Platinum Underwriters Holdings, Ltd. reported net income of $77 million, or $1.16 per fully diluted common share, for the quarter ended March 31, 2006, a slight increase from the $73 million it earned in the same quarter of 2005.
The bulletin noted: “The results for the quarter include net premiums earned of $344.3 million, a decrease of 16.2 percent from the same quarter last year, net unfavorable development of $1.2 million, compared with net favorable development of $20.5 million from the same quarter last year, and net investment income of $43.5 million, an increase of 61.7 percent from the same quarter last year.”
A further summary of first quarter 2006 results includes the following:
— Net premiums written were $293.3 million and net premiums earned were $344.3 million.
— GAAP combined ratio was 85.2 percent.
— Net investment income, including interest on funds held, was $43.5million.
Results for the quarter ended March 31, 2006 compared to the quarter ended March 31, 2005 were summarized as follows:
— Net income increased $3.9 million or 5.4 percent.
— Net premiums written decreased $200.5 million (or 40.6 percent) and net
premiums earned decreased $66.7 million (or 16.2 percent).
— GAAP combined ratio increased by 0.7 percentage points.
— Net investment income, which includes funds held, increased $16.6
million (or 61.7 percent).
CEO Michael D. Price commented: “Platinum’s strong underwriting performance, the absence of significant catastrophe activity, and continued investment income growth contributed to net income for the quarter. Net premiums written and earned decreased significantly in our Finite Risk segment and to a lesser extent in our traditional segments reflecting our strategy of underwriting for profitability not market share, and a greater willingness on the part of our clients to retain risk.”
He added: “We will continue to maintain our pricing standards and believe that current market conditions provide opportunities to write a significant, well-priced and diverse portfolio of treaty reinsurance business.”
Platinum will host a teleconference to discuss its financial results today, Thursday, April 27, 2006, at 9:00 a.m. Eastern Time. The call can be accessed by dialing 800-289-0493 (US callers) or 913-981-5510 (international callers) or in a listen-only mode via the Investor Relations section of Platinum’s website at: http://www.platinumre.com . Those who intend to access the teleconference should register at least ten minutes in advance to ensure access to the call.
The teleconference will be recorded and a replay will be available from 12:00 p.m. ET on Thursday, April 27, 2006 until midnight ET on Thursday, May 4, 2006. To access the replay by telephone, dial 888-203-1112 (US callers) or 719-457-0820 (international callers) and specify passcode 5164224. The teleconference will also be archived on the Investor Relations section of Platinum’s website.
Further details of the earnings statement are also available on the Website.
Topics Underwriting
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