) in a period of market illiquidity, we may have difficulty selling our investments in a timely manner and may have to dispose of our investments for less than what may otherwise have been possible under other conditions.

Foreign Currency Risk. The Company has made a significant investment in the capitalization of Endurance U.K., which is denominated in British Sterling. In 2015, the Company acquired Syndicate 5151 from Montpelier whose capital was also denominated in British Sterling. As of January 1, 2016, the Company changed the functional currency of Syndicate 5151 from British Sterling to the U.S. Dollar following its assessment of the appropriate functional currency. In addition, the Company enters into reinsurance and insurance contracts for which it is obligated to pay losses in currencies other than U.S. Dollars. The majority of our operating foreign currency assets and liabilities are denominated in Euros, British Sterling, Canadian Dollars, Japanese Yen, New Zealand Dollars and Australian Dollars. The Company may, from time to time, experience losses from fluctuations in the values of these and other non-U.S. currencies, which could have a material adverse effect on its results of operations. The Company will attempt to manage its foreign currency risk by seeking to match its liabilities under insurance and reinsurance contracts that are payable in foreign currencies with investments that are denominated in such currencies. The Company purchases assets which are matched in currency to its case reserves at or shortly after the time such reserves are established. The investment portfolio will at times have non-U.S. Dollar exposure which may or not be hedged back to U.S. Dollars. As part of its asset-liability matching strategy, the Company may also consider the use of hedges when it becomes aware of probable significant losses that will be paid in non-U.S. Dollar currencies. For liabilities incurred in currencies other than those listed above, U.S. Dollars are converted to the currency of the loss at the time of claims payment. As a result, the Company may, from time to time, experience losses resulting from fluctuations in the value of foreign currencies.

Assets and liabilities of foreign operations whose functional currency is not the U.S. Dollar are translated at exchange rates in effect at the balance sheet date. Revenues and expenses of such foreign operations are translated at average exchange rates during the period. The effect of the translation adjustments for foreign operations is included in accumulated other comprehensive loss.

Other monetary assets and liabilities denominated in foreign currencies are revalued at the exchange rates in effect at the balance sheet date with the resulting foreign exchange gains and losses included in earnings. Revenues and expenses denominated in foreign currencies are translated at the prevailing exchange rate on the transaction date.

For the year ended December 31, 2016, 16.9% (2015 - 15.7%) of the Company's gross premiums were written in currencies other than the U.S. Dollar. The portions of our cash and cash equivalents, investments, net premium receivable and insurance and reinsurance balances receivable, and reserves for loss and loss expenses denominated in non-U.S. currencies at December 31, 2016 were approximately 24.3%, 3.8%, 11.8%, 6.0% and 16.4%, respectively (2015 - 23.5%, 4.7%, 26.5%, and 16.0%, respectively). As of December 31, 2016 and 2015, the Company's principal foreign currency exposures are denominated in British Sterling and Euros. The Company measures and manages its exposure in these currencies, among others, by monitoring its estimated gross and net asset positions. In order to estimate such exposures, the Company considers currency specific investments, cash and cash equivalents, premiums receivable, reserve for losses and loss expenses, and unearned premiums. The total estimated gross asset and net liability balances denominated in Euros were $233.8 million and $23.9 million, respectively (2015 - $254.6 million and $33.5 million, respectively). The total estimated gross and net asset balances denominated in British Sterling were $261.9 million and $8.1 million, respectively (2015 - $335.1 million and $95.5 million, respectively). Assuming all other variables are held constant and disregarding any tax effects, a 10% change in the U.S. dollar relative to these currencies could result in a $1.6 million and $12.9 million increase or decrease in the net assets held by the Company at December 31, 2016 and 2015, respectively.

Investment Credit Risk. The Company has exposure to credit risk primarily as a holder of fixed maturity investments, short-term investments, equity securities and other investments. The Company’s risk management strategy and investment policy is to invest in debt instruments of high credit quality issuers and to limit the amount of credit exposure with respect to particular ratings categories and any one issuer. The Company attempts to limit its credit exposure by investing the fixed maturity portfolio primarily in investments rated BBB-/Baa3 or higher. In addition, the Company has limited its exposure to any single corporate issuer to approximately 1% of its fixed maturity portfolio.

The following table summarizes the fair value composition of the Company's fixed maturity investments and short-term investments by investment ratings assigned by S&P, Moody's or other rating agencies and by contractual maturity at December 31, 2016 and 2015. In some cases, where bonds are unrated, the rating of the issuer has been applied. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

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December 31, 2016	Due within one year		Due after one year through five years		Due after five years through ten years		Due after ten years		Mortgage- backed securities (1)		Collateralized loan and debt obligations		Asset- backed securities (1)		Total
Ratings	(U.S. dollars in thousands)
U.S. government and agencies securities	$	17,282	$	707,027	$	272,064	$	5,509	$	—	$	—	$	—	$	1,001,882
AAA / Aaa	319,928		145,890		24,585		8,233		1,915,233		192,543		395,754		3,002,166
AA / Aa	168,450		310,088		98,584		7,904		38,862		40,574		56,216		720,678
A / A	82,679		667,321		203,065		16,301		29,745		20,492		35,825		1,055,428
BBB	18,167		201,676		97,754		14,507		42,257		69,474		5,409		449,244
Below BBB	8,835		127,645		180,386		5,995		45,335		42,096		9,372		419,664
Not rated	2,121		27,526		19,950		—		8,702		6,077		8,087		72,463
Total	$	617,462	$	2,187,173	$	896,388	$	58,449	$	2,080,134	$	371,256	$	510,663	$	6,721,525

The effective durations of the Company's mortgage-backed and asset-backed securities portfolios were 4.26 and 0.65, respectively, as of December 31, 2016. These securities are subject to prepayment risk and as such, actual maturity may differ significantly from contract maturity.

December 31, 2015	Due within one year		Due after one year through five years		Due after five years through ten years		Due after ten years		Mortgage- backed securities (1)		Collateralized loan and debt obligations		Asset- backed securities (1)		Total
Ratings	(U.S. dollars in thousands)
U.S. government and agencies securities	$	72,824	$	410,529	$	327,070	$	8,045	$	—	$	—	$	—	$	818,468
AAA / Aaa	72,501		128,799		35,249		135		440,748		194,320		333,011		1,204,763
AA / Aa	363,702		247,936		30,605		6,310		1,460,324		47,782		81,048		2,237,707
A / A	71,233		692,496		115,706		14,870		112,886		22,186		65,213		1,094,590
BBB	37,058		438,252		114,044		2,072		46,858		59,577		5,956		703,817
Below BBB	4,893		61,219		53,491		3,014		49,867		80,231		15,315		268,030
Not rated	37		16,271		767		205		13,576		1,032		6,712		38,600
Total	$	622,248	$	1,995,502	$	676,932	$	34,651	$	2,124,259	$	405,128	$	507,255	$	6,365,975

(1) The effective durations of the Company's mortgage-backed and asset-backed securities portfolios were 3.57 and 1.70, respectively, as of December 31, 2015. These securities are subject to prepayment risk and as such, actual maturity may differ significantly from contract maturity.

Credit Risk of Reinsurance Counterparties. In addition, the Company has exposure to credit risk as it relates to losses recoverable on paid and unpaid losses where the Company has purchased reinsurance and retrocessional coverages. When reinsurance or retrocessional reinsurance is purchased, the Company requires its reinsurers to have strong financial strength ratings. The Company evaluates the financial condition of its reinsurers and monitors its concentration of credit risk on an ongoing basis. The balance of losses recoverable on paid and unpaid losses at December 31, 2016 was $1,486.9 million (2015 - $1,196.0 million). At December 31, 2016 and 2015, the Company held collateral of $493.3 million and $321.5 million, respectively, related to its ceded reinsurance agreements. At December 31, 2016, the Company had an allowance of nil (2015 - nil) for estimated uncollectible losses recoverable. The balance of losses recoverable at December 31, 2016 and 2015 was distributed as follows based on the ratings of the reinsurers:

Rating	December 31, 2016		December 31, 2015
	(U.S. dollars in thousands)
U.S. Government sponsored program	$	141,443	$	234,596
A+ and above	889,814		458,255
A	397,691		476,184
A-	5,805		7,060
Not rated	52,165		19,875
Total	$	1,486,918	$	1,195,970

Equity Price Risk. The Company invests a portion of its investment portfolio in marketable equity securities (fair market value of $501.1 million at December 31, 2016 (2015 - $528.8 million). These equity investments are exposed to equity price risk, defined as the potential that the Company incurs an economic loss due to a decline of common stock prices. Beta analysis is used to measure the sensitivity of our equity portfolio to changes in the value of the S&P 500 Index (an index representative of the broad equity market). Our current equity portfolio has a beta of 0.48 (2015 - 0.62) in comparison to the S&P 500 Index.

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In addition to beta analysis, a sensitivity analysis can be used to assess equity price risk under varying conditions. The base sensitivity analysis below uses market scenarios of the S&P 500 Index declining both 10 percent and 20 percent to determine the impact of such a decline on the value of the Company's equity securities. These scenarios would result in approximate decreases in the fair value of the Company's equity securities of $24.1 million and $48.2 million, respectively (2015 - $32.8 million and $65.5 million, respectively). As we designate all equities as available for sale, these fair value declines would impact the Company’s Consolidated Balance Sheet.

	20% decrease			% change		10% decrease			% change		December 31, 2016		10% increase		% change		20% increase		% change
	(U.S. dollars in thousands)
Equities	$	(48,180	)	(9.61	)%	$	(24,090	)	(4.81	)%	$	501,141	$	24,090	4.81	%	$	48,180	9.61	%
Total invested assets (1)	$	(48,180	)	(0.55	)%	$	(24,090	)	(0.27	)%	$	8,833,798	$	24,090	0.27	%	$	48,180	0.55	%
Shareholders' equity	$	(48,180	)	(0.99	)%	$	(24,090	)	(0.49	)%	$	4,882,439	$	24,090	0.49	%	$	48,180	0.99	%

(1) Includes total investments and cash and cash equivalents, net of investments pending settlement.

	20% decrease			% change		10% decrease			% change		December 31, 2015		10% increase		% change		20% increase		% change
	(U.S. dollars in thousands)
Equities	$	(65,503	)	(12.39	)%	$	(32,751	)	(6.19	)%	$	528,814	$	32,751	6.19	%	$	65,503	12.39	%
Total invested assets (1)	$	(65,503	)	(0.73	)%	$	(32,751	)	(0.37	)%	$	8,913,587	$	32,751	0.37	%	$	65,503	0.73	%
Shareholders' equity	$	(65,503	)	(1.35	)%	$	(32,751	)	(0.67	)%	$	4,856,262	$	32,751	0.67	%	$	65,503	1.35	%

(1) Includes total investments and cash and cash equivalents, net of investments pending settlement.

The changes described above do not take into account any potential mitigating impact from the Company's fixed income or other investments portfolios or the impact of taxes.

Derivative Counterparty Credit Risk. In addition to the Company's exposure to credit risk as a holder of fixed maturity investments, short-term investments, equity securities, other investments, and the Company's exposure to credit risk as relates to reinsurance and retrocessional recoverables, the Company also has credit risk exposure as a party to derivative financial instruments. In order to mitigate the risks associated with derivatives, the Company diversifies its counterparty credit risk, ensures that the counterparties to its derivative contracts are credit worthy and monitors on a regular basis its exposure by counterparty in order to mitigate the counterparty credit risks associated with its derivative contracts. In addition, counterparty risk is mitigated by the periodic receipt of payment of margin. At December 31, 2016, the Company's absolute notional value of derivative contracts was $682.1 million (2015 - $564.0 million), while the net asset position of those derivative contracts was $82.6 million (2015 - $22.8 million).

Derivative Interest Rate Risk. The Company uses interest rate futures, swaps and swaptions within our portfolio of fixed maturity investments to manage our exposure to interest rate risk, which can include increasing or decreasing our exposure to this risk. We account for these derivatives at fair value and record them in our consolidated balance sheet as other assets or other liabilities depending on the rights or obligations.

The aggregate hypothetical loss generated from an immediate upward parallel shift in the treasury yield curve of 100 basis points would cause an increase in market value of our net position in swaptions, credit default swaps and interest rate swaps of approximately $0.7 million at December 31, 2016 (2015 - $0.4 million). Credit spreads are assumed to remain constant in these hypothetical examples.

Effects of Inflation. The effects of inflation could cause the cost of claims to rise in the future. The potential exists, after a catastrophe loss, for the development of inflationary pressures in a local economy. The Company's estimates for losses and loss expenses include assumptions about future payments for settlement of claims and claims handling expenses, however to the extent inflation causes these costs to increase above the reserves established, the Company will be required to increase the reserve for losses and loss expenses. In addition, inflation could lead to higher interest rates causing the current unrealized gain position on the Company's fixed maturity portfolio to decrease. The current short duration of the Company's fixed maturity portfolio has the potential to help reduce the negative effects of higher interest rates on the Company's fixed maturity portfolio. The Company may also choose to hold its fixed maturity portfolio to maturity which would result in the unrealized gains largely amortizing through net investment income.

Energy and Weather-Related Risk. We regularly transact in certain derivative-based risk management products primarily to address weather and energy risks and engage in hedging and trading activities related to these risks. The trading markets for these derivatives are generally linked to energy and agriculture commodities, weather and other natural phenomena. Currently, a significant percentage of our derivative-based risk management products are transacted on a dual-trigger basis combining weather or other natural phenomenon, with prices for commodities or securities related to energy or agriculture. The fair value of these contracts is obtained through the use of quoted market prices, or in the absence of such quoted prices, industry or

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internal valuation models. Generally, our current portfolio of such derivative contracts is of comparably short duration and such contracts are predominantly seasonal in nature. Over time, we expect that our participation in these markets, and the impact of these operations on our financial results, is likely to increase on both an absolute and relative basis. It is possible the duration of derivative contracts in this portfolio will lengthen in the future.

We use, among other things, VaR analysis to monitor the risks associated with our energy and weather derivatives trading portfolio. VaR is a tool that measures the potential loss that could occur if our trading positions were maintained over a defined period of time, calculated at a given statistical confidence level. Due to the seasonal nature of our energy and weather derivatives trading activities, the VaR is based on a rolling season (six month) holding period assuming no dynamic trading during the holding period. A 99.6% confidence level is used for the VaR analysis. A 99.6% confidence level implies that within a seasonal period, the potential loss in our portfolio is not expected to exceed the VaR estimate in 99.6% of the possible modeled outcomes. In the remaining estimated 0.4% of the possible outcomes, the anticipated potential loss is expected to be higher than the VaR figure, and on average substantially higher.

The VaR model, based on a Monte Carlo simulation methodology, seeks to take into account correlations between different positions and potential for movements to offset one another within the portfolio. For most of the risk factors, the volatility is derived from exchange-traded options markets. For those risk factors for which exchange-traded options might not exist, the volatility is based on historical analysis matched to broker quotes from the over-the-counter market, where available. The joint distribution of outcomes is based on our estimate of the historical seasonal dependence among the underlying risk factors, scaled to the current market levels. We then estimate the expected outcomes by applying a Monte Carlo simulation to these risk factors. The joint distribution of the simulated risk factors is then filtered through the portfolio positions, and then the distribution of the outcomes are realized. The 99.6 percentile of this distribution is then calculated as the portfolio VaR. The major limitation of this methodology is that the market data used to forecast parameters of the model may not be an appropriate proxy of those parameters. The VaR methodology uses a number of assumptions, such as (i) risks are measured under average market conditions, assuming appropriate distributions of market risk factors; (ii) future movements in market risk factors follow estimated historical movements; and (iii) the assessed exposures do not change during the holding period. There is no guarantee that these assumptions will prove correct. We expect that, for any given period, our actual results will differ from our assumptions, including with respect to previously estimated potential losses and that such losses could be substantially higher than the estimated VaR. At December 31, 2016, the estimated VaR for our portfolio of energy and weather-related derivatives, as described above, calculated at an estimated 99.6% confidence level, was $44.2 million. The average, low and high amounts calculated by our VaR analysis during the year ended December 31, 2016 were $32.5 million, $12.6 million and $59.0 million, respectively. Refer to Note 9, "Derivatives" in the Notes to the Consolidated Financial Statements of the Company for additional information related to derivative-based risk management products.

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Item 8. Financial Statements and Supplementary Data

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

BOARD OF DIRECTORS AND SHAREHOLDERS

ENDURANCE SPECIALTY HOLDINGS LTD.

We have audited Endurance Specialty Holdings Ltd.'s internal control over financial reporting as of December 31, 2016, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 Framework) (the "COSO criteria"). Endurance Specialty Holdings Ltd.'s management is responsible for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management's Annual Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the company's internal control over financial reporting based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

In our opinion, Endurance Specialty Holdings Ltd. maintained, in all material respects, effective internal control over financial reporting as of December 31, 2016, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets of Endurance Specialty Holdings Ltd. as of December 31, 2016 and 2015, and the related consolidated statements of income and comprehensive income, changes in shareholders' equity, and cash flows for each of the three years in the period ended December 31, 2016 of Endurance Specialty Holdings Ltd. and our report dated March 1, 2017 expressed an unqualified opinion thereon.

/s/ Ernst & Young Ltd.

Hamilton, Bermuda

March 1, 2017

112

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

Report of Independent Registered Public Accounting Firm	114
Consolidated Balance Sheets at December 31, 2016 and 2015	115
Consolidated Statements of Income and Comprehensive Income for the years ended December  31, 2016, 2015 and 2014	116
Consolidated Statements of Changes in Shareholders' Equity for the years ended December  31, 2016, 2015 and 2014	117
Consolidated Statements of Cash Flows for the years ended December 31, 2016, 2015 and 2014	118
Notes to the Consolidated Financial Statements for the years ended December 31, 2016, 2015 and 2014	119

113

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

BOARD OF DIRECTORS AND SHAREHOLDERS

ENDURANCE SPECIALTY HOLDINGS LTD.

We have audited the accompanying consolidated balance sheets of Endurance Specialty Holdings Ltd. as of December 31, 2016 and 2015, and the related consolidated statements of income and comprehensive income, changes in shareholders' equity and cash flows for each of the three years in the period ended December 31, 2016. Our audits also included the financial statement schedules listed in the Index at Item 15. These financial statements and schedules are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements and schedules based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of Endurance Specialty Holdings Ltd. at December 31, 2016 and 2015, and the consolidated results of its operations and its cash flows for each of the three years in the period ended December 31, 2016, in conformity with U.S. generally accepted accounting principles. Also, in our opinion, the related financial statement schedules, when considered in relation to the basic financial statements taken as a whole, present fairly in all material respects the information set forth therein.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), Endurance Specialty Holdings Ltd.'s internal control over financial reporting as of December 31, 2016, based on criteria established in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 Framework) and our report dated March 1, 2017 expressed an unqualified opinion thereon.

/s/ Ernst & Young Ltd.

Hamilton, Bermuda

March 1, 2017

114

ENDURANCE SPECIALTY HOLDINGS LTD.

CONSOLIDATED BALANCE SHEETS

DECEMBER 31, 2016 AND 2015

(In thousands of United States dollars except share amounts)

	December 31, 2016			December 31, 2015
ASSETS
Investments
Fixed maturity investments, trading at fair value (amortized cost: $2,727,271 and $1,611,079 at December 31, 2016 and 2015, respectively)	$	2,740,055		$	1,587,160
Fixed maturity investments, available for sale at fair value (amortized cost: $3,538,227 and $4,361,997 at December 31, 2016 and 2015, respectively)	3,572,766			4,359,019
Short-term investments, trading at fair value (amortized cost: $330,305 and $394,096 at December 31, 2016 and 2015, respectively)	330,199			394,111
Short-term investments, available for sale at fair value (amortized cost: $78,506 and $25,657 at December 31, 2016 and 2015, respectively)	78,505			25,685
Equity securities, trading at fair value (cost: $16,094 and $15,290 at December 31, 2016 and 2015, respectively)	16,056			15,229
Equity securities, available for sale at fair value (cost: $461,684 and $542,429 at December 31, 2016 and 2015, respectively)	485,085			513,585
Other investments	588,308			872,617
Total investments	7,810,974			7,767,406
Cash and cash equivalents	1,149,541			1,177,750
Premiums receivable, net	1,657,752			1,376,328
Insurance and reinsurance balances receivable	110,183			102,403
Deferred acquisition costs	276,639			255,501
Prepaid reinsurance premiums	711,695			498,574
Reinsurance recoverable on unpaid losses	1,213,129			907,944
Reinsurance recoverable on paid losses	273,789			288,026
Accrued investment income	35,853			30,213
Goodwill and intangible assets	468,374			553,960
Deferred tax asset	71,802			64,164
Net receivable on sales of investments	54,620			31,873
Other assets	288,510			187,383
Total assets	$	14,122,861		$	13,241,525
LIABILITIES
Reserve for losses and loss expenses	$	4,905,138		$	4,510,415
Reserve for unearned premiums	1,994,676			1,789,148
Deposit liabilities	14,013			13,674
Reinsurance balances payable	784,162			661,213
Debt	705,292			717,650
Net payable on purchases of investments	181,337			63,442
Deferred tax liability	13,074			17,315
Other liabilities	383,036			344,596
Total liabilities	8,980,728			8,117,453
Commitments and contingent liabilities
SHAREHOLDERS' EQUITY
Preferred shares, total liquidation preference $230,000 (2015 - $460,000)	9			9,209
Common shares, ordinary - 67,627,901 issued and outstanding (2015 - 66,797,991)	67,628			66,798
Additional paid-in capital	1,961,917			2,145,836
Accumulated other comprehensive loss	(58,749		)	(46,634		)
Retained earnings	2,911,634			2,681,053
Total shareholders' equity available to Endurance Holdings	4,882,439			4,856,262
Non-controlling interests	259,694			267,810
Total shareholders' equity	5,142,133			5,124,072
Total liabilities and shareholders' equity	$	14,122,861		$	13,241,525

See accompanying notes to the consolidated financial statements.

115

ENDURANCE SPECIALTY HOLDINGS LTD.

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2016, 2015, AND 2014

(In thousands of United States dollars, except share and per share amounts)

	2016			2015			2014
Revenues
Gross premiums written	$	4,202,170		$	3,320,861		$	2,894,076
Ceded premiums written	(1,832,235		)	(1,370,391		)	(959,870		)
Net premiums written	2,369,935			1,950,470			1,934,206
Change in unearned premiums	(6,275		)	27,983			(70,228		)
Net premiums earned	2,363,660			1,978,453			1,863,978
Net investment income	176,590			113,826			131,543
Net realized and unrealized (losses) gains	(12,419		)	12,660			14,283
Net impairment losses recognized in earnings	(10,769		)	(3,715		)	(625		)
Other underwriting loss	(909		)	(3,694		)	(5,786		)
Total revenues	2,516,153			2,097,530			2,003,393
Expenses
Net losses and loss expenses	1,321,052			917,108			970,162
Acquisition expenses	460,483			347,885			319,513
General and administrative expenses	248,146			259,791			247,387
Corporate expenses	51,706			114,429			66,200
Amortization of intangibles	84,624			30,620			6,484
Net foreign exchange (gains) losses	(74,684		)	26,964			3,839
Interest expense	43,860			41,260			40,968
Total expenses	2,135,187			1,738,057			1,654,553
Income before income taxes	380,966			359,473			348,840
Income tax benefit (expense)	181			(4,362		)	(390		)
Net income	381,147			355,111			348,450
Net income attributable to non-controlling interests	(24,130		)	(11,016		)	—
Net income available to Endurance Holdings	357,017			344,095			348,450
Preferred dividends	(23,799		)	(32,750		)	(32,750		)
Net income available to Endurance Holdings' common and participating common shareholders	$	333,218		$	311,345		$	315,700
Comprehensive income
Net income	$	381,147		$	355,111		$	348,450
Other comprehensive (loss) income
Net unrealized holding gains (losses) on investments arising during the period (net of other-than-temporary impairment losses recognized in other comprehensive (loss) income, reclassification adjustment and applicable deferred income tax (expense) benefit in 2016 - ($8,804); 2015 - $5,890; 2014 - ($4,121))	74,121			(98,738		)	40,150
Foreign currency translation adjustments	(86,324		)	(24,690		)	(26,264		)
Reclassification adjustment for net losses on derivatives designated as cash flow hedge included in net income	88			88			89
Other comprehensive (loss) income	(12,115		)	(123,340		)	13,975
Comprehensive income	369,032			231,771			362,425
Comprehensive income attributable to non-controlling interests	(24,130		)	(11,016		)	—
Comprehensive income attributable to Endurance Holdings common and participating common shareholders	$	344,902		$	220,755		$	362,425
Per share data
Basic earnings per common share	$	4.94		$	5.74		$	7.07
Diluted earnings per common share	$	4.93		$	5.73		$	7.06

See accompanying notes to the consolidated financial statements.

116

ENDURANCE SPECIALTY HOLDINGS LTD.

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

FOR THE YEARS ENDED DECEMBER 31, 2016, 2015 AND 2014

(In thousands of United States dollars)

	2016			2015			2014
Preferred shares
Balance, beginning of year	$	9,209		$	17,200		$	17,200
Issuance of Series C, non-cumulative preferred shares	—			9			—
Redemption of Series A and B, non-cumulative preferred shares	(9,200		)	(8,000		)	—
Balance, end of year	9			9,209			17,200
Common shares
Balance, beginning of year	66,798			44,765			44,369
Issuance of common shares, net of forfeitures	830			22,033			396
Balance, end of year	67,628			66,798			44,765
Additional paid-in capital
Balance, beginning of year	2,145,836			598,226			569,116
Issuance of common shares, net of forfeitures	11,135			1,476,615			2,143
Issuance of Series C, non-cumulative preferred shares	—			222,954			—
Public offering and registration costs	—			(936		)	—
Redemption of Series A and B, non-cumulative preferred shares	(219,767		)	(192,000		)	—
Settlement of equity awards	(11,732		)	(14,535		)	(4,039		)
Stock-based compensation expense	36,445			55,512			31,006
Balance, end of year	1,961,917			2,145,836			598,226
Accumulated other comprehensive (loss) income
Cumulative foreign currency translation adjustments:
Balance, beginning of year	(32,318		)	(7,628		)	18,636
Foreign currency translation adjustments	(86,324		)	(24,690		)	(26,264		)
Balance, end of year	(118,642		)	(32,318		)	(7,628		)
Unrealized holding gains (losses) on investments, net of deferred taxes:
Balance, beginning of year	(12,638		)	86,100			45,950
Net unrealized holding gains (losses) arising during the year, net of other-than-temporary impairment losses and reclassification adjustment	74,121			(98,738		)	40,150
Balance, end of year	61,483			(12,638		)	86,100
Accumulated derivative loss on cash flow hedging instruments:
Balance, beginning of year	(1,678		)	(1,766		)	(1,855		)
Net change from current period hedging transactions, net of reclassification adjustment	88			88			89
Balance, end of year	(1,590		)	(1,678		)	(1,766		)
Total accumulated other comprehensive (loss) income	(58,749		)	(46,634		)	76,706
Retained earnings
Balance, beginning of year	2,681,053			2,448,285			2,193,133
Net income	381,147			355,111			348,450
Net income attributable to non-controlling interests	(24,130		)	(11,016		)	—
Dividends on preferred shares	(23,799		)	(32,750		)	(32,750		)
Dividends on common shares	(102,637		)	(78,577		)	(60,548		)
Balance, end of year	2,911,634			2,681,053			2,448,285
Total shareholders' equity available to Endurance Holdings	4,882,439			4,856,262			3,185,182
Non-controlling interests	259,694			267,810			—
Total shareholders' equity	$	5,142,133		$	5,124,072		$	3,185,182

See accompanying notes to the consolidated financial statements.

117

ENDURANCE SPECIALTY HOLDINGS LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2016, 2015 AND 2014

(In thousands of United States dollars)

	2016			2015			2014
Cash flows provided by operating activities:
Net income	$	381,147		$	355,111		$	348,450
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of net premium on investments	33,285			45,317			45,757
Amortization of other intangibles and depreciation	105,026			51,457			27,234
Net realized and unrealized losses (gains)	12,419			(12,660		)	(14,283		)
Net impairment losses recognized in earnings	10,769			3,715			625
Deferred taxes	(19,709		)	(2,727		)	(1,414		)
Stock-based compensation expense	36,445			55,512			31,006
Equity in earnings of other investments	(12,442		)	13,553			(19,609		)
Premiums receivable, net	(281,424		)	(153,735		)	(214,252		)
Insurance and reinsurance balances receivable	(7,780		)	33,729			5,508
Deferred acquisition costs	(21,138		)	(48,133		)	(21,341		)
Prepaid reinsurance premiums	(213,121		)	(74,944		)	(167,731		)
Reinsurance recoverable on unpaid losses	(305,185		)	(197,097		)	(77,040		)
Reinsurance recoverable on paid losses	14,237			(61,748		)	(54,071		)
Accrued investment income	(5,640		)	5,840			(3,079		)
Other assets	(6,855		)	(25,683		)	(17,132		)
Reserve for losses and loss expenses	394,723			(57,375		)	(155,400		)
Reserve for unearned premiums	205,528			36,036			235,668
Deposit liabilities	339			(1,462		)	(4,322		)
Reinsurance balances payable	122,949			204,557			194,650
Other liabilities	(28,081		)	76,194			127,037
Net cash flows provided by operating activities	415,492			245,457			266,261
Cash flows (used in) provided by investing activities
Proceeds from sales and maturities of trading investments	3,115,204			626,914			—
Proceeds from sales and maturities of available for sale investments	3,477,688			5,725,794			4,145,940
Proceeds from the redemption of other investments	355,325			188,060			154,655
Purchases of trading investments	(4,091,588		)	(1,080,478		)	—
Purchases of available for sale investments	(2,752,599		)	(5,421,949		)	(4,449,225		)
Purchases of other investments	(58,222		)	(221,457		)	(59,023		)
Net (purchases) settlements of other assets	(47,450		)	21,273			11,665
Purchases of fixed assets	(17,568		)	(26,988		)	(40,932		)
Net cash (paid for) received from subsidiary acquisition	(12		)	675,624			39
Net cash flows (used in) provided by investing activities	(19,222		)	486,793			(236,881		)
Cash flows used in financing activities
Issuance of common shares	10,076			24,823			2,305
Issuance of Series C, non-cumulative preferred shares	—			222,963			—
Redemption of Series A and B, non-cumulative preferred shares	(230,000		)	(200,000		)	—
Settlement of equity awards	(11,732		)	(14,535		)	(4,039		)
Net distributions to non-controlling interests	(32,246		)	(1,739		)	—
Offering and registration costs paid	(319		)	(617		)	—
Proceeds from issuance of repurchase agreements	120,990			—			—
Repayment of repurchase agreements	(120,990		)	—			—
Bridge facility costs paid	—			—			(4,750		)
Proceeds from issuance of debt	537			5,008			706
Repayments of debt	(13,683		)	(199,454		)	(686		)
Dividends on preferred shares	(23,799		)	(32,750		)	(32,750		)
Dividends on common shares	(102,417		)	(78,473		)	(60,524		)
Net cash flows used in financing activities	(403,583		)	(274,774		)	(99,738		)
Effect of exchange rate changes on cash and cash equivalents	(20,896		)	(25,198		)	(30,021		)
Net (decrease) increase in cash and cash equivalents	(28,209		)	432,278			(100,379		)
Cash and cash equivalents, beginning of year	1,177,750			745,472			845,851
Cash and cash equivalents, end of year	$	1,149,541		$	1,177,750		$	745,472

See accompanying notes to the consolidated financial statements.

118

ENDURANCE SPECIALTY HOLDINGS LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in tables expressed in thousands of United States dollars, except

for ratios, share and per share amounts)

1.     Organization

Endurance Specialty Holdings Ltd. ("Endurance Holdings", together with its subsidiaries, the "Company") was organized as a Bermuda holding company on June 27, 2002. On July 31, 2015, the Company acquired all of the outstanding common shares of Montpelier Re Holding Ltd. ("Montpelier"), a Bermuda based provider of global property and casualty reinsurance and insurance products. As part of the acquisition, the Company acquired Montpelier's Lloyd's of London ("Lloyd's") operations, including Syndicate 5151 ("Syndicate 5151") and its managing agent, Endurance at Lloyd's Limited ("Endurance at Lloyd's"). Also as part of the acquisition, the Company acquired Montpelier's collateralized reinsurance and third party asset management operations, operating under the name "Blue Capital", which includes Blue Capital Management Ltd. ("BCML"), a wholly-owned subsidiary that provides investment and insurance management services to the Blue Capital vehicles primarily through business written in Blue Water Re Ltd. ("Blue Water Re") and Blue Water Re II Ltd. ("Blue Water Re II"), wholly-owned special purpose insurers. See Note 4, Investments, for additional information with respect to the Blue Capital entities. The Company's Consolidated Statements of Income and Comprehensive Income for the year ended December 31, 2015 include the results of operations of Montpelier from August 1, 2015. For additional information on the acquisition of Montpelier, see Note 3, Acquisition of Montpelier.

On October 5, 2016, the Company entered into an agreement and plan of merger (the "Merger Agreement") for the acquisition of 100% of the outstanding ordinary shares of the Company by SOMPO for $93.00 per share in cash (the "Merger"). The Merger has been approved by each company's Board of Directors and the Company's ordinary and preferred shareholders at a special general meeting. The Merger is expected to close as soon as practicable following the satisfaction of customary closing conditions including, but not limited to, regulatory approvals. There can be no assurance that the Merger will occur.

Under the terms of the Merger Agreement, the aggregate consideration for the Merger will be approximately $6,304.0 million in cash. The purchase will be financed by SOMPO from existing sources of liquidity and supplementary facilities. If the Merger is terminated under certain circumstances, the Company is obligated to pay SOMPO a cash termination fee of $204.9 million together with SOMPO's expenses related to the Merger up to $15.8 million. The Company is contractually obligated to pay investment banking fees upon the closing of the Merger.

Endurance Holdings writes specialty lines of insurance and reinsurance on a global basis through its wholly-owned operating subsidiaries:

Operating Subsidiaries	Domicile
Endurance Specialty Insurance Ltd. ("Endurance Bermuda")	Bermuda
Blue Capital Management Ltd., manager of Blue Water Re Ltd. and Blue Water Re II Ltd.	Bermuda
Endurance Worldwide Insurance Limited ("Endurance U.K.")	England
Endurance at Lloyd's, managing agent for Lloyd's Syndicate 5151	England
Endurance Assurance Corporation ("Endurance Assurance", formerly Endurance Reinsurance Corporation of America)	Delaware
Endurance American Insurance Company ("Endurance American")	Delaware
Endurance American Specialty Insurance Company ("Endurance American Specialty")	Delaware
Endurance Risk Solutions Assurance Co. ("Endurance Risk Solutions")	Delaware
American Agri-Business Insurance Company ("American Agri-Business"), managed by ARMtech Insurance Services, Inc. (together with American Agri-Business, "ARMtech")	Texas

In addition, as part of the Blue Capital operations Endurance Holdings and Endurance Bermuda together own 33.3% of Blue Capital Reinsurance Holdings Ltd. ("BCRH") and Endurance Bermuda owns 25.2% of Blue Capital Global Reinsurance Fund Limited ("BCGR").

BCRH is a Bermuda-based exempted limited liability holding company managed by BCML that provides fully-collateralized property catastrophe reinsurance and invests in various insurance-linked securities through its wholly-owned Bermuda-based subsidiaries, Blue Capital Re. Ltd. ("Blue Capital Re") and Blue Capital Re ILS Ltd. ("Blue Capital Re ILS"). BCRH's shares are listed on the New York Stock Exchange and the Bermuda Stock Exchange.

BCGR is a closed-ended mutual fund incorporated in Bermuda and managed by BCML that serves as the feeder fund for the Blue Capital Global Reinsurance SA-1 cell (the "BCGR Cell"). BCGR's shares are listed on the Specialist Fund Market of the London Stock Exchange and on the Bermuda Stock Exchange.

119

ENDURANCE SPECIALTY HOLDINGS LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in tables expressed in thousands of United States dollars, except

for ratios, share and per share amounts)

2.     Significant accounting policies

The consolidated financial statements have been prepared on the basis of accounting principles generally accepted in the United States ("U.S. GAAP") and include the accounts of Endurance Holdings and its wholly-owned subsidiaries, and BCRH and the BCGR Cell. All intercompany transactions and balances have been eliminated in consolidation. The following are significant accounting and reporting policies adopted by the Company:

(a) Premiums and related expenses

The Company's insurance premiums are earned pro rata over the term of the applicable risk period specified in the insurance policy. The Company's insurance policies cover losses occurring or claims made during the term of the policy. Generally, the Company receives a fixed premium which is identified in the policy and is recorded on the inception date of the contract or when premiums are determinable and earned evenly over the policy term. This premium will only adjust if the underlying insured values adjust. Accordingly, the Company monitors the underlying insured values and records additional or return premiums in the period in which amounts are reasonably determinable.

The Company's reinsurance premiums are earned in proportion to the amount of reinsurance protection provided over the applicable risk period established in the reinsurance contract. Reinsurance contracts written on a losses occurring basis cover losses which occur during the term of the reinsurance contract, typically 12 months. Accordingly, the Company earns the premium on a losses occurring reinsurance contract evenly over the reinsurance contract term. Reinsurance contracts written on a policies attaching basis cover losses from the underlying insurance policies incepting during the terms of the reinsurance contracts. Losses under a policies attaching reinsurance contract may occur after the end date of the reinsurance contract, so long as they are losses from policies that began during the reinsurance contract period. The Company typically earns the premiums for policies attaching reinsurance contracts over a 24-month period in proportion to the amount of reinsurance protection provided to reflect the extension of the risk period past the term of the contract and the varying levels of reinsurance protection provided during the reinsurance contract period.

In addition to the applicable risk period, the Company's estimate of its reinsurance premiums written is based on the type of reinsurance contracts underwritten. For excess of loss reinsurance contracts, the deposit premium, as defined in the contract, is generally considered to be the best estimate of the reinsurance contract's written premium at inception. The Company earns reinstatement premiums upon the occurrence of a loss under the reinsurance contract. Reinstatement premiums are calculated in accordance with the contract terms based upon the ultimate loss estimate associated with each contract. For proportional reinsurance contracts, the Company estimates premium, commissions and related expenses based on broker and ceding company estimates and also utilizes judgment in establishing proportional reinsurance contract estimates.

Premiums on the Company's excess of loss and proportional reinsurance contracts are estimated at the time the business is underwritten. Accordingly, this is the amount the Company records as written premium in the period the reinsurance contract is underwritten. As actual premiums are reported by the ceding companies, management evaluates the appropriateness of the original premium estimates and any adjustments to these estimates are recorded in the period in which they become known.

Premiums receivable are recorded at amounts due less any allowance for estimated uncollectible premiums receivable. At December 31, 2016, the Company had an allowance for estimated uncollectible premiums receivable of $6.2 million (2015 - $7.4 million).

Acquisition expenses are costs that vary with and are directly related to the successful production of new and renewal business, and consist principally of commissions and brokerage expenses. Acquisition and general and administrative expenses are shown net of commissions, other fees and expense allowances associated with and earned on ceded business. These costs are deferred and amortized over the periods in which the related premiums are earned. Deferred acquisition costs are limited to their estimated realizable value based on the related unearned premiums. Anticipated net investment income is considered in determining the recoverability of deferred acquisition costs.

120

ENDURANCE SPECIALTY HOLDINGS LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in tables expressed in thousands of United States dollars, except

for ratios, share and per share amounts)

2.     Significant accounting policies, cont'd.

(b) Reserve for losses and loss expenses

The Company’s reserve for losses and loss expenses includes case reserves and reserves for losses incurred but not reported (referred to as "IBNR reserves"). Case reserves are established for losses that have been reported, but not yet paid. IBNR reserves represent a provision for claims that have been incurred but not yet reported to the Company, as well as future loss development on losses already reported, in excess of the case reserves. Case reserves and IBNR reserves are established by management based on reports from reinsurance intermediaries, ceding companies and insureds, and consultations with independent legal counsel. In addition, reserves for IBNR losses and loss expenses are established by management based on reported losses and loss expenses, and actuarially determined estimates of ultimate losses and loss expenses.

The Company uses a variety of actuarial methods to estimate the ultimate losses and loss expenses incurred by the Company. One actuarial method used by the Company to estimate reserves for losses and loss expenses is the expected loss ratio approach, which is based on expected results independent of current loss reporting activity. This approach is typically used for immature loss periods (i.e., the current accident year). Another actuarial method used by the Company to estimate reserves for losses and loss expenses is known as the Bornhuetter-Ferguson method. The Bornhuetter-Ferguson method uses an initial loss estimate (expected loss technique) for each accident year by business line and type of contract. Under this method, IBNR is set equal to the initial loss estimate multiplied by the expected percent of loss yet to be reported at each valuation date. In a given quarter, if reported losses are less than expected, then the difference would result in a decrease in estimated ultimate losses. If losses are greater than expected, then the difference would result in an increase in estimated ultimate losses. A third actuarial method used by the Company to estimate reserves for losses and loss expenses is known as the loss development method. The loss development method extrapolates the current value of reported losses to ultimate expected losses by using selected reporting patterns of losses over time. The selected reporting patterns are based on historical information (organized into loss development triangles) and are adjusted to reflect the changing characteristics of the book of business written by the Company. Management uses these multiple actuarial methods, supplemented with professional judgment, to establish the best estimate of reserves for losses and loss expenses.

The Company's loss and loss expense reserves are reviewed regularly, and adjustments, if any, are reflected in earnings in the period in which they become known. The establishment of new loss and loss expense reserves or the adjustment of previously recorded loss and loss expense reserves could result in significant positive or negative changes to the Company's financial condition for any particular period. While management believes the Company's estimate of loss and loss expense reserves is reasonable, the ultimate loss experience may not be reliably predicted, and it is possible losses and loss expenses may be materially different than the total reserve for losses and loss expenses recorded by the Company.

(c) Reinsurance

Reinsurance recoverable on paid and unpaid losses represent estimates of losses and loss expenses that will be recovered from reinsurers. Amounts recoverable from reinsurers are estimated in a manner consistent with the provisions of the reinsurance agreements and consistent with the establishment of the Company's reserve for losses and loss expenses. Ceding commissions earned on ceded business are classified as an offset to acquisition and general and administrative expenses.

(d) Investments

The Company currently classifies its fixed maturity investments, short-term investments and equity securities as trading or available for sale. Trading securities are carried at estimated fair value, with related net realized and unrealized gains or losses included in earnings. The Company acquired a portfolio of investments classified as trading from Montpelier. 

Available for sale securities are carried at estimated fair value, with related net unrealized gains or losses excluded from earnings and included in shareholders' equity as a component of accumulated other comprehensive loss. Investment transactions are recorded on a trade date basis. The Company determines the fair value of its trading and available for sale investments in accordance with current accounting guidance, which defines fair value and establishes a fair value hierarchy based on inputs to the various valuation techniques used for each fair value measurement. The use of valuation techniques for any given investment requires a significant amount of judgment and consideration of factors specific to the underlying investment. Fair value measurements determined by the Company seek to maximize observable inputs and minimize the use of unobservable inputs.

121

ENDURANCE SPECIALTY HOLDINGS LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in tables expressed in thousands of United States dollars, except

for ratios, share and per share amounts)

2.     Significant accounting policies, cont'd.

(d) Investments, cont'd.

Current accounting guidance establishes three levels as follows:

Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2: Quoted prices for similar assets in markets that are active, quoted prices for identical or similar assets in markets that are not active or inputs that are observable either directly or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities other than quoted prices in Level 1; quoted prices in markets that are not active; or other inputs that are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3: Unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets or liabilities. Unobservable inputs reflect the Company's own views about the assumptions that market participants would use in pricing the asset or liability. Level 3 assets and liabilities include financial instruments whose values are determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant judgment or estimation.

The Company determines the estimated fair value of each individual security utilizing the highest level inputs available.

If the Company has the intent to sell a fixed maturity or short-term security classified as available for sale in an unrealized loss position or it is more likely than not that the Company will be required to sell the available for sale security, the Company deems the security to be other-than-temporarily impaired and writes down the carrying value of the security to fair value, thereby establishing a new cost basis. The amount of the write-down is recognized in earnings as an other-than-temporary impairment ("OTTI") loss.

For fixed maturity and short-term investments classified as available for sale in an unrealized loss position for which a decision to sell has not been made and it is not more likely than not that the Company will be required to sell the security, the Company performs additional reviews to determine whether the investment will recover its amortized cost. If the amortized cost of the Company's fixed maturity and short-term investments classified as available for sale is, based upon the judgment of management, unlikely to be recovered, the Company writes down the investment by the amount representing the credit related portion of the decline in value, thereby establishing a new cost basis. The amount of the write-down is recognized in earnings as an OTTI loss. The new cost basis is not changed for subsequent recoveries in fair value.

To the extent the Company determines that the amortized cost of the Company's fixed maturity and short-term investments classified as available for sale is likely to be recovered and the decline in value is related to non-credit factors (such as interest rates, market conditions, etc.) and not due to credit related factors, that remaining non-credit portion of the unrealized loss is recorded as a part of accumulated other comprehensive loss in the shareholders' equity section of the Company's Consolidated Balance Sheets.

For equity securities classified as available for sale, the Company considers its ability and intent to hold the equity security in an unrealized loss position for a reasonable period of time to allow for a full recovery. When the Company determines that the decline in value of an equity security is other-than-temporary, the Company reduces the cost of the equity security to its fair value and recognizes the loss in the Consolidated Statements of Income and Comprehensive Income. The new cost basis is not changed for subsequent recoveries in fair value.

Other investments within the Company's investment portfolio are comprised of hedge funds, private investment funds and other investment funds that generally invest in senior secured bank debt, high yield credit securities, distressed debt, macro strategies, multi-strategy, equity long/short strategies, distressed real estate, and energy sector private equity ("alternative funds"). Other investments are accounted for using the equity method of accounting whereby the initial investment is recorded at cost. The carrying values of these investments are increased or decreased to reflect the Company's share of income or loss, which is included in net investment income, and are decreased for dividends. Due to the timing of the delivery of the final valuations reported by the managers of certain of our alternative funds, our investments in those funds are estimated based on the most recently available information including period end valuation statements, period end estimates, or, in some cases, prior month or quarter valuation statements.

122

ENDURANCE SPECIALTY HOLDINGS LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in tables expressed in thousands of United States dollars, except

for ratios, share and per share amounts)

2.     Significant accounting policies, cont'd.

(e) Cash equivalents and short-term investments

Cash equivalents include highly liquid short-term deposits and securities with maturities of ninety days or less at the time of purchase. Cash equivalents are valued at amortized cost, which approximates fair value due to the short-term, liquid nature of these securities. Deposits and securities with maturities greater than ninety days and less than one year are classified as short-term investments.

(f)    Intangible assets

Identifiable intangible assets are amortized in accordance with their useful lives. Goodwill and intangible assets with indefinite useful lives are not amortized but are tested for impairment annually at the beginning of the fourth quarter, or more often if impairment indicators arise. In making an assessment of the value of its goodwill and intangible assets, the Company uses both market based and non-market based valuations.

Assumptions underlying these valuations include forecasts of discounted future cash flows and future profits and comparable transactions observed in the market, in addition to an analysis of the Company’s stock price relative to both its book value and its net income.

(g) Offering and registration costs

Offering and registration costs incurred in connection with equity offerings, including investment banking fees and legal fees, are deducted from the proceeds of the offerings.

(h) Foreign exchange

Assets and liabilities of foreign operations whose functional currency is not the United States dollar are translated at exchange rates in effect at the balance sheet date. Revenues and expenses of such foreign operations are translated at weighted average exchange rates during the year. The effect of the translation adjustments for foreign operations is included in accumulated other comprehensive loss, net of applicable deferred income taxes. Other monetary assets and liabilities denominated in foreign currencies are revalued at the exchange rates in effect at the balance sheet date with the resulting net foreign exchange gains and losses included in earnings. Revenues and expenses denominated in foreign currencies are translated at the prevailing exchange rate on the transaction date.

(i) Derivatives

Current accounting guidance requires the recognition of all derivative financial instruments including embedded derivative instruments, as either assets or liabilities in the Consolidated Balance Sheets at fair value.

The Company may use various derivative instruments such as foreign exchange forward, future and option contracts; industry loss warranty swaps; interest rate futures, swaps, swaptions, and options; credit default swaps; LIBOR swaps; commodity futures and options; weather swaps and options; loss development covers; and to-be-announced mortgage-backed securities. These derivative instruments are used to manage exposure to interest rate and currency risk, to enhance the efficiency of the Company's investment portfolio, to economically hedge certain risks, and as part of its weather risk management business. Except for a cash flow hedge entered into in 2004 as disclosed in Note 9, Derivatives, these derivative instruments do not qualify, and are not designated, as hedges. Derivatives are recorded at fair value with changes in fair value and any gains or losses are recognized in net realized and unrealized (losses) gains, net foreign exchange (gains) losses, or other underwriting loss in the Consolidated Statements of Income and Comprehensive Income.

Where the Company has entered into master netting agreements with counterparties, or the Company has the legal and contractual right to offset positions, the derivative positions may be netted by the counterparty.

123

ENDURANCE SPECIALTY HOLDINGS LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in tables expressed in thousands of United States dollars, except

for ratios, share and per share amounts)

2.     Significant accounting policies, cont'd.

(j) Income taxes

The Company accounts for income taxes for its subsidiaries operating in taxable jurisdictions. Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. A valuation allowance is provided when it is more likely than not that some portion of the deferred tax assets will not be realized. The accounting guidance allows for the recognition of tax benefits of uncertain tax positions only where the position is more likely than not to be sustained assuming examination by tax authorities. A liability is established for any tax benefit claimed in a tax return in excess of this threshold. Income tax related interest and penalties are included as income tax expense.

(k) Stock compensation and other stock plans

The Company has a share-based employee and non-employee director equity incentive plan ("2007 Equity Incentive Plan") and other share plans, which are described more fully in Note 16, Stock-based employee compensation and other stock plans. The fair value of the compensation cost incurred under these plans is measured at the grant date and is expensed over the period for which the employee is required to provide services in exchange for the award. Forfeiture benefits are estimated at the time of grant and incorporated in the determination of share-based compensation costs. Awards under the 2007 Equity Incentive Plan generally vest over four years for employees and one year for non-employee directors.

(l) Earnings per share

The two-class method utilized by the Company is an earnings allocation formula that determines earnings per share for the holders of Endurance Holdings' ordinary shares (also referred to as "common shares") and participating common shares, which includes unvested restricted shares and restricted share units that receive cash dividends, according to dividends declared (or accumulated) and participation rights in undistributed earnings. Net income available to common and participating common shareholders is reduced by the amount of dividends declared in the current period and by the contractual amount of dividends that must be paid for the current period related to the Company's common and participating common shares. Any remaining undistributed earnings are allocated to the common and participating common shareholders to the extent that each security may share in earnings as if all of the earnings for the period had been distributed. In periods of loss, no losses are allocated to participating common shareholders. Instead, all such losses are allocated solely to the common shareholders.

Basic earnings per common share are calculated by dividing net income available to common shareholders by the weighted average number of common shares outstanding. The weighted average number of common shares excludes any dilutive effect of outstanding options and convertible securities such as unvested restricted shares and restricted share units.

Diluted earnings per common share are based on the weighted average number of common shares and assumes the exercise of all dilutive stock options and the vesting or conversion of all convertible securities such as unvested restricted shares using the two-class method described above.

(m) Use of estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported and disclosed amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

124

ENDURANCE SPECIALTY HOLDINGS LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in tables expressed in thousands of United States dollars, except

for ratios, share and per share amounts)

2.     Significant accounting policies, cont'd.

(n) Variable interest entity

Entities that do not have sufficient equity at risk to allow the entity to finance its activities without additional financial support or in which the equity investors, as a group, do not have the characteristic of a controlling financial interest are referred to as variable interest entities ("VIE"). A VIE is consolidated by the variable interest holder that is determined to have the controlling financial interest (primary beneficiary) as a result of having both the power to direct the activities of a VIE that most significantly impact the VIE's economic performance and the obligation to absorb losses or right to receive benefits from the VIE that could potentially be significant to the VIE. The Company determines whether it is the primary beneficiary of an entity subject to consolidation based on a qualitative assessment of the VIE's capital structure, contractual terms, nature of the VIE's operations and purpose and the Company's relative exposure to the related risks of the VIE on the date it becomes initially involved in the VIE. The Company reassesses its VIE determination with respect to an entity on an ongoing basis. See also Note 4, Investments.

(o) Non-controlling interests

The Company accounts for non-controlling interests in the shareholders' equity section of the Company's Consolidated Balance Sheets in accordance with current accounting guidance regarding consolidation. Net income attributable to non-controlling interest is presented separately in the Company's Consolidated Statements of Income and Comprehensive Income.

(p) Reclassifications

Certain comparative information has been reclassified to conform to current year presentation.

(q)     Recent accounting pronouncements

In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, "Revenue from Contracts with Customers" ("ASU 2014-09"). ASU 2014-09 provides comprehensive guidance on the recognition of revenue from customers arising from the transfer of goods and services. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for these goods or services. ASU 2014-09 also provides guidance on accounting for certain contract costs and will also require new disclosures. ASU 2014-09 was to be effective for public business entities in annual and interim periods beginning after December 15, 2016, however, in July 2015, the FASB decided to defer by one year the effective dates of ASU 2014-09, and as a result, ASU 2014-09 will be effective for public business entities in annual and interim period beginning after December 15, 2017. Early adoption is permitted. Based on initial review, the Company has determined that this standard specifically excludes revenue from the following sources: insurance contracts, Topic 944, Financial Services-Insurance and investment income; Topic 320, Investments-Debt and Equity Securities; Topic 323, Investments-Equity Methods and Joint Ventures; Topic 325, Investment-Others; and Topic 815, Derivatives and Hedging. As substantially all of the Company's revenues are subject to the topics above that are excluded from the standard, the Company has determined that this standard will not have a material impact on the Company's Consolidated Financial Statements.

In February 2015, the FASB issued ASU 2015-02, "Amendments to the Consolidation Analysis" ("ASU 2015-02"). Under ASU 2015-02, all legal entities are required to evaluate whether they should consolidate certain legal entities. ASU 2015-02 set forth amendments: (1) modifying the evaluation of whether limited partnerships and similar legal entities are VIEs or voting interest entities; (2) eliminating the presumption that a general partner should consolidate a limited partnership; (3) affecting the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships; and (4) providing a scope exception from consolidation guidance for certain reporting entities. ASU 2015-02 was effective for public business entities for annual and interim periods beginning after December 15, 2015. Early adoption was permitted. ASU 2015-02 may be applied retrospectively or by using a modified retrospective approach by recording a cumulative-effect adjustment to equity as of the beginning of the year of adoption. The Company adopted this standard on January 1, 2016 and it did not have a material impact on the Company's Consolidated Financial Statements.

125

ENDURANCE SPECIALTY HOLDINGS LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in tables expressed in thousands of United States dollars, except

for ratios, share and per share amounts)

2. Significant accounting policies, cont'd.

(q)     Recent accounting pronouncements, cont'd.

In May 2015, the FASB issued ASU 2015-09, "Disclosures about Short-Duration Contracts" ("ASU 2015-09"). The objective of ASU 2015-09 is to make targeted improvements to disclosure requirements for insurance companies that issue short-duration contracts. The guidance requires additional disclosures of claims development tables, frequency of reported claims, and history of claims duration. This information is required to be disaggregated so that useful information is not obscured by either the inclusion of a large amount of insignificant detail, or the aggregation of items that have significantly different characteristics. ASU 2015-09 was effective for public business entities in annual periods beginning after December 15, 2015, and interim periods within annual periods beginning after December 15, 2016. Early adoption was permitted. ASU 2015-09 should be applied retrospectively. The Company adopted this standard in the fourth quarter of 2016 and has included the appropriate annual disclosures within Note 6, Reserve for losses and loss expenses. The adoption of this standard did not have a material impact on the Company's Consolidated Financial Statements.

In January 2016, the FASB issued ASU No. 2016-01, "Recognition and Measurement of Financial Assets and Financial Liabilities" ("ASU 2016-01"). ASU 2016-01 requires equity investments (except those accounted for under the equity method of accounting or those that result in the consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income, simplifies the impairment assessment of equity investments without readily determinable values by requiring a qualitative assessment to identify impairment, eliminates the requirement to disclose the methods and significant assumptions used to estimate the fair value for financial instruments measured at amortized cost, requires the use of the exit price notion when measuring the fair value of financial instruments for disclosure purposes, requires separate presentation in other comprehensive income of the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the organization has elected to measure the liabilities in accordance with the fair value option, requires the separate presentation of financial assets and financial liabilities by measurement category and for form of years, beginning after December 15, 2015. Early adoption was permitted. The Company adopted ASU 2015-02 effective January 1, 2016 and it did not have material impact on the Company's consolidated statements of operations and financial position.

3.     Acquisition of Montpelier

On March 31, 2015, the Company announced the signing of a definitive agreement and plan of merger (the "Merger Agreement") with Montpelier and Millhill Holdings Ltd., a direct, wholly-owned subsidiary of the Company ("Merger Sub"), under which Endurance Holdings, through Merger Sub, acquired all of the outstanding common shares of Montpelier. The acquisition of Montpelier was completed on July 31, 2015 (the "Closing Date").

Prior to the closing of the acquisition, Montpelier was a publicly traded company listed on the New York Stock Exchange and headquartered in Bermuda. As of the close of trading on July 31, 2015, the common shares of Montpelier ceased trading.

The aggregate consideration for the transaction consisted of the issuance of 20.7 million of the Company’s ordinary shares valued at $1.4 billion and $451.1 million of cash. The cash consideration was funded through a pre-closing dividend from Montpelier of $9.89 per common share, or $451.1 million (the "Special Dividend"). In connection with the acquisition of Montpelier, the Company incurred transaction and integration related expenses of $76.6 million in the year ended December 31, 2015, which included $19.5 million related to transaction costs, including due diligence, legal, accounting and investment banking fees and expenses, $4.4 million of costs related to the integration of Montpelier and the Company, and $52.7 million of compensation-related costs associated with terminating employees of Montpelier. These expenses have all been reported as a component of corporate expenses.

126

ENDURANCE SPECIALTY HOLDINGS LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in tables expressed in thousands of United States dollars, except

for ratios, share and per share amounts)

3.     Acquisition of Montpelier, cont'd.

Purchase price

The Company's total purchase price for Montpelier at July 31, 2015 was calculated as follows:

Consideration paid by Endurance Holdings
Number of Montpelier common shares outstanding immediately prior to the closing of the acquisition	43,827,753
Exchange ratio	0.472
Total Company ordinary shares	20,686,699
Company ordinary share closing price on July 31, 2015	$	69.49
Total value of Company ordinary shares	$	1,437,519
Fair value of restricted share units attributable to service period prior to Closing Date(1)	$	33,327
Total consideration	$	1,470,846
Special Dividend paid by Montpelier
Number of Montpelier common shares and restricted share units eligible for special dividend	45,611,810
Special dividend paid per Montpelier common share and restricted share unit	$	9.89
Total special dividend consideration paid to Montpelier common shareholders and Montpelier equity award holders	$	451,101
Total consideration received by Montpelier common shareholders and Montpelier equity award holders	$	1,921,947
Less: Special Dividend paid by Montpelier	(451,101		)
Net purchase price	$	1,470,846

(1) Outstanding Montpelier restricted share units were assumed by the Company and adjusted as of the Closing Date to represent the right to receive 0.472 Company ordinary shares for each outstanding Montpelier restricted share unit rounded down to the next whole number of Company ordinary shares. The fair value of the Montpelier restricted share units was determined based on the closing price of the Company's ordinary shares on the Closing Date. The resulting fair value of the restricted share units was apportioned as purchase consideration based on service provided to Montpelier as of the Closing Date with the remaining fair value of these restricted share units to be recognized prospectively over the restricted share units' remaining vesting period.

Fair value of net assets acquired and liabilities assumed

The purchase price was allocated to the acquired assets and liabilities of Montpelier based on estimated fair values on July 31, 2015, the Closing Date, as detailed below. The Company recognized goodwill of $87.6 million primarily attributable to Montpelier's assembled workforce and synergies expected to result upon integration of Montpelier into the Company's operations. The Company estimates that none of the goodwill that was recorded will be deductible for income tax purposes. The allocation of the purchase price was based on information that was available to management at the time the 2015 consolidated financial statements were prepared. The allocation was subject to change as additional information became available within the measurement period, which cannot exceed 12 months from the acquisition date. The fair value recorded for these items may be subject to adjustments, which may impact the individual amounts recorded for assets acquired and liabilities assumed, as well as the residual goodwill.

127

ENDURANCE SPECIALTY HOLDINGS LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in tables expressed in thousands of United States dollars, except

for ratios, share and per share amounts)

3.     Acquisition of Montpelier, cont'd.

The Company identified finite lived intangible assets of $293.2 million, which will be amortized over a weighted average period of 8 years, identifiable indefinite lived intangible assets of $57.6 million, and certain other adjustments to the fair values of the assets acquired, liabilities assumed and shareholders' equity of Montpelier at July 31, 2015 as summarized in the table below:

Montpelier shareholders' equity attributable to controlling interest prior to Special Dividend	$	1,560,255
Cash and cash equivalents (Special Dividend on Montpelier common shares and Montpelier equity awards)	(451,101		)
Adjusted shareholders' equity of Montpelier as of July 31, 2015	1,109,154
Adjustments for fair value, by applicable balance sheet caption:
Assets:
Fixed maturity investments, trading at fair value	(11,100		)
Deferred acquisition costs	(91,713		)
Reinsurance recoverable on unpaid losses	(675		)
Other assets	(12,459		)
Liabilities:
Reserve for losses and loss expenses	10,822
Debt	21,123
Deferred tax liability	(18,346		)
Equity:
Non-controlling interest	25,615
Total adjustments for fair value by applicable balance sheet caption	(76,733		)
Adjustments for fair value of the identifiable intangible assets:
Identifiable indefinite lived intangible assets (insurance licenses, Lloyd's syndicate capacity and asset management agreements)	57,600
Identifiable finite lived intangible assets (non-contractual relationships, Lloyd's syndicate distribution channel, renewal rights, value of business acquired ("VOBA"), trade names, non-compete agreements and asset management agreements)	293,200
Total adjustments for fair value by applicable balance sheet caption and identifiable intangible assets	274,067
Estimated fair value of net assets acquired and identifiable intangible assets	1,383,221
Total consideration paid by Endurance Holdings	1,470,846
Estimated total consideration over the fair value of net assets acquired assigned to goodwill	$	87,625

An explanation of the significant fair value adjustments is as follows:

• Fixed maturity investments, trading at fair value - To reflect certain investments at fair value;

• Deferred acquisition costs - To eliminate Montpelier's deferred acquisition costs;

• Other assets - To eliminate deferred debt issuance costs related to Montpelier's existing senior notes and to write off Montpelier's fixed assets and goodwill;

• Reserve for losses and loss expenses - To reflect a decrease in net losses and loss expenses due to the addition of a market based risk margin, which represents the cost of capital required by a market participant to assume the net losses and loss expenses of Montpelier, offset by a deduction that represents the discount due to the present value calculation of the unpaid losses and loss expenses based on the expected payout of the net unpaid losses and loss expenses;

• Debt - To reflect Montpelier's existing senior notes and trust preferred securities at fair value using indicative market pricing obtained from third-party service providers;

• Deferred tax liability - To reflect the deferred tax liability on identifiable intangible assets;

• Non-controlling interest - To reflect Montpelier's non-controlling interest at fair value; and

128

ENDURANCE SPECIALTY HOLDINGS LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in tables expressed in thousands of United States dollars, except

for ratios, share and per share amounts)

3.     Acquisition of Montpelier, cont'd.

• Identifiable indefinite lived and finite lived intangible assets - To establish the fair value of identifiable intangible assets related to the acquisition of Montpelier described in detail below.

Identifiable intangible assets at July 31, 2015 consisted of the following, and are included in goodwill and other intangible assets on the Company's consolidated balance sheets:

	Amount		Economic Useful Life
Key non-contractual relationships	$	71,800	10
Other non-contractual relationships	22,400		3
Trade names	1,800		Various
Insurance licenses	1,900		Indefinite
Non-compete agreements	5,700		Various
Lloyd's syndicate capacity	48,300		Indefinite
Lloyd's syndicate distribution channel	18,400		10
Renewal rights	82,100		15
VOBA	88,400		2
Asset management agreements	10,000		Various
Identifiable intangible assets at July 31, 2015	$	350,800

An explanation of the identifiable intangible assets is as follows:

• Key non-contractual relationships - these relationships included Montpelier's top brokers and consideration was given to the expectation of the renewal of these relationships and the associated expenses;

• Other non-contractual relationships - these relationships consisted of Montpelier's brokers with the exception of those top brokers previously listed above as key non-contractual relationships and consideration was given to the expectation of the renewal of these relationships and the associated expenses;

• Trade names - represents the value of the Montpelier and Blue Capital brands acquired;

• Insurance licenses - the value of insurance licenses acquired providing the ability to write reinsurance in 15 states of the U.S.;

• Non-compete agreements - represent non-compete agreements with key employees of Montpelier;

• Lloyd's syndicate capacity - the value of Lloyd's syndicate capacity, which represents Montpelier's authorized premium income limit to write insurance business in the Lloyd's marketplace;

• Lloyd's syndicate distribution channel - the value of sales of insurance policies that result directly from relationships between Lloyd's and the brokers in the Lloyd's marketplace;

• Renewal rights - the value of policy renewal rights taking into consideration written premium on assumed retention ratios and the insurance cash flows and the associated equity cash flows from these renewal policies over the expected life of the renewals;

• VOBA - the expected future losses and expenses associated with the policies that were in-force as of the Closing Date of the transaction were estimated and compared to the future premium remaining expected to be earned. The difference between the risk-adjusted future loss and expenses, discounted to present value and the unearned premium reserve, was estimated to be the VOBA; and

• Asset management contracts - represents the value of the Blue Capital asset management contracts acquired.

129

ENDURANCE SPECIALTY HOLDINGS LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in tables expressed in thousands of United States dollars, except

for ratios, share and per share amounts)

3.     Acquisition of Montpelier, cont'd.

Financial results

The following table summarizes the results of Montpelier since July 31, 2015 that have been included in the Company's Consolidated Statement of Income and Comprehensive Income for the year ended December 31, 2015:

	For the period from July 31, 2015 to December 31, 2015
Total revenues	$	225,899
Net income attributable to the Company's common shareholders(1)	54,768

(1) Includes $52.7 million of compensation-related costs associated with terminating employees of Montpelier.

Supplemental pro forma information

The following table presents unaudited pro forma consolidated financial information for the years ended December 31, 2015 and 2014 and assumes the acquisition of Montpelier occurred on January 1, 2014. The unaudited pro forma consolidated financial information is provided for informational purposes only and is not necessarily, and should not be assumed to be, an indication of the results that would have been achieved had the transaction been completed as of January 1, 2014 or that may be achieved in the future. The unaudited pro forma consolidated financial information does not give consideration to the impact of possible revenue enhancements, expense efficiencies, synergies or asset dispositions that may result from the acquisition of Montpelier. In addition, unaudited pro forma consolidated financial information does not include the effects of costs associated with any restructuring or integration activities resulting from the acquisition of Montpelier, as they are nonrecurring.

	Year Ended December 31,
	2015		2014
Total revenues	$	2,452,410	$	2,668,604
Net income available to Endurance Holdings' common shareholders	443,817		388,371

Among other adjustments, and in addition to the fair value adjustments and recognition of goodwill and identifiable intangible assets noted above, other material nonrecurring pro forma adjustments directly attributable to the acquisition of Montpelier principally included certain adjustments to recognize transaction related costs, align accounting policies, amortize fair value adjustments, amortize identifiable indefinite lived intangible assets and recognize related tax impacts.

4.     Investments

Composition of Net Investment Income and of Invested Assets

The components of net investment income for the years ended December 31, 2016, 2015 and 2014 are as follows:

	2016			2015			2014
Fixed income investments	$	165,210		$	132,786		$	118,084
Equity securities	12,639			8,209			5,689
Other investments	12,442			(13,553		)	19,609
Cash and cash equivalents	2,824			2,870			2,445
	$	193,115		$	130,312		$	145,827
Investment expenses	(16,525		)	(16,486		)	(14,284		)
Net investment income	$	176,590		$	113,826		$	131,543

130

ENDURANCE SPECIALTY HOLDINGS LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in tables expressed in thousands of United States dollars, except

for ratios, share and per share amounts)

4.     Investments, cont'd.

Contractual maturities of the Company's fixed maturity and short-term investments are shown below as of December 31, 2016 and 2015. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	December 31, 2016				December 31, 2015
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due within one year	$	617,655	$	617,462	$	622,070	$	622,248
Due after one year through five years	2,170,111		2,187,173		2,005,456		1,995,502
Due after five years through ten years	887,775		896,388		683,147		676,932
Due after ten years	55,400		58,449		33,168		34,651
Residential mortgage-backed securities	1,448,917		1,461,286		1,301,083		1,311,373
Commercial mortgage-backed securities	615,730		618,848		817,570		812,886
Collateralized loan and debt obligations	369,126		371,256		419,795		405,128
Asset-backed securities	509,595		510,663		510,540		507,255
Total	$	6,674,309	$	6,721,525	$	6,392,829	$	6,365,975

The following table summarizes the fair value of the fixed maturity investments, short-term investments and equity securities classified as trading at December 31, 2016 and 2015.

	December 31, 2016		December 31, 2015
Fixed maturity investments
U.S. government and agencies securities	$	551,055	$	319,674
U.S. state and municipal securities	6,006		5,559
Foreign government securities	110,088		49,861
Government guaranteed corporate securities	2,959		38,201
Corporate securities	1,051,200		532,192
Residential mortgage-backed securities	483,444		258,574
Commercial mortgage-backed securities	164,237		127,124
Collateralized loan and debt obligations	98,924		103,219
Asset-backed securities	272,142		152,756
Total fixed maturity investments	2,740,055		1,587,160
Short-term investments	330,199		394,111
Total fixed income investments	$	3,070,254	$	1,981,271
Equity securities
Equity investments	$	16,056	$	14,676
Preferred equity investments	—		553
Total equity securities	$	16,056	$	15,229

131

ENDURANCE SPECIALTY HOLDINGS LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in tables expressed in thousands of United States dollars, except

for ratios, share and per share amounts)

4.     Investments, cont'd.

In addition to the Company's fixed maturity, short-term and equity investments, the Company invests in alternative funds. The Company's alternative funds are recorded on the Company's balance sheet as "other investments". At December 31, 2016 and 2015, the Company had invested, net of capital returned, a total of $470.3 million and $737.1 million, respectively, in other investments. At December 31, 2016 and 2015, the carrying value of other investments was $588.3 million and $872.6 million, respectively.

The following table summarizes the composition and redemption restrictions of other investments as of December 31, 2016 and 2015:

December 31, 2016	Market Value		Unfunded Commitments		Ineligible for Redemption in 2017
Alternative funds
Hedge funds	$	482,865	$	—	$	85,963
Private investment funds	76,451		92,214		76,451
Other investment funds	28,992		—		27,518
Total alternative funds	588,308		92,214		189,932
Total other investments	$	588,308	$	92,214	$	189,932

December 31, 2015	Market Value		Unfunded Commitments		Ineligible for Redemption in 2016
Alternative funds
Hedge funds	$	704,966	$	—	$	57,876
Private investment funds	80,690		102,070		80,690
Other investment funds	23,465		—		24,958
Total alternative funds	809,121		102,070		163,524
Specialty funds
High yield loan funds	63,496		—		—
Total specialty funds	63,496		—		—
Total other investments	$	872,617	$	102,070	$	163,524

Hedge funds – The redemption frequency of the hedge funds range from monthly to biennially with notice periods from 30 to 90 days. Over one year, it is estimated that the Company can liquidate approximately 82.2% of the hedge fund portfolio, with the remainder over the following two years.

Private investment funds – The Company generally has no right to redeem its interest in any private investment funds in advance of dissolution of the applicable partnership. Instead, the nature of these investments is that distributions are received by the Company in connection with the distribution of income or the liquidation of the underlying assets of the applicable limited partnership. It is estimated that the majority of the underlying assets of the limited partnerships would liquidate over 5 to 10 years from inception of the limited partnership. A secondary market, with unpredictable liquidity, exists for limited partner interests in private investment funds.

Other investment funds – Other investment funds includes funds on deposit with Lloyd's, which are restricted, and the Company's investment in BCGR, which represents the net carrying value of the Company's investment in BCGR that has not been deployed into the BCGR cell.

High yield loan funds – There are generally no restrictions on the Company's right to redeem its interest in high yield loan funds with the exception of certain redemption frequency and notice requirements. The redemption frequency of these funds ranges from monthly to quarterly with notice periods from 30 to 90 days. The Company had no investments in high yield loan funds as of December 31, 2016.

132

ENDURANCE SPECIALTY HOLDINGS LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in tables expressed in thousands of United States dollars, except

for ratios, share and per share amounts)

4.     Investments, cont'd.

Net Realized and Unrealized (Losses) Gains

Realized and unrealized gains and losses are recognized in earnings using the first in, first out method. The analysis of gross realized gains and losses, net unrealized gains and losses on trading securities, intangible asset impairment loss, and the change in the fair value of investment-related derivative financial instruments for the years ended December 31, 2016, 2015 and 2014 are as follows:

	2016			2015			2014
Gross realized gains on investment sales	$	39,033		$	65,881		$	35,921
Gross realized losses on investment sales	(61,752		)	(28,636		)	(16,515		)
Net unrealized gains (losses) on trading securities	12,480			(24,257		)	—
Intangible asset impairment loss(1)	—			—			(5,450		)
Change in fair value of derivative financial instruments(2)	(2,180		)	(328		)	327
Net realized and unrealized (losses) gains	$	(12,419	)	$	12,660		$	14,283

(1) For additional information on the Company's intangible assets, see Note 11, Goodwill and intangible assets.

(2) For additional information on the Company's derivative financial instruments, see Note 9, Derivatives.

Unrealized Gains and Losses

The Company classifies some of its investments in fixed maturity investments, short-term investments and equities as available for sale. The amortized cost, fair value and related gross unrealized gains and losses on the Company's securities classified as available for sale at December 31, 2016 and 2015 are as follows:

December 31, 2016	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Fixed maturity investments
U.S. government and agencies securities	$	449,638	$	3,981	$	(2,792	)	$	450,827
U.S. state and municipal securities	11,560		945		(154		)	12,351
Foreign government securities	68,539		2,236		(1,944		)	68,831
Government guaranteed corporate securities	912		46		—			958
Corporate securities	1,078,756		26,481		(8,744		)	1,096,493
Residential mortgage-backed securities	968,273		21,032		(11,463		)	977,842
Commercial mortgage-backed securities	452,011		8,790		(6,190		)	454,611
Collateralized loan and debt obligations	271,361		1,644		(673		)	272,332
Asset-backed securities	237,177		2,242		(898		)	238,521
Total fixed maturity investments	$	3,538,227	$	67,397	$	(32,858	)	$	3,572,766
Short-term investments	78,506		1		(2		)	78,505
Total fixed income investments	$	3,616,733	$	67,398	$	(32,860	)	$	3,651,271
Equity securities
Equity investments	$	461,509	$	27,948	$	(4,545	)	$	484,912
Preferred equity investments	175		—		(2		)	173
Total equity securities	$	461,684	$	27,948	$	(4,547	)	$	485,085

133

ENDURANCE SPECIALTY HOLDINGS LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in tables expressed in thousands of United States dollars, except

for ratios, share and per share amounts)

4.     Investments, cont'd.

December 31, 2015	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Fixed maturity investments
U.S. government and agencies securities	$	499,386	$	2,561	$	(3,153	)	$	498,794
U.S. state and municipal securities	16,908		120		(181		)	16,847
Foreign government securities	110,893		803		(581		)	111,115
Government guaranteed corporate securities	19,248		311		(7		)	19,552
Corporate securities	1,323,276		5,698		(11,232		)	1,317,742
Residential mortgage-backed securities	1,041,540		16,400		(5,141		)	1,052,799
Commercial mortgage-backed securities	689,078		4,737		(8,053		)	685,762
Collateralized loan and debt obligations	304,915		796		(3,802		)	301,909
Asset-backed securities	356,753		585		(2,839		)	354,499
Total fixed maturity investments	$	4,361,997	$	32,011	$	(34,989	)	$	4,359,019
Short-term investments	25,657		28		—			25,685
Total fixed income investments	$	4,387,654	$	32,039	$	(34,989	)	$	4,384,704
Equity securities
Equity investments	$	527,154	$	6,835	$	(37,474	)	$	496,515
Preferred equity investments	15,275		1,946		(151		)	17,070
Total equity securities	$	542,429	$	8,781	$	(37,625	)	$	513,585

134

ENDURANCE SPECIALTY HOLDINGS LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in tables expressed in thousands of United States dollars, except

for ratios, share and per share amounts)

4.     Investments, cont'd.

The following tables summarize, for all available for sale securities in an unrealized loss position at December 31, 2016 and 2015, the aggregate fair value and gross unrealized loss by length of time the security has continuously been in an unrealized loss position.

	Less than 12 months					12 months or greater					Total
December 31, 2016	Unrealized Losses(1)			Fair Value		Unrealized Losses(1)			Fair Value		Unrealized Losses(1)			Fair Value
Fixed maturity investments
U.S. government and agencies securities	$	(2,791	)	$	289,012	$	(1	)	$	248	$	(2,792	)	$	289,260
U.S. state and municipal securities	(152		)	5,288		(2		)	2,143		(154		)	7,431
Foreign government securities	(446		)	15,717		(1,498		)	5,973		(1,944		)	21,690
Corporate securities	(7,512		)	448,643		(1,232		)	11,897		(8,744		)	460,540
Residential mortgage-backed securities	(10,082		)	521,167		(1,381		)	31,835		(11,463		)	553,002
Commercial mortgage-backed securities	(3,453		)	174,144		(2,737		)	76,694		(6,190		)	250,838
Collateralized loan and debt obligations	(223		)	50,194		(450		)	81,043		(673		)	131,237
Asset-backed securities	(539		)	64,109		(359		)	39,770		(898		)	103,879
Total fixed maturity investments	$	(25,198	)	$	1,568,274	$	(7,660	)	$	249,603	$	(32,858	)	$	1,817,877
Short-term investments	(2		)	4,691		—			—		(2		)	4,691
Total fixed income investments	$	(25,200	)	$	1,572,965	$	(7,660	)	$	249,603	$	(32,860	)	$	1,822,568
Equity securities
Equity investments	$	(2,855	)	$	71,509	$	(1,690	)	$	17,408	$	(4,545	)	$	88,917
Preferred equity investments	(2		)	123		—			—		(2		)	123
Total equity securities	$	(2,857	)	$	71,632	$	(1,690	)	$	17,408	$	(4,547	)	$	89,040

(1) Gross unrealized losses include unrealized losses on non-OTTI and non-credit OTTI securities recognized in accumulated other comprehensive loss at December 31, 2016.

As of December 31, 2016, 1,090 available for sale securities were in an unrealized loss position aggregating $37.4 million. Of those, 218 securities with aggregated unrealized losses of $9.4 million at December 31, 2016 had been in a continuous unrealized loss position for twelve months or greater.

135

ENDURANCE SPECIALTY HOLDINGS LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in tables expressed in thousands of United States dollars, except

for ratios, share and per share amounts)

4.     Investments, cont'd.

	Less than 12 months					12 months or greater					Total
December 31, 2015	Unrealized Losses(1)			Fair Value		Unrealized Losses(1)			Fair Value		Unrealized Losses(1)			Fair Value
Fixed maturity investments
U.S. government and agencies securities	$	(2,175	)	$	347,024	$	(978	)	$	16,669	$	(3,153	)	$	363,693
U.S. state and municipal securities	(96		)	9,662		(85		)	695		(181		)	10,357
Foreign government securities	(404		)	31,881		(177		)	3,966		(581		)	35,847
Government guaranteed corporate securities	(7		)	1,692		—			—		(7		)	1,692
Corporate securities	(9,222		)	830,349		(2,010		)	51,024		(11,232		)	881,373
Residential mortgage-backed securities	(3,378		)	365,082		(1,763		)	79,355		(5,141		)	444,437
Commercial mortgage-backed securities	(6,708		)	436,387		(1,345		)	42,246		(8,053		)	478,633
Collateralized loan and debt obligations	(3,107		)	224,520		(695		)	48,167		(3,802		)	272,687
Asset-backed securities	(2,624		)	311,814		(215		)	12,880		(2,839		)	324,694
Total fixed income investments	$	(27,721	)	$	2,558,411	$	(7,268	)	$	255,002	$	(34,989	)	$	2,813,413
Equity securities
Equity investments	$	(32,021	)	$	329,280	$	(5,453	)	$	56,421	$	(37,474	)	$	385,701
Preferred equity investments	(151		)	7,361		—			—		(151		)	7,361
Total equity securities	$	(32,172	)	$	336,641	$	(5,453	)	$	56,421	$	(37,625	)	$	393,062

(1) Gross unrealized losses include unrealized losses on non-OTTI and non-credit OTTI securities recognized in accumulated other comprehensive loss at December 31, 2015.

As of December 31, 2015, 1310 available for sale securities were in an unrealized loss position aggregating $72.6 million. Of those, 158 securities with aggregated unrealized losses of $12.7 million at December 31, 2015 had been in a continuous unrealized loss position for twelve months or greater.

The decrease in gross unrealized losses on the Company's fixed income investments and equity securities at December 31, 2016 compared to December 31, 2015 was primarily due to tightening of credit spreads and strong equity markets during the year, partially offset by an increase in interest rates, rather than any actual credit losses on these securities. As of December 31, 2016, the Company did not have the intent to sell any of the remaining fixed income investments in an unrealized loss position and determined that it was unlikely that the Company would be required to sell those securities in an unrealized loss position.

During the year ended December 31, 2016, the Company impaired certain equity securities that were in an unrealized loss position for more than twelve consecutive months and therefore recognized in earnings total other-than-temporary impairments of $10.8 million (2015 - $3.7 million; 2014 - $0.6 million). As of December 31, 2016, the Company did not have the intent to sell any of the the remaining equity securities in an unrealized loss position.

Other Investments

The Company is involved in the normal course of business with VIEs primarily as a passive investor in residential and commercial mortgage-backed securities and through its interests in various other investments that are structured as limited partnerships considered to be third party VIEs. The Company determines whether it is the primary beneficiary of an entity subject to consolidation based on a qualitative assessment of the VIE's capital structure, contractual terms, nature of the VIE's operations and purpose, and the Company's relative exposure to the related risks of the VIE on the date it becomes initially involved in the VIE. The Company determined that it was not the primary beneficiary for any of these investments as of December 31, 2016 and 2015. The Company believes its exposure to loss with respect to these investments is generally limited to the investment carrying amounts reported in the Company's Consolidated Balance Sheets and any unfunded investment commitments.

136

ENDURANCE SPECIALTY HOLDINGS LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in tables expressed in thousands of United States dollars, except

for ratios, share and per share amounts)

4.     Investments, cont'd.

Collateralized Reinsurance Entities

As of December 31, 2016, Endurance Holdings and Endurance Bermuda together owned 33.3% of BCRH. BCRH is considered a VIE under U.S. GAAP and the Company has determined that it is BCRH's primary beneficiary. As a result, the Company fully consolidates the assets, liabilities and operations of BCRH and its subsidiaries within its Consolidated Financial Statements. The interests in BCRH and its subsidiaries that the Company fully consolidates that are attributable to third-party investors are reported within the Company's Consolidated Financial Statements as non-controlling interests. BCRH's shareholder rights do not include redemption features within the control of the third party shareholders. The Company reassesses its VIE determination with respect to BCRH on an ongoing basis.

As of December 31, 2016, Endurance Bermuda owned 25.2% of BCGR. BCGR is considered a "voting interest entity" under U.S. GAAP and, because the Company owns less than 50% of its outstanding ordinary shares, the Company does not consolidate BCGR's assets, liabilities or operations within its Consolidated Financial Statements. However, the BCGR Cell and Blue Water Re, the Company's wholly-owned Bermuda-based special purpose insurance vehicle, are considered VIEs under U.S. GAAP and the Company has determined that it is the primary beneficiary of these entities. Therefore, as funds held in BCGR are deployed into the BCGR Cell, and ultimately into Blue Water Re, they are included in the Company's consolidated financial statements. Conversely, as funds previously deployed by BCGR and the BCGR Cell into Blue Water Re are returned to BCGR, they are no longer included in the Company's consolidated financial statements. The interests in the BCGR Cell and Blue Water Re that the Company fully consolidate that are attributable to third-party investors are reported within the Company's consolidated financial statements as non-controlling interests. BCGR's shareholder rights do not include redemption features within the control of the third party shareholders. The Company reassesses its VIE determinations with respect to the BCGR Cell and Blue Water Re on an ongoing basis.

The following table summarizes the movements in the non-redeemable non-controlling interests balance for the year ended December 31, 2016 and from the acquisition date, July 31, 2015 to December 31, 2015:

	Year Ended December 31, 2016			Five Months Ended December 31, 2015
Non-controlling interests, beginning balance	$	267,810		$	258,529
Income attributable to third-party investments in the BCGR Cell	14,577			5,526
Income attributable to third-party investments in BCRH	9,553			5,490
Net income attributable to non-controlling interests	24,130			11,016
Net preferred share redemption attributable to third-party investments in the BCGR Cell (1)	(19,799		)	—
Net investments attributable to third-parties in BCRH	72			20
Net change in third-party investments in non-controlling interests	(19,727		)	20
Dividends declared by BCRH attributable to non-controlling interests	(12,519		)	(1,755		)
Non-controlling interests - ending balance	$	259,694		$	267,810

(1) The redemption from the BCGR Cell was required to fund expenses, repay debt and fund dividends by BCGR.

137

ENDURANCE SPECIALTY HOLDINGS LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in tables expressed in thousands of United States dollars, except

for ratios, share and per share amounts)

5.     Fair value measurement

The Company determines the fair value of its fixed maturity investments, short-term investments, equity securities, debt, and other assets and liabilities in accordance with current accounting guidance, which defines fair value and establishes a fair value hierarchy based on inputs to the various valuation techniques used for each fair value measurement. The Company determines the estimated fair value of each individual security utilizing the highest level inputs available. Valuation inputs by security type may include the following:

• Government and agencies fixed maturity securities – These securities are generally priced by pricing services or index providers. The pricing services or index providers may use current market trades for securities with similar quality, maturity and coupon. If no such trades are available, the pricing service typically uses analytical models which may incorporate option adjusted spreads, daily interest rate data and market/sector news. The Company generally classifies the fair values of government and agencies securities in Level 2. Current issue U.S. government securities are generally valued based on Level 1 inputs, which use the market approach valuation technique.

• Government guaranteed corporate fixed maturity securities – These securities are generally priced by pricing services or index providers. The pricing service or index providers may use current market trades for securities with similar quality, maturity and coupon. If no such trades are available, the pricing service typically uses analytical spread models which may incorporate inputs from the U.S. treasury curve or LIBOR. The Company generally classifies the fair values of its government guaranteed corporate securities in Level 2.

• Corporate fixed maturity securities – These securities are generally priced by pricing services or index providers. The pricing services or index providers typically use discounted cash flow models that incorporate benchmark curves for treasury, swap and high issuance credits. Credit spreads are developed from current market observations for like or similar securities. The Company generally classifies the fair values of its corporate securities in Level 2.

• Equity securities – These securities are generally priced by pricing services or index providers. Depending on the type of underlying equity security or equity fund, the securities are priced by pricing services or index providers based on quoted market prices in active markets or through a discounted cash flow model that incorporates benchmark curves for treasury, swap and credit for like or similar securities. The Company generally classifies the fair values of its equity securities in Level 1 or 2.

• Structured securities including agency and non-agency, residential and commercial mortgage, asset-backed securities and collateralized loan and debt obligations – These securities are generally priced by broker/dealers. Broker/dealers may use current market trades for securities with similar qualities. If no such trades are available, inputs such as bid and offer, prepayment speeds, the U.S. treasury curve, swap curve and cash settlement may be used in a discounted cash flow model to determine the fair value of a security. The Company generally classifies the fair values of its structured securities in Level 2.

• Other assets and liabilities – A portion of other assets and liabilities are composed of a variety of derivative instruments used to enhance the efficiency of the investment portfolio and economically hedge certain risks. These instruments are generally priced by pricing services, broker/dealers and/or recent trading activity. The market value approach valuation technique is used to estimate the fair value for these derivatives based on significant observable market inputs. Certain derivative instruments are priced by pricing services based on quoted market prices in active markets. These derivative instruments are generally classified in Level 1. Other derivative instruments are priced using industry valuation models and are considered Level 2, as the inputs to the valuation model are based on observable market inputs. Also included in this line item are proprietary, non-exchange traded derivative-based risk management products primarily used to address weather and energy risks. The trading market for these weather derivatives are generally linked to energy and agriculture commodities, weather and other natural phenomena. In instances where market prices are not available, the Company uses industry or internally developed valuation techniques such as spread option, Black Scholes, quanto and simulation modeling to determine fair value and classifies these in Level 3. These models may reference prices for similar instruments.

• Debt – Outstanding debt consists of the Company's 7% Senior Notes due July 15, 2034 and 4.7% Senior Notes due October 15, 2022 (the "Senior Notes") and the Trust Preferred Securities. The fair values of these securities were obtained from a third party pricing service and pricing was based on the spread above the risk-free yield curve. These spreads are generally obtained from the new issue market, secondary trading and broker-dealer quotes. As these spreads and the yields for the risk-free yield curve are observable market inputs, the fair values of the Senior Notes and the Trust Preferred Securities are classified in Level 2.

138

ENDURANCE SPECIALTY HOLDINGS LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in tables expressed in thousands of United States dollars, except

for ratios, share and per share amounts)

5.     Fair value measurement, cont'd.

The carrying values of cash and cash equivalents, accrued investment income, other investments, net receivable on sales of investments, net payable on purchases of investments, the amount outstanding under the BCRH Credit Agreement and other financial instruments not described above approximated their fair values at December 31, 2016 and 2015.

The following table sets forth the Company's fixed maturity investments, equity securities, short-term investments, other assets and liabilities and debt categorized by the level within the hierarchy in which the fair value measurements fall at December 31, 2016:

			Fair Value Measurements at December 31, 2016
	Total at December 31, 2016		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Fixed maturity investments
U.S. government and agencies securities	$	1,001,882	$	51,827	$	950,055	$	—
U.S. state and municipal securities	18,357		—		18,357		—
Foreign government securities	178,919		—		178,919		—
Government guaranteed corporate securities	3,917		—		3,917		—
Corporate securities	2,147,693		—		1,968,056		179,637
Residential mortgage-backed securities	1,461,286		—		1,461,286		—
Commercial mortgage-backed securities	618,848		—		618,848		—
Collateralized loan and debt obligations	371,256		—		371,256		—
Asset-backed securities	510,663		—		510,663		—
Total fixed maturity investments	6,312,821		51,827		6,081,357		179,637
Equity securities
Equity investments	500,968		184,251		316,717		—
Preferred equity investments	173		—		173		—
Total equity securities	501,141		184,251		316,890		—
Short-term investments	408,704		—		408,654		50
Other assets (see Note 9)	166,716		1,953		123,681		41,082
Total assets	$	7,389,382	$	238,031	$	6,930,582	$	220,769
Liabilities
Other liabilities (see Note 9)	$	84,069	$	2,772	$	55,051	$	26,246
Debt	770,704		—		770,704		—
Total liabilities	$	854,773	$	2,772	$	825,755	$	26,246

During the year ended December 31, 2016, $79.3 million of investments, consisting primarily of corporate securities, that were previously held by the Company indirectly in an equity fund as part of the Company's other investments, were transferred into Level 3 as no observable inputs were available, and $7.3 million of primarily collateralized loan and debt obligations, asset-backed and commercial mortgage-backed securities were transferred out of Level 3 to Level 2 during the year as market activity for these securities increased and observable inputs became available. During the year ended December 31, 2016, $18.4 million of U.S. government and agencies securities were transferred from Level 1 to Level 2 as they no longer qualified as on the run U.S. treasury securities.

139

ENDURANCE SPECIALTY HOLDINGS LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in tables expressed in thousands of United States dollars, except

for ratios, share and per share amounts)

5.     Fair value measurement, cont'd.

The following table sets forth the Company's fixed maturity investments, equity securities, short-term investments, other assets and liabilities and debt categorized by the level within the hierarchy in which the fair value measurements fall at December 31, 2015:

			Fair Value Measurements at December 31, 2015
	Total at December 31, 2015		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Fixed maturity investments
U.S. government and agencies securities	$	818,468	$	37,741	$	780,727	$	—
U.S. state and municipal securities	22,406		—		22,406		—
Foreign government securities	160,976		—		160,976		—
Government guaranteed corporate securities	57,753		—		57,753		—
Corporate securities	1,849,934		—		1,739,002		110,932
Residential mortgage-backed securities	1,311,373		—		1,311,373		—
Commercial mortgage-backed securities	812,886		—		812,174		712
Collateralized loan and debt obligations	405,128		—		404,319		809
Asset-backed securities	507,255		—		507,255		—
Total fixed maturity investments	$	5,946,179	$	37,741	$	5,795,985	$	112,453
Equity securities
Equity investments	511,191		275,086		236,105		—
Preferred equity investments	17,623		—		17,623		—
Total equity securities	$	528,814	$	275,086	$	253,728	$	—
Short-term investments	419,796		—		419,796		—
Other assets (see Note 9)	68,892		4		27,385		41,503
Total assets	$	6,963,681	$	312,831	$	6,496,894	$	153,956
Liabilities
Other liabilities (see Note 9)	$	46,088	$	—	$	4,059	$	42,029
Debt	737,974		—		737,974		—
Total liabilities	$	784,062	$	—	$	742,033	$	42,029

During the year ended December 31, 2015, $131.2 million of investments, consisting primarily of corporate securities acquired from Montpelier, were transferred into Level 3 as no observable inputs were available, and $12.4 million of primarily collateralized loan and debt obligations, asset-backed and commercial mortgage-backed securities were transferred out of Level 3 to Level 2 during the year as market activity for these securities increased and observable inputs became available. During the year ended December 31, 2015, $11.8 million of U.S. government and agencies securities were transferred from Level 1 to Level 2 as they no longer qualified as on the run U.S. treasury securities.

Level 3 assets represented 3.0% and 2.2% of the Company's total available for sale and trading investments and derivative instruments at December 31, 2016 and 2015, respectively. At December 31, 2016 and 2015, Level 3 securities were primarily comprised of corporate securities and weather derivatives. There were no material changes in the Company's valuation techniques for the year ended December 31, 2016 and 2015.

140

ENDURANCE SPECIALTY HOLDINGS LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in tables expressed in thousands of United States dollars, except

for ratios, share and per share amounts)

5.     Fair value measurement, cont'd.

Other assets and other liabilities measured at fair value included assets of $41.1 million (2015 - $41.5 million) and liabilities of $26.2 million (2015 - $42.0 million) related to proprietary, non-exchange traded derivative-based risk management products used in the Company's weather risk management business, and hedging and trading activities related to these risks. In instances where market prices are not available, the Company may use industry or internally developed valuation techniques such as historical analysis and simulation modeling to determine fair value and are considered Level 3.

Observable and unobservable inputs to these valuation techniques vary by contract requirements and commodity type, are validated using market-based or independently sourced parameters where applicable and may typically include the following:

• Observable inputs: contract price, notional, option strike, term to expiry, interest rate, contractual limits, temperature, rainfall, windspeed, wave height, snow fall, cyclone category;

• Unobservable inputs: correlation, composite weather variable; and

• Both observable and unobservable: forward commodity price.

The Company's weather curves are determined by taking the average payouts for each transaction within its portfolio utilizing detrended historical weather measurements. The Company's commodity curves are determined using historical market data scaled to currently observed market prices. The range of each unobservable input could vary based on the specific commodity, including, but not limited to natural gas, electricity, crude, liquids, temperature or precipitation. Due to the diversity of the portfolio, the range of unobservable inputs could be wide-spread as reflected in the below table on quantitative information. The unobservable inputs are validated at each reporting period and are only changed when corroborated by evidence such as similar market transactions, third-party pricing services and/or broker or dealer quotations or other empirical market data.

Changes in any or all of the unobservable inputs listed above may contribute positively or negatively to the overall portfolio fair value depending upon the underlying position. In general, movements in weather curves are the largest contributing factor that impacts fair value.

141

ENDURANCE SPECIALTY HOLDINGS LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in tables expressed in thousands of United States dollars, except

for ratios, share and per share amounts)

5.     Fair value measurement, cont'd.

Below is a summary of quantitative information regarding the significant observable and unobservable inputs used in determining the fair value of the net weather and energy related derivative assets and liabilities classified in Level 3 that are measured at fair value on a recurring basis at December 31, 2016 and 2015:

	December 31, 2016
	Fair Value (Level 3)		Valuation Techniques	Inputs	Range
					Low			High
	(Commodity curve in U.S. dollars in thousands)
Net weather and energy related derivative assets	$	14,836	Historical Analysis and Simulation	Correlation	0			1
				Temperature	-15F			115F
				Composite weather variable	-25 deg.			45 deg.
				Rainfall	0"			2"
				Windspeed	0.01 m/s			25 m/s
				Wave height	0 m			25 m
				Commodity curve	$	(1	)	$	14

	December 31, 2015
	Fair Value (Level 3)		Valuation Techniques	Inputs	Range
					Low		High
	(Commodity curve in U.S. dollars in thousands)
Net weather and energy related derivative liabilities	$	526	Historical Analysis and Simulation	Correlation	0		1
				Temperature	-15F		115F
				Composite weather variable	-25 deg.		45 deg.
				Rainfall	0"		2"
				Windspeed	0.01 m/s		25 m/s
				Snowfall	0"		18"
				Cyclone (category)	—		5
				Commodity curve	$	—	$	13

142

ENDURANCE SPECIALTY HOLDINGS LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in tables expressed in thousands of United States dollars, except

for ratios, share and per share amounts)

5.     Fair value measurement, cont'd.

The following tables present a reconciliation of the beginning and ending balances for all assets and liabilities measured at fair value on a recurring basis using Level 3 inputs during the years ended December 31, 2016 and 2015.

December 31, 2016	Fixed maturity investments			Other assets			Total assets			Other liabilities
Level 3, beginning of year	$	112,453		$	41,503		$	153,956		$	(42,029	)
Total equity income and losses and realized and unrealized gains and losses included in earnings	4,321			—			4,321			—
Total income and losses included in other underwriting loss	—			5,796			5,796			90
Change in unrealized gains and losses included in other comprehensive (loss) income	263			—			263			—
Purchases	48,572			—			48,572			—
Issues	—			22,571			22,571			(34,219		)
Sales	(57,987		)	—			(57,987		)	—
Settlements	—			(28,788		)	(28,788		)	49,912
Transfers into Level 3	79,332			—			79,332			—
Transfers out of Level 3	(7,267		)	—			(7,267		)	—
Level 3, end of year	$	179,687		$	41,082		$	220,769		$	(26,246	)

December 31, 2015	Fixed maturity investments			Other assets			Total assets			Other liabilities
Level 3, beginning of year	$	12,290		$	25,615		$	37,905		$	(35,366	)
Total equity income and losses and realized and unrealized gains and losses included in earnings	(2,785		)	—			(2,785		)	—
Total income and losses included in other underwriting loss	—			(2,951		)	(2,951		)	5,062
Change in unrealized gains and losses included in other comprehensive (loss) income	(180		)	—			(180		)	—
Purchases	13			4,750			4,763			(4,231		)
Issues	—			21,559			21,559			(34,114		)
Sales	(15,695		)	—			(15,695		)	—
Settlements	—			(7,470		)	(7,470		)	26,620
Transfers into Level 3	131,215			—			131,215			—
Transfers out of Level 3	(12,405		)	—			(12,405		)	—
Level 3, end of year	$	112,453		$	41,503		$	153,956		$	(42,029	)

143

ENDURANCE SPECIALTY HOLDINGS LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in tables expressed in thousands of United States dollars, except

for ratios, share and per share amounts)

6.     Reserve for losses and loss expenses

Activity in the reserve for losses and loss expenses for the years ended December 31, 2016, 2015 and 2014 is summarized as follows:

	2016			2015			2014
Gross reserve for losses and loss expenses, January 1	$	4,510,415		$	3,846,859		$	4,002,259
Reinsurance recoverable on unpaid losses	907,944			670,795			593,755
Net reserve for losses and loss expenses, January 1	3,602,471			3,176,064			3,408,504
Incurred related to:
Current year	1,542,602			1,160,572			1,203,977
Prior years	(221,550		)	(243,464		)	(233,815		)
Total incurred	1,321,052			917,108			970,162
Paid related to:
Current year	(295,863		)	(265,898		)	(439,169		)
Prior years	(890,027		)	(867,739		)	(719,043		)
Total paid	(1,185,890		)	(1,133,637		)	(1,158,212		)
Amounts acquired(1)	—			675,019			—
Foreign currency translation and other	(45,624		)	(32,083		)	(44,390		)
Net reserve for losses and loss expenses, December 31	3,692,009			3,602,471			3,176,064
Reinsurance recoverable on unpaid losses	1,213,129			907,944			670,795
Gross reserve for losses and loss expenses, December 31	$	4,905,138		$	4,510,415		$	3,846,859

(1) Represents the fair value of Montpelier's reserve for losses and loss expenses and reinsurance recoverable acquired at July 31, 2015.

During 2016, the Company's estimated ultimate losses for prior accident years were reduced by $221.6 million (2015 - $243.5 million; 2014 - $233.8 million) due to lower claims emergence than originally estimated by the Company. During 2016, the Company experienced favorable reserve development of $144.4 million across each line of business in the Reinsurance segment and $77.1 million of favorable development across each line of business in the Insurance segment. During 2015, the Company experienced favorable development of $161.5 million across each line of business in the Reinsurance segment and $82.0 million of favorable development across each line of business in the Insurance segment. During 2014, the Company experienced favorable development of $153.2 million across each line of business in the Reinsurance segment and $80.6 million of favorable development across each line of business in the Insurance segment.

Reserves for losses and loss expenses are based in part upon the estimation of losses resulting from catastrophic events. Estimation of these losses and loss expenses are based upon the Company's historical claims experience and is inherently difficult because of the Company's short operating history and the possible severity of catastrophe claims. Therefore, the Company uses both proprietary and commercially available models, as well as historical reinsurance industry catastrophe claims experience in addition to its own historical data for purposes of evaluating trends and providing an estimate of ultimate claims costs.

A significant portion of the Company's contracts and policies cover excess layers for high severity exposures. Underwriting results and ultimate claims payments for this type of coverage are therefore not typically reported to the Company until later in the contract and policy lives. As a result, the level of losses reported to date is not necessarily indicative of expected future results.

144

ENDURANCE SPECIALTY HOLDINGS LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in tables expressed in thousands of United States dollars, except

for ratios, share and per share amounts)

6.     Reserve for losses and loss expenses, cont'd.

The Company monitors the performance of its underwriting operations through review of discrete information related to its two reportable segments, Insurance and Reinsurance. Within each of these segments, the Company writes a variety of different types of insurance and reinsurance. For reporting purposes, management has combined its many business units, including within the Insurance segment - agriculture, casualty and other specialty, professional lines and property, marine/energy and aviation; and within the Reinsurance segment- catastrophe, property, casualty, professional lines and specialty. Management believes that the businesses combined within these business lines have similarities that make it appropriate to evaluate each as a group.

The Company has included reserves acquired as part of its acquisition of Montpelier on a retrospective basis within its existing lines of business. In addition, the Company has restated all periods reflected in the various tables at the foreign exchange rates as of December 31, 2016.

The Company incorporates a variety of actuarial methods and judgments in its reserving process. Two key inputs in the various actuarial methods employed by the Company are initial expected loss ratios and expected loss reporting patterns. These key inputs impact the potential variability in the estimate of the reserve for losses and loss expenses and are applicable to each of the Company's business segments. The Company's loss and loss expense reserves consider and reflect, in part, deviations resulting from differences between expected loss and actual loss reporting as well as judgments relating to the weights applied to the reserve levels indicated by the actuarial methods. Expected loss reporting patterns are based upon internal and external historical data and assumptions regarding claims reporting trends over a period of time that extends beyond the Company's own operating history.

IBNR Reserves and Claims Frequency

The Company establishes loss and loss expense reserves to provide for the estimated costs of paying claims under insurance policies and reinsurance contracts underwritten by the Company. These reserves include estimates for both claims that have been reported and those that have been incurred but not reported and include estimates of all expenses associated with processing and settling these claims. Estimating the ultimate cost of future claims and claim adjustment expenses is based on management judgment and thus, actual losses incurred may vary significantly from management's estimates.

For insurance policies, the Company generally receives claims notices that are recorded by the claims staff within our underwriting, financial and claims systems. When we are notified of insured losses or discover potential losses as part of our claims audits, claims personnel record a case reserve as appropriate for the estimated amount of the exposure at that time. Reserves are also established to provide for the estimated expense of settling claims, including legal and other fees and the general expenses of administering the claims adjustment process.

The Company counts an insurance claim when either an indemnity or allocated adjustment expense amount has been paid, or at any quarter end, the Company recorded a case reserve.

The Company's Reinsurance segment and line of business include contracts written on a proportional or excess of loss basis. For proportional reinsurance business, the Company receives a bordereau indicating the Company's share of losses as well as other financial items. The Company does not have direct access to claims frequency information, and as such, the number of claims represented by the losses reported cannot be determined by the Company. The Company has determined that it is impracticable to provide claims frequency information related to its reinsurance contracts written on a proportional basis. The amount of IBNR related to proportional reinsurance contracts was $700.0 million at December 31, 2016.

For Reinsurance contracts written on an excess of loss basis, the Company has developed claims frequency information. The Company determines claims frequency for excess of loss contracts when either a loss has been paid or at any quarter-end, the Company recorded a case reserve. Claims are counted by contract.

145

ENDURANCE SPECIALTY HOLDINGS LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in tables expressed in thousands of United States dollars, except

for ratios, share and per share amounts)

6.     Reserve for losses and loss expenses, cont'd.

The following tables show, by segment by line of business, the incurred losses and loss expenses and cumulative paid losses and loss expenses, net of reinsurance, as of December 31, 2016. The following also includes the amount of IBNR reserves recorded as well as the cumulative number of reported claims for the Insurance segment lines of business and only excess of loss reinsurance contracts for the Reinsurance segment lines of business.

Insurance Segment - Agriculture
Incurred losses and loss expenses, net of reinsurance
For the years ended December 31,																					At December 31, 2016
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016		IBNR reserves		Cumulative number of reported claims
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2007	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	—
2008	—		333,380		318,709		313,296		313,800		313,814		313,938		313,834		313,834		313,834		—		30,036
2009	—		—		298,914		284,277		280,798		281,667		281,594		281,365		281,365		281,365		—		26,540
2010	—		—		—		305,131		280,330		280,409		280,166		280,008		280,008		280,008		—		18,331
2011	—		—		—		—		520,388		509,531		508,424		507,930		507,847		507,847		—		37,061
2012	—		—		—		—		—		581,455		576,836		573,376		572,995		572,469		—		38,297
2013	—		—		—		—		—		—		566,483		563,158		562,122		562,826		—		44,138
2014	—		—		—		—		—		—		—		451,710		451,843		449,705		—		53,886
2015	—		—		—		—		—		—		—		—		241,501		227,634		—		39,508
2016	—		—		—		—		—		—		—		—		—		200,353		20,453		29,353
Total																			$	3,396,041
Cumulative paid losses and loss expenses, net of reinsurance
For the years ended December 31,
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2007	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
2008	—		239,498		310,235		313,196		313,708		313,722		313,859		313,834		313,834		313,834
2009	—		—		178,206		281,996		280,468		280,991		281,058		281,365		281,365		281,365
2010	—		—		—		144,296		279,397		279,768		279,859		280,008		280,008		280,008
2011	—		—		—		—		461,335		506,905		507,790		507,918		507,847		507,847
2012	—		—		—		—		—		478,797		573,781		572,885		572,995		572,469
2013	—		—		—		—		—		—		438,034		562,046		562,075		561,652
2014	—		—		—		—		—		—		—		352,202		448,046		449,705
2015	—		—		—		—		—		—		—		—		122,696		222,212
2016	—		—		—		—		—		—		—		—		—		75,894
Total																			$	3,264,986
			Reserve for losses and loss expenses, net of reinsurance																$	131,055

146

ENDURANCE SPECIALTY HOLDINGS LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in tables expressed in thousands of United States dollars, except

for ratios, share and per share amounts)

6.     Reserve for losses and loss expenses, cont'd.

Insurance Segment - Casualty & Other Specialty
Incurred losses and loss expenses, net of reinsurance
For the years ended December 31,																					At December 31, 2016
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016		IBNR reserves		Cumulative number of reported claims
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2007	$	254,678	$	251,840	$	228,021	$	232,156	$	232,186	$	235,482	$	213,895	$	197,246	$	196,072	$	191,927	$	20,274	988
2008	—		285,334		296,079		333,844		366,479		363,094		347,477		339,927		328,153		312,759		35,706		1,602
2009	—		—		198,689		240,235		237,368		237,101		234,983		230,594		218,900		206,077		24,553		2,509
2010	—		—		—		150,636		179,854		179,208		175,922		160,450		135,214		122,748		19,995		2,738
2011	—		—		—		—		151,344		169,803		222,470		226,274		201,355		186,588		48,836		4,319
2012	—		—		—		—		—		164,568		182,924		187,141		183,644		179,929		73,724		6,268
2013	—		—		—		—		—		—		153,377		165,853		205,041		230,081		81,540		6,790
2014	—		—		—		—		—		—		—		120,226		132,184		141,970		84,031		7,969
2015	—		—		—		—		—		—		—		—		145,828		156,771		77,472		8,717
2016	—		—		—		—		—		—		—		—		—		165,558		137,608		5,305
Total																			$	1,894,408
Cumulative paid losses and loss expenses, net of reinsurance
For the years ended December 31,
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2007	$	9,090	$	38,777	$	66,865	$	103,283	$	124,887	$	139,923	$	144,982	$	152,297	$	159,687	$	163,236
2008	—		36,479		82,811		129,840		169,331		200,021		239,185		255,585		261,201		266,264
2009	—		—		15,098		50,815		83,210		103,922		139,011		150,241		160,903		168,351
2010	—		—		—		863		4,279		27,379		64,917		83,634		88,737		96,785
2011	—		—		—		—		3,279		14,468		30,074		54,598		91,817		97,285
2012	—		—		—		—		—		3,707		16,190		32,686		51,381		75,508
2013	—		—		—		—		—		—		3,145		15,581		89,771		119,524
2014	—		—		—		—		—		—		—		3,389		18,914		36,446
2015	—		—		—		—		—		—		—		—		18,426		49,196
2016	—		—		—		—		—		—		—		—		—		14,281
Total																			$	1,086,876
			Reserve for losses and loss expenses from accident year 2006 and prior, net of reinsurance																30,599
			Adjustment for unallocated claim expenses																43,666
			Reserve for losses and loss expenses, net of reinsurance																$	881,797

147

ENDURANCE SPECIALTY HOLDINGS LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in tables expressed in thousands of United States dollars, except

for ratios, share and per share amounts)

6.     Reserve for losses and loss expenses, cont'd.

Insurance Segment - Professional Lines
Incurred losses and loss expenses, net of reinsurance
For the years ended December 31,																					At December 31, 2016
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016		IBNR reserves		Cumulative number of reported claims
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2007	$	52,739	$	110,525	$	150,972	$	120,358	$	119,243	$	117,895	$	113,520	$	116,711	$	125,496	$	122,969	$	47	232
2008	—		62,838		62,586		83,358		88,047		96,887		109,471		127,641		138,119		164,412		3,932		379
2009	—		—		100,914		118,432		104,421		106,597		109,441		99,973		92,165		93,803		5,728		1,039
2010	—		—		—		108,369		105,611		101,591		92,931		82,421		74,856		69,387		9,860		1,594
2011	—		—		—		—		102,012		98,353		99,466		79,988		98,989		105,619		15,265		1,232
2012	—		—		—		—		—		101,872		103,358		101,426		79,591		69,333		18,080		1,233
2013	—		—		—		—		—		—		78,988		79,732		70,564		61,499		27,377		1,255
2014	—		—		—		—		—		—		—		64,437		66,524		57,446		29,232		2,599
2015	—		—		—		—		—		—		—		—		74,823		72,559		58,966		3,464
2016	—		—		—		—		—		—		—		—		—		107,761		99,005		3,814
Total																			$	924,788
Cumulative paid losses and loss expenses, net of reinsurance
For the years ended December 31,
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2007	$	83	$	987	$	1,744	$	62,321	$	90,128	$	100,560	$	100,693	$	110,254	$	120,328	$	122,867
2008	—		54		1,898		14,027		15,888		16,613		48,997		72,576		98,770		113,175
2009	—		—		1,045		8,755		32,193		38,000		56,126		73,072		77,628		80,201
2010	—		—		—		1,932		16,014		27,557		36,506		46,982		48,978		51,885
2011	—		—		—		—		2,367		11,766		21,266		33,639		71,782		85,003
2012	—		—		—		—		—		2,582		13,185		22,237		29,854		35,678
2013	—		—		—		—		—		—		2,193		13,807		21,289		26,783
2014	—		—		—		—		—		—		—		1,167		7,081		20,020
2015	—		—		—		—		—		—		—		—		1,243		7,130
2016	—		—		—		—		—		—		—		—		—		2,324
Total																			$	545,066
			Reserve for losses and loss expenses from accident year 2006 and prior, net of reinsurance																61
			Adjustment for unallocated claim expenses																26,477
			Reserve for losses and loss expenses, net of reinsurance																$	406,260

148

ENDURANCE SPECIALTY HOLDINGS LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in tables expressed in thousands of United States dollars, except

for ratios, share and per share amounts)

6.     Reserve for losses and loss expenses, cont'd.

Insurance Segment - Property, Marine/Energy & Aviation
Incurred losses and loss expenses, net of reinsurance
For the years ended December 31,																					At December 31, 2016
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016		IBNR reserves		Cumulative number of reported claims
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2007	$	45,128	$	32,772	$	25,714	$	28,766	$	29,071	$	28,925	$	33,206	$	33,741	$	34,083	$	32,680	$	—	201
2008	—		113,427		104,626		84,425		74,111		84,093		80,158		78,176		78,178		77,373		13		459
2009	—		—		60,589		48,196		23,651		21,225		19,933		19,423		19,780		19,341		33		568
2010	—		—		—		93,741		54,986		48,033		42,918		41,703		42,202		43,240		992		1,423
2011	—		—		—		—		163,234		139,932		125,588		124,243		127,840		133,297		256		2,486
2012	—		—		—		—		—		172,535		137,329		123,134		121,281		121,873		405		2,704
2013	—		—		—		—		—		—		115,600		101,878		85,794		80,971		3,933		3,145
2014	—		—		—		—		—		—		—		136,748		114,243		102,002		7,588		4,405
2015	—		—		—		—		—		—		—		—		183,192		184,867		18,890		6,281
2016	—		—		—		—		—		—		—		—		—		234,235		72,271		6,600
Total																			$	1,029,879
Cumulative paid losses and loss expenses, net of reinsurance
For the years ended December 31,
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2007	$	10,626	$	19,644	$	21,987	$	22,614	$	23,482	$	23,780	$	32,561	$	33,546	$	34,084	$	32,671
2008	—		40,140		57,685		62,922		64,434		75,187		75,042		77,234		77,910		77,239
2009	—		—		11,014		16,967		18,120		18,657		18,887		19,075		19,407		19,261
2010	—		—		—		11,680		29,150		33,938		36,306		38,880		40,782		41,802
2011	—		—		—		—		17,871		63,710		82,967		103,301		117,337		123,496
2012	—		—		—		—		—		18,709		79,533		87,216		102,447		108,983
2013	—		—		—		—		—		—		20,929		57,243		66,851		71,423
2014	—		—		—		—		—		—		—		26,491		60,418		79,321
2015	—		—		—		—		—		—		—		—		52,121		131,697
2016	—		—		—		—		—		—		—		—		—		77,448
Total																			$	763,341
			Reserve for losses and loss expenses from accident year 2006 and prior, net of reinsurance																3
			Adjustment for unallocated claim expenses																7,855
			Reserve for losses and loss expenses, net of reinsurance																$	274,396

149

ENDURANCE SPECIALTY HOLDINGS LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in tables expressed in thousands of United States dollars, except

for ratios, share and per share amounts)

6.     Reserve for losses and loss expenses, cont'd.

Reinsurance Segment - Catastrophe
Incurred losses and loss expenses, net of reinsurance
For the years ended December 31,																					At December 31, 2016
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016		IBNR reserves		Cumulative number of reported claims
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2007	$	168,640	$	126,561	$	104,527	$	102,855	$	91,502	$	88,252	$	86,273	$	90,379	$	97,851	$	102,929	$	153	192
2008	—		405,190		378,838		389,111		392,668		384,117		382,382		382,068		384,864		381,551		317		336
2009	—		—		102,411		74,817		59,051		55,933		55,229		56,944		58,910		60,788		559		204
2010	—		—		—		272,094		234,576		226,060		226,208		231,531		237,677		224,323		1,394		265
2011	—		—		—		—		622,350		591,965		589,614		603,680		612,274		624,448		4,640		574
2012	—		—		—		—		—		245,011		180,145		163,109		154,240		151,003		3,884		345
2013	—		—		—		—		—		—		157,097		129,469		127,984		124,311		1,454		315
2014	—		—		—		—		—		—		—		141,173		126,822		126,512		3,156		229
2015	—		—		—		—		—		—		—		—		60,465		47,255		4,057		224
2016	—		—		—		—		—		—		—		—		—		137,357		27,654		216
Total																			$	1,980,477
Cumulative paid losses and loss expenses, net of reinsurance
For the years ended December 31,
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2007	$	31,590	$	85,271	$	87,267	$	91,214	$	83,511	$	82,285	$	80,852	$	88,684	$	97,279	$	102,497
2008	—		154,382		255,721		316,023		353,658		375,455		378,322		380,366		382,431		380,409
2009	—		—		26,869		45,763		48,440		49,847		51,013		54,189		57,551		59,865
2010	—		—		—		58,556		124,322		152,264		173,341		193,340		207,716		208,329
2011	—		—		—		—		230,619		385,304		495,351		561,864		593,831		615,504
2012	—		—		—		—		—		56,614		105,745		126,802		134,288		136,862
2013	—		—		—		—		—		—		34,236		83,259		106,983		116,996
2014	—		—		—		—		—		—		—		49,337		107,546		117,040
2015	—		—		—		—		—		—		—		—		20,084		31,850
2016	—		—		—		—		—		—		—		—		—		43,793
Total																			$	1,813,145
			Reserve for losses and loss expenses from accident year 2006 and prior, net of reinsurance																91
			Adjustment for unallocated claim expenses																3,002
			Reserve for losses and loss expenses, net of reinsurance																$	170,425

150

ENDURANCE SPECIALTY HOLDINGS LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in tables expressed in thousands of United States dollars, except

for ratios, share and per share amounts)

6.     Reserve for losses and loss expenses, cont'd.

Reinsurance Segment - Property
Incurred losses and loss expenses, net of reinsurance
For the years ended December 31,																					At December 31, 2016
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016		IBNR reserves		Cumulative number of reported claims
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2007	$	123,502	$	137,474	$	127,294	$	120,598	$	116,552	$	115,947	$	119,773	$	121,653	$	121,902	$	117,706	$	2	309
2008	—		173,437		151,764		133,022		123,162		124,861		126,887		126,991		125,622		122,943		3		612
2009	—		—		151,371		123,151		116,114		114,137		114,342		115,111		115,213		111,782		114		991
2010	—		—		—		221,480		216,726		190,322		186,817		188,516		188,304		174,952		419		1,126
2011	—		—		—		—		344,015		334,865		312,365		312,278		305,567		335,228		2,089		942
2012	—		—		—		—		—		314,924		259,753		240,928		240,070		244,651		2,224		813
2013	—		—		—		—		—		—		255,632		239,844		217,661		199,195		5,650		1,017
2014	—		—		—		—		—		—		—		211,769		211,888		197,761		11,702		1,060
2015	—		—		—		—		—		—		—		—		184,586		181,761		16,927		880
2016	—		—		—		—		—		—		—		—		—		166,629		55,289		542
Total																			$	1,852,608
Cumulative paid losses and loss expenses, net of reinsurance
For the years ended December 31,
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2007	$	23,678	$	71,828	$	103,059	$	111,825	$	111,155	$	112,559	$	116,499	$	119,203	$	120,881	$	116,680
2008	—		30,553		79,457		104,279		107,291		110,039		118,745		122,512		123,954		121,472
2009	—		—		27,690		71,123		89,940		97,377		103,688		107,021		109,796		107,609
2010	—		—		—		49,442		117,260		141,348		163,173		175,919		180,555		170,367
2011	—		—		—		—		76,880		172,679		254,657		286,065		291,961		326,570
2012	—		—		—		—		—		53,488		146,671		192,022		214,711		230,684
2013	—		—		—		—		—		—		55,668		138,841		173,888		176,721
2014	—		—		—		—		—		—		—		51,635		134,663		158,766
2015	—		—		—		—		—		—		—		—		37,685		100,328
2016	—		—		—		—		—		—		—		—		—		33,787
Total																			$	1,542,984
			Reserve for losses and loss expenses from accident year 2006 and prior, net of reinsurance																4,954
			Adjustment for unallocated claim expenses																4,301
			Reserve for losses and loss expenses, net of reinsurance																$	318,879

151

ENDURANCE SPECIALTY HOLDINGS LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in tables expressed in thousands of United States dollars, except

for ratios, share and per share amounts)

6.     Reserve for losses and loss expenses, cont'd.

Reinsurance Segment - Casualty
Incurred losses and loss expenses, net of reinsurance
For the years ended December 31,																					At December 31, 2016
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016		IBNR reserves		Cumulative number of reported claims
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2007	$	108,468	$	116,074	$	116,095	$	120,815	$	115,024	$	114,484	$	112,945	$	111,664	$	110,369	$	112,366	$	13,382	549
2008	—		112,680		118,736		116,204		114,790		107,336		101,613		98,504		97,260		93,732		9,538		406
2009	—		—		116,515		126,969		124,218		127,972		126,505		121,969		115,317		114,901		20,438		433
2010	—		—		—		186,667		179,891		176,073		170,938		172,699		160,142		159,409		27,794		506
2011	—		—		—		—		198,159		199,035		197,138		204,187		195,094		196,946		35,929		604
2012	—		—		—		—		—		195,983		191,436		193,164		183,512		174,625		42,134		701
2013	—		—		—		—		—		—		178,401		172,604		170,144		163,986		62,188		842
2014	—		—		—		—		—		—		—		125,515		120,521		119,143		45,271		615
2015	—		—		—		—		—		—		—		—		119,276		119,529		58,182		250
2016	—		—		—		—		—		—		—		—		—		143,263		106,858		127
Total																			$	1,397,900
Cumulative paid losses and loss expenses, net of reinsurance
For the years ended December 31,
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2007	$	3,009	$	13,399	$	23,890	$	35,928	$	48,519	$	57,254	$	64,711	$	73,518	$	77,378	$	87,170
2008	—		8,475		17,338		30,528		43,923		51,831		58,419		67,856		72,592		75,906
2009	—		—		7,367		21,841		34,770		51,576		61,615		70,558		76,463		83,892
2010	—		—		—		14,826		34,469		56,997		75,290		92,382		104,037		114,875
2011	—		—		—		—		28,035		50,998		77,748		104,394		116,519		141,449
2012	—		—		—		—		—		30,667		54,457		75,456		92,072		105,209
2013	—		—		—		—		—		—		18,577		35,808		56,564		71,677
2014	—		—		—		—		—		—		—		10,390		33,215		49,951
2015	—		—		—		—		—		—		—		—		15,817		34,396
2016	—		—		—		—		—		—		—		—		—		18,837
Total																			$	783,362
			Reserve for losses and loss expenses from accident year 2006 and prior, net of reinsurance																106,483
			Adjustment for unallocated claim expenses																10,637
			Reserve for losses and loss expenses, net of reinsurance																$	731,658

152

ENDURANCE SPECIALTY HOLDINGS LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in tables expressed in thousands of United States dollars, except

for ratios, share and per share amounts)

6.     Reserve for losses and loss expenses, cont'd.

Reinsurance Segment - Professional Lines
Incurred losses and loss expenses, net of reinsurance
For the years ended December 31,																					At December 31, 2016
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016		IBNR reserves		Cumulative number of reported claims
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2007	$	46,031	$	51,283	$	49,539	$	43,988	$	41,956	$	41,037	$	43,261	$	42,115	$	41,989	$	37,980	$	1,539	310
2008	—		41,797		50,276		47,154		44,672		47,084		44,526		42,863		41,599		39,059		1,171		262
2009	—		—		41,430		43,003		41,681		40,763		35,771		36,560		36,474		38,720		2,098		204
2010	—		—		—		58,153		58,567		67,335		62,185		53,825		46,661		45,024		3,733		110
2011	—		—		—		—		55,812		56,535		55,286		44,921		36,691		31,390		4,828		57
2012	—		—		—		—		—		43,519		42,443		43,426		36,707		30,576		5,803		81
2013	—		—		—		—		—		—		48,933		49,513		45,382		41,403		21,619		48
2014	—		—		—		—		—		—		—		91,943		88,915		90,713		50,367		62
2015	—		—		—		—		—		—		—		—		130,595		130,832		99,261		55
2016	—		—		—		—		—		—		—		—		—		148,671		139,857		10
Total																			$	634,368
Cumulative paid losses and loss expenses, net of reinsurance
For the years ended December 31,
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2007	$	144	$	2,310	$	5,649	$	10,694	$	16,764	$	21,259	$	28,121	$	30,796	$	33,144	$	32,771
2008	—		341		2,156		6,200		12,752		22,496		26,811		30,169		32,873		33,434
2009	—		—		1,033		3,330		7,963		15,666		19,184		23,469		27,039		32,329
2010	—		—		—		2,249		7,348		14,481		24,511		31,313		36,100		36,181
2011	—		—		—		—		1,685		4,943		9,405		15,168		20,124		22,142
2012	—		—		—		—		—		965		1,929		4,204		9,147		13,757
2013	—		—		—		—		—		—		997		2,561		6,694		11,636
2014	—		—		—		—		—		—		—		1,149		6,446		22,822
2015	—		—		—		—		—		—		—		—		2,941		14,357
2016	—		—		—		—		—		—		—		—		—		1,920
Total																			$	221,349
			Reserve for losses and loss expenses from accident year 2006 and prior, net of reinsurance																5,540
			Adjustment for unallocated claim expenses																6,164
			Reserve for losses and loss expenses, net of reinsurance																$	424,723

153

ENDURANCE SPECIALTY HOLDINGS LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in tables expressed in thousands of United States dollars, except

for ratios, share and per share amounts)

6.     Reserve for losses and loss expenses, cont'd.

Reinsurance Segment - Specialty
Incurred losses and loss expenses, net of reinsurance
For the years ended December 31,																					At December 31, 2016
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016		IBNR reserves		Cumulative number of reported claims
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2007	$	229,505	$	202,655	$	197,905	$	193,084	$	189,577	$	187,961	$	187,949	$	185,743	$	183,044	$	174,205	$	435	288
2008	—		125,389		94,050		92,039		79,903		79,052		77,556		75,348		73,745		67,604		3,549		195
2009	—		—		98,431		81,269		73,387		69,691		67,605		65,333		62,834		62,501		4,414		170
2010	—		—		—		123,741		107,630		97,718		86,949		85,252		84,817		82,937		1,856		218
2011	—		—		—		—		111,517		100,639		86,832		82,514		82,984		82,014		2,565		274
2012	—		—		—		—		—		135,448		111,813		99,700		92,162		85,852		5,174		294
2013	—		—		—		—		—		—		103,014		93,335		92,119		83,806		9,865		329
2014	—		—		—		—		—		—		—		120,335		116,642		108,392		19,693		342
2015	—		—		—		—		—		—		—		—		150,288		149,473		35,118		318
2016	—		—		—		—		—		—		—		—		—		156,042		111,660		134
Total																			$	1,052,826
Cumulative paid losses and loss expenses, net of reinsurance
For the years ended December 31,
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2007	$	16,023	$	123,632	$	143,800	$	153,622	$	160,113	$	169,797	$	174,059	$	175,948	$	177,082	$	169,673
2008	—		15,525		38,261		47,410		52,461		58,971		61,915		64,489		65,005		61,384
2009	—		—		13,286		33,142		39,439		43,804		47,556		52,481		52,635		55,068
2010	—		—		—		15,110		48,043		57,822		64,199		68,915		72,072		74,797
2011	—		—		—		—		22,755		44,494		61,019		68,869		73,730		75,760
2012	—		—		—		—		—		29,756		53,695		64,242		72,510		74,517
2013	—		—		—		—		—		—		14,696		37,621		52,015		62,458
2014	—		—		—		—		—		—		—		23,579		49,847		66,813
2015	—		—		—		—		—		—		—		—		18,994		70,659
2016	—		—		—		—		—		—		—		—		—		19,265
Total																			$	730,394
			Reserve for losses and loss expenses from accident year 2006 and prior, net of reinsurance																24,265
			Adjustment for unallocated claim expenses																6,119
			Reserve for losses and loss expenses, net of reinsurance																$	352,816

154

ENDURANCE SPECIALTY HOLDINGS LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in tables expressed in thousands of United States dollars, except

for ratios, share and per share amounts)

6.     Reserve for losses and loss expenses, cont'd.

Reconciliation of Claims Development Tables to Gross Reserve for Losses and Loss Expenses

The following is a reconciliation of the net incurred and paid claims development tables to the reserve for losses and loss expenses in the consolidated balance sheet at December 31, 2016.

		December 31, 2016
		Net reserve for losses and loss expenses		Reinsurance recoverable on unpaid losses		Gross reserve for losses and loss expenses
Insurance
	Agriculture	$	131,055	$	116,832	$	247,887
	Casualty & other specialty	881,797		490,447		1,372,244
	Professional lines	406,260		305,114		711,374
	Property, marine/energy & aviation	274,396		193,088		467,484
Reinsurance
	Catastrophe	170,425		39,419		209,844
	Property	318,879		1,466		320,345
	Casualty	731,658		1,175		732,833
	Professional lines	424,723		449		425,172
	Specialty	352,816		65,139		417,955
Total		$	3,692,009	$	1,213,129	$	4,905,138

Historical Claims Duration

The following is unaudited supplementary information about historical average claims duration by line of business.

		Average annual percentage payout of incurred claims by age, net of reinsurance (number of years)
		1		2		3		4		5		6		7		8		9		10
Insurance Segment
	Agriculture	73.3	%	24.1	%	0.1	%	0.3	%	—	%	—	%	—	%	—	%	—	%	—	%
	Casualty & other specialty	5.5	%	11.3	%	15.5	%	15.1	%	12.8	%	7.1	%	4.5	%	2.7	%	3.7	%	1.4	%
	Professional lines	1.5	%	7.8	%	11.0	%	14.3	%	15.0	%	14.4	%	10.3	%	8.9	%	8.3	%	7.2	%
	Property, marine/energy & aviation	24.4	%	39.3	%	18.0	%	9.9	%	4.3	%	2.1	%	3.2	%	0.4	%	1.1	%	0.2	%
Reinsurance Segment
	Catastrophe	32.4	%	36.1	%	15.4	%	7.6	%	3.4	%	1.7	%	0.2	%	0.3	%	1.3	%	1.0	%
	Property	24.1	%	39.4	%	19.5	%	6.5	%	3.5	%	2.7	%	0.5	%	0.9	%	0.9	%	0.3	%
	Casualty	9.2	%	12.6	%	12.7	%	11.9	%	9.9	%	8.2	%	6.3	%	5.5	%	4.4	%	3.2	%
	Professional lines	1.9	%	6.7	%	12.1	%	18.5	%	16.9	%	12.2	%	8.2	%	6.4	%	4.3	%	3.3	%
	Specialty	13.9	%	37.7	%	20.6	%	7.0	%	7.6	%	4.6	%	2.2	%	3.1	%	0.6	%	—	%

155

ENDURANCE SPECIALTY HOLDINGS LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in tables expressed in thousands of United States dollars, except

for ratios, share and per share amounts)

7.     Reinsurance

The effects of reinsurance on premiums earned and written during the years ended December 31, 2016, 2015 and 2014 are as follows:

	Year Ended December 31, 2016						Year Ended December 31, 2015						Year Ended December 31, 2014
	Earned			Written			Earned			Written			Earned			Written
Direct	$	2,336,314		$	2,570,494		$	1,938,830		$	2,085,901		$	1,521,648		$	1,716,128
Assumed	1,635,379			1,631,676			1,331,831			1,234,960			1,132,370			1,177,948
Ceded	(1,608,033		)	(1,832,235		)	(1,292,208		)	(1,370,391		)	(790,040		)	(959,870		)
	$	2,363,660		$	2,369,935		$	1,978,453		$	1,950,470		$	1,863,978		$	1,934,206

The Company purchases reinsurance to reduce its exposure to risk of loss in certain insurance and reinsurance lines of business. Reinsurance recoverables are recorded as assets if the reinsurer is deemed able to meet its obligations. Ceded reinsurance contracts do not relieve the Company from its obligations to policyholders. The Company remains primarily liable to its policyholders for the portion reinsured to the extent that any reinsurer does not meet the obligations assumed under the reinsurance agreements.

During the year ended December 31, 2016, the Company recorded ceded losses of $824.3 million (2015 - $833.7 million; 2014 - $575.7 million). The balance of reinsurance recoverable on paid and unpaid losses at December 31, 2016 and 2015 was distributed as follows based on the ratings of the reinsurers:

Rating	December 31, 2016		December 31, 2015
U.S. Government sponsored program	$	141,443	$	234,596
A+ and above	889,814		458,255
A	397,691		476,184
A-	5,805		7,060
Not rated	52,165		19,875
Total	$	1,486,918	$	1,195,970

At December 31, 2016 and 2015, the Company held collateral of $493.3 million and $321.5 million, respectively, related to its ceded reinsurance agreements.

8.     Debt and financing arrangements

Credit Facility

On March 23, 2016, the Company and certain designated subsidiaries of the Company entered into a $450.0 millionfive-year letter of credit facility with JPMorgan Chase Bank, N.A. ("JPMorgan") as administrative agent (the "Credit Facility"). Upon entering into the Credit Facility, the Company terminated its existing $700.0 million credit agreement, dated April 19, 2012, with JPMorgan as administrative agent. The Credit Facility does not provide for revolving or term loans. As of December 31, 2016 and 2015, there were no borrowings under the Credit Facility and letters of credit outstanding under the Credit Facility were $199.8 million (2015 - $329.9 million).

The Credit Facility is collateralized on a several basis by each entity incurring such obligation by cash and securities deposited into collateral accounts from time to time with Deutsche Bank Trust Company Americas as collateral agent. So long as there is no default under the terms of the Credit Facility, the Company may request that the size of the Credit Facility be increased by $100.0 million, but no participating lender is obligated to increase its commitments under the Credit Facility.

156

ENDURANCE SPECIALTY HOLDINGS LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in tables expressed in thousands of United States dollars, except

for ratios, share and per share amounts)

8.     Debt and financing arrangements, cont'd.

The Company is required to pay a fee of 0.40% per annum on the daily stated amount of outstanding letters of credit issued under the Credit Facility. In addition, the Credit Facility requires the Company to pay to the lenders a commitment fee of0.125% per annum on the average daily amount of the unused commitments of the lenders. The Credit Facility permits a lender, if requested and in its discretion, to issue a letter of credit pursuant to which it fronts for the other lenders. For such letters of credit, such fronting lenders may receive certain fronting fees from the Company.

The Credit Facility requires the Company's compliance with certain customary restrictive covenants, including a financial covenant that the Company maintain a leverage ratio of no greater than 0.35:1.00 at any time. In addition, each of the Company's regulated insurance subsidiaries that has a claims paying rating from A.M. Best must maintain a rating of at least "B+" at all times.

The Credit Facility also contains customary event of default provisions, including failure to pay any unpaid drawing under a letter of credit under the Credit Facility or interest thereon and failure to pay any fee under the Credit Facility, insolvency events of the Company or any of its subsidiaries (other than certain immaterial subsidiaries), a change in control of the Company, a breach of the representations or covenants in the Credit Facility or the security documents relating thereto and certain defaults by the Company or its subsidiaries under other indebtedness. In the case of an event of default that occurs as a result of an insolvency event of the Company or one of its designated subsidiary borrowers, the commitments of the lenders will automatically terminate and the repayment of outstanding obligations will be automatically accelerated. Upon the occurrence of any other event of default under the Credit Facility, the lenders can terminate their commitments under the Credit Facility, require repayment of any outstanding obligations under the Credit Facility, give notice of non-extension of any outstanding letters of credit in accordance with their terms, require the delivery of cash collateral for outstanding letters of credit and foreclose on any collateral held by the lenders (or any agent on their behalf) under the Credit Facility.

Uncommitted Letter of Credit Agreements

The Company is party to certain uncommitted letter of credit reimbursement agreements ("LOC Agreements") that allow for the issuance of letters of credit in a variety of currencies, including U.S. dollars. The fees paid under the LOC Agreements depend on the amount of the outstanding letters of credit and vary from 0.30% to 0.45% on the principal amount of letters of credit outstanding to a fee negotiated at the time of issuance of the individual letters of credit. The total amount of letters of credit outstanding under the LOC Agreements at December 31, 2016 was $22.5 million (December 31, 2015 - $11.7 million).

7% Senior Notes

The Company issued $335.0 million principal amount of 7% Senior Notes due July 15, 2034 (the "7% Senior Notes"). The 7% Senior Notes are senior unsecured obligations of Endurance Holdings and rank equally with all of Endurance Holdings' existing and future unsecured and unsubordinated debt. The 7% Senior Notes are also effectively junior to claims of creditors of Endurance Holdings' subsidiaries, including policyholders, trade creditors, debt holders, and taxing authorities.

The indentures governing the 7% Senior Notes contain customary covenants and events of default for senior unsecured indebtedness, including events of default for non-payment of principal or interest, breaches of covenants, insolvency of the Company or a default by the Company under other outstanding indebtedness. The Company was in compliance with all covenants contained within the indentures governing the 7% Senior Notes as of December 31, 2016 and 2015.

6.15% Senior Notes

The Company issued $200.0 million principal amount of 6.15% Senior Notes due 2015 (the "6.15% Senior Notes"). The 6.15% Senior Notes were senior unsecured obligations of Endurance Holdings and ranked equally with all of Endurance Holdings' existing and future unsecured and unsubordinated debt. The 6.15% Senior Notes also were effectively junior to claims of creditors of Endurance Holdings' subsidiaries, including policyholders, trade creditors, debt holders, and taxing authorities. The 6.15% Senior Notes matured on October 15, 2015 and were repaid by the Company on that date.

157

ENDURANCE SPECIALTY HOLDINGS LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in tables expressed in thousands of United States dollars, except

for ratios, share and per share amounts)

8.     Debt and financing arrangements, cont'd.

4.7% Senior Notes

Upon closing of the acquisition of Montpelier, Montpelier, as issuer, Endurance Holdings, as parent guarantor, and The Bank of New York Mellon, as trustee, entered into a Fourth Supplemental Indenture, dated as of July 31, 2015 (the "Fourth Supplemental Indenture"). The Fourth Supplemental Indenture amended the Indenture, dated as of July 15, 2003 (as amended and supplemented from time to time (collectively, the "Senior Notes Supplemental Indentures")) applicable to the 4.7% Senior Unsecured Notes Due 2022 (the "4.7% Senior Notes") originally issued by Montpelier on October 2, 2012 in an aggregate principal amount of $300.0 million. The Senior Notes Supplemental Indentures provided for the unconditional assumption of the due and punctual payment of the principal of, any premium and interest on and any additional amounts with respect to the 4.7% Senior Notes and the performance of every obligation in the Senior Notes Indenture and the 4.7% Senior Notes to be performed or observed. The 4.7% Senior Notes bear a rate of interest equal to 4.7% per annum, payable semi-annually in arrears on April 15 and October 15 each year. The 4.7% Senior Notes mature on October 15, 2022. The 4.7% Senior Notes do not contain any covenants regarding financial ratios or specified levels of net worth or liquidity to which the Company or any of its subsidiaries must adhere but do contain customary covenants and events of default for senior unsecured indebtedness, including events of default for non-payment of principal or interest, breaches of covenants, insolvency of the Company or a default by the Company under other outstanding indebtedness. The Company was in compliance with all covenants contained within the indentures governing the 4.7% Senior Notes as of December 31, 2016 and 2015.

The 4.7% Senior Notes are senior unsecured obligations of Endurance Holdings and rank equally with all of Endurance Holdings' existing and future unsecured and unsubordinated debt. The 4.7% Senior Notes are also effectively junior to claims of creditors of Endurance Holdings' subsidiaries, including policyholders, trade creditors, debt holders, and taxing authorities.

Trust Preferred Securities

Upon closing the acquisition of Montpelier, Montpelier, as issuer, Endurance Holdings, as parent guarantor, and Wilmington Trust Company, as trustee, entered into the Second Supplemental Indenture, dated as of July 31, 2015 (the "Second Supplemental Indenture"). The Second Supplemental Indenture amended the Junior Subordinated Indenture, dated as of January 6, 2006 (as amended and supplemented from time to time (collectively, the "Junior Subordinated Supplemental Indentures")). The Junior Subordinated Supplemental Indentures provided for the express assumption by Endurance Holdings of the due and punctual payment of the principal of and any premium and interest (including any additional interest) on the unsecured junior subordinated deferrable interest notes issued by Montpelier in connection with the issuance of the trust preferred securities (the "Trust Preferred Securities") by MRH Capital Trust III (the "MRH Capital Trust") and the performance of every covenant of the Junior Subordinated Indenture on the part of Montpelier to be performed or observed. The MRH Capital Trust originally issued the Trust Preferred Securities in January 2006 in an aggregate principal amount of $100.0 million. The Trust Preferred Securities mature on March 30, 2036 and bear interest at a floating rate of 3-month LIBOR plus 380 basis points, reset quarterly. The Trust Preferred Securities may be redeemed prior to maturity at a redemption price equal to 100% of the principal amount thereof plus accrued interest, provided that the prior approval of any applicable insurance regulatory authority with respect to such redemption has been received. The Trust Preferred Securities do not contain any covenants regarding financial ratios or specified levels of net worth or liquidity to which the Company or any of its subsidiaries must adhere.

LIBOR Swap

Upon closing of the acquisition of Montpelier, the Company became a party to the LIBOR Swap, which will result in the future net cash flows in connection with the Trust Preferred Securities for the 5-year period beginning March 30, 2012 being the same as if these securities bore interest at a fixed rate of 4.905%, provided the Company holds the LIBOR Swap to its maturity. Net realized and unrealized gains and losses associated with the LIBOR Swap are reported within net realized and unrealized gains on the Company's Consolidated Statements of Income and Comprehensive Income, as opposed to interest expense.

Interest Payments

The Company made aggregate interest payments of $42.7 million during the year ended December 31, 2016 (2015 - $40.5 million; 2014 - $40.4 million).

158

ENDURANCE SPECIALTY HOLDINGS LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in tables expressed in thousands of United States dollars, except

for ratios, share and per share amounts)

8.     Debt and financing arrangements, cont'd.

BCRH Credit Agreement

On May 6, 2016, the Company, through a wholly-owned subsidiary, entered into a credit facility agreement with BCRH (the "BCRH Credit Facility"). The BCRH Credit Facility provides BCRH with an unsecured $20.0 million revolving credit facility for working capital and general corporate purposes and expires on September 30, 2018. Borrowings under the BCRH Credit Facility bear interest, set at the time of the borrowing, at a rate equal to the applicable LIBOR rate plus 150 basis points.  The BCRH Credit Facility contains covenants that limit BCRH's ability, among other things, to grant liens on its assets, sell assets, merge or consolidate, or incur debt.  If BCRH fails to comply with any of these covenants, the Company could terminate the BCRH Credit Facility and exercise remedies against BCRH. In addition, in the event of a default in the performance of any of the agreements or covenants under certain management agreements with BCML by BCRH, the Company has the right to terminate the BCRH Credit Facility. As of December 31, 2016, BCRH had no outstanding borrowings under the BCRH Credit Facility.

BCGR Credit Agreement

On May 16, 2016, the Company, through a wholly-owned subsidiary, entered into a credit facility agreement with BCGR (the "BCGR Credit Facility"). The BCGR Credit Facility provides BCGR with an unsecured $20.0 million revolving credit facility for working capital and general corporate purposes and expires on September 30, 2018. Borrowings under the BCGR Credit Facility bear interest, set at the time of the borrowing, at a rate equal to the applicable LIBOR rate plus 150 basis points.  The BCGR Credit Facility contains covenants that limit BCGR's ability, among other things, to grant liens on its assets, sell assets, merge or consolidate, or incur debt.  If BCGR fails to comply with any of these covenants, the Company could terminate the BCGR Credit Facility and exercise remedies against BCGR. In addition, in the event of a default in the performance of any of the agreements or covenants under certain management agreements with BCML by BCGR, the Company has the right to terminate the BCGR Credit Facility. As of December 31, 2016, BCGR had no outstanding borrowings under the BCGR Credit Facility.

9.     Derivatives

In 2004, prior to the issuance of the 7% Senior Notes, the Company entered into an interest rate lock on a notional amount of $125.0 million to protect against interest rate increases before the anticipated issuance of the Senior Notes. The objective of the interest rate lock was to protect 50% of the forecasted receipt of proceeds from the issuance of the 7% Senior Notes offering, which was subject to change prior to issuance due to fluctuations in the benchmark 30 year U. S. Treasury rate. Upon issuance of the 7% Senior Notes, the interest rate lock was settled through payment by the Company of $2.7 million. The interest rate lock agreement was designated as a "cash flow hedge" under current accounting guidance and accordingly, the fair value of the derivative was recorded in other comprehensive (loss) income and is being recognized as a component of interest expense in the Consolidated Statements of Income and Comprehensive Income as the interest expense related to the 7% Senior Notes affects earnings. The net income effect of the interest rate lock was not material.

159

ENDURANCE SPECIALTY HOLDINGS LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in tables expressed in thousands of United States dollars, except

for ratios, share and per share amounts)

9.     Derivatives, cont'd.

The Company regularly transacts in certain derivative-based weather risk management products primarily to address weather and energy risks on behalf of third parties. The markets for these derivatives are generally linked to energy and agriculture commodities, weather and other natural phenomena. Generally, the Company's current portfolio of such derivative contracts is of short duration and such contracts are predominantly seasonal in nature. The Company also invests a portion of its investments with third party investment managers with investment guidelines that permit the use of derivative instruments. The Company may enter derivative transactions directly or as part of strategies employed by its external investment managers.

None of the Company's derivatives are designated as hedges under current accounting guidance, with the exception of the interest rate lock. The Company's objectives for holding these derivatives are as follows:

Interest Rate Futures, Swaps, Swaptions and Options - to manage exposure to interest rate risk, which can include increasing or decreasing its exposure to this risk through modification of the portfolio composition and duration.

Industry Loss Warranty ("ILW") Swaps - to manage underwriting risk. The Company has entered into ILW swap contracts which provide reinsurance-like protection to the Company for specific loss events associated with certain lines of its business. The Company has also sold ILW protection, which provides reinsurance-like protection to third parties for specific loss events.

Foreign Exchange Forwards, Futures and Options - as part of its overall currency risk management and investment strategies.

Credit Default Swaps - to manage market exposures. The Company may assume or economically hedge credit risk through credit default swaps to replicate or hedge investment positions. The original term of these credit default swaps is generally five years or less.

To-Be-Announced Mortgage-backed Securities (“TBAs”) - to enhance investment performance and as part of the overall investment strategy. TBAs represent commitments to purchase or sell a future issuance of agency mortgage-backed securities. For the period between the purchase of a TBA and issuance of the underlying securities, the Company’s position is accounted for as a derivative.

Energy and Weather Contracts - to address weather and energy risks. The Company may purchase or sell contracts with financial settlements based on the performance of an index linked to a quantifiable weather element, such as temperature, precipitation, snowfall or windspeed, and structures with multiple risk triggers indexed to a quantifiable weather element and a weather sensitive commodity price, such as temperature and electrical power or natural gas. Generally, the Company’s current portfolio of energy and weather derivative contracts is of comparably short duration and such contracts are predominantly seasonal in nature.

LIBOR Swap – to establish future net cash flows in connection with the Trust Preferred Securities for the 5-year period beginning March 30, 2012 as if these securities bore interest at a fixed rate of 4.905%. See Note 8, Debt and financing arrangements.

Loss Development Cover – as part of the sale of Montpelier U.S. Insurance Company ("MUSIC") to Selective Insurance Group, Inc. ("Selective"), Montpelier Reinsurance Ltd. ("Montpelier Re", now Endurance Bermuda) entered into a loss development cover with MUSIC which ensures that MUSIC's reserve for losses and loss expenses relating to retained business written on or prior to December 31, 2011 remains adequate. Under the loss development cover, any future adverse development associated with such retained reserves will be protected by Endurance Bermuda and any future favorable development associated with such retained reserves will benefit Endurance Bermuda.

160

ENDURANCE SPECIALTY HOLDINGS LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in tables expressed in thousands of United States dollars, except

for ratios, share and per share amounts)

9.     Derivatives, cont'd.

The fair values and the related notional values of derivatives at December 31, 2016 and 2015 are noted below.

	December 31, 2016				December 31, 2015
	Fair Value		Notional Principal Amount		Fair Value		Notional Principal Amount
Derivatives recorded in other assets
Foreign exchange forward contracts	$	629	$	34,630	$	425	$	38,818
Credit default swaps	266		5,450		36		4,225
Interest rate swaps	374		7,000		—		—
ILWs	1,010		20,000		—		—
TBAs	121,402		120,300		26,924		25,700
Energy and weather contracts	43,035		101,436		41,507		70,388
Total recorded in other assets	$	166,716			$	68,892
Derivatives recorded in other liabilities
Foreign exchange forward contracts	$	1,204	$	32,080	$	372	$	30,400
Credit default swaps	21		2,744		276		7,800
Interest rate swaps	59		1,100		7		42,000
Interest rate swaptions	34		5,400		—		—
Interest rate futures	—		—		8		54,488
ILWs	184		14,209		259		19,500
LIBOR swap	27		100,000		233		100,000
TBAs	50,704		50,400		—		—
Loss development cover	2,818		24,451		2,904		22,322
Energy and weather contracts	29,018		162,900		42,029		148,325
Total recorded in other liabilities	$	84,069			$	46,088
Net derivative asset	$	82,647			$	22,804

At December 31, 2016, derivative assets of $166.7 million (December 31, 2015 - $68.9 million) and liabilities of $84.1 million (December 31, 2015 - $46.1 million) were subject to master netting agreements, which provide for the ability to settle the derivative asset and liability with each counterparty on a net basis. Interest rate futures are not subject to master netting agreements. At December 31, 2016 and 2015, the Company's derivative instruments were recorded on a gross basis in the Consolidated Balance Sheets.

At December 31, 2016, the Company held no reverse repurchase agreements (December 31, 2015 - $30.0 million). These loans are fully collateralized, are generally outstanding for a short period of time and are presented as part of cash and cash equivalents in the Consolidated Balance Sheets. The required collateral for these loans is either cash or U.S. treasury securities at a minimum rate of 102% of the loan principal. Upon maturity, the Company receives principal and interest income.

161

ENDURANCE SPECIALTY HOLDINGS LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in tables expressed in thousands of United States dollars, except

for ratios, share and per share amounts)

9.     Derivatives, cont'd.

The gains and losses on the Consolidated Statements of Income and Comprehensive Income for derivatives for the years ended December 31, 2016, 2015 and 2014 were as follows:

	2016			2015			2014
Total gain included in net foreign exchange (gains) losses from foreign exchange forward contracts	$	516		$	2,095		$	1,880
Interest rate futures	(160		)	79			121
Credit default swaps	7			(50		)	30
Interest rate swaps	124			(915		)	(4,239		)
Interest rate swaptions	(20		)	56			477
ILWs	(1,675		)	(326		)	—
LIBOR swap	206			332			—
TBAs	(662		)	496			3,938
Total (losses) gains included in net realized and unrealized (losses) gains	(2,180		)	(328		)	327
Energy and weather contracts	4,835			2,281			(315		)
Loss development cover	(2,129		)	(1,419		)	—
Total gain (loss) included in other underwriting loss	2,706			862			(315		)
Total gains from derivatives	$	1,042		$	2,629		$	1,892

10.     Segment reporting

The determination of the Company's business segments is based on how the Company monitors the performance of its underwriting operations. The Company has two reportable business segments, Insurance and Reinsurance.

• Insurance – This segment is comprised of four lines of business: agriculture, casualty and other specialty, professional lines, and property, marine/energy and aviation. The agriculture line of business is comprised of multi-peril crop insurance, crop hail, livestock risk protection and other agriculture risk management products. The casualty and other specialty line of business is comprised of the insurance and facultative reinsurance of third party liability exposures, including casualty and healthcare liability. The professional line of business includes directors' and officers' liability, errors and omissions, employment practices liability, environmental liability and pension trust liability insurance. The property, marine/energy and aviation line of business is comprised of the insurance and facultative reinsurance of commercial properties, inland marine and ocean marine insurance, energy insurance, and general liability and property coverages for a wide range of general aviation risks.

• Reinsurance – This segment is comprised of five lines of business: catastrophe, property, casualty, professional lines, and specialty. The catastrophe line of business includes reinsurance for catastrophic perils on a treaty basis. The property line of business includes proportional and excess of loss reinsurance of personal and commercial exposures. The casualty line of business is comprised of third party liability exposures, clash and workers' compensation coverages. The professional line of business includes directors' and officers' liability, errors and omissions, employment practices liability, environmental liability and pension trust liability reinsurance. The specialty line of business includes the reinsurance of aviation and space business and proportional and non-proportional reinsurance of hull and cargo insurance business, and proportional and excess of loss coverages of contract and commercial surety business, personal accident coverages, political risk coverages, weather risk management products and agriculture coverages for weather related perils as well as protection from yield and price risks.

162

ENDURANCE SPECIALTY HOLDINGS LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in tables expressed in thousands of United States dollars, except

for ratios, share and per share amounts)

10.     Segment reporting, cont'd.

Management measures Insurance and Reinsurance segment results on the basis of the combined ratio, which is obtained by dividing the sum of the net losses and loss expenses, acquisition expenses and general and administrative expenses by net premiums earned. When purchased within a single line of business, ceded reinsurance and recoveries are accounted for within that line of business. When purchased across multiple lines of business, ceded reinsurance and recoveries are allocated to the lines of business in proportion to the related risks assumed. The Company does not manage its assets by segment; accordingly, investment income and total assets are not allocated to the individual business segments. General and administrative expenses incurred by segments are allocated directly. Remaining general and administrative expenses not incurred by the segments are classified as corporate expenses and are not allocated to the individual business segments. Ceded reinsurance and recoveries are recorded within the business segment to which they apply.

The underwriting results of Montpelier are included in the Company's segment results from August 1, 2015.

The following table provides a summary of the segment revenues and results for the year ended December 31, 2016, reserve for losses and loss expenses as of December 31, 2016 and the carrying value of goodwill as of December 31, 2016:

	Insurance			Reinsurance			Total
Revenues
Gross premiums written	$	2,570,494		$	1,631,676		$	4,202,170
Ceded premiums written	(1,514,240		)	(317,995		)	(1,832,235		)
Net premiums written	1,056,254			1,313,681			2,369,935
Net premiums earned	1,009,375			1,354,285			2,363,660
Other underwriting loss	—			(909		)	(909		)
	1,009,375			1,353,376			2,362,751
Expenses
Net losses and loss expenses	684,178			636,874			1,321,052
Acquisition expenses	149,763			310,720			460,483
General and administrative expenses	140,742			107,404			248,146
	974,683			1,054,998			2,029,681
Underwriting income	$	34,692		$	298,378		333,070
Net investment income							176,590
Corporate expenses							(51,706		)
Net foreign exchange gains							74,684
Net realized and unrealized losses							(12,419		)
Net impairment losses recognized in earnings							(10,769		)
Amortization of intangibles							(84,624		)
Interest expense							(43,860		)
Income before income taxes							$	380,966
Net loss ratio	67.9		%	47.1		%	55.9		%
Acquisition expense ratio	14.8		%	22.9		%	19.5		%
General and administrative expense ratio	13.9		%	7.9		%	12.7		%	(1)
Combined ratio	96.6		%	77.9		%	88.1		%
Reserve for losses and loss expenses	$	2,798,989		$	2,106,149		$	4,905,138
Goodwill	$	83,550		$	91,932		$	175,482

(1) Total general and administrative expense ratio includes general and administrative expenses and corporate expenses.

163

ENDURANCE SPECIALTY HOLDINGS LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in tables expressed in thousands of United States dollars, except

for ratios, share and per share amounts)

10.     Segment reporting, cont'd.

The following table provides a summary of the segment revenues and results for the year ended December 31, 2015, reserve for losses and loss expenses as of December 31, 2015 and the carrying value of goodwill as of December 31, 2015:

	Insurance			Reinsurance			Total
Revenues
Gross premiums written	$	2,085,901		$	1,234,960		$	3,320,861
Ceded premiums written	(1,205,528		)	(164,863		)	(1,370,391		)
Net premiums written	880,373			1,070,097			1,950,470
Net premiums earned	824,552			1,153,901			1,978,453
Other underwriting loss	—			(3,694		)	(3,694		)
	824,552			1,150,207			1,974,759
Expenses
Net losses and loss expenses	500,867			416,241			917,108
Acquisition expenses	80,252			267,633			347,885
General and administrative expenses	140,012			119,779			259,791
	721,131			803,653			1,524,784
Underwriting income	$	103,421		$	346,554		449,975
Net investment income							113,826
Corporate expenses							(114,429		)
Net foreign exchange losses							(26,964		)
Net realized and unrealized gains							12,660
Net impairment losses recognized in earnings							(3,715		)
Amortization of intangibles							(30,620		)
Interest expense							(41,260		)
Income before income taxes							$	359,473
Net loss ratio	60.8		%	36.0		%	46.4		%
Acquisition expense ratio	9.7		%	23.2		%	17.6		%
General and administrative expense ratio	17.0		%	10.4		%	18.9		%	(1)
Combined ratio	87.5		%	69.6		%	82.9		%
Reserve for losses and loss expenses	$	2,493,894		$	2,016,521		$	4,510,415
Goodwill	$	84,525		$	91,930		$	176,455

(1) Total general and administrative expense ratio includes general and administrative expenses and corporate expenses.

164

ENDURANCE SPECIALTY HOLDINGS LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in tables expressed in thousands of United States dollars, except

for ratios, share and per share amounts)

10.     Segment reporting, cont'd.

The following table provides a summary of the segment revenues and results for the year ended December 31, 2014, reserve for losses and loss expenses as of December 31, 2014 and the carrying value of goodwill as of December 31, 2014:

	Insurance			Reinsurance			Total
Revenues
Gross premiums written	$	1,716,128		$	1,177,948		$	2,894,076
Ceded premiums written	(855,722		)	(104,148		)	(959,870		)
Net premiums written	860,406			1,073,800			1,934,206
Net premiums earned	833,912			1,030,066			1,863,978
Other underwriting loss	—			(5,786		)	(5,786		)
	833,912			1,024,280			1,858,192
Expenses
Net losses and loss expenses	594,561			375,601			970,162
Acquisition expenses	65,368			254,145			319,513
General and administrative expenses	148,475			98,912			247,387
	808,404			728,658			1,537,062
Underwriting income	$	25,508		$	295,622		321,130
Net investment income							131,543
Corporate expenses							(66,200		)
Net foreign exchange losses							(3,839		)
Net realized and unrealized gains							14,283
Net impairment losses recognized in earnings							(625		)
Amortization of intangibles							(6,484		)
Interest expense							(40,968		)
Income before income taxes							$	348,840
Net loss ratio	71.4		%	36.4		%	52.1		%
Acquisition expense ratio	7.8		%	24.7		%	17.1		%
General and administrative expense ratio	17.7		%	9.6		%	16.8		%	(1)
Combined ratio	96.9		%	70.7		%	86.0		%
Reserve for losses and loss expenses	$	2,123,772		$	1,723,087		$	3,846,859
Goodwill	$	47,925		$	43,313		$	91,238

(1) Total general and administrative expense ratio includes general and administrative expenses and corporate expenses.

165

ENDURANCE SPECIALTY HOLDINGS LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in tables expressed in thousands of United States dollars, except

for ratios, share and per share amounts)

10.     Segment reporting, cont'd.

The following table provides gross premiums written by line of business for the years ended December 31, 2016, 2015 and 2014:

Business Segment	2016		2015		2014
Insurance
Agriculture	$	760,877	$	840,445	$	866,025
Casualty and other specialty	657,558		514,203		396,113
Professional lines	461,552		344,482		263,538
Property, marine/energy and aviation	690,507		386,771		190,452
Total Insurance	2,570,494		2,085,901		1,716,128
Reinsurance
Catastrophe	506,300		311,914		343,213
Property	250,447		209,392		287,326
Casualty	245,092		176,506		159,533
Professional lines	256,337		248,610		174,656
Specialty	373,500		288,538		213,220
Total Reinsurance	1,631,676		1,234,960		1,177,948
Total	$	4,202,170	$	3,320,861	$	2,894,076

The following table provides the geographic distribution of gross premiums written for the years ended December 31, 2016, 2015 and 2014:

	2016		2015		2014
United States	$	2,823,950	$	2,305,301	$	2,054,431
Worldwide	794,289		566,664		456,078
Europe	265,100		209,729		172,077
Asia	105,838		75,165		38,442
Japan	82,864		58,524		45,618
Australasia	49,727		41,309		61,994
Other	80,402		64,169		65,436
Total	$	4,202,170	$	3,320,861	$	2,894,076

The Company attributes gross premiums written to the geographic region in which the risks originate.

166

ENDURANCE SPECIALTY HOLDINGS LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in tables expressed in thousands of United States dollars, except

for ratios, share and per share amounts)

11.     Goodwill and intangible assets

The following table shows an analysis of goodwill and intangible assets for the years ended December 31, 2016 and 2015:

	Goodwill			Intangible assets with indefinite lives			Intangible assets with finite lives			Total
Net balance at December 31, 2014	$	91,238		$	11,779		$	50,388		$	153,405
Additions(1)	87,367			57,600			293,218			438,185
Amortization	—			—			(30,620		)	(30,620		)
Foreign currency translation	(2,150		)	(2,738		)	(2,122		)	(7,010		)
Net balance at December 31, 2015	$	176,455		$	66,641		$	310,864		$	553,960
Additions	(973		)	—			11			(962		)
Amortization	—			—			(84,624		)	(84,624		)
Net balance at December 31, 2016	$	175,482		$	66,641		$	226,251		$	468,374
Gross balance	$	177,632		$	74,829		$	431,271		$	683,732
Accumulated amortization	—			—			(202,898		)	(202,898		)
Accumulated impairment losses	—			(5,450		)	—			(5,450		)
Accumulated foreign currency translation	(2,150		)	(2,738		)	(2,122		)	(7,010		)
Net balance	$	175,482		$	66,641		$	226,251		$	468,374

(1) For additional information on the intangible assets acquired during 2015, see Note 3, Acquisition of Montpelier.

For the years ended December 31, 2016 and 2015, a valuation analysis was performed to determine the fair value of the Company's intangible assets with indefinite lives which showed that none of the Company's intangible assets were impaired.

No impairment of the Company's goodwill asset was noted following the annual impairment reviews during the years ended December 31, 2016 and 2015. The Company expects the amortization of the intangible assets with finite lives to approximate $63.7 million in 2017, $37.7 million in 2018, $27.5 million in 2019, $22.8 million in 2020, $21.6 million in 2021 and $53.0 million in all years thereafter.

12.     Commitments and contingencies

Concentrations of credit risk. The areas where significant concentrations of credit risk may exist include reinsurance recoverables, investments and cash and cash equivalents. The Company's reinsurance recoverables on paid and unpaid losses at December 31, 2016 and 2015 amounted to $1,486.9 million and $1,196.0 million, respectively, and resulted from reinsurance arrangements entered into in the normal course of operations. A credit exposure exists with respect to reinsurance recoverables as they may become uncollectible. The Company manages its credit risk in its reinsurance relationships by transacting with reinsurers that it considers financially sound and, if necessary, the Company may hold collateral in the form of cash, trust accounts and/or irrevocable letters of credit. This collateral can be drawn on for amounts that remain unpaid beyond specified time periods on an individual reinsurer basis. As of December 31, 2016, $1,293.3 million of reinsurance recoverable on paid and unpaid losses (2015 - $941.5 million) was due from reinsurers rated A- or better by A.M. Best or S&P. An additional $141.4 million (2015-$234.6 million) of reinsurance recoverable on paid and unpaid losses was due from a U.S. government sponsored reinsurance program as of December 31, 2016. At December 31, 2016 and 2015, the Company held collateral of $493.3 million and $321.5 million, respectively, related to its ceded reinsurance agreements.

As of December 31, 2016, substantially all the Company's cash and investments were held by six custodians.

The Company's investment guidelines limit the amount of credit exposure to any one issuer other than the U.S. Treasury and certain other foreign government obligations rated AAA.

167

ENDURANCE SPECIALTY HOLDINGS LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in tables expressed in thousands of United States dollars, except

for ratios, share and per share amounts)

12.     Commitments and contingencies, cont'd.

Major production sources. The following table shows the percentage of gross premiums written generated through the Company's largest brokers for the years ended December 31, 2016, 2015 and 2014:

Broker	2016		2015		2014
Marsh & McLennan Companies, Inc.	20.9	%	19.8	%	19.1	%
Aon Benfield	14.3	%	12.8	%	13.2	%
Willis Companies	8.9	%	9.2	%	10.6	%
Total of largest brokers	44.1	%	41.8	%	42.9	%

Letters of credit. As of December 31, 2016, the Company had issued letters of credit of $222.3 million (2015 - $341.6 million) under its credit facilities and letter of credit reimbursement agreements in favor of certain ceding companies to collateralize obligations.

Investment commitments. As of December 31, 2016 and 2015, the Company had pledged cash and cash equivalents and fixed maturity investments of $106.8 million and $108.9 million, respectively, in favor of certain ceding companies to collateralize obligations. As of December 31, 2016 and 2015, the Company had also pledged $252.2 million and $383.3 million of its cash and fixed maturity investments as required to meet collateral obligations for $222.3 million and $341.6 million in secured letters of credit outstanding under its credit facilities, respectively. In addition, at December 31, 2016 and 2015, cash and fixed maturity investments with fair values of $207.8 million and $208.3 million were on deposit with U.S. state regulators, respectively.

The Company is subject to certain commitments with respect to other investments at December 31, 2016 and 2015. See Note 4, Investments.

Investment assets held in trust. Blue Water Re and Blue Water Re II do not operate with a financial strength rating and, instead, fully collateralizes their reinsurance obligations through cash and cash equivalents held in trust funds established by Blue Water Re and Blue Water Re II (the "Blue Water Trusts") for the benefit of ceding companies. As of December 31, 2016, the fair value of assets held in the Blue Water Trusts was $427.8 million (2015 - $438.9 million), which met the minimum values required on that date.

As of December 31, 2016, Blue Capital Re had pledged $191.4 million (2015- $195.3 million) of its cash and cash equivalents to trust accounts established for the benefit of Blue Water Re.

Blue Capital Re ILS fully collateralizes its insurance-linked security obligations through cash and cash equivalents held in trust funds established by Blue Capital Re ILS (the "Blue Capital Re ILS Trusts") for the benefit of third parties. As of December 31, 2016, the fair value of assets held in the Blue Capital Re ILS Trusts was $3.3 million (2015 - $5.2 million), which met the minimum value required on that date.

During 2015, Endurance Bermuda established a multi-beneficiary reinsurance trust (the "Endurance Reinsurance Trust") domiciled in Delaware. The Endurance Reinsurance Trust was established as a means of providing statutory credit to Endurance Bermuda's U.S. cedants. As of December 31, 2016, the fair value of the assets held in the Endurance Reinsurance Trust exceeded $783.9 million (2015 - $94.1 million), the minimum value required on that date.

During 2015, Endurance Bermuda also established a second multi-beneficiary reinsurance trust (the "Reduced Collateral Trust") domiciled in Delaware. The Reduced Collateral Trust was established as a means of providing statutory credit to Endurance Bermuda's U.S. cedants in connection with a reduction in collateral requirements in certain states. As of December 31, 2016, the fair value of the assets held in the Reduced Collateral Trust exceeded $16.4 million (2015 - $10.8 million), the minimum value required on that date.

Endurance Bermuda is party to a reinsurance trust (the "MUSIC Trust"). The MUSIC Trust was established as a means of providing statutory credit to MUSIC in support of the business retained in connection with the 2011 sale by Montpelier of MUSIC to Selective. As of December 31, 2016, the fair value of the assets held in the MUSIC Trust was $24.6 million (2015 - $21.3 million), the minimum value required on that date.

168

ENDURANCE SPECIALTY HOLDINGS LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in tables expressed in thousands of United States dollars, except

for ratios, share and per share amounts)

12.     Commitments and contingencies, cont'd.

Endurance Bermuda is party to a multi-beneficiary Reinsurance Trust originally established by Montpelier Re (the "Montpelier Reinsurance Trust") domiciled in New York. The Montpelier Reinsurance Trust was established as a means of providing statutory credit to Montpelier Re's U.S. cedants. Endurance Bermuda is also party to a multi-beneficiary reinsurance trust originally established by Montpelier Re (the "FL Trust") in connection with a reduction in its Florida collateral requirements. With the consent of the New York Department of Financial Services, all assets in excess of the statutory minimum required amounts in the Montpelier Reinsurance Trust and the FL Trust were transferred to the Endurance Reinsurance Trust and the Reduced Collateral Trust, respectively, upon the merger of Montpelier Re with and into Endurance Bermuda, with Endurance Bermuda as the surviving entity, on December 29, 2015.

The Company is party to a Lloyd's Deposit Trust Deed (the "Lloyd's Capital Trust") in order to meet Endurance Corporate Capital Limited ("ECCL")'s ongoing funds at Lloyd's ("FAL") requirements. The minimum value of cash and investments held by the Lloyd’s Capital Trust is determined on the basis of ECCL's Individual Capital Assessment, which is used to determine the required amount of FAL. As of December 31, 2016, the fair value of assets held in the Lloyd's Capital Trust was $323.6 million (2015- $276.8 million), which met the minimum value required on that date.

Premiums received by Syndicate 5151 are required to be received into the Lloyd's Premiums Trust Funds (the "Premiums Trust Funds"). Under the Premiums Trust Funds' deeds, assets may only be used for the payment of claims and valid expenses for a stated period of time. As of December 31, 2016, the fair value of assets held in the Premiums Trust Funds was $184.1 million (2015- $231.9 million).

The Company's investment assets held in trust appear on the Company's Consolidated Balance Sheets as cash and cash equivalents, fixed maturity investments. short-term investments and accrued investment income, as appropriate.

Lloyd's New Central Fund. The Lloyd's New Central Fund is available to satisfy claims if a member of Lloyd's is unable to meet its obligations to policyholders. The Lloyd's New Central Fund is funded by an annual levy imposed on members, which is determined annually by Lloyd's as a percentage of each member's gross written premiums (0.35% with respect to 2016 and 0.50% for 2015). In addition, the Council of Lloyd's has power to call on members to make an additional contribution to the Lloyd's New Central Fund of up to 3% of their underwriting capacity each year should it decide that such additional contributions are necessary. The Company currently estimates that its 2016 obligation to the Lloyd's New Central Fund will be approximately $1.1 million (2015- $1.0 million) and accrues for this obligation ratably throughout the year on a quarterly basis.

Lloyd's also imposes other charges on its members and the syndicates on which they participate, including an annual subscription charge (0.45% of gross written premiums with respect to 2016 and 0.50% for 2015) and an overseas business charge, levied as a percentage of gross international premiums (defined as business outside the U.K. and the Channel Islands), with the percentage depending on the type of business written. Lloyd's also has power to impose additional charges under Lloyd's Powers of Charging Byelaw. The Company currently estimates that its 2016 obligation to Lloyd's for such charges will be approximately $1.4 million (2015- $1.0 million) and accrues for this obligation ratably throughout the year on a quarterly basis.

Reinsurance commitments. In the ordinary course of business, the Company enters into reinsurance agreements that may include terms which could require the Company to collateralize certain of its obligations.

Employment agreements. The Company has entered into employment agreements with certain officers that provide for equity incentive awards, executive benefits and severance payments under certain circumstances.

169

ENDURANCE SPECIALTY HOLDINGS LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in tables expressed in thousands of United States dollars, except

for ratios, share and per share amounts)

12.     Commitments and contingencies, cont'd.

Operating leases. The Company leases office space and office equipment under operating leases. Future minimum lease commitments at December 31, 2016 are as follows:

Year ending December 31,	Amount
2017	$	15,895
2018	19,945
2019	22,420
2020	21,060
2021	19,099
2022 and thereafter	103,443
	$	201,862

Total lease expense under operating leases for the year ended December 31, 2016 was $12.8 million (2015 - $16.5 million; 2014 - $14.7 million). Total sublease income included in total lease expense under operating leases for the year ended December 31, 2016 was $0.4 million (2015 - $1.3 million; 2014 - $1.3 million).

Legal Proceedings. The Company is party to various legal proceedings generally arising in the normal course of its business. While any proceeding contains an element of uncertainty, the Company does not believe that the eventual outcome of any litigation or arbitration proceeding to which it is presently a party could have a material adverse effect on its financial condition, results of operations or business. Pursuant to the Company's insurance and reinsurance agreements, disputes are generally required to be finally settled by arbitration.

13.     Shareholders' equity

The Company’s share capital at December 31, 2016 and 2015 is comprised as follows:

	2016	2015
Preferred shares
Authorized – $1.00 par value each	9,200	9,209,200
Issued, outstanding and fully paid:
Series B preferred shares - $1.00 par value each; aggregate liquidation preference nil (2015 - $230,000)	—	9,200,000
Series C preferred shares – $1.00 par value each; aggregate liquidation preference $230,000 (2015 - $230,000)	9,200	9,200
	9,200	9,209,200
Common shares
Authorized - $1.00 par value each	120,000,000	120,000,000
Issued, outstanding and fully paid:
Ordinary common shares - $1.00 par value each	67,627,901	66,797,991

During 2016, the Company issued restricted shares under its equity compensation plans (Note 16, Stock-based employee compensation and other stock plans). The common shares issued, outstanding and fully paid for at December 31, 2016 includes 1,396,538 restricted shares.

On June 1, 2011, Endurance Holdings issued 9,200,000 shares of its 7.5% Non-Cumulative Preferred Shares, Series B (the "Series B Preferred Shares"). Endurance Holdings received net proceeds of $224.0 million from its offering of Series B Preferred Shares, after expenses and underwriting discounts. The proceeds from the Series B Preferred Shares were used to provide additional capital to Endurance Holdings' subsidiaries and for other general corporate purposes.

170

ENDURANCE SPECIALTY HOLDINGS LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in tables expressed in thousands of United States dollars, except

for ratios, share and per share amounts)

13.     Shareholders' equity, cont'd.

On November 24, 2015, Endurance Holdings issued 9,200 shares of its 6.35% Non-Cumulative Preferred Shares, Series C (the "Series C Preferred Shares") (equivalent to 9,200,000 Depositary Shares), each of which represents a 1/1,000th interest in a Series C Preferred Share, $1.00 par value and $25,000.00 liquidation preference per share (equivalent to $25.00 per Depositary Share). The Series C Preferred Shares sold were registered under the Securities Act of 1933, as amended. The Series C Preferred Shares were issued at a price to the public of $25,000.00 per share (equivalent to $25.00 per Depositary Share). Endurance Holdings received net proceeds of $222.0 million from its offering of Series C Preferred Shares, after expenses and underwriting discounts. The proceeds of the offering of Series C Preferred Shares were used to redeem on December 24, 2015 all 8,000,000 of Endurance Holdings' outstanding 7.75% Non-Cumulative Preferred Shares, Series A and for general corporate purposes.

On June 1, 2016, Endurance Holdings redeemed all 9,200,000 of its Series B Preferred Shares. The Series B Preferred shares were redeemed at a redemption price of $25.00 per share together with an amount equal to any dividends that were declared but not paid prior to June 1, 2016.

The Series C Preferred shares are traded on the New York Stock Exchange. The Series C Preferred Shares have no stated maturity date and are redeemable in whole or in part at the option of Endurance Holdings any time after December 15, 2020 at a redemption price of $25,000.00 per Series C Preferred Share (equivalent to $25.00 per Depositary Share), plus any declared and unpaid dividends, without accumulation of any undeclared dividends. Endurance Holdings may redeem all but not less than all of the Series C Preferred Shares before the redemption date at a redemption price of $26,000.00 per Series C Preferred Share (equivalent to $26.00 per Depositary Share), plus any declared and unpaid dividends to the date of redemption, if Endurance Holdings is required to submit a proposal to the holders of the Series C Preferred Shares concerning an amalgamation, consolidation, merger, similar corporate transaction, change in Bermuda law or other matter that requires the vote of the holders of the Series C Preferred Shares voting separately as a single class.

Dividends on the Series C Preferred Shares, when, as and if declared by the Board of Directors of Endurance Holdings or a duly authorized committee of the board, accrue and are payable on the liquidation preference amount from the original issue date, quarterly in arrears on each dividend payment date, at an annual rate of 6.35%. Dividends on the Series C Preferred Shares are not cumulative.

Upon any voluntary or involuntary liquidation, dissolution or winding-up of Endurance Holdings, holders of the Series C Preferred Shares and any parity shares are entitled to receive out of Endurance Holdings' assets available for distribution to shareholders, before any distribution is made to holders of Endurance Holdings' common equity securities, a liquidating distribution in the amount of $25,000.00 per Series C Preferred Share (equivalent to $25.00 per Depositary Share), plus any declared and unpaid dividends, without accumulation of any undeclared dividends. Distributions will be made pro rata as to the Series C Preferred Shares and any parity shares and only to the extent of Endurance Holdings' assets, if any, that are available after satisfaction of all liabilities to creditors.

Holders of the Series C Preferred Shares have no voting rights, except with respect to certain dividend non-payments or as otherwise required by Bermuda law or Endurance Holdings' bye-laws.On February 25, 2016, the Company's Board of Directors authorized the repurchase of up to 5.0 million ordinary shares and share equivalents through February 28, 2018. This authorization superseded previous authorizations. No common shares were repurchased by the Company during 2016 or 2015. Common shares repurchased by the Company are not canceled and are classified as treasury shares. The Company's treasury shares are recorded at cost as a reduction in common shares and additional paid-in capital within shareholders' equity. There were 5.0 million shares authorized for repurchase remaining at December 31, 2016 (2015 - 5.0 million).

171

ENDURANCE SPECIALTY HOLDINGS LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in tables expressed in thousands of United States dollars, except

for ratios, share and per share amounts)

13.     Shareholders' equity, cont'd.

Accumulated other comprehensive loss

The following table presents the changes in accumulated other comprehensive (loss) income balances by component for the years ended December 31, 2016 and 2015:

	For the Year Ended December 31, 2016
	Losses on cash flow hedges			Unrealized (losses) gains on available for sale securities			Foreign currency translation  adjustments			Total
Beginning balance	$	(1,678	)	$	(12,638	)	$	(32,318	)	$	(46,634	)
Other comprehensive (loss) income before reclassifications	—			54,287			(86,324		)	(32,037		)
Amounts reclassified from accumulated other comprehensive loss (1)	88			19,834			—			19,922
Net current period other comprehensive loss	88			74,121			(86,324		)	(12,115		)
Ending balance	$	(1,590	)	$	61,483		$	(118,642	)	$	(58,749	)

(1) All amounts are net of tax.

	For the Year Ended December 31, 2015
	Losses on cash flow hedges			Unrealized (losses) gains on available for sale securities			Foreign currency translation  adjustments			Total
Beginning balance	$	(1,766	)	$	86,100		$	(7,628	)	$	76,706
Other comprehensive (loss) income before reclassifications	—			(65,941		)	(24,690		)	(90,631		)
Amounts reclassified from accumulated other comprehensive loss(1)	88			(32,797		)	—			(32,709		)
Net current period other comprehensive loss	88			(98,738		)	(24,690		)	(123,340		)
Ending balance	$	(1,678	)	$	(12,638	)	$	(32,318	)	$	(46,634	)

(1) All amounts are net of tax.

172

ENDURANCE SPECIALTY HOLDINGS LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in tables expressed in thousands of United States dollars, except

for ratios, share and per share amounts)

13.     Shareholders' equity, cont'd.

The following tables present the significant items reclassified out of accumulated other comprehensive loss during the years ended December 31, 2016 and 2015:

For the Year Ended December 31, 2016
Details about accumulated other comprehensive loss components	Amount reclassified from accumulated other comprehensive loss		Affected line item in the Consolidated Statements of Income and Comprehensive Income
Losses on cash flow hedges - Debt	$	88	Interest expense
	88		Total before income taxes
	—		Income tax expense
	$	88	Total net of income taxes
Unrealized holding losses (gains) on available for sale securities	$	7,984	Net realized and unrealized (losses) gains
	10,769		Net impairment losses recognized in earnings
	18,753		Total before income taxes
	1,081		Income tax expense
	$	19,834	Total net of income taxes

For the Year Ended December 31, 2015
Details about accumulated other comprehensive loss components	Amount reclassified from accumulated other comprehensive loss			Affected line item in the Consolidated Statements of Income and Comprehensive Income
Losses on cash flow hedges - Debt	$	88		Interest expense
	88			Total before income taxes
	—			Income tax expense
	$	88		Total net of income taxes
Unrealized holding losses (gains) on available for sale securities	$	(37,245	)	Net realized and unrealized (losses) gains
	3,715			Net impairment losses recognized in earnings
	(33,530		)	Total before income taxes
	733			Income tax benefit
	$	(32,797	)	Total net of income taxes

173

ENDURANCE SPECIALTY HOLDINGS LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in tables expressed in thousands of United States dollars, except

for ratios, share and per share amounts)

14.     Earnings per share

The following table sets forth the computation of basic and diluted earnings per share for the years ended December 31, 2016, 2015 and 2014:

	2016			2015			2014
Numerator:
Net income available to common and participating common shareholders	$	333,218		$	311,345		$	315,700
Less amount allocated to participating common shareholders (1)	(6,973		)	(8,749		)	(9,118		)
Net income allocated to common shareholders	$	326,245		$	302,596		$	306,582
Denominator:
Weighted average shares - basic	65,991,947			52,707,390			43,368,062
Share equivalents:
Options	65,351			118,392			47,111
Restricted shares and restricted share units	78,075			2,721			70
Weighted average shares - diluted	66,135,373			52,828,503			43,415,243
Basic earnings per common share	$	4.94		$	5.74		$	7.07
Diluted earnings per common share	$	4.93		$	5.73		$	7.06

(1) Represents earnings and dividends attributable to holders of unvested restricted shares and restricted share units issued under the Company's stock compensation plans that are considered participating. In periods of loss, no losses are allocated to participating common shareholders (unvested restricted shares and restricted share units).

The following table sets forth dividends declared in the years ended December 31, 2016, 2015 and 2014, respectively:

	2016		2015		2014
Dividends declared per Series A preferred share	$	—	$	1.9375	$	1.9375
Dividends declared per Series B preferred share	$	0.8646	$	1.8750	$	1.8750
Dividends declared per Series C preferred share	$	1,680.10	$	—	$	—
Dividends declared per common share	$	1.52	$	1.40	$	1.36

On June 1, 2016, Endurance Holdings redeemed all 9,200,000 of its Series B Preferred Shares. The Series B Preferred shares were redeemed at a redemption price of $25.00 per share together with an amount equal to any dividends that were declared but not paid prior to June 1, 2016.

15.     Related party transactions

Fidelity

Fidelity Institutional Asset Management, a subsidiary of FMR, LLC ("Fidelity"), provides investment management services to the Company. Fidelity and its affiliates previously owned greater than 5% of Endurance Holdings' ordinary shares outstanding and was considered a related party. At December 31, 2016 Fidelity and its affiliates were no longer considered a related party as Fidelity's share ownership was less than 5%.

BlackRock

Since 2002, subsidiaries of BlackRock Inc. ("BlackRock") have provided the Company and certain of its subsidiaries with various investment management, investment accounting and risk analysis services. BlackRock owned approximately 4.9 million or 7.3% of Endurance Holdings' ordinary shares outstanding at December 31, 2016 and were therefore considered a related party. The Company incurred expenses totaling $4.6 million (2015: $3.6 million; 2014: $3.2 million) for the year ended December 31, 2016 in relation to investment services rendered by BlackRock, of which $2.8 million was accrued at December 31, 2016 (December 31, 2015: $1.6 million).

174

ENDURANCE SPECIALTY HOLDINGS LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in tables expressed in thousands of United States dollars, except

for ratios, share and per share amounts)

16.     Stock-based employee compensation and other stock plans

At its meeting on February 28, 2007, the Company's Board of Directors adopted the 2007 Equity Incentive Plan ("2007 Plan") to allow for the issuance of equity incentives to non-employee directors of the Company and eligible employees of the Company and its subsidiaries. The 2007 Plan was approved by the Company's shareholders at the Annual General Meeting of Shareholders held on May 9, 2007. At that time, the Company's existing Amended and Restated 2002 Stock Option Plan and the Amended and Restated 2003 Non-Employee Director Incentive Plan were merged into the new 2007 Plan.

The 2007 Plan allows the Company to grant to employees and non-employee directors restricted shares, restricted share units, stock appreciation rights, share bonuses, options to purchase the Company's ordinary shares and other forms of equity incentive awards, as determined by the Compensation Committee of the Company's Board of Directors.

Under the terms of the 2007 Plan as amended, and after the consolidation of the Company's previous plans, a total of 2,100,000 ordinary shares were reserved for issuance. At a meeting on February 11, 2010, the Company's Board of Directors adopted a resolution to add 1,795,000 ordinary shares to the 2007 Plan, which was subsequently approved by the Company's shareholders at the Annual General Meeting of Shareholders held on May 13, 2010.

Upon the acquisition of Montpelier, each Montpelier restricted share unit (including any restricted share units held by an executive officer or non-employee director) that was outstanding immediately prior to the completion of the acquisition of Montpelier subject solely to service-based vesting requirements (a "Montpelier Fixed RSU") was converted into a service-based restricted share unit under the 2007 Plan as amended, on the same terms and conditions as were applicable to such Montpelier Fixed RSU immediately prior to the completion of the acquisition of Montpelier. The number of service-based restricted share units granted was equal to the product of (i) 0.472, the exchange ratio in the Merger Agreement and (ii) the number of Montpelier common shares that were subject to such Montpelier Fixed RSU immediately prior to the completion of the acquisition.

Upon completion of the acquisition of Montpelier, the number of Montpelier restricted share units that were outstanding immediately prior to the completion of the acquisition of Montpelier that were not Montpelier Fixed RSUs ("Montpelier Variable RSUs") was equal to the greater of:

(i) the number of Montpelier Variable RSUs determined by using Montpelier’s actual performance as of the last completed quarter prior to the completion of the acquisition of Montpelier, as determined by the Compensation and Nominating Committee of the Montpelier board of directors prior to the completion of the acquisition of Montpelier after reasonable consultation with the Company, and

(ii) the target number of Montpelier Variable RSUs.

Each Montpelier Variable RSU that was outstanding immediately prior to the completion of the acquisition of Montpelier (including any Montpelier Variable RSUs that were held by an executive officer) was converted into a service-based restricted share unit under the 2007 Plan, as amended, on the same terms and conditions as were applicable to such Montpelier Variable RSU immediately prior to the completion of the acquisition of Montpelier. The number of service based restricted share units granted was equal to the product of (x) 0.472, the exchange ratio in the Merger Agreement and (y) the number of Montpelier common shares that were subject to such Montpelier Variable RSU immediately prior to the completion of the acquisition.

On August 3, 2015, the Company registered 842,755 ordinary shares for issuance.

Upon completion of the acquisition of Montpelier, the Company assumed the Montpelier Re Holdings Ltd. 2012 Long-Term Incentive Plan (the "2012 Montpelier Equity Plan") and all awards outstanding thereunder and the future use of the remaining shares available for issuance under the 2012 Montpelier Equity Plan. The number of remaining shares under the 2012 Montpelier Equity Plan was adjusted pursuant to the terms of the Merger Agreement resulting in the registration of 1,025,349 ordinary shares under the 2007 Plan as amended, for future issuance thereunder.

175

ENDURANCE SPECIALTY HOLDINGS LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in tables expressed in thousands of United States dollars, except

for ratios, share and per share amounts)

16.     Stock-based employee compensation and other stock plans, cont'd.

After the approval of the additional shares, a total of 5,763,104 ordinary shares were reserved for issuance. The Company issues new ordinary shares upon the issuance of share based equity incentives, such as restricted shares, or the exercise or settlement of outstanding derivative equity incentives, such as options or restricted share units. As of December 31, 2016, 2,071,035 (2015 - 2,463,798) ordinary shares remained available for issuance under the 2007 and prior Plans.

On May 28, 2013, the Board of Directors elected John R. Charman as the Company's Chairman and Chief Executive Officer. Mr. Charman received an option to purchase 800,000 ordinary shares at an exercise price of $48.20 per share, and a grant of 708,890 restricted shares, as an employment inducement pursuant to Rule 303A.08 of the New York Stock Exchange Corporate Governance Standards and were made outside of the 2007 Plan.

Options

The 800,000 options awarded to Mr. Charman, as discussed above, vest annually, in five equal tranches commencing on May 28, 2013, subject to the Mr. Charman's continued employment, or in the event of certain terminations of employment and other events. Mr. Charman's options have a ten-year contractual life. The Company uses the Black-Scholes-Merton formula to estimate the value of stock options granted.

Prior to 2005, the Company issued stock options to employees and non-employee directors, with exercise prices equal to the fair market values of the Company's ordinary shares on the grant dates. Options generally vested at a rate of 20% per year over a five-year term. Option awards had a 10-year contractual life.

Performance-Based Restricted Shares

Commencing in March 2015, the Company issued performance-based restricted shares to certain of its senior executives under the 2007 Plan. The performance-based restricted shares represent the right to receive a specified number of ordinary shares in the future, based upon the achievement of pre-established performance criteria during the applicable performance period. Performance-based restricted shares granted to employees vest three years after the date of grant. The number of performance-based restricted shares that will ultimately vest is based upon the actual performance of the Company compared to the performance of a peer group of publicly-traded companies.

Performance-based restricted shares are forfeited upon departure from the Company for any reason prior to the applicable vesting date other than in cases of death, disability, termination of employment in connection with a change in control or retirement. In the case of death, disability or change in control, 50% of the performance-based restricted shares will vest upon the date of death or disability or termination of employment in connection with a change in control. Where an employee meets certain retirement eligibility criteria, the performance-based restricted shares will continue to vest post-employment, subject to compliance with certain non-competition obligations.

The fair value of the performance-based restricted shares is measured at the grant date using a Monte Carlo simulation based on pre-established targets relating to certain performance based measures achieved by the Company, with the associated expense recognized over the applicable performance and vesting period.

Time-Based Restricted Shares

The Company has issued time-based restricted shares to employees and non-employee directors of the Company's Board of Directors under the 2007 Plan. Restricted shares granted to employees generally vest pro-rata over a four-year period. Restricted shares are forfeited upon departure from the Company for any reason prior to the applicable vesting date other than in cases where an employee meets certain retirement eligibility criteria that allow for continuing post-employment vesting of restricted shares, subject to compliance with certain non-competition obligations.

Restricted shares granted to non-employee directors vest twelve months following the date of grant and are forfeited upon departure of the non-employee director from the Company's Board of Directors for any reason prior to the applicable vesting date.

176

ENDURANCE SPECIALTY HOLDINGS LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in tables expressed in thousands of United States dollars, except

for ratios, share and per share amounts)

16.     Stock-based employee compensation and other stock plans, cont'd.

The 708,890 restricted shares awarded to Mr. Charman, as discussed above, vest annually, in five equal tranches

commencing on May 28, 2013, subject to Mr. Charman’s continued employment, or in the event of certain terminations of

employment and other events. Mr. Charman is party to a shareholders' agreement that restricts the sale of any vested restricted shares until 2018.

The fair value of the restricted shares granted is equal to the fair market value of the Company's ordinary shares on the grant date. Compensation equal to the fair market value of the restricted shares at the measurement date is amortized and charged to income over the vesting period.

Restricted Share Units

The Company has issued restricted share units to employees in select jurisdictions where the issuance of restricted shares results in unfavorable tax treatment for employee recipients. Restricted shares granted to employees generally vest pro rata over a four-year period. Restricted share units are forfeited upon departure from the Company for any reason prior to the applicable vesting date other than in cases where an employee meets certain retirement eligibility criteria which allow for continuing post-employment vesting of restricted share units, subject to compliance with certain non-competition obligations.

On July 31, 2015, upon completion of the Company's acquisition of Montpelier, outstanding Montpelier restricted share units were assumed by the Company and adjusted to represent the right to receive 0.472 of the Company's ordinary shares for each outstanding Montpelier restricted share unit rounded down to the next whole number of the Company's ordinary shares.

The fair value of the restricted share units granted or assumed is equal to the fair market value of the Company's ordinary shares on the grant or assumption date, as applicable. Compensation equal to the fair market value of the restricted share units at the measurement date is amortized and charged to income over the vesting period.

Summary of Stock-Based Employee Compensation Activity

A summary of option activity, including options held by employees, during the year ended December 31, 2016 is presented below:

	For the year ended December 31, 2016
Options Outstanding	Number of Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (years)	Aggregate Intrinsic Value
Beginning of year	320,000		$	48.20
Granted	—		—
Exercised	(160,000	)	48.20
Forfeited	—		—
Outstanding, end of year	160,000		$	48.20	6.41	$	7,072
Exercisable and vested options, end of year	—		$	—	N/A	$	—

No options were granted or expired during the years ended December 31, 2016, 2015, and 2014. During the years ended December 31, 2016, 2015 and 2014, 160,000, 160,000 and 160,000 options vested, respectively. The total intrinsic value of options exercised during the years ended December 31, 2016, 2015 and 2014 was $3.2 million, $9.5 million, and $0.3 million, respectively. The Company received proceeds of $7.7 million from the exercise of options during the year ended December 31, 2016. The Company issued new ordinary shares in connection with the exercise of the above options.

For the years ended December 31, 2016, 2015 and 2014, compensation costs recognized in earnings for all options totaled $0.8 million, $1.6 million and $3.1 million, respectively. There were unrecognized stock-based compensation expenses of $0.2 million related to unvested stock options at December 31, 2016 (2015 - $1.0 million). This expense is expected to be recognized in 2017.

177

ENDURANCE SPECIALTY HOLDINGS LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in tables expressed in thousands of United States dollars, except

for ratios, share and per share amounts)

16.     Stock-based employee compensation and other stock plans, cont'd.

A summary of the restricted share and restricted share unit activity during the year ended December 31, 2016, is presented below:

	Number of Shares/Units		Aggregate Intrinsic Value
Unvested, beginning of year	1,663,582
Granted	638,217
Settled	(769,445	)
Forfeited	(65,638	)
Unvested, end of year	1,466,716
Outstanding, end of year	1,466,716		$	135,525

During the years ended December 31, 2016, 2015 and 2014, the Company granted an aggregate of 638,217, 1,388,179 and 505,997 restricted shares and restricted share units under the 2007 Plan. As mentioned above, during the year ended December 31, 2015, the Company also assumed 841,926, the converted outstanding Montpelier restricted share units, adjusted to represent the right to receive 0.472 of the Company's ordinary shares for each outstanding Montpelier restricted share unit rounded down to the next whole number of ordinary shares. The restricted shares and restricted share units granted had weighted average grant date fair values of $38.5 million, $91.2 million and $26.7 million in the years ended December 31, 2016, 2015 and 2014, respectively. During the years ended December 31, 2016, 2015 and 2014, the aggregate fair value of restricted shares and restricted share units that vested was $44.3 million, $60.0 million and $18.7 million, respectively.

For the years ended December 31, 2016, 2015 and 2014, compensation costs recognized in earnings for all restricted shares and restricted share units were $35.7 million, $53.9 million, and $27.9 million, respectively. At December 31, 2016, compensation costs not yet recognized related to non-vested awards was $26.2 million (2015 - $26.7 million). This expense is expected to be recognized between 2017 and 2020, with approximately 65.3% expected to be recognized during 2017.

Employee Share Purchase Plan

On October 26, 2005, Endurance Holdings' shareholders approved the Employee Share Purchase Plan (the "2005 ESPP"). Following approval by the Company's shareholders in 2005, 200,000 of Endurance Holdings' ordinary shares were reserved for issuance under the 2005 ESPP. At a meeting on February 23, 2011, the Company's Board of Directors adopted a resolution to add 200,000 ordinary shares to the 2005 ESPP. The addition of 200,000 ordinary shares to the 2005 ESPP was approved by the Company's shareholders at the Annual General Meeting of Shareholders held on May 11, 2011. After approval of the additional ordinary shares, a total of 400,000 ordinary shares were reserved for issuance under the 2005 ESPP. The 2005 ESPP terminated in accordance with its terms on October 1, 2015. On February 26, 2015, the Compensation Committee of the Company's Board of Directors approved a new employee share purchase plan ("2015 ESPP"), which was approved by the Company's shareholders at its Annual General Meeting of Shareholders held on May 20, 2015. The Company ceased offering and issuing new shares under the 2005 ESPP on June 30, 2015 and began offering and issuing new shares under the 2015 ESPP after July 1, 2015. Following approval by the Company's shareholders in 2015, 300,000 of Endurance Holdings' ordinary shares were reserved for issuance under the 2015 ESPP.

The 2015 ESPP is not subject to any provisions of the Employee Retirement Income Security Act of 1974 as amended, and is not a qualified plan within the meaning of Section 402(a) of the Internal Revenue Code of 1986, as amended (the "Code"). The ESPP is a qualified plan under Section 423 of the Code.

Under the terms of the 2015 ESPP, employees of Endurance Holdings and certain of its subsidiaries may purchase Endurance Holdings' ordinary shares at a 15% discount to the closing market price on the purchase date. Participants are eligible to receive dividends on the shares purchased in the 2015 ESPP and are entitled to vote such shares at any Annual General or Special Meeting of Shareholders. These shares are restricted from sale, transfer or certification for one year from the purchase date.

On signing of the Merger Agreement with Sompo, the 2015 ESPP was suspended as of January 1, 2017 and will be terminated if and when the Merger closes.

Total expenses related to this plan for the year ended December 31, 2016 was approximately $425,000 (2015 - $298,000; 2014 - $234,000).

178

ENDURANCE SPECIALTY HOLDINGS LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in tables expressed in thousands of United States dollars, except

for ratios, share and per share amounts)

17.     Pension plan

The Company provides pension benefits to eligible employees through various defined contribution plans sponsored by the Company. Under the Company's defined contribution plans, the Company makes contributions to its employees' accounts in amounts ranging from 4% to 12% of its employees’ eligible earnings. In addition, under certain defined contribution plans, employee contributions may be supplemented by matching contributions made by the Company based on the level of employee contribution. Lastly, the Company may provide additional contributions, depending on its annual financial performance. The employee and Company contributions in the defined contribution plans are invested at the election of each employee in one or more of several investment portfolios offered by third party investment advisors. Company contributions for the year ended December 31, 2016 resulted in an expense of $15.8 million being recorded in earnings (2015 - $13.8 million; 2014 - $12.6 million).

18.     Statutory requirements and dividend restrictions

The Company's insurance and reinsurance operations are subject to insurance and/or reinsurance laws and regulations in the jurisdictions in which they operate, the most significant of which are Bermuda, the United States, the United Kingdom and Singapore. These regulations include certain restrictions on the amount of dividends or other distributions, such as loans or cash advances, available to shareholders without prior approval of the insurance regulatory authorities.

The combined statutory capital and combined statutory net income (loss) for the Company's principal operating subsidiaries, excluding Syndicate 5151, in their respective jurisdictions were as follows:

Statutory capital	Bermuda				United States				U.K. (1)				Singapore
	2016		2015		2016		2015		2016		2015		2016		2015
Required statutory capital	$	1,614,465	$	1,276,453	$	350,947	$	281,905	$	184,799	$	84,086	$	3,461	$	3,524
Actual statutory capital	4,525,290		4,307,249		810,704		768,791		451,257		538,265		59,025		49,842

Statutory net income (loss)	Bermuda		United States		U.K.		Singapore
Year ended December 31, 2016	$	486,254	$	64,688	$	79,912	$	10,460
Year ended December 31, 2015	417,298		70,398		969		17,542
Year ended December 31, 2014	453,127		28,450		4,135		4,111

(1)U.K. includes the statutory capital of Endurance U.K.

Bermuda

As a Bermuda holding company, Endurance Holdings is subject to the Bermuda Companies Act 1981, which limits the Company's ability to pay dividends and make distributions to its shareholders. The Company's retained earnings are unrestricted; however, the Company is not permitted to declare or pay a dividend, or make a distribution out of contributed surplus, if it is, or would after the payment be, unable to pay its liabilities as they come due, or if the realizable value of its assets would be less than its liabilities. Endurance Holdings had, as of December 31, 2016, $2.9 billion in retained earnings and an additional $2.0 billion in contributed surplus available to declare or pay a dividend, or make a distribution out of contributed surplus, so long as Endurance Holdings remained in compliance with the Bermuda Companies Act 1981 following such dividend or distribution. Endurance Holdings relies on dividends from Endurance Bermuda to provide cash flow required for debt service and dividends to shareholders.

ENDURANCE SPECIALTY HOLDINGS LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in tables expressed in thousands of United States dollars, except

for ratios, share and per share amounts)

18.     Statutory requirements and dividend restrictions, cont'd.

Endurance Bermuda

Endurance Bermuda is a registered Class 4 insurer under the Insurance Act 1978 ("Bermuda Insurance Act") and related regulations as amended (the "Insurance Act"). Endurance Bermuda is required to maintain minimum solvency standards and to hold available statutory capital and surplus equal to or exceeding the Enhanced Capital Requirement as determined by the Bermuda Monetary Authority ("BMA") based upon a standard mathematical model that correlates the risk underwritten to the capital that is dedicated to the business. The required capital noted in the table above has been based on the Enhanced Capital Requirement. In addition to the Enhanced Capital Requirement, Endurance Bermuda is required to maintain a minimum statutory liquidity ratio and solvency margin. For all periods presented herein, Endurance Bermuda materially exceeded these minimum requirements.

Endurance Bermuda's ability to pay dividends and make capital distributions is subject to certain regulatory restrictions based on the Enhanced Capital Requirement, limits on the amount of Endurance Bermuda's premiums written and net reserves for losses and loss expenses and a minimum general capital and surplus requirement of $100.0 million. At December 31, 2016, Endurance Bermuda can pay dividends of $1,109.3 million (2015 - $1,034.4 million) to Endurance Holdings without prior approval under Bermuda law.

Blue Water Re and Blue Water Re II

Blue Water Re and Blue Water Re II are registered with the BMA as Special Purpose Insurers and are not subject to the BMA's Bermuda Solvency Capital Requirement ("BSCR"); however, the Bermuda Insurance Act limits the maximum amount of annual dividends and distributions that may be paid by Blue Water Re and Blue Water Re II. There is no minimum solvency margin or liquidity ratio that must be maintained by Blue Water Re or Blue Water Re II so long as the value of their assets exceed the value of their liabilities. At December 31, 2016, Blue Water Re's assets exceeded the value of its liabilities by $263.1 million (2015 - $269.6 million), and Blue Water Re II's assets exceeded the value of its liabilities by $11.3 million (2015 - $212.5 million). Blue Water Re and Blue Water Re II did not declare or pay any dividends to their parent, BCML, during 2016.

Blue Capital Re

Blue Capital Re is registered with the BMA as a Class 3A insurer. The Bermuda Insurance Act requires Blue Capital Re to maintain minimum levels of statutory capital and surplus to maintain minimum liquidity ratios and to meet minimum solvency margins. At December 31, 2016, Blue Capital Re exceeded these minimum requirements. At December 31, 2016, Blue Capital Re can pay dividends of $45.9 million (2015- $50.6 million) to it's parent without prior approval under Bermuda law.

BCML

BCML is licensed and supervised by the BMA to carry on investment business and as an insurance agent/manager. BCML is not subject to any material minimum solvency requirements.

United States

Endurance Assurance, Endurance American, Endurance American Specialty and Endurance Risk Solutions are subject to regulation by the Delaware Department of Insurance. American Agri-Business is subject to regulation by the Texas Department of Insurance. Endurance Holdings' Delaware and Texas domiciled entities must maintain a minimum level of statutory capital as established by such jurisdictions. The amount of required capital is determined through the use of the Risk Based Capital model established by the National Association of Insurance Commissioners and adopted by Delaware and Texas. The required capital noted in the table above has been based on the Risk Based Capital model and represents the authorized control level risk based capital for these entities.

Dividends for each U.S. operating subsidiary are limited to the greater of 10% of policyholders' surplus or statutory net income, excluding realized capital gains for Endurance Holdings' Delaware domiciled entities. In addition, dividends may only be declared or distributed out of earned surplus. At December 31, 2016, Endurance Assurance, Endurance American, Endurance Risk Solutions and Endurance American Specialty did not have earned surplus and thus were precluded from declaring or distributing dividends during 2016 without the prior approval of the applicable insurance regulator. If the parent company is also an insurer, as is the case with Endurance American, Endurance American Specialty and Endurance Risk Solutions, the parent company or companies must also meet their own dividend eligibility requirements in order to pass along any dividends received from subsidiary insurance companies. At December 31, 2016, American Agri-Business (with notice to the Texas Department of Insurance) could pay dividends of $3.3 million (2015 - $3.5 million) without prior regulatory approval.

180

ENDURANCE SPECIALTY HOLDINGS LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in tables expressed in thousands of United States dollars, except

for ratios, share and per share amounts)

18.     Statutory requirements and dividend restrictions, cont'd.

U.K.

Endurance U.K.

The required and actual statutory capital amounts in the "U.K." category in the table above include amounts related to Endurance U.K. Under the jurisdiction of the United Kingdom's Prudential Regulation Authority ("PRA"), Endurance U.K. must maintain a margin of solvency at all times under the Solvency II Directive from the European Insurance and Occupational Pensions Authority which was effective January 1, 2016. The regulations stipulate that insurers are required to calculate their minimum capital requirement and solvency capital requirement ("SCR"). Insurers can either apply for approval of an internal model to calculate the SCR or adopt the standard formula. Endurance U.K. has utilized the standard formula for the SCR as of December 31, 2016. As of December 31, 2015, the SCR was based upon Solvency I to calculate the capital requirement under Individual Capital Guidance, the risk based capital assessment, superseded by Solvency II. At December 31, 2016 and 2015, the actual capital for Endurance U.K. exceeded all of the capital requirements promulgated by the PRA.

The PRA regulatory requirements impose no explicit restrictions on Endurance U.K.'s ability to pay a dividend, but Endurance U.K. would have to notify the PRA 28 days prior to any proposed dividend payment. Dividends may only be distributed from profits available for distribution. At December 31, 2016 Endurance U.K did not have retained profits available for distribution.

Endurance at Lloyd's

The Company participates in the Lloyd's market through Syndicate 5151, which is managed by Endurance at Lloyd's and is capitalized through ECCL. As a corporate member of Lloyd's, ECCL is subject to the oversight of the Council of Lloyd's.

ECCL is required to deposit cash, securities or letters of credit (or a combination of these assets) with Lloyd's in order to satisfy its FAL requirements, which are met through the Lloyd's Capital Trust. At December 31, 2016, ECCL had total FAL of $323.6 million (2015- $276.8 million) which was provided by Endurance Bermuda.

Singapore

Endurance Bermuda's Singapore branch ("Singapore Branch") is subject to Fund Solvency and Capital Adequacy requirements by the Monetary Authority of Singapore as a foreign company in Singapore and is regulated by the Monetary Authority of Singapore pursuant to the Insurance Act in Singapore. At December 31, 2016 and 2015, the Singapore Branch complied with the capital requirements promulgated by the Monetary Authority of Singapore.

Switzerland

In 2008, Endurance Bermuda established a branch in Zurich, Switzerland named Endurance Specialty Insurance Ltd. Pembroke (Bermuda) Zurich Branch. In 2015, Endurance U.K. established a branch in Zurich named Endurance Worldwide Insurance Limited, London, Zurich Branch. Swiss law does not impose additional regulation upon a Swiss branch of a foreign reinsurer.

19.     Taxes

The Company has operating subsidiaries and branch operations in the United States, United Kingdom, Switzerland and Singapore, which are subject to the relevant taxes in those jurisdictions. During 2014, the United States Internal Revenue Service ("IRS") completed its audit of the income tax returns of of the Company's U.S. subsidiaries for 2009, 2010 and 2011. The audit results were immaterial to the operations of the Company. During 2015, the IRS commenced an examination of the 2012 income tax return of Endurance Bermuda. Although the timing and ultimate resolution of the IRS examinations is uncertain, the Company does not expect the resolution of the examinations to result in a material change to the Company's financial position, results of operations or cash flows. In January 2017, the Switzerland tax authority issued a tax assessment for the Swiss branch of Endurance Bermuda for years 2013 and 2014. The Company disagrees with the assessment and is appealing the assessment. Although the timing and ultimate resolution of the Swiss assessment is uncertain, the Company does not expect the resolution of the examinations to result in a material change to the Company's financial position, results of operations or cash flows. As of December 31, 2016, none of the Company's other operating subsidiaries or branch operations were under examination in any of the jurisdictions in which they operate. The Company remains subject to examination for tax years 2008 through 2016.

181

ENDURANCE SPECIALTY HOLDINGS LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in tables expressed in thousands of United States dollars, except

for ratios, share and per share amounts)

19.     Taxes, cont'd.

Endurance Holdings and Endurance Bermuda are not required to pay any income or capital gains taxes in Bermuda. Endurance Bermuda has received written assurance dated May 16, 2011 and Endurance Holdings has received written assurance dated May 17, 2011 from the Minister of Finance of Bermuda under the Exempted Undertakings Tax Protection Act of 1966 of Bermuda, as amended, that in the event any legislation is enacted in Bermuda imposing any tax computed on profits or income, or computed on any capital asset, gain or appreciation or any tax in the nature of estate duty or inheritance tax, such tax shall not be applicable to the Company until March 31, 2035 provided that the assurance is subject to the condition that it will not prevent the application of any taxes payable by the Company in respect of real property or leasehold interests in Bermuda held by it. Endurance Holdings and Endurance Bermuda intend to operate in a manner such that they will owe no United States tax other than premium excise tax and withholding taxes on certain investments.

The income tax benefit (expense) was as follows for the years ended December 31,2016, 2015 and 2014, respectively:

	2016			2015			2014
Current income tax expense	$	(10,993	)	$	(6,262	)	$	(1,804	)
Deferred income tax benefit	11,174			1,900			1,414
Income tax benefit (expense)	$	181		$	(4,362	)	$	(390	)

Of the 2016 current income tax expense, $1.8 million related to taxes incurred in the United States (2015 - $4.2 million; 2014 - $1.8 million), $4.2 million related to taxes incurred in the United Kingdom (2015 - $2.2 million; 2014 - nil) and $5.0 million related to taxes incurred in Switzerland (2015 - $0.1 million tax benefit; 2014 - nil). Of the deferred income tax benefit, $5.2 million related to deferred income tax benefit in the United States (2015 - $0.7 million; 2014 - $1.4 million), $1.7 million related to deferred income tax benefit in the United Kingdom (2015 - $0.2 million; 2014 - nil) and $4.2 million related to deferred income tax benefit in Bermuda including its branches (2015 - $1.0 million; 2014 - nil). The deferred income tax benefit in Bermuda related to amortization of intangible assets from the acquisition of Montpelier which the Company elected not to push down to Endurance at Lloyd's under current accounting guidance.

In 2016 a full valuation allowance has been recorded against the net deferred asset position of Endurance Bermuda's branches in Singapore and Switzerland. In 2015 a full valuation allowance had been recorded against the net asset position of Endurance Bermuda's branches in Singapore and Switzerland and a United Kingdom subsidiary.

The actual income tax benefit (expense) attributable to income for the years ended December 31, 2016, 2015 and 2014 differed from the amount computed by applying the combined effective rate of 0% under Bermuda law to income before income taxes, as a result of the following:

	2016			2015			2014
Computed expected tax expense	$	—		$	—		$	—
Tax expense effect on foreign taxes	(26,149		)	(8,071		)	(1,661		)
Change in valuation allowance	26,330			3,709			1,271
Income tax benefit (expense)	$	181		$	(4,362	)	$	(390	)

182

ENDURANCE SPECIALTY HOLDINGS LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in tables expressed in thousands of United States dollars, except

for ratios, share and per share amounts)

19.     Taxes, cont'd.

Deferred income taxes represent the tax effect of the differences between the book and tax bases of assets and liabilities. Net deferred income tax assets and liabilities consisted of the following as of December 31, 2016 and 2015:

	2016			2015
Deferred income tax assets:
Unearned premiums	$	28,523		$	25,172
Loss reserves	26,594			27,370
Net operating loss carryforward	66,315			92,844
Deferred compensation	26,451			25,268
Deferred interest	48,359			46,568
Unrealized investment losses	1,803			1,568
Realized investment losses	4,010			4,972
Other	3,830			11,077
Total deferred income tax assets	205,885			234,839
Deferred income tax liabilities:
Deferred acquisition costs	(1,325		)	(8,179		)
Unrealized foreign exchange gains	—			(4,087		)
Temporary differences related to acquisition	(29,033		)	(35,461		)
Start up costs	(1,989		)	(1,565		)
Other	(10,002		)	(7,561		)
Total deferred income tax liabilities	(42,349		)	(56,853		)
Valuation allowance	(104,808		)	(131,138		)
Net deferred income tax asset	$	58,728		$	46,848

Net income tax payments for the years ended December 31, 2016, 2015 and 2014 totaled $7.8 million, $2.4 million, and $0.9 million respectively. Net operating loss carryforwards gross of tax in the amount of $119.8 million, $45.9 million, $61.1 million and $44.5 million are available for application against future taxable income in the United States, United Kingdom, and Endurance Bermuda's branches in Singapore and Switzerland, respectively. These net operating loss carry forwards have no expiration date in the United Kingdom and Singapore. In Switzerland and the United States, the net operating loss carry forwards expire through 2016 and 2028, respectively.

A valuation allowance is provided when it is more likely than not that some portion of the deferred tax assets will not be realized. At December 31, 2016, management has established a valuation allowance of $104.8 million (2015 - $131.1 million) against net deferred tax assets in the Company's United States subsidiaries and Endurance Bermuda's Singapore and Switzerland branches.

The Company's income before income taxes was distributed as follows for the years ended December 31, 2016, 2015 and 2014, respectively:

	2016		2015		2014
U.S. (domestic)	$	40,872	$	95,649	$	60,112
Non-U.S. (foreign) (1)	340,094		263,824		288,728
Income before income taxes	$	380,966	$	359,473	$	348,840

(1) The Company's non-U.S. (foreign) operating subsidiaries write business that is exposed to risks originating in the United States.

In 2015 Management concluded that valuation allowances were required against the net operating loss and net capital loss carryforwards assumed as part of the Montpelier acquisition. The valuation allowances had been established as Internal Revenue Code Section 382 limits the application of net operating loss and net capital loss carryforwards following an ownership change. Accordingly, a tax effected valuation allowance of $11.6 million and $0.7 million, respectively, was required as of August 1, 2015. The Montpelier capital loss carryforwards have fully expired. The operating loss carryforwards available per year are $0.2 million as required by Internal Revenue Code Section 382.

183

ENDURANCE SPECIALTY HOLDINGS LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in tables expressed in thousands of United States dollars, except

for ratios, share and per share amounts)

19.     Taxes, cont'd.

As of December 31, 2016 and 2015, the Company had no material uncertain tax positions.

20.     Condensed unaudited quarterly financial data

The following is a summary of the unaudited quarterly data for the year ended December 31, 2016:

	Quarter Ended    March 31, 2016			Quarter Ended    June 30, 2016			Quarter Ended    September 30, 2016			Quarter Ended    December 31, 2016
Net premiums earned	$	553,191		$	599,608		$	610,156		$	600,705
Net investment income	11,181			43,977			62,236			59,196
Net realized and unrealized gains (losses)	13,787			6,347			13,405			(45,958		)
Net impairment losses recognized in earnings	(623		)	(9,841		)	(183		)	(122		)
Subtotal	$	577,536		$	640,091		$	685,614		$	613,821
Net losses and loss expenses	$	243,328		$	376,112		$	331,462		$	370,150
Acquisition, general and administrative, and corporate expenses	$	187,838		$	178,870		$	201,081		$	192,546
Net foreign exchange gains	$	(11,729	)	$	(32,751	)	$	(18,576	)	$	(11,628	)
Net income	$	124,644		$	87,628		$	139,400		$	29,475
Net income attributable to non-controlling interests	(9,063		)	(3,714		)	(5,679		)	(5,674		)
Net income available to Endurance Holdings	$	115,581		$	83,914		$	133,721		$	23,801
Preferred dividends	(9,203		)	(7,293		)	(3,651		)	(3,652		)
Net income available to Endurance Holdings' common and participating common shareholders	$	106,378		$	76,621		$	130,070		$	20,149
Basic earnings per share	$	1.58		$	1.14		$	1.93		$	0.30
Diluted earnings per share	$	1.58		$	1.14		$	1.92		$	0.30

The following is a summary of the unaudited quarterly data for the year ended December 31, 2015:

	Quarter Ended    March 31, 2015			Quarter Ended    June 30, 2015			Quarter Ended    September 30, 2015			Quarter Ended    December 31, 2015
Net premiums earned	$	389,859		$	458,135		$	557,003		$	573,456
Net investment income	41,861			32,252			16,533			23,180
Net realized and unrealized gains (losses)	18,189			9,680			5,029			(20,238		)
Net impairment losses recognized in earnings	(649		)	(424		)	(38		)	(2,604		)
Subtotal	$	449,260		$	499,643		$	578,527		$	573,794
Net losses and loss expenses	$	171,936		$	239,122		$	263,993		$	242,057
Acquisition, general and administrative, and corporate expenses	$	149,251		$	152,570		$	225,558		$	194,726
Net foreign exchange losses (gains)	$	7,552		$	12,981		$	8,621		$	(2,190	)
Net income	$	108,479		$	84,206		$	54,530		$	107,896
Net income attributable to non-controlling interests	—			—			(2,707		)	(8,309		)
Net income available to Endurance Holdings	$	108,479		$	84,206		$	51,823		$	99,587
Preferred dividends	(8,188		)	(8,188		)	(8,188		)	(8,186		)
Net income available to Endurance Holdings' common and participating common shareholders	$	100,291		$	76,018		$	43,635		$	91,401
Basic earnings per share	$	2.24		$	1.69		$	0.73		$	1.36
Diluted earnings per share	$	2.23		$	1.68		$	0.73		$	1.36

184

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

There were no changes in or disagreements with accountants on accounting and financial disclosure during the course of the year.

Item 9A. Controls and Procedures

The Company's management, with the participation of the Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the Company's disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended) as of the end of the period covered by this report. Based upon such evaluation, the Company's Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of such period, the Company's disclosure controls and procedures are effective in recording, processing, summarizing and reporting, on a timely basis, the information required to be disclosed by the Company in the reports that it files or submits under the Securities Exchange Act of 1934, as amended.

The management of Endurance Specialty Holdings Ltd. (the "Company") is responsible for establishing and maintaining effective internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934, as amended). This internal control provides monitoring mechanisms, and actions are taken to correct deficiencies identified.

There are inherent limitations in any internal control over financial reporting, including the possibility of human error and the circumvention or overriding of controls. Accordingly, even effective internal controls can provide only reasonable assurance with respect to financial statement preparation. Further, because of changes in conditions, controls may become inadequate or the degree of compliance with policies or procedures may deteriorate over time.

Management assessed the Company's internal control over financial reporting as of December 31, 2016. In making this assessment, management used the criteria set forth in "Internal Control – Integrated Framework" issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 Framework). Based on this assessment, management concluded that, as of December 31, 2016, the Company maintained effective internal control over financial reporting.

Ernst & Young Ltd., an independent registered public accounting firm, has issued their attestation report on the Company's internal control over financial reporting.

There have not been any changes in the Company's internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the Company's fourth fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

Item 9B. Other Information

Information required to be disclosed in a report on Form 8-K during the three months ended December 31, 2016 was so reported.

PART III

Item 10. Directors, Executive Officers and Corporate Governance

Information called for by Item 10 is incorporated herein by reference to the sections captioned "Board of Directors" and "Section 16(a) Beneficial Ownership Reporting Compliance" of our Proxy Statement for our 2017 Annual General Meeting of Shareholders. Biographies of the current executive officers of the Company are set forth below.

John R. Charman, 64, joined the Company in May 2013 as Chairman of the Board and Chief Executive Officer. Mr. Charman has four decades of global experience in the insurance industry and has been in a senior underwriting position since 1975 and a CEO role since 1981. Most recently, Mr. Charman founded AXIS Capital Holdings Limited in 2001 and served for 11 years as its Chief Executive Officer and President. From 2000 to 2001, Mr. Charman served as Deputy Chairman of ACE INA Holdings and President of ACE International. Mr. Charman also served as Chief Executive Officer at ACE Global Markets from 1998 to 2001. Prior to that, Mr. Charman was the Chief Executive Officer of Tarquin plc, the parent company of the Charman Underwriting Agencies at Lloyd's, which was sold to Ace Limited in 1998. Mr. Charman was the Deputy Chairman of the Council of Lloyd's and a member of the Lloyd's Core Management Group and Lloyd's Market Board between 1995 and 1997, which was during the financial crisis at Lloyd's. Mr. Charman held the position of Second Deputy Chairman of the Association of Bermuda Insurers and Reinsurers from January 2011 to June 2012. Mr. Charman is currently a member of the Board of the Masterworks Museum of Bermuda Art.

John V. Del Col, 55, has been the Company's General Counsel and Secretary since January 2003 and Executive Vice President, Acquisitions since February 2007. From October 1999 until January 2003, Mr. Del Col served as Executive Vice

185

President, General Counsel, and Secretary of Trenwick Group Ltd. and its predecessor company, Trenwick Group Inc., a property and casualty reinsurer. Mr. Del Col was Vice President, General Counsel, and Secretary of Chartwell Re Corporation, a property and casualty reinsurer, from January 1998 until its merger with and into Trenwick Group Inc. in October 1999. From July 1994 until December 1997, Mr. Del Col was the Deputy General Counsel and Assistant Secretary at MeesPierson Holdings Inc., a Dutch merchant bank. From November 1991 until July 1994, Mr. Del Col was an associate in the law firm of LeBoeuf, Lamb, Greene & MacRae, L.L.P. Prior thereto, Mr. Del Col was an associate in the law firm of Sullivan & Cromwell.

Christopher Gallagher, 43, was named Chief Risk Officer and Group Actuary, effective September 2015. Mr. Gallagher is responsible for the Company's Enterprise Risk Management and Actuarial Functions. Prior to joining the Company, Mr. Gallagher was the Chief Risk Officer of the Insurance segment at Axis Capital Holdings from 2007 to 2015. Prior thereto, he served from 2001 to 2007 as a Senior Manager in Ernst & Young LLP's insurance and actuarial advisory practice in London. Mr. Gallagher holds a Bachelor of Science (Honours) degree in Mathematics and Statistics from the University of Glasgow and is a Fellow of the Institute and Faculty of Actuaries in the UK.

Brian W. Goshen, 55, was named Chief Human Resources Officer in February 2014. In May of 2014, he was named Chief Administrative Officer assuming responsibility for Information Technology, Marketing and Communications, Real Estate and Facilities and Global Corporate Claims in addition to his Human Resources duties. Prior to joining the Company, Mr. Goshen held a number of senior human resources positions, most recently at AXIS Capital Holdings Limited. Mr. Goshen joined AXIS in January 2006 as Chief Human Resources Officer and was promoted to Chief Administrative Officer in 2010. Before joining AXIS, he served as a Vice President of Human Resources at Fifth Third Bank. Prior to that, he was with Marsh, a wholly owned subsidiary of Marsh & McLennan Companies, for eight years where, as a Managing Director, he served as regional head of Human Resources for their North America and Asia-Pacific operations. Mr. Goshen's career also includes Human Resources positions with the Hong Kong and Shanghai Banking Corporation (HSBC), Goldman Sachs and the U.S. Army. Mr. Goshen holds a B.S. in Management and Organization from Central Washington University.

John A. Kuhn, 52, was named Chief Executive Officer, Global Insurance, of the Company, effective November 2012. Mr. Kuhn joined the Company from AXIS Capital where his most recent role was Chief Underwriting Officer, AXIS Insurance, responsible for the worldwide insurance operations and, prior to that, Chief Executive Officer, North American Division, AXIS Insurance. He joined AXIS Capital in 2003 when the company acquired Kemper Insurance's Financial Insurance Solutions business which Mr. Kuhn had built as President of that business unit. Mr. Kuhn started his insurance career at Chubb Group of Insurance Companies, where he assumed increasing responsibility, culminating in the role of Chief Underwriting Officer for Chubb/Executive Protection. Mr. Kuhn holds a B.A. degree from Wesleyan University.

Michael J. McGuire, 44, has been Chief Financial Officer since January 2006. Mr. McGuire joined the Company in 2003 to lead its external reporting, treasury and Sarbanes-Oxley compliance initiatives. Mr. McGuire came to the Company from Deloitte & Touche LLP where he spent over nine years working in a variety of audit and advisory roles in the United States, Bermuda and Europe. In his last role at Deloitte & Touche, Mr. McGuire served as a senior manager in their merger and acquisition advisory practice, providing transaction accounting, structuring and due diligence services to private equity and strategic investors. Since August 2015, Mr. McGuire has served as a director of Blue Capital Reinsurance Holdings Ltd. (“BCRH”), a New York Stock Exchange listed, Bermuda-based exempted limited liability holding company in which Endurance Holdings and Endurance Bermuda together hold a 33.3% interest. BCRH provides fully-collateralized property catastrophe reinsurance and invests in various insurance-linked securities through its wholly-owned Bermuda-based subsidiaries, with its underwriting decisions and operations managed by Bermuda-based affiliates utilizing the Company's reinsurance underwriting expertise and infrastructure to conduct its business.Mr. McGuire is a Certified Public Accountant and a member of the American Institute of Certified Public Accountants.

Stephen H.R. Young, 45, was named Chief Executive Officer, Global Reinsurance, effective January 2016. Prior to being appointed to this role, Mr. Young was Executive Vice President, Chief Underwriting Officer, Head of Global Catastrophe Reinsurance of the Company since September 2011. Mr. Young joined the Company's Bermuda-based reinsurance team in 2002 as an underwriter, assumed responsibility for the Company's U.S. catastrophe reinsurance business in 2005 and later served as Senior Vice President responsible for Property Catastrophe underwriting in the Americas. Prior to his tenure at the Company, Mr. Young held various underwriting positions in the industry. A native of Bermuda, he graduated from Babson College with a Bachelor of Science degree in Finance.

Our Board of Directors has adopted a code of ethics entitled "Code of Business Conduct and Ethics" which applies to all of our employees, officers and directors, including our chief executive officer and chief financial officer. Copies of this code can be found at www.endurance.bm and may be obtained in print, without cost, by writing Endurance Specialty Holdings Ltd., Attention: Secretary, Waterloo House, 100 Pitts Bay Road, Pembroke HM08, Bermuda.

186

Item 11. Executive Compensation

The information called for by Item 11 is incorporated herein by reference to the sections captioned "Compensation Discussion and Analysis," "Compensation Committee Report" and "Executive Compensation" of our Proxy Statement for our 2017 Annual General Meeting of Shareholders.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters

The information called for by Item 12 is incorporated herein by reference to the sections captioned “Security Ownership of Certain Beneficial Owners,” “Security Ownership of Directors and Executive Officers” and “Equity Compensation Plan Information” of our Proxy Statement for our 2017 Annual General Meeting of Shareholders.

Item 13. Certain Relationships and Related Transactions, and Director Independence

The information called for by Item 13 is incorporated herein by reference to the sections captioned "Transactions with Related Persons, Promoters and Certain Control Persons" and "Board of Directors" of our Proxy Statement for our 2017 Annual General Meeting of Shareholders.

Item 14. Principal Accountant Fees and Services

The information called for by Item 14 is incorporated herein by reference to the section captioned "Audit Fees" of our Proxy Statement for our 2017 Annual General Meeting of Shareholders.

187

PART IV

Item 15. Exhibits and Financial Statement Schedules

(a) The following is a list of certain documents filed as a part of this report:

(a) Financial Statements. See Index to Consolidated Financial Statements on page 109 hereof.

(b) Financial Statement Schedules. See Index to Consolidated Financial Statement Schedules on page 164 hereof.

(c) Exhibits. See Exhibit Index beginning on page 175 hereof.

Item 16. Form 10-K Summary

None.

188

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) 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.

Date:	March 1, 2017	ENDURANCE SPECIALTY HOLDINGS LTD.
		/s/ John R. Charman
		Name: John R. Charman
		Title: Chief Executive Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and as on the dates indicated.

Signature	Title	Date
/s/ John R. Charman	Chief Executive Officer and Director	March 1, 2017
John R. Charman	(Principal Executive Officer)
/s/ Michael J. McGuire	Chief Financial Officer	March 1, 2017
Michael J. McGuire	(Principal Financial Officer)
/s/ Carrie L. Rosorea	Chief Accounting Officer	March 1, 2017
Carrie L. Rosorea	(Principal Accounting Officer)
/s/ John T. Baily	Director	March 1, 2017
John T. Baily
/s/ Norman Barham	Director	March 1, 2017
Norman Barham
/s/ Galen R. Barnes	Director	March 1, 2017
Galen R. Barnes
/s/ William H. Bolinder	Director	March 1, 2017
William H. Bolinder
/s/ Philip M. Butterfield	Director	March 1, 2017
Philip M. Butterfield
/s/ Steven W. Carlsen	Director	March 1, 2017
Steven W. Carlsen
/s/ Morgan W. Davis	Director	March 1, 2017
Morgan W. Davis
/s/ Susan S. Fleming	Director	March 1, 2017
Susan S. Fleming
/s/ Nicholas C. Marsh	Director	March 1, 2017
Nicholas C. Marsh
/s/ Scott D. Moore	Director	March 1, 2017
Scott D. Moore
/s/ William J. Raver	Director	March 1, 2017
William J. Raver
/s/ Robert A. Spass	Director	March 1, 2017
Robert A. Spass
/s/ Ian Winchester	Director	March 1, 2017
Ian Winchester

189

Index to Consolidated Financial Statement Schedules

		Pages
I.	Summary of Investments other than Investments in Related Parties at December 31, 2016	191
II.	Condensed Financial Statement Information of the Registrant	192
III.	Supplementary Insurance Information for the years ended December 31, 2016, 2015 and 2014	195
IV.	Reinsurance for the years ended December 31, 2016, 2015 and 2014	197
V.	Valuation and Qualifying Accounts	198
VI.	Supplementary Information for Property and Casualty Insurance Underwriters for the years ended December 31, 2016, 2015 and 2014	199

All other financial statement schedules are not required under the related instructions or are inapplicable and therefore have been omitted.

190

SCHEDULE I

ENDURANCE SPECIALTY HOLDINGS LTD. AND SUBSIDIARIES

SUMMARY OF INVESTMENTS OTHER THAN INVESTMENTS IN RELATED PARTIES

AT DECEMBER 31, 2016

(In thousands of United States dollars)

	Cost(1)		Market Value		Amount at Which Shown on the Balance Sheet
Type of Investment:
Fixed Maturity Investments
U.S. government and government agencies and authorities	$	1,003,969	$	1,001,882	$	1,001,882
States, municipalities and political subdivisions	17,115		18,357		18,357
Foreign governments	180,583		178,919		178,919
Corporate bonds	2,120,463		2,151,610		2,151,610
Mortgage-backed securities
Agency mortgage-backed securities	1,461,354		1,472,343		1,472,343
Non-agency mortgage-backed securities	603,293		607,791		607,791
Collateralized loan and debt obligations	369,126		371,256		371,256
Asset-backed securities	509,595		510,663		510,663
Total fixed maturity investments	$	6,265,498	$	6,312,821	$	6,312,821
Short-term investments	408,811		408,704		408,704
Equity securities	477,778		501,141		501,141
Other investments	470,299		588,308		588,308
Total Investments	$	7,622,386	$	7,810,974	$	7,810,974

(1) Investments in fixed maturity investments and short-term investments are shown at amortized cost.

191

SCHEDULE II

ENDURANCE SPECIALTY HOLDINGS LTD.

CONDENSED FINANCIAL STATEMENT INFORMATION OF THE REGISTRANT

BALANCE SHEETS-PARENT ONLY

DECEMBER 31, 2016 AND 2015

(In thousands of United States dollars except share amounts)

	2016			2015
ASSETS
Investment in subsidiary	$	5,296,821		$	5,683,801
Cash and cash equivalents	3,375			3,206
Amounts due from subsidiaries	513,621			105,497
Goodwill and intangible assets	45,710			51,938
Other assets	12,833			14,435
Total assets	$	5,872,360		$	5,858,877
LIABILITIES
Debt	$	708,378		$	707,591
Other liabilities	21,849			27,214
Total liabilities	730,227			734,805
SHAREHOLDERS' EQUITY
Preferred shares
Series B and C, non-cumulative - 9,200 issued and outstanding (2015 - 9,209,200)	9			9,209
Common shares
Common shares, ordinary - 67,627,901 issued and outstanding (2015 - 66,797,991)	67,628			66,798
Additional paid-in capital	1,961,917			2,145,836
Accumulated other comprehensive loss	(58,749		)	(46,634		)
Retained earnings	2,911,634			2,681,053
Total shareholders' equity available to Endurance Holdings	4,882,439			4,856,262
Non-controlling interests	259,694			267,810
Total shareholders' equity	5,142,133			5,124,072
Total liabilities and shareholders' equity	$	5,872,360		$	5,858,877

See accompanying notes to the consolidated financial statements.

192

SCHEDULE II

ENDURANCE SPECIALTY HOLDINGS LTD.

CONDENSED FINANCIAL STATEMENT INFORMATION OF THE REGISTRANT, Cont’d.

STATEMENTS OF INCOME-PARENT ONLY

YEARS ENDED DECEMBER 31, 2016, 2015, AND 2014

(In thousands of United States dollars)

	2016			2015			2014
Revenues
Net investment income	$	5		$	9		$	248
Net realized and unrealized gains	206			332			1,957
Other income	10,200			10,200			10,200
Total revenues	10,411			10,541			12,405
Expenses
General and administrative expenses	41,879			93,237			61,325
Amortization of intangibles	6,228			1,558			—
Net foreign exchange (gains) losses	(20		)	5			(1		)
Interest expense	43,833			41,188			40,968
Total expenses	91,920			135,988			102,292
Loss before income taxes and equity in net income of subsidiaries	(81,509		)	(125,447		)	(89,887		)
Equity in net income of subsidiaries	462,656			480,558			438,337
Net income	381,147			355,111			348,450
Net income attributable to non-controlling interests	(24,130		)	(11,016		)	—
Net income available to Endurance Holdings	357,017			344,095			348,450
Preferred dividends	(23,799		)	(32,750		)	(32,750		)
Net income available to Endurance Holdings' common and participating common shareholders	$	333,218		$	311,345		$	315,700

See accompanying notes to the consolidated financial statements

193

SCHEDULE II

ENDURANCE SPECIALTY HOLDINGS LTD.

CONDENSED FINANCIAL STATEMENT INFORMATION OF THE REGISTRANT, Cont’d.

STATEMENTS OF CASH FLOWS-PARENT ONLY

YEARS ENDED DECEMBER 31, 2016, 2015, AND 2014

(In thousands of United States dollars)

	2016			2015			2014
Cash flows used in operating activities:
Net income	$	381,147		$	355,111		$	348,450
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	8,380			3,738			6,785
Net realized and unrealized gains	(206		)	(332		)	(1,957		)
Stock-based compensation expense	9,339			28,604			15,093
Equity in net earnings of subsidiary	(462,656		)	(480,558		)	(438,337		)
Other assets	327			(893		)	(177		)
Other liabilities	(3,524		)	(17,377		)	1,626
Net cash flows used in operating activities	(67,193		)	(111,707		)	(68,517		)
Cash flows provided by investing activities:
Proceeds from sales and maturities of available for sale investments	—			—			26,094
Purchases of available for sale investments	—			—			(24,137		)
Contributions of capital made to subsidiaries	(4,655		)	—			—
Dividends received from subsidiary	809,840			341,524			145,203
Net amounts paid to subsidiaries	(379,632		)	35,383			14,819
Purchases of fixed assets	—			(11,626		)	—
Proceeds from disposals of fixed assets	—			6,606			19
Net cash received for subsidiary acquisition	—			19,875			—
Net cash flows provided by investing activities	425,553			391,762			161,998
Cash flows used in financing activities:
Issuance of common shares	10,076			24,823			2,305
Issuance of Series C, non-cumulative preferred shares	—			222,963			—
Redemption of Series A and B, non-cumulative preferred shares	(230,000		)	(200,000		)	—
Offering and registration costs paid	(319		)	(617		)	—
Bridge facility costs paid	—			—			(4,750		)
Settlement of restricted shares	(11,732		)	(14,535		)	(4,039		)
Repayments of debt	—			(198,500		)	—
Dividends paid on preferred shares	(23,799		)	(32,750		)	(32,750		)
Dividends paid on common shares	(102,417		)	(78,473		)	(60,524		)
Net cash flows used in financing activities	(358,191		)	(277,089		)	(99,758		)
Net increase (decrease) in cash and cash equivalents	169			2,966			(6,277		)
Cash and cash equivalents, beginning of year	3,206			240			6,517
Cash and cash equivalents, end of year	$	3,375		$	3,206		$	240

See accompanying notes to the consolidated financial statements

194

SCHEDULE III

ENDURANCE SPECIALTY HOLDINGS LTD. AND SUBSIDIARIES

SUPPLEMENTARY INSURANCE INFORMATION

YEARS ENDED DECEMBER 31, 2016, 2015, AND 2014

(In thousands of United States dollars)

Year Ended December 31, 2016

	Insurance		Reinsurance		Total
Deferred Acquisition Costs	$	72,502	$	204,137	$	276,639
Reserve for Losses and Loss Expenses	2,798,989		2,106,149		4,905,138
Unearned Premiums	1,124,359		870,317		1,994,676
Net Premiums Earned	1,009,375		1,354,285		2,363,660
Net Investment Income (1)	—		—		176,590
Net Losses and Loss Expenses	684,178		636,874		1,321,052
Amortization of Deferred Acquisition Costs	149,763		310,720		460,483
Other Operating Expenses (2)	140,742		107,404		248,146
Net Premiums Written	1,056,254		1,313,681		2,369,935

(1) Because the Company does not manage its assets by segment, investment income is not allocated to the individual segments.

(2) General and administrative expenses incurred by segments are allocated directly. Remaining general and administrative expenses not incurred by the segments are classified as corporate expenses and are not allocated to the individual business segments.

Year Ended December 31, 2015

	Insurance		Reinsurance		Total
Deferred Acquisition Costs	$	58,216	$	197,285	$	255,501
Reserve for Losses and Loss Expenses	2,493,894		2,016,521		4,510,415
Unearned Premiums	902,152		886,996		1,789,148
Net Premiums Earned	824,552		1,153,901		1,978,453
Net Investment Income (1)	—		—		113,826
Net Losses and Loss Expenses	500,867		416,241		917,108
Amortization of Deferred Acquisition Costs	80,252		267,633		347,885
Other Operating Expenses (2)	140,012		119,779		259,791
Net Premiums Written	880,373		1,070,097		1,950,470

(1) Because the Company does not manage its assets by segment, investment income is not allocated to the individual segments.

(2) General and administrative expenses incurred by segments are allocated directly. Remaining general and administrative expenses not incurred by the segments are classified as corporate expenses and are not allocated to the individual business segments.

195

SCHEDULE III

ENDURANCE SPECIALTY HOLDINGS LTD. AND SUBSIDIARIES

SUPPLEMENTARY INSURANCE INFORMATION, Cont’d

YEARS ENDED DECEMBER 31, 2016, 2015, AND 2014

(In thousands of United States dollars)

Year Ended December 31, 2014

	Insurance		Reinsurance		Total
Deferred Acquisition Costs	$	34,581	$	172,787	$	207,368
Reserve for Losses and Loss Expenses	2,123,772		1,723,087		3,846,859
Unearned Premiums	642,779		611,740		1,254,519
Net Premiums Earned	833,912		1,030,066		1,863,978
Net Investment Income (1)	—		—		131,543
Net Losses and Loss Expenses	594,561		375,601		970,162
Amortization of Deferred Acquisition Costs	65,368		254,145		319,513
Other Operating Expenses (2)	148,475		98,912		247,387
Net Premiums Written	860,406		1,073,800		1,934,206

(1) Because the Company does not manage its assets by segment, investment income is not allocated to the individual segments.

(2) General and administrative expenses incurred by segments are allocated directly. Remaining general and administrative expenses not incurred by the segments are classified as corporate expenses and are not allocated to the individual business segments.

196

SCHEDULE IV

ENDURANCE SPECIALTY HOLDINGS LTD. AND SUBSIDIARIES

REINSURANCE

FOR THE YEARS ENDED DECEMBER 31, 2016, 2015 AND 2014

(In thousands of United States dollars)

Premiums Written	Gross Amount		Ceded to Other Companies		Assumed from Other Companies		Net Amount		Percentage of Amount Assumed to Net
Year ended December 31, 2016
Property and liability insurance	$	2,570,494	$	1,832,235	$	1,631,676	$	2,369,935	69	%
Year ended December 31, 2015
Property and liability insurance	$	2,085,901	$	1,370,391	$	1,234,960	$	1,950,470	63	%
Year ended December 31, 2014
Property and liability insurance	$	1,716,128	$	959,870	$	1,177,948	$	1,934,206	61	%

197

SCHEDULE V

ENDURANCE SPECIALTY HOLDINGS LTD. AND SUBSIDIARIES

VALUATION AND QUALIFYING ACCOUNTS

FOR THE YEARS ENDED DECEMBER 31, 2016, 2015 AND 2014

(In thousands of United States dollars)

	Balance at Beginning of Year	Charged to costs and expenses	Charged to other accounts	Deductions (1)	Balance at End of Year
December 31, 2016
Valuation allowance for deferred tax assets	131,138	—	—	26,330	104,808
December 31, 2015
Valuation allowance for deferred tax assets	121,409	—	13,300	3,571	131,138
December 31, 2014
Valuation allowance for deferred tax assets	122,680	—	—	1,271	121,409

(1) Credited to the related asset account

198

SCHEDULE VI

ENDURANCE SPECIALTY HOLDINGS LTD. AND SUBSIDIARIES

SUPPLEMENTARY INFORMATION FOR PROPERTY AND CASUALTY

INSURANCE UNDERWRITERS

FOR THE YEARS ENDED DECEMBER 31, 2016, 2015, AND 2014

(In thousands of United States dollars)

Year Ended December 31, 2016

	Insurance			Reinsurance			Total
Deferred Acquisition Costs	$	72,502		$	204,137		$	276,639
Reserve for Losses and Loss Expenses	2,798,989			2,106,149			4,905,138
Discount if any, Reserve for Losses and Loss Expenses	—			—			—
Unearned Premiums	1,124,359			870,317			1,994,676
Net Premiums Earned	1,009,375			1,354,285			2,363,660
Net Investment Income (1)	—			—			176,590
Net Losses and Loss Expenses
Current Year	761,315			781,287			1,542,602
Prior Year	(77,137		)	(144,413		)	(221,550		)
Amortization of Deferred Acquisition Costs	149,763			310,720			460,483
Paid Losses and Loss Expenses	592,018			593,872			1,185,890
Net Premiums Written	1,056,254			1,313,681			2,369,935

(1) Because the Company does not manage its assets by segment, investment income is not allocated to the individual segments.

Year Ended December 31, 2015

	Insurance			Reinsurance			Total
Deferred Acquisition Costs	$	58,216		$	197,285		$	255,501
Reserve for Losses and Loss Expenses	2,493,894			2,016,521			4,510,415
Discount if any, Reserve for Losses and Loss Expenses	—			—			—
Unearned Premiums	902,152			886,996			1,789,148
Net Premiums Earned	824,552			1,153,901			1,978,453
Net Investment Income (1)	—			—			113,826
Net Losses and Loss Expenses
Current Year	582,868			577,704			1,160,572
Prior Year	(82,001		)	(161,463		)	(243,464		)
Amortization of Deferred Acquisition Costs	80,252			267,633			347,885
Paid Losses and Loss Expenses	626,606			507,031			1,133,637
Net Premiums Written	880,373			1,070,097			1,950,470

(1) Because the Company does not manage its assets by segment, investment income is not allocated to the individual segments.

199

SCHEDULE VI

ENDURANCE SPECIALTY HOLDINGS LTD. AND SUBSIDIARIES

SUPPLEMENTARY INFORMATION FOR PROPERTY AND CASUALTY

INSURANCE UNDERWRITERS, Cont’d.

FOR THE YEARS ENDED DECEMBER 31, 2016, 2015, AND 2014

(In thousands of United States dollars)

Year Ended December 31, 2014

	Insurance			Reinsurance			Total
Deferred Acquisition Costs	$	34,581		$	172,787		$	207,368
Reserve for Losses and Loss Expenses	2,123,772			1,723,087			3,846,859
Discount if any, Reserve for Losses and Loss Expenses	—			—			—
Unearned Premiums	642,779			611,740			1,254,519
Net Premiums Earned	833,912			1,030,066			1,863,978
Net Investment Income(1)	—			—			131,543
Net Losses and Loss Expenses
Current Year	675,131			528,846			1,203,977
Prior Year	(80,570		)	(153,245		)	(233,815		)
Amortization of Deferred Acquisition Costs	65,368			254,145			319,513
Paid Losses and Loss Expenses	700,576			457,636			1,158,212
Net Premiums Written	860,406			1,073,800			1,934,206

(1) Because the Company does not manage its assets by segment, investment income is not allocated to the individual segments.

200

EXHIBIT INDEX

Exhibit Number	Description of Document
2.1	Agreement and Plan of Merger, dated as of March 31, 2015, by and among Montpelier Re Holdings Ltd., Endurance Specialty Holdings Ltd. and Millhill Holdings Ltd., incorporated herein by reference to Exhibit 2.1 to the Current Report on Form 8-K filed on April 1, 2015.
2.2	Agreement and Plan of Merger, dated as of October 5, 2016, by and among Endurance Specialty Holdings Ltd., Sompo Holdings, Inc. and Volcano International Limited. Incorporated herein by reference to Exhibit 2.1 to the Current Report on Form 8-K filed on October 5, 2016.
2.3	Amendment Agreement, dated as of December 1, 2016, by and among Endurance Specialty Holdings Ltd., Sompo Holdings, Inc. and Volcano International Limited. Incorporated herein by reference to Exhibit 2.1 to the Current Report on Form 8-K filed on December 2, 2016.
3.1	Memorandum of Association. Incorporated herein by reference to Exhibit 3.1 to Amendment No. 1 to the Registration Statement on Form S-1 filed on January 28, 2003.
3.2	Certificate of Deposit of Memorandum of Increase of Share Capital. Incorporated herein by reference to Exhibit 3.2 to the Annual Report on Form 10-K for the Year Ended December 31, 2004.
3.3	Amended and Restated Bye-laws, dated as of May 8, 2013. Incorporated herein by reference to Exhibit 3.1 to the Current Report on Form 8-K filed on May 9, 2013.
4.1	Specimen Ordinary Share Certificate. Incorporated herein by reference to Exhibit 4.1 to Amendment No. 2 to the Registration Statement on Form S-1 filed on February 10, 2003.
4.2	Certificate of Designations of 6.350% Non-Cumulative Preferred Shares, Series C, of Endurance Specialty Holdings Ltd. (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K filed on November 24, 2015).
4.3	Specimen 6.350% Non-Cumulative Preferred Shares, Series C (incorporated by reference to Exhibit 4.3 to the Current Report on Form 8-K filed on November 24, 2015).
4.4	Form of Depositary Receipt (incorporated by reference to Exhibit 4.2 to the Current Report on Form 8-K filed on November 24, 2015).
4.5	Deposit Agreement, dated November 24, 2015, among Endurance Specialty Holdings Ltd., Computershare Inc., Computershare Trust Company, N.A. and the holders from time to time of the depositary receipts described therein (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K filed on November 24, 2015).
4.6	Form of 7% Senior Note due July 15, 2034 (included in Exhibit 4.2 to the Current Report on Form 8-K on July 15, 2004). Incorporated herein by reference to Exhibit 4.3 to the Current Report on Form 8-K filed on July 15, 2004.
4.7	Indenture, dated as of July 15, 2004, between the Company, as Issuer, and The Bank of New York, as Trustee. Incorporated herein by reference to Exhibit 4.1 to the Current Report on Form 8-K filed on July 15, 2004.
4.8	First Supplemental Indenture, dated as of July 15, 2004, to the Indenture, dated as of July 15, 2004, between the Company, as Issuer, and The Bank of New York, as Trustee. Incorporated herein by reference to Exhibit 4.2 to the Current Report on Form 8-K filed on July 15, 2004.
4.9	Third Supplemental Indenture, by and between Endurance Specialty Holdings Ltd. and The Bank of New York Mellon, formerly known as the Bank of New York, dated March 26, 2010. Incorporated herein by reference to Exhibit 4.1 to the Current Report on Form 8-K filed on March 29, 2010.
4.10	Third Supplemental Indenture, dated as of July 31, 2015, between Millhill Holdings Ltd. and The Bank of New York Mellon Trust Company, National Association. Incorporated herein by reference to Exhibit 10.1 to the Current Report on Form 8-K filed on August 3, 2015.
4.11	Fourth Supplemental Indenture, dated as of July 31, 2015 between Endurance Specialty Holdings Ltd. and The Bank of New York Mellon Trust Company, National Association. Incorporated herein by reference to Exhibit 10.2 to the Current Report on Form 8-K filed on August 3, 2015.
10.1	Credit Agreement, dated as of March 23, 2016, by and among Endurance Specialty Holdings Ltd., various designated subsidiary borrowers, the lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent, incorporated herein by reference to Exhibit 10.1 to the Current Report on Form 8-K filed on March 28, 2016.

201

10.2	Pledge and Security Agreement, dated as of March 23, 2016, by and among Endurance Specialty Holdings Ltd., various designated subsidiary borrowers, Deutsche Bank Trust Company Americas, as collateral agent, Deutsche Bank Trust Company Americas, as custodian and JPMorgan Chase Bank, N.A., as administrative agent, incorporated herein by reference to Exhibit 10.2 to the Current Report on Form 8-K filed on March 28, 2016.
10.3	Account Control Agreement, dated as of March 23, 2016, by and among Endurance Specialty Holdings Ltd., various designated subsidiary borrowers, Deutsche Bank Trust Company Americas, as collateral agent, and Deutsche Bank Trust Company Americas, as custodian, incorporated herein by reference to Exhibit 10.3 to the Current Report on Form 8-K filed on March 28, 2016.
10.4	Underwriting Agreement, by and between Endurance Specialty Holdings Ltd. and Banc of America Securities LLC, as representative of the several underwriters named therein, dated March 23, 2010. Incorporated herein by reference to Exhibit 1.1 to the Current Report on Form 8-K filed on March 29, 2010.
10.5	2007 Equity Incentive Plan. Incorporated herein by reference to Exhibit 10.4 to the Quarterly Report on Form 10-Q for the quarter ended March 31, 2007.**
10.6	Amendment No. 1 to 2007 Equity Incentive Plan. Incorporated herein by reference to Exhibit 10.1 to the Quarterly Report on Form 10-Q for the quarter ended June 30, 2008.**
10.7	Amendment No. 2 to 2007 Equity Incentive Plan. Incorporated herein by reference to Exhibit 10.12 to the Annual Report on Form 10-K for the year ended December 31, 2010.**
10.8	Form of Restricted Share Agreement. Incorporated herein by reference to Exhibit 10.9 to the Annual Report on Form 10-K for the year ended December 31, 2015.**
10.9	Form of Long-Term Incentive Agreement. Incorporated herein by reference to Exhibit 10.1 to the Quarterly Report on Form 10-Q for the period ended September 30, 2015.**
10.10	Form of Performance Based Restricted Share Agreement. Incorporated herein by reference to Exhibit 10.11 to the Annual Report on Form 10-K for the year ended December 31, 2015.**
10.11	Form of Swiss Restricted Share Unit Agreement. Incorporated herein by reference to Exhibit 10.12 to the Annual Report on Form 10-K for the year ended December 31, 2015.**
10.12	Form of Director Restricted Share Agreement. Incorporated herein by reference to Exhibit 10.13 to the Annual Report on Form 10-K for the year ended December 31, 2015.**
10.13	Form of Restricted Share Unit Assumption Agreement. Incorporated herein by reference to Exhibit 10.3 to Post-Effective Amendment No. 1 on Form S-8 to Form S-4 filed on August 3, 2015.**
10.14	2015 Employee Share Purchase Plan. Incorporated herein by reference to Exhibit 4.1 to the Registration Statement on Form S-8 filed on July 10, 2015.**
10.15	Employment Agreement, dated May 28, 2013, by and between the Company and John R. Charman. Incorporated herein by reference to Exhibit 10.1 to the Current Report on Form 8-K filed on May 31, 2013.**
10.16	Restricted Share Agreement, dated May 28, 2013, by and between the company and John R. Charman. Incorporated herein by reference to Exhibit 10.2 to the Current Report on Form 8-K filed on May 31, 2013.**
10.17	Option Agreement, dated May 28, 2013, by and between the Company and John R. Charman. Incorporated herein by reference to Exhibit 10.3 to the Current Report on Form 8-K filed on May 31, 2013.**
10.18	Indemnification Agreement, dated May 28, 2013, by and between the Company and John R. Charman. Incorporated herein by reference to Exhibit 10.4 to the Current Report on Form 8-K filed on May 31, 2013.**
10.19	Share Purchase Agreement, dated May 28, 2013, by and between Dragon Global Holdings Ltd. and the Company. Incorporated herein by reference to Exhibit 10.5 to the Current Report on Form 8-K filed on May 31, 2013.
10.20	Share Purchase Agreement, dated May 28, 2013, by and between The Fortis Trust and the Company. Incorporated herein by reference to Exhibit 10.6 to the Current Report on Form 8-K filed on May 31, 2013.
10.21	Share Purchase Agreement, dated May 28, 2013, by and between The Prometheus Trust and the Company. Incorporated herein by reference to Exhibit 10.7 to the Current Report on Form 8-K filed on May 31, 2013.
10.22	Shareholders' Agreement, dated May 28, 2013, by and among John R. Charman, Dragon Global Holdings Ltd. and the Company. Incorporated herein by reference to Exhibit 10.8 to the Current Report on Form 8-K filed on May 31, 2013.

202

10.23	Amended and Restated Employment Agreement, dated October 5, 2016, by and among Endurance Specialty Holdings Ltd., Volcano International Limited and John R. Charman. Incorporated herein by reference to Exhibit 10.1 to the Current Report on Form 8-K filed on October 5, 2016. **
10.24	Amended and Restated Indemnification Agreement, dated October 5, 2016, by and between Endurance Specialty Holdings Ltd. and John R. Charman. Incorporated herein by reference to Exhibit 10.2 to the Current Report on Form 8-K filed on October 5, 2016. **
10.25	Form of Amended and Restated Employment Agreement. Incorporated herein by reference to Exhibit 10.1 to the Current Report on Form 8-K filed on January 12, 2016.**
10.26	Form of Amended and Restated Employment Agreement. Incorporated herein by reference to Exhibit 10.3 to the Current Report on Form 8-K filed on October 5, 2016. **
10.27	Amended and Restated Employment Agreement, dated January 27, 2016, by and between the Company and John A. Kuhn. Incorporated herein by reference to Exhibit 10.1 to the Current Report on Form 8-K filed on February 2, 2016.**
10.28	Independent Contractor Agreement, dated April 1, 2016, by and between Endurance Services Limited and Jerome Faure, incorporated herein by reference to Exhibit 10.1 to the Current Report on Form 8-K filed on April 5, 2016. **
10.29	Form of Amended and Restated Indemnification Agreement. Incorporated herein by reference to Exhibit 10.2 to the Current Report on Form 8-K filed on January 12, 2016. **
10.30	Form of Amended and Restated Indemnification Agreement. Incorporated herein by reference to Exhibit 10.4 to the Current Report on Form 8-K filed on October 5, 2016. **
10.31	Amended and Restated Indemnification Agreement dated January 27, 2016, by and between the Company and John A. Kuhn. Incorporated herein by reference to Exhibit 10.2 to the Current Report on Form 8-K filed on February 2, 2016. **
10.32	Form of Director Indemnification Agreement. Incorporated herein by reference to Exhibit 10.2 to the Current Report on Form 8-K filed on December 24, 2008.**
10.33	Letter dated December 23, 2015 by and among Michael J. McGuire, Endurance Specialty Holdings Ltd. and Blue Capital Reinsurance Holdings Ltd. Incorporated herein by reference to Exhibit 10.1 to the Current Report on Form 8-K filed on December 23, 2015.
10.34	Voting Agreement, dated as of March 31, 2015, by and among Endurance Specialty Holdings Ltd. and Charlesbank Equity Fund VII, Limited Partnership; CB Offshore Equity Fund VII, L.P.; CB Parallel Fund VII, Limited Partnership; Charlesbank Coinvestment Partners, Limited Partnership; and Charlesbank Equity Coinvestment Fund VII, Limited Partnership, incorporated herein by reference to Exhibit 10.1 to the Current Report on Form 8-K filed on April 1, 2015.
10.35	Clawback Agreement for Long-Term Incentive Payment. **
21.1	Subsidiaries of the Registrant.
23.1	Consent of Independent Registered Public Accounting Firm.
31.1	Certification of Chief Executive Officer pursuant to Rule 13a-14(a) of the Exchange Act.
31.2	Certification of Chief Financial Officer pursuant to Rule 13a-14(a) of the Exchange Act.
32	Certifications Pursuant to 18 U.S.C Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101	Interactive data files pursuant to Rule 405 of Regulation S-T: (i) the Condensed Consolidated Balance Sheets as at December 31, 2015 and December 31, 2014; (ii) the Condensed Consolidated Statements of Income and Comprehensive Income for the years ended December 31, 2015, 2014 and 2013; (iii) the Condensed Consolidated Statements of Changes in Shareholders' Equity for the years ended December 31, 2015 and 2014; (iv) the Condensed Consolidated Statements of Cash Flows for the years ended December 31, 2015, 2014 and 2013; and (v) the Notes to the Condensed Consolidated Financial Statements for the years ended December 31, 2015, 2014 and 2013.

** Management contract or compensatory plan or arrangement.

Pursuant to Item 601(b)(4)(iii) of Regulation S-K, copies of certain instruments defining the rights of holders of the Company's debt are not filed and, in lieu thereof, the Company agrees to furnish copies to the SEC upon request.

203

EX-10.35

Exhibit 10.35

Clawback Agreement for Long-Term Incentive Payment

I, understand that Endurance Specialty Holdings Ltd., a Bermuda company, or one of its subsidiaries (the “Company”), will provide me with a cash payment in lieu of my [YEAR] LTI award (the “LTI Payment”) on or prior to [DATE], subject to my execution of this agreement by [DATE].

I agree that in the event that either (i) the Company terminates my employment with the Company for Cause (as defined below) or (ii) I terminate my employment with the Company for any reason and, in either case, the last day of my employment with the Company is on or prior to [DATE], I (A) agree to reimburse the Company on or prior to the last day of my employment with the Company for the total amount of the LTI Payment (gross of taxes) and (B) authorize the Company, to the fullest extent lawfully permissible, to reduce any payment due to me in connection with my employment with the Company, up to the full amount of the unreimbursed portion of the LTI Payment (gross of taxes).

For purposes of this agreement, the term "for Cause" shall mean (i) any intentional act of fraud, embezzlement or theft by me in connection with or in the course of my employment with the Company or my admission or conviction of, or plea of nolo contendere to, (x) a felony or (y) any crime involving moral turpitude, fraud, embezzlement, theft or misrepresentation; (ii) my gross negligence or willful misconduct, resulting in a loss to the Company or any of its subsidiaries or affiliates or (iii) any violation by me of any statutory or common law duty of loyalty to the Company or any of its subsidiaries or affiliates.

All disputes, controversies or claims arising out of, relating to or in connection with this agreement, the LTI Payment, or the breach, termination or validity thereof, shall be finally settled by arbitration. The arbitration shall be conducted in accordance with the rules of the International Chamber of Commerce except as same may be modified herein or by mutual agreement of the parties. The seat of the arbitration shall be Bermuda and it shall be conducted in the English language. The arbitration shall be conducted by one arbitrator who shall be selected by the agreement of the Company and me or, in the event that the Company and I are unable to agree, by the Appointments Committee of the Chartered Institute of Arbitrators, Bermuda Branch. The arbitral award shall be in writing, shall state reasons for the award, and shall be final and binding on the parties. The award may include an award of costs, including reasonable attorneys’ fees and disbursements. Judgment on the award may be entered by any court having jurisdiction thereof or having jurisdiction over the parties or their assets.

No waiver of any provision hereof shall be effective unless made in writing and signed by the waiving party. The failure of any party to require the performance of any term or

obligation of this agreement, or the waiver by any party of any breach of this agreement, shall not prevent any subsequent enforcement of such term or obligation or be deemed a waiver of any subsequent breach.

This agreement contains the entire understanding and agreement of the parties hereto concerning the subject matter hereof, and supersedes all earlier negotiations and understandings, written or oral, between the parties hereto with respect thereto. This agreement may be amended or modified only by a written instrument signed by me and a duly authorized representative of the Company. This agreement will be severable, and the invalidity or unenforceability of any term or provision hereof will not affect the validity or enforceability of this agreement or of any other term or provision hereof.

In the event you are an executive officer of the Company who meets the specifications under Rule 3b-7 under the U.S. Securities Exchange Act of 1934, as amended, you hereby acknowledge and agree that the LTI Payment is subject to the Company’s Recoupment Policy and the Company’s remedies under the Recoupment Policy include but are not limited to repayment of the LTI Payment.

This agreement is not a contract of employment, and the terms of my employment or my relationship with the Company shall not be affected in any way by this agreement except as specifically provided herein.

This agreement shall be construed under and be governed in all respects by the laws of the Bermuda, without regard to its conflicts of law principles.

EX-21.1

Exhibit 21.1

SUBSIDIARIES OF THE REGISTRANT

Subsidiary	Jurisdiction of Operation
Endurance Specialty Insurance Ltd.	Bermuda
Endurance U.S. Holdings Corp.	United States
Endurance Assurance Corporation	United States
Endurance Worldwide Insurance Limited	England

EX-23.1

Exhibit 23.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We consent to the incorporation by reference in the following Registration Statements:

(1) Registration Statement (Form S-8 No. 333-205600) pertaining to the 2015 Employee Share Purchase Plan of Endurance Specialty Holdings Ltd.;

(2) Registration Statements (Form S-8 No. 333-172597, Post-Effective Amendment No. 1 on Form S-8 No. 333-204019 and Form S-8 No. 333-207238) pertaining to the 2007 Equity Incentive Plan of Endurance Specialty Holdings Ltd., and

(3) Registration Statement (Form S-3ASR No. 333-200914) of Endurance Specialty Holdings Ltd.

Of our reports dated March 1, 2017, with respect to the consolidated financial statements and schedules of Endurance Specialty Holdings Ltd. and the effectiveness of internal control over financial reporting of Endurance Specialty Holdings Ltd. included in this Annual Report (Form 10-K) for the year ended December 31, 2016.

/s/ Ernst & Young Ltd.

Hamilton, Bermuda

March 1, 2017

EX-31.1

Exhibit 31.1

Endurance Specialty Holdings Ltd.

Certification of Chief Executive Officer

Pursuant to Rule 13a-14(a)

I, John R. Charman, certify that:

1. I have reviewed this annual report on Form 10-K of Endurance Specialty Holdings Ltd.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation;

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	March 1, 2017	By:	/s/ John R. Charman
			Chief Executive Officer

EX-31.2

Exhibit 31.2

Endurance Specialty Holdings Ltd.

Certification of Chief Financial Officer

Pursuant to Rule 13a-14(a)

I, Michael J. McGuire, certify that:

1. I have reviewed this annual report on Form 10-K of Endurance Specialty Holdings Ltd.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation;

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	March 1, 2017	By:	/s/ Michael J. McGuire
			Chief Financial Officer

EX-32

Exhibit 32

Endurance Specialty Holdings Ltd.

CERTIFICATION PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report on Form 10-K of Endurance Specialty Holdings Ltd. (the "Company") for the annual period ended December 31, 2016 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), the undersigned, in the capacities and on the dates indicated below, each hereby certify pursuant to 18 U.S.C. section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that (1) to the best of his knowledge the Report fully complies with requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and (2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	March 1, 2017	By:	/s/ John R. Charman
			John R. Charman
			Chief Executive Officer
Date:	March 1, 2017	By:	/s/ Michael J. McGuire
			Michael J. McGuire
			Chief Financial Officer

This certification accompanies the Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of Section18 of the Securities Exchange Act of 1934, as amended.

XML

Document And Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2016	Feb. 27, 2017	Jun. 30, 2016
Document and Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	FY
Entity Registrant Name	Endurance Specialty Holdings Ltd.
Entity Central Index Key	0001179755
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Well-known Seasoned Issuer	Yes
Entity Common Stock, Shares Outstanding		67,616,222
Entity Public Float			$ 3,747,152,576

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
ASSETS
Fixed maturity investments, trading at fair value (amortized cost: $2,727,271 and $1,611,079 at December 31, 2016 and 2015, respectively)	$ 2,740,055	$ 1,587,160
Fixed maturity investments, available for sale at fair value (amortized cost: $3,538,227 and $4,361,997 at December 31, 2016 and 2015, respectively)	3,572,766	4,359,019
Short-term investments, trading at fair value (amortized cost: $330,305 and $394,096 at December 31, 2016 and 2015, respectively)	330,199	394,111
Short-term investments, available for sale at fair value (amortized cost: $78,506 and $25,657 at December 31, 2016 and 2015, respectively)	78,505	25,685
Equity securities, trading at fair value (cost: $16,094 and $15,290 at December 31, 2016 and 2015, respectively)	16,056	15,229
Equity securities, available for sale at fair value (cost: $461,684 and $542,429 at December 31, 2016 and 2015, respectively)	485,085	513,585
Other investments	588,308	872,617
Total investments	7,810,974	7,767,406
Cash and cash equivalents	1,149,541	1,177,750
Premiums receivable, net	1,657,752	1,376,328
Insurance and reinsurance balances receivable	110,183	102,403
Deferred acquisition costs	276,639	255,501
Prepaid reinsurance premiums	711,695	498,574
Reinsurance recoverable on unpaid losses	1,213,129	907,944
Reinsurance recoverable on paid losses	273,789	288,026
Accrued investment income	35,853	30,213
Goodwill and intangible assets	468,374	553,960
Deferred tax asset	71,802	64,164
Net receivable on sales of investments	54,620	31,873
Other assets	288,510	187,383
Total assets	14,122,861	13,241,525
LIABILITIES
Reserve for losses and loss expenses	4,905,138	4,510,415
Reserve for unearned premiums	1,994,676	1,789,148
Deposit liabilities	14,013	13,674
Reinsurance balances payable	784,162	661,213
Debt	705,292	717,650
Net payable on purchases of investments	181,337	63,442
Deferred tax liability	13,074	17,315
Other liabilities	383,036	344,596
Total liabilities	8,980,728	8,117,453
Commitments and contingent liabilities
SHAREHOLDERS' EQUITY
Preferred shares, total liquidation preference $230,000 (2015 - $460,000)	9	9,209
Common shares, ordinary - 67,627,901 issued and outstanding (2015 - 66,797,991)	67,628	66,798
Additional paid-in capital	1,961,917	2,145,836
Accumulated other comprehensive loss	(58,749)	(46,634)
Retained earnings	2,911,634	2,681,053
Total shareholders' equity available to Endurance Holdings	4,882,439	4,856,262
Non-controlling interests	259,694	267,810
Total shareholders' equity	5,142,133	5,124,072
Total liabilities and shareholders' equity	$ 14,122,861	$ 13,241,525

XML

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Investments [Abstract]
Fixed maturity investments, trading, amortized cost	$ 2,727,271	$ 1,611,079
Fixed maturity investments, available for sale, amortized cost	3,538,227	4,361,997
Short-term investments, trading, amortized cost	330,305	394,096
Short-term investments, available for sale, amortized cost	78,506	25,657
Equity securities, trading, cost	16,094	15,290
Equity securities, available for sale, cost	461,684	542,429
Stockholders' Equity, Number of Shares, Par Value and Other Disclosures [Abstract]
Preferred shares, total liquidation preference	$ 230,000	$ 460,000
Common shares, ordinary, number of shares issued	67,627,901	66,797,991
Common shares, ordinary, number of shares outstanding	67,627,901	66,797,991

XML

Consolidated Statements Of Income And Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Revenues
Gross premiums written	$ 4,202,170	$ 3,320,861	$ 2,894,076
Ceded premiums written	(1,832,235)	(1,370,391)	(959,870)
Net premiums written	2,369,935	1,950,470	1,934,206
Change in unearned premiums	(6,275)	27,983	(70,228)
Net premiums earned	2,363,660	1,978,453	1,863,978
Net investment income	176,590	113,826	131,543
Net realized and unrealized (losses) gains	(12,419)	12,660	14,283
Net impairment losses recognized in earnings	(10,769)	(3,715)	(625)
Other underwriting loss	(909)	(3,694)	(5,786)
Total revenues	2,516,153	2,097,530	2,003,393
Expenses
Net losses and loss expenses	1,321,052	917,108	970,162
Acquisition expenses	460,483	347,885	319,513
General and administrative expenses	248,146	259,791	247,387
Corporate expenses	51,706	114,429	66,200
Amortization of intangibles	84,624	30,620	6,484
Net foreign exchange (gains) losses	(74,684)	26,964	3,839
Interest expense	43,860	41,260	40,968
Total expenses	2,135,187	1,738,057	1,654,553
Income before income taxes	380,966	359,473	348,840
Income tax benefit (expense)	181	(4,362)	(390)
Net income	381,147	355,111	348,450
Net income attributable to non-controlling interests	(24,130)	(11,016)	0
Net income available to Endurance Holdings	357,017	344,095	348,450
Preferred dividends	(23,799)	(32,750)	(32,750)
Net income available to Endurance Holdings' common and participating common shareholders	333,218	311,345	315,700
Comprehensive income
Net income	381,147	355,111	348,450
Other comprehensive (loss) income
Net unrealized holding gains (losses) on investments arising during the period (net of other-than-temporary impairment losses recognized in other comprehensive (loss) income, reclassification adjustment and applicable deferred income tax (expense) benefit in 2016 - ($8,804); 2015 - $5,890; 2014 - ($4,121))	74,121	(98,738)	40,150
Foreign currency translation adjustments	(86,324)	(24,690)	(26,264)
Reclassification adjustment for net losses on derivatives designated as cash flow hedge included in net income	88	88	89
Other comprehensive (loss) income	(12,115)	(123,340)	13,975
Comprehensive income	369,032	231,771	362,425
Comprehensive income attributable to non-controlling interests	(24,130)	(11,016)	0
Comprehensive income attributable to Endurance Holdings common and participating common shareholders	$ 344,902	$ 220,755	$ 362,425
Per share data
Basic earnings per common share	$ 4.94	$ 5.74	$ 7.07
Diluted earnings per common share	$ 4.93	$ 5.73	$ 7.06

XML

Consolidated Statements Of Income And Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Statement of Comprehensive Income [Abstract]
Deferred income taxes on net unrealized holding gains (losses) on investments	$ (8,804)	$ 5,890	$ (4,121)

XML

Consolidated Statements Of Changes In Shareholders' Equity - USD ($) $ in Thousands	Total	Preferred shares	Common shares	Additional paid-in capital	Accumulated other comprehensive (loss) income	Cumulative foreign currency translation adjustments	Unrealized holding gains (losses) on investments, net of deferred taxes	Accumulated derivative loss on cash flow hedging instruments	Retained earnings
Balance, beginning of year at Dec. 31, 2013		$ 17,200	$ 44,369	$ 569,116		$ 18,636	$ 45,950	$ (1,855)	$ 2,193,133
Issuance of Series C, non-cumulative preferred shares		0		0
Redemption of Series A and B, non-cumulative preferred shares		0		0
Issuance of common shares, net of forfeitures			396	2,143
Public offering and registration costs				0
Settlement of equity awards				(4,039)
Stock-based compensation expense				31,006
Foreign currency translation adjustments	$ (26,264)					(26,264)
Net unrealized holding gains (losses) arising during the year, net of other-than-temporary impairment losses and reclassification adjustment	40,150						40,150
Net change from current period hedging transactions, net of reclassification adjustment								89
Net income	348,450								348,450
Net income attributable to non-controlling interests	0								0
Dividends on preferred shares	(32,750)								(32,750)
Dividends on common shares									(60,548)
Balance, end of year at Dec. 31, 2014	3,185,182	17,200	44,765	598,226	$ 76,706	(7,628)	86,100	(1,766)	2,448,285
Non-controlling interests	0
Total shareholders' equity	3,185,182
Issuance of Series C, non-cumulative preferred shares		9		222,954
Redemption of Series A and B, non-cumulative preferred shares		(8,000)		(192,000)
Issuance of common shares, net of forfeitures			22,033	1,476,615
Public offering and registration costs				(936)
Settlement of equity awards				(14,535)
Stock-based compensation expense				55,512
Foreign currency translation adjustments	(24,690)					(24,690)
Net unrealized holding gains (losses) arising during the year, net of other-than-temporary impairment losses and reclassification adjustment	(98,738)						(98,738)
Net change from current period hedging transactions, net of reclassification adjustment								88
Net income	355,111								355,111
Net income attributable to non-controlling interests	(11,016)								(11,016)
Dividends on preferred shares	(32,750)								(32,750)
Dividends on common shares									(78,577)
Balance, end of year at Dec. 31, 2015	4,856,262	9,209	66,798	2,145,836	(46,634)	(32,318)	(12,638)	(1,678)	2,681,053
Non-controlling interests	258,529
Net income attributable to non-controlling interests	(11,016)
Balance, end of year at Dec. 31, 2015	4,856,262	9,209	66,798	2,145,836	(46,634)	(32,318)	(12,638)	(1,678)	2,681,053
Non-controlling interests	267,810
Total shareholders' equity	5,124,072
Issuance of Series C, non-cumulative preferred shares		0		0
Redemption of Series A and B, non-cumulative preferred shares		(9,200)		(219,767)
Issuance of common shares, net of forfeitures			830	11,135
Public offering and registration costs				0
Settlement of equity awards				(11,732)
Stock-based compensation expense				36,445
Foreign currency translation adjustments	(86,324)					(86,324)
Net unrealized holding gains (losses) arising during the year, net of other-than-temporary impairment losses and reclassification adjustment	74,121						74,121
Net change from current period hedging transactions, net of reclassification adjustment								88
Net income	381,147								381,147
Net income attributable to non-controlling interests	(24,130)								(24,130)
Dividends on preferred shares	(23,799)								(23,799)
Dividends on common shares									(102,637)
Balance, end of year at Dec. 31, 2016	4,882,439	$ 9	$ 67,628	$ 1,961,917	$ (58,749)	$ (118,642)	$ 61,483	$ (1,590)	$ 2,911,634
Non-controlling interests	259,694
Total shareholders' equity	$ 5,142,133

XML

Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cash flows provided by operating activities:
Net income	$ 381,147	$ 355,111	$ 348,450
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of net premium on investments	33,285	45,317	45,757
Amortization of other intangibles and depreciation	105,026	51,457	27,234
Net realized and unrealized losses (gains)	12,419	(12,660)	(14,283)
Net impairment losses recognized in earnings	10,769	3,715	625
Deferred taxes	(19,709)	(2,727)	(1,414)
Stock-based compensation expense	36,445	55,512	31,006
Equity in earnings of other investments	(12,442)	13,553	(19,609)
Premiums receivable, net	(281,424)	(153,735)	(214,252)
Insurance and reinsurance balances receivable	(7,780)	33,729	5,508
Deferred acquisition costs	(21,138)	(48,133)	(21,341)
Prepaid reinsurance premiums	(213,121)	(74,944)	(167,731)
Reinsurance recoverable on unpaid losses	(305,185)	(197,097)	(77,040)
Reinsurance recoverable on paid losses	14,237	(61,748)	(54,071)
Accrued investment income	(5,640)	5,840	(3,079)
Other assets	(6,855)	(25,683)	(17,132)
Reserve for losses and loss expenses	394,723	(57,375)	(155,400)
Reserve for unearned premiums	205,528	36,036	235,668
Deposit liabilities	339	(1,462)	(4,322)
Reinsurance balances payable	122,949	204,557	194,650
Other liabilities	(28,081)	76,194	127,037
Net cash flows provided by operating activities	415,492	245,457	266,261
Cash flows (used in) provided by investing activities
Proceeds from sales and maturities of trading investments	3,115,204	626,914	0
Proceeds from sales and maturities of available for sale investments	3,477,688	5,725,794	4,145,940
Proceeds from the redemption of other investments	355,325	188,060	154,655
Purchases of trading investments	(4,091,588)	(1,080,478)	0
Purchases of available for sale investments	(2,752,599)	(5,421,949)	(4,449,225)
Purchases of other investments	(58,222)	(221,457)	(59,023)
Net (purchases) settlements of other assets	(47,450)	21,273	11,665
Purchases of fixed assets	(17,568)	(26,988)	(40,932)
Net cash (paid for) received from subsidiary acquisition	(12)	675,624	39
Net cash flows (used in) provided by investing activities	(19,222)	486,793	(236,881)
Cash flows used in financing activities
Issuance of common shares	10,076	24,823	2,305
Issuance of Series C, non-cumulative preferred shares	0	222,963	0
Redemption of Series A and B, non-cumulative preferred shares	(230,000)	(200,000)	0
Settlement of equity awards	(11,732)	(14,535)	(4,039)
Net distributions to non-controlling interests	(32,246)	(1,739)	0
Offering and registration costs paid	(319)	(617)	0
Proceeds from issuance of repurchase agreements	120,990	0	0
Repayment of repurchase agreements	(120,990)	0	0
Bridge facility costs paid	0	0	(4,750)
Proceeds from issuance of debt	537	5,008	706
Repayments of debt	(13,683)	(199,454)	(686)
Dividends on preferred shares	(23,799)	(32,750)	(32,750)
Dividends on common shares	(102,417)	(78,473)	(60,524)
Net cash flows used in financing activities	(403,583)	(274,774)	(99,738)
Effect of exchange rate changes on cash and cash equivalents	(20,896)	(25,198)	(30,021)
Net (decrease) increase in cash and cash equivalents	(28,209)	432,278	(100,379)
Cash and cash equivalents, beginning of year	1,177,750	745,472	845,851
Cash and cash equivalents, end of year	$ 1,149,541	$ 1,177,750	$ 745,472

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Organization

12 Months Ended

Dec. 31, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization

1.     Organization

Endurance Specialty Holdings Ltd. ("Endurance Holdings", together with its subsidiaries, the "Company") was organized as a Bermuda holding company on June 27, 2002. On July 31, 2015, the Company acquired all of the outstanding common shares of Montpelier Re Holding Ltd. ("Montpelier"), a Bermuda based provider of global property and casualty reinsurance and insurance products. As part of the acquisition, the Company acquired Montpelier's Lloyd's of London ("Lloyd's") operations, including Syndicate 5151 ("Syndicate 5151") and its managing agent, Endurance at Lloyd's Limited ("Endurance at Lloyd's"). Also as part of the acquisition, the Company acquired Montpelier's collateralized reinsurance and third party asset management operations, operating under the name "Blue Capital", which includes Blue Capital Management Ltd. ("BCML"), a wholly-owned subsidiary that provides investment and insurance management services to the Blue Capital vehicles primarily through business written in Blue Water Re Ltd. ("Blue Water Re") and Blue Water Re II Ltd. ("Blue Water Re II"), wholly-owned special purpose insurers. See Note 4, Investments, for additional information with respect to the Blue Capital entities. The Company's Consolidated Statements of Income and Comprehensive Income for the year ended December 31, 2015 include the results of operations of Montpelier from August 1, 2015. For additional information on the acquisition of Montpelier, see Note 3, Acquisition of Montpelier.

On October 5, 2016, the Company entered into an agreement and plan of merger (the "Merger Agreement") for the acquisition of 100% of the outstanding ordinary shares of the Company by SOMPO for $93.00 per share in cash (the "Merger"). The Merger has been approved by each company's Board of Directors and the Company's ordinary and preferred shareholders at a special general meeting. The Merger is expected to close as soon as practicable following the satisfaction of customary closing conditions including, but not limited to, regulatory approvals. There can be no assurance that the Merger will occur.

Under the terms of the Merger Agreement, the aggregate consideration for the Merger will be approximately $6,304.0 million in cash. The purchase will be financed by SOMPO from existing sources of liquidity and supplementary facilities. If the Merger is terminated under certain circumstances, the Company is obligated to pay SOMPO a cash termination fee of $204.9 million together with SOMPO's expenses related to the Merger up to $15.8 million. The Company is contractually obligated to pay investment banking fees upon the closing of the Merger.

Endurance Holdings writes specialty lines of insurance and reinsurance on a global basis through its wholly-owned operating subsidiaries:

Operating Subsidiaries	Domicile
Endurance Specialty Insurance Ltd. ("Endurance Bermuda")	Bermuda
Blue Capital Management Ltd., manager of Blue Water Re Ltd. and Blue Water Re II Ltd.	Bermuda
Endurance Worldwide Insurance Limited ("Endurance U.K.")	England
Endurance at Lloyd's, managing agent for Lloyd's Syndicate 5151	England
Endurance Assurance Corporation ("Endurance Assurance", formerly Endurance Reinsurance Corporation of America)	Delaware
Endurance American Insurance Company ("Endurance American")	Delaware
Endurance American Specialty Insurance Company ("Endurance American Specialty")	Delaware
Endurance Risk Solutions Assurance Co. ("Endurance Risk Solutions")	Delaware
American Agri-Business Insurance Company ("American Agri-Business"), managed by ARMtech Insurance Services, Inc. (together with American Agri-Business, "ARMtech")	Texas

In addition, as part of the Blue Capital operations Endurance Holdings and Endurance Bermuda together own 33.3% of Blue Capital Reinsurance Holdings Ltd. ("BCRH") and Endurance Bermuda owns 25.2% of Blue Capital Global Reinsurance Fund Limited ("BCGR").

BCRH is a Bermuda-based exempted limited liability holding company managed by BCML that provides fully-collateralized property catastrophe reinsurance and invests in various insurance-linked securities through its wholly-owned Bermuda-based subsidiaries, Blue Capital Re. Ltd. ("Blue Capital Re") and Blue Capital Re ILS Ltd. ("Blue Capital Re ILS"). BCRH's shares are listed on the New York Stock Exchange and the Bermuda Stock Exchange.

BCGR is a closed-ended mutual fund incorporated in Bermuda and managed by BCML that serves as the feeder fund for the Blue Capital Global Reinsurance SA-1 cell (the "BCGR Cell"). BCGR's shares are listed on the Specialist Fund Market of the London Stock Exchange and on the Bermuda Stock Exchange.

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Summary Of Significant Accounting Policies

12 Months Ended

Dec. 31, 2016

Accounting Policies [Abstract]

Summary Of Significant Accounting Policies

2.     Significant accounting policies

The consolidated financial statements have been prepared on the basis of accounting principles generally accepted in the United States ("U.S. GAAP") and include the accounts of Endurance Holdings and its wholly-owned subsidiaries, and BCRH and the BCGR Cell. All intercompany transactions and balances have been eliminated in consolidation. The following are significant accounting and reporting policies adopted by the Company:

(a) Premiums and related expenses

The Company's insurance premiums are earned pro rata over the term of the applicable risk period specified in the insurance policy. The Company's insurance policies cover losses occurring or claims made during the term of the policy. Generally, the Company receives a fixed premium which is identified in the policy and is recorded on the inception date of the contract or when premiums are determinable and earned evenly over the policy term. This premium will only adjust if the underlying insured values adjust. Accordingly, the Company monitors the underlying insured values and records additional or return premiums in the period in which amounts are reasonably determinable.

The Company's reinsurance premiums are earned in proportion to the amount of reinsurance protection provided over the applicable risk period established in the reinsurance contract. Reinsurance contracts written on a losses occurring basis cover losses which occur during the term of the reinsurance contract, typically 12 months. Accordingly, the Company earns the premium on a losses occurring reinsurance contract evenly over the reinsurance contract term. Reinsurance contracts written on a policies attaching basis cover losses from the underlying insurance policies incepting during the terms of the reinsurance contracts. Losses under a policies attaching reinsurance contract may occur after the end date of the reinsurance contract, so long as they are losses from policies that began during the reinsurance contract period. The Company typically earns the premiums for policies attaching reinsurance contracts over a 24-month period in proportion to the amount of reinsurance protection provided to reflect the extension of the risk period past the term of the contract and the varying levels of reinsurance protection provided during the reinsurance contract period.

In addition to the applicable risk period, the Company's estimate of its reinsurance premiums written is based on the type of reinsurance contracts underwritten. For excess of loss reinsurance contracts, the deposit premium, as defined in the contract, is generally considered to be the best estimate of the reinsurance contract's written premium at inception. The Company earns reinstatement premiums upon the occurrence of a loss under the reinsurance contract. Reinstatement premiums are calculated in accordance with the contract terms based upon the ultimate loss estimate associated with each contract. For proportional reinsurance contracts, the Company estimates premium, commissions and related expenses based on broker and ceding company estimates and also utilizes judgment in establishing proportional reinsurance contract estimates.

Premiums on the Company's excess of loss and proportional reinsurance contracts are estimated at the time the business is underwritten. Accordingly, this is the amount the Company records as written premium in the period the reinsurance contract is underwritten. As actual premiums are reported by the ceding companies, management evaluates the appropriateness of the original premium estimates and any adjustments to these estimates are recorded in the period in which they become known.

Premiums receivable are recorded at amounts due less any allowance for estimated uncollectible premiums receivable. At December 31, 2016, the Company had an allowance for estimated uncollectible premiums receivable of $6.2 million (2015 - $7.4 million).

Acquisition expenses are costs that vary with and are directly related to the successful production of new and renewal business, and consist principally of commissions and brokerage expenses. Acquisition and general and administrative expenses are shown net of commissions, other fees and expense allowances associated with and earned on ceded business. These costs are deferred and amortized over the periods in which the related premiums are earned. Deferred acquisition costs are limited to their estimated realizable value based on the related unearned premiums. Anticipated net investment income is considered in determining the recoverability of deferred acquisition costs.

2.     Significant accounting policies, cont'd.

(b) Reserve for losses and loss expenses

The Company’s reserve for losses and loss expenses includes case reserves and reserves for losses incurred but not reported (referred to as "IBNR reserves"). Case reserves are established for losses that have been reported, but not yet paid. IBNR reserves represent a provision for claims that have been incurred but not yet reported to the Company, as well as future loss development on losses already reported, in excess of the case reserves. Case reserves and IBNR reserves are established by management based on reports from reinsurance intermediaries, ceding companies and insureds, and consultations with independent legal counsel. In addition, reserves for IBNR losses and loss expenses are established by management based on reported losses and loss expenses, and actuarially determined estimates of ultimate losses and loss expenses.

The Company uses a variety of actuarial methods to estimate the ultimate losses and loss expenses incurred by the Company. One actuarial method used by the Company to estimate reserves for losses and loss expenses is the expected loss ratio approach, which is based on expected results independent of current loss reporting activity. This approach is typically used for immature loss periods (i.e., the current accident year). Another actuarial method used by the Company to estimate reserves for losses and loss expenses is known as the Bornhuetter-Ferguson method. The Bornhuetter-Ferguson method uses an initial loss estimate (expected loss technique) for each accident year by business line and type of contract. Under this method, IBNR is set equal to the initial loss estimate multiplied by the expected percent of loss yet to be reported at each valuation date. In a given quarter, if reported losses are less than expected, then the difference would result in a decrease in estimated ultimate losses. If losses are greater than expected, then the difference would result in an increase in estimated ultimate losses. A third actuarial method used by the Company to estimate reserves for losses and loss expenses is known as the loss development method. The loss development method extrapolates the current value of reported losses to ultimate expected losses by using selected reporting patterns of losses over time. The selected reporting patterns are based on historical information (organized into loss development triangles) and are adjusted to reflect the changing characteristics of the book of business written by the Company. Management uses these multiple actuarial methods, supplemented with professional judgment, to establish the best estimate of reserves for losses and loss expenses.

The Company's loss and loss expense reserves are reviewed regularly, and adjustments, if any, are reflected in earnings in the period in which they become known. The establishment of new loss and loss expense reserves or the adjustment of previously recorded loss and loss expense reserves could result in significant positive or negative changes to the Company's financial condition for any particular period. While management believes the Company's estimate of loss and loss expense reserves is reasonable, the ultimate loss experience may not be reliably predicted, and it is possible losses and loss expenses may be materially different than the total reserve for losses and loss expenses recorded by the Company.

(c) Reinsurance

Reinsurance recoverable on paid and unpaid losses represent estimates of losses and loss expenses that will be recovered from reinsurers. Amounts recoverable from reinsurers are estimated in a manner consistent with the provisions of the reinsurance agreements and consistent with the establishment of the Company's reserve for losses and loss expenses. Ceding commissions earned on ceded business are classified as an offset to acquisition and general and administrative expenses.

(d) Investments

The Company currently classifies its fixed maturity investments, short-term investments and equity securities as trading or available for sale. Trading securities are carried at estimated fair value, with related net realized and unrealized gains or losses included in earnings. The Company acquired a portfolio of investments classified as trading from Montpelier. 

Available for sale securities are carried at estimated fair value, with related net unrealized gains or losses excluded from earnings and included in shareholders' equity as a component of accumulated other comprehensive loss. Investment transactions are recorded on a trade date basis. The Company determines the fair value of its trading and available for sale investments in accordance with current accounting guidance, which defines fair value and establishes a fair value hierarchy based on inputs to the various valuation techniques used for each fair value measurement. The use of valuation techniques for any given investment requires a significant amount of judgment and consideration of factors specific to the underlying investment. Fair value measurements determined by the Company seek to maximize observable inputs and minimize the use of unobservable inputs.

2.     Significant accounting policies, cont'd.

(d) Investments, cont'd.

Current accounting guidance establishes three levels as follows:

Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2: Quoted prices for similar assets in markets that are active, quoted prices for identical or similar assets in markets that are not active or inputs that are observable either directly or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities other than quoted prices in Level 1; quoted prices in markets that are not active; or other inputs that are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3: Unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets or liabilities. Unobservable inputs reflect the Company's own views about the assumptions that market participants would use in pricing the asset or liability. Level 3 assets and liabilities include financial instruments whose values are determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant judgment or estimation.

The Company determines the estimated fair value of each individual security utilizing the highest level inputs available.

If the Company has the intent to sell a fixed maturity or short-term security classified as available for sale in an unrealized loss position or it is more likely than not that the Company will be required to sell the available for sale security, the Company deems the security to be other-than-temporarily impaired and writes down the carrying value of the security to fair value, thereby establishing a new cost basis. The amount of the write-down is recognized in earnings as an other-than-temporary impairment ("OTTI") loss.

For fixed maturity and short-term investments classified as available for sale in an unrealized loss position for which a decision to sell has not been made and it is not more likely than not that the Company will be required to sell the security, the Company performs additional reviews to determine whether the investment will recover its amortized cost. If the amortized cost of the Company's fixed maturity and short-term investments classified as available for sale is, based upon the judgment of management, unlikely to be recovered, the Company writes down the investment by the amount representing the credit related portion of the decline in value, thereby establishing a new cost basis. The amount of the write-down is recognized in earnings as an OTTI loss. The new cost basis is not changed for subsequent recoveries in fair value.

To the extent the Company determines that the amortized cost of the Company's fixed maturity and short-term investments classified as available for sale is likely to be recovered and the decline in value is related to non-credit factors (such as interest rates, market conditions, etc.) and not due to credit related factors, that remaining non-credit portion of the unrealized loss is recorded as a part of accumulated other comprehensive loss in the shareholders' equity section of the Company's Consolidated Balance Sheets.

For equity securities classified as available for sale, the Company considers its ability and intent to hold the equity security in an unrealized loss position for a reasonable period of time to allow for a full recovery. When the Company determines that the decline in value of an equity security is other-than-temporary, the Company reduces the cost of the equity security to its fair value and recognizes the loss in the Consolidated Statements of Income and Comprehensive Income. The new cost basis is not changed for subsequent recoveries in fair value.

Other investments within the Company's investment portfolio are comprised of hedge funds, private investment funds and other investment funds that generally invest in senior secured bank debt, high yield credit securities, distressed debt, macro strategies, multi-strategy, equity long/short strategies, distressed real estate, and energy sector private equity ("alternative funds"). Other investments are accounted for using the equity method of accounting whereby the initial investment is recorded at cost. The carrying values of these investments are increased or decreased to reflect the Company's share of income or loss, which is included in net investment income, and are decreased for dividends. Due to the timing of the delivery of the final valuations reported by the managers of certain of our alternative funds, our investments in those funds are estimated based on the most recently available information including period end valuation statements, period end estimates, or, in some cases, prior month or quarter valuation statements.

2.     Significant accounting policies, cont'd.

(e) Cash equivalents and short-term investments

Cash equivalents include highly liquid short-term deposits and securities with maturities of ninety days or less at the time of purchase. Cash equivalents are valued at amortized cost, which approximates fair value due to the short-term, liquid nature of these securities. Deposits and securities with maturities greater than ninety days and less than one year are classified as short-term investments.

(f)    Intangible assets

Identifiable intangible assets are amortized in accordance with their useful lives. Goodwill and intangible assets with indefinite useful lives are not amortized but are tested for impairment annually at the beginning of the fourth quarter, or more often if impairment indicators arise. In making an assessment of the value of its goodwill and intangible assets, the Company uses both market based and non-market based valuations.

Assumptions underlying these valuations include forecasts of discounted future cash flows and future profits and comparable transactions observed in the market, in addition to an analysis of the Company’s stock price relative to both its book value and its net income.

(g) Offering and registration costs

Offering and registration costs incurred in connection with equity offerings, including investment banking fees and legal fees, are deducted from the proceeds of the offerings.

(h) Foreign exchange

Assets and liabilities of foreign operations whose functional currency is not the United States dollar are translated at exchange rates in effect at the balance sheet date. Revenues and expenses of such foreign operations are translated at weighted average exchange rates during the year. The effect of the translation adjustments for foreign operations is included in accumulated other comprehensive loss, net of applicable deferred income taxes. Other monetary assets and liabilities denominated in foreign currencies are revalued at the exchange rates in effect at the balance sheet date with the resulting net foreign exchange gains and losses included in earnings. Revenues and expenses denominated in foreign currencies are translated at the prevailing exchange rate on the transaction date.

(i) Derivatives

Current accounting guidance requires the recognition of all derivative financial instruments including embedded derivative instruments, as either assets or liabilities in the Consolidated Balance Sheets at fair value.

The Company may use various derivative instruments such as foreign exchange forward, future and option contracts; industry loss warranty swaps; interest rate futures, swaps, swaptions, and options; credit default swaps; LIBOR swaps; commodity futures and options; weather swaps and options; loss development covers; and to-be-announced mortgage-backed securities. These derivative instruments are used to manage exposure to interest rate and currency risk, to enhance the efficiency of the Company's investment portfolio, to economically hedge certain risks, and as part of its weather risk management business. Except for a cash flow hedge entered into in 2004 as disclosed in Note 9, Derivatives, these derivative instruments do not qualify, and are not designated, as hedges. Derivatives are recorded at fair value with changes in fair value and any gains or losses are recognized in net realized and unrealized (losses) gains, net foreign exchange (gains) losses, or other underwriting loss in the Consolidated Statements of Income and Comprehensive Income.

Where the Company has entered into master netting agreements with counterparties, or the Company has the legal and contractual right to offset positions, the derivative positions may be netted by the counterparty.

2.     Significant accounting policies, cont'd.

(j) Income taxes

The Company accounts for income taxes for its subsidiaries operating in taxable jurisdictions. Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. A valuation allowance is provided when it is more likely than not that some portion of the deferred tax assets will not be realized. The accounting guidance allows for the recognition of tax benefits of uncertain tax positions only where the position is more likely than not to be sustained assuming examination by tax authorities. A liability is established for any tax benefit claimed in a tax return in excess of this threshold. Income tax related interest and penalties are included as income tax expense.

(k) Stock compensation and other stock plans

The Company has a share-based employee and non-employee director equity incentive plan ("2007 Equity Incentive Plan") and other share plans, which are described more fully in Note 16, Stock-based employee compensation and other stock plans. The fair value of the compensation cost incurred under these plans is measured at the grant date and is expensed over the period for which the employee is required to provide services in exchange for the award. Forfeiture benefits are estimated at the time of grant and incorporated in the determination of share-based compensation costs. Awards under the 2007 Equity Incentive Plan generally vest over four years for employees and one year for non-employee directors.

(l) Earnings per share

The two-class method utilized by the Company is an earnings allocation formula that determines earnings per share for the holders of Endurance Holdings' ordinary shares (also referred to as "common shares") and participating common shares, which includes unvested restricted shares and restricted share units that receive cash dividends, according to dividends declared (or accumulated) and participation rights in undistributed earnings. Net income available to common and participating common shareholders is reduced by the amount of dividends declared in the current period and by the contractual amount of dividends that must be paid for the current period related to the Company's common and participating common shares. Any remaining undistributed earnings are allocated to the common and participating common shareholders to the extent that each security may share in earnings as if all of the earnings for the period had been distributed. In periods of loss, no losses are allocated to participating common shareholders. Instead, all such losses are allocated solely to the common shareholders.

Basic earnings per common share are calculated by dividing net income available to common shareholders by the weighted average number of common shares outstanding. The weighted average number of common shares excludes any dilutive effect of outstanding options and convertible securities such as unvested restricted shares and restricted share units.

Diluted earnings per common share are based on the weighted average number of common shares and assumes the exercise of all dilutive stock options and the vesting or conversion of all convertible securities such as unvested restricted shares using the two-class method described above.

(m) Use of estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported and disclosed amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

2.     Significant accounting policies, cont'd.

(n) Variable interest entity

Entities that do not have sufficient equity at risk to allow the entity to finance its activities without additional financial support or in which the equity investors, as a group, do not have the characteristic of a controlling financial interest are referred to as variable interest entities ("VIE"). A VIE is consolidated by the variable interest holder that is determined to have the controlling financial interest (primary beneficiary) as a result of having both the power to direct the activities of a VIE that most significantly impact the VIE's economic performance and the obligation to absorb losses or right to receive benefits from the VIE that could potentially be significant to the VIE. The Company determines whether it is the primary beneficiary of an entity subject to consolidation based on a qualitative assessment of the VIE's capital structure, contractual terms, nature of the VIE's operations and purpose and the Company's relative exposure to the related risks of the VIE on the date it becomes initially involved in the VIE. The Company reassesses its VIE determination with respect to an entity on an ongoing basis. See also Note 4, Investments.

(o) Non-controlling interests

The Company accounts for non-controlling interests in the shareholders' equity section of the Company's Consolidated Balance Sheets in accordance with current accounting guidance regarding consolidation. Net income attributable to non-controlling interest is presented separately in the Company's Consolidated Statements of Income and Comprehensive Income.

(p) Reclassifications

Certain comparative information has been reclassified to conform to current year presentation.

(q)     Recent accounting pronouncements

In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, "Revenue from Contracts with Customers" ("ASU 2014-09"). ASU 2014-09 provides comprehensive guidance on the recognition of revenue from customers arising from the transfer of goods and services. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for these goods or services. ASU 2014-09 also provides guidance on accounting for certain contract costs and will also require new disclosures. ASU 2014-09 was to be effective for public business entities in annual and interim periods beginning after December 15, 2016, however, in July 2015, the FASB decided to defer by one year the effective dates of ASU 2014-09, and as a result, ASU 2014-09 will be effective for public business entities in annual and interim period beginning after December 15, 2017. Early adoption is permitted. Based on initial review, the Company has determined that this standard specifically excludes revenue from the following sources: insurance contracts, Topic 944, Financial Services-Insurance and investment income; Topic 320, Investments-Debt and Equity Securities; Topic 323, Investments-Equity Methods and Joint Ventures; Topic 325, Investment-Others; and Topic 815, Derivatives and Hedging. As substantially all of the Company's revenues are subject to the topics above that are excluded from the standard, the Company has determined that this standard will not have a material impact on the Company's Consolidated Financial Statements.

In February 2015, the FASB issued ASU 2015-02, "Amendments to the Consolidation Analysis" ("ASU 2015-02"). Under ASU 2015-02, all legal entities are required to evaluate whether they should consolidate certain legal entities. ASU 2015-02 set forth amendments: (1) modifying the evaluation of whether limited partnerships and similar legal entities are VIEs or voting interest entities; (2) eliminating the presumption that a general partner should consolidate a limited partnership; (3) affecting the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships; and (4) providing a scope exception from consolidation guidance for certain reporting entities. ASU 2015-02 was effective for public business entities for annual and interim periods beginning after December 15, 2015. Early adoption was permitted. ASU 2015-02 may be applied retrospectively or by using a modified retrospective approach by recording a cumulative-effect adjustment to equity as of the beginning of the year of adoption. The Company adopted this standard on January 1, 2016 and it did not have a material impact on the Company's Consolidated Financial Statements.

2. Significant accounting policies, cont'd.

(q)     Recent accounting pronouncements, cont'd.

In May 2015, the FASB issued ASU 2015-09, "Disclosures about Short-Duration Contracts" ("ASU 2015-09"). The objective of ASU 2015-09 is to make targeted improvements to disclosure requirements for insurance companies that issue short-duration contracts. The guidance requires additional disclosures of claims development tables, frequency of reported claims, and history of claims duration. This information is required to be disaggregated so that useful information is not obscured by either the inclusion of a large amount of insignificant detail, or the aggregation of items that have significantly different characteristics. ASU 2015-09 was effective for public business entities in annual periods beginning after December 15, 2015, and interim periods within annual periods beginning after December 15, 2016. Early adoption was permitted. ASU 2015-09 should be applied retrospectively. The Company adopted this standard in the fourth quarter of 2016 and has included the appropriate annual disclosures within Note 6, Reserve for losses and loss expenses. The adoption of this standard did not have a material impact on the Company's Consolidated Financial Statements.

In January 2016, the FASB issued ASU No. 2016-01, "Recognition and Measurement of Financial Assets and Financial Liabilities" ("ASU 2016-01"). ASU 2016-01 requires equity investments (except those accounted for under the equity method of accounting or those that result in the consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income, simplifies the impairment assessment of equity investments without readily determinable values by requiring a qualitative assessment to identify impairment, eliminates the requirement to disclose the methods and significant assumptions used to estimate the fair value for financial instruments measured at amortized cost, requires the use of the exit price notion when measuring the fair value of financial instruments for disclosure purposes, requires separate presentation in other comprehensive income of the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the organization has elected to measure the liabilities in accordance with the fair value option, requires the separate presentation of financial assets and financial liabilities by measurement category and for form of years, beginning after December 15, 2015. Early adoption was permitted. The Company adopted ASU 2015-02 effective January 1, 2016 and it did not have material impact on the Company's consolidated statements of operations and financial position.

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Acquisition of Montpelier

12 Months Ended

Dec. 31, 2016

Business Combinations [Abstract]

Business Combination Disclosure [Text Block]

3.     Acquisition of Montpelier

On March 31, 2015, the Company announced the signing of a definitive agreement and plan of merger (the "Merger Agreement") with Montpelier and Millhill Holdings Ltd., a direct, wholly-owned subsidiary of the Company ("Merger Sub"), under which Endurance Holdings, through Merger Sub, acquired all of the outstanding common shares of Montpelier. The acquisition of Montpelier was completed on July 31, 2015 (the "Closing Date").

Prior to the closing of the acquisition, Montpelier was a publicly traded company listed on the New York Stock Exchange and headquartered in Bermuda. As of the close of trading on July 31, 2015, the common shares of Montpelier ceased trading.

The aggregate consideration for the transaction consisted of the issuance of 20.7 million of the Company’s ordinary shares valued at $1.4 billion and $451.1 million of cash. The cash consideration was funded through a pre-closing dividend from Montpelier of $9.89 per common share, or $451.1 million (the "Special Dividend"). In connection with the acquisition of Montpelier, the Company incurred transaction and integration related expenses of $76.6 million in the year ended December 31, 2015, which included $19.5 million related to transaction costs, including due diligence, legal, accounting and investment banking fees and expenses, $4.4 million of costs related to the integration of Montpelier and the Company, and $52.7 million of compensation-related costs associated with terminating employees of Montpelier. These expenses have all been reported as a component of corporate expenses.

3.     Acquisition of Montpelier, cont'd.

Purchase price

The Company's total purchase price for Montpelier at July 31, 2015 was calculated as follows:

Consideration paid by Endurance Holdings
Number of Montpelier common shares outstanding immediately prior to the closing of the acquisition	43,827,753
Exchange ratio	0.472
Total Company ordinary shares	20,686,699
Company ordinary share closing price on July 31, 2015	$	69.49
Total value of Company ordinary shares	$	1,437,519
Fair value of restricted share units attributable to service period prior to Closing Date(1)	$	33,327
Total consideration	$	1,470,846
Special Dividend paid by Montpelier
Number of Montpelier common shares and restricted share units eligible for special dividend	45,611,810
Special dividend paid per Montpelier common share and restricted share unit	$	9.89
Total special dividend consideration paid to Montpelier common shareholders and Montpelier equity award holders	$	451,101
Total consideration received by Montpelier common shareholders and Montpelier equity award holders	$	1,921,947
Less: Special Dividend paid by Montpelier	(451,101		)
Net purchase price	$	1,470,846

(1) Outstanding Montpelier restricted share units were assumed by the Company and adjusted as of the Closing Date to represent the right to receive 0.472 Company ordinary shares for each outstanding Montpelier restricted share unit rounded down to the next whole number of Company ordinary shares. The fair value of the Montpelier restricted share units was determined based on the closing price of the Company's ordinary shares on the Closing Date. The resulting fair value of the restricted share units was apportioned as purchase consideration based on service provided to Montpelier as of the Closing Date with the remaining fair value of these restricted share units to be recognized prospectively over the restricted share units' remaining vesting period.

Fair value of net assets acquired and liabilities assumed

The purchase price was allocated to the acquired assets and liabilities of Montpelier based on estimated fair values on July 31, 2015, the Closing Date, as detailed below. The Company recognized goodwill of $87.6 million primarily attributable to Montpelier's assembled workforce and synergies expected to result upon integration of Montpelier into the Company's operations. The Company estimates that none of the goodwill that was recorded will be deductible for income tax purposes. The allocation of the purchase price was based on information that was available to management at the time the 2015 consolidated financial statements were prepared. The allocation was subject to change as additional information became available within the measurement period, which cannot exceed 12 months from the acquisition date. The fair value recorded for these items may be subject to adjustments, which may impact the individual amounts recorded for assets acquired and liabilities assumed, as well as the residual goodwill.

3.     Acquisition of Montpelier, cont'd.

The Company identified finite lived intangible assets of $293.2 million, which will be amortized over a weighted average period of 8 years, identifiable indefinite lived intangible assets of $57.6 million, and certain other adjustments to the fair values of the assets acquired, liabilities assumed and shareholders' equity of Montpelier at July 31, 2015 as summarized in the table below:

Montpelier shareholders' equity attributable to controlling interest prior to Special Dividend	$	1,560,255
Cash and cash equivalents (Special Dividend on Montpelier common shares and Montpelier equity awards)	(451,101		)
Adjusted shareholders' equity of Montpelier as of July 31, 2015	1,109,154
Adjustments for fair value, by applicable balance sheet caption:
Assets:
Fixed maturity investments, trading at fair value	(11,100		)
Deferred acquisition costs	(91,713		)
Reinsurance recoverable on unpaid losses	(675		)
Other assets	(12,459		)
Liabilities:
Reserve for losses and loss expenses	10,822
Debt	21,123
Deferred tax liability	(18,346		)
Equity:
Non-controlling interest	25,615
Total adjustments for fair value by applicable balance sheet caption	(76,733		)
Adjustments for fair value of the identifiable intangible assets:
Identifiable indefinite lived intangible assets (insurance licenses, Lloyd's syndicate capacity and asset management agreements)	57,600
Identifiable finite lived intangible assets (non-contractual relationships, Lloyd's syndicate distribution channel, renewal rights, value of business acquired ("VOBA"), trade names, non-compete agreements and asset management agreements)	293,200
Total adjustments for fair value by applicable balance sheet caption and identifiable intangible assets	274,067
Estimated fair value of net assets acquired and identifiable intangible assets	1,383,221
Total consideration paid by Endurance Holdings	1,470,846
Estimated total consideration over the fair value of net assets acquired assigned to goodwill	$	87,625

An explanation of the significant fair value adjustments is as follows:

• Fixed maturity investments, trading at fair value - To reflect certain investments at fair value;

• Deferred acquisition costs - To eliminate Montpelier's deferred acquisition costs;

• Other assets - To eliminate deferred debt issuance costs related to Montpelier's existing senior notes and to write off Montpelier's fixed assets and goodwill;

• Reserve for losses and loss expenses - To reflect a decrease in net losses and loss expenses due to the addition of a market based risk margin, which represents the cost of capital required by a market participant to assume the net losses and loss expenses of Montpelier, offset by a deduction that represents the discount due to the present value calculation of the unpaid losses and loss expenses based on the expected payout of the net unpaid losses and loss expenses;

• Debt - To reflect Montpelier's existing senior notes and trust preferred securities at fair value using indicative market pricing obtained from third-party service providers;

• Deferred tax liability - To reflect the deferred tax liability on identifiable intangible assets;

• Non-controlling interest - To reflect Montpelier's non-controlling interest at fair value; and

3.     Acquisition of Montpelier, cont'd.

• Identifiable indefinite lived and finite lived intangible assets - To establish the fair value of identifiable intangible assets related to the acquisition of Montpelier described in detail below.

Identifiable intangible assets at July 31, 2015 consisted of the following, and are included in goodwill and other intangible assets on the Company's consolidated balance sheets:

	Amount		Economic Useful Life
Key non-contractual relationships	$	71,800	10
Other non-contractual relationships	22,400		3
Trade names	1,800		Various
Insurance licenses	1,900		Indefinite
Non-compete agreements	5,700		Various
Lloyd's syndicate capacity	48,300		Indefinite
Lloyd's syndicate distribution channel	18,400		10
Renewal rights	82,100		15
VOBA	88,400		2
Asset management agreements	10,000		Various
Identifiable intangible assets at July 31, 2015	$	350,800

An explanation of the identifiable intangible assets is as follows:

• Key non-contractual relationships - these relationships included Montpelier's top brokers and consideration was given to the expectation of the renewal of these relationships and the associated expenses;

• Other non-contractual relationships - these relationships consisted of Montpelier's brokers with the exception of those top brokers previously listed above as key non-contractual relationships and consideration was given to the expectation of the renewal of these relationships and the associated expenses;

• Trade names - represents the value of the Montpelier and Blue Capital brands acquired;

• Insurance licenses - the value of insurance licenses acquired providing the ability to write reinsurance in 15 states of the U.S.;

• Non-compete agreements - represent non-compete agreements with key employees of Montpelier;

• Lloyd's syndicate capacity - the value of Lloyd's syndicate capacity, which represents Montpelier's authorized premium income limit to write insurance business in the Lloyd's marketplace;

• Lloyd's syndicate distribution channel - the value of sales of insurance policies that result directly from relationships between Lloyd's and the brokers in the Lloyd's marketplace;

• Renewal rights - the value of policy renewal rights taking into consideration written premium on assumed retention ratios and the insurance cash flows and the associated equity cash flows from these renewal policies over the expected life of the renewals;

• VOBA - the expected future losses and expenses associated with the policies that were in-force as of the Closing Date of the transaction were estimated and compared to the future premium remaining expected to be earned. The difference between the risk-adjusted future loss and expenses, discounted to present value and the unearned premium reserve, was estimated to be the VOBA; and

• Asset management contracts - represents the value of the Blue Capital asset management contracts acquired.

3.     Acquisition of Montpelier, cont'd.

Financial results

The following table summarizes the results of Montpelier since July 31, 2015 that have been included in the Company's Consolidated Statement of Income and Comprehensive Income for the year ended December 31, 2015:

	For the period from July 31, 2015 to December 31, 2015
Total revenues	$	225,899
Net income attributable to the Company's common shareholders(1)	54,768

(1) Includes $52.7 million of compensation-related costs associated with terminating employees of Montpelier.

Supplemental pro forma information

The following table presents unaudited pro forma consolidated financial information for the years ended December 31, 2015 and 2014 and assumes the acquisition of Montpelier occurred on January 1, 2014. The unaudited pro forma consolidated financial information is provided for informational purposes only and is not necessarily, and should not be assumed to be, an indication of the results that would have been achieved had the transaction been completed as of January 1, 2014 or that may be achieved in the future. The unaudited pro forma consolidated financial information does not give consideration to the impact of possible revenue enhancements, expense efficiencies, synergies or asset dispositions that may result from the acquisition of Montpelier. In addition, unaudited pro forma consolidated financial information does not include the effects of costs associated with any restructuring or integration activities resulting from the acquisition of Montpelier, as they are nonrecurring.

	Year Ended December 31,
	2015		2014
Total revenues	$	2,452,410	$	2,668,604
Net income available to Endurance Holdings' common shareholders	443,817		388,371

Among other adjustments, and in addition to the fair value adjustments and recognition of goodwill and identifiable intangible assets noted above, other material nonrecurring pro forma adjustments directly attributable to the acquisition of Montpelier principally included certain adjustments to recognize transaction related costs, align accounting policies, amortize fair value adjustments, amortize identifiable indefinite lived intangible assets and recognize related tax impacts.

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Investments

12 Months Ended

Dec. 31, 2016

Investments [Abstract]

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

4.     Investments

Composition of Net Investment Income and of Invested Assets

The components of net investment income for the years ended December 31, 2016, 2015 and 2014 are as follows:

	2016			2015			2014
Fixed income investments	$	165,210		$	132,786		$	118,084
Equity securities	12,639			8,209			5,689
Other investments	12,442			(13,553		)	19,609
Cash and cash equivalents	2,824			2,870			2,445
	$	193,115		$	130,312		$	145,827
Investment expenses	(16,525		)	(16,486		)	(14,284		)
Net investment income	$	176,590		$	113,826		$	131,543

4.     Investments, cont'd.

Contractual maturities of the Company's fixed maturity and short-term investments are shown below as of December 31, 2016 and 2015. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	December 31, 2016				December 31, 2015
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due within one year	$	617,655	$	617,462	$	622,070	$	622,248
Due after one year through five years	2,170,111		2,187,173		2,005,456		1,995,502
Due after five years through ten years	887,775		896,388		683,147		676,932
Due after ten years	55,400		58,449		33,168		34,651
Residential mortgage-backed securities	1,448,917		1,461,286		1,301,083		1,311,373
Commercial mortgage-backed securities	615,730		618,848		817,570		812,886
Collateralized loan and debt obligations	369,126		371,256		419,795		405,128
Asset-backed securities	509,595		510,663		510,540		507,255
Total	$	6,674,309	$	6,721,525	$	6,392,829	$	6,365,975

The following table summarizes the fair value of the fixed maturity investments, short-term investments and equity securities classified as trading at December 31, 2016 and 2015.

	December 31, 2016		December 31, 2015
Fixed maturity investments
U.S. government and agencies securities	$	551,055	$	319,674
U.S. state and municipal securities	6,006		5,559
Foreign government securities	110,088		49,861
Government guaranteed corporate securities	2,959		38,201
Corporate securities	1,051,200		532,192
Residential mortgage-backed securities	483,444		258,574
Commercial mortgage-backed securities	164,237		127,124
Collateralized loan and debt obligations	98,924		103,219
Asset-backed securities	272,142		152,756
Total fixed maturity investments	2,740,055		1,587,160
Short-term investments	330,199		394,111
Total fixed income investments	$	3,070,254	$	1,981,271
Equity securities
Equity investments	$	16,056	$	14,676
Preferred equity investments	—		553
Total equity securities	$	16,056	$	15,229

4.     Investments, cont'd.

In addition to the Company's fixed maturity, short-term and equity investments, the Company invests in alternative funds. The Company's alternative funds are recorded on the Company's balance sheet as "other investments". At December 31, 2016 and 2015, the Company had invested, net of capital returned, a total of $470.3 million and $737.1 million, respectively, in other investments. At December 31, 2016 and 2015, the carrying value of other investments was $588.3 million and $872.6 million, respectively.

The following table summarizes the composition and redemption restrictions of other investments as of December 31, 2016 and 2015:

December 31, 2016	Market Value		Unfunded Commitments		Ineligible for Redemption in 2017
Alternative funds
Hedge funds	$	482,865	$	—	$	85,963
Private investment funds	76,451		92,214		76,451
Other investment funds	28,992		—		27,518
Total alternative funds	588,308		92,214		189,932
Total other investments	$	588,308	$	92,214	$	189,932

December 31, 2015	Market Value		Unfunded Commitments		Ineligible for Redemption in 2016
Alternative funds
Hedge funds	$	704,966	$	—	$	57,876
Private investment funds	80,690		102,070		80,690
Other investment funds	23,465		—		24,958
Total alternative funds	809,121		102,070		163,524
Specialty funds
High yield loan funds	63,496		—		—
Total specialty funds	63,496		—		—
Total other investments	$	872,617	$	102,070	$	163,524

Hedge funds – The redemption frequency of the hedge funds range from monthly to biennially with notice periods from 30 to 90 days. Over one year, it is estimated that the Company can liquidate approximately 82.2% of the hedge fund portfolio, with the remainder over the following two years.

Private investment funds – The Company generally has no right to redeem its interest in any private investment funds in advance of dissolution of the applicable partnership. Instead, the nature of these investments is that distributions are received by the Company in connection with the distribution of income or the liquidation of the underlying assets of the applicable limited partnership. It is estimated that the majority of the underlying assets of the limited partnerships would liquidate over 5 to 10 years from inception of the limited partnership. A secondary market, with unpredictable liquidity, exists for limited partner interests in private investment funds.

Other investment funds – Other investment funds includes funds on deposit with Lloyd's, which are restricted, and the Company's investment in BCGR, which represents the net carrying value of the Company's investment in BCGR that has not been deployed into the BCGR cell.

High yield loan funds – There are generally no restrictions on the Company's right to redeem its interest in high yield loan funds with the exception of certain redemption frequency and notice requirements. The redemption frequency of these funds ranges from monthly to quarterly with notice periods from 30 to 90 days. The Company had no investments in high yield loan funds as of December 31, 2016.

4.     Investments, cont'd.

Net Realized and Unrealized (Losses) Gains

Realized and unrealized gains and losses are recognized in earnings using the first in, first out method. The analysis of gross realized gains and losses, net unrealized gains and losses on trading securities, intangible asset impairment loss, and the change in the fair value of investment-related derivative financial instruments for the years ended December 31, 2016, 2015 and 2014 are as follows:

	2016			2015			2014
Gross realized gains on investment sales	$	39,033		$	65,881		$	35,921
Gross realized losses on investment sales	(61,752		)	(28,636		)	(16,515		)
Net unrealized gains (losses) on trading securities	12,480			(24,257		)	—
Intangible asset impairment loss(1)	—			—			(5,450		)
Change in fair value of derivative financial instruments(2)	(2,180		)	(328		)	327
Net realized and unrealized (losses) gains	$	(12,419	)	$	12,660		$	14,283

(1) For additional information on the Company's intangible assets, see Note 11, Goodwill and intangible assets.

(2) For additional information on the Company's derivative financial instruments, see Note 9, Derivatives.

Unrealized Gains and Losses

The Company classifies some of its investments in fixed maturity investments, short-term investments and equities as available for sale. The amortized cost, fair value and related gross unrealized gains and losses on the Company's securities classified as available for sale at December 31, 2016 and 2015 are as follows:

December 31, 2016	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Fixed maturity investments
U.S. government and agencies securities	$	449,638	$	3,981	$	(2,792	)	$	450,827
U.S. state and municipal securities	11,560		945		(154		)	12,351
Foreign government securities	68,539		2,236		(1,944		)	68,831
Government guaranteed corporate securities	912		46		—			958
Corporate securities	1,078,756		26,481		(8,744		)	1,096,493
Residential mortgage-backed securities	968,273		21,032		(11,463		)	977,842
Commercial mortgage-backed securities	452,011		8,790		(6,190		)	454,611
Collateralized loan and debt obligations	271,361		1,644		(673		)	272,332
Asset-backed securities	237,177		2,242		(898		)	238,521
Total fixed maturity investments	$	3,538,227	$	67,397	$	(32,858	)	$	3,572,766
Short-term investments	78,506		1		(2		)	78,505
Total fixed income investments	$	3,616,733	$	67,398	$	(32,860	)	$	3,651,271
Equity securities
Equity investments	$	461,509	$	27,948	$	(4,545	)	$	484,912
Preferred equity investments	175		—		(2		)	173
Total equity securities	$	461,684	$	27,948	$	(4,547	)	$	485,085

4.     Investments, cont'd.

December 31, 2015	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Fixed maturity investments
U.S. government and agencies securities	$	499,386	$	2,561	$	(3,153	)	$	498,794
U.S. state and municipal securities	16,908		120		(181		)	16,847
Foreign government securities	110,893		803		(581		)	111,115
Government guaranteed corporate securities	19,248		311		(7		)	19,552
Corporate securities	1,323,276		5,698		(11,232		)	1,317,742
Residential mortgage-backed securities	1,041,540		16,400		(5,141		)	1,052,799
Commercial mortgage-backed securities	689,078		4,737		(8,053		)	685,762
Collateralized loan and debt obligations	304,915		796		(3,802		)	301,909
Asset-backed securities	356,753		585		(2,839		)	354,499
Total fixed maturity investments	$	4,361,997	$	32,011	$	(34,989	)	$	4,359,019
Short-term investments	25,657		28		—			25,685
Total fixed income investments	$	4,387,654	$	32,039	$	(34,989	)	$	4,384,704
Equity securities
Equity investments	$	527,154	$	6,835	$	(37,474	)	$	496,515
Preferred equity investments	15,275		1,946		(151		)	17,070
Total equity securities	$	542,429	$	8,781	$	(37,625	)	$	513,585

4.     Investments, cont'd.

The following tables summarize, for all available for sale securities in an unrealized loss position at December 31, 2016 and 2015, the aggregate fair value and gross unrealized loss by length of time the security has continuously been in an unrealized loss position.

	Less than 12 months					12 months or greater					Total
December 31, 2016	Unrealized Losses(1)			Fair Value		Unrealized Losses(1)			Fair Value		Unrealized Losses(1)			Fair Value
Fixed maturity investments
U.S. government and agencies securities	$	(2,791	)	$	289,012	$	(1	)	$	248	$	(2,792	)	$	289,260
U.S. state and municipal securities	(152		)	5,288		(2		)	2,143		(154		)	7,431
Foreign government securities	(446		)	15,717		(1,498		)	5,973		(1,944		)	21,690
Corporate securities	(7,512		)	448,643		(1,232		)	11,897		(8,744		)	460,540
Residential mortgage-backed securities	(10,082		)	521,167		(1,381		)	31,835		(11,463		)	553,002
Commercial mortgage-backed securities	(3,453		)	174,144		(2,737		)	76,694		(6,190		)	250,838
Collateralized loan and debt obligations	(223		)	50,194		(450		)	81,043		(673		)	131,237
Asset-backed securities	(539		)	64,109		(359		)	39,770		(898		)	103,879
Total fixed maturity investments	$	(25,198	)	$	1,568,274	$	(7,660	)	$	249,603	$	(32,858	)	$	1,817,877
Short-term investments	(2		)	4,691		—			—		(2		)	4,691
Total fixed income investments	$	(25,200	)	$	1,572,965	$	(7,660	)	$	249,603	$	(32,860	)	$	1,822,568
Equity securities
Equity investments	$	(2,855	)	$	71,509	$	(1,690	)	$	17,408	$	(4,545	)	$	88,917
Preferred equity investments	(2		)	123		—			—		(2		)	123
Total equity securities	$	(2,857	)	$	71,632	$	(1,690	)	$	17,408	$	(4,547	)	$	89,040

(1) Gross unrealized losses include unrealized losses on non-OTTI and non-credit OTTI securities recognized in accumulated other comprehensive loss at December 31, 2016.

As of December 31, 2016, 1,090 available for sale securities were in an unrealized loss position aggregating $37.4 million. Of those, 218 securities with aggregated unrealized losses of $9.4 million at December 31, 2016 had been in a continuous unrealized loss position for twelve months or greater.

4.     Investments, cont'd.

	Less than 12 months					12 months or greater					Total
December 31, 2015	Unrealized Losses(1)			Fair Value		Unrealized Losses(1)			Fair Value		Unrealized Losses(1)			Fair Value
Fixed maturity investments
U.S. government and agencies securities	$	(2,175	)	$	347,024	$	(978	)	$	16,669	$	(3,153	)	$	363,693
U.S. state and municipal securities	(96		)	9,662		(85		)	695		(181		)	10,357
Foreign government securities	(404		)	31,881		(177		)	3,966		(581		)	35,847
Government guaranteed corporate securities	(7		)	1,692		—			—		(7		)	1,692
Corporate securities	(9,222		)	830,349		(2,010		)	51,024		(11,232		)	881,373
Residential mortgage-backed securities	(3,378		)	365,082		(1,763		)	79,355		(5,141		)	444,437
Commercial mortgage-backed securities	(6,708		)	436,387		(1,345		)	42,246		(8,053		)	478,633
Collateralized loan and debt obligations	(3,107		)	224,520		(695		)	48,167		(3,802		)	272,687
Asset-backed securities	(2,624		)	311,814		(215		)	12,880		(2,839		)	324,694
Total fixed income investments	$	(27,721	)	$	2,558,411	$	(7,268	)	$	255,002	$	(34,989	)	$	2,813,413
Equity securities
Equity investments	$	(32,021	)	$	329,280	$	(5,453	)	$	56,421	$	(37,474	)	$	385,701
Preferred equity investments	(151		)	7,361		—			—		(151		)	7,361
Total equity securities	$	(32,172	)	$	336,641	$	(5,453	)	$	56,421	$	(37,625	)	$	393,062

(1) Gross unrealized losses include unrealized losses on non-OTTI and non-credit OTTI securities recognized in accumulated other comprehensive loss at December 31, 2015.

As of December 31, 2015, 1310 available for sale securities were in an unrealized loss position aggregating $72.6 million. Of those, 158 securities with aggregated unrealized losses of $12.7 million at December 31, 2015 had been in a continuous unrealized loss position for twelve months or greater.

The decrease in gross unrealized losses on the Company's fixed income investments and equity securities at December 31, 2016 compared to December 31, 2015 was primarily due to tightening of credit spreads and strong equity markets during the year, partially offset by an increase in interest rates, rather than any actual credit losses on these securities. As of December 31, 2016, the Company did not have the intent to sell any of the remaining fixed income investments in an unrealized loss position and determined that it was unlikely that the Company would be required to sell those securities in an unrealized loss position.

During the year ended December 31, 2016, the Company impaired certain equity securities that were in an unrealized loss position for more than twelve consecutive months and therefore recognized in earnings total other-than-temporary impairments of $10.8 million (2015 - $3.7 million; 2014 - $0.6 million). As of December 31, 2016, the Company did not have the intent to sell any of the the remaining equity securities in an unrealized loss position.

Other Investments

The Company is involved in the normal course of business with VIEs primarily as a passive investor in residential and commercial mortgage-backed securities and through its interests in various other investments that are structured as limited partnerships considered to be third party VIEs. The Company determines whether it is the primary beneficiary of an entity subject to consolidation based on a qualitative assessment of the VIE's capital structure, contractual terms, nature of the VIE's operations and purpose, and the Company's relative exposure to the related risks of the VIE on the date it becomes initially involved in the VIE. The Company determined that it was not the primary beneficiary for any of these investments as of December 31, 2016 and 2015. The Company believes its exposure to loss with respect to these investments is generally limited to the investment carrying amounts reported in the Company's Consolidated Balance Sheets and any unfunded investment commitments.

4.     Investments, cont'd.

Collateralized Reinsurance Entities

As of December 31, 2016, Endurance Holdings and Endurance Bermuda together owned 33.3% of BCRH. BCRH is considered a VIE under U.S. GAAP and the Company has determined that it is BCRH's primary beneficiary. As a result, the Company fully consolidates the assets, liabilities and operations of BCRH and its subsidiaries within its Consolidated Financial Statements. The interests in BCRH and its subsidiaries that the Company fully consolidates that are attributable to third-party investors are reported within the Company's Consolidated Financial Statements as non-controlling interests. BCRH's shareholder rights do not include redemption features within the control of the third party shareholders. The Company reassesses its VIE determination with respect to BCRH on an ongoing basis.

As of December 31, 2016, Endurance Bermuda owned 25.2% of BCGR. BCGR is considered a "voting interest entity" under U.S. GAAP and, because the Company owns less than 50% of its outstanding ordinary shares, the Company does not consolidate BCGR's assets, liabilities or operations within its Consolidated Financial Statements. However, the BCGR Cell and Blue Water Re, the Company's wholly-owned Bermuda-based special purpose insurance vehicle, are considered VIEs under U.S. GAAP and the Company has determined that it is the primary beneficiary of these entities. Therefore, as funds held in BCGR are deployed into the BCGR Cell, and ultimately into Blue Water Re, they are included in the Company's consolidated financial statements. Conversely, as funds previously deployed by BCGR and the BCGR Cell into Blue Water Re are returned to BCGR, they are no longer included in the Company's consolidated financial statements. The interests in the BCGR Cell and Blue Water Re that the Company fully consolidate that are attributable to third-party investors are reported within the Company's consolidated financial statements as non-controlling interests. BCGR's shareholder rights do not include redemption features within the control of the third party shareholders. The Company reassesses its VIE determinations with respect to the BCGR Cell and Blue Water Re on an ongoing basis.

The following table summarizes the movements in the non-redeemable non-controlling interests balance for the year ended December 31, 2016 and from the acquisition date, July 31, 2015 to December 31, 2015:

	Year Ended December 31, 2016			Five Months Ended December 31, 2015
Non-controlling interests, beginning balance	$	267,810		$	258,529
Income attributable to third-party investments in the BCGR Cell	14,577			5,526
Income attributable to third-party investments in BCRH	9,553			5,490
Net income attributable to non-controlling interests	24,130			11,016
Net preferred share redemption attributable to third-party investments in the BCGR Cell (1)	(19,799		)	—
Net investments attributable to third-parties in BCRH	72			20
Net change in third-party investments in non-controlling interests	(19,727		)	20
Dividends declared by BCRH attributable to non-controlling interests	(12,519		)	(1,755		)
Non-controlling interests - ending balance	$	259,694		$	267,810

(1) The redemption from the BCGR Cell was required to fund expenses, repay debt and fund dividends by BCGR.

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Fair Value Measurement

12 Months Ended

Dec. 31, 2016

Fair Value Disclosures [Abstract]

Fair Value Measurement

5.     Fair value measurement

The Company determines the fair value of its fixed maturity investments, short-term investments, equity securities, debt, and other assets and liabilities in accordance with current accounting guidance, which defines fair value and establishes a fair value hierarchy based on inputs to the various valuation techniques used for each fair value measurement. The Company determines the estimated fair value of each individual security utilizing the highest level inputs available. Valuation inputs by security type may include the following:

• Government and agencies fixed maturity securities – These securities are generally priced by pricing services or index providers. The pricing services or index providers may use current market trades for securities with similar quality, maturity and coupon. If no such trades are available, the pricing service typically uses analytical models which may incorporate option adjusted spreads, daily interest rate data and market/sector news. The Company generally classifies the fair values of government and agencies securities in Level 2. Current issue U.S. government securities are generally valued based on Level 1 inputs, which use the market approach valuation technique.

• Government guaranteed corporate fixed maturity securities – These securities are generally priced by pricing services or index providers. The pricing service or index providers may use current market trades for securities with similar quality, maturity and coupon. If no such trades are available, the pricing service typically uses analytical spread models which may incorporate inputs from the U.S. treasury curve or LIBOR. The Company generally classifies the fair values of its government guaranteed corporate securities in Level 2.

• Corporate fixed maturity securities – These securities are generally priced by pricing services or index providers. The pricing services or index providers typically use discounted cash flow models that incorporate benchmark curves for treasury, swap and high issuance credits. Credit spreads are developed from current market observations for like or similar securities. The Company generally classifies the fair values of its corporate securities in Level 2.

• Equity securities – These securities are generally priced by pricing services or index providers. Depending on the type of underlying equity security or equity fund, the securities are priced by pricing services or index providers based on quoted market prices in active markets or through a discounted cash flow model that incorporates benchmark curves for treasury, swap and credit for like or similar securities. The Company generally classifies the fair values of its equity securities in Level 1 or 2.

• Structured securities including agency and non-agency, residential and commercial mortgage, asset-backed securities and collateralized loan and debt obligations – These securities are generally priced by broker/dealers. Broker/dealers may use current market trades for securities with similar qualities. If no such trades are available, inputs such as bid and offer, prepayment speeds, the U.S. treasury curve, swap curve and cash settlement may be used in a discounted cash flow model to determine the fair value of a security. The Company generally classifies the fair values of its structured securities in Level 2.

• Other assets and liabilities – A portion of other assets and liabilities are composed of a variety of derivative instruments used to enhance the efficiency of the investment portfolio and economically hedge certain risks. These instruments are generally priced by pricing services, broker/dealers and/or recent trading activity. The market value approach valuation technique is used to estimate the fair value for these derivatives based on significant observable market inputs. Certain derivative instruments are priced by pricing services based on quoted market prices in active markets. These derivative instruments are generally classified in Level 1. Other derivative instruments are priced using industry valuation models and are considered Level 2, as the inputs to the valuation model are based on observable market inputs. Also included in this line item are proprietary, non-exchange traded derivative-based risk management products primarily used to address weather and energy risks. The trading market for these weather derivatives are generally linked to energy and agriculture commodities, weather and other natural phenomena. In instances where market prices are not available, the Company uses industry or internally developed valuation techniques such as spread option, Black Scholes, quanto and simulation modeling to determine fair value and classifies these in Level 3. These models may reference prices for similar instruments.

• Debt – Outstanding debt consists of the Company's 7% Senior Notes due July 15, 2034 and 4.7% Senior Notes due October 15, 2022 (the "Senior Notes") and the Trust Preferred Securities. The fair values of these securities were obtained from a third party pricing service and pricing was based on the spread above the risk-free yield curve. These spreads are generally obtained from the new issue market, secondary trading and broker-dealer quotes. As these spreads and the yields for the risk-free yield curve are observable market inputs, the fair values of the Senior Notes and the Trust Preferred Securities are classified in Level 2.

5.     Fair value measurement, cont'd.

The carrying values of cash and cash equivalents, accrued investment income, other investments, net receivable on sales of investments, net payable on purchases of investments, the amount outstanding under the BCRH Credit Agreement and other financial instruments not described above approximated their fair values at December 31, 2016 and 2015.

The following table sets forth the Company's fixed maturity investments, equity securities, short-term investments, other assets and liabilities and debt categorized by the level within the hierarchy in which the fair value measurements fall at December 31, 2016:

			Fair Value Measurements at December 31, 2016
	Total at December 31, 2016		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Fixed maturity investments
U.S. government and agencies securities	$	1,001,882	$	51,827	$	950,055	$	—
U.S. state and municipal securities	18,357		—		18,357		—
Foreign government securities	178,919		—		178,919		—
Government guaranteed corporate securities	3,917		—		3,917		—
Corporate securities	2,147,693		—		1,968,056		179,637
Residential mortgage-backed securities	1,461,286		—		1,461,286		—
Commercial mortgage-backed securities	618,848		—		618,848		—
Collateralized loan and debt obligations	371,256		—		371,256		—
Asset-backed securities	510,663		—		510,663		—
Total fixed maturity investments	6,312,821		51,827		6,081,357		179,637
Equity securities
Equity investments	500,968		184,251		316,717		—
Preferred equity investments	173		—		173		—
Total equity securities	501,141		184,251		316,890		—
Short-term investments	408,704		—		408,654		50
Other assets (see Note 9)	166,716		1,953		123,681		41,082
Total assets	$	7,389,382	$	238,031	$	6,930,582	$	220,769
Liabilities
Other liabilities (see Note 9)	$	84,069	$	2,772	$	55,051	$	26,246
Debt	770,704		—		770,704		—
Total liabilities	$	854,773	$	2,772	$	825,755	$	26,246

During the year ended December 31, 2016, $79.3 million of investments, consisting primarily of corporate securities, that were previously held by the Company indirectly in an equity fund as part of the Company's other investments, were transferred into Level 3 as no observable inputs were available, and $7.3 million of primarily collateralized loan and debt obligations, asset-backed and commercial mortgage-backed securities were transferred out of Level 3 to Level 2 during the year as market activity for these securities increased and observable inputs became available. During the year ended December 31, 2016, $18.4 million of U.S. government and agencies securities were transferred from Level 1 to Level 2 as they no longer qualified as on the run U.S. treasury securities.

5.     Fair value measurement, cont'd.

The following table sets forth the Company's fixed maturity investments, equity securities, short-term investments, other assets and liabilities and debt categorized by the level within the hierarchy in which the fair value measurements fall at December 31, 2015:

			Fair Value Measurements at December 31, 2015
	Total at December 31, 2015		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Fixed maturity investments
U.S. government and agencies securities	$	818,468	$	37,741	$	780,727	$	—
U.S. state and municipal securities	22,406		—		22,406		—
Foreign government securities	160,976		—		160,976		—
Government guaranteed corporate securities	57,753		—		57,753		—
Corporate securities	1,849,934		—		1,739,002		110,932
Residential mortgage-backed securities	1,311,373		—		1,311,373		—
Commercial mortgage-backed securities	812,886		—		812,174		712
Collateralized loan and debt obligations	405,128		—		404,319		809
Asset-backed securities	507,255		—		507,255		—
Total fixed maturity investments	$	5,946,179	$	37,741	$	5,795,985	$	112,453
Equity securities
Equity investments	511,191		275,086		236,105		—
Preferred equity investments	17,623		—		17,623		—
Total equity securities	$	528,814	$	275,086	$	253,728	$	—
Short-term investments	419,796		—		419,796		—
Other assets (see Note 9)	68,892		4		27,385		41,503
Total assets	$	6,963,681	$	312,831	$	6,496,894	$	153,956
Liabilities
Other liabilities (see Note 9)	$	46,088	$	—	$	4,059	$	42,029
Debt	737,974		—		737,974		—
Total liabilities	$	784,062	$	—	$	742,033	$	42,029

During the year ended December 31, 2015, $131.2 million of investments, consisting primarily of corporate securities acquired from Montpelier, were transferred into Level 3 as no observable inputs were available, and $12.4 million of primarily collateralized loan and debt obligations, asset-backed and commercial mortgage-backed securities were transferred out of Level 3 to Level 2 during the year as market activity for these securities increased and observable inputs became available. During the year ended December 31, 2015, $11.8 million of U.S. government and agencies securities were transferred from Level 1 to Level 2 as they no longer qualified as on the run U.S. treasury securities.

Level 3 assets represented 3.0% and 2.2% of the Company's total available for sale and trading investments and derivative instruments at December 31, 2016 and 2015, respectively. At December 31, 2016 and 2015, Level 3 securities were primarily comprised of corporate securities and weather derivatives. There were no material changes in the Company's valuation techniques for the year ended December 31, 2016 and 2015.

5.     Fair value measurement, cont'd.

Other assets and other liabilities measured at fair value included assets of $41.1 million (2015 - $41.5 million) and liabilities of $26.2 million (2015 - $42.0 million) related to proprietary, non-exchange traded derivative-based risk management products used in the Company's weather risk management business, and hedging and trading activities related to these risks. In instances where market prices are not available, the Company may use industry or internally developed valuation techniques such as historical analysis and simulation modeling to determine fair value and are considered Level 3.

Observable and unobservable inputs to these valuation techniques vary by contract requirements and commodity type, are validated using market-based or independently sourced parameters where applicable and may typically include the following:

• Observable inputs: contract price, notional, option strike, term to expiry, interest rate, contractual limits, temperature, rainfall, windspeed, wave height, snow fall, cyclone category;

• Unobservable inputs: correlation, composite weather variable; and

• Both observable and unobservable: forward commodity price.

The Company's weather curves are determined by taking the average payouts for each transaction within its portfolio utilizing detrended historical weather measurements. The Company's commodity curves are determined using historical market data scaled to currently observed market prices. The range of each unobservable input could vary based on the specific commodity, including, but not limited to natural gas, electricity, crude, liquids, temperature or precipitation. Due to the diversity of the portfolio, the range of unobservable inputs could be wide-spread as reflected in the below table on quantitative information. The unobservable inputs are validated at each reporting period and are only changed when corroborated by evidence such as similar market transactions, third-party pricing services and/or broker or dealer quotations or other empirical market data.

Changes in any or all of the unobservable inputs listed above may contribute positively or negatively to the overall portfolio fair value depending upon the underlying position. In general, movements in weather curves are the largest contributing factor that impacts fair value.

5.     Fair value measurement, cont'd.

Below is a summary of quantitative information regarding the significant observable and unobservable inputs used in determining the fair value of the net weather and energy related derivative assets and liabilities classified in Level 3 that are measured at fair value on a recurring basis at December 31, 2016 and 2015:

	December 31, 2016
	Fair Value (Level 3)		Valuation Techniques	Inputs	Range
					Low			High
	(Commodity curve in U.S. dollars in thousands)
Net weather and energy related derivative assets	$	14,836	Historical Analysis and Simulation	Correlation	0			1
				Temperature	-15F			115F
				Composite weather variable	-25 deg.			45 deg.
				Rainfall	0"			2"
				Windspeed	0.01 m/s			25 m/s
				Wave height	0 m			25 m
				Commodity curve	$	(1	)	$	14

	December 31, 2015
	Fair Value (Level 3)		Valuation Techniques	Inputs	Range
					Low		High
	(Commodity curve in U.S. dollars in thousands)
Net weather and energy related derivative liabilities	$	526	Historical Analysis and Simulation	Correlation	0		1
				Temperature	-15F		115F
				Composite weather variable	-25 deg.		45 deg.
				Rainfall	0"		2"
				Windspeed	0.01 m/s		25 m/s
				Snowfall	0"		18"
				Cyclone (category)	—		5
				Commodity curve	$	—	$	13

5.     Fair value measurement, cont'd.

The following tables present a reconciliation of the beginning and ending balances for all assets and liabilities measured at fair value on a recurring basis using Level 3 inputs during the years ended December 31, 2016 and 2015.

December 31, 2016	Fixed maturity investments			Other assets			Total assets			Other liabilities
Level 3, beginning of year	$	112,453		$	41,503		$	153,956		$	(42,029	)
Total equity income and losses and realized and unrealized gains and losses included in earnings	4,321			—			4,321			—
Total income and losses included in other underwriting loss	—			5,796			5,796			90
Change in unrealized gains and losses included in other comprehensive (loss) income	263			—			263			—
Purchases	48,572			—			48,572			—
Issues	—			22,571			22,571			(34,219		)
Sales	(57,987		)	—			(57,987		)	—
Settlements	—			(28,788		)	(28,788		)	49,912
Transfers into Level 3	79,332			—			79,332			—
Transfers out of Level 3	(7,267		)	—			(7,267		)	—
Level 3, end of year	$	179,687		$	41,082		$	220,769		$	(26,246	)

December 31, 2015	Fixed maturity investments			Other assets			Total assets			Other liabilities
Level 3, beginning of year	$	12,290		$	25,615		$	37,905		$	(35,366	)
Total equity income and losses and realized and unrealized gains and losses included in earnings	(2,785		)	—			(2,785		)	—
Total income and losses included in other underwriting loss	—			(2,951		)	(2,951		)	5,062
Change in unrealized gains and losses included in other comprehensive (loss) income	(180		)	—			(180		)	—
Purchases	13			4,750			4,763			(4,231		)
Issues	—			21,559			21,559			(34,114		)
Sales	(15,695		)	—			(15,695		)	—
Settlements	—			(7,470		)	(7,470		)	26,620
Transfers into Level 3	131,215			—			131,215			—
Transfers out of Level 3	(12,405		)	—			(12,405		)	—
Level 3, end of year	$	112,453		$	41,503		$	153,956		$	(42,029	)

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Reserve For Losses And Loss Expenses

12 Months Ended

Dec. 31, 2016

Insurance Loss Reserves [Abstract]

Reserve For Losses And Loss Expenses

6.     Reserve for losses and loss expenses

Activity in the reserve for losses and loss expenses for the years ended December 31, 2016, 2015 and 2014 is summarized as follows:

	2016			2015			2014
Gross reserve for losses and loss expenses, January 1	$	4,510,415		$	3,846,859		$	4,002,259
Reinsurance recoverable on unpaid losses	907,944			670,795			593,755
Net reserve for losses and loss expenses, January 1	3,602,471			3,176,064			3,408,504
Incurred related to:
Current year	1,542,602			1,160,572			1,203,977
Prior years	(221,550		)	(243,464		)	(233,815		)
Total incurred	1,321,052			917,108			970,162
Paid related to:
Current year	(295,863		)	(265,898		)	(439,169		)
Prior years	(890,027		)	(867,739		)	(719,043		)
Total paid	(1,185,890		)	(1,133,637		)	(1,158,212		)
Amounts acquired(1)	—			675,019			—
Foreign currency translation and other	(45,624		)	(32,083		)	(44,390		)
Net reserve for losses and loss expenses, December 31	3,692,009			3,602,471			3,176,064
Reinsurance recoverable on unpaid losses	1,213,129			907,944			670,795
Gross reserve for losses and loss expenses, December 31	$	4,905,138		$	4,510,415		$	3,846,859

(1) Represents the fair value of Montpelier's reserve for losses and loss expenses and reinsurance recoverable acquired at July 31, 2015.

During 2016, the Company's estimated ultimate losses for prior accident years were reduced by $221.6 million (2015 - $243.5 million; 2014 - $233.8 million) due to lower claims emergence than originally estimated by the Company. During 2016, the Company experienced favorable reserve development of $144.4 million across each line of business in the Reinsurance segment and $77.1 million of favorable development across each line of business in the Insurance segment. During 2015, the Company experienced favorable development of $161.5 million across each line of business in the Reinsurance segment and $82.0 million of favorable development across each line of business in the Insurance segment. During 2014, the Company experienced favorable development of $153.2 million across each line of business in the Reinsurance segment and $80.6 million of favorable development across each line of business in the Insurance segment.

Reserves for losses and loss expenses are based in part upon the estimation of losses resulting from catastrophic events. Estimation of these losses and loss expenses are based upon the Company's historical claims experience and is inherently difficult because of the Company's short operating history and the possible severity of catastrophe claims. Therefore, the Company uses both proprietary and commercially available models, as well as historical reinsurance industry catastrophe claims experience in addition to its own historical data for purposes of evaluating trends and providing an estimate of ultimate claims costs.

A significant portion of the Company's contracts and policies cover excess layers for high severity exposures. Underwriting results and ultimate claims payments for this type of coverage are therefore not typically reported to the Company until later in the contract and policy lives. As a result, the level of losses reported to date is not necessarily indicative of expected future results.

6.     Reserve for losses and loss expenses, cont'd.

The Company monitors the performance of its underwriting operations through review of discrete information related to its two reportable segments, Insurance and Reinsurance. Within each of these segments, the Company writes a variety of different types of insurance and reinsurance. For reporting purposes, management has combined its many business units, including within the Insurance segment - agriculture, casualty and other specialty, professional lines and property, marine/energy and aviation; and within the Reinsurance segment- catastrophe, property, casualty, professional lines and specialty. Management believes that the businesses combined within these business lines have similarities that make it appropriate to evaluate each as a group.

The Company has included reserves acquired as part of its acquisition of Montpelier on a retrospective basis within its existing lines of business. In addition, the Company has restated all periods reflected in the various tables at the foreign exchange rates as of December 31, 2016.

The Company incorporates a variety of actuarial methods and judgments in its reserving process. Two key inputs in the various actuarial methods employed by the Company are initial expected loss ratios and expected loss reporting patterns. These key inputs impact the potential variability in the estimate of the reserve for losses and loss expenses and are applicable to each of the Company's business segments. The Company's loss and loss expense reserves consider and reflect, in part, deviations resulting from differences between expected loss and actual loss reporting as well as judgments relating to the weights applied to the reserve levels indicated by the actuarial methods. Expected loss reporting patterns are based upon internal and external historical data and assumptions regarding claims reporting trends over a period of time that extends beyond the Company's own operating history.

IBNR Reserves and Claims Frequency

The Company establishes loss and loss expense reserves to provide for the estimated costs of paying claims under insurance policies and reinsurance contracts underwritten by the Company. These reserves include estimates for both claims that have been reported and those that have been incurred but not reported and include estimates of all expenses associated with processing and settling these claims. Estimating the ultimate cost of future claims and claim adjustment expenses is based on management judgment and thus, actual losses incurred may vary significantly from management's estimates.

For insurance policies, the Company generally receives claims notices that are recorded by the claims staff within our underwriting, financial and claims systems. When we are notified of insured losses or discover potential losses as part of our claims audits, claims personnel record a case reserve as appropriate for the estimated amount of the exposure at that time. Reserves are also established to provide for the estimated expense of settling claims, including legal and other fees and the general expenses of administering the claims adjustment process.

The Company counts an insurance claim when either an indemnity or allocated adjustment expense amount has been paid, or at any quarter end, the Company recorded a case reserve.

The Company's Reinsurance segment and line of business include contracts written on a proportional or excess of loss basis. For proportional reinsurance business, the Company receives a bordereau indicating the Company's share of losses as well as other financial items. The Company does not have direct access to claims frequency information, and as such, the number of claims represented by the losses reported cannot be determined by the Company. The Company has determined that it is impracticable to provide claims frequency information related to its reinsurance contracts written on a proportional basis. The amount of IBNR related to proportional reinsurance contracts was $700.0 million at December 31, 2016.

For Reinsurance contracts written on an excess of loss basis, the Company has developed claims frequency information. The Company determines claims frequency for excess of loss contracts when either a loss has been paid or at any quarter-end, the Company recorded a case reserve. Claims are counted by contract.

6.     Reserve for losses and loss expenses, cont'd.

The following tables show, by segment by line of business, the incurred losses and loss expenses and cumulative paid losses and loss expenses, net of reinsurance, as of December 31, 2016. The following also includes the amount of IBNR reserves recorded as well as the cumulative number of reported claims for the Insurance segment lines of business and only excess of loss reinsurance contracts for the Reinsurance segment lines of business.

Insurance Segment - Agriculture
Incurred losses and loss expenses, net of reinsurance
For the years ended December 31,																					At December 31, 2016
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016		IBNR reserves		Cumulative number of reported claims
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2007	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	—
2008	—		333,380		318,709		313,296		313,800		313,814		313,938		313,834		313,834		313,834		—		30,036
2009	—		—		298,914		284,277		280,798		281,667		281,594		281,365		281,365		281,365		—		26,540
2010	—		—		—		305,131		280,330		280,409		280,166		280,008		280,008		280,008		—		18,331
2011	—		—		—		—		520,388		509,531		508,424		507,930		507,847		507,847		—		37,061
2012	—		—		—		—		—		581,455		576,836		573,376		572,995		572,469		—		38,297
2013	—		—		—		—		—		—		566,483		563,158		562,122		562,826		—		44,138
2014	—		—		—		—		—		—		—		451,710		451,843		449,705		—		53,886
2015	—		—		—		—		—		—		—		—		241,501		227,634		—		39,508
2016	—		—		—		—		—		—		—		—		—		200,353		20,453		29,353
Total																			$	3,396,041
Cumulative paid losses and loss expenses, net of reinsurance
For the years ended December 31,
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2007	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
2008	—		239,498		310,235		313,196		313,708		313,722		313,859		313,834		313,834		313,834
2009	—		—		178,206		281,996		280,468		280,991		281,058		281,365		281,365		281,365
2010	—		—		—		144,296		279,397		279,768		279,859		280,008		280,008		280,008
2011	—		—		—		—		461,335		506,905		507,790		507,918		507,847		507,847
2012	—		—		—		—		—		478,797		573,781		572,885		572,995		572,469
2013	—		—		—		—		—		—		438,034		562,046		562,075		561,652
2014	—		—		—		—		—		—		—		352,202		448,046		449,705
2015	—		—		—		—		—		—		—		—		122,696		222,212
2016	—		—		—		—		—		—		—		—		—		75,894
Total																			$	3,264,986
			Reserve for losses and loss expenses, net of reinsurance																$	131,055

6.     Reserve for losses and loss expenses, cont'd.

Insurance Segment - Casualty & Other Specialty
Incurred losses and loss expenses, net of reinsurance
For the years ended December 31,																					At December 31, 2016
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016		IBNR reserves		Cumulative number of reported claims
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2007	$	254,678	$	251,840	$	228,021	$	232,156	$	232,186	$	235,482	$	213,895	$	197,246	$	196,072	$	191,927	$	20,274	988
2008	—		285,334		296,079		333,844		366,479		363,094		347,477		339,927		328,153		312,759		35,706		1,602
2009	—		—		198,689		240,235		237,368		237,101		234,983		230,594		218,900		206,077		24,553		2,509
2010	—		—		—		150,636		179,854		179,208		175,922		160,450		135,214		122,748		19,995		2,738
2011	—		—		—		—		151,344		169,803		222,470		226,274		201,355		186,588		48,836		4,319
2012	—		—		—		—		—		164,568		182,924		187,141		183,644		179,929		73,724		6,268
2013	—		—		—		—		—		—		153,377		165,853		205,041		230,081		81,540		6,790
2014	—		—		—		—		—		—		—		120,226		132,184		141,970		84,031		7,969
2015	—		—		—		—		—		—		—		—		145,828		156,771		77,472		8,717
2016	—		—		—		—		—		—		—		—		—		165,558		137,608		5,305
Total																			$	1,894,408
Cumulative paid losses and loss expenses, net of reinsurance
For the years ended December 31,
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2007	$	9,090	$	38,777	$	66,865	$	103,283	$	124,887	$	139,923	$	144,982	$	152,297	$	159,687	$	163,236
2008	—		36,479		82,811		129,840		169,331		200,021		239,185		255,585		261,201		266,264
2009	—		—		15,098		50,815		83,210		103,922		139,011		150,241		160,903		168,351
2010	—		—		—		863		4,279		27,379		64,917		83,634		88,737		96,785
2011	—		—		—		—		3,279		14,468		30,074		54,598		91,817		97,285
2012	—		—		—		—		—		3,707		16,190		32,686		51,381		75,508
2013	—		—		—		—		—		—		3,145		15,581		89,771		119,524
2014	—		—		—		—		—		—		—		3,389		18,914		36,446
2015	—		—		—		—		—		—		—		—		18,426		49,196
2016	—		—		—		—		—		—		—		—		—		14,281
Total																			$	1,086,876
			Reserve for losses and loss expenses from accident year 2006 and prior, net of reinsurance																30,599
			Adjustment for unallocated claim expenses																43,666
			Reserve for losses and loss expenses, net of reinsurance																$	881,797

6.     Reserve for losses and loss expenses, cont'd.

Insurance Segment - Professional Lines
Incurred losses and loss expenses, net of reinsurance
For the years ended December 31,																					At December 31, 2016
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016		IBNR reserves		Cumulative number of reported claims
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2007	$	52,739	$	110,525	$	150,972	$	120,358	$	119,243	$	117,895	$	113,520	$	116,711	$	125,496	$	122,969	$	47	232
2008	—		62,838		62,586		83,358		88,047		96,887		109,471		127,641		138,119		164,412		3,932		379
2009	—		—		100,914		118,432		104,421		106,597		109,441		99,973		92,165		93,803		5,728		1,039
2010	—		—		—		108,369		105,611		101,591		92,931		82,421		74,856		69,387		9,860		1,594
2011	—		—		—		—		102,012		98,353		99,466		79,988		98,989		105,619		15,265		1,232
2012	—		—		—		—		—		101,872		103,358		101,426		79,591		69,333		18,080		1,233
2013	—		—		—		—		—		—		78,988		79,732		70,564		61,499		27,377		1,255
2014	—		—		—		—		—		—		—		64,437		66,524		57,446		29,232		2,599
2015	—		—		—		—		—		—		—		—		74,823		72,559		58,966		3,464
2016	—		—		—		—		—		—		—		—		—		107,761		99,005		3,814
Total																			$	924,788
Cumulative paid losses and loss expenses, net of reinsurance
For the years ended December 31,
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2007	$	83	$	987	$	1,744	$	62,321	$	90,128	$	100,560	$	100,693	$	110,254	$	120,328	$	122,867
2008	—		54		1,898		14,027		15,888		16,613		48,997		72,576		98,770		113,175
2009	—		—		1,045		8,755		32,193		38,000		56,126		73,072		77,628		80,201
2010	—		—		—		1,932		16,014		27,557		36,506		46,982		48,978		51,885
2011	—		—		—		—		2,367		11,766		21,266		33,639		71,782		85,003
2012	—		—		—		—		—		2,582		13,185		22,237		29,854		35,678
2013	—		—		—		—		—		—		2,193		13,807		21,289		26,783
2014	—		—		—		—		—		—		—		1,167		7,081		20,020
2015	—		—		—		—		—		—		—		—		1,243		7,130
2016	—		—		—		—		—		—		—		—		—		2,324
Total																			$	545,066
			Reserve for losses and loss expenses from accident year 2006 and prior, net of reinsurance																61
			Adjustment for unallocated claim expenses																26,477
			Reserve for losses and loss expenses, net of reinsurance																$	406,260

6.     Reserve for losses and loss expenses, cont'd.

Insurance Segment - Property, Marine/Energy & Aviation
Incurred losses and loss expenses, net of reinsurance
For the years ended December 31,																					At December 31, 2016
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016		IBNR reserves		Cumulative number of reported claims
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2007	$	45,128	$	32,772	$	25,714	$	28,766	$	29,071	$	28,925	$	33,206	$	33,741	$	34,083	$	32,680	$	—	201
2008	—		113,427		104,626		84,425		74,111		84,093		80,158		78,176		78,178		77,373		13		459
2009	—		—		60,589		48,196		23,651		21,225		19,933		19,423		19,780		19,341		33		568
2010	—		—		—		93,741		54,986		48,033		42,918		41,703		42,202		43,240		992		1,423
2011	—		—		—		—		163,234		139,932		125,588		124,243		127,840		133,297		256		2,486
2012	—		—		—		—		—		172,535		137,329		123,134		121,281		121,873		405		2,704
2013	—		—		—		—		—		—		115,600		101,878		85,794		80,971		3,933		3,145
2014	—		—		—		—		—		—		—		136,748		114,243		102,002		7,588		4,405
2015	—		—		—		—		—		—		—		—		183,192		184,867		18,890		6,281
2016	—		—		—		—		—		—		—		—		—		234,235		72,271		6,600
Total																			$	1,029,879
Cumulative paid losses and loss expenses, net of reinsurance
For the years ended December 31,
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2007	$	10,626	$	19,644	$	21,987	$	22,614	$	23,482	$	23,780	$	32,561	$	33,546	$	34,084	$	32,671
2008	—		40,140		57,685		62,922		64,434		75,187		75,042		77,234		77,910		77,239
2009	—		—		11,014		16,967		18,120		18,657		18,887		19,075		19,407		19,261
2010	—		—		—		11,680		29,150		33,938		36,306		38,880		40,782		41,802
2011	—		—		—		—		17,871		63,710		82,967		103,301		117,337		123,496
2012	—		—		—		—		—		18,709		79,533		87,216		102,447		108,983
2013	—		—		—		—		—		—		20,929		57,243		66,851		71,423
2014	—		—		—		—		—		—		—		26,491		60,418		79,321
2015	—		—		—		—		—		—		—		—		52,121		131,697
2016	—		—		—		—		—		—		—		—		—		77,448
Total																			$	763,341
			Reserve for losses and loss expenses from accident year 2006 and prior, net of reinsurance																3
			Adjustment for unallocated claim expenses																7,855
			Reserve for losses and loss expenses, net of reinsurance																$	274,396

6.     Reserve for losses and loss expenses, cont'd.

Reinsurance Segment - Catastrophe
Incurred losses and loss expenses, net of reinsurance
For the years ended December 31,																					At December 31, 2016
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016		IBNR reserves		Cumulative number of reported claims
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2007	$	168,640	$	126,561	$	104,527	$	102,855	$	91,502	$	88,252	$	86,273	$	90,379	$	97,851	$	102,929	$	153	192
2008	—		405,190		378,838		389,111		392,668		384,117		382,382		382,068		384,864		381,551		317		336
2009	—		—		102,411		74,817		59,051		55,933		55,229		56,944		58,910		60,788		559		204
2010	—		—		—		272,094		234,576		226,060		226,208		231,531		237,677		224,323		1,394		265
2011	—		—		—		—		622,350		591,965		589,614		603,680		612,274		624,448		4,640		574
2012	—		—		—		—		—		245,011		180,145		163,109		154,240		151,003		3,884		345
2013	—		—		—		—		—		—		157,097		129,469		127,984		124,311		1,454		315
2014	—		—		—		—		—		—		—		141,173		126,822		126,512		3,156		229
2015	—		—		—		—		—		—		—		—		60,465		47,255		4,057		224
2016	—		—		—		—		—		—		—		—		—		137,357		27,654		216
Total																			$	1,980,477
Cumulative paid losses and loss expenses, net of reinsurance
For the years ended December 31,
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2007	$	31,590	$	85,271	$	87,267	$	91,214	$	83,511	$	82,285	$	80,852	$	88,684	$	97,279	$	102,497
2008	—		154,382		255,721		316,023		353,658		375,455		378,322		380,366		382,431		380,409
2009	—		—		26,869		45,763		48,440		49,847		51,013		54,189		57,551		59,865
2010	—		—		—		58,556		124,322		152,264		173,341		193,340		207,716		208,329
2011	—		—		—		—		230,619		385,304		495,351		561,864		593,831		615,504
2012	—		—		—		—		—		56,614		105,745		126,802		134,288		136,862
2013	—		—		—		—		—		—		34,236		83,259		106,983		116,996
2014	—		—		—		—		—		—		—		49,337		107,546		117,040
2015	—		—		—		—		—		—		—		—		20,084		31,850
2016	—		—		—		—		—		—		—		—		—		43,793
Total																			$	1,813,145
			Reserve for losses and loss expenses from accident year 2006 and prior, net of reinsurance																91
			Adjustment for unallocated claim expenses																3,002
			Reserve for losses and loss expenses, net of reinsurance																$	170,425

6.     Reserve for losses and loss expenses, cont'd.

Reinsurance Segment - Property
Incurred losses and loss expenses, net of reinsurance
For the years ended December 31,																					At December 31, 2016
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016		IBNR reserves		Cumulative number of reported claims
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2007	$	123,502	$	137,474	$	127,294	$	120,598	$	116,552	$	115,947	$	119,773	$	121,653	$	121,902	$	117,706	$	2	309
2008	—		173,437		151,764		133,022		123,162		124,861		126,887		126,991		125,622		122,943		3		612
2009	—		—		151,371		123,151		116,114		114,137		114,342		115,111		115,213		111,782		114		991
2010	—		—		—		221,480		216,726		190,322		186,817		188,516		188,304		174,952		419		1,126
2011	—		—		—		—		344,015		334,865		312,365		312,278		305,567		335,228		2,089		942
2012	—		—		—		—		—		314,924		259,753		240,928		240,070		244,651		2,224		813
2013	—		—		—		—		—		—		255,632		239,844		217,661		199,195		5,650		1,017
2014	—		—		—		—		—		—		—		211,769		211,888		197,761		11,702		1,060
2015	—		—		—		—		—		—		—		—		184,586		181,761		16,927		880
2016	—		—		—		—		—		—		—		—		—		166,629		55,289		542
Total																			$	1,852,608
Cumulative paid losses and loss expenses, net of reinsurance
For the years ended December 31,
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2007	$	23,678	$	71,828	$	103,059	$	111,825	$	111,155	$	112,559	$	116,499	$	119,203	$	120,881	$	116,680
2008	—		30,553		79,457		104,279		107,291		110,039		118,745		122,512		123,954		121,472
2009	—		—		27,690		71,123		89,940		97,377		103,688		107,021		109,796		107,609
2010	—		—		—		49,442		117,260		141,348		163,173		175,919		180,555		170,367
2011	—		—		—		—		76,880		172,679		254,657		286,065		291,961		326,570
2012	—		—		—		—		—		53,488		146,671		192,022		214,711		230,684
2013	—		—		—		—		—		—		55,668		138,841		173,888		176,721
2014	—		—		—		—		—		—		—		51,635		134,663		158,766
2015	—		—		—		—		—		—		—		—		37,685		100,328
2016	—		—		—		—		—		—		—		—		—		33,787
Total																			$	1,542,984
			Reserve for losses and loss expenses from accident year 2006 and prior, net of reinsurance																4,954
			Adjustment for unallocated claim expenses																4,301
			Reserve for losses and loss expenses, net of reinsurance																$	318,879

6.     Reserve for losses and loss expenses, cont'd.

Reinsurance Segment - Casualty
Incurred losses and loss expenses, net of reinsurance
For the years ended December 31,																					At December 31, 2016
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016		IBNR reserves		Cumulative number of reported claims
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2007	$	108,468	$	116,074	$	116,095	$	120,815	$	115,024	$	114,484	$	112,945	$	111,664	$	110,369	$	112,366	$	13,382	549
2008	—		112,680		118,736		116,204		114,790		107,336		101,613		98,504		97,260		93,732		9,538		406
2009	—		—		116,515		126,969		124,218		127,972		126,505		121,969		115,317		114,901		20,438		433
2010	—		—		—		186,667		179,891		176,073		170,938		172,699		160,142		159,409		27,794		506
2011	—		—		—		—		198,159		199,035		197,138		204,187		195,094		196,946		35,929		604
2012	—		—		—		—		—		195,983		191,436		193,164		183,512		174,625		42,134		701
2013	—		—		—		—		—		—		178,401		172,604		170,144		163,986		62,188		842
2014	—		—		—		—		—		—		—		125,515		120,521		119,143		45,271		615
2015	—		—		—		—		—		—		—		—		119,276		119,529		58,182		250
2016	—		—		—		—		—		—		—		—		—		143,263		106,858		127
Total																			$	1,397,900
Cumulative paid losses and loss expenses, net of reinsurance
For the years ended December 31,
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2007	$	3,009	$	13,399	$	23,890	$	35,928	$	48,519	$	57,254	$	64,711	$	73,518	$	77,378	$	87,170
2008	—		8,475		17,338		30,528		43,923		51,831		58,419		67,856		72,592		75,906
2009	—		—		7,367		21,841		34,770		51,576		61,615		70,558		76,463		83,892
2010	—		—		—		14,826		34,469		56,997		75,290		92,382		104,037		114,875
2011	—		—		—		—		28,035		50,998		77,748		104,394		116,519		141,449
2012	—		—		—		—		—		30,667		54,457		75,456		92,072		105,209
2013	—		—		—		—		—		—		18,577		35,808		56,564		71,677
2014	—		—		—		—		—		—		—		10,390		33,215		49,951
2015	—		—		—		—		—		—		—		—		15,817		34,396
2016	—		—		—		—		—		—		—		—		—		18,837
Total																			$	783,362
			Reserve for losses and loss expenses from accident year 2006 and prior, net of reinsurance																106,483
			Adjustment for unallocated claim expenses																10,637
			Reserve for losses and loss expenses, net of reinsurance																$	731,658

6.     Reserve for losses and loss expenses, cont'd.

Reinsurance Segment - Professional Lines
Incurred losses and loss expenses, net of reinsurance
For the years ended December 31,																					At December 31, 2016
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016		IBNR reserves		Cumulative number of reported claims
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2007	$	46,031	$	51,283	$	49,539	$	43,988	$	41,956	$	41,037	$	43,261	$	42,115	$	41,989	$	37,980	$	1,539	310
2008	—		41,797		50,276		47,154		44,672		47,084		44,526		42,863		41,599		39,059		1,171		262
2009	—		—		41,430		43,003		41,681		40,763		35,771		36,560		36,474		38,720		2,098		204
2010	—		—		—		58,153		58,567		67,335		62,185		53,825		46,661		45,024		3,733		110
2011	—		—		—		—		55,812		56,535		55,286		44,921		36,691		31,390		4,828		57
2012	—		—		—		—		—		43,519		42,443		43,426		36,707		30,576		5,803		81
2013	—		—		—		—		—		—		48,933		49,513		45,382		41,403		21,619		48
2014	—		—		—		—		—		—		—		91,943		88,915		90,713		50,367		62
2015	—		—		—		—		—		—		—		—		130,595		130,832		99,261		55
2016	—		—		—		—		—		—		—		—		—		148,671		139,857		10
Total																			$	634,368
Cumulative paid losses and loss expenses, net of reinsurance
For the years ended December 31,
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2007	$	144	$	2,310	$	5,649	$	10,694	$	16,764	$	21,259	$	28,121	$	30,796	$	33,144	$	32,771
2008	—		341		2,156		6,200		12,752		22,496		26,811		30,169		32,873		33,434
2009	—		—		1,033		3,330		7,963		15,666		19,184		23,469		27,039		32,329
2010	—		—		—		2,249		7,348		14,481		24,511		31,313		36,100		36,181
2011	—		—		—		—		1,685		4,943		9,405		15,168		20,124		22,142
2012	—		—		—		—		—		965		1,929		4,204		9,147		13,757
2013	—		—		—		—		—		—		997		2,561		6,694		11,636
2014	—		—		—		—		—		—		—		1,149		6,446		22,822
2015	—		—		—		—		—		—		—		—		2,941		14,357
2016	—		—		—		—		—		—		—		—		—		1,920
Total																			$	221,349
			Reserve for losses and loss expenses from accident year 2006 and prior, net of reinsurance																5,540
			Adjustment for unallocated claim expenses																6,164
			Reserve for losses and loss expenses, net of reinsurance																$	424,723

6.     Reserve for losses and loss expenses, cont'd.

Reinsurance Segment - Specialty
Incurred losses and loss expenses, net of reinsurance
For the years ended December 31,																					At December 31, 2016
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016		IBNR reserves		Cumulative number of reported claims
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2007	$	229,505	$	202,655	$	197,905	$	193,084	$	189,577	$	187,961	$	187,949	$	185,743	$	183,044	$	174,205	$	435	288
2008	—		125,389		94,050		92,039		79,903		79,052		77,556		75,348		73,745		67,604		3,549		195
2009	—		—		98,431		81,269		73,387		69,691		67,605		65,333		62,834		62,501		4,414		170
2010	—		—		—		123,741		107,630		97,718		86,949		85,252		84,817		82,937		1,856		218
2011	—		—		—		—		111,517		100,639		86,832		82,514		82,984		82,014		2,565		274
2012	—		—		—		—		—		135,448		111,813		99,700		92,162		85,852		5,174		294
2013	—		—		—		—		—		—		103,014		93,335		92,119		83,806		9,865		329
2014	—		—		—		—		—		—		—		120,335		116,642		108,392		19,693		342
2015	—		—		—		—		—		—		—		—		150,288		149,473		35,118		318
2016	—		—		—		—		—		—		—		—		—		156,042		111,660		134
Total																			$	1,052,826
Cumulative paid losses and loss expenses, net of reinsurance
For the years ended December 31,
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2007	$	16,023	$	123,632	$	143,800	$	153,622	$	160,113	$	169,797	$	174,059	$	175,948	$	177,082	$	169,673
2008	—		15,525		38,261		47,410		52,461		58,971		61,915		64,489		65,005		61,384
2009	—		—		13,286		33,142		39,439		43,804		47,556		52,481		52,635		55,068
2010	—		—		—		15,110		48,043		57,822		64,199		68,915		72,072		74,797
2011	—		—		—		—		22,755		44,494		61,019		68,869		73,730		75,760
2012	—		—		—		—		—		29,756		53,695		64,242		72,510		74,517
2013	—		—		—		—		—		—		14,696		37,621		52,015		62,458
2014	—		—		—		—		—		—		—		23,579		49,847		66,813
2015	—		—		—		—		—		—		—		—		18,994		70,659
2016	—		—		—		—		—		—		—		—		—		19,265
Total																			$	730,394
			Reserve for losses and loss expenses from accident year 2006 and prior, net of reinsurance																24,265
			Adjustment for unallocated claim expenses																6,119
			Reserve for losses and loss expenses, net of reinsurance																$	352,816

6.     Reserve for losses and loss expenses, cont'd.

Reconciliation of Claims Development Tables to Gross Reserve for Losses and Loss Expenses

The following is a reconciliation of the net incurred and paid claims development tables to the reserve for losses and loss expenses in the consolidated balance sheet at December 31, 2016.

		December 31, 2016
		Net reserve for losses and loss expenses		Reinsurance recoverable on unpaid losses		Gross reserve for losses and loss expenses
Insurance
	Agriculture	$	131,055	$	116,832	$	247,887
	Casualty & other specialty	881,797		490,447		1,372,244
	Professional lines	406,260		305,114		711,374
	Property, marine/energy & aviation	274,396		193,088		467,484
Reinsurance
	Catastrophe	170,425		39,419		209,844
	Property	318,879		1,466		320,345
	Casualty	731,658		1,175		732,833
	Professional lines	424,723		449		425,172
	Specialty	352,816		65,139		417,955
Total		$	3,692,009	$	1,213,129	$	4,905,138

Historical Claims Duration

The following is unaudited supplementary information about historical average claims duration by line of business.

		Average annual percentage payout of incurred claims by age, net of reinsurance (number of years)
		1		2		3		4		5		6		7		8		9		10
Insurance Segment
	Agriculture	73.3	%	24.1	%	0.1	%	0.3	%	—	%	—	%	—	%	—	%	—	%	—	%
	Casualty & other specialty	5.5	%	11.3	%	15.5	%	15.1	%	12.8	%	7.1	%	4.5	%	2.7	%	3.7	%	1.4	%
	Professional lines	1.5	%	7.8	%	11.0	%	14.3	%	15.0	%	14.4	%	10.3	%	8.9	%	8.3	%	7.2	%
	Property, marine/energy & aviation	24.4	%	39.3	%	18.0	%	9.9	%	4.3	%	2.1	%	3.2	%	0.4	%	1.1	%	0.2	%
Reinsurance Segment
	Catastrophe	32.4	%	36.1	%	15.4	%	7.6	%	3.4	%	1.7	%	0.2	%	0.3	%	1.3	%	1.0	%
	Property	24.1	%	39.4	%	19.5	%	6.5	%	3.5	%	2.7	%	0.5	%	0.9	%	0.9	%	0.3	%
	Casualty	9.2	%	12.6	%	12.7	%	11.9	%	9.9	%	8.2	%	6.3	%	5.5	%	4.4	%	3.2	%
	Professional lines	1.9	%	6.7	%	12.1	%	18.5	%	16.9	%	12.2	%	8.2	%	6.4	%	4.3	%	3.3	%
	Specialty	13.9	%	37.7	%	20.6	%	7.0	%	7.6	%	4.6	%	2.2	%	3.1	%	0.6	%	—	%

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Reinsurance

12 Months Ended

Dec. 31, 2016

Reinsurance Disclosures [Abstract]

Reinsurance

7.     Reinsurance

The effects of reinsurance on premiums earned and written during the years ended December 31, 2016, 2015 and 2014 are as follows:

	Year Ended December 31, 2016						Year Ended December 31, 2015						Year Ended December 31, 2014
	Earned			Written			Earned			Written			Earned			Written
Direct	$	2,336,314		$	2,570,494		$	1,938,830		$	2,085,901		$	1,521,648		$	1,716,128
Assumed	1,635,379			1,631,676			1,331,831			1,234,960			1,132,370			1,177,948
Ceded	(1,608,033		)	(1,832,235		)	(1,292,208		)	(1,370,391		)	(790,040		)	(959,870		)
	$	2,363,660		$	2,369,935		$	1,978,453		$	1,950,470		$	1,863,978		$	1,934,206

The Company purchases reinsurance to reduce its exposure to risk of loss in certain insurance and reinsurance lines of business. Reinsurance recoverables are recorded as assets if the reinsurer is deemed able to meet its obligations. Ceded reinsurance contracts do not relieve the Company from its obligations to policyholders. The Company remains primarily liable to its policyholders for the portion reinsured to the extent that any reinsurer does not meet the obligations assumed under the reinsurance agreements.

During the year ended December 31, 2016, the Company recorded ceded losses of $824.3 million (2015 - $833.7 million; 2014 - $575.7 million). The balance of reinsurance recoverable on paid and unpaid losses at December 31, 2016 and 2015 was distributed as follows based on the ratings of the reinsurers:

Rating	December 31, 2016		December 31, 2015
U.S. Government sponsored program	$	141,443	$	234,596
A+ and above	889,814		458,255
A	397,691		476,184
A-	5,805		7,060
Not rated	52,165		19,875
Total	$	1,486,918	$	1,195,970

At December 31, 2016 and 2015, the Company held collateral of $493.3 million and $321.5 million, respectively, related to its ceded reinsurance agreements.

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Debt And Financing Arrangements

12 Months Ended

Dec. 31, 2016

Debt Instruments [Abstract]

Debt And Financing Arrangements

8.     Debt and financing arrangements

Credit Facility

On March 23, 2016, the Company and certain designated subsidiaries of the Company entered into a $450.0 millionfive-year letter of credit facility with JPMorgan Chase Bank, N.A. ("JPMorgan") as administrative agent (the "Credit Facility"). Upon entering into the Credit Facility, the Company terminated its existing $700.0 million credit agreement, dated April 19, 2012, with JPMorgan as administrative agent. The Credit Facility does not provide for revolving or term loans. As of December 31, 2016 and 2015, there were no borrowings under the Credit Facility and letters of credit outstanding under the Credit Facility were $199.8 million (2015 - $329.9 million).

The Credit Facility is collateralized on a several basis by each entity incurring such obligation by cash and securities deposited into collateral accounts from time to time with Deutsche Bank Trust Company Americas as collateral agent. So long as there is no default under the terms of the Credit Facility, the Company may request that the size of the Credit Facility be increased by $100.0 million, but no participating lender is obligated to increase its commitments under the Credit Facility.

8.     Debt and financing arrangements, cont'd.

The Company is required to pay a fee of 0.40% per annum on the daily stated amount of outstanding letters of credit issued under the Credit Facility. In addition, the Credit Facility requires the Company to pay to the lenders a commitment fee of0.125% per annum on the average daily amount of the unused commitments of the lenders. The Credit Facility permits a lender, if requested and in its discretion, to issue a letter of credit pursuant to which it fronts for the other lenders. For such letters of credit, such fronting lenders may receive certain fronting fees from the Company.

The Credit Facility requires the Company's compliance with certain customary restrictive covenants, including a financial covenant that the Company maintain a leverage ratio of no greater than 0.35:1.00 at any time. In addition, each of the Company's regulated insurance subsidiaries that has a claims paying rating from A.M. Best must maintain a rating of at least "B+" at all times.

The Credit Facility also contains customary event of default provisions, including failure to pay any unpaid drawing under a letter of credit under the Credit Facility or interest thereon and failure to pay any fee under the Credit Facility, insolvency events of the Company or any of its subsidiaries (other than certain immaterial subsidiaries), a change in control of the Company, a breach of the representations or covenants in the Credit Facility or the security documents relating thereto and certain defaults by the Company or its subsidiaries under other indebtedness. In the case of an event of default that occurs as a result of an insolvency event of the Company or one of its designated subsidiary borrowers, the commitments of the lenders will automatically terminate and the repayment of outstanding obligations will be automatically accelerated. Upon the occurrence of any other event of default under the Credit Facility, the lenders can terminate their commitments under the Credit Facility, require repayment of any outstanding obligations under the Credit Facility, give notice of non-extension of any outstanding letters of credit in accordance with their terms, require the delivery of cash collateral for outstanding letters of credit and foreclose on any collateral held by the lenders (or any agent on their behalf) under the Credit Facility.

Uncommitted Letter of Credit Agreements

The Company is party to certain uncommitted letter of credit reimbursement agreements ("LOC Agreements") that allow for the issuance of letters of credit in a variety of currencies, including U.S. dollars. The fees paid under the LOC Agreements depend on the amount of the outstanding letters of credit and vary from 0.30% to 0.45% on the principal amount of letters of credit outstanding to a fee negotiated at the time of issuance of the individual letters of credit. The total amount of letters of credit outstanding under the LOC Agreements at December 31, 2016 was $22.5 million (December 31, 2015 - $11.7 million).

7% Senior Notes

The Company issued $335.0 million principal amount of 7% Senior Notes due July 15, 2034 (the "7% Senior Notes"). The 7% Senior Notes are senior unsecured obligations of Endurance Holdings and rank equally with all of Endurance Holdings' existing and future unsecured and unsubordinated debt. The 7% Senior Notes are also effectively junior to claims of creditors of Endurance Holdings' subsidiaries, including policyholders, trade creditors, debt holders, and taxing authorities.

The indentures governing the 7% Senior Notes contain customary covenants and events of default for senior unsecured indebtedness, including events of default for non-payment of principal or interest, breaches of covenants, insolvency of the Company or a default by the Company under other outstanding indebtedness. The Company was in compliance with all covenants contained within the indentures governing the 7% Senior Notes as of December 31, 2016 and 2015.

6.15% Senior Notes

The Company issued $200.0 million principal amount of 6.15% Senior Notes due 2015 (the "6.15% Senior Notes"). The 6.15% Senior Notes were senior unsecured obligations of Endurance Holdings and ranked equally with all of Endurance Holdings' existing and future unsecured and unsubordinated debt. The 6.15% Senior Notes also were effectively junior to claims of creditors of Endurance Holdings' subsidiaries, including policyholders, trade creditors, debt holders, and taxing authorities. The 6.15% Senior Notes matured on October 15, 2015 and were repaid by the Company on that date.

8.     Debt and financing arrangements, cont'd.

4.7% Senior Notes

Upon closing of the acquisition of Montpelier, Montpelier, as issuer, Endurance Holdings, as parent guarantor, and The Bank of New York Mellon, as trustee, entered into a Fourth Supplemental Indenture, dated as of July 31, 2015 (the "Fourth Supplemental Indenture"). The Fourth Supplemental Indenture amended the Indenture, dated as of July 15, 2003 (as amended and supplemented from time to time (collectively, the "Senior Notes Supplemental Indentures")) applicable to the 4.7% Senior Unsecured Notes Due 2022 (the "4.7% Senior Notes") originally issued by Montpelier on October 2, 2012 in an aggregate principal amount of $300.0 million. The Senior Notes Supplemental Indentures provided for the unconditional assumption of the due and punctual payment of the principal of, any premium and interest on and any additional amounts with respect to the 4.7% Senior Notes and the performance of every obligation in the Senior Notes Indenture and the 4.7% Senior Notes to be performed or observed. The 4.7% Senior Notes bear a rate of interest equal to 4.7% per annum, payable semi-annually in arrears on April 15 and October 15 each year. The 4.7% Senior Notes mature on October 15, 2022. The 4.7% Senior Notes do not contain any covenants regarding financial ratios or specified levels of net worth or liquidity to which the Company or any of its subsidiaries must adhere but do contain customary covenants and events of default for senior unsecured indebtedness, including events of default for non-payment of principal or interest, breaches of covenants, insolvency of the Company or a default by the Company under other outstanding indebtedness. The Company was in compliance with all covenants contained within the indentures governing the 4.7% Senior Notes as of December 31, 2016 and 2015.

The 4.7% Senior Notes are senior unsecured obligations of Endurance Holdings and rank equally with all of Endurance Holdings' existing and future unsecured and unsubordinated debt. The 4.7% Senior Notes are also effectively junior to claims of creditors of Endurance Holdings' subsidiaries, including policyholders, trade creditors, debt holders, and taxing authorities.

Trust Preferred Securities

Upon closing the acquisition of Montpelier, Montpelier, as issuer, Endurance Holdings, as parent guarantor, and Wilmington Trust Company, as trustee, entered into the Second Supplemental Indenture, dated as of July 31, 2015 (the "Second Supplemental Indenture"). The Second Supplemental Indenture amended the Junior Subordinated Indenture, dated as of January 6, 2006 (as amended and supplemented from time to time (collectively, the "Junior Subordinated Supplemental Indentures")). The Junior Subordinated Supplemental Indentures provided for the express assumption by Endurance Holdings of the due and punctual payment of the principal of and any premium and interest (including any additional interest) on the unsecured junior subordinated deferrable interest notes issued by Montpelier in connection with the issuance of the trust preferred securities (the "Trust Preferred Securities") by MRH Capital Trust III (the "MRH Capital Trust") and the performance of every covenant of the Junior Subordinated Indenture on the part of Montpelier to be performed or observed. The MRH Capital Trust originally issued the Trust Preferred Securities in January 2006 in an aggregate principal amount of $100.0 million. The Trust Preferred Securities mature on March 30, 2036 and bear interest at a floating rate of 3-month LIBOR plus 380 basis points, reset quarterly. The Trust Preferred Securities may be redeemed prior to maturity at a redemption price equal to 100% of the principal amount thereof plus accrued interest, provided that the prior approval of any applicable insurance regulatory authority with respect to such redemption has been received. The Trust Preferred Securities do not contain any covenants regarding financial ratios or specified levels of net worth or liquidity to which the Company or any of its subsidiaries must adhere.

LIBOR Swap

Upon closing of the acquisition of Montpelier, the Company became a party to the LIBOR Swap, which will result in the future net cash flows in connection with the Trust Preferred Securities for the 5-year period beginning March 30, 2012 being the same as if these securities bore interest at a fixed rate of 4.905%, provided the Company holds the LIBOR Swap to its maturity. Net realized and unrealized gains and losses associated with the LIBOR Swap are reported within net realized and unrealized gains on the Company's Consolidated Statements of Income and Comprehensive Income, as opposed to interest expense.

Interest Payments

The Company made aggregate interest payments of $42.7 million during the year ended December 31, 2016 (2015 - $40.5 million; 2014 - $40.4 million).

8.     Debt and financing arrangements, cont'd.

BCRH Credit Agreement

On May 6, 2016, the Company, through a wholly-owned subsidiary, entered into a credit facility agreement with BCRH (the "BCRH Credit Facility"). The BCRH Credit Facility provides BCRH with an unsecured $20.0 million revolving credit facility for working capital and general corporate purposes and expires on September 30, 2018. Borrowings under the BCRH Credit Facility bear interest, set at the time of the borrowing, at a rate equal to the applicable LIBOR rate plus 150 basis points.  The BCRH Credit Facility contains covenants that limit BCRH's ability, among other things, to grant liens on its assets, sell assets, merge or consolidate, or incur debt.  If BCRH fails to comply with any of these covenants, the Company could terminate the BCRH Credit Facility and exercise remedies against BCRH. In addition, in the event of a default in the performance of any of the agreements or covenants under certain management agreements with BCML by BCRH, the Company has the right to terminate the BCRH Credit Facility. As of December 31, 2016, BCRH had no outstanding borrowings under the BCRH Credit Facility.

BCGR Credit Agreement

On May 16, 2016, the Company, through a wholly-owned subsidiary, entered into a credit facility agreement with BCGR (the "BCGR Credit Facility"). The BCGR Credit Facility provides BCGR with an unsecured $20.0 million revolving credit facility for working capital and general corporate purposes and expires on September 30, 2018. Borrowings under the BCGR Credit Facility bear interest, set at the time of the borrowing, at a rate equal to the applicable LIBOR rate plus 150 basis points.  The BCGR Credit Facility contains covenants that limit BCGR's ability, among other things, to grant liens on its assets, sell assets, merge or consolidate, or incur debt.  If BCGR fails to comply with any of these covenants, the Company could terminate the BCGR Credit Facility and exercise remedies against BCGR. In addition, in the event of a default in the performance of any of the agreements or covenants under certain management agreements with BCML by BCGR, the Company has the right to terminate the BCGR Credit Facility. As of December 31, 2016, BCGR had no outstanding borrowings under the BCGR Credit Facility.

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Derivatives

12 Months Ended

Dec. 31, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives

9.     Derivatives

In 2004, prior to the issuance of the 7% Senior Notes, the Company entered into an interest rate lock on a notional amount of $125.0 million to protect against interest rate increases before the anticipated issuance of the Senior Notes. The objective of the interest rate lock was to protect 50% of the forecasted receipt of proceeds from the issuance of the 7% Senior Notes offering, which was subject to change prior to issuance due to fluctuations in the benchmark 30 year U. S. Treasury rate. Upon issuance of the 7% Senior Notes, the interest rate lock was settled through payment by the Company of $2.7 million. The interest rate lock agreement was designated as a "cash flow hedge" under current accounting guidance and accordingly, the fair value of the derivative was recorded in other comprehensive (loss) income and is being recognized as a component of interest expense in the Consolidated Statements of Income and Comprehensive Income as the interest expense related to the 7% Senior Notes affects earnings. The net income effect of the interest rate lock was not material.

9.     Derivatives, cont'd.

The Company regularly transacts in certain derivative-based weather risk management products primarily to address weather and energy risks on behalf of third parties. The markets for these derivatives are generally linked to energy and agriculture commodities, weather and other natural phenomena. Generally, the Company's current portfolio of such derivative contracts is of short duration and such contracts are predominantly seasonal in nature. The Company also invests a portion of its investments with third party investment managers with investment guidelines that permit the use of derivative instruments. The Company may enter derivative transactions directly or as part of strategies employed by its external investment managers.

None of the Company's derivatives are designated as hedges under current accounting guidance, with the exception of the interest rate lock. The Company's objectives for holding these derivatives are as follows:

Interest Rate Futures, Swaps, Swaptions and Options - to manage exposure to interest rate risk, which can include increasing or decreasing its exposure to this risk through modification of the portfolio composition and duration.

Industry Loss Warranty ("ILW") Swaps - to manage underwriting risk. The Company has entered into ILW swap contracts which provide reinsurance-like protection to the Company for specific loss events associated with certain lines of its business. The Company has also sold ILW protection, which provides reinsurance-like protection to third parties for specific loss events.

Foreign Exchange Forwards, Futures and Options - as part of its overall currency risk management and investment strategies.

Credit Default Swaps - to manage market exposures. The Company may assume or economically hedge credit risk through credit default swaps to replicate or hedge investment positions. The original term of these credit default swaps is generally five years or less.

To-Be-Announced Mortgage-backed Securities (“TBAs”) - to enhance investment performance and as part of the overall investment strategy. TBAs represent commitments to purchase or sell a future issuance of agency mortgage-backed securities. For the period between the purchase of a TBA and issuance of the underlying securities, the Company’s position is accounted for as a derivative.

Energy and Weather Contracts - to address weather and energy risks. The Company may purchase or sell contracts with financial settlements based on the performance of an index linked to a quantifiable weather element, such as temperature, precipitation, snowfall or windspeed, and structures with multiple risk triggers indexed to a quantifiable weather element and a weather sensitive commodity price, such as temperature and electrical power or natural gas. Generally, the Company’s current portfolio of energy and weather derivative contracts is of comparably short duration and such contracts are predominantly seasonal in nature.

LIBOR Swap – to establish future net cash flows in connection with the Trust Preferred Securities for the 5-year period beginning March 30, 2012 as if these securities bore interest at a fixed rate of 4.905%. See Note 8, Debt and financing arrangements.

Loss Development Cover – as part of the sale of Montpelier U.S. Insurance Company ("MUSIC") to Selective Insurance Group, Inc. ("Selective"), Montpelier Reinsurance Ltd. ("Montpelier Re", now Endurance Bermuda) entered into a loss development cover with MUSIC which ensures that MUSIC's reserve for losses and loss expenses relating to retained business written on or prior to December 31, 2011 remains adequate. Under the loss development cover, any future adverse development associated with such retained reserves will be protected by Endurance Bermuda and any future favorable development associated with such retained reserves will benefit Endurance Bermuda.

9.     Derivatives, cont'd.

The fair values and the related notional values of derivatives at December 31, 2016 and 2015 are noted below.

	December 31, 2016				December 31, 2015
	Fair Value		Notional Principal Amount		Fair Value		Notional Principal Amount
Derivatives recorded in other assets
Foreign exchange forward contracts	$	629	$	34,630	$	425	$	38,818
Credit default swaps	266		5,450		36		4,225
Interest rate swaps	374		7,000		—		—
ILWs	1,010		20,000		—		—
TBAs	121,402		120,300		26,924		25,700
Energy and weather contracts	43,035		101,436		41,507		70,388
Total recorded in other assets	$	166,716			$	68,892
Derivatives recorded in other liabilities
Foreign exchange forward contracts	$	1,204	$	32,080	$	372	$	30,400
Credit default swaps	21		2,744		276		7,800
Interest rate swaps	59		1,100		7		42,000
Interest rate swaptions	34		5,400		—		—
Interest rate futures	—		—		8		54,488
ILWs	184		14,209		259		19,500
LIBOR swap	27		100,000		233		100,000
TBAs	50,704		50,400		—		—
Loss development cover	2,818		24,451		2,904		22,322
Energy and weather contracts	29,018		162,900		42,029		148,325
Total recorded in other liabilities	$	84,069			$	46,088
Net derivative asset	$	82,647			$	22,804

At December 31, 2016, derivative assets of $166.7 million (December 31, 2015 - $68.9 million) and liabilities of $84.1 million (December 31, 2015 - $46.1 million) were subject to master netting agreements, which provide for the ability to settle the derivative asset and liability with each counterparty on a net basis. Interest rate futures are not subject to master netting agreements. At December 31, 2016 and 2015, the Company's derivative instruments were recorded on a gross basis in the Consolidated Balance Sheets.

At December 31, 2016, the Company held no reverse repurchase agreements (December 31, 2015 - $30.0 million). These loans are fully collateralized, are generally outstanding for a short period of time and are presented as part of cash and cash equivalents in the Consolidated Balance Sheets. The required collateral for these loans is either cash or U.S. treasury securities at a minimum rate of 102% of the loan principal. Upon maturity, the Company receives principal and interest income.

9.     Derivatives, cont'd.

The gains and losses on the Consolidated Statements of Income and Comprehensive Income for derivatives for the years ended December 31, 2016, 2015 and 2014 were as follows:

	2016			2015			2014
Total gain included in net foreign exchange (gains) losses from foreign exchange forward contracts	$	516		$	2,095		$	1,880
Interest rate futures	(160		)	79			121
Credit default swaps	7			(50		)	30
Interest rate swaps	124			(915		)	(4,239		)
Interest rate swaptions	(20		)	56			477
ILWs	(1,675		)	(326		)	—
LIBOR swap	206			332			—
TBAs	(662		)	496			3,938
Total (losses) gains included in net realized and unrealized (losses) gains	(2,180		)	(328		)	327
Energy and weather contracts	4,835			2,281			(315		)
Loss development cover	(2,129		)	(1,419		)	—
Total gain (loss) included in other underwriting loss	2,706			862			(315		)
Total gains from derivatives	$	1,042		$	2,629		$	1,892

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Segment Reporting

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Segment Reporting

10.     Segment reporting

The determination of the Company's business segments is based on how the Company monitors the performance of its underwriting operations. The Company has two reportable business segments, Insurance and Reinsurance.

• Insurance – This segment is comprised of four lines of business: agriculture, casualty and other specialty, professional lines, and property, marine/energy and aviation. The agriculture line of business is comprised of multi-peril crop insurance, crop hail, livestock risk protection and other agriculture risk management products. The casualty and other specialty line of business is comprised of the insurance and facultative reinsurance of third party liability exposures, including casualty and healthcare liability. The professional line of business includes directors' and officers' liability, errors and omissions, employment practices liability, environmental liability and pension trust liability insurance. The property, marine/energy and aviation line of business is comprised of the insurance and facultative reinsurance of commercial properties, inland marine and ocean marine insurance, energy insurance, and general liability and property coverages for a wide range of general aviation risks.

• Reinsurance – This segment is comprised of five lines of business: catastrophe, property, casualty, professional lines, and specialty. The catastrophe line of business includes reinsurance for catastrophic perils on a treaty basis. The property line of business includes proportional and excess of loss reinsurance of personal and commercial exposures. The casualty line of business is comprised of third party liability exposures, clash and workers' compensation coverages. The professional line of business includes directors' and officers' liability, errors and omissions, employment practices liability, environmental liability and pension trust liability reinsurance. The specialty line of business includes the reinsurance of aviation and space business and proportional and non-proportional reinsurance of hull and cargo insurance business, and proportional and excess of loss coverages of contract and commercial surety business, personal accident coverages, political risk coverages, weather risk management products and agriculture coverages for weather related perils as well as protection from yield and price risks.

10.     Segment reporting, cont'd.

Management measures Insurance and Reinsurance segment results on the basis of the combined ratio, which is obtained by dividing the sum of the net losses and loss expenses, acquisition expenses and general and administrative expenses by net premiums earned. When purchased within a single line of business, ceded reinsurance and recoveries are accounted for within that line of business. When purchased across multiple lines of business, ceded reinsurance and recoveries are allocated to the lines of business in proportion to the related risks assumed. The Company does not manage its assets by segment; accordingly, investment income and total assets are not allocated to the individual business segments. General and administrative expenses incurred by segments are allocated directly. Remaining general and administrative expenses not incurred by the segments are classified as corporate expenses and are not allocated to the individual business segments. Ceded reinsurance and recoveries are recorded within the business segment to which they apply.

The underwriting results of Montpelier are included in the Company's segment results from August 1, 2015.

The following table provides a summary of the segment revenues and results for the year ended December 31, 2016, reserve for losses and loss expenses as of December 31, 2016 and the carrying value of goodwill as of December 31, 2016:

	Insurance			Reinsurance			Total
Revenues
Gross premiums written	$	2,570,494		$	1,631,676		$	4,202,170
Ceded premiums written	(1,514,240		)	(317,995		)	(1,832,235		)
Net premiums written	1,056,254			1,313,681			2,369,935
Net premiums earned	1,009,375			1,354,285			2,363,660
Other underwriting loss	—			(909		)	(909		)
	1,009,375			1,353,376			2,362,751
Expenses
Net losses and loss expenses	684,178			636,874			1,321,052
Acquisition expenses	149,763			310,720			460,483
General and administrative expenses	140,742			107,404			248,146
	974,683			1,054,998			2,029,681
Underwriting income	$	34,692		$	298,378		333,070
Net investment income							176,590
Corporate expenses							(51,706		)
Net foreign exchange gains							74,684
Net realized and unrealized losses							(12,419		)
Net impairment losses recognized in earnings							(10,769		)
Amortization of intangibles							(84,624		)
Interest expense							(43,860		)
Income before income taxes							$	380,966
Net loss ratio	67.9		%	47.1		%	55.9		%
Acquisition expense ratio	14.8		%	22.9		%	19.5		%
General and administrative expense ratio	13.9		%	7.9		%	12.7		%	(1)
Combined ratio	96.6		%	77.9		%	88.1		%
Reserve for losses and loss expenses	$	2,798,989		$	2,106,149		$	4,905,138
Goodwill	$	83,550		$	91,932		$	175,482

(1) Total general and administrative expense ratio includes general and administrative expenses and corporate expenses.

10.     Segment reporting, cont'd.

The following table provides a summary of the segment revenues and results for the year ended December 31, 2015, reserve for losses and loss expenses as of December 31, 2015 and the carrying value of goodwill as of December 31, 2015:

	Insurance			Reinsurance			Total
Revenues
Gross premiums written	$	2,085,901		$	1,234,960		$	3,320,861
Ceded premiums written	(1,205,528		)	(164,863		)	(1,370,391		)
Net premiums written	880,373			1,070,097			1,950,470
Net premiums earned	824,552			1,153,901			1,978,453
Other underwriting loss	—			(3,694		)	(3,694		)
	824,552			1,150,207			1,974,759
Expenses
Net losses and loss expenses	500,867			416,241			917,108
Acquisition expenses	80,252			267,633			347,885
General and administrative expenses	140,012			119,779			259,791
	721,131			803,653			1,524,784
Underwriting income	$	103,421		$	346,554		449,975
Net investment income							113,826
Corporate expenses							(114,429		)
Net foreign exchange losses							(26,964		)
Net realized and unrealized gains							12,660
Net impairment losses recognized in earnings							(3,715		)
Amortization of intangibles							(30,620		)
Interest expense							(41,260		)
Income before income taxes							$	359,473
Net loss ratio	60.8		%	36.0		%	46.4		%
Acquisition expense ratio	9.7		%	23.2		%	17.6		%
General and administrative expense ratio	17.0		%	10.4		%	18.9		%	(1)
Combined ratio	87.5		%	69.6		%	82.9		%
Reserve for losses and loss expenses	$	2,493,894		$	2,016,521		$	4,510,415
Goodwill	$	84,525		$	91,930		$	176,455

(1) Total general and administrative expense ratio includes general and administrative expenses and corporate expenses.

10.     Segment reporting, cont'd.

The following table provides a summary of the segment revenues and results for the year ended December 31, 2014, reserve for losses and loss expenses as of December 31, 2014 and the carrying value of goodwill as of December 31, 2014:

	Insurance			Reinsurance			Total
Revenues
Gross premiums written	$	1,716,128		$	1,177,948		$	2,894,076
Ceded premiums written	(855,722		)	(104,148		)	(959,870		)
Net premiums written	860,406			1,073,800			1,934,206
Net premiums earned	833,912			1,030,066			1,863,978
Other underwriting loss	—			(5,786		)	(5,786		)
	833,912			1,024,280			1,858,192
Expenses
Net losses and loss expenses	594,561			375,601			970,162
Acquisition expenses	65,368			254,145			319,513
General and administrative expenses	148,475			98,912			247,387
	808,404			728,658			1,537,062
Underwriting income	$	25,508		$	295,622		321,130
Net investment income							131,543
Corporate expenses							(66,200		)
Net foreign exchange losses							(3,839		)
Net realized and unrealized gains							14,283
Net impairment losses recognized in earnings							(625		)
Amortization of intangibles							(6,484		)
Interest expense							(40,968		)
Income before income taxes							$	348,840
Net loss ratio	71.4		%	36.4		%	52.1		%
Acquisition expense ratio	7.8		%	24.7		%	17.1		%
General and administrative expense ratio	17.7		%	9.6		%	16.8		%	(1)
Combined ratio	96.9		%	70.7		%	86.0		%
Reserve for losses and loss expenses	$	2,123,772		$	1,723,087		$	3,846,859
Goodwill	$	47,925		$	43,313		$	91,238

(1) Total general and administrative expense ratio includes general and administrative expenses and corporate expenses.

10.     Segment reporting, cont'd.

The following table provides gross premiums written by line of business for the years ended December 31, 2016, 2015 and 2014:

Business Segment	2016		2015		2014
Insurance
Agriculture	$	760,877	$	840,445	$	866,025
Casualty and other specialty	657,558		514,203		396,113
Professional lines	461,552		344,482		263,538
Property, marine/energy and aviation	690,507		386,771		190,452
Total Insurance	2,570,494		2,085,901		1,716,128
Reinsurance
Catastrophe	506,300		311,914		343,213
Property	250,447		209,392		287,326
Casualty	245,092		176,506		159,533
Professional lines	256,337		248,610		174,656
Specialty	373,500		288,538		213,220
Total Reinsurance	1,631,676		1,234,960		1,177,948
Total	$	4,202,170	$	3,320,861	$	2,894,076

The following table provides the geographic distribution of gross premiums written for the years ended December 31, 2016, 2015 and 2014:

	2016		2015		2014
United States	$	2,823,950	$	2,305,301	$	2,054,431
Worldwide	794,289		566,664		456,078
Europe	265,100		209,729		172,077
Asia	105,838		75,165		38,442
Japan	82,864		58,524		45,618
Australasia	49,727		41,309		61,994
Other	80,402		64,169		65,436
Total	$	4,202,170	$	3,320,861	$	2,894,076

The Company attributes gross premiums written to the geographic region in which the risks originate.

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Goodwill And Intangible Assets

12 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill And Intangible Assets

11.     Goodwill and intangible assets

The following table shows an analysis of goodwill and intangible assets for the years ended December 31, 2016 and 2015:

	Goodwill			Intangible assets with indefinite lives			Intangible assets with finite lives			Total
Net balance at December 31, 2014	$	91,238		$	11,779		$	50,388		$	153,405
Additions(1)	87,367			57,600			293,218			438,185
Amortization	—			—			(30,620		)	(30,620		)
Foreign currency translation	(2,150		)	(2,738		)	(2,122		)	(7,010		)
Net balance at December 31, 2015	$	176,455		$	66,641		$	310,864		$	553,960
Additions	(973		)	—			11			(962		)
Amortization	—			—			(84,624		)	(84,624		)
Net balance at December 31, 2016	$	175,482		$	66,641		$	226,251		$	468,374
Gross balance	$	177,632		$	74,829		$	431,271		$	683,732
Accumulated amortization	—			—			(202,898		)	(202,898		)
Accumulated impairment losses	—			(5,450		)	—			(5,450		)
Accumulated foreign currency translation	(2,150		)	(2,738		)	(2,122		)	(7,010		)
Net balance	$	175,482		$	66,641		$	226,251		$	468,374

(1) For additional information on the intangible assets acquired during 2015, see Note 3, Acquisition of Montpelier.

For the years ended December 31, 2016 and 2015, a valuation analysis was performed to determine the fair value of the Company's intangible assets with indefinite lives which showed that none of the Company's intangible assets were impaired.

No impairment of the Company's goodwill asset was noted following the annual impairment reviews during the years ended December 31, 2016 and 2015. The Company expects the amortization of the intangible assets with finite lives to approximate $63.7 million in 2017, $37.7 million in 2018, $27.5 million in 2019, $22.8 million in 2020, $21.6 million in 2021 and $53.0 million in all years thereafter.

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Commitments And Contingencies

12 Months Ended

Dec. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

Commitments And Contingencies

12.     Commitments and contingencies

Concentrations of credit risk. The areas where significant concentrations of credit risk may exist include reinsurance recoverables, investments and cash and cash equivalents. The Company's reinsurance recoverables on paid and unpaid losses at December 31, 2016 and 2015 amounted to $1,486.9 million and $1,196.0 million, respectively, and resulted from reinsurance arrangements entered into in the normal course of operations. A credit exposure exists with respect to reinsurance recoverables as they may become uncollectible. The Company manages its credit risk in its reinsurance relationships by transacting with reinsurers that it considers financially sound and, if necessary, the Company may hold collateral in the form of cash, trust accounts and/or irrevocable letters of credit. This collateral can be drawn on for amounts that remain unpaid beyond specified time periods on an individual reinsurer basis. As of December 31, 2016, $1,293.3 million of reinsurance recoverable on paid and unpaid losses (2015 - $941.5 million) was due from reinsurers rated A- or better by A.M. Best or S&P. An additional $141.4 million (2015-$234.6 million) of reinsurance recoverable on paid and unpaid losses was due from a U.S. government sponsored reinsurance program as of December 31, 2016. At December 31, 2016 and 2015, the Company held collateral of $493.3 million and $321.5 million, respectively, related to its ceded reinsurance agreements.

As of December 31, 2016, substantially all the Company's cash and investments were held by six custodians.

The Company's investment guidelines limit the amount of credit exposure to any one issuer other than the U.S. Treasury and certain other foreign government obligations rated AAA.

12.     Commitments and contingencies, cont'd.

Major production sources. The following table shows the percentage of gross premiums written generated through the Company's largest brokers for the years ended December 31, 2016, 2015 and 2014:

Broker	2016		2015		2014
Marsh & McLennan Companies, Inc.	20.9	%	19.8	%	19.1	%
Aon Benfield	14.3	%	12.8	%	13.2	%
Willis Companies	8.9	%	9.2	%	10.6	%
Total of largest brokers	44.1	%	41.8	%	42.9	%

Letters of credit. As of December 31, 2016, the Company had issued letters of credit of $222.3 million (2015 - $341.6 million) under its credit facilities and letter of credit reimbursement agreements in favor of certain ceding companies to collateralize obligations.

Investment commitments. As of December 31, 2016 and 2015, the Company had pledged cash and cash equivalents and fixed maturity investments of $106.8 million and $108.9 million, respectively, in favor of certain ceding companies to collateralize obligations. As of December 31, 2016 and 2015, the Company had also pledged $252.2 million and $383.3 million of its cash and fixed maturity investments as required to meet collateral obligations for $222.3 million and $341.6 million in secured letters of credit outstanding under its credit facilities, respectively. In addition, at December 31, 2016 and 2015, cash and fixed maturity investments with fair values of $207.8 million and $208.3 million were on deposit with U.S. state regulators, respectively.

The Company is subject to certain commitments with respect to other investments at December 31, 2016 and 2015. See Note 4, Investments.

Investment assets held in trust. Blue Water Re and Blue Water Re II do not operate with a financial strength rating and, instead, fully collateralizes their reinsurance obligations through cash and cash equivalents held in trust funds established by Blue Water Re and Blue Water Re II (the "Blue Water Trusts") for the benefit of ceding companies. As of December 31, 2016, the fair value of assets held in the Blue Water Trusts was $427.8 million (2015 - $438.9 million), which met the minimum values required on that date.

As of December 31, 2016, Blue Capital Re had pledged $191.4 million (2015- $195.3 million) of its cash and cash equivalents to trust accounts established for the benefit of Blue Water Re.

Blue Capital Re ILS fully collateralizes its insurance-linked security obligations through cash and cash equivalents held in trust funds established by Blue Capital Re ILS (the "Blue Capital Re ILS Trusts") for the benefit of third parties. As of December 31, 2016, the fair value of assets held in the Blue Capital Re ILS Trusts was $3.3 million (2015 - $5.2 million), which met the minimum value required on that date.

During 2015, Endurance Bermuda established a multi-beneficiary reinsurance trust (the "Endurance Reinsurance Trust") domiciled in Delaware. The Endurance Reinsurance Trust was established as a means of providing statutory credit to Endurance Bermuda's U.S. cedants. As of December 31, 2016, the fair value of the assets held in the Endurance Reinsurance Trust exceeded $783.9 million (2015 - $94.1 million), the minimum value required on that date.

During 2015, Endurance Bermuda also established a second multi-beneficiary reinsurance trust (the "Reduced Collateral Trust") domiciled in Delaware. The Reduced Collateral Trust was established as a means of providing statutory credit to Endurance Bermuda's U.S. cedants in connection with a reduction in collateral requirements in certain states. As of December 31, 2016, the fair value of the assets held in the Reduced Collateral Trust exceeded $16.4 million (2015 - $10.8 million), the minimum value required on that date.

Endurance Bermuda is party to a reinsurance trust (the "MUSIC Trust"). The MUSIC Trust was established as a means of providing statutory credit to MUSIC in support of the business retained in connection with the 2011 sale by Montpelier of MUSIC to Selective. As of December 31, 2016, the fair value of the assets held in the MUSIC Trust was $24.6 million (2015 - $21.3 million), the minimum value required on that date.

12.     Commitments and contingencies, cont'd.

Endurance Bermuda is party to a multi-beneficiary Reinsurance Trust originally established by Montpelier Re (the "Montpelier Reinsurance Trust") domiciled in New York. The Montpelier Reinsurance Trust was established as a means of providing statutory credit to Montpelier Re's U.S. cedants. Endurance Bermuda is also party to a multi-beneficiary reinsurance trust originally established by Montpelier Re (the "FL Trust") in connection with a reduction in its Florida collateral requirements. With the consent of the New York Department of Financial Services, all assets in excess of the statutory minimum required amounts in the Montpelier Reinsurance Trust and the FL Trust were transferred to the Endurance Reinsurance Trust and the Reduced Collateral Trust, respectively, upon the merger of Montpelier Re with and into Endurance Bermuda, with Endurance Bermuda as the surviving entity, on December 29, 2015.

The Company is party to a Lloyd's Deposit Trust Deed (the "Lloyd's Capital Trust") in order to meet Endurance Corporate Capital Limited ("ECCL")'s ongoing funds at Lloyd's ("FAL") requirements. The minimum value of cash and investments held by the Lloyd’s Capital Trust is determined on the basis of ECCL's Individual Capital Assessment, which is used to determine the required amount of FAL. As of December 31, 2016, the fair value of assets held in the Lloyd's Capital Trust was $323.6 million (2015- $276.8 million), which met the minimum value required on that date.

Premiums received by Syndicate 5151 are required to be received into the Lloyd's Premiums Trust Funds (the "Premiums Trust Funds"). Under the Premiums Trust Funds' deeds, assets may only be used for the payment of claims and valid expenses for a stated period of time. As of December 31, 2016, the fair value of assets held in the Premiums Trust Funds was $184.1 million (2015- $231.9 million).

The Company's investment assets held in trust appear on the Company's Consolidated Balance Sheets as cash and cash equivalents, fixed maturity investments. short-term investments and accrued investment income, as appropriate.

Lloyd's New Central Fund. The Lloyd's New Central Fund is available to satisfy claims if a member of Lloyd's is unable to meet its obligations to policyholders. The Lloyd's New Central Fund is funded by an annual levy imposed on members, which is determined annually by Lloyd's as a percentage of each member's gross written premiums (0.35% with respect to 2016 and 0.50% for 2015). In addition, the Council of Lloyd's has power to call on members to make an additional contribution to the Lloyd's New Central Fund of up to 3% of their underwriting capacity each year should it decide that such additional contributions are necessary. The Company currently estimates that its 2016 obligation to the Lloyd's New Central Fund will be approximately $1.1 million (2015- $1.0 million) and accrues for this obligation ratably throughout the year on a quarterly basis.

Lloyd's also imposes other charges on its members and the syndicates on which they participate, including an annual subscription charge (0.45% of gross written premiums with respect to 2016 and 0.50% for 2015) and an overseas business charge, levied as a percentage of gross international premiums (defined as business outside the U.K. and the Channel Islands), with the percentage depending on the type of business written. Lloyd's also has power to impose additional charges under Lloyd's Powers of Charging Byelaw. The Company currently estimates that its 2016 obligation to Lloyd's for such charges will be approximately $1.4 million (2015- $1.0 million) and accrues for this obligation ratably throughout the year on a quarterly basis.

Reinsurance commitments. In the ordinary course of business, the Company enters into reinsurance agreements that may include terms which could require the Company to collateralize certain of its obligations.

Employment agreements. The Company has entered into employment agreements with certain officers that provide for equity incentive awards, executive benefits and severance payments under certain circumstances.

12.     Commitments and contingencies, cont'd.

Operating leases. The Company leases office space and office equipment under operating leases. Future minimum lease commitments at December 31, 2016 are as follows:

Year ending December 31,	Amount
2017	$	15,895
2018	19,945
2019	22,420
2020	21,060
2021	19,099
2022 and thereafter	103,443
	$	201,862

Total lease expense under operating leases for the year ended December 31, 2016 was $12.8 million (2015 - $16.5 million; 2014 - $14.7 million). Total sublease income included in total lease expense under operating leases for the year ended December 31, 2016 was $0.4 million (2015 - $1.3 million; 2014 - $1.3 million).

Legal Proceedings. The Company is party to various legal proceedings generally arising in the normal course of its business. While any proceeding contains an element of uncertainty, the Company does not believe that the eventual outcome of any litigation or arbitration proceeding to which it is presently a party could have a material adverse effect on its financial condition, results of operations or business. Pursuant to the Company's insurance and reinsurance agreements, disputes are generally required to be finally settled by arbitration.

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Shareholders' Equity

12 Months Ended

Dec. 31, 2016

Stockholders' Equity Note [Abstract]

Shareholders' Equity

13.     Shareholders' equity

The Company’s share capital at December 31, 2016 and 2015 is comprised as follows:

	2016	2015
Preferred shares
Authorized – $1.00 par value each	9,200	9,209,200
Issued, outstanding and fully paid:
Series B preferred shares - $1.00 par value each; aggregate liquidation preference nil (2015 - $230,000)	—	9,200,000
Series C preferred shares – $1.00 par value each; aggregate liquidation preference $230,000 (2015 - $230,000)	9,200	9,200
	9,200	9,209,200
Common shares
Authorized - $1.00 par value each	120,000,000	120,000,000
Issued, outstanding and fully paid:
Ordinary common shares - $1.00 par value each	67,627,901	66,797,991

During 2016, the Company issued restricted shares under its equity compensation plans (Note 16, Stock-based employee compensation and other stock plans). The common shares issued, outstanding and fully paid for at December 31, 2016 includes 1,396,538 restricted shares.

On June 1, 2011, Endurance Holdings issued 9,200,000 shares of its 7.5% Non-Cumulative Preferred Shares, Series B (the "Series B Preferred Shares"). Endurance Holdings received net proceeds of $224.0 million from its offering of Series B Preferred Shares, after expenses and underwriting discounts. The proceeds from the Series B Preferred Shares were used to provide additional capital to Endurance Holdings' subsidiaries and for other general corporate purposes.

13.     Shareholders' equity, cont'd.

On November 24, 2015, Endurance Holdings issued 9,200 shares of its 6.35% Non-Cumulative Preferred Shares, Series C (the "Series C Preferred Shares") (equivalent to 9,200,000 Depositary Shares), each of which represents a 1/1,000th interest in a Series C Preferred Share, $1.00 par value and $25,000.00 liquidation preference per share (equivalent to $25.00 per Depositary Share). The Series C Preferred Shares sold were registered under the Securities Act of 1933, as amended. The Series C Preferred Shares were issued at a price to the public of $25,000.00 per share (equivalent to $25.00 per Depositary Share). Endurance Holdings received net proceeds of $222.0 million from its offering of Series C Preferred Shares, after expenses and underwriting discounts. The proceeds of the offering of Series C Preferred Shares were used to redeem on December 24, 2015 all 8,000,000 of Endurance Holdings' outstanding 7.75% Non-Cumulative Preferred Shares, Series A and for general corporate purposes.

On June 1, 2016, Endurance Holdings redeemed all 9,200,000 of its Series B Preferred Shares. The Series B Preferred shares were redeemed at a redemption price of $25.00 per share together with an amount equal to any dividends that were declared but not paid prior to June 1, 2016.

The Series C Preferred shares are traded on the New York Stock Exchange. The Series C Preferred Shares have no stated maturity date and are redeemable in whole or in part at the option of Endurance Holdings any time after December 15, 2020 at a redemption price of $25,000.00 per Series C Preferred Share (equivalent to $25.00 per Depositary Share), plus any declared and unpaid dividends, without accumulation of any undeclared dividends. Endurance Holdings may redeem all but not less than all of the Series C Preferred Shares before the redemption date at a redemption price of $26,000.00 per Series C Preferred Share (equivalent to $26.00 per Depositary Share), plus any declared and unpaid dividends to the date of redemption, if Endurance Holdings is required to submit a proposal to the holders of the Series C Preferred Shares concerning an amalgamation, consolidation, merger, similar corporate transaction, change in Bermuda law or other matter that requires the vote of the holders of the Series C Preferred Shares voting separately as a single class.

Dividends on the Series C Preferred Shares, when, as and if declared by the Board of Directors of Endurance Holdings or a duly authorized committee of the board, accrue and are payable on the liquidation preference amount from the original issue date, quarterly in arrears on each dividend payment date, at an annual rate of 6.35%. Dividends on the Series C Preferred Shares are not cumulative.

Upon any voluntary or involuntary liquidation, dissolution or winding-up of Endurance Holdings, holders of the Series C Preferred Shares and any parity shares are entitled to receive out of Endurance Holdings' assets available for distribution to shareholders, before any distribution is made to holders of Endurance Holdings' common equity securities, a liquidating distribution in the amount of $25,000.00 per Series C Preferred Share (equivalent to $25.00 per Depositary Share), plus any declared and unpaid dividends, without accumulation of any undeclared dividends. Distributions will be made pro rata as to the Series C Preferred Shares and any parity shares and only to the extent of Endurance Holdings' assets, if any, that are available after satisfaction of all liabilities to creditors.

Holders of the Series C Preferred Shares have no voting rights, except with respect to certain dividend non-payments or as otherwise required by Bermuda law or Endurance Holdings' bye-laws.On February 25, 2016, the Company's Board of Directors authorized the repurchase of up to 5.0 million ordinary shares and share equivalents through February 28, 2018. This authorization superseded previous authorizations. No common shares were repurchased by the Company during 2016 or 2015. Common shares repurchased by the Company are not canceled and are classified as treasury shares. The Company's treasury shares are recorded at cost as a reduction in common shares and additional paid-in capital within shareholders' equity. There were 5.0 million shares authorized for repurchase remaining at December 31, 2016 (2015 - 5.0 million).

13.     Shareholders' equity, cont'd.

Accumulated other comprehensive loss

The following table presents the changes in accumulated other comprehensive (loss) income balances by component for the years ended December 31, 2016 and 2015:

	For the Year Ended December 31, 2016
	Losses on cash flow hedges			Unrealized (losses) gains on available for sale securities			Foreign currency translation  adjustments			Total
Beginning balance	$	(1,678	)	$	(12,638	)	$	(32,318	)	$	(46,634	)
Other comprehensive (loss) income before reclassifications	—			54,287			(86,324		)	(32,037		)
Amounts reclassified from accumulated other comprehensive loss (1)	88			19,834			—			19,922
Net current period other comprehensive loss	88			74,121			(86,324		)	(12,115		)
Ending balance	$	(1,590	)	$	61,483		$	(118,642	)	$	(58,749	)

(1) All amounts are net of tax.

	For the Year Ended December 31, 2015
	Losses on cash flow hedges			Unrealized (losses) gains on available for sale securities			Foreign currency translation  adjustments			Total
Beginning balance	$	(1,766	)	$	86,100		$	(7,628	)	$	76,706
Other comprehensive (loss) income before reclassifications	—			(65,941		)	(24,690		)	(90,631		)
Amounts reclassified from accumulated other comprehensive loss(1)	88			(32,797		)	—			(32,709		)
Net current period other comprehensive loss	88			(98,738		)	(24,690		)	(123,340		)
Ending balance	$	(1,678	)	$	(12,638	)	$	(32,318	)	$	(46,634	)

(1) All amounts are net of tax.

13.     Shareholders' equity, cont'd.

The following tables present the significant items reclassified out of accumulated other comprehensive loss during the years ended December 31, 2016 and 2015:

For the Year Ended December 31, 2016
Details about accumulated other comprehensive loss components	Amount reclassified from accumulated other comprehensive loss		Affected line item in the Consolidated Statements of Income and Comprehensive Income
Losses on cash flow hedges - Debt	$	88	Interest expense
	88		Total before income taxes
	—		Income tax expense
	$	88	Total net of income taxes
Unrealized holding losses (gains) on available for sale securities	$	7,984	Net realized and unrealized (losses) gains
	10,769		Net impairment losses recognized in earnings
	18,753		Total before income taxes
	1,081		Income tax expense
	$	19,834	Total net of income taxes

For the Year Ended December 31, 2015
Details about accumulated other comprehensive loss components	Amount reclassified from accumulated other comprehensive loss			Affected line item in the Consolidated Statements of Income and Comprehensive Income
Losses on cash flow hedges - Debt	$	88		Interest expense
	88			Total before income taxes
	—			Income tax expense
	$	88		Total net of income taxes
Unrealized holding losses (gains) on available for sale securities	$	(37,245	)	Net realized and unrealized (losses) gains
	3,715			Net impairment losses recognized in earnings
	(33,530		)	Total before income taxes
	733			Income tax benefit
	$	(32,797	)	Total net of income taxes

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Earnings Per Share

12 Months Ended

Dec. 31, 2016

Earnings Per Share [Abstract]

Earnings Per Share

14.     Earnings per share

The following table sets forth the computation of basic and diluted earnings per share for the years ended December 31, 2016, 2015 and 2014:

	2016			2015			2014
Numerator:
Net income available to common and participating common shareholders	$	333,218		$	311,345		$	315,700
Less amount allocated to participating common shareholders (1)	(6,973		)	(8,749		)	(9,118		)
Net income allocated to common shareholders	$	326,245		$	302,596		$	306,582
Denominator:
Weighted average shares - basic	65,991,947			52,707,390			43,368,062
Share equivalents:
Options	65,351			118,392			47,111
Restricted shares and restricted share units	78,075			2,721			70
Weighted average shares - diluted	66,135,373			52,828,503			43,415,243
Basic earnings per common share	$	4.94		$	5.74		$	7.07
Diluted earnings per common share	$	4.93		$	5.73		$	7.06

(1) Represents earnings and dividends attributable to holders of unvested restricted shares and restricted share units issued under the Company's stock compensation plans that are considered participating. In periods of loss, no losses are allocated to participating common shareholders (unvested restricted shares and restricted share units).

The following table sets forth dividends declared in the years ended December 31, 2016, 2015 and 2014, respectively:

	2016		2015		2014
Dividends declared per Series A preferred share	$	—	$	1.9375	$	1.9375
Dividends declared per Series B preferred share	$	0.8646	$	1.8750	$	1.8750
Dividends declared per Series C preferred share	$	1,680.10	$	—	$	—
Dividends declared per common share	$	1.52	$	1.40	$	1.36

On June 1, 2016, Endurance Holdings redeemed all 9,200,000 of its Series B Preferred Shares. The Series B Preferred shares were redeemed at a redemption price of $25.00 per share together with an amount equal to any dividends that were declared but not paid prior to June 1, 2016.

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Related Party Transactions

12 Months Ended

Dec. 31, 2016

Related Party Transactions [Abstract]

Related Party Transactions

15.     Related party transactions

Fidelity

Fidelity Institutional Asset Management, a subsidiary of FMR, LLC ("Fidelity"), provides investment management services to the Company. Fidelity and its affiliates previously owned greater than 5% of Endurance Holdings' ordinary shares outstanding and was considered a related party. At December 31, 2016 Fidelity and its affiliates were no longer considered a related party as Fidelity's share ownership was less than 5%.

BlackRock

Since 2002, subsidiaries of BlackRock Inc. ("BlackRock") have provided the Company and certain of its subsidiaries with various investment management, investment accounting and risk analysis services. BlackRock owned approximately 4.9 million or 7.3% of Endurance Holdings' ordinary shares outstanding at December 31, 2016 and were therefore considered a related party. The Company incurred expenses totaling $4.6 million (2015: $3.6 million; 2014: $3.2 million) for the year ended December 31, 2016 in relation to investment services rendered by BlackRock, of which $2.8 million was accrued at December 31, 2016 (December 31, 2015: $1.6 million).

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Stock-Based Employee Compensation And Other Stock Plans

12 Months Ended

Dec. 31, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Employee Compensation And Other Stock Plans

16.     Stock-based employee compensation and other stock plans

At its meeting on February 28, 2007, the Company's Board of Directors adopted the 2007 Equity Incentive Plan ("2007 Plan") to allow for the issuance of equity incentives to non-employee directors of the Company and eligible employees of the Company and its subsidiaries. The 2007 Plan was approved by the Company's shareholders at the Annual General Meeting of Shareholders held on May 9, 2007. At that time, the Company's existing Amended and Restated 2002 Stock Option Plan and the Amended and Restated 2003 Non-Employee Director Incentive Plan were merged into the new 2007 Plan.

The 2007 Plan allows the Company to grant to employees and non-employee directors restricted shares, restricted share units, stock appreciation rights, share bonuses, options to purchase the Company's ordinary shares and other forms of equity incentive awards, as determined by the Compensation Committee of the Company's Board of Directors.

Under the terms of the 2007 Plan as amended, and after the consolidation of the Company's previous plans, a total of 2,100,000 ordinary shares were reserved for issuance. At a meeting on February 11, 2010, the Company's Board of Directors adopted a resolution to add 1,795,000 ordinary shares to the 2007 Plan, which was subsequently approved by the Company's shareholders at the Annual General Meeting of Shareholders held on May 13, 2010.

Upon the acquisition of Montpelier, each Montpelier restricted share unit (including any restricted share units held by an executive officer or non-employee director) that was outstanding immediately prior to the completion of the acquisition of Montpelier subject solely to service-based vesting requirements (a "Montpelier Fixed RSU") was converted into a service-based restricted share unit under the 2007 Plan as amended, on the same terms and conditions as were applicable to such Montpelier Fixed RSU immediately prior to the completion of the acquisition of Montpelier. The number of service-based restricted share units granted was equal to the product of (i) 0.472, the exchange ratio in the Merger Agreement and (ii) the number of Montpelier common shares that were subject to such Montpelier Fixed RSU immediately prior to the completion of the acquisition.

Upon completion of the acquisition of Montpelier, the number of Montpelier restricted share units that were outstanding immediately prior to the completion of the acquisition of Montpelier that were not Montpelier Fixed RSUs ("Montpelier Variable RSUs") was equal to the greater of:

(i) the number of Montpelier Variable RSUs determined by using Montpelier’s actual performance as of the last completed quarter prior to the completion of the acquisition of Montpelier, as determined by the Compensation and Nominating Committee of the Montpelier board of directors prior to the completion of the acquisition of Montpelier after reasonable consultation with the Company, and

(ii) the target number of Montpelier Variable RSUs.

Each Montpelier Variable RSU that was outstanding immediately prior to the completion of the acquisition of Montpelier (including any Montpelier Variable RSUs that were held by an executive officer) was converted into a service-based restricted share unit under the 2007 Plan, as amended, on the same terms and conditions as were applicable to such Montpelier Variable RSU immediately prior to the completion of the acquisition of Montpelier. The number of service based restricted share units granted was equal to the product of (x) 0.472, the exchange ratio in the Merger Agreement and (y) the number of Montpelier common shares that were subject to such Montpelier Variable RSU immediately prior to the completion of the acquisition.

On August 3, 2015, the Company registered 842,755 ordinary shares for issuance.

Upon completion of the acquisition of Montpelier, the Company assumed the Montpelier Re Holdings Ltd. 2012 Long-Term Incentive Plan (the "2012 Montpelier Equity Plan") and all awards outstanding thereunder and the future use of the remaining shares available for issuance under the 2012 Montpelier Equity Plan. The number of remaining shares under the 2012 Montpelier Equity Plan was adjusted pursuant to the terms of the Merger Agreement resulting in the registration of 1,025,349 ordinary shares under the 2007 Plan as amended, for future issuance thereunder.

16.     Stock-based employee compensation and other stock plans, cont'd.

After the approval of the additional shares, a total of 5,763,104 ordinary shares were reserved for issuance. The Company issues new ordinary shares upon the issuance of share based equity incentives, such as restricted shares, or the exercise or settlement of outstanding derivative equity incentives, such as options or restricted share units. As of December 31, 2016, 2,071,035 (2015 - 2,463,798) ordinary shares remained available for issuance under the 2007 and prior Plans.

On May 28, 2013, the Board of Directors elected John R. Charman as the Company's Chairman and Chief Executive Officer. Mr. Charman received an option to purchase 800,000 ordinary shares at an exercise price of $48.20 per share, and a grant of 708,890 restricted shares, as an employment inducement pursuant to Rule 303A.08 of the New York Stock Exchange Corporate Governance Standards and were made outside of the 2007 Plan.

Options

The 800,000 options awarded to Mr. Charman, as discussed above, vest annually, in five equal tranches commencing on May 28, 2013, subject to the Mr. Charman's continued employment, or in the event of certain terminations of employment and other events. Mr. Charman's options have a ten-year contractual life. The Company uses the Black-Scholes-Merton formula to estimate the value of stock options granted.

Prior to 2005, the Company issued stock options to employees and non-employee directors, with exercise prices equal to the fair market values of the Company's ordinary shares on the grant dates. Options generally vested at a rate of 20% per year over a five-year term. Option awards had a 10-year contractual life.

Performance-Based Restricted Shares

Commencing in March 2015, the Company issued performance-based restricted shares to certain of its senior executives under the 2007 Plan. The performance-based restricted shares represent the right to receive a specified number of ordinary shares in the future, based upon the achievement of pre-established performance criteria during the applicable performance period. Performance-based restricted shares granted to employees vest three years after the date of grant. The number of performance-based restricted shares that will ultimately vest is based upon the actual performance of the Company compared to the performance of a peer group of publicly-traded companies.

Performance-based restricted shares are forfeited upon departure from the Company for any reason prior to the applicable vesting date other than in cases of death, disability, termination of employment in connection with a change in control or retirement. In the case of death, disability or change in control, 50% of the performance-based restricted shares will vest upon the date of death or disability or termination of employment in connection with a change in control. Where an employee meets certain retirement eligibility criteria, the performance-based restricted shares will continue to vest post-employment, subject to compliance with certain non-competition obligations.

The fair value of the performance-based restricted shares is measured at the grant date using a Monte Carlo simulation based on pre-established targets relating to certain performance based measures achieved by the Company, with the associated expense recognized over the applicable performance and vesting period.

Time-Based Restricted Shares

The Company has issued time-based restricted shares to employees and non-employee directors of the Company's Board of Directors under the 2007 Plan. Restricted shares granted to employees generally vest pro-rata over a four-year period. Restricted shares are forfeited upon departure from the Company for any reason prior to the applicable vesting date other than in cases where an employee meets certain retirement eligibility criteria that allow for continuing post-employment vesting of restricted shares, subject to compliance with certain non-competition obligations.

Restricted shares granted to non-employee directors vest twelve months following the date of grant and are forfeited upon departure of the non-employee director from the Company's Board of Directors for any reason prior to the applicable vesting date.

16.     Stock-based employee compensation and other stock plans, cont'd.

The 708,890 restricted shares awarded to Mr. Charman, as discussed above, vest annually, in five equal tranches

commencing on May 28, 2013, subject to Mr. Charman’s continued employment, or in the event of certain terminations of

employment and other events. Mr. Charman is party to a shareholders' agreement that restricts the sale of any vested restricted shares until 2018.

The fair value of the restricted shares granted is equal to the fair market value of the Company's ordinary shares on the grant date. Compensation equal to the fair market value of the restricted shares at the measurement date is amortized and charged to income over the vesting period.

Restricted Share Units

The Company has issued restricted share units to employees in select jurisdictions where the issuance of restricted shares results in unfavorable tax treatment for employee recipients. Restricted shares granted to employees generally vest pro rata over a four-year period. Restricted share units are forfeited upon departure from the Company for any reason prior to the applicable vesting date other than in cases where an employee meets certain retirement eligibility criteria which allow for continuing post-employment vesting of restricted share units, subject to compliance with certain non-competition obligations.

On July 31, 2015, upon completion of the Company's acquisition of Montpelier, outstanding Montpelier restricted share units were assumed by the Company and adjusted to represent the right to receive 0.472 of the Company's ordinary shares for each outstanding Montpelier restricted share unit rounded down to the next whole number of the Company's ordinary shares.

The fair value of the restricted share units granted or assumed is equal to the fair market value of the Company's ordinary shares on the grant or assumption date, as applicable. Compensation equal to the fair market value of the restricted share units at the measurement date is amortized and charged to income over the vesting period.

Summary of Stock-Based Employee Compensation Activity

A summary of option activity, including options held by employees, during the year ended December 31, 2016 is presented below:

	For the year ended December 31, 2016
Options Outstanding	Number of Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (years)	Aggregate Intrinsic Value
Beginning of year	320,000		$	48.20
Granted	—		—
Exercised	(160,000	)	48.20
Forfeited	—		—
Outstanding, end of year	160,000		$	48.20	6.41	$	7,072
Exercisable and vested options, end of year	—		$	—	N/A	$	—

No options were granted or expired during the years ended December 31, 2016, 2015, and 2014. During the years ended December 31, 2016, 2015 and 2014, 160,000, 160,000 and 160,000 options vested, respectively. The total intrinsic value of options exercised during the years ended December 31, 2016, 2015 and 2014 was $3.2 million, $9.5 million, and $0.3 million, respectively. The Company received proceeds of $7.7 million from the exercise of options during the year ended December 31, 2016. The Company issued new ordinary shares in connection with the exercise of the above options.

For the years ended December 31, 2016, 2015 and 2014, compensation costs recognized in earnings for all options totaled $0.8 million, $1.6 million and $3.1 million, respectively. There were unrecognized stock-based compensation expenses of $0.2 million related to unvested stock options at December 31, 2016 (2015 - $1.0 million). This expense is expected to be recognized in 2017.

16.     Stock-based employee compensation and other stock plans, cont'd.

A summary of the restricted share and restricted share unit activity during the year ended December 31, 2016, is presented below:

	Number of Shares/Units		Aggregate Intrinsic Value
Unvested, beginning of year	1,663,582
Granted	638,217
Settled	(769,445	)
Forfeited	(65,638	)
Unvested, end of year	1,466,716
Outstanding, end of year	1,466,716		$	135,525

During the years ended December 31, 2016, 2015 and 2014, the Company granted an aggregate of 638,217, 1,388,179 and 505,997 restricted shares and restricted share units under the 2007 Plan. As mentioned above, during the year ended December 31, 2015, the Company also assumed 841,926, the converted outstanding Montpelier restricted share units, adjusted to represent the right to receive 0.472 of the Company's ordinary shares for each outstanding Montpelier restricted share unit rounded down to the next whole number of ordinary shares. The restricted shares and restricted share units granted had weighted average grant date fair values of $38.5 million, $91.2 million and $26.7 million in the years ended December 31, 2016, 2015 and 2014, respectively. During the years ended December 31, 2016, 2015 and 2014, the aggregate fair value of restricted shares and restricted share units that vested was $44.3 million, $60.0 million and $18.7 million, respectively.

For the years ended December 31, 2016, 2015 and 2014, compensation costs recognized in earnings for all restricted shares and restricted share units were $35.7 million, $53.9 million, and $27.9 million, respectively. At December 31, 2016, compensation costs not yet recognized related to non-vested awards was $26.2 million (2015 - $26.7 million). This expense is expected to be recognized between 2017 and 2020, with approximately 65.3% expected to be recognized during 2017.

Employee Share Purchase Plan

On October 26, 2005, Endurance Holdings' shareholders approved the Employee Share Purchase Plan (the "2005 ESPP"). Following approval by the Company's shareholders in 2005, 200,000 of Endurance Holdings' ordinary shares were reserved for issuance under the 2005 ESPP. At a meeting on February 23, 2011, the Company's Board of Directors adopted a resolution to add 200,000 ordinary shares to the 2005 ESPP. The addition of 200,000 ordinary shares to the 2005 ESPP was approved by the Company's shareholders at the Annual General Meeting of Shareholders held on May 11, 2011. After approval of the additional ordinary shares, a total of 400,000 ordinary shares were reserved for issuance under the 2005 ESPP. The 2005 ESPP terminated in accordance with its terms on October 1, 2015. On February 26, 2015, the Compensation Committee of the Company's Board of Directors approved a new employee share purchase plan ("2015 ESPP"), which was approved by the Company's shareholders at its Annual General Meeting of Shareholders held on May 20, 2015. The Company ceased offering and issuing new shares under the 2005 ESPP on June 30, 2015 and began offering and issuing new shares under the 2015 ESPP after July 1, 2015. Following approval by the Company's shareholders in 2015, 300,000 of Endurance Holdings' ordinary shares were reserved for issuance under the 2015 ESPP.

The 2015 ESPP is not subject to any provisions of the Employee Retirement Income Security Act of 1974 as amended, and is not a qualified plan within the meaning of Section 402(a) of the Internal Revenue Code of 1986, as amended (the "Code"). The ESPP is a qualified plan under Section 423 of the Code.

Under the terms of the 2015 ESPP, employees of Endurance Holdings and certain of its subsidiaries may purchase Endurance Holdings' ordinary shares at a 15% discount to the closing market price on the purchase date. Participants are eligible to receive dividends on the shares purchased in the 2015 ESPP and are entitled to vote such shares at any Annual General or Special Meeting of Shareholders. These shares are restricted from sale, transfer or certification for one year from the purchase date.

On signing of the Merger Agreement with Sompo, the 2015 ESPP was suspended as of January 1, 2017 and will be terminated if and when the Merger closes.

Total expenses related to this plan for the year ended December 31, 2016 was approximately $425,000 (2015 - $298,000; 2014 - $234,000).

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Pension Plan

12 Months Ended

Dec. 31, 2016

Pension and Other Postretirement Benefit Expense [Abstract]

Pension Plan

17.     Pension plan

The Company provides pension benefits to eligible employees through various defined contribution plans sponsored by the Company. Under the Company's defined contribution plans, the Company makes contributions to its employees' accounts in amounts ranging from 4% to 12% of its employees’ eligible earnings. In addition, under certain defined contribution plans, employee contributions may be supplemented by matching contributions made by the Company based on the level of employee contribution. Lastly, the Company may provide additional contributions, depending on its annual financial performance. The employee and Company contributions in the defined contribution plans are invested at the election of each employee in one or more of several investment portfolios offered by third party investment advisors. Company contributions for the year ended December 31, 2016 resulted in an expense of $15.8 million being recorded in earnings (2015 - $13.8 million; 2014 - $12.6 million).

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Statutory Requirements And Dividend Restrictions

12 Months Ended

Dec. 31, 2016

Statutory Requirements And Dividend Restrictions [Abstract]

Statutory Requirements And Dividend Restrictions

18.     Statutory requirements and dividend restrictions

The Company's insurance and reinsurance operations are subject to insurance and/or reinsurance laws and regulations in the jurisdictions in which they operate, the most significant of which are Bermuda, the United States, the United Kingdom and Singapore. These regulations include certain restrictions on the amount of dividends or other distributions, such as loans or cash advances, available to shareholders without prior approval of the insurance regulatory authorities.

The combined statutory capital and combined statutory net income (loss) for the Company's principal operating subsidiaries, excluding Syndicate 5151, in their respective jurisdictions were as follows:

Statutory capital	Bermuda				United States				U.K. (1)				Singapore
	2016		2015		2016		2015		2016		2015		2016		2015
Required statutory capital	$	1,614,465	$	1,276,453	$	350,947	$	281,905	$	184,799	$	84,086	$	3,461	$	3,524
Actual statutory capital	4,525,290		4,307,249		810,704		768,791		451,257		538,265		59,025		49,842

Statutory net income (loss)	Bermuda		United States		U.K.		Singapore
Year ended December 31, 2016	$	486,254	$	64,688	$	79,912	$	10,460
Year ended December 31, 2015	417,298		70,398		969		17,542
Year ended December 31, 2014	453,127		28,450		4,135		4,111

(1)U.K. includes the statutory capital of Endurance U.K.

Bermuda

As a Bermuda holding company, Endurance Holdings is subject to the Bermuda Companies Act 1981, which limits the Company's ability to pay dividends and make distributions to its shareholders. The Company's retained earnings are unrestricted; however, the Company is not permitted to declare or pay a dividend, or make a distribution out of contributed surplus, if it is, or would after the payment be, unable to pay its liabilities as they come due, or if the realizable value of its assets would be less than its liabilities. Endurance Holdings had, as of December 31, 2016, $2.9 billion in retained earnings and an additional $2.0 billion in contributed surplus available to declare or pay a dividend, or make a distribution out of contributed surplus, so long as Endurance Holdings remained in compliance with the Bermuda Companies Act 1981 following such dividend or distribution. Endurance Holdings relies on dividends from Endurance Bermuda to provide cash flow required for debt service and dividends to shareholders.

18.     Statutory requirements and dividend restrictions, cont'd.

Endurance Bermuda

Endurance Bermuda is a registered Class 4 insurer under the Insurance Act 1978 ("Bermuda Insurance Act") and related regulations as amended (the "Insurance Act"). Endurance Bermuda is required to maintain minimum solvency standards and to hold available statutory capital and surplus equal to or exceeding the Enhanced Capital Requirement as determined by the Bermuda Monetary Authority ("BMA") based upon a standard mathematical model that correlates the risk underwritten to the capital that is dedicated to the business. The required capital noted in the table above has been based on the Enhanced Capital Requirement. In addition to the Enhanced Capital Requirement, Endurance Bermuda is required to maintain a minimum statutory liquidity ratio and solvency margin. For all periods presented herein, Endurance Bermuda materially exceeded these minimum requirements.

Endurance Bermuda's ability to pay dividends and make capital distributions is subject to certain regulatory restrictions based on the Enhanced Capital Requirement, limits on the amount of Endurance Bermuda's premiums written and net reserves for losses and loss expenses and a minimum general capital and surplus requirement of $100.0 million. At December 31, 2016, Endurance Bermuda can pay dividends of $1,109.3 million (2015 - $1,034.4 million) to Endurance Holdings without prior approval under Bermuda law.

Blue Water Re and Blue Water Re II

Blue Water Re and Blue Water Re II are registered with the BMA as Special Purpose Insurers and are not subject to the BMA's Bermuda Solvency Capital Requirement ("BSCR"); however, the Bermuda Insurance Act limits the maximum amount of annual dividends and distributions that may be paid by Blue Water Re and Blue Water Re II. There is no minimum solvency margin or liquidity ratio that must be maintained by Blue Water Re or Blue Water Re II so long as the value of their assets exceed the value of their liabilities. At December 31, 2016, Blue Water Re's assets exceeded the value of its liabilities by $263.1 million (2015 - $269.6 million), and Blue Water Re II's assets exceeded the value of its liabilities by $11.3 million (2015 - $212.5 million). Blue Water Re and Blue Water Re II did not declare or pay any dividends to their parent, BCML, during 2016.

Blue Capital Re

Blue Capital Re is registered with the BMA as a Class 3A insurer. The Bermuda Insurance Act requires Blue Capital Re to maintain minimum levels of statutory capital and surplus to maintain minimum liquidity ratios and to meet minimum solvency margins. At December 31, 2016, Blue Capital Re exceeded these minimum requirements. At December 31, 2016, Blue Capital Re can pay dividends of $45.9 million (2015- $50.6 million) to it's parent without prior approval under Bermuda law.

BCML

BCML is licensed and supervised by the BMA to carry on investment business and as an insurance agent/manager. BCML is not subject to any material minimum solvency requirements.

United States

Endurance Assurance, Endurance American, Endurance American Specialty and Endurance Risk Solutions are subject to regulation by the Delaware Department of Insurance. American Agri-Business is subject to regulation by the Texas Department of Insurance. Endurance Holdings' Delaware and Texas domiciled entities must maintain a minimum level of statutory capital as established by such jurisdictions. The amount of required capital is determined through the use of the Risk Based Capital model established by the National Association of Insurance Commissioners and adopted by Delaware and Texas. The required capital noted in the table above has been based on the Risk Based Capital model and represents the authorized control level risk based capital for these entities.

Dividends for each U.S. operating subsidiary are limited to the greater of 10% of policyholders' surplus or statutory net income, excluding realized capital gains for Endurance Holdings' Delaware domiciled entities. In addition, dividends may only be declared or distributed out of earned surplus. At December 31, 2016, Endurance Assurance, Endurance American, Endurance Risk Solutions and Endurance American Specialty did not have earned surplus and thus were precluded from declaring or distributing dividends during 2016 without the prior approval of the applicable insurance regulator. If the parent company is also an insurer, as is the case with Endurance American, Endurance American Specialty and Endurance Risk Solutions, the parent company or companies must also meet their own dividend eligibility requirements in order to pass along any dividends received from subsidiary insurance companies. At December 31, 2016, American Agri-Business (with notice to the Texas Department of Insurance) could pay dividends of $3.3 million (2015 - $3.5 million) without prior regulatory approval.

18.     Statutory requirements and dividend restrictions, cont'd.

U.K.

Endurance U.K.

The required and actual statutory capital amounts in the "U.K." category in the table above include amounts related to Endurance U.K. Under the jurisdiction of the United Kingdom's Prudential Regulation Authority ("PRA"), Endurance U.K. must maintain a margin of solvency at all times under the Solvency II Directive from the European Insurance and Occupational Pensions Authority which was effective January 1, 2016. The regulations stipulate that insurers are required to calculate their minimum capital requirement and solvency capital requirement ("SCR"). Insurers can either apply for approval of an internal model to calculate the SCR or adopt the standard formula. Endurance U.K. has utilized the standard formula for the SCR as of December 31, 2016. As of December 31, 2015, the SCR was based upon Solvency I to calculate the capital requirement under Individual Capital Guidance, the risk based capital assessment, superseded by Solvency II. At December 31, 2016 and 2015, the actual capital for Endurance U.K. exceeded all of the capital requirements promulgated by the PRA.

The PRA regulatory requirements impose no explicit restrictions on Endurance U.K.'s ability to pay a dividend, but Endurance U.K. would have to notify the PRA 28 days prior to any proposed dividend payment. Dividends may only be distributed from profits available for distribution. At December 31, 2016 Endurance U.K did not have retained profits available for distribution.

Endurance at Lloyd's

The Company participates in the Lloyd's market through Syndicate 5151, which is managed by Endurance at Lloyd's and is capitalized through ECCL. As a corporate member of Lloyd's, ECCL is subject to the oversight of the Council of Lloyd's.

ECCL is required to deposit cash, securities or letters of credit (or a combination of these assets) with Lloyd's in order to satisfy its FAL requirements, which are met through the Lloyd's Capital Trust. At December 31, 2016, ECCL had total FAL of $323.6 million (2015- $276.8 million) which was provided by Endurance Bermuda.

Singapore

Endurance Bermuda's Singapore branch ("Singapore Branch") is subject to Fund Solvency and Capital Adequacy requirements by the Monetary Authority of Singapore as a foreign company in Singapore and is regulated by the Monetary Authority of Singapore pursuant to the Insurance Act in Singapore. At December 31, 2016 and 2015, the Singapore Branch complied with the capital requirements promulgated by the Monetary Authority of Singapore.

Switzerland

In 2008, Endurance Bermuda established a branch in Zurich, Switzerland named Endurance Specialty Insurance Ltd. Pembroke (Bermuda) Zurich Branch. In 2015, Endurance U.K. established a branch in Zurich named Endurance Worldwide Insurance Limited, London, Zurich Branch. Swiss law does not impose additional regulation upon a Swiss branch of a foreign reinsurer.

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Taxes

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Taxes

19.     Taxes

The Company has operating subsidiaries and branch operations in the United States, United Kingdom, Switzerland and Singapore, which are subject to the relevant taxes in those jurisdictions. During 2014, the United States Internal Revenue Service ("IRS") completed its audit of the income tax returns of of the Company's U.S. subsidiaries for 2009, 2010 and 2011. The audit results were immaterial to the operations of the Company. During 2015, the IRS commenced an examination of the 2012 income tax return of Endurance Bermuda. Although the timing and ultimate resolution of the IRS examinations is uncertain, the Company does not expect the resolution of the examinations to result in a material change to the Company's financial position, results of operations or cash flows. In January 2017, the Switzerland tax authority issued a tax assessment for the Swiss branch of Endurance Bermuda for years 2013 and 2014. The Company disagrees with the assessment and is appealing the assessment. Although the timing and ultimate resolution of the Swiss assessment is uncertain, the Company does not expect the resolution of the examinations to result in a material change to the Company's financial position, results of operations or cash flows. As of December 31, 2016, none of the Company's other operating subsidiaries or branch operations were under examination in any of the jurisdictions in which they operate. The Company remains subject to examination for tax years 2008 through 2016.

19.     Taxes, cont'd.

Endurance Holdings and Endurance Bermuda are not required to pay any income or capital gains taxes in Bermuda. Endurance Bermuda has received written assurance dated May 16, 2011 and Endurance Holdings has received written assurance dated May 17, 2011 from the Minister of Finance of Bermuda under the Exempted Undertakings Tax Protection Act of 1966 of Bermuda, as amended, that in the event any legislation is enacted in Bermuda imposing any tax computed on profits or income, or computed on any capital asset, gain or appreciation or any tax in the nature of estate duty or inheritance tax, such tax shall not be applicable to the Company until March 31, 2035 provided that the assurance is subject to the condition that it will not prevent the application of any taxes payable by the Company in respect of real property or leasehold interests in Bermuda held by it. Endurance Holdings and Endurance Bermuda intend to operate in a manner such that they will owe no United States tax other than premium excise tax and withholding taxes on certain investments.

The income tax benefit (expense) was as follows for the years ended December 31,2016, 2015 and 2014, respectively:

	2016			2015			2014
Current income tax expense	$	(10,993	)	$	(6,262	)	$	(1,804	)
Deferred income tax benefit	11,174			1,900			1,414
Income tax benefit (expense)	$	181		$	(4,362	)	$	(390	)

Of the 2016 current income tax expense, $1.8 million related to taxes incurred in the United States (2015 - $4.2 million; 2014 - $1.8 million), $4.2 million related to taxes incurred in the United Kingdom (2015 - $2.2 million; 2014 - nil) and $5.0 million related to taxes incurred in Switzerland (2015 - $0.1 million tax benefit; 2014 - nil). Of the deferred income tax benefit, $5.2 million related to deferred income tax benefit in the United States (2015 - $0.7 million; 2014 - $1.4 million), $1.7 million related to deferred income tax benefit in the United Kingdom (2015 - $0.2 million; 2014 - nil) and $4.2 million related to deferred income tax benefit in Bermuda including its branches (2015 - $1.0 million; 2014 - nil). The deferred income tax benefit in Bermuda related to amortization of intangible assets from the acquisition of Montpelier which the Company elected not to push down to Endurance at Lloyd's under current accounting guidance.

In 2016 a full valuation allowance has been recorded against the net deferred asset position of Endurance Bermuda's branches in Singapore and Switzerland. In 2015 a full valuation allowance had been recorded against the net asset position of Endurance Bermuda's branches in Singapore and Switzerland and a United Kingdom subsidiary.

The actual income tax benefit (expense) attributable to income for the years ended December 31, 2016, 2015 and 2014 differed from the amount computed by applying the combined effective rate of 0% under Bermuda law to income before income taxes, as a result of the following:

	2016			2015			2014
Computed expected tax expense	$	—		$	—		$	—
Tax expense effect on foreign taxes	(26,149		)	(8,071		)	(1,661		)
Change in valuation allowance	26,330			3,709			1,271
Income tax benefit (expense)	$	181		$	(4,362	)	$	(390	)

19.     Taxes, cont'd.

Deferred income taxes represent the tax effect of the differences between the book and tax bases of assets and liabilities. Net deferred income tax assets and liabilities consisted of the following as of December 31, 2016 and 2015:

	2016			2015
Deferred income tax assets:
Unearned premiums	$	28,523		$	25,172
Loss reserves	26,594			27,370
Net operating loss carryforward	66,315			92,844
Deferred compensation	26,451			25,268
Deferred interest	48,359			46,568
Unrealized investment losses	1,803			1,568
Realized investment losses	4,010			4,972
Other	3,830			11,077
Total deferred income tax assets	205,885			234,839
Deferred income tax liabilities:
Deferred acquisition costs	(1,325		)	(8,179		)
Unrealized foreign exchange gains	—			(4,087		)
Temporary differences related to acquisition	(29,033		)	(35,461		)
Start up costs	(1,989		)	(1,565		)
Other	(10,002		)	(7,561		)
Total deferred income tax liabilities	(42,349		)	(56,853		)
Valuation allowance	(104,808		)	(131,138		)
Net deferred income tax asset	$	58,728		$	46,848

Net income tax payments for the years ended December 31, 2016, 2015 and 2014 totaled $7.8 million, $2.4 million, and $0.9 million respectively. Net operating loss carryforwards gross of tax in the amount of $119.8 million, $45.9 million, $61.1 million and $44.5 million are available for application against future taxable income in the United States, United Kingdom, and Endurance Bermuda's branches in Singapore and Switzerland, respectively. These net operating loss carry forwards have no expiration date in the United Kingdom and Singapore. In Switzerland and the United States, the net operating loss carry forwards expire through 2016 and 2028, respectively.

A valuation allowance is provided when it is more likely than not that some portion of the deferred tax assets will not be realized. At December 31, 2016, management has established a valuation allowance of $104.8 million (2015 - $131.1 million) against net deferred tax assets in the Company's United States subsidiaries and Endurance Bermuda's Singapore and Switzerland branches.

The Company's income before income taxes was distributed as follows for the years ended December 31, 2016, 2015 and 2014, respectively:

	2016		2015		2014
U.S. (domestic)	$	40,872	$	95,649	$	60,112
Non-U.S. (foreign) (1)	340,094		263,824		288,728
Income before income taxes	$	380,966	$	359,473	$	348,840

(1) The Company's non-U.S. (foreign) operating subsidiaries write business that is exposed to risks originating in the United States.

In 2015 Management concluded that valuation allowances were required against the net operating loss and net capital loss carryforwards assumed as part of the Montpelier acquisition. The valuation allowances had been established as Internal Revenue Code Section 382 limits the application of net operating loss and net capital loss carryforwards following an ownership change. Accordingly, a tax effected valuation allowance of $11.6 million and $0.7 million, respectively, was required as of August 1, 2015. The Montpelier capital loss carryforwards have fully expired. The operating loss carryforwards available per year are $0.2 million as required by Internal Revenue Code Section 382.

19.     Taxes, cont'd.

As of December 31, 2016 and 2015, the Company had no material uncertain tax positions.

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Condensed Unaudited Quarterly Financial Data

12 Months Ended

Dec. 31, 2016

Quarterly Financial Information Disclosure [Abstract]

Condensed Unaudited Quarterly Financial Data

20.     Condensed unaudited quarterly financial data

The following is a summary of the unaudited quarterly data for the year ended December 31, 2016:

	Quarter Ended    March 31, 2016			Quarter Ended    June 30, 2016			Quarter Ended    September 30, 2016			Quarter Ended    December 31, 2016
Net premiums earned	$	553,191		$	599,608		$	610,156		$	600,705
Net investment income	11,181			43,977			62,236			59,196
Net realized and unrealized gains (losses)	13,787			6,347			13,405			(45,958		)
Net impairment losses recognized in earnings	(623		)	(9,841		)	(183		)	(122		)
Subtotal	$	577,536		$	640,091		$	685,614		$	613,821
Net losses and loss expenses	$	243,328		$	376,112		$	331,462		$	370,150
Acquisition, general and administrative, and corporate expenses	$	187,838		$	178,870		$	201,081		$	192,546
Net foreign exchange gains	$	(11,729	)	$	(32,751	)	$	(18,576	)	$	(11,628	)
Net income	$	124,644		$	87,628		$	139,400		$	29,475
Net income attributable to non-controlling interests	(9,063		)	(3,714		)	(5,679		)	(5,674		)
Net income available to Endurance Holdings	$	115,581		$	83,914		$	133,721		$	23,801
Preferred dividends	(9,203		)	(7,293		)	(3,651		)	(3,652		)
Net income available to Endurance Holdings' common and participating common shareholders	$	106,378		$	76,621		$	130,070		$	20,149
Basic earnings per share	$	1.58		$	1.14		$	1.93		$	0.30
Diluted earnings per share	$	1.58		$	1.14		$	1.92		$	0.30

The following is a summary of the unaudited quarterly data for the year ended December 31, 2015:

	Quarter Ended    March 31, 2015			Quarter Ended    June 30, 2015			Quarter Ended    September 30, 2015			Quarter Ended    December 31, 2015
Net premiums earned	$	389,859		$	458,135		$	557,003		$	573,456
Net investment income	41,861			32,252			16,533			23,180
Net realized and unrealized gains (losses)	18,189			9,680			5,029			(20,238		)
Net impairment losses recognized in earnings	(649		)	(424		)	(38		)	(2,604		)
Subtotal	$	449,260		$	499,643		$	578,527		$	573,794
Net losses and loss expenses	$	171,936		$	239,122		$	263,993		$	242,057
Acquisition, general and administrative, and corporate expenses	$	149,251		$	152,570		$	225,558		$	194,726
Net foreign exchange losses (gains)	$	7,552		$	12,981		$	8,621		$	(2,190	)
Net income	$	108,479		$	84,206		$	54,530		$	107,896
Net income attributable to non-controlling interests	—			—			(2,707		)	(8,309		)
Net income available to Endurance Holdings	$	108,479		$	84,206		$	51,823		$	99,587
Preferred dividends	(8,188		)	(8,188		)	(8,188		)	(8,186		)
Net income available to Endurance Holdings' common and participating common shareholders	$	100,291		$	76,018		$	43,635		$	91,401
Basic earnings per share	$	2.24		$	1.69		$	0.73		$	1.36
Diluted earnings per share	$	2.23		$	1.68		$	0.73		$	1.36

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Schedule I Summary Of Investments Other Than Investments In Related Parties

12 Months Ended

Dec. 31, 2016

Summary of Investments, Other than Investments in Related Parties [Abstract]

Schedule I Summary Of Investments Other Than Investments In Related Parties

SCHEDULE I

ENDURANCE SPECIALTY HOLDINGS LTD. AND SUBSIDIARIES

SUMMARY OF INVESTMENTS OTHER THAN INVESTMENTS IN RELATED PARTIES

AT DECEMBER 31, 2016

(In thousands of United States dollars)

	Cost(1)		Market Value		Amount at Which Shown on the Balance Sheet
Type of Investment:
Fixed Maturity Investments
U.S. government and government agencies and authorities	$	1,003,969	$	1,001,882	$	1,001,882
States, municipalities and political subdivisions	17,115		18,357		18,357
Foreign governments	180,583		178,919		178,919
Corporate bonds	2,120,463		2,151,610		2,151,610
Mortgage-backed securities
Agency mortgage-backed securities	1,461,354		1,472,343		1,472,343
Non-agency mortgage-backed securities	603,293		607,791		607,791
Collateralized loan and debt obligations	369,126		371,256		371,256
Asset-backed securities	509,595		510,663		510,663
Total fixed maturity investments	$	6,265,498	$	6,312,821	$	6,312,821
Short-term investments	408,811		408,704		408,704
Equity securities	477,778		501,141		501,141
Other investments	470,299		588,308		588,308
Total Investments	$	7,622,386	$	7,810,974	$	7,810,974

(1) Investments in fixed maturity investments and short-term investments are shown at amortized cost.

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Schedule II Condensed Financial Statement Information Of The Registrant

12 Months Ended

Dec. 31, 2016

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Schedule II Condensed Financial Statement Information of the Registrant

SCHEDULE II

ENDURANCE SPECIALTY HOLDINGS LTD.

CONDENSED FINANCIAL STATEMENT INFORMATION OF THE REGISTRANT

BALANCE SHEETS-PARENT ONLY

DECEMBER 31, 2016 AND 2015

(In thousands of United States dollars except share amounts)

	2016			2015
ASSETS
Investment in subsidiary	$	5,296,821		$	5,683,801
Cash and cash equivalents	3,375			3,206
Amounts due from subsidiaries	513,621			105,497
Goodwill and intangible assets	45,710			51,938
Other assets	12,833			14,435
Total assets	$	5,872,360		$	5,858,877
LIABILITIES
Debt	$	708,378		$	707,591
Other liabilities	21,849			27,214
Total liabilities	730,227			734,805
SHAREHOLDERS' EQUITY
Preferred shares
Series B and C, non-cumulative - 9,200 issued and outstanding (2015 - 9,209,200)	9			9,209
Common shares
Common shares, ordinary - 67,627,901 issued and outstanding (2015 - 66,797,991)	67,628			66,798
Additional paid-in capital	1,961,917			2,145,836
Accumulated other comprehensive loss	(58,749		)	(46,634		)
Retained earnings	2,911,634			2,681,053
Total shareholders' equity available to Endurance Holdings	4,882,439			4,856,262
Non-controlling interests	259,694			267,810
Total shareholders' equity	5,142,133			5,124,072
Total liabilities and shareholders' equity	$	5,872,360		$	5,858,877

See accompanying notes to the consolidated financial statements.

SCHEDULE II

ENDURANCE SPECIALTY HOLDINGS LTD.

CONDENSED FINANCIAL STATEMENT INFORMATION OF THE REGISTRANT, Cont’d.

STATEMENTS OF INCOME-PARENT ONLY

YEARS ENDED DECEMBER 31, 2016, 2015, AND 2014

(In thousands of United States dollars)

	2016			2015			2014
Revenues
Net investment income	$	5		$	9		$	248
Net realized and unrealized gains	206			332			1,957
Other income	10,200			10,200			10,200
Total revenues	10,411			10,541			12,405
Expenses
General and administrative expenses	41,879			93,237			61,325
Amortization of intangibles	6,228			1,558			—
Net foreign exchange (gains) losses	(20		)	5			(1		)
Interest expense	43,833			41,188			40,968
Total expenses	91,920			135,988			102,292
Loss before income taxes and equity in net income of subsidiaries	(81,509		)	(125,447		)	(89,887		)
Equity in net income of subsidiaries	462,656			480,558			438,337
Net income	381,147			355,111			348,450
Net income attributable to non-controlling interests	(24,130		)	(11,016		)	—
Net income available to Endurance Holdings	357,017			344,095			348,450
Preferred dividends	(23,799		)	(32,750		)	(32,750		)
Net income available to Endurance Holdings' common and participating common shareholders	$	333,218		$	311,345		$	315,700

See accompanying notes to the consolidated financial statements

SCHEDULE II

ENDURANCE SPECIALTY HOLDINGS LTD.

CONDENSED FINANCIAL STATEMENT INFORMATION OF THE REGISTRANT, Cont’d.

STATEMENTS OF CASH FLOWS-PARENT ONLY

YEARS ENDED DECEMBER 31, 2016, 2015, AND 2014

(In thousands of United States dollars)

	2016			2015			2014
Cash flows used in operating activities:
Net income	$	381,147		$	355,111		$	348,450
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	8,380			3,738			6,785
Net realized and unrealized gains	(206		)	(332		)	(1,957		)
Stock-based compensation expense	9,339			28,604			15,093
Equity in net earnings of subsidiary	(462,656		)	(480,558		)	(438,337		)
Other assets	327			(893		)	(177		)
Other liabilities	(3,524		)	(17,377		)	1,626
Net cash flows used in operating activities	(67,193		)	(111,707		)	(68,517		)
Cash flows provided by investing activities:
Proceeds from sales and maturities of available for sale investments	—			—			26,094
Purchases of available for sale investments	—			—			(24,137		)
Contributions of capital made to subsidiaries	(4,655		)	—			—
Dividends received from subsidiary	809,840			341,524			145,203
Net amounts paid to subsidiaries	(379,632		)	35,383			14,819
Purchases of fixed assets	—			(11,626		)	—
Proceeds from disposals of fixed assets	—			6,606			19
Net cash received for subsidiary acquisition	—			19,875			—
Net cash flows provided by investing activities	425,553			391,762			161,998
Cash flows used in financing activities:
Issuance of common shares	10,076			24,823			2,305
Issuance of Series C, non-cumulative preferred shares	—			222,963			—
Redemption of Series A and B, non-cumulative preferred shares	(230,000		)	(200,000		)	—
Offering and registration costs paid	(319		)	(617		)	—
Bridge facility costs paid	—			—			(4,750		)
Settlement of restricted shares	(11,732		)	(14,535		)	(4,039		)
Repayments of debt	—			(198,500		)	—
Dividends paid on preferred shares	(23,799		)	(32,750		)	(32,750		)
Dividends paid on common shares	(102,417		)	(78,473		)	(60,524		)
Net cash flows used in financing activities	(358,191		)	(277,089		)	(99,758		)
Net increase (decrease) in cash and cash equivalents	169			2,966			(6,277		)
Cash and cash equivalents, beginning of year	3,206			240			6,517
Cash and cash equivalents, end of year	$	3,375		$	3,206		$	240

See accompanying notes to the consolidated financial statements

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Schedule III Supplementary Insurance Information

12 Months Ended

Dec. 31, 2016

Supplementary Insurance Information [Abstract]

Schedule III Supplementary Insurance Information

SCHEDULE III

ENDURANCE SPECIALTY HOLDINGS LTD. AND SUBSIDIARIES

SUPPLEMENTARY INSURANCE INFORMATION

YEARS ENDED DECEMBER 31, 2016, 2015, AND 2014

(In thousands of United States dollars)

Year Ended December 31, 2016

	Insurance		Reinsurance		Total
Deferred Acquisition Costs	$	72,502	$	204,137	$	276,639
Reserve for Losses and Loss Expenses	2,798,989		2,106,149		4,905,138
Unearned Premiums	1,124,359		870,317		1,994,676
Net Premiums Earned	1,009,375		1,354,285		2,363,660
Net Investment Income (1)	—		—		176,590
Net Losses and Loss Expenses	684,178		636,874		1,321,052
Amortization of Deferred Acquisition Costs	149,763		310,720		460,483
Other Operating Expenses (2)	140,742		107,404		248,146
Net Premiums Written	1,056,254		1,313,681		2,369,935

(1) Because the Company does not manage its assets by segment, investment income is not allocated to the individual segments.

(2) General and administrative expenses incurred by segments are allocated directly. Remaining general and administrative expenses not incurred by the segments are classified as corporate expenses and are not allocated to the individual business segments.

Year Ended December 31, 2015

	Insurance		Reinsurance		Total
Deferred Acquisition Costs	$	58,216	$	197,285	$	255,501
Reserve for Losses and Loss Expenses	2,493,894		2,016,521		4,510,415
Unearned Premiums	902,152		886,996		1,789,148
Net Premiums Earned	824,552		1,153,901		1,978,453
Net Investment Income (1)	—		—		113,826
Net Losses and Loss Expenses	500,867		416,241		917,108
Amortization of Deferred Acquisition Costs	80,252		267,633		347,885
Other Operating Expenses (2)	140,012		119,779		259,791
Net Premiums Written	880,373		1,070,097		1,950,470

(1) Because the Company does not manage its assets by segment, investment income is not allocated to the individual segments.

(2) General and administrative expenses incurred by segments are allocated directly. Remaining general and administrative expenses not incurred by the segments are classified as corporate expenses and are not allocated to the individual business segments.

SCHEDULE III

ENDURANCE SPECIALTY HOLDINGS LTD. AND SUBSIDIARIES

SUPPLEMENTARY INSURANCE INFORMATION, Cont’d

YEARS ENDED DECEMBER 31, 2016, 2015, AND 2014

(In thousands of United States dollars)

Year Ended December 31, 2014

	Insurance		Reinsurance		Total
Deferred Acquisition Costs	$	34,581	$	172,787	$	207,368
Reserve for Losses and Loss Expenses	2,123,772		1,723,087		3,846,859
Unearned Premiums	642,779		611,740		1,254,519
Net Premiums Earned	833,912		1,030,066		1,863,978
Net Investment Income (1)	—		—		131,543
Net Losses and Loss Expenses	594,561		375,601		970,162
Amortization of Deferred Acquisition Costs	65,368		254,145		319,513
Other Operating Expenses (2)	148,475		98,912		247,387
Net Premiums Written	860,406		1,073,800		1,934,206

(1) Because the Company does not manage its assets by segment, investment income is not allocated to the individual segments.

(2) General and administrative expenses incurred by segments are allocated directly. Remaining general and administrative expenses not incurred by the segments are classified as corporate expenses and are not allocated to the individual business segments.

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Schedule IV Reinsurance

12 Months Ended

Dec. 31, 2016

Supplemental Schedule of Reinsurance Premiums for Insurance Companies [Abstract]

Schedule IV Reinsurance

SCHEDULE IV

ENDURANCE SPECIALTY HOLDINGS LTD. AND SUBSIDIARIES

REINSURANCE

FOR THE YEARS ENDED DECEMBER 31, 2016, 2015 AND 2014

(In thousands of United States dollars)

Premiums Written	Gross Amount		Ceded to Other Companies		Assumed from Other Companies		Net Amount		Percentage of Amount Assumed to Net
Year ended December 31, 2016
Property and liability insurance	$	2,570,494	$	1,832,235	$	1,631,676	$	2,369,935	69	%
Year ended December 31, 2015
Property and liability insurance	$	2,085,901	$	1,370,391	$	1,234,960	$	1,950,470	63	%
Year ended December 31, 2014
Property and liability insurance	$	1,716,128	$	959,870	$	1,177,948	$	1,934,206	61	%

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Schedule V - Valuation and Qualifying Accounts (Notes)

12 Months Ended

Dec. 31, 2016

Valuation and Qualifying Accounts [Abstract]

Schedule V - Valuation and Qualifying Accounts

SCHEDULE V

ENDURANCE SPECIALTY HOLDINGS LTD. AND SUBSIDIARIES

VALUATION AND QUALIFYING ACCOUNTS

FOR THE YEARS ENDED DECEMBER 31, 2016, 2015 AND 2014

(In thousands of United States dollars)

	Balance at Beginning of Year	Charged to costs and expenses	Charged to other accounts	Deductions (1)	Balance at End of Year
December 31, 2016
Valuation allowance for deferred tax assets	131,138	—	—	26,330	104,808
December 31, 2015
Valuation allowance for deferred tax assets	121,409	—	13,300	3,571	131,138
December 31, 2014
Valuation allowance for deferred tax assets	122,680	—	—	1,271	121,409

(1) Credited to the related asset account

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Schedule VI Underwriters

12 Months Ended

Dec. 31, 2016

Supplemental Information for Property, Casualty Insurance Underwriters [Abstract]

Schedule of Supplemental Information for Property, Casualty Insurance Underwriters [Text Block]

SCHEDULE VI

ENDURANCE SPECIALTY HOLDINGS LTD. AND SUBSIDIARIES

SUPPLEMENTARY INFORMATION FOR PROPERTY AND CASUALTY

INSURANCE UNDERWRITERS

FOR THE YEARS ENDED DECEMBER 31, 2016, 2015, AND 2014

(In thousands of United States dollars)

Year Ended December 31, 2016

	Insurance			Reinsurance			Total
Deferred Acquisition Costs	$	72,502		$	204,137		$	276,639
Reserve for Losses and Loss Expenses	2,798,989			2,106,149			4,905,138
Discount if any, Reserve for Losses and Loss Expenses	—			—			—
Unearned Premiums	1,124,359			870,317			1,994,676
Net Premiums Earned	1,009,375			1,354,285			2,363,660
Net Investment Income (1)	—			—			176,590
Net Losses and Loss Expenses
Current Year	761,315			781,287			1,542,602
Prior Year	(77,137		)	(144,413		)	(221,550		)
Amortization of Deferred Acquisition Costs	149,763			310,720			460,483
Paid Losses and Loss Expenses	592,018			593,872			1,185,890
Net Premiums Written	1,056,254			1,313,681			2,369,935

(1) Because the Company does not manage its assets by segment, investment income is not allocated to the individual segments.

Year Ended December 31, 2015

	Insurance			Reinsurance			Total
Deferred Acquisition Costs	$	58,216		$	197,285		$	255,501
Reserve for Losses and Loss Expenses	2,493,894			2,016,521			4,510,415
Discount if any, Reserve for Losses and Loss Expenses	—			—			—
Unearned Premiums	902,152			886,996			1,789,148
Net Premiums Earned	824,552			1,153,901			1,978,453
Net Investment Income (1)	—			—			113,826
Net Losses and Loss Expenses
Current Year	582,868			577,704			1,160,572
Prior Year	(82,001		)	(161,463		)	(243,464		)
Amortization of Deferred Acquisition Costs	80,252			267,633			347,885
Paid Losses and Loss Expenses	626,606			507,031			1,133,637
Net Premiums Written	880,373			1,070,097			1,950,470

(1) Because the Company does not manage its assets by segment, investment income is not allocated to the individual segments.

SCHEDULE VI

ENDURANCE SPECIALTY HOLDINGS LTD. AND SUBSIDIARIES

SUPPLEMENTARY INFORMATION FOR PROPERTY AND CASUALTY

INSURANCE UNDERWRITERS, Cont’d.

FOR THE YEARS ENDED DECEMBER 31, 2016, 2015, AND 2014

(In thousands of United States dollars)

Year Ended December 31, 2014

	Insurance			Reinsurance			Total
Deferred Acquisition Costs	$	34,581		$	172,787		$	207,368
Reserve for Losses and Loss Expenses	2,123,772			1,723,087			3,846,859
Discount if any, Reserve for Losses and Loss Expenses	—			—			—
Unearned Premiums	642,779			611,740			1,254,519
Net Premiums Earned	833,912			1,030,066			1,863,978
Net Investment Income(1)	—			—			131,543
Net Losses and Loss Expenses
Current Year	675,131			528,846			1,203,977
Prior Year	(80,570		)	(153,245		)	(233,815		)
Amortization of Deferred Acquisition Costs	65,368			254,145			319,513
Paid Losses and Loss Expenses	700,576			457,636			1,158,212
Net Premiums Written	860,406			1,073,800			1,934,206

(1) Because the Company does not manage its assets by segment, investment income is not allocated to the individual segments.

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Summary Of Significant Accounting Policies (Policy)

12 Months Ended

Dec. 31, 2016

Accounting Policies [Abstract]

Premiums And Related Expenses

(a) Premiums and related expenses

The Company's insurance premiums are earned pro rata over the term of the applicable risk period specified in the insurance policy. The Company's insurance policies cover losses occurring or claims made during the term of the policy. Generally, the Company receives a fixed premium which is identified in the policy and is recorded on the inception date of the contract or when premiums are determinable and earned evenly over the policy term. This premium will only adjust if the underlying insured values adjust. Accordingly, the Company monitors the underlying insured values and records additional or return premiums in the period in which amounts are reasonably determinable.

The Company's reinsurance premiums are earned in proportion to the amount of reinsurance protection provided over the applicable risk period established in the reinsurance contract. Reinsurance contracts written on a losses occurring basis cover losses which occur during the term of the reinsurance contract, typically 12 months. Accordingly, the Company earns the premium on a losses occurring reinsurance contract evenly over the reinsurance contract term. Reinsurance contracts written on a policies attaching basis cover losses from the underlying insurance policies incepting during the terms of the reinsurance contracts. Losses under a policies attaching reinsurance contract may occur after the end date of the reinsurance contract, so long as they are losses from policies that began during the reinsurance contract period. The Company typically earns the premiums for policies attaching reinsurance contracts over a 24-month period in proportion to the amount of reinsurance protection provided to reflect the extension of the risk period past the term of the contract and the varying levels of reinsurance protection provided during the reinsurance contract period.

In addition to the applicable risk period, the Company's estimate of its reinsurance premiums written is based on the type of reinsurance contracts underwritten. For excess of loss reinsurance contracts, the deposit premium, as defined in the contract, is generally considered to be the best estimate of the reinsurance contract's written premium at inception. The Company earns reinstatement premiums upon the occurrence of a loss under the reinsurance contract. Reinstatement premiums are calculated in accordance with the contract terms based upon the ultimate loss estimate associated with each contract. For proportional reinsurance contracts, the Company estimates premium, commissions and related expenses based on broker and ceding company estimates and also utilizes judgment in establishing proportional reinsurance contract estimates.

Premiums on the Company's excess of loss and proportional reinsurance contracts are estimated at the time the business is underwritten. Accordingly, this is the amount the Company records as written premium in the period the reinsurance contract is underwritten. As actual premiums are reported by the ceding companies, management evaluates the appropriateness of the original premium estimates and any adjustments to these estimates are recorded in the period in which they become known.

Premiums receivable are recorded at amounts due less any allowance for estimated uncollectible premiums receivable. At December 31, 2016, the Company had an allowance for estimated uncollectible premiums receivable of $6.2 million (2015 - $7.4 million).

Acquisition expenses are costs that vary with and are directly related to the successful production of new and renewal business, and consist principally of commissions and brokerage expenses. Acquisition and general and administrative expenses are shown net of commissions, other fees and expense allowances associated with and earned on ceded business. These costs are deferred and amortized over the periods in which the related premiums are earned. Deferred acquisition costs are limited to their estimated realizable value based on the related unearned premiums. Anticipated net investment income is considered in determining the recoverability of deferred acquisition costs.

Reserve For Losses And Loss Expenses

(b) Reserve for losses and loss expenses

The Company’s reserve for losses and loss expenses includes case reserves and reserves for losses incurred but not reported (referred to as "IBNR reserves"). Case reserves are established for losses that have been reported, but not yet paid. IBNR reserves represent a provision for claims that have been incurred but not yet reported to the Company, as well as future loss development on losses already reported, in excess of the case reserves. Case reserves and IBNR reserves are established by management based on reports from reinsurance intermediaries, ceding companies and insureds, and consultations with independent legal counsel. In addition, reserves for IBNR losses and loss expenses are established by management based on reported losses and loss expenses, and actuarially determined estimates of ultimate losses and loss expenses.

The Company uses a variety of actuarial methods to estimate the ultimate losses and loss expenses incurred by the Company. One actuarial method used by the Company to estimate reserves for losses and loss expenses is the expected loss ratio approach, which is based on expected results independent of current loss reporting activity. This approach is typically used for immature loss periods (i.e., the current accident year). Another actuarial method used by the Company to estimate reserves for losses and loss expenses is known as the Bornhuetter-Ferguson method. The Bornhuetter-Ferguson method uses an initial loss estimate (expected loss technique) for each accident year by business line and type of contract. Under this method, IBNR is set equal to the initial loss estimate multiplied by the expected percent of loss yet to be reported at each valuation date. In a given quarter, if reported losses are less than expected, then the difference would result in a decrease in estimated ultimate losses. If losses are greater than expected, then the difference would result in an increase in estimated ultimate losses. A third actuarial method used by the Company to estimate reserves for losses and loss expenses is known as the loss development method. The loss development method extrapolates the current value of reported losses to ultimate expected losses by using selected reporting patterns of losses over time. The selected reporting patterns are based on historical information (organized into loss development triangles) and are adjusted to reflect the changing characteristics of the book of business written by the Company. Management uses these multiple actuarial methods, supplemented with professional judgment, to establish the best estimate of reserves for losses and loss expenses.

The Company's loss and loss expense reserves are reviewed regularly, and adjustments, if any, are reflected in earnings in the period in which they become known. The establishment of new loss and loss expense reserves or the adjustment of previously recorded loss and loss expense reserves could result in significant positive or negative changes to the Company's financial condition for any particular period. While management believes the Company's estimate of loss and loss expense reserves is reasonable, the ultimate loss experience may not be reliably predicted, and it is possible losses and loss expenses may be materially different than the total reserve for losses and loss expenses recorded by the Company.

Reserves for losses and loss expenses are based in part upon the estimation of losses resulting from catastrophic events. Estimation of these losses and loss expenses are based upon the Company's historical claims experience and is inherently difficult because of the Company's short operating history and the possible severity of catastrophe claims. Therefore, the Company uses both proprietary and commercially available models, as well as historical reinsurance industry catastrophe claims experience in addition to its own historical data for purposes of evaluating trends and providing an estimate of ultimate claims costs.

Reinsurance

(c) Reinsurance

Reinsurance recoverable on paid and unpaid losses represent estimates of losses and loss expenses that will be recovered from reinsurers. Amounts recoverable from reinsurers are estimated in a manner consistent with the provisions of the reinsurance agreements and consistent with the establishment of the Company's reserve for losses and loss expenses. Ceding commissions earned on ceded business are classified as an offset to acquisition and general and administrative expenses.

The Company purchases reinsurance to reduce its exposure to risk of loss in certain insurance and reinsurance lines of business. Reinsurance recoverables are recorded as assets if the reinsurer is deemed able to meet its obligations. Ceded reinsurance contracts do not relieve the Company from its obligations to policyholders. The Company remains primarily liable to its policyholders for the portion reinsured to the extent that any reinsurer does not meet the obligations assumed under the reinsurance agreements.

Investments

(d) Investments

The Company currently classifies its fixed maturity investments, short-term investments and equity securities as trading or available for sale. Trading securities are carried at estimated fair value, with related net realized and unrealized gains or losses included in earnings. The Company acquired a portfolio of investments classified as trading from Montpelier. 

Available for sale securities are carried at estimated fair value, with related net unrealized gains or losses excluded from earnings and included in shareholders' equity as a component of accumulated other comprehensive loss. Investment transactions are recorded on a trade date basis. The Company determines the fair value of its trading and available for sale investments in accordance with current accounting guidance, which defines fair value and establishes a fair value hierarchy based on inputs to the various valuation techniques used for each fair value measurement. The use of valuation techniques for any given investment requires a significant amount of judgment and consideration of factors specific to the underlying investment. Fair value measurements determined by the Company seek to maximize observable inputs and minimize the use of unobservable inputs.

2.     Significant accounting policies, cont'd.

(d) Investments, cont'd.

Current accounting guidance establishes three levels as follows:

Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2: Quoted prices for similar assets in markets that are active, quoted prices for identical or similar assets in markets that are not active or inputs that are observable either directly or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities other than quoted prices in Level 1; quoted prices in markets that are not active; or other inputs that are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3: Unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets or liabilities. Unobservable inputs reflect the Company's own views about the assumptions that market participants would use in pricing the asset or liability. Level 3 assets and liabilities include financial instruments whose values are determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant judgment or estimation.

The Company determines the estimated fair value of each individual security utilizing the highest level inputs available.

If the Company has the intent to sell a fixed maturity or short-term security classified as available for sale in an unrealized loss position or it is more likely than not that the Company will be required to sell the available for sale security, the Company deems the security to be other-than-temporarily impaired and writes down the carrying value of the security to fair value, thereby establishing a new cost basis. The amount of the write-down is recognized in earnings as an other-than-temporary impairment ("OTTI") loss.

For fixed maturity and short-term investments classified as available for sale in an unrealized loss position for which a decision to sell has not been made and it is not more likely than not that the Company will be required to sell the security, the Company performs additional reviews to determine whether the investment will recover its amortized cost. If the amortized cost of the Company's fixed maturity and short-term investments classified as available for sale is, based upon the judgment of management, unlikely to be recovered, the Company writes down the investment by the amount representing the credit related portion of the decline in value, thereby establishing a new cost basis. The amount of the write-down is recognized in earnings as an OTTI loss. The new cost basis is not changed for subsequent recoveries in fair value.

To the extent the Company determines that the amortized cost of the Company's fixed maturity and short-term investments classified as available for sale is likely to be recovered and the decline in value is related to non-credit factors (such as interest rates, market conditions, etc.) and not due to credit related factors, that remaining non-credit portion of the unrealized loss is recorded as a part of accumulated other comprehensive loss in the shareholders' equity section of the Company's Consolidated Balance Sheets.

For equity securities classified as available for sale, the Company considers its ability and intent to hold the equity security in an unrealized loss position for a reasonable period of time to allow for a full recovery. When the Company determines that the decline in value of an equity security is other-than-temporary, the Company reduces the cost of the equity security to its fair value and recognizes the loss in the Consolidated Statements of Income and Comprehensive Income. The new cost basis is not changed for subsequent recoveries in fair value.

Other investments within the Company's investment portfolio are comprised of hedge funds, private investment funds and other investment funds that generally invest in senior secured bank debt, high yield credit securities, distressed debt, macro strategies, multi-strategy, equity long/short strategies, distressed real estate, and energy sector private equity ("alternative funds"). Other investments are accounted for using the equity method of accounting whereby the initial investment is recorded at cost. The carrying values of these investments are increased or decreased to reflect the Company's share of income or loss, which is included in net investment income, and are decreased for dividends. Due to the timing of the delivery of the final valuations reported by the managers of certain of our alternative funds, our investments in those funds are estimated based on the most recently available information including period end valuation statements, period end estimates, or, in some cases, prior month or quarter valuation statements.

Cash Equivalents And Short-term Investments

(e) Cash equivalents and short-term investments

Cash equivalents include highly liquid short-term deposits and securities with maturities of ninety days or less at the time of purchase. Cash equivalents are valued at amortized cost, which approximates fair value due to the short-term, liquid nature of these securities. Deposits and securities with maturities greater than ninety days and less than one year are classified as short-term investments.

Intangible Assets

(f)    Intangible assets

Identifiable intangible assets are amortized in accordance with their useful lives. Goodwill and intangible assets with indefinite useful lives are not amortized but are tested for impairment annually at the beginning of the fourth quarter, or more often if impairment indicators arise. In making an assessment of the value of its goodwill and intangible assets, the Company uses both market based and non-market based valuations.

Assumptions underlying these valuations include forecasts of discounted future cash flows and future profits and comparable transactions observed in the market, in addition to an analysis of the Company’s stock price relative to both its book value and its net income.

Offering And Registration Costs

(g) Offering and registration costs

Offering and registration costs incurred in connection with equity offerings, including investment banking fees and legal fees, are deducted from the proceeds of the offerings.

Foreign Exchange

(h) Foreign exchange

Assets and liabilities of foreign operations whose functional currency is not the United States dollar are translated at exchange rates in effect at the balance sheet date. Revenues and expenses of such foreign operations are translated at weighted average exchange rates during the year. The effect of the translation adjustments for foreign operations is included in accumulated other comprehensive loss, net of applicable deferred income taxes. Other monetary assets and liabilities denominated in foreign currencies are revalued at the exchange rates in effect at the balance sheet date with the resulting net foreign exchange gains and losses included in earnings. Revenues and expenses denominated in foreign currencies are translated at the prevailing exchange rate on the transaction date.

Derivatives

Derivatives

Current accounting guidance requires the recognition of all derivative financial instruments including embedded derivative instruments, as either assets or liabilities in the Consolidated Balance Sheets at fair value.

The Company may use various derivative instruments such as foreign exchange forward, future and option contracts; industry loss warranty swaps; interest rate futures, swaps, swaptions, and options; credit default swaps; LIBOR swaps; commodity futures and options; weather swaps and options; loss development covers; and to-be-announced mortgage-backed securities. These derivative instruments are used to manage exposure to interest rate and currency risk, to enhance the efficiency of the Company's investment portfolio, to economically hedge certain risks, and as part of its weather risk management business. Except for a cash flow hedge entered into in 2004 as disclosed in Note 9, Derivatives, these derivative instruments do not qualify, and are not designated, as hedges. Derivatives are recorded at fair value with changes in fair value and any gains or losses are recognized in net realized and unrealized (losses) gains, net foreign exchange (gains) losses, or other underwriting loss in the Consolidated Statements of Income and Comprehensive Income.

Where the Company has entered into master netting agreements with counterparties, or the Company has the legal and contractual right to offset positions, the derivative positions may be netted by the counterparty.

Income Taxes

(j) Income taxes

The Company accounts for income taxes for its subsidiaries operating in taxable jurisdictions. Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. A valuation allowance is provided when it is more likely than not that some portion of the deferred tax assets will not be realized. The accounting guidance allows for the recognition of tax benefits of uncertain tax positions only where the position is more likely than not to be sustained assuming examination by tax authorities. A liability is established for any tax benefit claimed in a tax return in excess of this threshold. Income tax related interest and penalties are included as income tax expense.

Stock Compensation And Other Stock Plans

(k) Stock compensation and other stock plans

The Company has a share-based employee and non-employee director equity incentive plan ("2007 Equity Incentive Plan") and other share plans, which are described more fully in Note 16, Stock-based employee compensation and other stock plans. The fair value of the compensation cost incurred under these plans is measured at the grant date and is expensed over the period for which the employee is required to provide services in exchange for the award. Forfeiture benefits are estimated at the time of grant and incorporated in the determination of share-based compensation costs. Awards under the 2007 Equity Incentive Plan generally vest over four years for employees and one year for non-employee directors.

The Company uses the Black-Scholes-Merton formula to estimate the value of stock options granted.

The fair value of the performance-based restricted shares is measured at the grant date using a Monte Carlo simulation based on pre-established targets relating to certain performance based measures achieved by the Company, with the associated expense recognized over the applicable performance and vesting period.

The fair value of the restricted shares granted is equal to the fair market value of the Company's ordinary shares on the grant date. Compensation equal to the fair market value of the restricted shares at the measurement date is amortized and charged to income over the vesting period.

Earnings Per Share

(l) Earnings per share

The two-class method utilized by the Company is an earnings allocation formula that determines earnings per share for the holders of Endurance Holdings' ordinary shares (also referred to as "common shares") and participating common shares, which includes unvested restricted shares and restricted share units that receive cash dividends, according to dividends declared (or accumulated) and participation rights in undistributed earnings. Net income available to common and participating common shareholders is reduced by the amount of dividends declared in the current period and by the contractual amount of dividends that must be paid for the current period related to the Company's common and participating common shares. Any remaining undistributed earnings are allocated to the common and participating common shareholders to the extent that each security may share in earnings as if all of the earnings for the period had been distributed. In periods of loss, no losses are allocated to participating common shareholders. Instead, all such losses are allocated solely to the common shareholders.

Basic earnings per common share are calculated by dividing net income available to common shareholders by the weighted average number of common shares outstanding. The weighted average number of common shares excludes any dilutive effect of outstanding options and convertible securities such as unvested restricted shares and restricted share units.

Diluted earnings per common share are based on the weighted average number of common shares and assumes the exercise of all dilutive stock options and the vesting or conversion of all convertible securities such as unvested restricted shares using the two-class method described above.

Use Of Estimates

(m) Use of estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported and disclosed amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Variable Interest Entity

Entities that do not have sufficient equity at risk to allow the entity to finance its activities without additional financial support or in which the equity investors, as a group, do not have the characteristic of a controlling financial interest are referred to as variable interest entities ("VIE"). A VIE is consolidated by the variable interest holder that is determined to have the controlling financial interest (primary beneficiary) as a result of having both the power to direct the activities of a VIE that most significantly impact the VIE's economic performance and the obligation to absorb losses or right to receive benefits from the VIE that could potentially be significant to the VIE. The Company determines whether it is the primary beneficiary of an entity subject to consolidation based on a qualitative assessment of the VIE's capital structure, contractual terms, nature of the VIE's operations and purpose and the Company's relative exposure to the related risks of the VIE on the date it becomes initially involved in the VIE. The Company reassesses its VIE determination with respect to an entity on an ongoing basis.

Other Investments

The Company is involved in the normal course of business with VIEs primarily as a passive investor in residential and commercial mortgage-backed securities and through its interests in various other investments that are structured as limited partnerships considered to be third party VIEs. The Company determines whether it is the primary beneficiary of an entity subject to consolidation based on a qualitative assessment of the VIE's capital structure, contractual terms, nature of the VIE's operations and purpose, and the Company's relative exposure to the related risks of the VIE on the date it becomes initially involved in the VIE. The Company determined that it was not the primary beneficiary for any of these investments as of December 31, 2016 and 2015. The Company believes its exposure to loss with respect to these investments is generally limited to the investment carrying amounts reported in the Company's Consolidated Balance Sheets and any unfunded investment commitments.

4.     Investments, cont'd.

Collateralized Reinsurance Entities

As of December 31, 2016, Endurance Holdings and Endurance Bermuda together owned 33.3% of BCRH. BCRH is considered a VIE under U.S. GAAP and the Company has determined that it is BCRH's primary beneficiary. As a result, the Company fully consolidates the assets, liabilities and operations of BCRH and its subsidiaries within its Consolidated Financial Statements. The interests in BCRH and its subsidiaries that the Company fully consolidates that are attributable to third-party investors are reported within the Company's Consolidated Financial Statements as non-controlling interests. BCRH's shareholder rights do not include redemption features within the control of the third party shareholders. The Company reassesses its VIE determination with respect to BCRH on an ongoing basis.

As of December 31, 2016, Endurance Bermuda owned 25.2% of BCGR. BCGR is considered a "voting interest entity" under U.S. GAAP and, because the Company owns less than 50% of its outstanding ordinary shares, the Company does not consolidate BCGR's assets, liabilities or operations within its Consolidated Financial Statements. However, the BCGR Cell and Blue Water Re, the Company's wholly-owned Bermuda-based special purpose insurance vehicle, are considered VIEs under U.S. GAAP and the Company has determined that it is the primary beneficiary of these entities. Therefore, as funds held in BCGR are deployed into the BCGR Cell, and ultimately into Blue Water Re, they are included in the Company's consolidated financial statements. Conversely, as funds previously deployed by BCGR and the BCGR Cell into Blue Water Re are returned to BCGR, they are no longer included in the Company's consolidated financial statements. The interests in the BCGR Cell and Blue Water Re that the Company fully consolidate that are attributable to third-party investors are reported within the Company's consolidated financial statements as non-controlling interests. BCGR's shareholder rights do not include redemption features within the control of the third party shareholders. The Company reassesses its VIE determinations with respect to the BCGR Cell and Blue Water Re on an ongoing basis.

Non-controlling interests

(o) Non-controlling interests

The Company accounts for non-controlling interests in the shareholders' equity section of the Company's Consolidated Balance Sheets in accordance with current accounting guidance regarding consolidation. Net income attributable to non-controlling interest is presented separately in the Company's Consolidated Statements of Income and Comprehensive Income.

Reclassifications

(p) Reclassifications

Certain comparative information has been reclassified to conform to current year presentation.

Recent Accounting Pronouncements

(q)     Recent accounting pronouncements

In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, "Revenue from Contracts with Customers" ("ASU 2014-09"). ASU 2014-09 provides comprehensive guidance on the recognition of revenue from customers arising from the transfer of goods and services. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for these goods or services. ASU 2014-09 also provides guidance on accounting for certain contract costs and will also require new disclosures. ASU 2014-09 was to be effective for public business entities in annual and interim periods beginning after December 15, 2016, however, in July 2015, the FASB decided to defer by one year the effective dates of ASU 2014-09, and as a result, ASU 2014-09 will be effective for public business entities in annual and interim period beginning after December 15, 2017. Early adoption is permitted. Based on initial review, the Company has determined that this standard specifically excludes revenue from the following sources: insurance contracts, Topic 944, Financial Services-Insurance and investment income; Topic 320, Investments-Debt and Equity Securities; Topic 323, Investments-Equity Methods and Joint Ventures; Topic 325, Investment-Others; and Topic 815, Derivatives and Hedging. As substantially all of the Company's revenues are subject to the topics above that are excluded from the standard, the Company has determined that this standard will not have a material impact on the Company's Consolidated Financial Statements.

In February 2015, the FASB issued ASU 2015-02, "Amendments to the Consolidation Analysis" ("ASU 2015-02"). Under ASU 2015-02, all legal entities are required to evaluate whether they should consolidate certain legal entities. ASU 2015-02 set forth amendments: (1) modifying the evaluation of whether limited partnerships and similar legal entities are VIEs or voting interest entities; (2) eliminating the presumption that a general partner should consolidate a limited partnership; (3) affecting the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships; and (4) providing a scope exception from consolidation guidance for certain reporting entities. ASU 2015-02 was effective for public business entities for annual and interim periods beginning after December 15, 2015. Early adoption was permitted. ASU 2015-02 may be applied retrospectively or by using a modified retrospective approach by recording a cumulative-effect adjustment to equity as of the beginning of the year of adoption. The Company adopted this standard on January 1, 2016 and it did not have a material impact on the Company's Consolidated Financial Statements.

2. Significant accounting policies, cont'd.

(q)     Recent accounting pronouncements, cont'd.

In May 2015, the FASB issued ASU 2015-09, "Disclosures about Short-Duration Contracts" ("ASU 2015-09"). The objective of ASU 2015-09 is to make targeted improvements to disclosure requirements for insurance companies that issue short-duration contracts. The guidance requires additional disclosures of claims development tables, frequency of reported claims, and history of claims duration. This information is required to be disaggregated so that useful information is not obscured by either the inclusion of a large amount of insignificant detail, or the aggregation of items that have significantly different characteristics. ASU 2015-09 was effective for public business entities in annual periods beginning after December 15, 2015, and interim periods within annual periods beginning after December 15, 2016. Early adoption was permitted. ASU 2015-09 should be applied retrospectively. The Company adopted this standard in the fourth quarter of 2016 and has included the appropriate annual disclosures within Note 6, Reserve for losses and loss expenses. The adoption of this standard did not have a material impact on the Company's Consolidated Financial Statements.

In January 2016, the FASB issued ASU No. 2016-01, "Recognition and Measurement of Financial Assets and Financial Liabilities" ("ASU 2016-01"). ASU 2016-01 requires equity investments (except those accounted for under the equity method of accounting or those that result in the consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income, simplifies the impairment assessment of equity investments without readily determinable values by requiring a qualitative assessment to identify impairment, eliminates the requirement to disclose the methods and significant assumptions used to estimate the fair value for financial instruments measured at amortized cost, requires the use of the exit price notion when measuring the fair value of financial instruments for disclosure purposes, requires separate presentation in other comprehensive income of the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the organization has elected to measure the liabilities in accordance with the fair value option, requires the separate presentation of financial assets and financial liabilities by measurement category and for form of years, beginning after December 15, 2015. Early adoption was permitted. The Company adopted ASU 2015-02 effective January 1, 2016 and it did not have material impact on the Company's consolidated statements of operations and financial position.

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Investments (Policy)

12 Months Ended

Dec. 31, 2016

Investments [Abstract]

Other Investments

In addition to the Company's fixed maturity, short-term and equity investments, the Company invests in alternative funds. The Company's alternative funds are recorded on the Company's balance sheet as "other investments".

Gain Loss On Investments

Realized and unrealized gains and losses are recognized in earnings using the first in, first out method.

Variable Interest Entity

Entities that do not have sufficient equity at risk to allow the entity to finance its activities without additional financial support or in which the equity investors, as a group, do not have the characteristic of a controlling financial interest are referred to as variable interest entities ("VIE"). A VIE is consolidated by the variable interest holder that is determined to have the controlling financial interest (primary beneficiary) as a result of having both the power to direct the activities of a VIE that most significantly impact the VIE's economic performance and the obligation to absorb losses or right to receive benefits from the VIE that could potentially be significant to the VIE. The Company determines whether it is the primary beneficiary of an entity subject to consolidation based on a qualitative assessment of the VIE's capital structure, contractual terms, nature of the VIE's operations and purpose and the Company's relative exposure to the related risks of the VIE on the date it becomes initially involved in the VIE. The Company reassesses its VIE determination with respect to an entity on an ongoing basis.

Other Investments

The Company is involved in the normal course of business with VIEs primarily as a passive investor in residential and commercial mortgage-backed securities and through its interests in various other investments that are structured as limited partnerships considered to be third party VIEs. The Company determines whether it is the primary beneficiary of an entity subject to consolidation based on a qualitative assessment of the VIE's capital structure, contractual terms, nature of the VIE's operations and purpose, and the Company's relative exposure to the related risks of the VIE on the date it becomes initially involved in the VIE. The Company determined that it was not the primary beneficiary for any of these investments as of December 31, 2016 and 2015. The Company believes its exposure to loss with respect to these investments is generally limited to the investment carrying amounts reported in the Company's Consolidated Balance Sheets and any unfunded investment commitments.

4.     Investments, cont'd.

Collateralized Reinsurance Entities

As of December 31, 2016, Endurance Holdings and Endurance Bermuda together owned 33.3% of BCRH. BCRH is considered a VIE under U.S. GAAP and the Company has determined that it is BCRH's primary beneficiary. As a result, the Company fully consolidates the assets, liabilities and operations of BCRH and its subsidiaries within its Consolidated Financial Statements. The interests in BCRH and its subsidiaries that the Company fully consolidates that are attributable to third-party investors are reported within the Company's Consolidated Financial Statements as non-controlling interests. BCRH's shareholder rights do not include redemption features within the control of the third party shareholders. The Company reassesses its VIE determination with respect to BCRH on an ongoing basis.

As of December 31, 2016, Endurance Bermuda owned 25.2% of BCGR. BCGR is considered a "voting interest entity" under U.S. GAAP and, because the Company owns less than 50% of its outstanding ordinary shares, the Company does not consolidate BCGR's assets, liabilities or operations within its Consolidated Financial Statements. However, the BCGR Cell and Blue Water Re, the Company's wholly-owned Bermuda-based special purpose insurance vehicle, are considered VIEs under U.S. GAAP and the Company has determined that it is the primary beneficiary of these entities. Therefore, as funds held in BCGR are deployed into the BCGR Cell, and ultimately into Blue Water Re, they are included in the Company's consolidated financial statements. Conversely, as funds previously deployed by BCGR and the BCGR Cell into Blue Water Re are returned to BCGR, they are no longer included in the Company's consolidated financial statements. The interests in the BCGR Cell and Blue Water Re that the Company fully consolidate that are attributable to third-party investors are reported within the Company's consolidated financial statements as non-controlling interests. BCGR's shareholder rights do not include redemption features within the control of the third party shareholders. The Company reassesses its VIE determinations with respect to the BCGR Cell and Blue Water Re on an ongoing basis.

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Fair Value Measurement (Policy)

12 Months Ended

Dec. 31, 2016

Fair Value Disclosures [Abstract]

Fair Value Of Financial Instruments

The Company determines the fair value of its fixed maturity investments, short-term investments, equity securities, debt, and other assets and liabilities in accordance with current accounting guidance, which defines fair value and establishes a fair value hierarchy based on inputs to the various valuation techniques used for each fair value measurement. The Company determines the estimated fair value of each individual security utilizing the highest level inputs available. Valuation inputs by security type may include the following:

• Government and agencies fixed maturity securities – These securities are generally priced by pricing services or index providers. The pricing services or index providers may use current market trades for securities with similar quality, maturity and coupon. If no such trades are available, the pricing service typically uses analytical models which may incorporate option adjusted spreads, daily interest rate data and market/sector news. The Company generally classifies the fair values of government and agencies securities in Level 2. Current issue U.S. government securities are generally valued based on Level 1 inputs, which use the market approach valuation technique.

• Government guaranteed corporate fixed maturity securities – These securities are generally priced by pricing services or index providers. The pricing service or index providers may use current market trades for securities with similar quality, maturity and coupon. If no such trades are available, the pricing service typically uses analytical spread models which may incorporate inputs from the U.S. treasury curve or LIBOR. The Company generally classifies the fair values of its government guaranteed corporate securities in Level 2.

• Corporate fixed maturity securities – These securities are generally priced by pricing services or index providers. The pricing services or index providers typically use discounted cash flow models that incorporate benchmark curves for treasury, swap and high issuance credits. Credit spreads are developed from current market observations for like or similar securities. The Company generally classifies the fair values of its corporate securities in Level 2.

• Equity securities – These securities are generally priced by pricing services or index providers. Depending on the type of underlying equity security or equity fund, the securities are priced by pricing services or index providers based on quoted market prices in active markets or through a discounted cash flow model that incorporates benchmark curves for treasury, swap and credit for like or similar securities. The Company generally classifies the fair values of its equity securities in Level 1 or 2.

• Structured securities including agency and non-agency, residential and commercial mortgage, asset-backed securities and collateralized loan and debt obligations – These securities are generally priced by broker/dealers. Broker/dealers may use current market trades for securities with similar qualities. If no such trades are available, inputs such as bid and offer, prepayment speeds, the U.S. treasury curve, swap curve and cash settlement may be used in a discounted cash flow model to determine the fair value of a security. The Company generally classifies the fair values of its structured securities in Level 2.

• Other assets and liabilities – A portion of other assets and liabilities are composed of a variety of derivative instruments used to enhance the efficiency of the investment portfolio and economically hedge certain risks. These instruments are generally priced by pricing services, broker/dealers and/or recent trading activity. The market value approach valuation technique is used to estimate the fair value for these derivatives based on significant observable market inputs. Certain derivative instruments are priced by pricing services based on quoted market prices in active markets. These derivative instruments are generally classified in Level 1. Other derivative instruments are priced using industry valuation models and are considered Level 2, as the inputs to the valuation model are based on observable market inputs. Also included in this line item are proprietary, non-exchange traded derivative-based risk management products primarily used to address weather and energy risks. The trading market for these weather derivatives are generally linked to energy and agriculture commodities, weather and other natural phenomena. In instances where market prices are not available, the Company uses industry or internally developed valuation techniques such as spread option, Black Scholes, quanto and simulation modeling to determine fair value and classifies these in Level 3. These models may reference prices for similar instruments.

• Debt – Outstanding debt consists of the Company's 7% Senior Notes due July 15, 2034 and 4.7% Senior Notes due October 15, 2022 (the "Senior Notes") and the Trust Preferred Securities. The fair values of these securities were obtained from a third party pricing service and pricing was based on the spread above the risk-free yield curve. These spreads are generally obtained from the new issue market, secondary trading and broker-dealer quotes. As these spreads and the yields for the risk-free yield curve are observable market inputs, the fair values of the Senior Notes and the Trust Preferred Securities are classified in Level 2.

5.     Fair value measurement, cont'd.

The carrying values of cash and cash equivalents, accrued investment income, other investments, net receivable on sales of investments, net payable on purchases of investments, the amount outstanding under the BCRH Credit Agreement and other financial instruments not described above approximated their fair values at December 31, 2016 and 2015.

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Reserve For Losses And Loss Expenses (Policy)

12 Months Ended

Dec. 31, 2016

Insurance Loss Reserves [Abstract]

Reserve For Losses And Loss Expenses

(b) Reserve for losses and loss expenses

The Company’s reserve for losses and loss expenses includes case reserves and reserves for losses incurred but not reported (referred to as "IBNR reserves"). Case reserves are established for losses that have been reported, but not yet paid. IBNR reserves represent a provision for claims that have been incurred but not yet reported to the Company, as well as future loss development on losses already reported, in excess of the case reserves. Case reserves and IBNR reserves are established by management based on reports from reinsurance intermediaries, ceding companies and insureds, and consultations with independent legal counsel. In addition, reserves for IBNR losses and loss expenses are established by management based on reported losses and loss expenses, and actuarially determined estimates of ultimate losses and loss expenses.

The Company uses a variety of actuarial methods to estimate the ultimate losses and loss expenses incurred by the Company. One actuarial method used by the Company to estimate reserves for losses and loss expenses is the expected loss ratio approach, which is based on expected results independent of current loss reporting activity. This approach is typically used for immature loss periods (i.e., the current accident year). Another actuarial method used by the Company to estimate reserves for losses and loss expenses is known as the Bornhuetter-Ferguson method. The Bornhuetter-Ferguson method uses an initial loss estimate (expected loss technique) for each accident year by business line and type of contract. Under this method, IBNR is set equal to the initial loss estimate multiplied by the expected percent of loss yet to be reported at each valuation date. In a given quarter, if reported losses are less than expected, then the difference would result in a decrease in estimated ultimate losses. If losses are greater than expected, then the difference would result in an increase in estimated ultimate losses. A third actuarial method used by the Company to estimate reserves for losses and loss expenses is known as the loss development method. The loss development method extrapolates the current value of reported losses to ultimate expected losses by using selected reporting patterns of losses over time. The selected reporting patterns are based on historical information (organized into loss development triangles) and are adjusted to reflect the changing characteristics of the book of business written by the Company. Management uses these multiple actuarial methods, supplemented with professional judgment, to establish the best estimate of reserves for losses and loss expenses.

The Company's loss and loss expense reserves are reviewed regularly, and adjustments, if any, are reflected in earnings in the period in which they become known. The establishment of new loss and loss expense reserves or the adjustment of previously recorded loss and loss expense reserves could result in significant positive or negative changes to the Company's financial condition for any particular period. While management believes the Company's estimate of loss and loss expense reserves is reasonable, the ultimate loss experience may not be reliably predicted, and it is possible losses and loss expenses may be materially different than the total reserve for losses and loss expenses recorded by the Company.

Reserves for losses and loss expenses are based in part upon the estimation of losses resulting from catastrophic events. Estimation of these losses and loss expenses are based upon the Company's historical claims experience and is inherently difficult because of the Company's short operating history and the possible severity of catastrophe claims. Therefore, the Company uses both proprietary and commercially available models, as well as historical reinsurance industry catastrophe claims experience in addition to its own historical data for purposes of evaluating trends and providing an estimate of ultimate claims costs.

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Reinsurance (Policy)

12 Months Ended

Dec. 31, 2016

Reinsurance Transactions [Abstract]

Reinsurance

(c) Reinsurance

Reinsurance recoverable on paid and unpaid losses represent estimates of losses and loss expenses that will be recovered from reinsurers. Amounts recoverable from reinsurers are estimated in a manner consistent with the provisions of the reinsurance agreements and consistent with the establishment of the Company's reserve for losses and loss expenses. Ceding commissions earned on ceded business are classified as an offset to acquisition and general and administrative expenses.

The Company purchases reinsurance to reduce its exposure to risk of loss in certain insurance and reinsurance lines of business. Reinsurance recoverables are recorded as assets if the reinsurer is deemed able to meet its obligations. Ceded reinsurance contracts do not relieve the Company from its obligations to policyholders. The Company remains primarily liable to its policyholders for the portion reinsured to the extent that any reinsurer does not meet the obligations assumed under the reinsurance agreements.

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Derivatives (Policy)

12 Months Ended

Dec. 31, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Accounting policy for derivatives

The interest rate lock agreement was designated as a "cash flow hedge" under current accounting guidance and accordingly, the fair value of the derivative was recorded in other comprehensive (loss) income and is being recognized as a component of interest expense in the Consolidated Statements of Income and Comprehensive Income as the interest expense related to the 7% Senior Notes affects earnings.

These loans are fully collateralized, are generally outstanding for a short period of time and are presented as part of cash and cash equivalents in the Consolidated Balance Sheets.

None of the Company's derivatives are designated as hedges under current accounting guidance, with the exception of the interest rate lock. The Company's objectives for holding these derivatives are as follows:

Interest Rate Futures, Swaps, Swaptions and Options - to manage exposure to interest rate risk, which can include increasing or decreasing its exposure to this risk through modification of the portfolio composition and duration.

Industry Loss Warranty ("ILW") Swaps - to manage underwriting risk. The Company has entered into ILW swap contracts which provide reinsurance-like protection to the Company for specific loss events associated with certain lines of its business. The Company has also sold ILW protection, which provides reinsurance-like protection to third parties for specific loss events.

Foreign Exchange Forwards, Futures and Options - as part of its overall currency risk management and investment strategies.

Credit Default Swaps - to manage market exposures. The Company may assume or economically hedge credit risk through credit default swaps to replicate or hedge investment positions. The original term of these credit default swaps is generally five years or less.

To-Be-Announced Mortgage-backed Securities (“TBAs”) - to enhance investment performance and as part of the overall investment strategy. TBAs represent commitments to purchase or sell a future issuance of agency mortgage-backed securities. For the period between the purchase of a TBA and issuance of the underlying securities, the Company’s position is accounted for as a derivative.

Energy and Weather Contracts - to address weather and energy risks. The Company may purchase or sell contracts with financial settlements based on the performance of an index linked to a quantifiable weather element, such as temperature, precipitation, snowfall or windspeed, and structures with multiple risk triggers indexed to a quantifiable weather element and a weather sensitive commodity price, such as temperature and electrical power or natural gas. Generally, the Company’s current portfolio of energy and weather derivative contracts is of comparably short duration and such contracts are predominantly seasonal in nature.

LIBOR Swap – to establish future net cash flows in connection with the Trust Preferred Securities for the 5-year period beginning March 30, 2012 as if these securities bore interest at a fixed rate of 4.905%. See Note 8, Debt and financing arrangements.

Loss Development Cover – as part of the sale of Montpelier U.S. Insurance Company ("MUSIC") to Selective Insurance Group, Inc. ("Selective"), Montpelier Reinsurance Ltd. ("Montpelier Re", now Endurance Bermuda) entered into a loss development cover with MUSIC which ensures that MUSIC's reserve for losses and loss expenses relating to retained business written on or prior to December 31, 2011 remains adequate. Under the loss development cover, any future adverse development associated with such retained reserves will be protected by Endurance Bermuda and any future favorable development associated with such retained reserves will benefit Endurance Bermuda.

Offsetting of derivatives policy

At December 31, 2016 and 2015, the Company's derivative instruments were recorded on a gross basis in the Consolidated Balance Sheets.

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Segment Reporting (Policy)

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Segment Reporting

The Company attributes gross premiums written to the geographic region in which the risks originate.

The determination of the Company's business segments is based on how the Company monitors the performance of its underwriting operations. The Company has two reportable business segments, Insurance and Reinsurance.

• Insurance – This segment is comprised of four lines of business: agriculture, casualty and other specialty, professional lines, and property, marine/energy and aviation. The agriculture line of business is comprised of multi-peril crop insurance, crop hail, livestock risk protection and other agriculture risk management products. The casualty and other specialty line of business is comprised of the insurance and facultative reinsurance of third party liability exposures, including casualty and healthcare liability. The professional line of business includes directors' and officers' liability, errors and omissions, employment practices liability, environmental liability and pension trust liability insurance. The property, marine/energy and aviation line of business is comprised of the insurance and facultative reinsurance of commercial properties, inland marine and ocean marine insurance, energy insurance, and general liability and property coverages for a wide range of general aviation risks.

• Reinsurance – This segment is comprised of five lines of business: catastrophe, property, casualty, professional lines, and specialty. The catastrophe line of business includes reinsurance for catastrophic perils on a treaty basis. The property line of business includes proportional and excess of loss reinsurance of personal and commercial exposures. The casualty line of business is comprised of third party liability exposures, clash and workers' compensation coverages. The professional line of business includes directors' and officers' liability, errors and omissions, employment practices liability, environmental liability and pension trust liability reinsurance. The specialty line of business includes the reinsurance of aviation and space business and proportional and non-proportional reinsurance of hull and cargo insurance business, and proportional and excess of loss coverages of contract and commercial surety business, personal accident coverages, political risk coverages, weather risk management products and agriculture coverages for weather related perils as well as protection from yield and price risks.

10.     Segment reporting, cont'd.

Management measures Insurance and Reinsurance segment results on the basis of the combined ratio, which is obtained by dividing the sum of the net losses and loss expenses, acquisition expenses and general and administrative expenses by net premiums earned. When purchased within a single line of business, ceded reinsurance and recoveries are accounted for within that line of business. When purchased across multiple lines of business, ceded reinsurance and recoveries are allocated to the lines of business in proportion to the related risks assumed. The Company does not manage its assets by segment; accordingly, investment income and total assets are not allocated to the individual business segments. General and administrative expenses incurred by segments are allocated directly. Remaining general and administrative expenses not incurred by the segments are classified as corporate expenses and are not allocated to the individual business segments. Ceded reinsurance and recoveries are recorded within the business segment to which they apply.

The underwriting results of Montpelier are included in the Company's segment results from August 1, 2015.

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Goodwill And Intangible Assets Goodwill And Intangible Assets (Policies)

12 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

(f)    Intangible assets

Identifiable intangible assets are amortized in accordance with their useful lives. Goodwill and intangible assets with indefinite useful lives are not amortized but are tested for impairment annually at the beginning of the fourth quarter, or more often if impairment indicators arise. In making an assessment of the value of its goodwill and intangible assets, the Company uses both market based and non-market based valuations.

Assumptions underlying these valuations include forecasts of discounted future cash flows and future profits and comparable transactions observed in the market, in addition to an analysis of the Company’s stock price relative to both its book value and its net income.

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Stock-Based Employee Compensation And Other Stock Plans (Policy)

12 Months Ended

Dec. 31, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share Based Compensation RSU Plans [Policy]

The fair value of the restricted share units granted or assumed is equal to the fair market value of the Company's ordinary shares on the grant or assumption date, as applicable. Compensation equal to the fair market value of the restricted share units at the measurement date is amortized and charged to income over the vesting period.

Stock Compensation And Other Stock Plans

(k) Stock compensation and other stock plans

The Company has a share-based employee and non-employee director equity incentive plan ("2007 Equity Incentive Plan") and other share plans, which are described more fully in Note 16, Stock-based employee compensation and other stock plans. The fair value of the compensation cost incurred under these plans is measured at the grant date and is expensed over the period for which the employee is required to provide services in exchange for the award. Forfeiture benefits are estimated at the time of grant and incorporated in the determination of share-based compensation costs. Awards under the 2007 Equity Incentive Plan generally vest over four years for employees and one year for non-employee directors.

The Company uses the Black-Scholes-Merton formula to estimate the value of stock options granted.

The fair value of the performance-based restricted shares is measured at the grant date using a Monte Carlo simulation based on pre-established targets relating to certain performance based measures achieved by the Company, with the associated expense recognized over the applicable performance and vesting period.

The fair value of the restricted shares granted is equal to the fair market value of the Company's ordinary shares on the grant date. Compensation equal to the fair market value of the restricted shares at the measurement date is amortized and charged to income over the vesting period.

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Acquisition of Montpelier (Tables)

12 Months Ended

Dec. 31, 2016

Business Combinations [Abstract]

Schedule of Business Acquisitions, by Acquisition [Table Text Block]

The Company's total purchase price for Montpelier at July 31, 2015 was calculated as follows:

Consideration paid by Endurance Holdings
Number of Montpelier common shares outstanding immediately prior to the closing of the acquisition	43,827,753
Exchange ratio	0.472
Total Company ordinary shares	20,686,699
Company ordinary share closing price on July 31, 2015	$	69.49
Total value of Company ordinary shares	$	1,437,519
Fair value of restricted share units attributable to service period prior to Closing Date(1)	$	33,327
Total consideration	$	1,470,846
Special Dividend paid by Montpelier
Number of Montpelier common shares and restricted share units eligible for special dividend	45,611,810
Special dividend paid per Montpelier common share and restricted share unit	$	9.89
Total special dividend consideration paid to Montpelier common shareholders and Montpelier equity award holders	$	451,101
Total consideration received by Montpelier common shareholders and Montpelier equity award holders	$	1,921,947
Less: Special Dividend paid by Montpelier	(451,101		)
Net purchase price	$	1,470,846

(1) Outstanding Montpelier restricted share units were assumed by the Company and adjusted as of the Closing Date to represent the right to receive 0.472 Company ordinary shares for each outstanding Montpelier restricted share unit rounded down to the next whole number of Company ordinary shares. The fair value of the Montpelier restricted share units was determined based on the closing price of the Company's ordinary shares on the Closing Date. The resulting fair value of the restricted share units was apportioned as purchase consideration based on service provided to Montpelier as of the Closing Date with the remaining fair value of these restricted share units to be recognized prospectively over the restricted share units' remaining vesting period.

The following table summarizes the results of Montpelier since July 31, 2015 that have been included in the Company's Consolidated Statement of Income and Comprehensive Income for the year ended December 31, 2015:

	For the period from July 31, 2015 to December 31, 2015
Total revenues	$	225,899
Net income attributable to the Company's common shareholders(1)	54,768

(1) Includes $52.7 million of compensation-related costs associated with terminating employees of Montpelier.

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

The Company identified finite lived intangible assets of $293.2 million, which will be amortized over a weighted average period of 8 years, identifiable indefinite lived intangible assets of $57.6 million, and certain other adjustments to the fair values of the assets acquired, liabilities assumed and shareholders' equity of Montpelier at July 31, 2015 as summarized in the table below:

Montpelier shareholders' equity attributable to controlling interest prior to Special Dividend	$	1,560,255
Cash and cash equivalents (Special Dividend on Montpelier common shares and Montpelier equity awards)	(451,101		)
Adjusted shareholders' equity of Montpelier as of July 31, 2015	1,109,154
Adjustments for fair value, by applicable balance sheet caption:
Assets:
Fixed maturity investments, trading at fair value	(11,100		)
Deferred acquisition costs	(91,713		)
Reinsurance recoverable on unpaid losses	(675		)
Other assets	(12,459		)
Liabilities:
Reserve for losses and loss expenses	10,822
Debt	21,123
Deferred tax liability	(18,346		)
Equity:
Non-controlling interest	25,615
Total adjustments for fair value by applicable balance sheet caption	(76,733		)
Adjustments for fair value of the identifiable intangible assets:
Identifiable indefinite lived intangible assets (insurance licenses, Lloyd's syndicate capacity and asset management agreements)	57,600
Identifiable finite lived intangible assets (non-contractual relationships, Lloyd's syndicate distribution channel, renewal rights, value of business acquired ("VOBA"), trade names, non-compete agreements and asset management agreements)	293,200
Total adjustments for fair value by applicable balance sheet caption and identifiable intangible assets	274,067
Estimated fair value of net assets acquired and identifiable intangible assets	1,383,221
Total consideration paid by Endurance Holdings	1,470,846
Estimated total consideration over the fair value of net assets acquired assigned to goodwill	$	87,625

Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block]

Identifiable intangible assets at July 31, 2015 consisted of the following, and are included in goodwill and other intangible assets on the Company's consolidated balance sheets:

	Amount		Economic Useful Life
Key non-contractual relationships	$	71,800	10
Other non-contractual relationships	22,400		3
Trade names	1,800		Various
Insurance licenses	1,900		Indefinite
Non-compete agreements	5,700		Various
Lloyd's syndicate capacity	48,300		Indefinite
Lloyd's syndicate distribution channel	18,400		10
Renewal rights	82,100		15
VOBA	88,400		2
Asset management agreements	10,000		Various
Identifiable intangible assets at July 31, 2015	$	350,800

Business Acquisition, Pro Forma Information [Table Text Block]

The following table presents unaudited pro forma consolidated financial information for the years ended December 31, 2015 and 2014 and assumes the acquisition of Montpelier occurred on January 1, 2014. The unaudited pro forma consolidated financial information is provided for informational purposes only and is not necessarily, and should not be assumed to be, an indication of the results that would have been achieved had the transaction been completed as of January 1, 2014 or that may be achieved in the future. The unaudited pro forma consolidated financial information does not give consideration to the impact of possible revenue enhancements, expense efficiencies, synergies or asset dispositions that may result from the acquisition of Montpelier. In addition, unaudited pro forma consolidated financial information does not include the effects of costs associated with any restructuring or integration activities resulting from the acquisition of Montpelier, as they are nonrecurring.

	Year Ended December 31,
	2015		2014
Total revenues	$	2,452,410	$	2,668,604
Net income available to Endurance Holdings' common shareholders	443,817		388,371

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Investments (Tables)

12 Months Ended

Dec. 31, 2016

Investments [Abstract]

Composition Of Net Investment Income

The components of net investment income for the years ended December 31, 2016, 2015 and 2014 are as follows:

	2016			2015			2014
Fixed income investments	$	165,210		$	132,786		$	118,084
Equity securities	12,639			8,209			5,689
Other investments	12,442			(13,553		)	19,609
Cash and cash equivalents	2,824			2,870			2,445
	$	193,115		$	130,312		$	145,827
Investment expenses	(16,525		)	(16,486		)	(14,284		)
Net investment income	$	176,590		$	113,826		$	131,543

Contractual Maturities Of Fixed Maturity And Short-Term Investments

Contractual maturities of the Company's fixed maturity and short-term investments are shown below as of December 31, 2016 and 2015. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	December 31, 2016				December 31, 2015
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due within one year	$	617,655	$	617,462	$	622,070	$	622,248
Due after one year through five years	2,170,111		2,187,173		2,005,456		1,995,502
Due after five years through ten years	887,775		896,388		683,147		676,932
Due after ten years	55,400		58,449		33,168		34,651
Residential mortgage-backed securities	1,448,917		1,461,286		1,301,083		1,311,373
Commercial mortgage-backed securities	615,730		618,848		817,570		812,886
Collateralized loan and debt obligations	369,126		371,256		419,795		405,128
Asset-backed securities	509,595		510,663		510,540		507,255
Total	$	6,674,309	$	6,721,525	$	6,392,829	$	6,365,975

Fair Value of Trading Investments

The following table summarizes the fair value of the fixed maturity investments, short-term investments and equity securities classified as trading at December 31, 2016 and 2015.

	December 31, 2016		December 31, 2015
Fixed maturity investments
U.S. government and agencies securities	$	551,055	$	319,674
U.S. state and municipal securities	6,006		5,559
Foreign government securities	110,088		49,861
Government guaranteed corporate securities	2,959		38,201
Corporate securities	1,051,200		532,192
Residential mortgage-backed securities	483,444		258,574
Commercial mortgage-backed securities	164,237		127,124
Collateralized loan and debt obligations	98,924		103,219
Asset-backed securities	272,142		152,756
Total fixed maturity investments	2,740,055		1,587,160
Short-term investments	330,199		394,111
Total fixed income investments	$	3,070,254	$	1,981,271
Equity securities
Equity investments	$	16,056	$	14,676
Preferred equity investments	—		553
Total equity securities	$	16,056	$	15,229

Other Investments

The following table summarizes the composition and redemption restrictions of other investments as of December 31, 2016 and 2015:

December 31, 2016	Market Value		Unfunded Commitments		Ineligible for Redemption in 2017
Alternative funds
Hedge funds	$	482,865	$	—	$	85,963
Private investment funds	76,451		92,214		76,451
Other investment funds	28,992		—		27,518
Total alternative funds	588,308		92,214		189,932
Total other investments	$	588,308	$	92,214	$	189,932

December 31, 2015	Market Value		Unfunded Commitments		Ineligible for Redemption in 2016
Alternative funds
Hedge funds	$	704,966	$	—	$	57,876
Private investment funds	80,690		102,070		80,690
Other investment funds	23,465		—		24,958
Total alternative funds	809,121		102,070		163,524
Specialty funds
High yield loan funds	63,496		—		—
Total specialty funds	63,496		—		—
Total other investments	$	872,617	$	102,070	$	163,524

Net Realized And Unrealized (Losses) Gains

The analysis of gross realized gains and losses, net unrealized gains and losses on trading securities, intangible asset impairment loss, and the change in the fair value of investment-related derivative financial instruments for the years ended December 31, 2016, 2015 and 2014 are as follows:

	2016			2015			2014
Gross realized gains on investment sales	$	39,033		$	65,881		$	35,921
Gross realized losses on investment sales	(61,752		)	(28,636		)	(16,515		)
Net unrealized gains (losses) on trading securities	12,480			(24,257		)	—
Intangible asset impairment loss(1)	—			—			(5,450		)
Change in fair value of derivative financial instruments(2)	(2,180		)	(328		)	327
Net realized and unrealized (losses) gains	$	(12,419	)	$	12,660		$	14,283

(1) For additional information on the Company's intangible assets, see Note 11, Goodwill and intangible assets.

(2) For additional information on the Company's derivative financial instruments, see Note 9, Derivatives.

Amortized Cost, Fair Value, Unrealized Gains and Losses for Available for Sale Securities

December 31, 2015	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Fixed maturity investments
U.S. government and agencies securities	$	499,386	$	2,561	$	(3,153	)	$	498,794
U.S. state and municipal securities	16,908		120		(181		)	16,847
Foreign government securities	110,893		803		(581		)	111,115
Government guaranteed corporate securities	19,248		311		(7		)	19,552
Corporate securities	1,323,276		5,698		(11,232		)	1,317,742
Residential mortgage-backed securities	1,041,540		16,400		(5,141		)	1,052,799
Commercial mortgage-backed securities	689,078		4,737		(8,053		)	685,762
Collateralized loan and debt obligations	304,915		796		(3,802		)	301,909
Asset-backed securities	356,753		585		(2,839		)	354,499
Total fixed maturity investments	$	4,361,997	$	32,011	$	(34,989	)	$	4,359,019
Short-term investments	25,657		28		—			25,685
Total fixed income investments	$	4,387,654	$	32,039	$	(34,989	)	$	4,384,704
Equity securities
Equity investments	$	527,154	$	6,835	$	(37,474	)	$	496,515
Preferred equity investments	15,275		1,946		(151		)	17,070
Total equity securities	$	542,429	$	8,781	$	(37,625	)	$	513,585

The amortized cost, fair value and related gross unrealized gains and losses on the Company's securities classified as available for sale at December 31, 2016 and 2015 are as follows:

December 31, 2016	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Fixed maturity investments
U.S. government and agencies securities	$	449,638	$	3,981	$	(2,792	)	$	450,827
U.S. state and municipal securities	11,560		945		(154		)	12,351
Foreign government securities	68,539		2,236		(1,944		)	68,831
Government guaranteed corporate securities	912		46		—			958
Corporate securities	1,078,756		26,481		(8,744		)	1,096,493
Residential mortgage-backed securities	968,273		21,032		(11,463		)	977,842
Commercial mortgage-backed securities	452,011		8,790		(6,190		)	454,611
Collateralized loan and debt obligations	271,361		1,644		(673		)	272,332
Asset-backed securities	237,177		2,242		(898		)	238,521
Total fixed maturity investments	$	3,538,227	$	67,397	$	(32,858	)	$	3,572,766
Short-term investments	78,506		1		(2		)	78,505
Total fixed income investments	$	3,616,733	$	67,398	$	(32,860	)	$	3,651,271
Equity securities
Equity investments	$	461,509	$	27,948	$	(4,545	)	$	484,912
Preferred equity investments	175		—		(2		)	173
Total equity securities	$	461,684	$	27,948	$	(4,547	)	$	485,085

Available For Sale Securities In An Unrealized Loss Position

The following tables summarize, for all available for sale securities in an unrealized loss position at December 31, 2016 and 2015, the aggregate fair value and gross unrealized loss by length of time the security has continuously been in an unrealized loss position.

	Less than 12 months					12 months or greater					Total
December 31, 2016	Unrealized Losses(1)			Fair Value		Unrealized Losses(1)			Fair Value		Unrealized Losses(1)			Fair Value
Fixed maturity investments
U.S. government and agencies securities	$	(2,791	)	$	289,012	$	(1	)	$	248	$	(2,792	)	$	289,260
U.S. state and municipal securities	(152		)	5,288		(2		)	2,143		(154		)	7,431
Foreign government securities	(446		)	15,717		(1,498		)	5,973		(1,944		)	21,690
Corporate securities	(7,512		)	448,643		(1,232		)	11,897		(8,744		)	460,540
Residential mortgage-backed securities	(10,082		)	521,167		(1,381		)	31,835		(11,463		)	553,002
Commercial mortgage-backed securities	(3,453		)	174,144		(2,737		)	76,694		(6,190		)	250,838
Collateralized loan and debt obligations	(223		)	50,194		(450		)	81,043		(673		)	131,237
Asset-backed securities	(539		)	64,109		(359		)	39,770		(898		)	103,879
Total fixed maturity investments	$	(25,198	)	$	1,568,274	$	(7,660	)	$	249,603	$	(32,858	)	$	1,817,877
Short-term investments	(2		)	4,691		—			—		(2		)	4,691
Total fixed income investments	$	(25,200	)	$	1,572,965	$	(7,660	)	$	249,603	$	(32,860	)	$	1,822,568
Equity securities
Equity investments	$	(2,855	)	$	71,509	$	(1,690	)	$	17,408	$	(4,545	)	$	88,917
Preferred equity investments	(2		)	123		—			—		(2		)	123
Total equity securities	$	(2,857	)	$	71,632	$	(1,690	)	$	17,408	$	(4,547	)	$	89,040

(1) Gross unrealized losses include unrealized losses on non-OTTI and non-credit OTTI securities recognized in accumulated other comprehensive loss at December 31, 2016.

	Less than 12 months					12 months or greater					Total
December 31, 2015	Unrealized Losses(1)			Fair Value		Unrealized Losses(1)			Fair Value		Unrealized Losses(1)			Fair Value
Fixed maturity investments
U.S. government and agencies securities	$	(2,175	)	$	347,024	$	(978	)	$	16,669	$	(3,153	)	$	363,693
U.S. state and municipal securities	(96		)	9,662		(85		)	695		(181		)	10,357
Foreign government securities	(404		)	31,881		(177		)	3,966		(581		)	35,847
Government guaranteed corporate securities	(7		)	1,692		—			—		(7		)	1,692
Corporate securities	(9,222		)	830,349		(2,010		)	51,024		(11,232		)	881,373
Residential mortgage-backed securities	(3,378		)	365,082		(1,763		)	79,355		(5,141		)	444,437
Commercial mortgage-backed securities	(6,708		)	436,387		(1,345		)	42,246		(8,053		)	478,633
Collateralized loan and debt obligations	(3,107		)	224,520		(695		)	48,167		(3,802		)	272,687
Asset-backed securities	(2,624		)	311,814		(215		)	12,880		(2,839		)	324,694
Total fixed income investments	$	(27,721	)	$	2,558,411	$	(7,268	)	$	255,002	$	(34,989	)	$	2,813,413
Equity securities
Equity investments	$	(32,021	)	$	329,280	$	(5,453	)	$	56,421	$	(37,474	)	$	385,701
Preferred equity investments	(151		)	7,361		—			—		(151		)	7,361
Total equity securities	$	(32,172	)	$	336,641	$	(5,453	)	$	56,421	$	(37,625	)	$	393,062

(1) Gross unrealized losses include unrealized losses on non-OTTI and non-credit OTTI securities recognized in accumulated other comprehensive loss at December 31, 2015.

Non-controlling Interests Rollforward

The following table summarizes the movements in the non-redeemable non-controlling interests balance for the year ended December 31, 2016 and from the acquisition date, July 31, 2015 to December 31, 2015:

	Year Ended December 31, 2016			Five Months Ended December 31, 2015
Non-controlling interests, beginning balance	$	267,810		$	258,529
Income attributable to third-party investments in the BCGR Cell	14,577			5,526
Income attributable to third-party investments in BCRH	9,553			5,490
Net income attributable to non-controlling interests	24,130			11,016
Net preferred share redemption attributable to third-party investments in the BCGR Cell (1)	(19,799		)	—
Net investments attributable to third-parties in BCRH	72			20
Net change in third-party investments in non-controlling interests	(19,727		)	20
Dividends declared by BCRH attributable to non-controlling interests	(12,519		)	(1,755		)
Non-controlling interests - ending balance	$	259,694		$	267,810

(1) The redemption from the BCGR Cell was required to fund expenses, repay debt and fund dividends by BCGR.

XML

Fair Value Measurement (Tables)

12 Months Ended

Dec. 31, 2016

Fair Value Disclosures [Abstract]

Schedule Of Fixed Maturity Investments, Equity Securities, Short-term Investments, Derivative Instruments and Debt Measured On A Recurring Basis

The following table sets forth the Company's fixed maturity investments, equity securities, short-term investments, other assets and liabilities and debt categorized by the level within the hierarchy in which the fair value measurements fall at December 31, 2016:

			Fair Value Measurements at December 31, 2016
	Total at December 31, 2016		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Fixed maturity investments
U.S. government and agencies securities	$	1,001,882	$	51,827	$	950,055	$	—
U.S. state and municipal securities	18,357		—		18,357		—
Foreign government securities	178,919		—		178,919		—
Government guaranteed corporate securities	3,917		—		3,917		—
Corporate securities	2,147,693		—		1,968,056		179,637
Residential mortgage-backed securities	1,461,286		—		1,461,286		—
Commercial mortgage-backed securities	618,848		—		618,848		—
Collateralized loan and debt obligations	371,256		—		371,256		—
Asset-backed securities	510,663		—		510,663		—
Total fixed maturity investments	6,312,821		51,827		6,081,357		179,637
Equity securities
Equity investments	500,968		184,251		316,717		—
Preferred equity investments	173		—		173		—
Total equity securities	501,141		184,251		316,890		—
Short-term investments	408,704		—		408,654		50
Other assets (see Note 9)	166,716		1,953		123,681		41,082
Total assets	$	7,389,382	$	238,031	$	6,930,582	$	220,769
Liabilities
Other liabilities (see Note 9)	$	84,069	$	2,772	$	55,051	$	26,246
Debt	770,704		—		770,704		—
Total liabilities	$	854,773	$	2,772	$	825,755	$	26,246

The following table sets forth the Company's fixed maturity investments, equity securities, short-term investments, other assets and liabilities and debt categorized by the level within the hierarchy in which the fair value measurements fall at December 31, 2015:

			Fair Value Measurements at December 31, 2015
	Total at December 31, 2015		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Fixed maturity investments
U.S. government and agencies securities	$	818,468	$	37,741	$	780,727	$	—
U.S. state and municipal securities	22,406		—		22,406		—
Foreign government securities	160,976		—		160,976		—
Government guaranteed corporate securities	57,753		—		57,753		—
Corporate securities	1,849,934		—		1,739,002		110,932
Residential mortgage-backed securities	1,311,373		—		1,311,373		—
Commercial mortgage-backed securities	812,886		—		812,174		712
Collateralized loan and debt obligations	405,128		—		404,319		809
Asset-backed securities	507,255		—		507,255		—
Total fixed maturity investments	$	5,946,179	$	37,741	$	5,795,985	$	112,453
Equity securities
Equity investments	511,191		275,086		236,105		—
Preferred equity investments	17,623		—		17,623		—
Total equity securities	$	528,814	$	275,086	$	253,728	$	—
Short-term investments	419,796		—		419,796		—
Other assets (see Note 9)	68,892		4		27,385		41,503
Total assets	$	6,963,681	$	312,831	$	6,496,894	$	153,956
Liabilities
Other liabilities (see Note 9)	$	46,088	$	—	$	4,059	$	42,029
Debt	737,974		—		737,974		—
Total liabilities	$	784,062	$	—	$	742,033	$	42,029

Fair Value Inputs Assets And Liabilities Quantitative Information [Table Text Block]

Below is a summary of quantitative information regarding the significant observable and unobservable inputs used in determining the fair value of the net weather and energy related derivative assets and liabilities classified in Level 3 that are measured at fair value on a recurring basis at December 31, 2016 and 2015:

	December 31, 2016
	Fair Value (Level 3)		Valuation Techniques	Inputs	Range
					Low			High
	(Commodity curve in U.S. dollars in thousands)
Net weather and energy related derivative assets	$	14,836	Historical Analysis and Simulation	Correlation	0			1
				Temperature	-15F			115F
				Composite weather variable	-25 deg.			45 deg.
				Rainfall	0"			2"
				Windspeed	0.01 m/s			25 m/s
				Wave height	0 m			25 m
				Commodity curve	$	(1	)	$	14

	December 31, 2015
	Fair Value (Level 3)		Valuation Techniques	Inputs	Range
					Low		High
	(Commodity curve in U.S. dollars in thousands)
Net weather and energy related derivative liabilities	$	526	Historical Analysis and Simulation	Correlation	0		1
				Temperature	-15F		115F
				Composite weather variable	-25 deg.		45 deg.
				Rainfall	0"		2"
				Windspeed	0.01 m/s		25 m/s
				Snowfall	0"		18"
				Cyclone (category)	—		5
				Commodity curve	$	—	$	13

Reconciliation Of The Beginning And Ending Balances For All Fixed Maturity Investments And Derivative Instruments Measured At Fair Value On A Recurring Basis Using Level 3 Inputs

The following tables present a reconciliation of the beginning and ending balances for all assets and liabilities measured at fair value on a recurring basis using Level 3 inputs during the years ended December 31, 2016 and 2015.

December 31, 2016	Fixed maturity investments			Other assets			Total assets			Other liabilities
Level 3, beginning of year	$	112,453		$	41,503		$	153,956		$	(42,029	)
Total equity income and losses and realized and unrealized gains and losses included in earnings	4,321			—			4,321			—
Total income and losses included in other underwriting loss	—			5,796			5,796			90
Change in unrealized gains and losses included in other comprehensive (loss) income	263			—			263			—
Purchases	48,572			—			48,572			—
Issues	—			22,571			22,571			(34,219		)
Sales	(57,987		)	—			(57,987		)	—
Settlements	—			(28,788		)	(28,788		)	49,912
Transfers into Level 3	79,332			—			79,332			—
Transfers out of Level 3	(7,267		)	—			(7,267		)	—
Level 3, end of year	$	179,687		$	41,082		$	220,769		$	(26,246	)

December 31, 2015	Fixed maturity investments			Other assets			Total assets			Other liabilities
Level 3, beginning of year	$	12,290		$	25,615		$	37,905		$	(35,366	)
Total equity income and losses and realized and unrealized gains and losses included in earnings	(2,785		)	—			(2,785		)	—
Total income and losses included in other underwriting loss	—			(2,951		)	(2,951		)	5,062
Change in unrealized gains and losses included in other comprehensive (loss) income	(180		)	—			(180		)	—
Purchases	13			4,750			4,763			(4,231		)
Issues	—			21,559			21,559			(34,114		)
Sales	(15,695		)	—			(15,695		)	—
Settlements	—			(7,470		)	(7,470		)	26,620
Transfers into Level 3	131,215			—			131,215			—
Transfers out of Level 3	(12,405		)	—			(12,405		)	—
Level 3, end of year	$	112,453		$	41,503		$	153,956		$	(42,029	)

XML

Reserve For Losses And Loss Expenses (Tables)

12 Months Ended

Dec. 31, 2016

Insurance Loss Reserves [Abstract]

Activity in the reserve for losses and loss expenses

Activity in the reserve for losses and loss expenses for the years ended December 31, 2016, 2015 and 2014 is summarized as follows:

	2016			2015			2014
Gross reserve for losses and loss expenses, January 1	$	4,510,415		$	3,846,859		$	4,002,259
Reinsurance recoverable on unpaid losses	907,944			670,795			593,755
Net reserve for losses and loss expenses, January 1	3,602,471			3,176,064			3,408,504
Incurred related to:
Current year	1,542,602			1,160,572			1,203,977
Prior years	(221,550		)	(243,464		)	(233,815		)
Total incurred	1,321,052			917,108			970,162
Paid related to:
Current year	(295,863		)	(265,898		)	(439,169		)
Prior years	(890,027		)	(867,739		)	(719,043		)
Total paid	(1,185,890		)	(1,133,637		)	(1,158,212		)
Amounts acquired(1)	—			675,019			—
Foreign currency translation and other	(45,624		)	(32,083		)	(44,390		)
Net reserve for losses and loss expenses, December 31	3,692,009			3,602,471			3,176,064
Reinsurance recoverable on unpaid losses	1,213,129			907,944			670,795
Gross reserve for losses and loss expenses, December 31	$	4,905,138		$	4,510,415		$	3,846,859

(1) Represents the fair value of Montpelier's reserve for losses and loss expenses and reinsurance recoverable acquired at July 31, 2015.

Claims development tables

The following tables show, by segment by line of business, the incurred losses and loss expenses and cumulative paid losses and loss expenses, net of reinsurance, as of December 31, 2016. The following also includes the amount of IBNR reserves recorded as well as the cumulative number of reported claims for the Insurance segment lines of business and only excess of loss reinsurance contracts for the Reinsurance segment lines of business.

Insurance Segment - Agriculture
Incurred losses and loss expenses, net of reinsurance
For the years ended December 31,																					At December 31, 2016
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016		IBNR reserves		Cumulative number of reported claims
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2007	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	—
2008	—		333,380		318,709		313,296		313,800		313,814		313,938		313,834		313,834		313,834		—		30,036
2009	—		—		298,914		284,277		280,798		281,667		281,594		281,365		281,365		281,365		—		26,540
2010	—		—		—		305,131		280,330		280,409		280,166		280,008		280,008		280,008		—		18,331
2011	—		—		—		—		520,388		509,531		508,424		507,930		507,847		507,847		—		37,061
2012	—		—		—		—		—		581,455		576,836		573,376		572,995		572,469		—		38,297
2013	—		—		—		—		—		—		566,483		563,158		562,122		562,826		—		44,138
2014	—		—		—		—		—		—		—		451,710		451,843		449,705		—		53,886
2015	—		—		—		—		—		—		—		—		241,501		227,634		—		39,508
2016	—		—		—		—		—		—		—		—		—		200,353		20,453		29,353
Total																			$	3,396,041
Cumulative paid losses and loss expenses, net of reinsurance
For the years ended December 31,
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2007	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
2008	—		239,498		310,235		313,196		313,708		313,722		313,859		313,834		313,834		313,834
2009	—		—		178,206		281,996		280,468		280,991		281,058		281,365		281,365		281,365
2010	—		—		—		144,296		279,397		279,768		279,859		280,008		280,008		280,008
2011	—		—		—		—		461,335		506,905		507,790		507,918		507,847		507,847
2012	—		—		—		—		—		478,797		573,781		572,885		572,995		572,469
2013	—		—		—		—		—		—		438,034		562,046		562,075		561,652
2014	—		—		—		—		—		—		—		352,202		448,046		449,705
2015	—		—		—		—		—		—		—		—		122,696		222,212
2016	—		—		—		—		—		—		—		—		—		75,894
Total																			$	3,264,986
			Reserve for losses and loss expenses, net of reinsurance																$	131,055

6.     Reserve for losses and loss expenses, cont'd.

Insurance Segment - Casualty & Other Specialty
Incurred losses and loss expenses, net of reinsurance
For the years ended December 31,																					At December 31, 2016
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016		IBNR reserves		Cumulative number of reported claims
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2007	$	254,678	$	251,840	$	228,021	$	232,156	$	232,186	$	235,482	$	213,895	$	197,246	$	196,072	$	191,927	$	20,274	988
2008	—		285,334		296,079		333,844		366,479		363,094		347,477		339,927		328,153		312,759		35,706		1,602
2009	—		—		198,689		240,235		237,368		237,101		234,983		230,594		218,900		206,077		24,553		2,509
2010	—		—		—		150,636		179,854		179,208		175,922		160,450		135,214		122,748		19,995		2,738
2011	—		—		—		—		151,344		169,803		222,470		226,274		201,355		186,588		48,836		4,319
2012	—		—		—		—		—		164,568		182,924		187,141		183,644		179,929		73,724		6,268
2013	—		—		—		—		—		—		153,377		165,853		205,041		230,081		81,540		6,790
2014	—		—		—		—		—		—		—		120,226		132,184		141,970		84,031		7,969
2015	—		—		—		—		—		—		—		—		145,828		156,771		77,472		8,717
2016	—		—		—		—		—		—		—		—		—		165,558		137,608		5,305
Total																			$	1,894,408
Cumulative paid losses and loss expenses, net of reinsurance
For the years ended December 31,
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2007	$	9,090	$	38,777	$	66,865	$	103,283	$	124,887	$	139,923	$	144,982	$	152,297	$	159,687	$	163,236
2008	—		36,479		82,811		129,840		169,331		200,021		239,185		255,585		261,201		266,264
2009	—		—		15,098		50,815		83,210		103,922		139,011		150,241		160,903		168,351
2010	—		—		—		863		4,279		27,379		64,917		83,634		88,737		96,785
2011	—		—		—		—		3,279		14,468		30,074		54,598		91,817		97,285
2012	—		—		—		—		—		3,707		16,190		32,686		51,381		75,508
2013	—		—		—		—		—		—		3,145		15,581		89,771		119,524
2014	—		—		—		—		—		—		—		3,389		18,914		36,446
2015	—		—		—		—		—		—		—		—		18,426		49,196
2016	—		—		—		—		—		—		—		—		—		14,281
Total																			$	1,086,876
			Reserve for losses and loss expenses from accident year 2006 and prior, net of reinsurance																30,599
			Adjustment for unallocated claim expenses																43,666
			Reserve for losses and loss expenses, net of reinsurance																$	881,797

6.     Reserve for losses and loss expenses, cont'd.

Insurance Segment - Professional Lines
Incurred losses and loss expenses, net of reinsurance
For the years ended December 31,																					At December 31, 2016
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016		IBNR reserves		Cumulative number of reported claims
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2007	$	52,739	$	110,525	$	150,972	$	120,358	$	119,243	$	117,895	$	113,520	$	116,711	$	125,496	$	122,969	$	47	232
2008	—		62,838		62,586		83,358		88,047		96,887		109,471		127,641		138,119		164,412		3,932		379
2009	—		—		100,914		118,432		104,421		106,597		109,441		99,973		92,165		93,803		5,728		1,039
2010	—		—		—		108,369		105,611		101,591		92,931		82,421		74,856		69,387		9,860		1,594
2011	—		—		—		—		102,012		98,353		99,466		79,988		98,989		105,619		15,265		1,232
2012	—		—		—		—		—		101,872		103,358		101,426		79,591		69,333		18,080		1,233
2013	—		—		—		—		—		—		78,988		79,732		70,564		61,499		27,377		1,255
2014	—		—		—		—		—		—		—		64,437		66,524		57,446		29,232		2,599
2015	—		—		—		—		—		—		—		—		74,823		72,559		58,966		3,464
2016	—		—		—		—		—		—		—		—		—		107,761		99,005		3,814
Total																			$	924,788
Cumulative paid losses and loss expenses, net of reinsurance
For the years ended December 31,
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2007	$	83	$	987	$	1,744	$	62,321	$	90,128	$	100,560	$	100,693	$	110,254	$	120,328	$	122,867
2008	—		54		1,898		14,027		15,888		16,613		48,997		72,576		98,770		113,175
2009	—		—		1,045		8,755		32,193		38,000		56,126		73,072		77,628		80,201
2010	—		—		—		1,932		16,014		27,557		36,506		46,982		48,978		51,885
2011	—		—		—		—		2,367		11,766		21,266		33,639		71,782		85,003
2012	—		—		—		—		—		2,582		13,185		22,237		29,854		35,678
2013	—		—		—		—		—		—		2,193		13,807		21,289		26,783
2014	—		—		—		—		—		—		—		1,167		7,081		20,020
2015	—		—		—		—		—		—		—		—		1,243		7,130
2016	—		—		—		—		—		—		—		—		—		2,324
Total																			$	545,066
			Reserve for losses and loss expenses from accident year 2006 and prior, net of reinsurance																61
			Adjustment for unallocated claim expenses																26,477
			Reserve for losses and loss expenses, net of reinsurance																$	406,260

6.     Reserve for losses and loss expenses, cont'd.

Insurance Segment - Property, Marine/Energy & Aviation
Incurred losses and loss expenses, net of reinsurance
For the years ended December 31,																					At December 31, 2016
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016		IBNR reserves		Cumulative number of reported claims
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2007	$	45,128	$	32,772	$	25,714	$	28,766	$	29,071	$	28,925	$	33,206	$	33,741	$	34,083	$	32,680	$	—	201
2008	—		113,427		104,626		84,425		74,111		84,093		80,158		78,176		78,178		77,373		13		459
2009	—		—		60,589		48,196		23,651		21,225		19,933		19,423		19,780		19,341		33		568
2010	—		—		—		93,741		54,986		48,033		42,918		41,703		42,202		43,240		992		1,423
2011	—		—		—		—		163,234		139,932		125,588		124,243		127,840		133,297		256		2,486
2012	—		—		—		—		—		172,535		137,329		123,134		121,281		121,873		405		2,704
2013	—		—		—		—		—		—		115,600		101,878		85,794		80,971		3,933		3,145
2014	—		—		—		—		—		—		—		136,748		114,243		102,002		7,588		4,405
2015	—		—		—		—		—		—		—		—		183,192		184,867		18,890		6,281
2016	—		—		—		—		—		—		—		—		—		234,235		72,271		6,600
Total																			$	1,029,879
Cumulative paid losses and loss expenses, net of reinsurance
For the years ended December 31,
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2007	$	10,626	$	19,644	$	21,987	$	22,614	$	23,482	$	23,780	$	32,561	$	33,546	$	34,084	$	32,671
2008	—		40,140		57,685		62,922		64,434		75,187		75,042		77,234		77,910		77,239
2009	—		—		11,014		16,967		18,120		18,657		18,887		19,075		19,407		19,261
2010	—		—		—		11,680		29,150		33,938		36,306		38,880		40,782		41,802
2011	—		—		—		—		17,871		63,710		82,967		103,301		117,337		123,496
2012	—		—		—		—		—		18,709		79,533		87,216		102,447		108,983
2013	—		—		—		—		—		—		20,929		57,243		66,851		71,423
2014	—		—		—		—		—		—		—		26,491		60,418		79,321
2015	—		—		—		—		—		—		—		—		52,121		131,697
2016	—		—		—		—		—		—		—		—		—		77,448
Total																			$	763,341
			Reserve for losses and loss expenses from accident year 2006 and prior, net of reinsurance																3
			Adjustment for unallocated claim expenses																7,855
			Reserve for losses and loss expenses, net of reinsurance																$	274,396

6.     Reserve for losses and loss expenses, cont'd.

Reinsurance Segment - Catastrophe
Incurred losses and loss expenses, net of reinsurance
For the years ended December 31,																					At December 31, 2016
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016		IBNR reserves		Cumulative number of reported claims
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2007	$	168,640	$	126,561	$	104,527	$	102,855	$	91,502	$	88,252	$	86,273	$	90,379	$	97,851	$	102,929	$	153	192
2008	—		405,190		378,838		389,111		392,668		384,117		382,382		382,068		384,864		381,551		317		336
2009	—		—		102,411		74,817		59,051		55,933		55,229		56,944		58,910		60,788		559		204
2010	—		—		—		272,094		234,576		226,060		226,208		231,531		237,677		224,323		1,394		265
2011	—		—		—		—		622,350		591,965		589,614		603,680		612,274		624,448		4,640		574
2012	—		—		—		—		—		245,011		180,145		163,109		154,240		151,003		3,884		345
2013	—		—		—		—		—		—		157,097		129,469		127,984		124,311		1,454		315
2014	—		—		—		—		—		—		—		141,173		126,822		126,512		3,156		229
2015	—		—		—		—		—		—		—		—		60,465		47,255		4,057		224
2016	—		—		—		—		—		—		—		—		—		137,357		27,654		216
Total																			$	1,980,477
Cumulative paid losses and loss expenses, net of reinsurance
For the years ended December 31,
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2007	$	31,590	$	85,271	$	87,267	$	91,214	$	83,511	$	82,285	$	80,852	$	88,684	$	97,279	$	102,497
2008	—		154,382		255,721		316,023		353,658		375,455		378,322		380,366		382,431		380,409
2009	—		—		26,869		45,763		48,440		49,847		51,013		54,189		57,551		59,865
2010	—		—		—		58,556		124,322		152,264		173,341		193,340		207,716		208,329
2011	—		—		—		—		230,619		385,304		495,351		561,864		593,831		615,504
2012	—		—		—		—		—		56,614		105,745		126,802		134,288		136,862
2013	—		—		—		—		—		—		34,236		83,259		106,983		116,996
2014	—		—		—		—		—		—		—		49,337		107,546		117,040
2015	—		—		—		—		—		—		—		—		20,084		31,850
2016	—		—		—		—		—		—		—		—		—		43,793
Total																			$	1,813,145
			Reserve for losses and loss expenses from accident year 2006 and prior, net of reinsurance																91
			Adjustment for unallocated claim expenses																3,002
			Reserve for losses and loss expenses, net of reinsurance																$	170,425

6.     Reserve for losses and loss expenses, cont'd.

Reinsurance Segment - Property
Incurred losses and loss expenses, net of reinsurance
For the years ended December 31,																					At December 31, 2016
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016		IBNR reserves		Cumulative number of reported claims
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2007	$	123,502	$	137,474	$	127,294	$	120,598	$	116,552	$	115,947	$	119,773	$	121,653	$	121,902	$	117,706	$	2	309
2008	—		173,437		151,764		133,022		123,162		124,861		126,887		126,991		125,622		122,943		3		612
2009	—		—		151,371		123,151		116,114		114,137		114,342		115,111		115,213		111,782		114		991
2010	—		—		—		221,480		216,726		190,322		186,817		188,516		188,304		174,952		419		1,126
2011	—		—		—		—		344,015		334,865		312,365		312,278		305,567		335,228		2,089		942
2012	—		—		—		—		—		314,924		259,753		240,928		240,070		244,651		2,224		813
2013	—		—		—		—		—		—		255,632		239,844		217,661		199,195		5,650		1,017
2014	—		—		—		—		—		—		—		211,769		211,888		197,761		11,702		1,060
2015	—		—		—		—		—		—		—		—		184,586		181,761		16,927		880
2016	—		—		—		—		—		—		—		—		—		166,629		55,289		542
Total																			$	1,852,608
Cumulative paid losses and loss expenses, net of reinsurance
For the years ended December 31,
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2007	$	23,678	$	71,828	$	103,059	$	111,825	$	111,155	$	112,559	$	116,499	$	119,203	$	120,881	$	116,680
2008	—		30,553		79,457		104,279		107,291		110,039		118,745		122,512		123,954		121,472
2009	—		—		27,690		71,123		89,940		97,377		103,688		107,021		109,796		107,609
2010	—		—		—		49,442		117,260		141,348		163,173		175,919		180,555		170,367
2011	—		—		—		—		76,880		172,679		254,657		286,065		291,961		326,570
2012	—		—		—		—		—		53,488		146,671		192,022		214,711		230,684
2013	—		—		—		—		—		—		55,668		138,841		173,888		176,721
2014	—		—		—		—		—		—		—		51,635		134,663		158,766
2015	—		—		—		—		—		—		—		—		37,685		100,328
2016	—		—		—		—		—		—		—		—		—		33,787
Total																			$	1,542,984
			Reserve for losses and loss expenses from accident year 2006 and prior, net of reinsurance																4,954
			Adjustment for unallocated claim expenses																4,301
			Reserve for losses and loss expenses, net of reinsurance																$	318,879

6.     Reserve for losses and loss expenses, cont'd.

Reinsurance Segment - Casualty
Incurred losses and loss expenses, net of reinsurance
For the years ended December 31,																					At December 31, 2016
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016		IBNR reserves		Cumulative number of reported claims
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2007	$	108,468	$	116,074	$	116,095	$	120,815	$	115,024	$	114,484	$	112,945	$	111,664	$	110,369	$	112,366	$	13,382	549
2008	—		112,680		118,736		116,204		114,790		107,336		101,613		98,504		97,260		93,732		9,538		406
2009	—		—		116,515		126,969		124,218		127,972		126,505		121,969		115,317		114,901		20,438		433
2010	—		—		—		186,667		179,891		176,073		170,938		172,699		160,142		159,409		27,794		506
2011	—		—		—		—		198,159		199,035		197,138		204,187		195,094		196,946		35,929		604
2012	—		—		—		—		—		195,983		191,436		193,164		183,512		174,625		42,134		701
2013	—		—		—		—		—		—		178,401		172,604		170,144		163,986		62,188		842
2014	—		—		—		—		—		—		—		125,515		120,521		119,143		45,271		615
2015	—		—		—		—		—		—		—		—		119,276		119,529		58,182		250
2016	—		—		—		—		—		—		—		—		—		143,263		106,858		127
Total																			$	1,397,900
Cumulative paid losses and loss expenses, net of reinsurance
For the years ended December 31,
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2007	$	3,009	$	13,399	$	23,890	$	35,928	$	48,519	$	57,254	$	64,711	$	73,518	$	77,378	$	87,170
2008	—		8,475		17,338		30,528		43,923		51,831		58,419		67,856		72,592		75,906
2009	—		—		7,367		21,841		34,770		51,576		61,615		70,558		76,463		83,892
2010	—		—		—		14,826		34,469		56,997		75,290		92,382		104,037		114,875
2011	—		—		—		—		28,035		50,998		77,748		104,394		116,519		141,449
2012	—		—		—		—		—		30,667		54,457		75,456		92,072		105,209
2013	—		—		—		—		—		—		18,577		35,808		56,564		71,677
2014	—		—		—		—		—		—		—		10,390		33,215		49,951
2015	—		—		—		—		—		—		—		—		15,817		34,396
2016	—		—		—		—		—		—		—		—		—		18,837
Total																			$	783,362
			Reserve for losses and loss expenses from accident year 2006 and prior, net of reinsurance																106,483
			Adjustment for unallocated claim expenses																10,637
			Reserve for losses and loss expenses, net of reinsurance																$	731,658

6.     Reserve for losses and loss expenses, cont'd.

Reinsurance Segment - Professional Lines
Incurred losses and loss expenses, net of reinsurance
For the years ended December 31,																					At December 31, 2016
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016		IBNR reserves		Cumulative number of reported claims
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2007	$	46,031	$	51,283	$	49,539	$	43,988	$	41,956	$	41,037	$	43,261	$	42,115	$	41,989	$	37,980	$	1,539	310
2008	—		41,797		50,276		47,154		44,672		47,084		44,526		42,863		41,599		39,059		1,171		262
2009	—		—		41,430		43,003		41,681		40,763		35,771		36,560		36,474		38,720		2,098		204
2010	—		—		—		58,153		58,567		67,335		62,185		53,825		46,661		45,024		3,733		110
2011	—		—		—		—		55,812		56,535		55,286		44,921		36,691		31,390		4,828		57
2012	—		—		—		—		—		43,519		42,443		43,426		36,707		30,576		5,803		81
2013	—		—		—		—		—		—		48,933		49,513		45,382		41,403		21,619		48
2014	—		—		—		—		—		—		—		91,943		88,915		90,713		50,367		62
2015	—		—		—		—		—		—		—		—		130,595		130,832		99,261		55
2016	—		—		—		—		—		—		—		—		—		148,671		139,857		10
Total																			$	634,368
Cumulative paid losses and loss expenses, net of reinsurance
For the years ended December 31,
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2007	$	144	$	2,310	$	5,649	$	10,694	$	16,764	$	21,259	$	28,121	$	30,796	$	33,144	$	32,771
2008	—		341		2,156		6,200		12,752		22,496		26,811		30,169		32,873		33,434
2009	—		—		1,033		3,330		7,963		15,666		19,184		23,469		27,039		32,329
2010	—		—		—		2,249		7,348		14,481		24,511		31,313		36,100		36,181
2011	—		—		—		—		1,685		4,943		9,405		15,168		20,124		22,142
2012	—		—		—		—		—		965		1,929		4,204		9,147		13,757
2013	—		—		—		—		—		—		997		2,561		6,694		11,636
2014	—		—		—		—		—		—		—		1,149		6,446		22,822
2015	—		—		—		—		—		—		—		—		2,941		14,357
2016	—		—		—		—		—		—		—		—		—		1,920
Total																			$	221,349
			Reserve for losses and loss expenses from accident year 2006 and prior, net of reinsurance																5,540
			Adjustment for unallocated claim expenses																6,164
			Reserve for losses and loss expenses, net of reinsurance																$	424,723

6.     Reserve for losses and loss expenses, cont'd.

Reinsurance Segment - Specialty
Incurred losses and loss expenses, net of reinsurance
For the years ended December 31,																					At December 31, 2016
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016		IBNR reserves		Cumulative number of reported claims
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2007	$	229,505	$	202,655	$	197,905	$	193,084	$	189,577	$	187,961	$	187,949	$	185,743	$	183,044	$	174,205	$	435	288
2008	—		125,389		94,050		92,039		79,903		79,052		77,556		75,348		73,745		67,604		3,549		195
2009	—		—		98,431		81,269		73,387		69,691		67,605		65,333		62,834		62,501		4,414		170
2010	—		—		—		123,741		107,630		97,718		86,949		85,252		84,817		82,937		1,856		218
2011	—		—		—		—		111,517		100,639		86,832		82,514		82,984		82,014		2,565		274
2012	—		—		—		—		—		135,448		111,813		99,700		92,162		85,852		5,174		294
2013	—		—		—		—		—		—		103,014		93,335		92,119		83,806		9,865		329
2014	—		—		—		—		—		—		—		120,335		116,642		108,392		19,693		342
2015	—		—		—		—		—		—		—		—		150,288		149,473		35,118		318
2016	—		—		—		—		—		—		—		—		—		156,042		111,660		134
Total																			$	1,052,826
Cumulative paid losses and loss expenses, net of reinsurance
For the years ended December 31,
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2007	$	16,023	$	123,632	$	143,800	$	153,622	$	160,113	$	169,797	$	174,059	$	175,948	$	177,082	$	169,673
2008	—		15,525		38,261		47,410		52,461		58,971		61,915		64,489		65,005		61,384
2009	—		—		13,286		33,142		39,439		43,804		47,556		52,481		52,635		55,068
2010	—		—		—		15,110		48,043		57,822		64,199		68,915		72,072		74,797
2011	—		—		—		—		22,755		44,494		61,019		68,869		73,730		75,760
2012	—		—		—		—		—		29,756		53,695		64,242		72,510		74,517
2013	—		—		—		—		—		—		14,696		37,621		52,015		62,458
2014	—		—		—		—		—		—		—		23,579		49,847		66,813
2015	—		—		—		—		—		—		—		—		18,994		70,659
2016	—		—		—		—		—		—		—		—		—		19,265
Total																			$	730,394
			Reserve for losses and loss expenses from accident year 2006 and prior, net of reinsurance																24,265
			Adjustment for unallocated claim expenses																6,119
			Reserve for losses and loss expenses, net of reinsurance																$	352,816

Reconciliation of claims development to liability

The following is a reconciliation of the net incurred and paid claims development tables to the reserve for losses and loss expenses in the consolidated balance sheet at December 31, 2016.

		December 31, 2016
		Net reserve for losses and loss expenses		Reinsurance recoverable on unpaid losses		Gross reserve for losses and loss expenses
Insurance
	Agriculture	$	131,055	$	116,832	$	247,887
	Casualty & other specialty	881,797		490,447		1,372,244
	Professional lines	406,260		305,114		711,374
	Property, marine/energy & aviation	274,396		193,088		467,484
Reinsurance
	Catastrophe	170,425		39,419		209,844
	Property	318,879		1,466		320,345
	Casualty	731,658		1,175		732,833
	Professional lines	424,723		449		425,172
	Specialty	352,816		65,139		417,955
Total		$	3,692,009	$	1,213,129	$	4,905,138

Claims duration

The following is unaudited supplementary information about historical average claims duration by line of business.

		Average annual percentage payout of incurred claims by age, net of reinsurance (number of years)
		1		2		3		4		5		6		7		8		9		10
Insurance Segment
	Agriculture	73.3	%	24.1	%	0.1	%	0.3	%	—	%	—	%	—	%	—	%	—	%	—	%
	Casualty & other specialty	5.5	%	11.3	%	15.5	%	15.1	%	12.8	%	7.1	%	4.5	%	2.7	%	3.7	%	1.4	%
	Professional lines	1.5	%	7.8	%	11.0	%	14.3	%	15.0	%	14.4	%	10.3	%	8.9	%	8.3	%	7.2	%
	Property, marine/energy & aviation	24.4	%	39.3	%	18.0	%	9.9	%	4.3	%	2.1	%	3.2	%	0.4	%	1.1	%	0.2	%
Reinsurance Segment
	Catastrophe	32.4	%	36.1	%	15.4	%	7.6	%	3.4	%	1.7	%	0.2	%	0.3	%	1.3	%	1.0	%
	Property	24.1	%	39.4	%	19.5	%	6.5	%	3.5	%	2.7	%	0.5	%	0.9	%	0.9	%	0.3	%
	Casualty	9.2	%	12.6	%	12.7	%	11.9	%	9.9	%	8.2	%	6.3	%	5.5	%	4.4	%	3.2	%
	Professional lines	1.9	%	6.7	%	12.1	%	18.5	%	16.9	%	12.2	%	8.2	%	6.4	%	4.3	%	3.3	%
	Specialty	13.9	%	37.7	%	20.6	%	7.0	%	7.6	%	4.6	%	2.2	%	3.1	%	0.6	%	—	%

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Reinsurance (Tables)

12 Months Ended

Dec. 31, 2016

Reinsurance Disclosures [Abstract]

Effects Of Reinsurance On Premiums Written And Earned

The effects of reinsurance on premiums earned and written during the years ended December 31, 2016, 2015 and 2014 are as follows:

	Year Ended December 31, 2016						Year Ended December 31, 2015						Year Ended December 31, 2014
	Earned			Written			Earned			Written			Earned			Written
Direct	$	2,336,314		$	2,570,494		$	1,938,830		$	2,085,901		$	1,521,648		$	1,716,128
Assumed	1,635,379			1,631,676			1,331,831			1,234,960			1,132,370			1,177,948
Ceded	(1,608,033		)	(1,832,235		)	(1,292,208		)	(1,370,391		)	(790,040		)	(959,870		)
	$	2,363,660		$	2,369,935		$	1,978,453		$	1,950,470		$	1,863,978		$	1,934,206

Losses Recoverable By Rating

The balance of reinsurance recoverable on paid and unpaid losses at December 31, 2016 and 2015 was distributed as follows based on the ratings of the reinsurers:

Rating	December 31, 2016		December 31, 2015
U.S. Government sponsored program	$	141,443	$	234,596
A+ and above	889,814		458,255
A	397,691		476,184
A-	5,805		7,060
Not rated	52,165		19,875
Total	$	1,486,918	$	1,195,970

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Derivatives (Tables)

12 Months Ended

Dec. 31, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule Of The Fair Values And The Related Notional Values Of Derivatives Included In The Company's Consolidated Balance Sheet

The fair values and the related notional values of derivatives at December 31, 2016 and 2015 are noted below.

	December 31, 2016				December 31, 2015
	Fair Value		Notional Principal Amount		Fair Value		Notional Principal Amount
Derivatives recorded in other assets
Foreign exchange forward contracts	$	629	$	34,630	$	425	$	38,818
Credit default swaps	266		5,450		36		4,225
Interest rate swaps	374		7,000		—		—
ILWs	1,010		20,000		—		—
TBAs	121,402		120,300		26,924		25,700
Energy and weather contracts	43,035		101,436		41,507		70,388
Total recorded in other assets	$	166,716			$	68,892
Derivatives recorded in other liabilities
Foreign exchange forward contracts	$	1,204	$	32,080	$	372	$	30,400
Credit default swaps	21		2,744		276		7,800
Interest rate swaps	59		1,100		7		42,000
Interest rate swaptions	34		5,400		—		—
Interest rate futures	—		—		8		54,488
ILWs	184		14,209		259		19,500
LIBOR swap	27		100,000		233		100,000
TBAs	50,704		50,400		—		—
Loss development cover	2,818		24,451		2,904		22,322
Energy and weather contracts	29,018		162,900		42,029		148,325
Total recorded in other liabilities	$	84,069			$	46,088
Net derivative asset	$	82,647			$	22,804

Schedule Of The Gains And Losses On The Consolidated Statements Of Income And Comprehensive Income From Derivatives

The gains and losses on the Consolidated Statements of Income and Comprehensive Income for derivatives for the years ended December 31, 2016, 2015 and 2014 were as follows:

	2016			2015			2014
Total gain included in net foreign exchange (gains) losses from foreign exchange forward contracts	$	516		$	2,095		$	1,880
Interest rate futures	(160		)	79			121
Credit default swaps	7			(50		)	30
Interest rate swaps	124			(915		)	(4,239		)
Interest rate swaptions	(20		)	56			477
ILWs	(1,675		)	(326		)	—
LIBOR swap	206			332			—
TBAs	(662		)	496			3,938
Total (losses) gains included in net realized and unrealized (losses) gains	(2,180		)	(328		)	327
Energy and weather contracts	4,835			2,281			(315		)
Loss development cover	(2,129		)	(1,419		)	—
Total gain (loss) included in other underwriting loss	2,706			862			(315		)
Total gains from derivatives	$	1,042		$	2,629		$	1,892

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Segment Reporting (Tables)

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Summary Of The Segment Revenues, Results And Reserve For Losses And Loss Expenses And The Carrying Value Of Goodwill

The following table provides a summary of the segment revenues and results for the year ended December 31, 2014, reserve for losses and loss expenses as of December 31, 2014 and the carrying value of goodwill as of December 31, 2014:

	Insurance			Reinsurance			Total
Revenues
Gross premiums written	$	1,716,128		$	1,177,948		$	2,894,076
Ceded premiums written	(855,722		)	(104,148		)	(959,870		)
Net premiums written	860,406			1,073,800			1,934,206
Net premiums earned	833,912			1,030,066			1,863,978
Other underwriting loss	—			(5,786		)	(5,786		)
	833,912			1,024,280			1,858,192
Expenses
Net losses and loss expenses	594,561			375,601			970,162
Acquisition expenses	65,368			254,145			319,513
General and administrative expenses	148,475			98,912			247,387
	808,404			728,658			1,537,062
Underwriting income	$	25,508		$	295,622		321,130
Net investment income							131,543
Corporate expenses							(66,200		)
Net foreign exchange losses							(3,839		)
Net realized and unrealized gains							14,283
Net impairment losses recognized in earnings							(625		)
Amortization of intangibles							(6,484		)
Interest expense							(40,968		)
Income before income taxes							$	348,840
Net loss ratio	71.4		%	36.4		%	52.1		%
Acquisition expense ratio	7.8		%	24.7		%	17.1		%
General and administrative expense ratio	17.7		%	9.6		%	16.8		%	(1)
Combined ratio	96.9		%	70.7		%	86.0		%
Reserve for losses and loss expenses	$	2,123,772		$	1,723,087		$	3,846,859
Goodwill	$	47,925		$	43,313		$	91,238

(1) Total general and administrative expense ratio includes general and administrative expenses and corporate expenses.

The following table provides a summary of the segment revenues and results for the year ended December 31, 2016, reserve for losses and loss expenses as of December 31, 2016 and the carrying value of goodwill as of December 31, 2016:

	Insurance			Reinsurance			Total
Revenues
Gross premiums written	$	2,570,494		$	1,631,676		$	4,202,170
Ceded premiums written	(1,514,240		)	(317,995		)	(1,832,235		)
Net premiums written	1,056,254			1,313,681			2,369,935
Net premiums earned	1,009,375			1,354,285			2,363,660
Other underwriting loss	—			(909		)	(909		)
	1,009,375			1,353,376			2,362,751
Expenses
Net losses and loss expenses	684,178			636,874			1,321,052
Acquisition expenses	149,763			310,720			460,483
General and administrative expenses	140,742			107,404			248,146
	974,683			1,054,998			2,029,681
Underwriting income	$	34,692		$	298,378		333,070
Net investment income							176,590
Corporate expenses							(51,706		)
Net foreign exchange gains							74,684
Net realized and unrealized losses							(12,419		)
Net impairment losses recognized in earnings							(10,769		)
Amortization of intangibles							(84,624		)
Interest expense							(43,860		)
Income before income taxes							$	380,966
Net loss ratio	67.9		%	47.1		%	55.9		%
Acquisition expense ratio	14.8		%	22.9		%	19.5		%
General and administrative expense ratio	13.9		%	7.9		%	12.7		%	(1)
Combined ratio	96.6		%	77.9		%	88.1		%
Reserve for losses and loss expenses	$	2,798,989		$	2,106,149		$	4,905,138
Goodwill	$	83,550		$	91,932		$	175,482

(1) Total general and administrative expense ratio includes general and administrative expenses and corporate expenses.

The following table provides a summary of the segment revenues and results for the year ended December 31, 2015, reserve for losses and loss expenses as of December 31, 2015 and the carrying value of goodwill as of December 31, 2015:

	Insurance			Reinsurance			Total
Revenues
Gross premiums written	$	2,085,901		$	1,234,960		$	3,320,861
Ceded premiums written	(1,205,528		)	(164,863		)	(1,370,391		)
Net premiums written	880,373			1,070,097			1,950,470
Net premiums earned	824,552			1,153,901			1,978,453
Other underwriting loss	—			(3,694		)	(3,694		)
	824,552			1,150,207			1,974,759
Expenses
Net losses and loss expenses	500,867			416,241			917,108
Acquisition expenses	80,252			267,633			347,885
General and administrative expenses	140,012			119,779			259,791
	721,131			803,653			1,524,784
Underwriting income	$	103,421		$	346,554		449,975
Net investment income							113,826
Corporate expenses							(114,429		)
Net foreign exchange losses							(26,964		)
Net realized and unrealized gains							12,660
Net impairment losses recognized in earnings							(3,715		)
Amortization of intangibles							(30,620		)
Interest expense							(41,260		)
Income before income taxes							$	359,473
Net loss ratio	60.8		%	36.0		%	46.4		%
Acquisition expense ratio	9.7		%	23.2		%	17.6		%
General and administrative expense ratio	17.0		%	10.4		%	18.9		%	(1)
Combined ratio	87.5		%	69.6		%	82.9		%
Reserve for losses and loss expenses	$	2,493,894		$	2,016,521		$	4,510,415
Goodwill	$	84,525		$	91,930		$	176,455

(1) Total general and administrative expense ratio includes general and administrative expenses and corporate expenses.

Schedule Of Gross Premiums Written By Line Of Business

The following table provides gross premiums written by line of business for the years ended December 31, 2016, 2015 and 2014:

Business Segment	2016		2015		2014
Insurance
Agriculture	$	760,877	$	840,445	$	866,025
Casualty and other specialty	657,558		514,203		396,113
Professional lines	461,552		344,482		263,538
Property, marine/energy and aviation	690,507		386,771		190,452
Total Insurance	2,570,494		2,085,901		1,716,128
Reinsurance
Catastrophe	506,300		311,914		343,213
Property	250,447		209,392		287,326
Casualty	245,092		176,506		159,533
Professional lines	256,337		248,610		174,656
Specialty	373,500		288,538		213,220
Total Reinsurance	1,631,676		1,234,960		1,177,948
Total	$	4,202,170	$	3,320,861	$	2,894,076

Schedule Of Geographic Distribution Of Gross Premiums Written

The following table provides the geographic distribution of gross premiums written for the years ended December 31, 2016, 2015 and 2014:

	2016		2015		2014
United States	$	2,823,950	$	2,305,301	$	2,054,431
Worldwide	794,289		566,664		456,078
Europe	265,100		209,729		172,077
Asia	105,838		75,165		38,442
Japan	82,864		58,524		45,618
Australasia	49,727		41,309		61,994
Other	80,402		64,169		65,436
Total	$	4,202,170	$	3,320,861	$	2,894,076

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Goodwill And Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule Of Goodwill And Intangible Assets

The following table shows an analysis of goodwill and intangible assets for the years ended December 31, 2016 and 2015:

	Goodwill			Intangible assets with indefinite lives			Intangible assets with finite lives			Total
Net balance at December 31, 2014	$	91,238		$	11,779		$	50,388		$	153,405
Additions(1)	87,367			57,600			293,218			438,185
Amortization	—			—			(30,620		)	(30,620		)
Foreign currency translation	(2,150		)	(2,738		)	(2,122		)	(7,010		)
Net balance at December 31, 2015	$	176,455		$	66,641		$	310,864		$	553,960
Additions	(973		)	—			11			(962		)
Amortization	—			—			(84,624		)	(84,624		)
Net balance at December 31, 2016	$	175,482		$	66,641		$	226,251		$	468,374
Gross balance	$	177,632		$	74,829		$	431,271		$	683,732
Accumulated amortization	—			—			(202,898		)	(202,898		)
Accumulated impairment losses	—			(5,450		)	—			(5,450		)
Accumulated foreign currency translation	(2,150		)	(2,738		)	(2,122		)	(7,010		)
Net balance	$	175,482		$	66,641		$	226,251		$	468,374

(1) For additional information on the intangible assets acquired during 2015, see Note 3, Acquisition of Montpelier.

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Commitments And Contingencies (Tables)

12 Months Ended

Dec. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

Schedule Of Percentage Of Gross Premiums Written Generated Through Company's Largest Brokers

The following table shows the percentage of gross premiums written generated through the Company's largest brokers for the years ended December 31, 2016, 2015 and 2014:

Broker	2016		2015		2014
Marsh & McLennan Companies, Inc.	20.9	%	19.8	%	19.1	%
Aon Benfield	14.3	%	12.8	%	13.2	%
Willis Companies	8.9	%	9.2	%	10.6	%
Total of largest brokers	44.1	%	41.8	%	42.9	%

Schedule Of Future Minimum Lease Commitments

Future minimum lease commitments at December 31, 2016 are as follows:

Year ending December 31,	Amount
2017	$	15,895
2018	19,945
2019	22,420
2020	21,060
2021	19,099
2022 and thereafter	103,443
	$	201,862

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Shareholders' Equity (Tables)

12 Months Ended

Dec. 31, 2016

Stockholders' Equity Note [Abstract]

Schedule Of Company's Share Capital

The Company’s share capital at December 31, 2016 and 2015 is comprised as follows:

	2016	2015
Preferred shares
Authorized – $1.00 par value each	9,200	9,209,200
Issued, outstanding and fully paid:
Series B preferred shares - $1.00 par value each; aggregate liquidation preference nil (2015 - $230,000)	—	9,200,000
Series C preferred shares – $1.00 par value each; aggregate liquidation preference $230,000 (2015 - $230,000)	9,200	9,200
	9,200	9,209,200
Common shares
Authorized - $1.00 par value each	120,000,000	120,000,000
Issued, outstanding and fully paid:
Ordinary common shares - $1.00 par value each	67,627,901	66,797,991

Schedule Of Accumulated Other Comprehensive (Loss) Income

The following table presents the changes in accumulated other comprehensive (loss) income balances by component for the years ended December 31, 2016 and 2015:

	For the Year Ended December 31, 2016
	Losses on cash flow hedges			Unrealized (losses) gains on available for sale securities			Foreign currency translation  adjustments			Total
Beginning balance	$	(1,678	)	$	(12,638	)	$	(32,318	)	$	(46,634	)
Other comprehensive (loss) income before reclassifications	—			54,287			(86,324		)	(32,037		)
Amounts reclassified from accumulated other comprehensive loss (1)	88			19,834			—			19,922
Net current period other comprehensive loss	88			74,121			(86,324		)	(12,115		)
Ending balance	$	(1,590	)	$	61,483		$	(118,642	)	$	(58,749	)

(1) All amounts are net of tax.

	For the Year Ended December 31, 2015
	Losses on cash flow hedges			Unrealized (losses) gains on available for sale securities			Foreign currency translation  adjustments			Total
Beginning balance	$	(1,766	)	$	86,100		$	(7,628	)	$	76,706
Other comprehensive (loss) income before reclassifications	—			(65,941		)	(24,690		)	(90,631		)
Amounts reclassified from accumulated other comprehensive loss(1)	88			(32,797		)	—			(32,709		)
Net current period other comprehensive loss	88			(98,738		)	(24,690		)	(123,340		)
Ending balance	$	(1,678	)	$	(12,638	)	$	(32,318	)	$	(46,634	)

(1) All amounts are net of tax.

Reclassification Out Of Accumulated Other Comprehensive Loss

The following tables present the significant items reclassified out of accumulated other comprehensive loss during the years ended December 31, 2016 and 2015:

For the Year Ended December 31, 2016
Details about accumulated other comprehensive loss components	Amount reclassified from accumulated other comprehensive loss		Affected line item in the Consolidated Statements of Income and Comprehensive Income
Losses on cash flow hedges - Debt	$	88	Interest expense
	88		Total before income taxes
	—		Income tax expense
	$	88	Total net of income taxes
Unrealized holding losses (gains) on available for sale securities	$	7,984	Net realized and unrealized (losses) gains
	10,769		Net impairment losses recognized in earnings
	18,753		Total before income taxes
	1,081		Income tax expense
	$	19,834	Total net of income taxes

For the Year Ended December 31, 2015
Details about accumulated other comprehensive loss components	Amount reclassified from accumulated other comprehensive loss			Affected line item in the Consolidated Statements of Income and Comprehensive Income
Losses on cash flow hedges - Debt	$	88		Interest expense
	88			Total before income taxes
	—			Income tax expense
	$	88		Total net of income taxes
Unrealized holding losses (gains) on available for sale securities	$	(37,245	)	Net realized and unrealized (losses) gains
	3,715			Net impairment losses recognized in earnings
	(33,530		)	Total before income taxes
	733			Income tax benefit
	$	(32,797	)	Total net of income taxes

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Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2016

Earnings Per Share [Abstract]

Schedule Of Computation Of Basic And Diluted Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share for the years ended December 31, 2016, 2015 and 2014:

	2016			2015			2014
Numerator:
Net income available to common and participating common shareholders	$	333,218		$	311,345		$	315,700
Less amount allocated to participating common shareholders (1)	(6,973		)	(8,749		)	(9,118		)
Net income allocated to common shareholders	$	326,245		$	302,596		$	306,582
Denominator:
Weighted average shares - basic	65,991,947			52,707,390			43,368,062
Share equivalents:
Options	65,351			118,392			47,111
Restricted shares and restricted share units	78,075			2,721			70
Weighted average shares - diluted	66,135,373			52,828,503			43,415,243
Basic earnings per common share	$	4.94		$	5.74		$	7.07
Diluted earnings per common share	$	4.93		$	5.73		$	7.06

(1) Represents earnings and dividends attributable to holders of unvested restricted shares and restricted share units issued under the Company's stock compensation plans that are considered participating. In periods of loss, no losses are allocated to participating common shareholders (unvested restricted shares and restricted share units).

Schedule Of Dividends Declared

The following table sets forth dividends declared in the years ended December 31, 2016, 2015 and 2014, respectively:

	2016		2015		2014
Dividends declared per Series A preferred share	$	—	$	1.9375	$	1.9375
Dividends declared per Series B preferred share	$	0.8646	$	1.8750	$	1.8750
Dividends declared per Series C preferred share	$	1,680.10	$	—	$	—
Dividends declared per common share	$	1.52	$	1.40	$	1.36

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Stock-Based Employee Compensation And Other Stock Plans (Tables)

12 Months Ended

Dec. 31, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Summary Of Stock Option Activity

A summary of option activity, including options held by employees, during the year ended December 31, 2016 is presented below:

	For the year ended December 31, 2016
Options Outstanding	Number of Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (years)	Aggregate Intrinsic Value
Beginning of year	320,000		$	48.20
Granted	—		—
Exercised	(160,000	)	48.20
Forfeited	—		—
Outstanding, end of year	160,000		$	48.20	6.41	$	7,072
Exercisable and vested options, end of year	—		$	—	N/A	$	—

Restricted Share And Restricted Share Unit Activity

A summary of the restricted share and restricted share unit activity during the year ended December 31, 2016, is presented below:

	Number of Shares/Units		Aggregate Intrinsic Value
Unvested, beginning of year	1,663,582
Granted	638,217
Settled	(769,445	)
Forfeited	(65,638	)
Unvested, end of year	1,466,716
Outstanding, end of year	1,466,716		$	135,525

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Statutory Requirements And Dividend Restrictions (Tables)

12 Months Ended

Dec. 31, 2016

Statutory Requirements And Dividend Restrictions [Abstract]

Statutory Capital

The combined statutory capital and combined statutory net income (loss) for the Company's principal operating subsidiaries, excluding Syndicate 5151, in their respective jurisdictions were as follows:

Statutory capital	Bermuda				United States				U.K. (1)				Singapore
	2016		2015		2016		2015		2016		2015		2016		2015
Required statutory capital	$	1,614,465	$	1,276,453	$	350,947	$	281,905	$	184,799	$	84,086	$	3,461	$	3,524
Actual statutory capital	4,525,290		4,307,249		810,704		768,791		451,257		538,265		59,025		49,842

(1)U.K. includes the statutory capital of Endurance U.K.

Statutory Net Income (Loss)

Statutory net income (loss)	Bermuda		United States		U.K.		Singapore
Year ended December 31, 2016	$	486,254	$	64,688	$	79,912	$	10,460
Year ended December 31, 2015	417,298		70,398		969		17,542
Year ended December 31, 2014	453,127		28,450		4,135		4,111

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Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Income Tax Benefit (Expense)

The income tax benefit (expense) was as follows for the years ended December 31,2016, 2015 and 2014, respectively:

	2016			2015			2014
Current income tax expense	$	(10,993	)	$	(6,262	)	$	(1,804	)
Deferred income tax benefit	11,174			1,900			1,414
Income tax benefit (expense)	$	181		$	(4,362	)	$	(390	)

Schedule Of Effective Income Tax Rate Reconciliation

The actual income tax benefit (expense) attributable to income for the years ended December 31, 2016, 2015 and 2014 differed from the amount computed by applying the combined effective rate of 0% under Bermuda law to income before income taxes, as a result of the following:

	2016			2015			2014
Computed expected tax expense	$	—		$	—		$	—
Tax expense effect on foreign taxes	(26,149		)	(8,071		)	(1,661		)
Change in valuation allowance	26,330			3,709			1,271
Income tax benefit (expense)	$	181		$	(4,362	)	$	(390	)

Schedule Of Net Deferred Tax Assets And Liabilities

Net deferred income tax assets and liabilities consisted of the following as of December 31, 2016 and 2015:

	2016			2015
Deferred income tax assets:
Unearned premiums	$	28,523		$	25,172
Loss reserves	26,594			27,370
Net operating loss carryforward	66,315			92,844
Deferred compensation	26,451			25,268
Deferred interest	48,359			46,568
Unrealized investment losses	1,803			1,568
Realized investment losses	4,010			4,972
Other	3,830			11,077
Total deferred income tax assets	205,885			234,839
Deferred income tax liabilities:
Deferred acquisition costs	(1,325		)	(8,179		)
Unrealized foreign exchange gains	—			(4,087		)
Temporary differences related to acquisition	(29,033		)	(35,461		)
Start up costs	(1,989		)	(1,565		)
Other	(10,002		)	(7,561		)
Total deferred income tax liabilities	(42,349		)	(56,853		)
Valuation allowance	(104,808		)	(131,138		)
Net deferred income tax asset	$	58,728		$	46,848

Schedule Of Distribution Of Income Before Income Taxes

The Company's income before income taxes was distributed as follows for the years ended December 31, 2016, 2015 and 2014, respectively:

	2016		2015		2014
U.S. (domestic)	$	40,872	$	95,649	$	60,112
Non-U.S. (foreign) (1)	340,094		263,824		288,728
Income before income taxes	$	380,966	$	359,473	$	348,840

(1) The Company's non-U.S. (foreign) operating subsidiaries write business that is exposed to risks originating in the United States.

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Condensed Unaudited Quarterly Financial Data (Tables)

12 Months Ended

Dec. 31, 2016

Quarterly Financial Information Disclosure [Abstract]

Summary Of The Unaudited Quarterly Data

The following is a summary of the unaudited quarterly data for the year ended December 31, 2016:

	Quarter Ended    March 31, 2016			Quarter Ended    June 30, 2016			Quarter Ended    September 30, 2016			Quarter Ended    December 31, 2016
Net premiums earned	$	553,191		$	599,608		$	610,156		$	600,705
Net investment income	11,181			43,977			62,236			59,196
Net realized and unrealized gains (losses)	13,787			6,347			13,405			(45,958		)
Net impairment losses recognized in earnings	(623		)	(9,841		)	(183		)	(122		)
Subtotal	$	577,536		$	640,091		$	685,614		$	613,821
Net losses and loss expenses	$	243,328		$	376,112		$	331,462		$	370,150
Acquisition, general and administrative, and corporate expenses	$	187,838		$	178,870		$	201,081		$	192,546
Net foreign exchange gains	$	(11,729	)	$	(32,751	)	$	(18,576	)	$	(11,628	)
Net income	$	124,644		$	87,628		$	139,400		$	29,475
Net income attributable to non-controlling interests	(9,063		)	(3,714		)	(5,679		)	(5,674		)
Net income available to Endurance Holdings	$	115,581		$	83,914		$	133,721		$	23,801
Preferred dividends	(9,203		)	(7,293		)	(3,651		)	(3,652		)
Net income available to Endurance Holdings' common and participating common shareholders	$	106,378		$	76,621		$	130,070		$	20,149
Basic earnings per share	$	1.58		$	1.14		$	1.93		$	0.30
Diluted earnings per share	$	1.58		$	1.14		$	1.92		$	0.30

The following is a summary of the unaudited quarterly data for the year ended December 31, 2015:

	Quarter Ended    March 31, 2015			Quarter Ended    June 30, 2015			Quarter Ended    September 30, 2015			Quarter Ended    December 31, 2015
Net premiums earned	$	389,859		$	458,135		$	557,003		$	573,456
Net investment income	41,861			32,252			16,533			23,180
Net realized and unrealized gains (losses)	18,189			9,680			5,029			(20,238		)
Net impairment losses recognized in earnings	(649		)	(424		)	(38		)	(2,604		)
Subtotal	$	449,260		$	499,643		$	578,527		$	573,794
Net losses and loss expenses	$	171,936		$	239,122		$	263,993		$	242,057
Acquisition, general and administrative, and corporate expenses	$	149,251		$	152,570		$	225,558		$	194,726
Net foreign exchange losses (gains)	$	7,552		$	12,981		$	8,621		$	(2,190	)
Net income	$	108,479		$	84,206		$	54,530		$	107,896
Net income attributable to non-controlling interests	—			—			(2,707		)	(8,309		)
Net income available to Endurance Holdings	$	108,479		$	84,206		$	51,823		$	99,587
Preferred dividends	(8,188		)	(8,188		)	(8,188		)	(8,186		)
Net income available to Endurance Holdings' common and participating common shareholders	$	100,291		$	76,018		$	43,635		$	91,401
Basic earnings per share	$	2.24		$	1.69		$	0.73		$	1.36
Diluted earnings per share	$	2.23		$	1.68		$	0.73		$	1.36

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Organization (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions		12 Months Ended
	Oct. 05, 2016	Dec. 31, 2016	Dec. 31, 2015	Jul. 31, 2015
Noncontrolling Interest [Line Items]
SOMPO acquisition price				$ 69.49
Acquisition transaction costs			$ 19.5
Blue Capital Reinsurance Holdings [Member]
Noncontrolling Interest [Line Items]
Ownership percentage		33.30%
Blue Capital Global Reinsurance Fund [Member]
Noncontrolling Interest [Line Items]
Ownership percentage		25.20%
SOMPO
Noncontrolling Interest [Line Items]
Percentage of outstanding ordinary shares acquired	100.00%
SOMPO acquisition price	$ 93.00
Aggregate consideration	$ 6,304.0
Loss on Contract Termination	204.9
Acquisition transaction costs	$ 15.8

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Summary Of Significant Accounting Policies (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Significant Accounting Policies [Line Items]
Premiums Earned LO Duration	12 months
Premiums Earned Risk Attaching Duration	24 months
Allowance for estimated uncollectible premiums receivable	$ 6.2	$ 7.4
Vesting period for employee awards	4 years
Restricted share awards to non-employee directors, vesting period	1 year
High
Significant Accounting Policies [Line Items]
Cash equivalents maturity, in days	90 days
Short-term investments maturity, in days	1 year
Low
Significant Accounting Policies [Line Items]
Short-term investments maturity, in days	90 days

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Acquisition of Montpelier (Narrative) (Details) $ / shares in Units, $ in Thousands		12 Months Ended
	Jul. 31, 2015 USD ($) states $ / shares shares	Dec. 31, 2015 USD ($)
Business Acquisition [Line Items]
Total Company ordinary shares | shares	20,686,699
Total value of Company ordinary shares	$ 1,437,519
Special dividend paid per Montpelier common share and restricted share unit | $ / shares	$ 9.89
Acquisition transaction and integration related expenses		$ 76,600
Acquisition transaction costs		19,500
Integration related costs		4,400
Compensation related costs		$ 52,700
Measurement period for a business combination, in months	12 months
Number of States in which Entity Operates | states	15
Montpelier [Member]
Business Acquisition [Line Items]
Total special dividend consideration paid to Montpelier common shareholders and Montpelier equity award holders	$ 451,101

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Acquisition of Montpelier (Purchase Price) (Details) - USD ($) $ / shares in Units, $ in Thousands		Jul. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Business Acquisition [Line Items]
Number of Montpelier common shares outstanding immediately prior to the closing of the acquisition			67,627,901	66,797,991
Exchange ratio		0.472
Total Company ordinary shares		20,686,699
Company ordinary share closing price on July 31, 2015		$ 69.49
Total value of Company ordinary shares		$ 1,437,519
Fair value of restricted share units attributable to service period prior to Closing Date(1)	[1]	33,327
Total consideration		$ 1,470,846
Special dividend paid per Montpelier common share and restricted share unit		$ 9.89
Total consideration received by Montpelier common shareholders and Montpelier equity award holders		$ 1,921,947
Net purchase price		$ 1,470,846
Montpelier [Member]
Business Acquisition [Line Items]
Number of Montpelier common shares outstanding immediately prior to the closing of the acquisition		43,827,753
Number of Montpelier common shares and restricted share units eligible for special dividend		45,611,810
Total special dividend consideration paid to Montpelier common shareholders and Montpelier equity award holders		$ (451,101)

[1] Outstanding Montpelier restricted share units were assumed by the Company and adjusted as of the Closing Date to represent the right to receive 0.472 Company ordinary shares for each outstanding Montpelier restricted share unit rounded down to the next whole number of Company ordinary shares. The fair value of the Montpelier restricted share units was determined based on the closing price of the Company's ordinary shares on the Closing Date. The resulting fair value of the restricted share units was apportioned as purchase consideration based on service provided to Montpelier as of the Closing Date with the remaining fair value of these restricted share units to be recognized prospectively over the restricted share units' remaining vesting period.

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Acquisition of Montpelier (Fair Value of Net Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Thousands	Jul. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Business Acquisition [Line Items]
Montpelier shareholders' equity attributable to controlling interest prior to Special Dividend		$ 4,882,439	$ 4,856,262	$ 3,185,182
Fixed maturity investments, trading at fair value	$ (11,100)
Deferred acquisition costs	(91,713)
Reinsurance recoverable on unpaid losses	(675)
Other assets	(12,459)
Reserve for losses and loss expenses	10,822
Debt	21,123
Deferred tax liability	(18,346)
Non-controlling interest	25,615
Total adjustments for fair value by applicable balance sheet caption	$ (76,733)
Estimated total consideration over the fair value of net assets acquired assigned to goodwill		$ 175,482	$ 176,455	$ 91,238
Weighted average useful life of acquired finite-lived intangible assets	8 years
Total adjustments for fair value by applicable balance sheet caption and identifiable intangible assets	$ 274,067
Estimated fair value of net assets acquired and identifiable intangible assets	1,383,221
Total consideration paid by Endurance Holdings	1,470,846
Montpelier [Member]
Business Acquisition [Line Items]
Montpelier shareholders' equity attributable to controlling interest prior to Special Dividend	1,560,255
Cash and cash equivalents (Special Dividend on Montpelier common shares and Montpelier equity awards)	(451,101)
Adjusted shareholders' equity of Montpelier as of July 31, 2015	1,109,154
Identifiable finite lived intangible assets (non-contractual relationships, Lloyd's syndicate distribution channel, renewal rights, value of business acquired (VOBA), trade names, non-compete agreements and asset management agreements)	293,200
Estimated total consideration over the fair value of net assets acquired assigned to goodwill	87,625
Identifiable indefinite lived intangible assets (insurance licenses, Lloyd's syndicate capacity and asset management agreements)	$ 57,600

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Acquisition of Montpelier (Intangible Assets) (Details) $ in Thousands	Jul. 31, 2015 USD ($)
Business Acquisition [Line Items]
Identifiable intangible assets at July 31, 2015	$ 350,800
Key non-contractual relationships
Business Acquisition [Line Items]
Finite lived intangible assets acquired	$ 71,800
Finite-Lived Intangible Asset, Useful Life	10 years
Other non-contractual relationships
Business Acquisition [Line Items]
Finite lived intangible assets acquired	$ 22,400
Finite-Lived Intangible Asset, Useful Life	3 years
Trade names
Business Acquisition [Line Items]
Finite lived intangible assets acquired	$ 1,800
Insurance licenses
Business Acquisition [Line Items]
Indefinite lived intangible assets acquired	1,900
Non-compete agreements
Business Acquisition [Line Items]
Finite lived intangible assets acquired	5,700
Lloyd's syndicate capacity
Business Acquisition [Line Items]
Indefinite lived intangible assets acquired	48,300
Lloyd's syndicate distribution channel
Business Acquisition [Line Items]
Finite lived intangible assets acquired	$ 18,400
Finite-Lived Intangible Asset, Useful Life	10 years
Renewal rights
Business Acquisition [Line Items]
Finite lived intangible assets acquired	$ 82,100
Finite-Lived Intangible Asset, Useful Life	15 years
VOBA
Business Acquisition [Line Items]
Finite lived intangible assets acquired	$ 88,400
Finite-Lived Intangible Asset, Useful Life	2 years
Asset management agreements
Business Acquisition [Line Items]
Indefinite lived intangible assets acquired	$ 10,000

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Acquisition of Montpelier (Financial Results) (Details) - USD ($) $ in Thousands		5 Months Ended	12 Months Ended
		Dec. 31, 2015	Dec. 31, 2015
Business Acquisition [Line Items]
Compensation related costs			$ 52,700
Montpelier [Member]
Business Acquisition [Line Items]
Total revenues		$ 225,899
Net income attributable to the Company's common shareholders(1)	[1]	$ 54,768

[1] Includes $52.7 million of compensation-related costs associated with terminating employees of Montpelier.

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Acquisition of Montpelier (Supplemental Proforma Information) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Business Combinations [Abstract]
Total revenues	$ 2,452,410	$ 2,668,604
Net income available to Endurance Holdings' common shareholders	$ 443,817	$ 388,371

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Investments (Narrative) (Details) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016 USD ($) positions	Sep. 30, 2016 USD ($)	Jun. 30, 2016 USD ($)	Mar. 31, 2016 USD ($)	Dec. 31, 2015 USD ($) positions	Sep. 30, 2015 USD ($)	Jun. 30, 2015 USD ($)	Mar. 31, 2015 USD ($)	Dec. 31, 2016 USD ($) positions	Dec. 31, 2015 USD ($) positions	Dec. 31, 2014 USD ($)
Investments [Abstract]
Number of available for sale securities in an unrealized loss position | positions	1,090				1,310				1,090	1,310
Number of securities in a continuous unrealized loss position for twelve months or greater | positions	218				158				218	158
Unrealized losses	$ (37,400)				$ (72,600)				$ (37,400)	$ (72,600)
Unrealized losses, 12 months or greater	(9,400)				(12,700)				(9,400)	(12,700)
Net impairment losses recognized in earnings	$ 122	$ 183	$ 9,841	$ 623	$ 2,604	$ 38	$ 424	$ 649	$ 10,769	$ 3,715	$ 625

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Investments (Composition Of Net Investment Income) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Net Investment Income [Line Items]
Gross investment income									$ 193,115	$ 130,312	$ 145,827
Investment expenses									(16,525)	(16,486)	(14,284)
Net investment income	$ 59,196	$ 62,236	$ 43,977	$ 11,181	$ 23,180	$ 16,533	$ 32,252	$ 41,861	176,590	113,826	131,543
Total fixed income investments
Net Investment Income [Line Items]
Gross investment income									165,210	132,786	118,084
Equity securities
Net Investment Income [Line Items]
Gross investment income									12,639	8,209	5,689
Other investments
Net Investment Income [Line Items]
Gross investment income									12,442	(13,553)	19,609
Cash and Cash Equivalents [Member]
Net Investment Income [Line Items]
Gross investment income									$ 2,824	$ 2,870	$ 2,445

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Investments (Contractual Maturities Of Fixed Income Securities) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Schedule of Available-for-sale and Trading Securities [Line Items]
Due within one year, amortized cost	$ 617,655	$ 622,070
Due within one year, fair value	617,462	622,248
Due after one year through five years, amortized cost	2,170,111	2,005,456
Due after one year through five years, fair value	2,187,173	1,995,502
Due after five years through ten years, amortized cost	887,775	683,147
Due after five years through ten years, fair value	896,388	676,932
Due after ten years, amortized cost	55,400	33,168
Due after ten years, fair value	58,449	34,651
Residential mortgage-backed securities
Schedule of Available-for-sale and Trading Securities [Line Items]
No single maturity date, amortized cost	1,448,917	1,301,083
No single maturity date, fair value	1,461,286	1,311,373
Fixed income investments, fair value	1,461,286	1,311,373
Commercial mortgage-backed securities
Schedule of Available-for-sale and Trading Securities [Line Items]
No single maturity date, amortized cost	615,730	817,570
No single maturity date, fair value	618,848	812,886
Fixed income investments, fair value	618,848	812,886
Collateralized loan and debt obligations
Schedule of Available-for-sale and Trading Securities [Line Items]
No single maturity date, amortized cost	369,126	419,795
No single maturity date, fair value	371,256	405,128
Fixed income investments, fair value	371,256	405,128
Asset-backed securities
Schedule of Available-for-sale and Trading Securities [Line Items]
No single maturity date, amortized cost	509,595	510,540
No single maturity date, fair value	510,663	507,255
Fixed income investments, fair value	510,663	507,255
Total fixed income investments
Schedule of Available-for-sale and Trading Securities [Line Items]
Fixed income investments, amortized cost	6,674,309	6,392,829
Fixed income investments, fair value	$ 6,721,525	$ 6,365,975

XML

Investments Investments (Fair Value of Trading Investments) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Schedule of Trading Securities [Line Items]
Fixed maturity investments, trading at fair value	$ 2,740,055	$ 1,587,160
Short-term investments, trading at fair value	330,199	394,111
Equity securities, trading at fair value	16,056	15,229
U.S. government and agencies securities
Schedule of Trading Securities [Line Items]
Fixed maturity investments, trading at fair value	551,055	319,674
U.S. state and municipal securities
Schedule of Trading Securities [Line Items]
Fixed maturity investments, trading at fair value	6,006	5,559
Foreign government securities
Schedule of Trading Securities [Line Items]
Fixed maturity investments, trading at fair value	110,088	49,861
Government guaranteed corporate securities
Schedule of Trading Securities [Line Items]
Fixed maturity investments, trading at fair value	2,959	38,201
Corporate securities
Schedule of Trading Securities [Line Items]
Fixed maturity investments, trading at fair value	1,051,200	532,192
Residential mortgage-backed securities
Schedule of Trading Securities [Line Items]
Fixed maturity investments, trading at fair value	483,444	258,574
Commercial mortgage-backed securities
Schedule of Trading Securities [Line Items]
Fixed maturity investments, trading at fair value	164,237	127,124
Collateralized loan and debt obligations
Schedule of Trading Securities [Line Items]
Fixed maturity investments, trading at fair value	98,924	103,219
Asset-backed securities
Schedule of Trading Securities [Line Items]
Fixed maturity investments, trading at fair value	272,142	152,756
Total fixed maturity investments
Schedule of Trading Securities [Line Items]
Fixed maturity investments, trading at fair value	2,740,055	1,587,160
Total fixed income investments
Schedule of Trading Securities [Line Items]
Fixed maturity investments, trading at fair value	3,070,254	1,981,271
Equity investments
Schedule of Trading Securities [Line Items]
Equity securities, trading at fair value	16,056	14,676
Preferred equity investments
Schedule of Trading Securities [Line Items]
Equity securities, trading at fair value	$ 0	$ 553

XML

Investments (Other Investments) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Schedule of Equity Method Investments [Line Items]
Market Value	$ 588,308	$ 872,617
Unfunded Commitments	92,214	102,070
Ineligible for redemption in next year	189,932	163,524
Alternative Funds [Member]
Schedule of Equity Method Investments [Line Items]
Market Value	588,308	809,121
Unfunded Commitments	92,214	102,070
Ineligible for redemption in next year	189,932	163,524
Hedge funds
Schedule of Equity Method Investments [Line Items]
Market Value	482,865	704,966
Unfunded Commitments	0	0
Ineligible for redemption in next year	85,963	57,876
Private investment funds
Schedule of Equity Method Investments [Line Items]
Market Value	76,451	80,690
Unfunded Commitments	92,214	102,070
Ineligible for redemption in next year	76,451	80,690
Other investment funds
Schedule of Equity Method Investments [Line Items]
Market Value	28,992	23,465
Unfunded Commitments	0	0
Ineligible for redemption in next year	$ 27,518	24,958
Specialty Funds [Member]
Schedule of Equity Method Investments [Line Items]
Market Value		63,496
Unfunded Commitments		0
Ineligible for redemption in next year		0
High yield loan funds
Schedule of Equity Method Investments [Line Items]
Market Value		63,496
Unfunded Commitments		0
Ineligible for redemption in next year		$ 0

XML

Investments (Other Investments Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Schedule of Equity Method Investments [Line Items]
Other investments, invested amount	$ 470,300	$ 737,100
Market Value	588,308	872,617
Alternative Funds [Member]
Schedule of Equity Method Investments [Line Items]
Market Value	588,308	809,121
Hedge funds
Schedule of Equity Method Investments [Line Items]
Market Value	$ 482,865	704,966
Estimated liquidation, percentage in next 12 months	82.20%
Hedge funds | Low
Schedule of Equity Method Investments [Line Items]
Estimated notice period, in days	30 days
Hedge funds | High
Schedule of Equity Method Investments [Line Items]
Estimated notice period, in days	90 days
Private investment funds
Schedule of Equity Method Investments [Line Items]
Market Value	$ 76,451	80,690
Private investment funds | Low
Schedule of Equity Method Investments [Line Items]
Estimated liquidation period, in years	5 years
Private investment funds | High
Schedule of Equity Method Investments [Line Items]
Estimated liquidation period, in years	10 years
Specialty Funds [Member]
Schedule of Equity Method Investments [Line Items]
Market Value		63,496
High yield loan funds
Schedule of Equity Method Investments [Line Items]
Market Value		$ 63,496
High yield loan funds | Low
Schedule of Equity Method Investments [Line Items]
Estimated notice period, in days	30 days
High yield loan funds | High
Schedule of Equity Method Investments [Line Items]
Estimated notice period, in days	90 days

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Investments (Net Realized And Unrealized Gains) (Details) - USD ($) $ in Thousands		3 Months Ended								12 Months Ended
		Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Investments [Abstract]
Gross realized gains on investment sales										$ 39,033	$ 65,881	$ 35,921
Gross realized losses on investment sales										(61,752)	(28,636)	(16,515)
Net unrealized gains (losses) on trading securities										12,480	(24,257)	0
Intangible asset impairment loss	[1]									0	0	(5,450)
Change in fair value of derivative financial instruments	[2]									(2,180)	(328)	327
Net realized and unrealized (losses) gains		$ (45,958)	$ 13,405	$ 6,347	$ 13,787	$ (20,238)	$ 5,029	$ 9,680	$ 18,189	$ (12,419)	$ 12,660	$ 14,283

[1] For additional information on the Company's intangible assets, see Note 11, Goodwill and intangible assets.

[2] For additional information on the Company's derivative financial instruments, see Note 9, Derivatives.

XML

Investments (Amortized Cost, Fair Value And Unrealized Gains And Losses Classified As Available For Sale) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Fixed income investments, amortized cost	$ 3,538,227	$ 4,361,997
Fixed income investments, fair value	3,572,766	4,359,019
Equity securities, cost	461,684	542,429
Equity securities, fair value	485,085	513,585
U.S. government and agencies securities
Schedule of Available-for-sale Securities [Line Items]
Fixed income investments, amortized cost	449,638	499,386
Fixed income investments, gross unrealized gains	3,981	2,561
Fixed income investments, gross unrealized losses	(2,792)	(3,153)
Fixed income investments, fair value	450,827	498,794
U.S. state and municipal securities
Schedule of Available-for-sale Securities [Line Items]
Fixed income investments, amortized cost	11,560	16,908
Fixed income investments, gross unrealized gains	945	120
Fixed income investments, gross unrealized losses	(154)	(181)
Fixed income investments, fair value	12,351	16,847
Foreign government securities
Schedule of Available-for-sale Securities [Line Items]
Fixed income investments, amortized cost	68,539	110,893
Fixed income investments, gross unrealized gains	2,236	803
Fixed income investments, gross unrealized losses	(1,944)	(581)
Fixed income investments, fair value	68,831	111,115
Government guaranteed corporate securities
Schedule of Available-for-sale Securities [Line Items]
Fixed income investments, amortized cost	912	19,248
Fixed income investments, gross unrealized gains	46	311
Fixed income investments, gross unrealized losses	0	(7)
Fixed income investments, fair value	958	19,552
Corporate securities
Schedule of Available-for-sale Securities [Line Items]
Fixed income investments, amortized cost	1,078,756	1,323,276
Fixed income investments, gross unrealized gains	26,481	5,698
Fixed income investments, gross unrealized losses	(8,744)	(11,232)
Fixed income investments, fair value	1,096,493	1,317,742
Residential mortgage-backed securities
Schedule of Available-for-sale Securities [Line Items]
Fixed income investments, amortized cost	968,273	1,041,540
Fixed income investments, gross unrealized gains	21,032	16,400
Fixed income investments, gross unrealized losses	(11,463)	(5,141)
Fixed income investments, fair value	977,842	1,052,799
Commercial mortgage-backed securities
Schedule of Available-for-sale Securities [Line Items]
Fixed income investments, amortized cost	452,011	689,078
Fixed income investments, gross unrealized gains	8,790	4,737
Fixed income investments, gross unrealized losses	(6,190)	(8,053)
Fixed income investments, fair value	454,611	685,762
Collateralized loan and debt obligations
Schedule of Available-for-sale Securities [Line Items]
Fixed income investments, amortized cost	271,361	304,915
Fixed income investments, gross unrealized gains	1,644	796
Fixed income investments, gross unrealized losses	(673)	(3,802)
Fixed income investments, fair value	272,332	301,909
Asset-backed securities
Schedule of Available-for-sale Securities [Line Items]
Fixed income investments, amortized cost	237,177	356,753
Fixed income investments, gross unrealized gains	2,242	585
Fixed income investments, gross unrealized losses	(898)	(2,839)
Fixed income investments, fair value	238,521	354,499
Total fixed maturity investments
Schedule of Available-for-sale Securities [Line Items]
Fixed income investments, amortized cost	3,538,227	4,361,997
Fixed income investments, gross unrealized gains	67,397	32,011
Fixed income investments, gross unrealized losses	(32,858)	(34,989)
Fixed income investments, fair value	3,572,766	4,359,019
Short-term investments
Schedule of Available-for-sale Securities [Line Items]
Fixed income investments, amortized cost	78,506	25,657
Fixed income investments, gross unrealized gains	1	28
Fixed income investments, gross unrealized losses	(2)	0
Fixed income investments, fair value	78,505	25,685
Total fixed income investments
Schedule of Available-for-sale Securities [Line Items]
Fixed income investments, amortized cost	3,616,733	4,387,654
Fixed income investments, gross unrealized gains	67,398	32,039
Fixed income investments, gross unrealized losses	(32,860)	(34,989)
Fixed income investments, fair value	3,651,271	4,384,704
Equity securities
Schedule of Available-for-sale Securities [Line Items]
Equity securities, cost	461,684	542,429
Equity securities, gross unrealized gains	27,948	8,781
Equity securities, gross unrealized loss	(4,547)	(37,625)
Equity securities, fair value	485,085	513,585
Equity investments
Schedule of Available-for-sale Securities [Line Items]
Equity securities, cost	461,509	527,154
Equity securities, gross unrealized gains	27,948	6,835
Equity securities, gross unrealized loss	(4,545)	(37,474)
Equity securities, fair value	484,912	496,515
Preferred equity investments
Schedule of Available-for-sale Securities [Line Items]
Equity securities, cost	175	15,275
Equity securities, gross unrealized gains	0	1,946
Equity securities, gross unrealized loss	(2)	(151)
Equity securities, fair value	$ 173	$ 17,070

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Investments (Available For Sale Securities In An Unrealized Loss Position) (Details) - USD ($) $ in Thousands		Dec. 31, 2016		Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Unrealized losses, 12 months or greater		$ (9,400)		$ (12,700)
Unrealized losses		(37,400)		(72,600)
U.S. government and agencies securities
Schedule of Available-for-sale Securities [Line Items]
Unrealized losses, less than 12 months		(2,791)	[1]	(2,175)	[2]
Fair value, less than 12 months		289,012		347,024
Unrealized losses, 12 months or greater		(1)	[1]	(978)	[2]
Fair value, 12 months or greater		248		16,669
Unrealized losses		(2,792)	[1]	(3,153)	[2]
Fair value		289,260		363,693
U.S. state and municipal securities
Schedule of Available-for-sale Securities [Line Items]
Unrealized losses, less than 12 months		(152)	[1]	(96)	[2]
Fair value, less than 12 months		5,288		9,662
Unrealized losses, 12 months or greater		(2)	[1]	(85)	[2]
Fair value, 12 months or greater		2,143		695
Unrealized losses		(154)	[1]	(181)	[2]
Fair value		7,431		10,357
Foreign government securities
Schedule of Available-for-sale Securities [Line Items]
Unrealized losses, less than 12 months		(446)	[1]	(404)	[2]
Fair value, less than 12 months		15,717		31,881
Unrealized losses, 12 months or greater		(1,498)	[1]	(177)	[2]
Fair value, 12 months or greater		5,973		3,966
Unrealized losses		(1,944)	[1]	(581)	[2]
Fair value		21,690		35,847
Government guaranteed corporate securities
Schedule of Available-for-sale Securities [Line Items]
Unrealized losses, less than 12 months	[2]			(7)
Fair value, less than 12 months				1,692
Unrealized losses, 12 months or greater	[2]			0
Fair value, 12 months or greater				0
Unrealized losses	[2]			(7)
Fair value				1,692
Corporate securities
Schedule of Available-for-sale Securities [Line Items]
Unrealized losses, less than 12 months		(7,512)	[1]	(9,222)	[2]
Fair value, less than 12 months		448,643		830,349
Unrealized losses, 12 months or greater		(1,232)	[1]	(2,010)	[2]
Fair value, 12 months or greater		11,897		51,024
Unrealized losses		(8,744)	[1]	(11,232)	[2]
Fair value		460,540		881,373
Residential mortgage-backed securities
Schedule of Available-for-sale Securities [Line Items]
Unrealized losses, less than 12 months		(10,082)	[1]	(3,378)	[2]
Fair value, less than 12 months		521,167		365,082
Unrealized losses, 12 months or greater		(1,381)	[1]	(1,763)	[2]
Fair value, 12 months or greater		31,835		79,355
Unrealized losses		(11,463)	[1]	(5,141)	[2]
Fair value		553,002		444,437
Commercial mortgage-backed securities
Schedule of Available-for-sale Securities [Line Items]
Unrealized losses, less than 12 months		(3,453)	[1]	(6,708)	[2]
Fair value, less than 12 months		174,144		436,387
Unrealized losses, 12 months or greater		(2,737)	[1]	(1,345)	[2]
Fair value, 12 months or greater		76,694		42,246
Unrealized losses		(6,190)	[1]	(8,053)	[2]
Fair value		250,838		478,633
Collateralized loan and debt obligations
Schedule of Available-for-sale Securities [Line Items]
Unrealized losses, less than 12 months		(223)	[1]	(3,107)	[2]
Fair value, less than 12 months		50,194		224,520
Unrealized losses, 12 months or greater		(450)	[1]	(695)	[2]
Fair value, 12 months or greater		81,043		48,167
Unrealized losses		(673)	[1]	(3,802)	[2]
Fair value		131,237		272,687
Asset-backed securities
Schedule of Available-for-sale Securities [Line Items]
Unrealized losses, less than 12 months		(539)	[1]	(2,624)	[2]
Fair value, less than 12 months		64,109		311,814
Unrealized losses, 12 months or greater		(359)	[1]	(215)	[2]
Fair value, 12 months or greater		39,770		12,880
Unrealized losses		(898)	[1]	(2,839)	[2]
Fair value		103,879		324,694
Total fixed maturity investments
Schedule of Available-for-sale Securities [Line Items]
Unrealized losses, less than 12 months	[1]	(25,198)
Fair value, less than 12 months		1,568,274
Unrealized losses, 12 months or greater	[1]	(7,660)
Fair value, 12 months or greater		249,603
Unrealized losses	[1]	(32,858)
Fair value		1,817,877
Short-term investments
Schedule of Available-for-sale Securities [Line Items]
Unrealized losses, less than 12 months	[1]	(2)
Fair value, less than 12 months		4,691
Unrealized losses, 12 months or greater	[1]	0
Fair value, 12 months or greater		0
Unrealized losses	[1]	(2)
Fair value		4,691
Total fixed income investments
Schedule of Available-for-sale Securities [Line Items]
Unrealized losses, less than 12 months		(25,200)	[1]	(27,721)	[2]
Fair value, less than 12 months		1,572,965		2,558,411
Unrealized losses, 12 months or greater		(7,660)	[1]	(7,268)	[2]
Fair value, 12 months or greater		249,603		255,002
Unrealized losses		(32,860)	[1]	(34,989)	[2]
Fair value		1,822,568		2,813,413
Equity securities
Schedule of Available-for-sale Securities [Line Items]
Unrealized losses, less than 12 months		(2,857)	[1]	(32,172)	[2]
Fair value, less than 12 months		71,632		336,641
Unrealized losses, 12 months or greater		(1,690)	[1]	(5,453)	[2]
Fair value, 12 months or greater		17,408		56,421
Unrealized losses		(4,547)	[1]	(37,625)	[2]
Fair value		89,040		393,062
Equity investments
Schedule of Available-for-sale Securities [Line Items]
Unrealized losses, less than 12 months		(2,855)	[1]	(32,021)	[2]
Fair value, less than 12 months		71,509		329,280
Unrealized losses, 12 months or greater		(1,690)	[1]	(5,453)	[2]
Fair value, 12 months or greater		17,408		56,421
Unrealized losses		(4,545)	[1]	(37,474)	[2]
Fair value		88,917		385,701
Preferred equity investments
Schedule of Available-for-sale Securities [Line Items]
Unrealized losses, less than 12 months		(2)	[1]	(151)	[2]
Fair value, less than 12 months		123		7,361
Unrealized losses, 12 months or greater		0	[1]	0	[2]
Fair value, 12 months or greater		0		0
Unrealized losses		(2)	[1]	(151)	[2]
Fair value		$ 123		$ 7,361

[1] Gross unrealized losses include unrealized losses on non-OTTI and non-credit OTTI securities recognized in accumulated other comprehensive loss at December 31, 2016.

[2] Gross unrealized losses include unrealized losses on non-OTTI and non-credit OTTI securities recognized in accumulated other comprehensive loss at December 31, 2015.

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Investments Investments (Noncontrolling Interests Rollforward) (Details) - USD ($) $ in Thousands		3 Months Ended								5 Months Ended	12 Months Ended
		Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Noncontrolling Interest [Line Items]
Non-controlling interests, beginning balance					$ 267,810				$ 0	$ 258,529	$ 267,810	$ 0
Net income attributable to non-controlling interests		$ 5,674	$ 5,679	$ 3,714	$ 9,063	$ 8,309	$ 2,707	$ 0	$ 0	11,016	24,130	11,016	$ 0
Net preferred share redemption attributable to third-party investments in the BCGR Cell										20	(19,727)
Non-controlling interests - ending balance		$ 259,694				$ 267,810				267,810	259,694	$ 267,810	$ 0
Blue Capital Reinsurance Holdings [Member]
Noncontrolling Interest [Line Items]
Net income attributable to non-controlling interests										5,490	9,553
Net preferred share redemption attributable to third-party investments in the BCGR Cell										20	72
Dividends declared by BCRH attributable to non-controlling interests										(1,755)	$ (12,519)
Ownership percentage											33.30%
Blue Capital Global Reinsurance Fund [Member]
Noncontrolling Interest [Line Items]
Net income attributable to non-controlling interests										5,526	$ 14,577
Net preferred share redemption attributable to third-party investments in the BCGR Cell	[1]									$ 0	$ (19,799)
Ownership percentage											25.20%
Blue Capital Global Reinsurance Fund [Member] | High
Noncontrolling Interest [Line Items]
Ownership percentage											50.00%

[1] The redemption from the BCGR Cell was required to fund expenses, repay debt and fund dividends by BCGR.

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Fair Value Measurement (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Transfers into Level 3	$ 79,332	$ 131,215
Transfers out of Level 3	(7,267)	(12,405)
Amount of transfers from Level 1 to Level 2	$ 18,400	$ 11,800
Seven Percent Senior Notes [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Senior Notes, stated interest rate	7.00%
Four Point Seven Percent Senior Notes [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Senior Notes, stated interest rate	4.70%
Significant Unobservable Inputs (Level 3)
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Percentage of level 3 assets	3.00%	2.20%
Total fixed maturity investments
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Transfers into Level 3	$ 79,332	$ 131,215
Transfers out of Level 3	$ (7,267)	$ (12,405)

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Fair Value Measurement (Schedule Of Available For Sale Investments, Other Assets And Liabilities, and Debt Measured On A Recurring Basis) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	$ 408,704	$ 419,796
Other assets (see Note 9)	166,716	68,892
Total assets	7,389,382	6,963,681
Other liabilities (see Note 9)	84,069	46,088
Debt	770,704	737,974
Total liabilities	854,773	784,062
Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	0	0
Other assets (see Note 9)	1,953	4
Total assets	238,031	312,831
Other liabilities (see Note 9)	2,772	0
Debt	0	0
Total liabilities	2,772	0
Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	408,654	419,796
Other assets (see Note 9)	123,681	27,385
Total assets	6,930,582	6,496,894
Other liabilities (see Note 9)	55,051	4,059
Debt	770,704	737,974
Total liabilities	825,755	742,033
Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	50	0
Other assets (see Note 9)	41,082	41,503
Total assets	220,769	153,956
Other liabilities (see Note 9)	26,246	42,029
Debt	0	0
Total liabilities	26,246	42,029
U.S. government and agencies securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturity investments	1,001,882	818,468
U.S. government and agencies securities | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturity investments	51,827	37,741
U.S. government and agencies securities | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturity investments	950,055	780,727
U.S. government and agencies securities | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturity investments	0	0
U.S. state and municipal securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturity investments	18,357	22,406
U.S. state and municipal securities | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturity investments	0	0
U.S. state and municipal securities | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturity investments	18,357	22,406
U.S. state and municipal securities | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturity investments	0	0
Foreign government securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturity investments	178,919	160,976
Foreign government securities | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturity investments	0	0
Foreign government securities | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturity investments	178,919	160,976
Foreign government securities | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturity investments	0	0
Government guaranteed corporate securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturity investments	3,917	57,753
Government guaranteed corporate securities | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturity investments	0	0
Government guaranteed corporate securities | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturity investments	3,917	57,753
Government guaranteed corporate securities | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturity investments	0	0
Corporate securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturity investments	2,147,693	1,849,934
Corporate securities | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturity investments	0	0
Corporate securities | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturity investments	1,968,056	1,739,002
Corporate securities | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturity investments	179,637	110,932
Residential mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturity investments	1,461,286	1,311,373
Residential mortgage-backed securities | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturity investments	0	0
Residential mortgage-backed securities | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturity investments	1,461,286	1,311,373
Residential mortgage-backed securities | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturity investments	0	0
Commercial mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturity investments	618,848	812,886
Commercial mortgage-backed securities | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturity investments	0	0
Commercial mortgage-backed securities | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturity investments	618,848	812,174
Commercial mortgage-backed securities | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturity investments	0	712
Collateralized loan and debt obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturity investments	371,256	405,128
Collateralized loan and debt obligations | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturity investments	0	0
Collateralized loan and debt obligations | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturity investments	371,256	404,319
Collateralized loan and debt obligations | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturity investments	0	809
Asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturity investments	510,663	507,255
Asset-backed securities | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturity investments	0	0
Asset-backed securities | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturity investments	510,663	507,255
Asset-backed securities | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturity investments	0	0
Total fixed maturity investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturity investments	6,312,821	5,946,179
Total fixed maturity investments | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturity investments	51,827	37,741
Total fixed maturity investments | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturity investments	6,081,357	5,795,985
Total fixed maturity investments | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturity investments	179,637	112,453
Equity securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total equity securities	501,141	528,814
Equity securities | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total equity securities	184,251	275,086
Equity securities | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total equity securities	316,890	253,728
Equity securities | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total equity securities	0	0
Equity investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total equity securities	500,968	511,191
Equity investments | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total equity securities	184,251	275,086
Equity investments | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total equity securities	316,717	236,105
Equity investments | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total equity securities	0	0
Preferred equity investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total equity securities	173	17,623
Preferred equity investments | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total equity securities	0	0
Preferred equity investments | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total equity securities	173	17,623
Preferred equity investments | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total equity securities	$ 0	$ 0

XML

Fair Value Measurement (Quantative Information Used As Level 3 Inputs) (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($) Category
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Derivatives recorded in other assets, fair value	$ 166,716	$ 68,892
Derivatives recorded in other liabilities, fair value	84,069	46,088
Net weather and energy related derivative liabilities	82,647	22,804
Significant Unobservable Inputs (Level 3)
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Derivatives recorded in other assets, fair value	41,082	41,503
Derivatives recorded in other liabilities, fair value	26,246	42,029
Energy and weather contracts
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Derivatives recorded in other assets, fair value	43,035	41,507
Derivatives recorded in other liabilities, fair value	29,018	42,029
Energy and weather contracts | Significant Unobservable Inputs (Level 3)
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Net weather and energy related derivative liabilities	$ 14,836	$ 526
Valuation Techniques | Low | Energy and weather contracts | Significant Unobservable Inputs (Level 3)
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Correlation	0	0
Fair Value Inputs Temperature	-15F	-15F
Fair Value Inputs Composite Weather Variable	-25 deg.	-25 deg.
Fair Value Inputs Rainfall	0"	0"
Fair Value Inputs Windspeed	0.01 m/s	0.01 m/s
Fair Value Inputs Snowfall		0"
Fair Value Inputs Wave Height	0 m
Commodity curve	$ (1)	$ 0
Valuation Techniques | High | Energy and weather contracts | Significant Unobservable Inputs (Level 3)
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Correlation	1	1
Fair Value Inputs Temperature	115F	115F
Fair Value Inputs Composite Weather Variable	45 deg.	45 deg.
Fair Value Inputs Rainfall	2"	2"
Fair Value Inputs Windspeed	25 m/s	25 m/s
Fair Value Inputs Snowfall		18"
Fair Value Inputs Cyclone Category | Category		5
Fair Value Inputs Wave Height	25 m
Commodity curve	$ 14	$ 13

XML

Fair Value Measurement (Reconciliation Of The Beginning And Ending Balances For All Fixed Maturity Investments Measured At Fair Value On A Recurring Basis Using Level 3) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Level 3, beginning of year	$ 153,956	$ 37,905
Total equity income and losses and realized and unrealized gains and losses included in earnings	4,321	(2,785)
Total income and losses included in other underwriting loss	5,796	(2,951)
Change in unrealized gains and losses included in other comprehensive (loss) income	263	(180)
Purchases	48,572	4,763
Issues	22,571	21,559
Sales	(57,987)	(15,695)
Settlements	(28,788)	(7,470)
Transfers into Level 3	79,332	131,215
Transfers out of Level 3	(7,267)	(12,405)
Level 3, end of year	220,769	153,956
Fixed maturity investments
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Level 3, beginning of year	112,453	12,290
Total equity income and losses and realized and unrealized gains and losses included in earnings	4,321	(2,785)
Total income and losses included in other underwriting loss	0	0
Change in unrealized gains and losses included in other comprehensive (loss) income	263	(180)
Purchases	48,572	13
Issues	0	0
Sales	(57,987)	(15,695)
Settlements	0	0
Transfers into Level 3	79,332	131,215
Transfers out of Level 3	(7,267)	(12,405)
Level 3, end of year	179,687	112,453
Other assets
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Level 3, beginning of year	41,503	25,615
Total equity income and losses and realized and unrealized gains and losses included in earnings	0	0
Total income and losses included in other underwriting loss	5,796	(2,951)
Change in unrealized gains and losses included in other comprehensive (loss) income	0	0
Purchases	0	4,750
Issues	22,571	21,559
Sales	0	0
Settlements	(28,788)	(7,470)
Transfers into Level 3	0	0
Transfers out of Level 3	0	0
Level 3, end of year	41,082	41,503
Other liabilities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Level 3, beginning of year	(42,029)	(35,366)
Total equity income and losses and realized and unrealized gains and losses included in earnings	0	0
Total income and losses included in other underwriting loss	90	5,062
Change in unrealized gains and losses included in other comprehensive (loss) income	0	0
Purchases	0	(4,231)
Issues	(34,219)	(34,114)
Sales	0	0
Settlements	49,912	26,620
Transfers into Level 3	0	0
Transfers out of Level 3	0	0
Level 3, end of year	$ (26,246)	$ (42,029)

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Reserve For Losses And Loss Expenses (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Liability for Claims and Claims Adjustment Expense [Line Items]
Incurred related to Prior years	$ (221,550)	$ (243,464)	$ (233,815)
Proportional Reinsurance Contracts
Liability for Claims and Claims Adjustment Expense [Line Items]
IBNR reserves	700,000
Reinsurance
Liability for Claims and Claims Adjustment Expense [Line Items]
Incurred related to Prior years	144,400	161,500	153,200
Insurance
Liability for Claims and Claims Adjustment Expense [Line Items]
Incurred related to Prior years	$ 77,100	$ 82,000	$ 80,600

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Reserve For Losses And Loss Expenses ( Activity in Reserve For Losses And Loss Expenses) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Insurance Loss Reserves [Abstract]
Gross reserve for losses and loss expenses, January 1	$ 4,510,415	$ 3,846,859	$ 4,002,259
Reinsurance recoverable on unpaid losses	907,944	670,795	593,755
Net reserve for losses and loss expenses, January 1	3,602,471	3,176,064	3,408,504
Incurred related to Current year	1,542,602	1,160,572	1,203,977
Incurred related to Prior years	(221,550)	(243,464)	(233,815)
Total incurred	1,321,052	917,108	970,162
Paid related to Current year	(295,863)	(265,898)	(439,169)
Paid related to Prior years	(890,027)	(867,739)	(719,043)
Total paid	(1,185,890)	(1,133,637)	(1,158,212)
Amounts acquired(1)	0	675,019	0
Foreign currency translation and other	(45,624)	(32,083)	(44,390)
Net reserve for losses and loss expenses, December 31	3,692,009	3,602,471	3,176,064
Reinsurance recoverable on unpaid losses	1,213,129	907,944	670,795
Gross reserve for losses and loss expenses, December 31	$ 4,905,138	$ 4,510,415	$ 3,846,859

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Reserve For Losses And Loss Expenses (Claims Development - Insurance) (Details) $ in Thousands	Dec. 31, 2016 USD ($) Claims	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)	Dec. 31, 2012 USD ($)	Dec. 31, 2011 USD ($)	Dec. 31, 2010 USD ($)	Dec. 31, 2009 USD ($)	Dec. 31, 2008 USD ($)	Dec. 31, 2007 USD ($)
Claims Development [Line Items]
Net reserve for losses and loss expenses	$ 3,692,009
Insurance | Agriculture
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	3,396,041
Cumulative paid	3,264,986
Net reserve for losses and loss expenses	131,055
Insurance | Agriculture | 2007
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0
Cumulative paid	0	0	0	0	0	0	0	0	0	0
IBNR reserves	$ 0
Cumulative number of reported claims | Claims	0
Insurance | Agriculture | 2008
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 313,834	313,834	313,834	313,938	313,814	313,800	313,296	318,709	333,380
Cumulative paid	313,834	313,834	313,834	313,859	313,722	313,708	313,196	310,235	239,498
IBNR reserves	$ 0
Cumulative number of reported claims | Claims	30,036
Insurance | Agriculture | 2009
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 281,365	281,365	281,365	281,594	281,667	280,798	284,277	298,914
Cumulative paid	281,365	281,365	281,365	281,058	280,991	280,468	281,996	178,206
IBNR reserves	$ 0
Cumulative number of reported claims | Claims	26,540
Insurance | Agriculture | 2010
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 280,008	280,008	280,008	280,166	280,409	280,330	305,131
Cumulative paid	280,008	280,008	280,008	279,859	279,768	279,397	144,296
IBNR reserves	$ 0
Cumulative number of reported claims | Claims	18,331
Insurance | Agriculture | 2011
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 507,847	507,847	507,930	508,424	509,531	520,388
Cumulative paid	507,847	507,847	507,918	507,790	506,905	461,335
IBNR reserves	$ 0
Cumulative number of reported claims | Claims	37,061
Insurance | Agriculture | 2012
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 572,469	572,995	573,376	576,836	581,455
Cumulative paid	572,469	572,995	572,885	573,781	478,797
IBNR reserves	$ 0
Cumulative number of reported claims | Claims	38,297
Insurance | Agriculture | 2013
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 562,826	562,122	563,158	566,483
Cumulative paid	561,652	562,075	562,046	438,034
IBNR reserves	$ 0
Cumulative number of reported claims | Claims	44,138
Insurance | Agriculture | 2014
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 449,705	451,843	451,710
Cumulative paid	449,705	448,046	352,202
IBNR reserves	$ 0
Cumulative number of reported claims | Claims	53,886
Insurance | Agriculture | 2015
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 227,634	241,501
Cumulative paid	222,212	122,696
IBNR reserves	$ 0
Cumulative number of reported claims | Claims	39,508
Insurance | Agriculture | 2016
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 200,353
Cumulative paid	75,894
IBNR reserves	$ 20,453
Cumulative number of reported claims | Claims	29,353
Insurance | Casualty and other specialty
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 1,894,408
Cumulative paid	1,086,876
Reserve for losses and loss expenses from accident year 2006 and prior, net of reinsurance	30,599
Adjustment for unallocated claim expenses	43,666
Net reserve for losses and loss expenses	881,797
Insurance | Casualty and other specialty | 2007
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	191,927	196,072	197,246	213,895	235,482	232,186	232,156	228,021	251,840	254,678
Cumulative paid	163,236	159,687	152,297	144,982	139,923	124,887	103,283	66,865	38,777	9,090
IBNR reserves	$ 20,274
Cumulative number of reported claims | Claims	988
Insurance | Casualty and other specialty | 2008
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 312,759	328,153	339,927	347,477	363,094	366,479	333,844	296,079	285,334
Cumulative paid	266,264	261,201	255,585	239,185	200,021	169,331	129,840	82,811	36,479
IBNR reserves	$ 35,706
Cumulative number of reported claims | Claims	1,602
Insurance | Casualty and other specialty | 2009
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 206,077	218,900	230,594	234,983	237,101	237,368	240,235	198,689
Cumulative paid	168,351	160,903	150,241	139,011	103,922	83,210	50,815	15,098
IBNR reserves	$ 24,553
Cumulative number of reported claims | Claims	2,509
Insurance | Casualty and other specialty | 2010
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 122,748	135,214	160,450	175,922	179,208	179,854	150,636
Cumulative paid	96,785	88,737	83,634	64,917	27,379	4,279	863
IBNR reserves	$ 19,995
Cumulative number of reported claims | Claims	2,738
Insurance | Casualty and other specialty | 2011
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 186,588	201,355	226,274	222,470	169,803	151,344
Cumulative paid	97,285	91,817	54,598	30,074	14,468	3,279
IBNR reserves	$ 48,836
Cumulative number of reported claims | Claims	4,319
Insurance | Casualty and other specialty | 2012
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 179,929	183,644	187,141	182,924	164,568
Cumulative paid	75,508	51,381	32,686	16,190	3,707
IBNR reserves	$ 73,724
Cumulative number of reported claims | Claims	6,268
Insurance | Casualty and other specialty | 2013
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 230,081	205,041	165,853	153,377
Cumulative paid	119,524	89,771	15,581	3,145
IBNR reserves	$ 81,540
Cumulative number of reported claims | Claims	6,790
Insurance | Casualty and other specialty | 2014
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 141,970	132,184	120,226
Cumulative paid	36,446	18,914	3,389
IBNR reserves	$ 84,031
Cumulative number of reported claims | Claims	7,969
Insurance | Casualty and other specialty | 2015
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 156,771	145,828
Cumulative paid	49,196	18,426
IBNR reserves	$ 77,472
Cumulative number of reported claims | Claims	8,717
Insurance | Casualty and other specialty | 2016
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 165,558
Cumulative paid	14,281
IBNR reserves	$ 137,608
Cumulative number of reported claims | Claims	5,305
Insurance | Professional lines
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 924,788
Cumulative paid	545,066
Reserve for losses and loss expenses from accident year 2006 and prior, net of reinsurance	61
Adjustment for unallocated claim expenses	26,477
Net reserve for losses and loss expenses	406,260
Insurance | Professional lines | 2007
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	122,969	125,496	116,711	113,520	117,895	119,243	120,358	150,972	110,525	52,739
Cumulative paid	122,867	120,328	110,254	100,693	100,560	90,128	62,321	1,744	987	83
IBNR reserves	$ 47
Cumulative number of reported claims | Claims	232
Insurance | Professional lines | 2008
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 164,412	138,119	127,641	109,471	96,887	88,047	83,358	62,586	62,838
Cumulative paid	113,175	98,770	72,576	48,997	16,613	15,888	14,027	1,898	54
IBNR reserves	$ 3,932
Cumulative number of reported claims | Claims	379
Insurance | Professional lines | 2009
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 93,803	92,165	99,973	109,441	106,597	104,421	118,432	100,914
Cumulative paid	80,201	77,628	73,072	56,126	38,000	32,193	8,755	1,045
IBNR reserves	$ 5,728
Cumulative number of reported claims | Claims	1,039
Insurance | Professional lines | 2010
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 69,387	74,856	82,421	92,931	101,591	105,611	108,369
Cumulative paid	51,885	48,978	46,982	36,506	27,557	16,014	1,932
IBNR reserves	$ 9,860
Cumulative number of reported claims | Claims	1,594
Insurance | Professional lines | 2011
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 105,619	98,989	79,988	99,466	98,353	102,012
Cumulative paid	85,003	71,782	33,639	21,266	11,766	2,367
IBNR reserves	$ 15,265
Cumulative number of reported claims | Claims	1,232
Insurance | Professional lines | 2012
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 69,333	79,591	101,426	103,358	101,872
Cumulative paid	35,678	29,854	22,237	13,185	2,582
IBNR reserves	$ 18,080
Cumulative number of reported claims | Claims	1,233
Insurance | Professional lines | 2013
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 61,499	70,564	79,732	78,988
Cumulative paid	26,783	21,289	13,807	2,193
IBNR reserves	$ 27,377
Cumulative number of reported claims | Claims	1,255
Insurance | Professional lines | 2014
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 57,446	66,524	64,437
Cumulative paid	20,020	7,081	1,167
IBNR reserves	$ 29,232
Cumulative number of reported claims | Claims	2,599
Insurance | Professional lines | 2015
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 72,559	74,823
Cumulative paid	7,130	1,243
IBNR reserves	$ 58,966
Cumulative number of reported claims | Claims	3,464
Insurance | Professional lines | 2016
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 107,761
Cumulative paid	2,324
IBNR reserves	$ 99,005
Cumulative number of reported claims | Claims	3,814
Insurance | Property, marine/energy and aviation
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 1,029,879
Cumulative paid	763,341
Reserve for losses and loss expenses from accident year 2006 and prior, net of reinsurance	3
Adjustment for unallocated claim expenses	7,855
Net reserve for losses and loss expenses	274,396
Insurance | Property, marine/energy and aviation | 2007
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	32,680	34,083	33,741	33,206	28,925	29,071	28,766	25,714	32,772	45,128
Cumulative paid	32,671	34,084	33,546	32,561	23,780	23,482	22,614	21,987	19,644	$ 10,626
IBNR reserves	$ 0
Cumulative number of reported claims | Claims	201
Insurance | Property, marine/energy and aviation | 2008
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 77,373	78,178	78,176	80,158	84,093	74,111	84,425	104,626	113,427
Cumulative paid	77,239	77,910	77,234	75,042	75,187	64,434	62,922	57,685	$ 40,140
IBNR reserves	$ 13
Cumulative number of reported claims | Claims	459
Insurance | Property, marine/energy and aviation | 2009
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 19,341	19,780	19,423	19,933	21,225	23,651	48,196	60,589
Cumulative paid	19,261	19,407	19,075	18,887	18,657	18,120	16,967	$ 11,014
IBNR reserves	$ 33
Cumulative number of reported claims | Claims	568
Insurance | Property, marine/energy and aviation | 2010
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 43,240	42,202	41,703	42,918	48,033	54,986	93,741
Cumulative paid	41,802	40,782	38,880	36,306	33,938	29,150	$ 11,680
IBNR reserves	$ 992
Cumulative number of reported claims | Claims	1,423
Insurance | Property, marine/energy and aviation | 2011
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 133,297	127,840	124,243	125,588	139,932	163,234
Cumulative paid	123,496	117,337	103,301	82,967	63,710	$ 17,871
IBNR reserves	$ 256
Cumulative number of reported claims | Claims	2,486
Insurance | Property, marine/energy and aviation | 2012
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 121,873	121,281	123,134	137,329	172,535
Cumulative paid	108,983	102,447	87,216	79,533	$ 18,709
IBNR reserves	$ 405
Cumulative number of reported claims | Claims	2,704
Insurance | Property, marine/energy and aviation | 2013
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 80,971	85,794	101,878	115,600
Cumulative paid	71,423	66,851	57,243	$ 20,929
IBNR reserves	$ 3,933
Cumulative number of reported claims | Claims	3,145
Insurance | Property, marine/energy and aviation | 2014
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 102,002	114,243	136,748
Cumulative paid	79,321	60,418	$ 26,491
IBNR reserves	$ 7,588
Cumulative number of reported claims | Claims	4,405
Insurance | Property, marine/energy and aviation | 2015
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 184,867	183,192
Cumulative paid	131,697	$ 52,121
IBNR reserves	$ 18,890
Cumulative number of reported claims | Claims	6,281
Insurance | Property, marine/energy and aviation | 2016
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 234,235
Cumulative paid	77,448
IBNR reserves	$ 72,271
Cumulative number of reported claims | Claims	6,600

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Reserve For Losses And Loss Expenses (Claims Development - Reinsurance) (Details) $ in Thousands	Dec. 31, 2016 USD ($) Claims	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)	Dec. 31, 2012 USD ($)	Dec. 31, 2011 USD ($)	Dec. 31, 2010 USD ($)	Dec. 31, 2009 USD ($)	Dec. 31, 2008 USD ($)	Dec. 31, 2007 USD ($)
Claims Development [Line Items]
Net reserve for losses and loss expenses	$ 3,692,009
Reinsurance | Catastrophe
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	1,980,477
Cumulative paid	1,813,145
Reserve for losses and loss expenses from accident year 2006 and prior, net of reinsurance	91
Adjustment for unallocated claim expenses	3,002
Net reserve for losses and loss expenses	170,425
Reinsurance | Catastrophe | 2007
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	102,929	$ 97,851	$ 90,379	$ 86,273	$ 88,252	$ 91,502	$ 102,855	$ 104,527	$ 126,561	$ 168,640
Cumulative paid	102,497	97,279	88,684	80,852	82,285	83,511	91,214	87,267	85,271	31,590
IBNR reserves	$ 153
Cumulative number of reported claims | Claims	192
Reinsurance | Catastrophe | 2008
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 381,551	384,864	382,068	382,382	384,117	392,668	389,111	378,838	405,190
Cumulative paid	380,409	382,431	380,366	378,322	375,455	353,658	316,023	255,721	154,382
IBNR reserves	$ 317
Cumulative number of reported claims | Claims	336
Reinsurance | Catastrophe | 2009
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 60,788	58,910	56,944	55,229	55,933	59,051	74,817	102,411
Cumulative paid	59,865	57,551	54,189	51,013	49,847	48,440	45,763	26,869
IBNR reserves	$ 559
Cumulative number of reported claims | Claims	204
Reinsurance | Catastrophe | 2010
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 224,323	237,677	231,531	226,208	226,060	234,576	272,094
Cumulative paid	208,329	207,716	193,340	173,341	152,264	124,322	58,556
IBNR reserves	$ 1,394
Cumulative number of reported claims | Claims	265
Reinsurance | Catastrophe | 2011
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 624,448	612,274	603,680	589,614	591,965	622,350
Cumulative paid	615,504	593,831	561,864	495,351	385,304	230,619
IBNR reserves	$ 4,640
Cumulative number of reported claims | Claims	574
Reinsurance | Catastrophe | 2012
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 151,003	154,240	163,109	180,145	245,011
Cumulative paid	136,862	134,288	126,802	105,745	56,614
IBNR reserves	$ 3,884
Cumulative number of reported claims | Claims	345
Reinsurance | Catastrophe | 2013
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 124,311	127,984	129,469	157,097
Cumulative paid	116,996	106,983	83,259	34,236
IBNR reserves	$ 1,454
Cumulative number of reported claims | Claims	315
Reinsurance | Catastrophe | 2014
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 126,512	126,822	141,173
Cumulative paid	117,040	107,546	49,337
IBNR reserves	$ 3,156
Cumulative number of reported claims | Claims	229
Reinsurance | Catastrophe | 2015
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 47,255	60,465
Cumulative paid	31,850	20,084
IBNR reserves	$ 4,057
Cumulative number of reported claims | Claims	224
Reinsurance | Catastrophe | 2016
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 137,357
Cumulative paid	43,793
IBNR reserves	$ 27,654
Cumulative number of reported claims | Claims	216
Reinsurance | Property
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 1,852,608
Cumulative paid	1,542,984
Reserve for losses and loss expenses from accident year 2006 and prior, net of reinsurance	4,954
Adjustment for unallocated claim expenses	4,301
Net reserve for losses and loss expenses	318,879
Reinsurance | Property | 2007
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	117,706	121,902	121,653	119,773	115,947	116,552	120,598	127,294	137,474	123,502
Cumulative paid	116,680	120,881	119,203	116,499	112,559	111,155	111,825	103,059	71,828	23,678
IBNR reserves	$ 2
Cumulative number of reported claims | Claims	309
Reinsurance | Property | 2008
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 122,943	125,622	126,991	126,887	124,861	123,162	133,022	151,764	173,437
Cumulative paid	121,472	123,954	122,512	118,745	110,039	107,291	104,279	79,457	30,553
IBNR reserves	$ 3
Cumulative number of reported claims | Claims	612
Reinsurance | Property | 2009
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 111,782	115,213	115,111	114,342	114,137	116,114	123,151	151,371
Cumulative paid	107,609	109,796	107,021	103,688	97,377	89,940	71,123	27,690
IBNR reserves	$ 114
Cumulative number of reported claims | Claims	991
Reinsurance | Property | 2010
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 174,952	188,304	188,516	186,817	190,322	216,726	221,480
Cumulative paid	170,367	180,555	175,919	163,173	141,348	117,260	49,442
IBNR reserves	$ 419
Cumulative number of reported claims | Claims	1,126
Reinsurance | Property | 2011
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 335,228	305,567	312,278	312,365	334,865	344,015
Cumulative paid	326,570	291,961	286,065	254,657	172,679	76,880
IBNR reserves	$ 2,089
Cumulative number of reported claims | Claims	942
Reinsurance | Property | 2012
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 244,651	240,070	240,928	259,753	314,924
Cumulative paid	230,684	214,711	192,022	146,671	53,488
IBNR reserves	$ 2,224
Cumulative number of reported claims | Claims	813
Reinsurance | Property | 2013
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 199,195	217,661	239,844	255,632
Cumulative paid	176,721	173,888	138,841	55,668
IBNR reserves	$ 5,650
Cumulative number of reported claims | Claims	1,017
Reinsurance | Property | 2014
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 197,761	211,888	211,769
Cumulative paid	158,766	134,663	51,635
IBNR reserves	$ 11,702
Cumulative number of reported claims | Claims	1,060
Reinsurance | Property | 2015
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 181,761	184,586
Cumulative paid	100,328	37,685
IBNR reserves	$ 16,927
Cumulative number of reported claims | Claims	880
Reinsurance | Property | 2016
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 166,629
Cumulative paid	33,787
IBNR reserves	$ 55,289
Cumulative number of reported claims | Claims	542
Reinsurance | Casualty
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 1,397,900
Cumulative paid	783,362
Reserve for losses and loss expenses from accident year 2006 and prior, net of reinsurance	106,483
Adjustment for unallocated claim expenses	10,637
Net reserve for losses and loss expenses	731,658
Reinsurance | Casualty | 2007
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	112,366	110,369	111,664	112,945	114,484	115,024	120,815	116,095	116,074	108,468
Cumulative paid	87,170	77,378	73,518	64,711	57,254	48,519	35,928	23,890	13,399	3,009
IBNR reserves	$ 13,382
Cumulative number of reported claims | Claims	549
Reinsurance | Casualty | 2008
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 93,732	97,260	98,504	101,613	107,336	114,790	116,204	118,736	112,680
Cumulative paid	75,906	72,592	67,856	58,419	51,831	43,923	30,528	17,338	8,475
IBNR reserves	$ 9,538
Cumulative number of reported claims | Claims	406
Reinsurance | Casualty | 2009
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 114,901	115,317	121,969	126,505	127,972	124,218	126,969	116,515
Cumulative paid	83,892	76,463	70,558	61,615	51,576	34,770	21,841	7,367
IBNR reserves	$ 20,438
Cumulative number of reported claims | Claims	433
Reinsurance | Casualty | 2010
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 159,409	160,142	172,699	170,938	176,073	179,891	186,667
Cumulative paid	114,875	104,037	92,382	75,290	56,997	34,469	14,826
IBNR reserves	$ 27,794
Cumulative number of reported claims | Claims	506
Reinsurance | Casualty | 2011
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 196,946	195,094	204,187	197,138	199,035	198,159
Cumulative paid	141,449	116,519	104,394	77,748	50,998	28,035
IBNR reserves	$ 35,929
Cumulative number of reported claims | Claims	604
Reinsurance | Casualty | 2012
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 174,625	183,512	193,164	191,436	195,983
Cumulative paid	105,209	92,072	75,456	54,457	30,667
IBNR reserves	$ 42,134
Cumulative number of reported claims | Claims	701
Reinsurance | Casualty | 2013
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 163,986	170,144	172,604	178,401
Cumulative paid	71,677	56,564	35,808	18,577
IBNR reserves	$ 62,188
Cumulative number of reported claims | Claims	842
Reinsurance | Casualty | 2014
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 119,143	120,521	125,515
Cumulative paid	49,951	33,215	10,390
IBNR reserves	$ 45,271
Cumulative number of reported claims | Claims	615
Reinsurance | Casualty | 2015
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 119,529	119,276
Cumulative paid	34,396	15,817
IBNR reserves	$ 58,182
Cumulative number of reported claims | Claims	250
Reinsurance | Casualty | 2016
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 143,263
Cumulative paid	18,837
IBNR reserves	$ 106,858
Cumulative number of reported claims | Claims	127
Reinsurance | Professional lines
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 634,368
Cumulative paid	221,349
Reserve for losses and loss expenses from accident year 2006 and prior, net of reinsurance	5,540
Adjustment for unallocated claim expenses	6,164
Net reserve for losses and loss expenses	424,723
Reinsurance | Professional lines | 2007
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	37,980	41,989	42,115	43,261	41,037	41,956	43,988	49,539	51,283	46,031
Cumulative paid	32,771	33,144	30,796	28,121	21,259	16,764	10,694	5,649	2,310	144
IBNR reserves	$ 1,539
Cumulative number of reported claims | Claims	310
Reinsurance | Professional lines | 2008
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 39,059	41,599	42,863	44,526	47,084	44,672	47,154	50,276	41,797
Cumulative paid	33,434	32,873	30,169	26,811	22,496	12,752	6,200	2,156	341
IBNR reserves	$ 1,171
Cumulative number of reported claims | Claims	262
Reinsurance | Professional lines | 2009
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 38,720	36,474	36,560	35,771	40,763	41,681	43,003	41,430
Cumulative paid	32,329	27,039	23,469	19,184	15,666	7,963	3,330	1,033
IBNR reserves	$ 2,098
Cumulative number of reported claims | Claims	204
Reinsurance | Professional lines | 2010
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 45,024	46,661	53,825	62,185	67,335	58,567	58,153
Cumulative paid	36,181	36,100	31,313	24,511	14,481	7,348	2,249
IBNR reserves	$ 3,733
Cumulative number of reported claims | Claims	110
Reinsurance | Professional lines | 2011
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 31,390	36,691	44,921	55,286	56,535	55,812
Cumulative paid	22,142	20,124	15,168	9,405	4,943	1,685
IBNR reserves	$ 4,828
Cumulative number of reported claims | Claims	57
Reinsurance | Professional lines | 2012
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 30,576	36,707	43,426	42,443	43,519
Cumulative paid	13,757	9,147	4,204	1,929	965
IBNR reserves	$ 5,803
Cumulative number of reported claims | Claims	81
Reinsurance | Professional lines | 2013
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 41,403	45,382	49,513	48,933
Cumulative paid	11,636	6,694	2,561	997
IBNR reserves	$ 21,619
Cumulative number of reported claims | Claims	48
Reinsurance | Professional lines | 2014
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 90,713	88,915	91,943
Cumulative paid	22,822	6,446	1,149
IBNR reserves	$ 50,367
Cumulative number of reported claims | Claims	62
Reinsurance | Professional lines | 2015
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 130,832	130,595
Cumulative paid	14,357	2,941
IBNR reserves	$ 99,261
Cumulative number of reported claims | Claims	55
Reinsurance | Professional lines | 2016
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 148,671
Cumulative paid	1,920
IBNR reserves	$ 139,857
Cumulative number of reported claims | Claims	10
Reinsurance | Specialty
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 1,052,826
Cumulative paid	730,394
Reserve for losses and loss expenses from accident year 2006 and prior, net of reinsurance	24,265
Adjustment for unallocated claim expenses	6,119
Net reserve for losses and loss expenses	352,816
Reinsurance | Specialty | 2007
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	174,205	183,044	185,743	187,949	187,961	189,577	193,084	197,905	202,655	229,505
Cumulative paid	169,673	177,082	175,948	174,059	169,797	160,113	153,622	143,800	123,632	$ 16,023
IBNR reserves	$ 435
Cumulative number of reported claims | Claims	288
Reinsurance | Specialty | 2008
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 67,604	73,745	75,348	77,556	79,052	79,903	92,039	94,050	125,389
Cumulative paid	61,384	65,005	64,489	61,915	58,971	52,461	47,410	38,261	$ 15,525
IBNR reserves	$ 3,549
Cumulative number of reported claims | Claims	195
Reinsurance | Specialty | 2009
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 62,501	62,834	65,333	67,605	69,691	73,387	81,269	98,431
Cumulative paid	55,068	52,635	52,481	47,556	43,804	39,439	33,142	$ 13,286
IBNR reserves	$ 4,414
Cumulative number of reported claims | Claims	170
Reinsurance | Specialty | 2010
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 82,937	84,817	85,252	86,949	97,718	107,630	123,741
Cumulative paid	74,797	72,072	68,915	64,199	57,822	48,043	$ 15,110
IBNR reserves	$ 1,856
Cumulative number of reported claims | Claims	218
Reinsurance | Specialty | 2011
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 82,014	82,984	82,514	86,832	100,639	111,517
Cumulative paid	75,760	73,730	68,869	61,019	44,494	$ 22,755
IBNR reserves	$ 2,565
Cumulative number of reported claims | Claims	274
Reinsurance | Specialty | 2012
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 85,852	92,162	99,700	111,813	135,448
Cumulative paid	74,517	72,510	64,242	53,695	$ 29,756
IBNR reserves	$ 5,174
Cumulative number of reported claims | Claims	294
Reinsurance | Specialty | 2013
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 83,806	92,119	93,335	103,014
Cumulative paid	62,458	52,015	37,621	$ 14,696
IBNR reserves	$ 9,865
Cumulative number of reported claims | Claims	329
Reinsurance | Specialty | 2014
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 108,392	116,642	120,335
Cumulative paid	66,813	49,847	$ 23,579
IBNR reserves	$ 19,693
Cumulative number of reported claims | Claims	342
Reinsurance | Specialty | 2015
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 149,473	150,288
Cumulative paid	70,659	$ 18,994
IBNR reserves	$ 35,118
Cumulative number of reported claims | Claims	318
Reinsurance | Specialty | 2016
Claims Development [Line Items]
Incurred claims and allocated claim adjustment expenses, net of reinsurance	$ 156,042
Cumulative paid	19,265
IBNR reserves	$ 111,660
Cumulative number of reported claims | Claims	134

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Reserve For Losses And Loss Expenses (Reconciliation of Claims Development) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items]
Net reserve for losses and loss expenses	$ 3,692,009
Reinsurance recoverable on unpaid losses	1,213,129	$ 907,944	$ 670,795	$ 593,755
Reserve for losses and loss expenses	4,905,138	4,510,415	3,846,859	$ 4,002,259
Insurance
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items]
Reserve for losses and loss expenses	2,798,989	2,493,894	2,123,772
Insurance | Agriculture
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items]
Net reserve for losses and loss expenses	131,055
Reinsurance recoverable on unpaid losses	116,832
Reserve for losses and loss expenses	247,887
Insurance | Casualty and other specialty
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items]
Net reserve for losses and loss expenses	881,797
Reinsurance recoverable on unpaid losses	490,447
Reserve for losses and loss expenses	1,372,244
Insurance | Professional lines
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items]
Net reserve for losses and loss expenses	406,260
Reinsurance recoverable on unpaid losses	305,114
Reserve for losses and loss expenses	711,374
Insurance | Property, marine/energy and aviation
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items]
Net reserve for losses and loss expenses	274,396
Reinsurance recoverable on unpaid losses	193,088
Reserve for losses and loss expenses	467,484
Reinsurance
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items]
Reserve for losses and loss expenses	2,106,149	$ 2,016,521	$ 1,723,087
Reinsurance | Catastrophe
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items]
Net reserve for losses and loss expenses	170,425
Reinsurance recoverable on unpaid losses	39,419
Reserve for losses and loss expenses	209,844
Reinsurance | Property
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items]
Net reserve for losses and loss expenses	318,879
Reinsurance recoverable on unpaid losses	1,466
Reserve for losses and loss expenses	320,345
Reinsurance | Casualty
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items]
Net reserve for losses and loss expenses	731,658
Reinsurance recoverable on unpaid losses	1,175
Reserve for losses and loss expenses	732,833
Reinsurance | Professional lines
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items]
Net reserve for losses and loss expenses	424,723
Reinsurance recoverable on unpaid losses	449
Reserve for losses and loss expenses	425,172
Reinsurance | Specialty
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items]
Net reserve for losses and loss expenses	352,816
Reinsurance recoverable on unpaid losses	65,139
Reserve for losses and loss expenses	$ 417,955

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Reserve For Losses And Loss Expenses (Claims Duration) (Details)	Dec. 31, 2016
Insurance | Agriculture
Short-duration Insurance Contracts, Historical Claims Duration [Line Items]
Year 1	73.30%
Year 2	24.10%
Year 3	0.10%
Year 4	0.30%
Year 5	0.00%
Year 6	0.00%
Year 7	0.00%
Year 8	0.00%
Year 9	0.00%
Year 10	0.00%
Insurance | Casualty and other specialty
Short-duration Insurance Contracts, Historical Claims Duration [Line Items]
Year 1	5.50%
Year 2	11.30%
Year 3	15.50%
Year 4	15.10%
Year 5	12.80%
Year 6	7.10%
Year 7	4.50%
Year 8	2.70%
Year 9	3.70%
Year 10	1.40%
Insurance | Professional lines
Short-duration Insurance Contracts, Historical Claims Duration [Line Items]
Year 1	1.50%
Year 2	7.80%
Year 3	11.00%
Year 4	14.30%
Year 5	15.00%
Year 6	14.40%
Year 7	10.30%
Year 8	8.90%
Year 9	8.30%
Year 10	7.20%
Insurance | Property, marine/energy and aviation
Short-duration Insurance Contracts, Historical Claims Duration [Line Items]
Year 1	24.40%
Year 2	39.30%
Year 3	18.00%
Year 4	9.90%
Year 5	4.30%
Year 6	2.10%
Year 7	3.20%
Year 8	0.40%
Year 9	1.10%
Year 10	0.20%
Reinsurance | Catastrophe
Short-duration Insurance Contracts, Historical Claims Duration [Line Items]
Year 1	32.40%
Year 2	36.10%
Year 3	15.40%
Year 4	7.60%
Year 5	3.40%
Year 6	1.70%
Year 7	0.20%
Year 8	0.30%
Year 9	1.30%
Year 10	1.00%
Reinsurance | Property
Short-duration Insurance Contracts, Historical Claims Duration [Line Items]
Year 1	24.10%
Year 2	39.40%
Year 3	19.50%
Year 4	6.50%
Year 5	3.50%
Year 6	2.70%
Year 7	0.50%
Year 8	0.90%
Year 9	0.90%
Year 10	0.30%
Reinsurance | Casualty
Short-duration Insurance Contracts, Historical Claims Duration [Line Items]
Year 1	9.20%
Year 2	12.60%
Year 3	12.70%
Year 4	11.90%
Year 5	9.90%
Year 6	8.20%
Year 7	6.30%
Year 8	5.50%
Year 9	4.40%
Year 10	3.20%
Reinsurance | Professional lines
Short-duration Insurance Contracts, Historical Claims Duration [Line Items]
Year 1	1.90%
Year 2	6.70%
Year 3	12.10%
Year 4	18.50%
Year 5	16.90%
Year 6	12.20%
Year 7	8.20%
Year 8	6.40%
Year 9	4.30%
Year 10	3.30%
Reinsurance | Specialty
Short-duration Insurance Contracts, Historical Claims Duration [Line Items]
Year 1	13.90%
Year 2	37.70%
Year 3	20.60%
Year 4	7.00%
Year 5	7.60%
Year 6	4.60%
Year 7	2.20%
Year 8	3.10%
Year 9	0.60%
Year 10	0.00%

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Reinsurance (Narrative) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Reinsurance Disclosures [Abstract]
Ceded losses	$ 824.3	$ 833.7	$ 575.7

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Reinsurance (Effects Of Reinsurance On Premiums Earned And Written) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Reinsurance Disclosures [Abstract]
Direct premiums earned									$ 2,336,314	$ 1,938,830	$ 1,521,648
Assumed premiums earned									1,635,379	1,331,831	1,132,370
Ceded premiums earned									(1,608,033)	(1,292,208)	(790,040)
Net premiums earned	$ 600,705	$ 610,156	$ 599,608	$ 553,191	$ 573,456	$ 557,003	$ 458,135	$ 389,859	2,363,660	1,978,453	1,863,978
Direct premiums written									2,570,494	2,085,901	1,716,128
Assumed premiums written									1,631,676	1,234,960	1,177,948
Ceded premiums written									(1,832,235)	(1,370,391)	(959,870)
Net premiums written									$ 2,369,935	$ 1,950,470	$ 1,934,206

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Reinsurance (Losses Recoverable On Paid And Unpaid Losses By Rating) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Ceded Credit Risk [Line Items]
Reinsurance Recoverables	$ 1,486,918	$ 1,195,970
Collateralized [Member]
Ceded Credit Risk [Line Items]
Reinsurance Recoverables	493,300	321,500
U.S. Government sponsored program
Ceded Credit Risk [Line Items]
Reinsurance Recoverables	141,443	234,596
A plus and above
Ceded Credit Risk [Line Items]
Reinsurance Recoverables	889,814	458,255
A
Ceded Credit Risk [Line Items]
Reinsurance Recoverables	397,691	476,184
A-
Ceded Credit Risk [Line Items]
Reinsurance Recoverables	5,805	7,060
Not rated
Ceded Credit Risk [Line Items]
Reinsurance Recoverables	$ 52,165	$ 19,875

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Debt And Financing Arrangements (Credit Facility) (Details) - USD ($) $ in Thousands		12 Months Ended
	Mar. 23, 2016	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Apr. 19, 2012
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 450,000				$ 700,000
Amount outstanding under credit facility		$ 0	$ 0
Amount of letters of credit outstanding		$ 222,300	341,600
Line Of Credit Facility Used Capacity Commitment Fee Percentage		0.40%
Line of Credit Facility, Commitment Fee Percentage		0.125%
Aggregate interest payments		$ 42,700	40,500	$ 40,400
High
Line of Credit Facility [Line Items]
Leverage ratio		35.00%
Credit Facility [Member]
Line of Credit Facility [Line Items]
Term of facility	5 years
Amount of letters of credit outstanding		$ 199,800	329,900
Increase to credit facility		100,000
LOC Agreements [Member]
Line of Credit Facility [Line Items]
Amount of letters of credit outstanding		$ 22,500	$ 11,700
LOC Agreements [Member] | Low
Line of Credit Facility [Line Items]
Line Of Credit Facility Used Capacity Commitment Fee Percentage		0.30%
LOC Agreements [Member] | High
Line of Credit Facility [Line Items]
Line Of Credit Facility Used Capacity Commitment Fee Percentage		0.45%
LIBOR | Trust Preferred Securities [Member]
Line of Credit Facility [Line Items]
Interest rate spread on LIBOR rate		3.80%

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Debt And Financing Arrangements (Senior Notes and Trust Preferred Securities) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Aggregate interest payments	$ 42.7	$ 40.5	$ 40.4
LIBOR swap
Debt Instrument [Line Items]
Stated interest rate	4.905%
Term of LIBOR swap	5 years
Seven Percent Senior Notes [Member]
Debt Instrument [Line Items]
Principal amount	$ 335.0
Stated interest rate	7.00%
Six Point One Five Percent Senior Notes [Member]
Debt Instrument [Line Items]
Principal amount	$ 200.0
Stated interest rate	6.15%
Four Point Seven Percent Senior Notes [Member]
Debt Instrument [Line Items]
Principal amount	$ 300.0
Stated interest rate	4.70%
Trust Preferred Securities [Member]
Debt Instrument [Line Items]
Principal amount	$ 100.0
Debt Instrument, Description of Variable Rate Basis	3-month
Debt Instrument, Redemption Price, Percentage	100.00%

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Debt And Financing Arrangements (Credit Agreements) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	May 06, 2016	Mar. 23, 2016	Dec. 31, 2015	Apr. 19, 2012
Line of Credit Facility [Line Items]
Letters of Credit Outstanding, Amount	$ 222,300			$ 341,600
Maximum borrowing capacity			$ 450,000		$ 700,000
Blue Capital Reinsurance Holdings [Member]
Line of Credit Facility [Line Items]
Letters of Credit Outstanding, Amount	0
Maximum borrowing capacity		$ 20,000
Blue Capital Global Reinsurance Fund [Member]
Line of Credit Facility [Line Items]
Letters of Credit Outstanding, Amount	$ 0
Maximum borrowing capacity		$ 20,000
LIBOR | Blue Capital Reinsurance Holdings [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate	1.50%
LIBOR | Blue Capital Global Reinsurance Fund [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate	1.50%

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Derivatives (Narrative) (Details) - Cash Flow Hedging [Member] $ in Millions	12 Months Ended
	Dec. 31, 2016 USD ($)
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Senior Notes, stated interest rate	7.00%
Notional amount	$ 125.0
Percentage of protection	50.00%
U.S. treasury benchmark in years	30 years
Payment for interest rate lock derivative	$ 2.7

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Derivatives (Schedule Of The Fair Values And The Related Notional Values Of Derivatives Included In The Company's Consolidated Balance Sheet) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Derivatives, Fair Value [Line Items]
Derivatives recorded in other assets, fair value	$ 166,716	$ 68,892
Derivatives recorded in other liabilities, fair value	84,069	46,088
Net derivative asset	82,647	22,804
Derivative assets traded under master netting agreements	166,700	68,900
Derivative liabilities traded under master netting agreements	84,100	46,100
Securities for Reverse Repurchase Agreements	$ 0	30,000
Low
Derivatives, Fair Value [Line Items]
Required Collateral Percentage	102.00%
Foreign exchange forward contracts
Derivatives, Fair Value [Line Items]
Derivatives recorded in other assets, fair value	$ 629	425
Derivatives recorded in other liabilities, fair value	1,204	372
Derivative recorded in other assets, notional principal amount	34,630	38,818
Derivative recorded in other liabilities, notional principal amount	32,080	30,400
Credit default swaps
Derivatives, Fair Value [Line Items]
Derivatives recorded in other assets, fair value	266	36
Derivatives recorded in other liabilities, fair value	21	276
Derivative recorded in other assets, notional principal amount	5,450	4,225
Derivative recorded in other liabilities, notional principal amount	$ 2,744	7,800
Credit default swaps | High
Derivatives, Fair Value [Line Items]
Original term of credit default swap, in years	5 years
Interest rate swaps
Derivatives, Fair Value [Line Items]
Derivatives recorded in other assets, fair value	$ 374	0
Derivatives recorded in other liabilities, fair value	59	7
Derivative recorded in other assets, notional principal amount	7,000	0
Derivative recorded in other liabilities, notional principal amount	1,100	42,000
Interest rate swaptions
Derivatives, Fair Value [Line Items]
Derivatives recorded in other liabilities, fair value	34	0
Derivative recorded in other liabilities, notional principal amount	5,400	0
Interest rate futures
Derivatives, Fair Value [Line Items]
Derivatives recorded in other liabilities, fair value	0	8
Derivative recorded in other liabilities, notional principal amount	0	54,488
ILWs
Derivatives, Fair Value [Line Items]
Derivatives recorded in other assets, fair value	1,010	0
Derivatives recorded in other liabilities, fair value	184	259
Derivative recorded in other assets, notional principal amount	20,000	0
Derivative recorded in other liabilities, notional principal amount	14,209	19,500
LIBOR swap
Derivatives, Fair Value [Line Items]
Derivatives recorded in other liabilities, fair value	27	233
Derivative recorded in other liabilities, notional principal amount	$ 100,000	100,000
Term of LIBOR swap	5 years
Stated interest rate	4.905%
TBAs
Derivatives, Fair Value [Line Items]
Derivatives recorded in other assets, fair value	$ 121,402	26,924
Derivatives recorded in other liabilities, fair value	50,704	0
Derivative recorded in other assets, notional principal amount	120,300	25,700
Derivative recorded in other liabilities, notional principal amount	50,400	0
Loss development cover
Derivatives, Fair Value [Line Items]
Derivatives recorded in other liabilities, fair value	2,818	2,904
Derivative recorded in other liabilities, notional principal amount	24,451	22,322
Energy and weather contracts
Derivatives, Fair Value [Line Items]
Derivatives recorded in other assets, fair value	43,035	41,507
Derivatives recorded in other liabilities, fair value	29,018	42,029
Derivative recorded in other assets, notional principal amount	101,436	70,388
Derivative recorded in other liabilities, notional principal amount	$ 162,900	$ 148,325

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Derivatives (Schedule Of The Gains And Losses On Derivative Instruments) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Derivative [Line Items]
Total (losses) gains included in net realized and unrealized (losses) gains	$ (2,180)	$ (328)	$ 327
Total gain (loss) included in other underwriting loss	2,706	862	(315)
Total gains from derivatives	1,042	2,629	1,892
Foreign exchange forward contracts
Derivative [Line Items]
Total gain included in net foreign exchange (gains) losses from foreign exchange forward contracts	516	2,095	1,880
Interest rate futures
Derivative [Line Items]
Total (losses) gains included in net realized and unrealized (losses) gains	(160)	79	121
Credit default swaps
Derivative [Line Items]
Total (losses) gains included in net realized and unrealized (losses) gains	7	(50)	30
Interest rate swaps
Derivative [Line Items]
Total (losses) gains included in net realized and unrealized (losses) gains	124	(915)	(4,239)
Interest rate swaptions
Derivative [Line Items]
Total (losses) gains included in net realized and unrealized (losses) gains	(20)	56	477
ILWs
Derivative [Line Items]
Total (losses) gains included in net realized and unrealized (losses) gains	(1,675)	(326)	0
LIBOR swap
Derivative [Line Items]
Total (losses) gains included in net realized and unrealized (losses) gains	206	332	0
TBAs
Derivative [Line Items]
Total (losses) gains included in net realized and unrealized (losses) gains	(662)	496	3,938
Energy and weather contracts
Derivative [Line Items]
Total gain (loss) included in other underwriting loss	4,835	2,281	(315)
Loss development cover
Derivative [Line Items]
Total gain (loss) included in other underwriting loss	$ (2,129)	$ (1,419)	$ 0

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Segment Reporting (Summary Of The Segment Revenues, Results And Reserve For Losses And Loss Expenses And Carrying Value Of Goodwill) (Details) - USD ($) $ in Thousands		3 Months Ended								12 Months Ended
		Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Segment Reporting Information [Line Items]
Gross premiums written										$ 4,202,170	$ 3,320,861	$ 2,894,076
Ceded premiums written										(1,832,235)	(1,370,391)	(959,870)
Net premiums written										2,369,935	1,950,470	1,934,206
Net premiums earned		$ 600,705	$ 610,156	$ 599,608	$ 553,191	$ 573,456	$ 557,003	$ 458,135	$ 389,859	2,363,660	1,978,453	1,863,978
Other underwriting loss										(909)	(3,694)	(5,786)
Total revenue										2,362,751	1,974,759	1,858,192
Net losses and loss expenses		370,150	331,462	376,112	243,328	242,057	263,993	239,122	171,936	1,321,052	917,108	970,162
Acquisition expenses										460,483	347,885	319,513
General and administrative expenses										248,146	259,791	247,387
Total expenses										2,029,681	1,524,784	1,537,062
Underwriting income										333,070	449,975	321,130
Net investment income		59,196	62,236	43,977	11,181	23,180	16,533	32,252	41,861	176,590	113,826	131,543
Corporate expenses										(51,706)	(114,429)	(66,200)
Net foreign exchange gains		11,628	18,576	32,751	11,729	2,190	(8,621)	(12,981)	(7,552)	74,684	(26,964)	(3,839)
Net realized and unrealized (losses) gains		(45,958)	13,405	6,347	13,787	(20,238)	5,029	9,680	18,189	(12,419)	12,660	14,283
Net impairment losses recognized in earnings		(122)	$ (183)	$ (9,841)	$ (623)	(2,604)	$ (38)	$ (424)	$ (649)	(10,769)	(3,715)	(625)
Amortization of intangibles										(84,624)	(30,620)	(6,484)
Interest expense										(43,860)	(41,260)	(40,968)
Income before income taxes										$ 380,966	$ 359,473	$ 348,840
Net loss ratio										55.90%	46.40%	52.10%
Acquisition expense ratio										19.50%	17.60%	17.10%
General and administrative expense ratio	[1]									12.70%	18.90%	16.80%
Combined ratio										88.10%	82.90%	86.00%
Reserve for losses and loss expenses		4,905,138				4,510,415				$ 4,905,138	$ 4,510,415	$ 3,846,859	$ 4,002,259
Goodwill		175,482				176,455				175,482	176,455	91,238
Insurance
Segment Reporting Information [Line Items]
Gross premiums written										2,570,494	2,085,901	1,716,128
Ceded premiums written										(1,514,240)	(1,205,528)	(855,722)
Net premiums written										1,056,254	880,373	860,406
Net premiums earned										1,009,375	824,552	833,912
Other underwriting loss										0	0	0
Total revenue										1,009,375	824,552	833,912
Net losses and loss expenses										684,178	500,867	594,561
Acquisition expenses										149,763	80,252	65,368
General and administrative expenses										140,742	140,012	148,475
Total expenses										974,683	721,131	808,404
Underwriting income										$ 34,692	$ 103,421	$ 25,508
Net loss ratio										67.90%	60.80%	71.40%
Acquisition expense ratio										14.80%	9.70%	7.80%
General and administrative expense ratio	[1]									13.90%	17.00%	17.70%
Combined ratio										96.60%	87.50%	96.90%
Reserve for losses and loss expenses		2,798,989				2,493,894				$ 2,798,989	$ 2,493,894	$ 2,123,772
Goodwill		83,550				84,525				83,550	84,525	47,925
Reinsurance
Segment Reporting Information [Line Items]
Gross premiums written										1,631,676	1,234,960	1,177,948
Ceded premiums written										(317,995)	(164,863)	(104,148)
Net premiums written										1,313,681	1,070,097	1,073,800
Net premiums earned										1,354,285	1,153,901	1,030,066
Other underwriting loss										(909)	(3,694)	(5,786)
Total revenue										1,353,376	1,150,207	1,024,280
Net losses and loss expenses										636,874	416,241	375,601
Acquisition expenses										310,720	267,633	254,145
General and administrative expenses										107,404	119,779	98,912
Total expenses										1,054,998	803,653	728,658
Underwriting income										$ 298,378	$ 346,554	$ 295,622
Net loss ratio										47.10%	36.00%	36.40%
Acquisition expense ratio										22.90%	23.20%	24.70%
General and administrative expense ratio	[1]									7.90%	10.40%	9.60%
Combined ratio										77.90%	69.60%	70.70%
Reserve for losses and loss expenses		2,106,149				2,016,521				$ 2,106,149	$ 2,016,521	$ 1,723,087
Goodwill		$ 91,932				$ 91,930				$ 91,932	$ 91,930	$ 43,313

[1] Total general and administrative expense ratio includes general and administrative expenses and corporate expenses.

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Segment Reporting (Schedule Of Gross Premiums Written By Line Of Business) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Revenue, Major Customer [Line Items]
Gross premiums written	$ 4,202,170	$ 3,320,861	$ 2,894,076
Agriculture
Revenue, Major Customer [Line Items]
Gross premiums written	760,877	840,445	866,025
Casualty and other specialty
Revenue, Major Customer [Line Items]
Gross premiums written	657,558	514,203	396,113
Professional lines
Revenue, Major Customer [Line Items]
Gross premiums written	461,552	344,482	263,538
Property, marine/energy and aviation
Revenue, Major Customer [Line Items]
Gross premiums written	690,507	386,771	190,452
Catastrophe
Revenue, Major Customer [Line Items]
Gross premiums written	506,300	311,914	343,213
Property
Revenue, Major Customer [Line Items]
Gross premiums written	250,447	209,392	287,326
Casualty
Revenue, Major Customer [Line Items]
Gross premiums written	245,092	176,506	159,533
Professional lines
Revenue, Major Customer [Line Items]
Gross premiums written	256,337	248,610	174,656
Specialty
Revenue, Major Customer [Line Items]
Gross premiums written	373,500	288,538	213,220
Insurance
Revenue, Major Customer [Line Items]
Gross premiums written	2,570,494	2,085,901	1,716,128
Reinsurance
Revenue, Major Customer [Line Items]
Gross premiums written	$ 1,631,676	$ 1,234,960	$ 1,177,948

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Segment Reporting (Schedule Of Geographic Distribution Of Gross Premiums Written) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Geographic Distribution Of Gross Premiums Category [Line Items]
Gross premiums written	$ 4,202,170	$ 3,320,861	$ 2,894,076
United States
Geographic Distribution Of Gross Premiums Category [Line Items]
Gross premiums written	2,823,950	2,305,301	2,054,431
Worldwide
Geographic Distribution Of Gross Premiums Category [Line Items]
Gross premiums written	794,289	566,664	456,078
Europe
Geographic Distribution Of Gross Premiums Category [Line Items]
Gross premiums written	265,100	209,729	172,077
Asia
Geographic Distribution Of Gross Premiums Category [Line Items]
Gross premiums written	105,838	75,165	38,442
Japan
Geographic Distribution Of Gross Premiums Category [Line Items]
Gross premiums written	82,864	58,524	45,618
Australasia
Geographic Distribution Of Gross Premiums Category [Line Items]
Gross premiums written	49,727	41,309	61,994
Other
Geographic Distribution Of Gross Premiums Category [Line Items]
Gross premiums written	$ 80,402	$ 64,169	$ 65,436

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Goodwill And Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible asset impairment loss	[1]	$ 0	$ 0	$ (5,450)
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Amortization of intangible assets with finite lives, 2017		63,700
Amortization of intangible assets with finite lives, 2018		37,700
Amortization of intangible assets with finite lives, 2019		27,500
Amortization of intangible assets with finite lives, 2020		22,800
Amortization of intangible assets with finite lives, 2021		21,600
Amortization of intangible assets with finite lives, after 2021		$ 53,000

[1] For additional information on the Company's intangible assets, see Note 11, Goodwill and intangible assets.

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Goodwill And Intangible Assets (Schedule Of Goodwill And Intangible Assets) (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2016	Dec. 31, 2015		Dec. 31, 2014
Schedule Of Goodwill And Intangible Assets [Line Items]
Net beginning balance		$ 553,960	$ 153,405
Additions		(962)	438,185	[1]
Amortization		(84,624)	(30,620)		$ (6,484)
Goodwill impairment loss		0	0
Intangible asset impairment loss	[2]	0	0		(5,450)
Goodwill and intangible assets, foreign currency translation			7,010
Gross balance		683,732
Intangible assets with finite lives, accumulated amortization		(202,898)
Accumulated impairment losses		(5,450)
Accumulated foreign currency translation		(7,010)
Net balance		468,374	553,960		153,405
Goodwill
Schedule Of Goodwill And Intangible Assets [Line Items]
Net beginning balance		176,455	91,238
Additions		(973)	87,367	[1]
Amortization		0	0
Goodwill, foreign currency translation			(2,150)
Gross balance		177,632
Intangible assets with finite lives, accumulated amortization		0
Goodwill accumulated impairment loss		0
Accumulated foreign currency translation		(2,150)
Net balance		175,482	176,455		91,238
Intangible assets with indefinite lives
Schedule Of Goodwill And Intangible Assets [Line Items]
Net beginning balance		66,641	11,779
Additions		0	57,600	[1]
Amortization		0	0
Indefinite-lived intangible assets, foreign currency translation			(2,738)
Intangible assets with indefinite lives, Gross balance		74,829
Intangible assets with finite lives, accumulated amortization		0
Accumulated impairment losses		(5,450)
Accumulated foreign currency translation		(2,738)
Net balance		66,641	66,641		11,779
Intangible assets with finite lives
Schedule Of Goodwill And Intangible Assets [Line Items]
Net beginning balance		310,864	50,388
Additions		11	293,218	[1]
Amortization		(84,624)	(30,620)
Finite-lived intangible assets, foreign currency translation			(2,122)
Intangible assets with finite lives, Gross balance		431,271
Intangible assets with finite lives, accumulated amortization		(202,898)
Intangible assets with finite lives, accumulated impairment losses		0
Accumulated foreign currency translation		(2,122)
Net balance		$ 226,251	$ 310,864		$ 50,388

[1] For additional information on the intangible assets acquired during 2015, see Note 3, Acquisition of Montpelier.

[2] For additional information on the Company's intangible assets, see Note 11, Goodwill and intangible assets.

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Commitments And Contingencies (Narrative) (Details) $ in Thousands	Dec. 31, 2016 USD ($) custodian	Dec. 31, 2015 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Collateral held related to ceded reinsurance agreements	$ 493,300	$ 321,500
Securities pledged as collateral obligation	$ 106,800	108,900
Number of custodians | custodian	6
Ceded Credit Risk [Line Items]
Reinsurance Recoverables	$ 1,486,918	1,195,970
U.S. Government Sponsored Reinsurance Program [Member]
Ceded Credit Risk [Line Items]
Reinsurance Recoverables	141,400	234,600
A- or better by A.M. Best or Standard And Poors [Member]
Ceded Credit Risk [Line Items]
Reinsurance Recoverables	$ 1,293,300	$ 941,500

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Commitments And Contingencies (Schedule Of Percentage Of Gross Premiums Written) (Details) - Sales [Member]	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Revenue, Major Customer [Line Items]
Percentage of gross premium written	44.10%	41.80%	42.90%
Marsh & McLennan Companies, Inc.
Revenue, Major Customer [Line Items]
Percentage of gross premium written	20.90%	19.80%	19.10%
Aon Benfield
Revenue, Major Customer [Line Items]
Percentage of gross premium written	14.30%	12.80%	13.20%
Willis Companies
Revenue, Major Customer [Line Items]
Percentage of gross premium written	8.90%	9.20%	10.60%

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Commitments And Contingencies (LOC) (Details) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Cash and investments pledged under letters of credit facility	$ 252.2	$ 383.3
Amount of letters of credit outstanding	$ 222.3	$ 341.6

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Commitments And Contingencies (Deposits) (Details) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
United States
Statutory Accounting Practices [Line Items]
Assets Held by Insurance Regulators	$ 207.8	$ 208.3

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Commitments And Contingencies (Assets Held In Trust) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Assets Held In Trust [Line Items]
Cash and cash equivalents	$ 1,149,541	$ 1,177,750	$ 745,472	$ 845,851
Blue Water Re Trust [Member]
Assets Held In Trust [Line Items]
Assets Held-in-trust	427,800	438,900
BW Retrocessional Agreement [Member]
Assets Held In Trust [Line Items]
Cash and cash equivalents	191,400	195,300
Blue Capital Re ILS Trusts [Member]
Assets Held In Trust [Line Items]
Assets Held-in-trust	3,300	5,200
Endurance Reinsurance Trust [Member]
Assets Held In Trust [Line Items]
Assets Held-in-trust	783,900	94,100
Reduced Collateral Trust [Member]
Assets Held In Trust [Line Items]
Assets Held-in-trust	16,400	10,800
MUSIC Trust [Member]
Assets Held In Trust [Line Items]
Assets Held-in-trust	24,600	21,300
Lloyd's Premiums Trust Funds [Member]
Assets Held In Trust [Line Items]
Assets Held-in-trust	184,100	231,900
Endurance Bermuda | Lloyd's Capital Trust [Member]
Assets Held In Trust [Line Items]
Assets Held-in-trust	$ 323,600	$ 276,800

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Commitments And Contingencies (Lloyd's New Central Fund) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Levy Imposed As Percentage Of Premiums Written	0.35%	0.50%
Additional Contribution As Percentage Of Underwriting Capacity Maximum	3.00%
Estimated Obligation To Central Fund For Annual Contribution	$ 1.1	$ 1.0
Annual Subscription Charge As Percentage Of Premium Written	0.45%	0.50%
Estimated Obligation For Annual Subscription Charges	$ 1.4	$ 1.0

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Commitments And Contingencies (Schedule Of Future Minimum Lease Commitments) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Commitments and Contingencies Disclosure [Abstract]
2017	$ 15,895
2018	19,945
2019	22,420
2020	21,060
2021	19,099
2022	103,443
Total	201,862
Total lease expense under operating leases	12,800	$ 16,500	$ 14,700
Total sublease income under operating leases	$ 400	$ 1,300	$ 1,300

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Shareholders' Equity (Narrative) (Details) $ / shares in Units, $ in Thousands					12 Months Ended
	Jun. 01, 2016 $ / shares shares	Dec. 24, 2015 shares	Nov. 24, 2015 USD ($) $ / shares shares	Jun. 01, 2011 USD ($) shares	Dec. 31, 2016 USD ($) shares	Dec. 31, 2015 USD ($) shares	Dec. 31, 2014 USD ($)	Feb. 25, 2016 shares
Class of Stock [Line Items]
Preferred Stock, Shares Issued					9,200	9,209,200
Number of restricted shares outstanding					1,396,538
Net proceeds on issuance of preferred shares | $					$ 0	$ 222,963	$ 0
Shares authorized to be repurchased								5,000,000
Treasury Stock, Shares, Acquired					0
Total authorized repurchases remaining shares					5,000,000	5,000,000
Series A Preferred Stock [Member]
Class of Stock [Line Items]
Shares redeemed		8,000,000
Preferred stock, dividend percentage		7.75%
Series B Preferred Stock [Member]
Class of Stock [Line Items]
Preferred Stock, Shares Issued				9,200,000		9,200,000
Shares redeemed	9,200,000
Preferred stock, dividend percentage				7.50%
Net proceeds on issuance of preferred shares | $				$ 224,000
Preferred stock redemption price per share | $ / shares	$ 25
Series C Preferred Stock [Member]
Class of Stock [Line Items]
Preferred Stock, Shares Issued			9,200		9,200	0
Preferred stock, dividend percentage			6.35%
Preferred Stock Shares Issued Depositary Shares			9,200,000
Preferred stock price at issue | $ / shares			$ 25,000
Preferred Stock Price At Issue Depositary Shares | $ / shares			$ 25.00
Net proceeds on issuance of preferred shares | $			$ 222,000
Preferred stock redemption price per share | $ / shares			$ 25,000
Preferred Stock Redemption Price Per Depositary Share | $ / shares			25.00
Preferred Stock Early Redemption Amount Depositary Share | $ / shares			26
Preferred stock redemption price per share before stated redemption date | $ / shares			26,000
Preferred stock, liquidation price per share | $ / shares			25,000
Preferred Stock Liquidation Preference Depositary Shares | $ / shares			$ 25
Preferred Stock Interest In Share			0.001

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Shareholders' Equity (Schedule Of Company's Share Capital) (Details) - USD ($) $ / shares in Units, $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Capital Unit [Line Items]
Preferred Stock, Shares Authorized	9,200	9,209,200
Preferred Stock, Shares Issued	9,200	9,209,200
Preferred Stock, Shares Outstanding	9,200	9,209,200
Common Stock, Shares Authorized	120,000,000	120,000,000
Common shares, ordinary, number of shares issued	67,627,901	66,797,991
Common shares, ordinary, number of shares outstanding	67,627,901	66,797,991
Preferred Stock, Par or Stated Value Per Share	$ 1.00
Common Stock, Par or Stated Value Per Share	$ 1.00
Preferred shares, total liquidation preference	$ 230,000	$ 460,000
Series B Preferred Stock [Member]
Capital Unit [Line Items]
Preferred Stock, Shares Issued	0	9,200,000
Preferred Stock, Shares Outstanding	0	9,200,000
Preferred Stock, Par or Stated Value Per Share		$ 1.00
Preferred shares, total liquidation preference	$ 0	$ 230,000
Series C Preferred Stock [Member]
Capital Unit [Line Items]
Preferred Stock, Shares Issued	9,200	9,200
Preferred Stock, Shares Outstanding	9,200	9,200
Preferred Stock, Par or Stated Value Per Share	$ 1.00
Preferred shares, total liquidation preference	$ 230,000	$ 230,000

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Shareholders' Equity (Schedule Of Changes In Accumulated Other Comprehensive (Loss) Income By Component) (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Accumulated Other Comprehensive (Loss) Income [Line Items]
Beginning balance		$ (46,634)	$ 76,706
Other comprehensive (loss) income before reclassifications		(32,037)	(90,631)
Amounts reclassified from accumulated other comprehensive loss	[1]	19,922	(32,709)
Net current period other comprehensive loss		(12,115)	(123,340)	$ 13,975
Ending balance		(58,749)	(46,634)	76,706
Losses on cash flow hedges
Accumulated Other Comprehensive (Loss) Income [Line Items]
Beginning balance		(1,678)	(1,766)
Other comprehensive (loss) income before reclassifications		0	0
Amounts reclassified from accumulated other comprehensive loss	[1]	88	88
Net current period other comprehensive loss		88	88
Ending balance		(1,590)	(1,678)	(1,766)
Unrealized (losses) gains on available for sale securities
Accumulated Other Comprehensive (Loss) Income [Line Items]
Beginning balance		(12,638)	86,100
Other comprehensive (loss) income before reclassifications		54,287	(65,941)
Amounts reclassified from accumulated other comprehensive loss	[1]	19,834	(32,797)
Net current period other comprehensive loss		74,121	(98,738)
Ending balance		61,483	(12,638)	86,100
Foreign currency translation adjustments
Accumulated Other Comprehensive (Loss) Income [Line Items]
Beginning balance		(32,318)	(7,628)
Other comprehensive (loss) income before reclassifications		(86,324)	(24,690)
Amounts reclassified from accumulated other comprehensive loss	[1]	0	0
Net current period other comprehensive loss		(86,324)	(24,690)
Ending balance		$ (118,642)	$ (32,318)	$ (7,628)

[1] All amounts are net of tax.

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Shareholders' Equity (Schedule Of Reclassifications Out Of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Reclassification Adjustment out of Accumulated Other Comprehensive Loss [Line Items]
Interest expense									$ 43,860	$ 41,260	$ 40,968
Net realized and unrealized (losses) gains	$ 45,958	$ (13,405)	$ (6,347)	$ (13,787)	$ 20,238	$ (5,029)	$ (9,680)	$ (18,189)	12,419	(12,660)	(14,283)
Net impairment losses recognized in earnings	122	183	9,841	623	2,604	38	424	649	10,769	3,715	625
Income before income taxes									(380,966)	(359,473)	(348,840)
Income tax benefit (expense)									181	(4,362)	(390)
Total net of income taxes	$ (23,801)	$ (133,721)	$ (83,914)	$ (115,581)	$ (99,587)	$ (51,823)	$ (84,206)	$ (108,479)	(357,017)	(344,095)	$ (348,450)
Reclassification Adjustment Out Of Accumulated Other Comprehensive (Loss) Income [Member] | Losses on cash flow hedges
Reclassification Adjustment out of Accumulated Other Comprehensive Loss [Line Items]
Interest expense									88	88
Income before income taxes									88	88
Income tax benefit (expense)									0	0
Total net of income taxes									88	88
Reclassification Adjustment Out Of Accumulated Other Comprehensive (Loss) Income [Member] | Unrealized losses (gains) on available for sale securities
Reclassification Adjustment out of Accumulated Other Comprehensive Loss [Line Items]
Net realized and unrealized (losses) gains									7,984	(37,245)
Net impairment losses recognized in earnings									10,769	3,715
Income before income taxes									18,753	(33,530)
Income tax benefit (expense)									(1,081)	(733)
Total net of income taxes									$ 19,834	$ (32,797)

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Earnings Per Share (Schedule Of Computation Of Basic And Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended								12 Months Ended
		Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Net income available to common and participating common shareholders		$ 20,149	$ 130,070	$ 76,621	$ 106,378	$ 91,401	$ 43,635	$ 76,018	$ 100,291	$ 333,218	$ 311,345	$ 315,700
Less amount allocated to participating common shareholders	[1]									(6,973)	(8,749)	(9,118)
Net income allocated to common shareholders										$ 326,245	$ 302,596	$ 306,582
Weighted average shares - basic										65,991,947	52,707,390	43,368,062
Weighted average shares - diluted										66,135,373	52,828,503	43,415,243
Basic earnings per common share		$ 0.30	$ 1.93	$ 1.14	$ 1.58	$ 1.36	$ 0.73	$ 1.69	$ 2.24	$ 4.94	$ 5.74	$ 7.07
Diluted earnings per common share		$ 0.30	$ 1.92	$ 1.14	$ 1.58	$ 1.36	$ 0.73	$ 1.68	$ 2.23	$ 4.93	$ 5.73	$ 7.06
Restricted Stock [Member]
Share equivalents:										78,075	2,721	70
Employee Stock Option [Member]
Share equivalents:										65,351	118,392	47,111

[1] Represents earnings and dividends attributable to holders of unvested restricted shares and restricted share units issued under the Company's stock compensation plans that are considered participating. In periods of loss, no losses are allocated to participating common shareholders (unvested restricted shares and restricted share units).

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Earnings Per Share (Schedule Of Dividends Declared) (Details) - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Dividends Declared [Line Items]
Dividends declared per common share	$ 1.52	$ 1.40	$ 1.36
Series A Preferred Stock [Member]
Dividends Declared [Line Items]
Dividends declared per preferred share	0	1.937500	1.937500
Series B Preferred Stock [Member]
Dividends Declared [Line Items]
Dividends declared per preferred share	0.8646	1.875000	1.875000
Series C Preferred Stock [Member]
Dividends Declared [Line Items]
Dividends declared per preferred share	$ 1,680.10	$ 0	$ 0

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Earnings Per Share (Narrative) (Details) - Series B Preferred Stock [Member]	Jun. 01, 2016 $ / shares shares
Class of Stock [Line Items]
Shares redeemed | shares	9,200,000
Preferred stock redemption price per share | $ / shares	$ 25

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Related Party Transactions (Details) - USD ($) $ in Thousands, shares in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Related Party Transaction [Line Items]
Investment expenses	$ 16,525	$ 16,486	$ 14,284
BlackRock Inc [Member]
Related Party Transaction [Line Items]
Ordinary shares owned by related parties	4.9
Percentage of ordinary shares owned by related parties	7.30%
Investment expenses	$ 4,600	3,600	$ 3,200
Accrued investment expenses	$ 2,800	$ 1,600

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Stock-Based Employee Compensation And Other Stock Plans (Narrative) (Details)				12 Months Ended
	Aug. 03, 2015 shares	Jul. 31, 2015 shares	May 28, 2013 shares	Dec. 31, 2016 USD ($) shares	Dec. 31, 2015 USD ($) shares	Dec. 31, 2014 USD ($) shares	May 20, 2015 shares	May 11, 2011 shares	Feb. 23, 2011 shares	Feb. 11, 2010 shares	Feb. 28, 2007 shares	Oct. 26, 2005 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of ordinary shares authorized for issuance				2,071,035	2,463,798
Number of additional ordinary shares authorized after acquisition of Montpelier	842,755
Contractual life of stock options			10 years
Number of options granted				0
Number of options expired				0	0	0
Number of options vested				160,000	160,000	160,000
Number of options exercised				160,000
Total intrinsic value of options exercised | $				$ 3,200,000	$ 9,500,000	$ 300,000
Proceeds from stock options exercised | $				7,700,000
Unrecognized stock based compensation expenses related to unvested stock options | $				$ 200,000	$ 1,000,000
Vesting period for employee awards				4 years
Restricted share awards to non-employee directors, vesting period				1 year
Number of restricted shares granted				638,217	1,388,179	505,997
Restricted shares weighted average grant date, aggregate fair value | $				$ 38,500,000	$ 91,200,000	$ 26,700,000
Aggregate fair value of restricted shares and RSUs vested | $				44,300,000	60,000,000	18,700,000
Compensation costs not yet recognized related to unvested restricted shares and restricted share units | $				$ 26,200,000	$ 26,700,000
Exchange ratio		0.472
RSUs assumed					841,926
Weighted average remaining contractual life in years, options outstanding, end of year				6 years 4 months 28 days
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options vesting rate				20.00%
Contractual life of stock options				10 years
Vesting period for employee awards				5 years
Compensation costs recognized | $				$ 800,000	$ 1,600,000	3,100,000
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period for employee awards				4 years
Restricted share awards to non-employee directors, vesting period				12 months
Compensation costs recognized | $				$ 35,700,000	53,900,000	27,900,000
Percentage of compensation expense to be expensed next year				65.30%
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period for employee awards				3 years
Stock Based Employee Compensation Plans Two Thousand Seven Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of ordinary shares authorized for issuance		5,763,104								1,795,000	2,100,000
Number of additional ordinary shares authorized after acquisition of Montpelier		1,025,349
2005 Employee Share Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserved for issuance under ESPP								400,000	200,000			200,000
2015 Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Period shares are restricted from sale, transfer, or certification				1 year
Shares reserved for issuance under ESPP							300,000
Percentage of employee share purchase plans discount closing market price				15.00%
Expenses related to employee stock purchase plan | $				$ 425,000	$ 298,000	$ 234,000
Chief Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of restricted shares granted			708,890
Share-based Compensation Award, Tranche One [Member] | Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting rate of restricted shares on death, disability or change of control, percentage				50.00%
Restricted Stock [Member] | Chief Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of tranches			5

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Stock-Based Employee Compensation And Other Stock Plans (Options Narrative) (Details)		12 Months Ended
	May 28, 2013 $ / shares shares	Dec. 31, 2016 $ / shares shares	Dec. 31, 2015 shares	Dec. 31, 2014 shares
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Number of options granted		0
Weighted average exercise price of options granted in period | $ / shares		$ 0.00
Number of options expired		0	0	0
Contractual life of stock options	10 years
Chief Executive Officer [Member]
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Number of options granted	800,000
Weighted average exercise price of options granted in period | $ / shares	$ 48.20
Chief Executive Officer [Member] | Employee Stock Option [Member]
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Number of tranches	5
Chief Executive Officer [Member] | Restricted Stock [Member]
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Number of tranches	5

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Stock-Based Employee Compensation And Other Stock Plans (Summary Of Stock Option Activity) (Details) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016 USD ($) $ / shares shares
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Weighted average remaining contractual life in years, options outstanding, end of year	6 years 4 months 28 days
Number of options granted	0
Aggregate Intrinsic Value, Outstanding, end of year | $	$ 7,072
Aggregate Intrinsic Value, Exercisable and vested options, end of year | $	$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Number of options, beginning of year	320,000
Number of options granted	0
Number of options exercised	(160,000)
Number of options forfeited	0.00
Number of options outstanding, end of year	160,000
Number of options exercisable and vested, end of year	0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Weighted Average Exercise Price, Beginning of year | $ / shares	$ 48.20
Weighted average Exercise Price, Granted | $ / shares	0.00
Weighted Average Exercise Price, Exercised | $ / shares	48.20
Weighted Average Exercise Price, Forfeited | $ / shares	0.00
Weighted Average Exercise Price, Outstanding, end of year | $ / shares	48.20
Weighted Average Exercise Price, Exercisable and vested options, end of year | $ / shares	$ 0.00

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Stock-Based Employee Compensation And Other Stock Plans (Restricted Share And Restricted Share Unit Activity) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Unvested, beginning of year	1,663,582
Granted	638,217
Settled	(769,445)
Forfeited	(65,638)
Unvested, end of year	1,466,716.000
Number of Shares/Units, Outstanding, end of year	1,663,582	1,466,716.000
Aggregate Intrinsic Value, Outstanding, end of year		$ 135,525

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Pension Plan (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Defined Contribution Plan Disclosure [Line Items]
Expenses related to contributions	$ 15.8	$ 13.8	$ 12.6
Low
Defined Contribution Plan Disclosure [Line Items]
Percentage of defined contributions per employee	4.00%
High
Defined Contribution Plan Disclosure [Line Items]
Percentage of defined contributions per employee	12.00%

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Statutory Requirements And Dividend Restrictions (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Statutory Requirements And Dividend Restrictions [Line Items]
Retained earnings	$ 2,911,634	$ 2,681,053
Contributed surplus	$ 1,961,917	2,145,836
Period to notify the PRA, days	28 days
Armtech [Member]
Statutory Requirements And Dividend Restrictions [Line Items]
Payable dividend without prior regulatory approval	$ 3,300	3,500
Endurance Bermuda
Statutory Requirements And Dividend Restrictions [Line Items]
Payable dividend without prior regulatory approval	1,109,300	1,034,400
Endurance Bermuda | Low
Statutory Requirements And Dividend Restrictions [Line Items]
Required statutory capital	$ 100,000
Endurance US Subsidiaries
Statutory Requirements And Dividend Restrictions [Line Items]
Dividend payable rate, maximum	10.00%
Blue Water Re
Statutory Requirements And Dividend Restrictions [Line Items]
Statutory net assets	$ 263,100	269,600
Blue Water Re II
Statutory Requirements And Dividend Restrictions [Line Items]
Statutory net assets	11,300	212,500
Blue Capital Re
Statutory Requirements And Dividend Restrictions [Line Items]
Payable dividend without prior regulatory approval	45,900	50,600
Lloyd's Capital Trust [Member] | Endurance Bermuda
Statutory Requirements And Dividend Restrictions [Line Items]
Assets Held-in-trust	$ 323,600	$ 276,800

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Statutory Requirements And Dividend Restrictions (Combined Statutory Capital and Statutory Net Income (Loss)) (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Bermuda
Statutory Accounting Practices [Line Items]
Required statutory capital	[1],[2]	$ 1,614,465	$ 1,276,453
Actual statutory capital	[1],[2]	4,525,290	4,307,249
Statutory net income (loss)		486,254	417,298	$ 453,127
United States
Statutory Accounting Practices [Line Items]
Required statutory capital		350,947	281,905
Actual statutory capital		810,704	768,791
Statutory net income (loss)		64,688	70,398	28,450
United Kingdom
Statutory Accounting Practices [Line Items]
Required statutory capital	[3]	184,799	84,086
Actual statutory capital	[3]	451,257	538,265
Statutory net income (loss)		79,912	969	4,135
Singapore
Statutory Accounting Practices [Line Items]
Required statutory capital		3,461	3,524
Actual statutory capital		59,025	49,842
Statutory net income (loss)		$ 10,460	$ 17,542	$ 4,111

[1] {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOjc3NjNhMmJhMjQ4MzRmYjk4MWUzOWY1YzBlMDY4OGYyfFRleHRTZWxlY3Rpb246NEE0NDk0MDYwMUIwMUFDMEI0OUMwREQ2MkVFREFCMkYM}

[2] {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOjc3NjNhMmJhMjQ4MzRmYjk4MWUzOWY1YzBlMDY4OGYyfFRleHRTZWxlY3Rpb246NUVCNEIwRkQ4MjUxNDNBNDJENzIwREQ2MkVFREU0NzAM}

[3] U.K. includes the statutory capital of Endurance U.K.

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Taxes (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Tax Expense Benefit [Line Items]
Current income tax expense	$ (10,993)	$ (6,262)	$ (1,804)
Deferred income tax benefit	$ 11,174	1,900	1,414
Combined effective tax rate (Bermuda)	0.00%
Total income tax paid	$ (7,800)	(2,400)	(900)
Valuation allowance	(104,808)	(131,138)
United States
Income Tax Expense Benefit [Line Items]
Current income tax expense	1,800	4,200	1,800
Deferred income tax benefit	(5,200)	(700)	$ (1,400)
Net operating loss carryforwards	119,800
United Kingdom
Income Tax Expense Benefit [Line Items]
Current income tax expense	4,200	2,200
Deferred income tax benefit	(1,700)	(200)
Net operating loss carryforwards	45,900
Switzerland
Income Tax Expense Benefit [Line Items]
Current income tax expense	5,000	0
Net operating loss carryforwards	44,500
Singapore
Income Tax Expense Benefit [Line Items]
Net operating loss carryforwards	61,100
Bermuda
Income Tax Expense Benefit [Line Items]
Deferred income tax benefit	$ (4,200)	$ (1,000)

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Taxes (Income Tax Expense) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Current income tax expense	$ (10,993)	$ (6,262)	$ (1,804)
Deferred income tax benefit	11,174	1,900	1,414
Income tax benefit (expense)	$ 181	$ (4,362)	$ (390)

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Taxes (Income Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Computed expected tax expense	$ 0	$ 0	$ 0
Tax expense effect on foreign taxes	(26,149)	(8,071)	(1,661)
Change in valuation allowance	26,330	3,709	1,271
Income tax benefit (expense)	$ 181	$ (4,362)	$ (390)

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Taxes (Schedule Of Net Deferred Tax Assets And Liabilities) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Unearned premiums	$ 28,523	$ 25,172
Loss reserves	26,594	27,370
Net operating loss carryforward	66,315	92,844
Deferred compensation	26,451	25,268
Deferred interest	48,359	46,568
Unrealized investment losses	1,803	1,568
Realized investment losses	4,010	4,972
Other	3,830	11,077
Total deferred income tax assets	205,885	234,839
Deferred acquisition costs	(1,325)	(8,179)
Unrealized foreign exchange gains	0	(4,087)
Temporary differences related to acquisition	(29,033)	(35,461)
Start up costs	(1,989)	(1,565)
Other	(10,002)	(7,561)
Total deferred income tax liabilities	(42,349)	(56,853)
Valuation allowance	(104,808)	(131,138)
Net deferred income tax asset	$ 58,728	$ 46,848

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Taxes (Schedule Of Distribution Of Income Before Income Taxes) (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
U.S. (domestic)		$ 40,872	$ 95,649	$ 60,112
Non-U.S. (foreign)	[1]	340,094	263,824	288,728
Income before income taxes		$ 380,966	$ 359,473	$ 348,840

[1] The Company's non-U.S. (foreign) operating subsidiaries write business that is exposed to risks originating in the United States.

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Taxes (Montpelier Valuation Allowance) (Details) - Montpelier Re Holdings Ltd [Member] $ in Millions	Dec. 31, 2016 USD ($)
Valuation Allowance [Line Items]
Operating Loss Carryforwards, Valuation Allowance	$ 11.6
Capital Loss Carryforwards Valuation Allowance	0.7
Loss Carryforward Available Per Year	$ 0.2

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Condensed Unaudited Quarterly Financial Data (Summary Of The Unaudited Quarterly Data) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								5 Months Ended	12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Quarterly Financial Information Disclosure [Abstract]
Net premiums earned	$ 600,705	$ 610,156	$ 599,608	$ 553,191	$ 573,456	$ 557,003	$ 458,135	$ 389,859		$ 2,363,660	$ 1,978,453	$ 1,863,978
Net investment income	59,196	62,236	43,977	11,181	23,180	16,533	32,252	41,861		176,590	113,826	131,543
Net realized and unrealized gains	(45,958)	13,405	6,347	13,787	(20,238)	5,029	9,680	18,189		(12,419)	12,660	14,283
Net impairment losses recognized in earnings	(122)	(183)	(9,841)	(623)	(2,604)	(38)	(424)	(649)		(10,769)	(3,715)	(625)
Subtotal	613,821	685,614	640,091	577,536	573,794	578,527	499,643	449,260
Net losses and loss expenses	370,150	331,462	376,112	243,328	242,057	263,993	239,122	171,936		1,321,052	917,108	970,162
Acquisition, general and administrative, and corporate expenses	192,546	201,081	178,870	187,838	194,726	225,558	152,570	149,251
Net foreign exchange (gains) losses	(11,628)	(18,576)	(32,751)	(11,729)	(2,190)	8,621	12,981	7,552		(74,684)	26,964	3,839
Net income	29,475	139,400	87,628	124,644	107,896	54,530	84,206	108,479		381,147	355,111	348,450
Net income attributable to non-controlling interests	(5,674)	(5,679)	(3,714)	(9,063)	(8,309)	(2,707)	0	0	$ (11,016)	(24,130)	(11,016)	0
Net income available to Endurance Holdings	23,801	133,721	83,914	115,581	99,587	51,823	84,206	108,479		357,017	344,095	348,450
Preferred dividends	(3,652)	(3,651)	(7,293)	(9,203)	(8,186)	(8,188)	(8,188)	(8,188)		(23,799)	(32,750)	(32,750)
Net income available to Endurance Holdings' common and participating common shareholders	$ 20,149	$ 130,070	$ 76,621	$ 106,378	$ 91,401	$ 43,635	$ 76,018	$ 100,291		$ 333,218	$ 311,345	$ 315,700
Basic earnings per share	$ 0.30	$ 1.93	$ 1.14	$ 1.58	$ 1.36	$ 0.73	$ 1.69	$ 2.24		$ 4.94	$ 5.74	$ 7.07
Diluted earnings per share	$ 0.30	$ 1.92	$ 1.14	$ 1.58	$ 1.36	$ 0.73	$ 1.68	$ 2.23		$ 4.93	$ 5.73	$ 7.06

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Schedule I Summary Of Investments Other Than Investments In Related Parties (Summary Of Investments Other Than Investments In Related Parties) (Details) $ in Thousands	Dec. 31, 2016 USD ($)
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Cost	$ 7,622,386	[1]
Market Value	7,810,974
Amount at Which Shown on the Balance Sheet	7,810,974
Fixed maturity investments
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Cost	6,265,498	[1]
Market Value	6,312,821
Amount at Which Shown on the Balance Sheet	6,312,821
Short-term investments
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Cost	408,811	[1]
Market Value	408,704
Amount at Which Shown on the Balance Sheet	408,704
Equity securities
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Cost	477,778	[1]
Market Value	501,141
Amount at Which Shown on the Balance Sheet	501,141
Other investments
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Cost	470,299	[1]
Market Value	588,308
Amount at Which Shown on the Balance Sheet	588,308
U.S. government and government agencies and authorities
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Cost	1,003,969	[1]
Market Value	1,001,882
Amount at Which Shown on the Balance Sheet	1,001,882
States, municipalities and political subdivisions
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Cost	17,115	[1]
Market Value	18,357
Amount at Which Shown on the Balance Sheet	18,357
Foreign governments
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Cost	180,583	[1]
Market Value	178,919
Amount at Which Shown on the Balance Sheet	178,919
Corporate bonds
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Cost	2,120,463	[1]
Market Value	2,151,610
Amount at Which Shown on the Balance Sheet	2,151,610
Agency mortgage-backed securities
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Cost	1,461,354	[1]
Market Value	1,472,343
Amount at Which Shown on the Balance Sheet	1,472,343
Non-agency mortgage-backed securities
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Cost	603,293	[1]
Market Value	607,791
Amount at Which Shown on the Balance Sheet	607,791
Collateralized loan and debt obligations
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Cost	369,126	[1]
Market Value	371,256
Amount at Which Shown on the Balance Sheet	371,256
Asset-backed securities
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Cost	509,595	[1]
Market Value	510,663
Amount at Which Shown on the Balance Sheet	$ 510,663

[1] Investments in fixed maturity investments and short-term investments are shown at amortized cost.

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Schedule II Condensed Financial Statement Information Of The Registrant (Balance Sheets) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Jul. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Condensed Financial Statements, Captions [Line Items]
Preferred Stock, Shares Issued	9,200	9,209,200
Preferred Stock, Shares Outstanding	9,200	9,209,200
Common shares, ordinary, number of shares issued	67,627,901	66,797,991
Common shares, ordinary, number of shares outstanding	67,627,901	66,797,991
Assets [Abstract]
Cash and cash equivalents	$ 1,149,541	$ 1,177,750		$ 745,472	$ 845,851
Goodwill and intangible assets	468,374	553,960		153,405
Other assets	288,510	187,383
Total assets	14,122,861	13,241,525
Liabilities [Abstract]
Debt	705,292	717,650
Deferred tax liability	13,074	17,315
Other liabilities	383,036	344,596
Total liabilities	8,980,728	8,117,453
Stockholders' Equity Attributable to Parent [Abstract]
Series B and C, non-cumulative - 9,200 issued and outstanding (2015 - 9,209,200)	9	9,209
Common shares, ordinary - 67,627,901 issued and outstanding (2015 - 66,797,991)	67,628	66,798
Additional paid-in capital	1,961,917	2,145,836
Accumulated other comprehensive loss	(58,749)	(46,634)		76,706
Retained earnings	2,911,634	2,681,053
Total shareholders' equity available to Endurance Holdings	4,882,439	4,856,262		3,185,182
Non-controlling interests	259,694	267,810	$ 258,529	0
Total shareholders' equity	5,142,133	5,124,072		3,185,182
Total liabilities and shareholders' equity	$ 14,122,861	$ 13,241,525
Parent Company [Member]
Condensed Financial Statements, Captions [Line Items]
Preferred Stock, Shares Issued	9,200	9,209,200
Preferred Stock, Shares Outstanding	9,200	9,209,200
Common shares, ordinary, number of shares issued	67,627,901	66,797,991
Common shares, ordinary, number of shares outstanding	67,627,901	66,797,991
Assets [Abstract]
Investment in subsidiary	$ 5,296,821	$ 5,683,801
Cash and cash equivalents	3,375	3,206		$ 240	$ 6,517
Amounts due from subsidiaries	513,621	105,497
Goodwill and intangible assets	45,710	51,938
Other assets	12,833	14,435
Total assets	5,872,360	5,858,877
Liabilities [Abstract]
Debt	708,378	707,591
Other liabilities	21,849	27,214
Total liabilities	730,227	734,805
Stockholders' Equity Attributable to Parent [Abstract]
Series B and C, non-cumulative - 9,200 issued and outstanding (2015 - 9,209,200)	9	9,209
Common shares, ordinary - 67,627,901 issued and outstanding (2015 - 66,797,991)	67,628	66,798
Additional paid-in capital	1,961,917	2,145,836
Accumulated other comprehensive loss	(58,749)	(46,634)
Retained earnings	2,911,634	2,681,053
Total shareholders' equity available to Endurance Holdings	4,882,439	4,856,262
Non-controlling interests	259,694	267,810
Total shareholders' equity	5,142,133	5,124,072
Total liabilities and shareholders' equity	$ 5,872,360	$ 5,858,877

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Schedule II Condensed Financial Statement Information Of The Registrant (Statements of Income) (Details) - USD ($) $ in Thousands	3 Months Ended								5 Months Ended	12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Revenues
Net investment income	$ 59,196	$ 62,236	$ 43,977	$ 11,181	$ 23,180	$ 16,533	$ 32,252	$ 41,861		$ 176,590	$ 113,826	$ 131,543
Net realized and unrealized gains	(45,958)	13,405	6,347	13,787	(20,238)	5,029	9,680	18,189		(12,419)	12,660	14,283
Total revenues										2,516,153	2,097,530	2,003,393
Expenses
General and administrative expenses										248,146	259,791	247,387
Amortization of intangibles										84,624	30,620	6,484
Net foreign exchange (gains) losses	(11,628)	(18,576)	(32,751)	(11,729)	(2,190)	8,621	12,981	7,552		(74,684)	26,964	3,839
Interest expense										43,860	41,260	40,968
Income before income taxes										380,966	359,473	348,840
Income tax benefit										181	(4,362)	(390)
Net income	29,475	139,400	87,628	124,644	107,896	54,530	84,206	108,479		381,147	355,111	348,450
Net income attributable to non-controlling interests	(5,674)	(5,679)	(3,714)	(9,063)	(8,309)	(2,707)	0	0	$ (11,016)	(24,130)	(11,016)	0
Net income available to Endurance Holdings	23,801	133,721	83,914	115,581	99,587	51,823	84,206	108,479		357,017	344,095	348,450
Preferred dividends	(3,652)	(3,651)	(7,293)	(9,203)	(8,186)	(8,188)	(8,188)	(8,188)		(23,799)	(32,750)	(32,750)
Net income available to common and participating common shareholders	$ 20,149	$ 130,070	$ 76,621	$ 106,378	$ 91,401	$ 43,635	$ 76,018	$ 100,291		333,218	311,345	315,700
Parent Company [Member]
Revenues
Net investment income										5	9	248
Net realized and unrealized gains										206	332	1,957
Other income										10,200	10,200	10,200
Total revenues										10,411	10,541	12,405
Expenses
General and administrative expenses										41,879	93,237	61,325
Amortization of intangibles										6,228	1,558	0
Net foreign exchange (gains) losses										(20)	5	(1)
Interest expense										43,833	41,188	40,968
Total expenses										91,920	135,988	102,292
Loss before income taxes and equity in net income of subsidiaries										(81,509)	(125,447)	(89,887)
Equity in net income of subsidiaries										462,656	480,558	438,337
Net income										381,147	355,111	348,450
Net income attributable to non-controlling interests										(24,130)	(11,016)	0
Net income available to Endurance Holdings										357,017	344,095	348,450
Preferred dividends										(23,799)	(32,750)	(32,750)
Net income available to common and participating common shareholders										$ 333,218	$ 311,345	$ 315,700

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Schedule II Condensed Financial Statement Information Of The Registrant (Statements Of Cash Flows) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cash flows used in operating activities:
Net income	$ 29,475	$ 139,400	$ 87,628	$ 124,644	$ 107,896	$ 54,530	$ 84,206	$ 108,479	$ 381,147	$ 355,111	$ 348,450
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization									105,026	51,457	27,234
Net realized and unrealized gains									12,419	(12,660)	(14,283)
Deferred taxes									(19,709)	(2,727)	(1,414)
Stock-based compensation expense									36,445	55,512	31,006
Other assets									(6,855)	(25,683)	(17,132)
Other liabilities									(28,081)	76,194	127,037
Net cash flows provided by operating activities									415,492	245,457	266,261
Cash flows provided by investing activities:
Proceeds from sales and maturities of available for sale investments									3,477,688	5,725,794	4,145,940
Purchases of available for sale investments									(2,752,599)	(5,421,949)	(4,449,225)
Purchases of fixed assets									(17,568)	(26,988)	(40,932)
Net cash flows (used in) provided by investing activities									(19,222)	486,793	(236,881)
Cash flows used in financing activities
Issuance of common shares									10,076	24,823	2,305
Issuance of Series C, non-cumulative preferred shares									0	222,963	0
Redemption of Series A and B, non-cumulative preferred shares									(230,000)	(200,000)	0
Offering and registration costs paid									(319)	(617)	0
Bridge facility costs paid									0	0	(4,750)
Settlement of restricted shares									(11,732)	(14,535)	(4,039)
Repayments of debt									(13,683)	(199,454)	(686)
Dividends paid on preferred shares									(23,799)	(32,750)	(32,750)
Dividends paid on common shares									(102,417)	(78,473)	(60,524)
Net cash flows used in financing activities									(403,583)	(274,774)	(99,738)
Net (decrease) increase in cash and cash equivalents									(28,209)	432,278	(100,379)
Cash and cash equivalents, beginning of year				1,177,750				745,472	1,177,750	745,472	845,851
Cash and cash equivalents, end of year	1,149,541				1,177,750				1,149,541	1,177,750	745,472
Parent Company [Member]
Cash flows used in operating activities:
Net income									381,147	355,111	348,450
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization									8,380	3,738	6,785
Net realized and unrealized gains									(206)	(332)	(1,957)
Stock-based compensation expense									9,339	28,604	15,093
Equity in net earnings of subsidiary									(462,656)	(480,558)	(438,337)
Other assets									327	(893)	(177)
Other liabilities									(3,524)	(17,377)	1,626
Net cash flows provided by operating activities									(67,193)	(111,707)	(68,517)
Cash flows provided by investing activities:
Proceeds from sales and maturities of available for sale investments									0	0	26,094
Purchases of available for sale investments									0	0	(24,137)
Contributions of capital made to subsidiaries									4,655	0	0
Dividends received from subsidiary									809,840	341,524	145,203
Net amounts paid to subsidiaries									(379,632)	35,383	14,819
Purchases of fixed assets									0	(11,626)	0
Proceeds from disposals of fixed assets									0	6,606	19
Net cash received for subsidiary acquisition									0	19,875	0
Net cash flows (used in) provided by investing activities									425,553	391,762	161,998
Cash flows used in financing activities
Issuance of common shares									10,076	24,823	2,305
Issuance of Series C, non-cumulative preferred shares									0	222,963	0
Redemption of Series A and B, non-cumulative preferred shares									(230,000)	(200,000)	0
Offering and registration costs paid									(319)	(617)	0
Bridge facility costs paid									0	0	(4,750)
Settlement of restricted shares									(11,732)	(14,535)	(4,039)
Repayments of debt									0	(198,500)	0
Dividends paid on preferred shares									(23,799)	(32,750)	(32,750)
Dividends paid on common shares									(102,417)	(78,473)	(60,524)
Net cash flows used in financing activities									(358,191)	(277,089)	(99,758)
Net (decrease) increase in cash and cash equivalents									169	2,966	(6,277)
Cash and cash equivalents, beginning of year				$ 3,206				$ 240	3,206	240	6,517
Cash and cash equivalents, end of year	$ 3,375				$ 3,206				$ 3,375	$ 3,206	$ 240

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Schedule III Supplementary Insurance Information (Supplementary Insurance Information) (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Supplementary Insurance Information, by Segment [Line Items]
Deferred Acquisition Costs		$ 276,639	$ 255,501	$ 207,368
Reserve for Losses and Loss Expenses		4,905,138	4,510,415	3,846,859
Unearned Premiums		1,994,676	1,789,148	1,254,519
Net Premiums Earned		2,363,660	1,978,453	1,863,978
Net Investment Income	[1]	176,590	113,826	131,543
Net Losses and Loss Expenses		1,321,052	917,108	970,162
Amortization of Deferred Acquisition Costs		460,483	347,885	319,513
Other Operating Expenses	[2]	248,146	259,791	247,387
Net Premiums Written		2,369,935	1,950,470	1,934,206
Reinsurance
Supplementary Insurance Information, by Segment [Line Items]
Deferred Acquisition Costs		204,137	197,285	172,787
Reserve for Losses and Loss Expenses		2,106,149	2,016,521	1,723,087
Unearned Premiums		870,317	886,996	611,740
Net Premiums Earned		1,354,285	1,153,901	1,030,066
Net Investment Income	[1]	0	0	0
Net Losses and Loss Expenses		636,874	416,241	375,601
Amortization of Deferred Acquisition Costs		310,720	267,633	254,145
Other Operating Expenses	[2]	107,404	119,779	98,912
Net Premiums Written		1,313,681	1,070,097	1,073,800
Insurance
Supplementary Insurance Information, by Segment [Line Items]
Deferred Acquisition Costs		72,502	58,216	34,581
Reserve for Losses and Loss Expenses		2,798,989	2,493,894	2,123,772
Unearned Premiums		1,124,359	902,152	642,779
Net Premiums Earned		1,009,375	824,552	833,912
Net Investment Income	[1]	0	0	0
Net Losses and Loss Expenses		684,178	500,867	594,561
Amortization of Deferred Acquisition Costs		149,763	80,252	65,368
Other Operating Expenses	[2]	140,742	140,012	148,475
Net Premiums Written		$ 1,056,254	$ 880,373	$ 860,406

[1] Because the Company does not manage its assets by segment, investment income is not allocated to the individual segments.

[2] General and administrative expenses incurred by segments are allocated directly. Remaining general and administrative expenses not incurred by the segments are classified as corporate expenses and are not allocated to the individual business segments.

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Schedule IV Reinsurance (Summary Of Reinsurance) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items]
Gross Amount	$ 2,570,494	$ 2,085,901	$ 1,716,128
Ceded to Other Companies	1,832,235	1,370,391	959,870
Assumed from Other Companies	1,631,676	1,234,960	1,177,948
Net premiums written	2,369,935	1,950,470	1,934,206
Property and liability insurance
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items]
Gross Amount	2,570,494	2,085,901	1,716,128
Ceded to Other Companies	1,832,235	1,370,391	959,870
Assumed from Other Companies	1,631,676	1,234,960	1,177,948
Net premiums written	$ 2,369,935	$ 1,950,470	$ 1,934,206
Percentage of Amount Assumed to Net	69.00%	63.00%	61.00%

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Schedule V - Valuation and Qualifying Accounts (Details) - Valuation allowance for deferred tax assets - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at Beginning of Year		$ 131,138	$ 121,409	$ 122,680
Charged to costs and expenses		0	0	0
Charged to other accounts		0	13,300	0
Deductions	[1]	26,330	3,571	1,271
Balance at End of Year		$ 104,808	$ 131,138	$ 121,409

[1] Credited to the related asset account

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Schedule VI Underwriters (Schedule Of Underwriters) (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Supplemental Information for Property, Casualty Insurance Underwriters [Line Items]
Deferred Acquisition Costs		$ 276,639	$ 255,501	$ 207,368
Reserve for Losses and Loss Expenses		4,905,138	4,510,415	3,846,859
Discount if any, Reserve for Losses and Loss Expenses		0	0	0
Unearned Premiums		1,994,676	1,789,148	1,254,519
Net Premiums Earned		2,363,660	1,978,453	1,863,978
Net Investment Income	[1]	176,590	113,826	131,543
Net Losses And Loss Expenses, Current year		1,542,602	1,160,572	1,203,977
Net Losses And Loss Expenses, Prior Year		(221,550)	(243,464)	(233,815)
Amortization of Deferred Acquisition Costs		460,483	347,885	319,513
Paid Losses and Loss Expenses		1,185,890	1,133,637	1,158,212
Net Premiums Written		2,369,935	1,950,470	1,934,206
Reinsurance
Supplemental Information for Property, Casualty Insurance Underwriters [Line Items]
Deferred Acquisition Costs		204,137	197,285	172,787
Reserve for Losses and Loss Expenses		2,106,149	2,016,521	1,723,087
Discount if any, Reserve for Losses and Loss Expenses		0	0	0
Unearned Premiums		870,317	886,996	611,740
Net Premiums Earned		1,354,285	1,153,901	1,030,066
Net Investment Income	[1]	0	0	0
Net Losses And Loss Expenses, Current year		781,287	577,704	528,846
Net Losses And Loss Expenses, Prior Year		(144,413)	(161,463)	(153,245)
Amortization of Deferred Acquisition Costs		310,720	267,633	254,145
Paid Losses and Loss Expenses		593,872	507,031	457,636
Net Premiums Written		1,313,681	1,070,097	1,073,800
Insurance
Supplemental Information for Property, Casualty Insurance Underwriters [Line Items]
Deferred Acquisition Costs		72,502	58,216	34,581
Reserve for Losses and Loss Expenses		2,798,989	2,493,894	2,123,772
Discount if any, Reserve for Losses and Loss Expenses		0	0	0
Unearned Premiums		1,124,359	902,152	642,779
Net Premiums Earned		1,009,375	824,552	833,912
Net Investment Income	[1]	0	0	0
Net Losses And Loss Expenses, Current year		761,315	582,868	675,131
Net Losses And Loss Expenses, Prior Year		(77,137)	(82,001)	(80,570)
Amortization of Deferred Acquisition Costs		149,763	80,252	65,368
Paid Losses and Loss Expenses		592,018	626,606	700,576
Net Premiums Written		$ 1,056,254	$ 880,373	$ 860,406

[1] Because the Company does not manage its assets by segment, investment income is not allocated to the individual segments.