Platinum Underwriters Holdings, Ltd. refused to follow the current earnings report script – declines in the fourth quarter, increases for the full year. The Bermuda-based reinsurer reported fourth quarter net after tax income rose to $102.19 million, compared to $85.95 million for the same period of 2006. Net income for the full year was of $357 million, or $5.38 per diluted common share, compared to $329 million for 2006.
The results for the fourth quarter also showed net premiums earned of $302.0 million, a decrease of 4.3 percent from the same quarter last year, net favorable development of $28.3 million, compared with net favorable development of $23.7 million in the same quarter last year, and net investment income of $53.6 million, an increase of 5.4 percent from the same quarter last year.
CEO Michael D. Price commented: “Platinum produced record results in 2007 reflecting solid current period underwriting margins, strong investment income, the absence of major catastrophes and favorable prior period development. Our book value per share increased 20.2 percent from December 31, 2006 to $34.04 and reflects share repurchases during the year of $240.5 million at an average price of $34.68.”
Price also explained, “in response to deteriorating reinsurance market conditions, we cut back our underwriting activity at January 1st. Our underwriting discipline coupled with greater retention by ceding companies has resulted in approximately 18 percent less premium bound at January 1st as compared to last year.”
Net premiums written in the fourth quarter totaled $241 million and net premiums earned were $302 million. The GAAP combined ratio was 75.3 percent, while net investment income was $53.6 million.
The full report and a replay of the earnings teleconference may be obtained on the Company’s web site at: www.platinumre.com.
Source: Platinum Holdings
Was this article valuable?
Here are more articles you may enjoy.