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Endurance Specialty Holdings Ltd. 10 July 2008

Company News Alert

Significant decline in NYSE common stock price since our previous update report

NYSE HOLD Endurance Specialty Holdings Ltd.’s (Endurance) NYSE common stock price has witnessed a significant
Direct access
decline since to theupdate
our previous fullreport,
report free investor
reflecting of charge at regarding broad-based weakness
concerns
Common in the global financial markets and its impact on the insurance and reinsurance industry coupled with
http://www.iirgroup.com/researchoracle/viewreport/show/20280
increasing competition and softening premium rates, and following weaker-than-expected 1Q 08
Stock results. In view of this, we are likely to revise our estimates and target price downwards in our next
Ticker: ENH update report. Therefore, we maintain our current HOLD rating for the NYSE common stock even
Target price: US$40.42 though the current price suggests a BUY.
Current price: US$28.95
Price change We will reassess our common stock rating for Endurance in our next full update report.
(22.9%)
since last report:

European HOLD Although the current target price suggests a BUY rating, we maintain our current HOLD rating for the
European stock based on our fundamental outlook, and intend to reduce our target price in our next
Stock1 full update report. We no longer expect a significant currency impact on the European common stock
Ticker: ENH.F over our investment horizon.
Target price: €29.72
Current price: €18.98
Price change
(22.3%) We will reassess the European stock rating for Endurance in our next full update report.
since last report:

Supervisor: Somnath Banerjee

Analyst: Dewanshi Doshi
Editor: Heloise Capon
Global Research Director:
Satish Betadpur, CFA
Next news due:
2Q 08 results, 29 July 2008
Investment horizon - short term actionable trading strategies
This report addresses the needs of strategic investors with a long term investment horizon of 6-12 months. If this
report is provided to you by your broker under the Global Settlement, you may now also access (free of charge) the
short term trading outlook that we publish from time to time for this issuer, looking at the coming 5-30 days for
readers with a shorter trading horizon. These are available online only at www.researchoracle.com
In our 4Q 07 and FY 2007 update report, dated 07 March 2008, we downgraded the Endurance NYSE
common stock rating from a BUY to a HOLD on fundamental grounds with a 6-12 month target price of
US$40.42, indicating a potential upside of 8%. The European stock was reiterated a BUY with a target
price of €29.72, indicating a potential upside of 22%. However, in our company news alert dated 02
May 2008, the European stock was downgraded from a BUY to a HOLD following a change in currency
impact expectation.
The Endurance NYSE common stock price has declined 22.9% since our previous update report to
close at a 52-week low of US$28.95 on 09 July 2008. We believe that the decline in the common
stock price, with a steep decline following the release of weak 1Q 08 results, primarily reflects investor
concerns regarding weakness in global financial markets and its impact on the insurance and
reinsurance industry, in line with the performance of the US financial market. Concern over increasing
competition and softening premium rates has also contributed to the overall decline in the NYSE
common stock price.
In view of the softening premium rates in the industry and weakness in global financial markets, we
are likely to revise our estimates and target prices downwards when we come to revalue the stock in
our next full update report. Therefore, we maintain our current HOLD rating, although the current price
suggests a BUY.

Footnotes
1The European stock has had a low average daily trading volume of less than US$1 mn over the last 12 months.

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