Platinum To Buy $98.5 Million Of Options
Platinum Underwriters Holdings, Ltd. repurchased 2,228,611 of its common shares for approximately $91.8 million during the three months ended September 30, 2010. Platinum also announced that it has entered into an agreement to purchase, for an aggregate of $98.5 million in cash, the options issued to The Travelers Companies, Inc. in connection with Platinum’s initial public offering in 2002. The Travelers Options had provided the right to purchase 6,000,000 common shares from Platinum for $27.00 per share and were subsequently amended to provide for net share settlements.
Michael D. Price, President and Chief Executive Officer of Platinum, said: “At this stage of the reinsurance market cycle, active capital management is a critical element of our strategy for enhancing shareholder value.”
The authorized amount remaining under Platinum’s share repurchase program will be approximately $59.7 million following the purchase of the Travelers Options, which is expected to be consummated on October 18, 2010. The Travelers Options will be canceled and the transaction will be recorded in the fourth quarter of 2010.
