Platinum Underwriters’ First Quarter Results
Platinum Underwriters Holdings, Ltd. — a Bermuda-based provider of property and casualty reinsurance — coverage yesterday [Apr. 17] reported net income of $86.5 million and diluted earnings per common share of $2.63 for the quarter ended March 31, 2013.
The results for the quarter include net premiums earned of $126.9 million, net favorable development of $54.5 million, net investment income of $18.5 million, net realized gains on investments of $13.3 million and no losses from 2013 major catastrophes.
Michael D. Price, Platinum’s Chief Executive Officer, commented, “Our results reflect favorable prior period development, the absence of major catastrophe activity and active capital management. Our book value per common share grew to $60.23 as of March 31, 2013, an increase of 4.0% from December 31, 2012.”
Mr. Price added, “Absent major events in the insurance or capital markets, we expect stability in overall reinsurance rate adequacy. Given our attractive balance sheet composition and broad market access, we are well positioned to take advantage of quality reinsurance underwriting, investment and capital management opportunities as they arise.”
Results for the quarter ended March 31, 2013 are summarised as follows:
- Net income was $86.5 million and diluted earnings per common share were $2.63.
- Net premiums written were $134.8 million and net premiums earned were $126.9 million.
- Combined ratio was 45.4 percent
- Net investment income was $18.5 million.
- Net realised gains on investments were $13.3 million.
Results for the quarter ended March 31, 2013 as compared with the quarter ended March 31, 2012 are summarized as follows:
- Net income was $86.5 million compared to net income of $53.3 million.
- Net premiums written decreased $8.9 million [or 6.2 percent] and net premiums earned decreased $11.4 million [or 8.2 percent].
- Combined ratio decreased 42.8 percentage points.
- Net investment income decreased $10.0 million [or 35.1 percent].
- Net realized gains on investments decreased $9.0 million.
- Net premiums written for Platinum’s Property and Marine, Casualty and Finite Risk segments for the quarter ended March 31, 2013 were $59.4 million, $70.8 million and $4.5 million, respectively, representing 44.1 percent, 52.6 percent and 3.3 percent, respectively, of total net premiums written. Combined ratios for these segments were 2.6 percent, 73.0 percent and 110.2 percent, respectively. Compared with the quarter ended March 31, 2012, net premiums written decreased $8.7 million [or 12.8 percent] and $3.6 million [or 4.8 percent] in the Property and Marine and Casualty segments, respectively, and increased $3.4 million [or 305.6 percent] in the Finite Risk segment.
Total assets were $4.3 billion as of March 31, 2013, a decrease of $64.0 million [or 1.5 percent] from December 31, 2012. Investments and cash and cash equivalents were $3.9 billion as of March 31, 2013, a decrease of $64.5 million [or 1.6 percent] from December 31, 2012.
Shareholders’ equity was $1.9 billion as of March 31, 2013, an increase of $18.1 million [or 1.0 percent] from December 31, 2012. Book value per common share was $60.23 as of March 31, 2013 based on 31.8 million common shares outstanding, an increase of $2.33 [or 4.0 percent] from $57.90 as of December 31, 2012 based on 32.7 million common shares outstanding. During the quarter ended March 31, 2013, the company repurchased an aggregate of 1,291,864 common shares for $68.3 million at a weighted average cost, including commissions, of $52.88 per share.
Platinum has posted a financial supplement on the Financial Reports page of the Investor Relations section of its website. The Financial Supplement provides additional detail regarding the financial performance of Platinum and its business segments.
TeleconferencePlatinum will host a teleconference to discuss its financial results on Thursday, April 18, 2013 at 8:00 a.m. Eastern time. The call may be accessed by dialing 888-264-8892 [US callers] or 913-312-0724 [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. Please specify passcode 9883734.
The teleconference will be recorded and a replay will be available from 11:00 a.m. Eastern time from today until 11:00 a.m. Eastern time on Thursday, April 25, 2013. To access the replay by telephone, dial 888-203-1112 [US callers] or 719-457-0820 [international callers] and specify passcode 9883734. 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.
Platinum Underwriters Holdings, Ltd. 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.
