A.M. Best Comments on Capital Management Initiatives of Endurance Specialty Holdings Ltd

Business Wire, May 25, 2004

Business Editors

OLDWICK, N.J.--(BUSINESS WIRE)--May 25, 2004

A.M. Best Co. has commented that the financial strength rating of A (Excellent) of Endurance Specialty Insurance Ltd (Endurance Specialty) and its affiliated companies remains unaffected following the announced capital management initiatives of its parent company, Endurance Specialty Holdings Ltd (Endurance) (NYSE: ENH) (both of Hamilton, Bermuda). The rating outlook remains stable.

The capital management initiatives involve the repurchase of approximately two million ordinary shares held by initial investor, Lightyear Capital, for $64.7 million and board authorization to initiate a share buyback program. Endurance used existing cash on hand to fund the $64.7 million share repurchase. Under the share buyback program, Endurance may periodically repurchase up to two million ordinary shares and share equivalents in the open market or through privately negotiated transactions. The timing of any share repurchase is to be predicted on market valuation of the company's shares and internal capital requirements.

A.M. Best expects that Endurance Specialty will continue to manage its capital base conservatively and within an acceptable range supportive of its current financial strength rating.

Following the $64.7 million share repurchase, Endurance's risk-based capital score continues to meet the more stringent requirements established for Bermuda start-up entities. A.M. Best will closely monitor Endurance Specialty's capital adequacy as Endurance shares are repurchased.

A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com.