Platinum Underwriters: $15 Million Net Income
Bermuda based Platinum Underwriters Holdings,Ltd today [Apr 21] reported net income of $15.4 million for the quarter ended March 31, 2010.
The results for the quarter include net premiums earned of $220.2 million, net favorable development of $49.5 million and net investment income and net realized gains on investments of $43.0 million.
Platinum’s Chief Executive Officer Michael D. Price said:
Platinum produced profits in the first quarter of 2010 despite the numerous events around the world giving rise to insured losses. Our results reflect our disciplined approach to underwriting, investing and capital management. Our book value per share was $46.59 as of March 31, 2010, an increase of 3.0% from December 31, 2009.
It has been a challenging start to 2010, but we are pleased with the portfolio of treaty reinsurance risks we have been able to assemble thus far. To the extent we cannot fully deploy our capital in the reinsurance business we will seek to return excess capital to our shareholders.
Results for the quarter ended March 31, 2010 are summarized as follows:
- Net income was $15.4 million or $0.32 per diluted common share.
- Net premiums written were $247.4 million and net premiums earned were $220.2 million.
- GAAP combined ratio was 98.7%.
- Net investment income was $37.5 million.
- Net realized gains on investments were $5.5 million.
Results for the quarter ended March 31, 2010 compared with the quarter ended March 31, 2009 are summarized as follows:
- Net income decreased $69.5 million (or 81.8%).
- Net premiums written increased $2.2 million (or 0.9%) and net premiums earned decreased $27.6 million (or 11.1%).
- GAAP combined ratio increased 18.6 percentage points.
- Net investment income increased $3.3 million (or 9.5%).
- Net realized gains on investments decreased $15.1 million.
Net premiums written for Platinum’s Property and Marine, Casualty and Finite Risk segments for the quarter ended March 31, 2010 were $146.8 million, $93.7 million and $6.9 million, respectively, representing 59.3%, 37.9% and 2.8%, respectively, of total net premiums written.
Combined ratios for these segments were 118.6%, 63.5% and 226.4%, respectively. Compared with the quarter ended March 31, 2009, net premiums written increased $5.1 million (or 3.6%) in the Property and Marine segment, decreased $4.3 million (or 4.3%) in the Casualty segment and increased $1.4 million (or 24.8%) in the Finite Risk segment.
Total assets were $5.09 billion as of March 31, 2010, an increase of $72.5 million (or 1.4%) from $5.02 billion as of December 31, 2009. Fixed maturity investments and cash and cash equivalents were $4.52 billion as of March 31, 2010, an increase of $146.2 million (or 3.4%) from $4.37 billion as of December 31, 2009.
