Platinum Reports Q2 Financial Results

Despite a slight drop in total revenues, Bermuda-based Platinum Underwriters Holdings reported net income for the second quarter of 2009 of $98.1 million, compared to $99.755 million in Q2 2008. On a diluted earnings per share basis, however, Platinum returned $1.90, compared to $1.82 in Q2 2008.

The earnings bulletin noted that the “results for the quarter include net premiums earned of $232.5 million, a decrease of 9.9 percent from the same quarter last year, and net favorable development of $23.6 million, as compared with net favorable development of $36.8 million for the same quarter last year.”

CEO Michael D. Price commented, “Our record net income per diluted common share reflects disciplined underwriting, net favorable reserve development, lower than expected catastrophe activity, good investment results and active capital management. Our book value per share was $39.23 as of June 30, 2009, an increase of 9.7 percent from March 31, 2009 and 13.4 percent from December 31, 2008.”

He added that “so far this year, we have found more attractive underwriting conditions for property and marine than for casualty. However, we may be approaching the bottom of the casualty reinsurance market.”

Results for the quarter ended June 30, 2009 are summarized as follows:
— Net income was $98.1 million, or $1.90 per diluted common share.
— Net premiums written were $208.1 million and net premiums earned were $232.5 million.
— GAAP combined ratio was 76.9 percent.
— Net investment income was $44.1 million.
— Net realized gains on investments were $10.8 million.
Results for the quarter ended June 30, 2009 as compared with the quarter ended June 30, 2008 are summarized as follows:
— Net income decreased $4.2 million (or 4.1 percent).
— Net premiums written decreased $16.7 million (or 7.4 percent) and net premiums earned decreased $25.5 million (or 9.9 percent).
— GAAP combined ratio increased 8.5 percentage points.
— Net investment income decreased $2.9 million (or 6.1 percent).
— Net realized gains on investments were $10.8 million for the quarter ended June 30, 2009 compared with net realized losses on investments of $6.2 million for the quarter ended June 30, 2008.

Results for the six months ended June 30, 2009 are summarized as follows:
— Net income was $183.1 million, or $3.47 per diluted common share.
— Net premiums written were $453.4 million and net premiums earned were $480.2 million.
— GAAP combined ratio was 78.5 percent.
— Net investment income was $78.3 million.
— Net realized gains on investments were $31.4 million.
Results for the six months ended June 30, 2009 as compared with the six months ended June 30, 2008 are summarized as follows:
— Net income decreased $24.5 million (or 11.8 percent).
— Net premiums written decreased $67.7 million (or 13.0 percent) and net premiums earned decreased $79.6 million (or 14.2 percent).
— GAAP combined ratio increased 4.8 percentage points.
— Net investment income decreased $17.7 million (or 18.4 percent).
— Net realized gains on investments were $31.4 million for the six months ended June 30, 2009 compared with net realized losses on investments of $3.2 million for the six months ended June 30, 2008.

The full report is contained in the financial supplement on the Financial Reports page of the Investor Relations section of its website at: www.platinumre.com. Access to the company’s earnings teleconference, held July 22, may also be obtained on the web site.

A replay is available from 11:00 a.m. Eastern time on Wednesday, July 22, 2009 until midnight Eastern time on Wednesday, July 29, 2009. To access the replay by telephone, dial 888-203-1112 (US callers) or 719-457-0820 (international callers) and specify passcode 1518494. The teleconference will also be archived on the Investor Relations section of Platinum’s website.

Source: Platinum Underwriters Holdings

Topics Profit Loss