Platinum: 2nd Quarter Net Income $124 Million
Bermuda based Platinum Underwriters Holdings, Ltd today [July 20] reported net income of $124.1 million and diluted earnings per common share of $2.68 for the quarter ended June 30, 2010.
The results for the quarter include net premiums earned of $191.4 million, net favorable development of $40.1 million and net investment income and net realized gains on investments of $84.9 million.
Michael D. Price, Platinum’s Chief Executive Officer, commented, “Our record diluted earnings per common share in the second quarter of 2010 reflect Platinum’s disciplined approach to underwriting, strong investment results and active capital management. Our book value per common share was $51.23 as of June 30, 2010, an increase of 10.0% from March 31, 2010 and 13.3% from December 31, 2009.”
Mr. Price added, “So far this year we have assembled an acceptable portfolio of treaty reinsurance risks, repositioned our investment portfolio and deployed free capital into buying back shares, which better aligns our capital base with our business opportunities.”
Results for the quarter ended June 30, 2010 are summarized as follows:
* Net income was $124.1 million and diluted earnings per common share were $2.68.
* Net premiums written were $151.7 million and net premiums earned were $191.4 million.
* GAAP combined ratio was 67.4%.
* Net investment income was $35.4 million.
* Net realized gains on investments were $49.5 million.
Results for the quarter ended June 30, 2010 as compared with the quarter ended June 30, 2009 are summarized as follows:
* Net income increased $26.0 million (or 26.5%).
* Net premiums written decreased $56.4 million (or 27.1%) and net premiums earned decreased $41.0 million (or 17.7%).
* GAAP combined ratio decreased 9.5 percentage points.
* Net investment income decreased $8.7 million (or 19.7%).
* Net realized gains on investments increased $38.7 million.
Net premiums written for Platinum’s Property and Marine, Casualty and Finite Risk segments for the quarter ended June 30, 2010 were $74.1 million, $72.6 million and $5.0 million, respectively, representing 48.8%, 47.9% and 3.3%, respectively, of total net premiums written. Combined ratios for these segments were 59.6%, 75.6% and 84.6%, respectively. Compared with the quarter ended June 30, 2009, net premiums written decreased $39.3 million (or 34.7%), $14.8 million (or 17.0%) and $2.3 million (or 31.3%) in the Property and Marine, Casualty and Finite Risk segments, respectively.
Results for the six months ended June 30, 2010 are summarized as follows:
* Net income was $139.6 million and diluted earnings per common share were $2.95.
* Net premiums written were $399.1 million and net premiums earned were $411.6 million.
* GAAP combined ratio was 84.2%.
* Net investment income was $72.9 million.
* Net realized gains on investments were $54.9 million.
Results for the six months ended June 30, 2010 as compared with the six months ended June 30, 2009 are summarized as follows:
* Net income decreased $43.5 million (or 23.8%).
* Net premiums written decreased $54.2 million (or 12.0%) and net premiums earned decreased $68.6 million (or 14.3%).
* GAAP combined ratio increased 5.7 percentage points.
* Net investment income decreased $5.4 million (or 7.0%).
* Net realized gains on investments increased $23.6 million.
Net premiums written for Platinum’s Property and Marine, Casualty and Finite Risk segments for the six months ended June 30, 2010 were $220.9 million, $166.4 million and $11.9 million, respectively, representing 55.3%, 41.7% and 3.0%, respectively, of total net premiums written. Combined ratios for these segments were 92.6%, 69.5% and 146.9%, respectively. Compared with the six months ended June 30, 2009, net premiums written decreased $34.3 million (or 13.4%), $19.1 million (or 10.3%) and $0.9 million (or 7.0%) in the Property and Marine, Casualty and Finite Risk segments, respectively.
Total assets were $4.93 billion as of June 30, 2010, a decrease of $86.8 million (or 1.7%) from $5.02 billion as of December 31, 2009. Fixed maturity investments and cash and cash equivalents were $4.53 billion as of June 30, 2010, an increase of $158.4 million (or 3.6%) from $4.37 billion as of December 31, 2009.
Shareholders’ equity was $2.11 billion as of June 30, 2010, an increase of $27.7 million (or 1.3%) from $2.08 billion as of December 31, 2009. Book value per common share was $51.23 as of June 30, 2010 based on 41.1 million common shares outstanding, an increase of $6.01 (or 13.3%) from $45.22 as of December 31, 2009 based on 45.9 million common shares outstanding. During the three months ended June 30, 2010, the Company repurchased 4,069,440 common shares for approximately $149.6 million at a weighted average cost, including commissions, of $36.76 per share. During the six months ended June 30, 2010, the Company repurchased an aggregate of 5,757,906 common shares for approximately $212.8 million at a weighted average cost, including commissions, of $36.96 per share.
Platinum will host a teleconference to discuss its financial results on Wednesday, July 21, 2010 at 8:00 a.m. Eastern time. The call can be accessed by dialing 800-750-4984 (US callers) or 913-312-0860 (international callers), or in a listen-only mode via the Investor Relations section of Platinum’s website at www.platinumre.com. Those who intend to participate in 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 11:00 a.m. Eastern time on Wednesday, July 21, 2010 until midnight Eastern time on Thursday, July 29, 2010. To access the replay by telephone, dial 888-203-1112 (US callers) or 719-457-0820 (international callers) and specify passcode 6419932. The teleconference will also be archived on the Investor Relations section of Platinum’s website at www.platinumre.com for the same period of time.
In presenting the Company’s results, management has included and discussed certain schedules containing financial measures that are not calculated under standards or rules that comprise accounting principles generally accepted in the United States (GAAP). Such measures, including segment underwriting income (or loss) and related underwriting ratios are referred to as non-GAAP. These non-GAAP measures may be defined or calculated differently by other companies. Management believes these measures, which are used to monitor the results of operations, allow for a more complete understanding of the underlying business. These measures should not be viewed as a substitute for those determined in accordance with GAAP. A reconciliation of such measures to the most comparable GAAP figures such as income before income tax expense and total shareholders’ equity is presented in the attached financial information in accordance with Regulation G.
Platinum Underwriters Holdings, Ltd. (NYSE: PTP) is a leading provider of property, casualty and finite risk reinsurance coverages, through reinsurance intermediaries, to a diverse clientele on a worldwide basis. Platinum operates through its principal subsidiaries in Bermuda and the United States. Platinum’s operating subsidiaries have financial strength ratings of A (Excellent) from A.M. Best and A (Strong) from Standard & Poor’s.
