‘Challenging Year’ For Platinum
Bermuda’s Platinum Underwriters Holdings, Ltd.today [Feb. 8] reported net income of $7.1 million and diluted earnings per common share of $0.19 for the quarter ended December 31, 2011 and a net loss of $224.1 million and loss per common share of $6.04 for the year ended December 31, 2011.
The results for the quarter include net premiums earned of $167.3 million, net favorable development of $27.1 million and net investment income of $29.8 million.
The results also reflect the net negative impact of $55.4 million from 2011 major catastrophe losses, net of retrocessional coverage, reinstatement premiums and taxes, as well as net impairment losses of $13.1 million, net of taxes.
Michael D. Price, Platinum’s Chief Executive Officer, commented, “2011 was a challenging year for Platinum with catastrophe losses dominating our results.
“Our book value per common share was $47.59 as of December 31, 2011, a decrease of 5.2% for the full year. The book value per common share reduction was muted relative to the return on equity due to strong performance of our investment portfolio on a total return basis and the favorable effects of buying back shares.”
Mr. Price added, “Absent major events in the insurance or capital markets, we expect relative stability in overall reinsurance rate adequacy in 2012. We believe we are well positioned to participate profitably in select reinsurance classes, prudently manage our investment portfolio, and continue actively buying back shares.”
Results for the quarter ended December 31, 2011 are summarised as follows:
- Net income was $7.1 million and diluted earnings per common share were $0.19.
- Net premiums written were $153.7 million and net premiums earned were $167.3 million.
- GAAP combined ratio was 102.2%.
- Net investment income was $29.8 million.
- Net realized gains on investments were $0.7 million.
Results for the quarter ended December 31, 2011 as compared with the quarter ended December 31, 2010 are summarised as follows:
- Net income was $7.1 million compared to net loss of $17.7 million.
- Net premiums written decreased $8.3 million (or 5.1%) and net premiums earned decreased $17.7 million (or 9.5%).
- GAAP combined ratio decreased 5.6 percentage points.
- Net investment income decreased $0.7 million (or 2.2%).
- Net realized gains on investments decreased $7.8 million.
- Net premiums written for Platinum’s Property and Marine, Casualty and Finite Risk segments for the quarter ended December 31, 2011 were $76.8 million, $74.5 million and $2.3 million, respectively, representing 50.0%, 48.5% and 1.5%, respectively, of total net premiums written. Combined ratios for these segments were 114.8%, 92.2% and 23.8%, respectively. Compared with the quarter ended December 31, 2010, net premiums written decreased $0.1 million [or 0.1%], $8.1 million [or 9.8%] and $0.1 million [or 5.1%] in the Property and Marine, Casualty and Finite Risk segments, respectively.
Results for the year ended December 31, 2011 are summarised as follows:
- Net loss was $224.1 million and the loss per common share was $6.04.
- Net premiums written were $651.5 million and net premiums earned were $689.5 million.
- GAAP combined ratio was 143.0%.
- Net investment income was $125.9 million.
- Net realized gains on investments were $3.9 million.
Results for the year ended December 31, 2011 as compared with the year ended December 31, 2010 are summarized as follows:
- Net loss was $224.1 million compared to net income of $215.5 million.
- Net premiums written decreased $109.1 million (or 14.3%) and net premiums earned decreased $90.5 million (or 11.6%).
- GAAP combined ratio increased 57.0 percentage points.
- Net investment income decreased $8.5 million (or 6.3%).
- Net realized gains on investments decreased $103.9 million.
Net premiums written for Platinum’s Property and Marine, Casualty and Finite Risk segments for the year ended December 31, 2011 were $344.7 million, $297.0 million and $9.8 million, respectively, representing 52.9%, 45.6% and 1.5%, respectively, of total net premiums written.
Combined ratios for these segments were 197.4%, 84.8% and 78.2%, respectively. Compared with the year ended December 31, 2010, net premiums written decreased $68.0 million [or 16.5%], $32.4 million [or 9.8%] and $8.7 million [or 46.8%] in the Property and Marine, Casualty and Finite Risk segments, respectively.
Total assets were $4.6 billion as of December 31, 2011, a decrease of $62.7 million [or 1.4%] from December 31, 2010. Fixed maturity investments and cash and cash equivalents were $4.2 billion as of December 31, 2011, a decrease of $42.5 million [or 1.0%] from December 31, 2010.
Shareholders’ equity was $1.7 billion as of December 31, 2011, a decrease of $204.6 million (or 10.8%) from $1.9 billion as of December 31, 2010.
Book value per common share was $47.59 as of December 31, 2011 based on 35.5 million common shares outstanding, a decrease of $2.61 [or 5.2%] from $50.20 as of December 31, 2010 based on 37.8 million common shares outstanding.
During the quarter ended December 31, 2011, the company repurchased an aggregate of 1,807,068 common shares for $60.8 million at a weighted average cost, including commissions, of $33.64 per share.
During the year ended December 31, 2011, the company repurchased an aggregate of 2,569,068 common shares for approximately $94.7 million at a weighted average cost, including commissions, of $36.86 per share. The company also purchased 2,500,000 options held by RenaissanceRe Holdings Ltd. for $47.9 million on January 20, 2011.
Platinum Underwriters Holdings 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.
