Platinum Underwriters Posts $26.6 Million Q2 Net Income

Bermuda-based Platinum Underwriters Holdings, Ltd. reported second quarter net income of $26.6 million, and basic and diluted net income per common share for the quarter of $0.62 and $0.57, respectively.

Board Chairman Steven H. Newman, commented: “Each of our segments contributed meaningfully to our underwriting results this quarter, particularly our finite risk segment. The overall performance of Platinum’s diversified underwriting portfolio was excellent.”

The company, which was formed by the St. Paul in a spin-off of its reinsurance operations, went public last year. It reported gross revenues for the period of $296 million. The net income figure exceeded most analysts’ forecasts. Recently appointed CEO Gregory Morrison, commented: “I am pleased to have joined Platinum at such an exciting time in its development. Results are excellent and prospects for the future are bright.”

The bulletin stated: Second quarter net premiums written were $307.2 million, net premiums earned were $279.4 million and net investment income was $13.4 million. The GAAP combined ratio for the second quarter was 84.7%, reflecting losses and loss adjustment expenses of $156.8 million or 56.1% of net premiums earned, acquisition expenses of $60.4 million or 21.6% of net premiums earned and underwriting expenses of $19.6 million or 7.0% of net premiums earned.

“Second quarter net premiums written for Platinum’s property and marine, casualty and finite risk segments were $83.5 million, $132.3 million and $91.4 million, respectively. Combined ratios for these segments were 80.8%, 99.6% and 69.6%, respectively.

“For the six months ended June 30, 2003, net income was $57.2 million. Basic and diluted net income per common share was $1.33 and $1.23, respectively.” During the same period “net premiums written were $667.3 million, net premiums earned were $517.4 million and net investment income was $27.6 million. The GAAP combined ratio for the six months ended June 30, 2003 was 85.9%, reflecting losses and loss adjustment expenses of $295.6 million or 57.1% of net premiums earned, acquisition expenses of $112.1 million or 21.7% of net premiums earned and underwriting expenses of $36.9 million or 7.1% of net premiums earned.

“Net premiums written for Platinum’s property, casualty and finite risk segments, for the six months ended June 30, 2003, were $201.3 million, $246.0 million and $220.1 million, respectively. Combined ratios for these segments were 78.1%, 99.7% and 78.6%, respectively.”