HAMILTON, Bermuda, July 21 /PRNewswire-FirstCall/ -- Platinum Underwriters Holdings, Ltd. (NYSE: PTP) today reported net income of $98.1 million, which is a record $1.90 per diluted common share, for the quarter ended June 30, 2009.
The results for the quarter include net premiums earned of $232.5 million, a decrease of 9.9% from the same quarter last year, and net favorable development of $23.6 million, as compared with net favorable development of $36.8 million for the same quarter last year.
Michael D. Price, Platinum's Chief Executive Officer, commented, "Our record net income per diluted common share reflects disciplined underwriting, net favorable reserve development, lower than expected catastrophe activity, good investment results and active capital management. Our book value per share was $39.23 as of June 30, 2009, an increase of 9.7% from March 31, 2009 and 13.4% from December 31, 2008."
Mr. Price added, "So far this year, we have found more attractive underwriting conditions for property and marine than for casualty. However, we may be approaching the bottom of the casualty reinsurance market."
Results for the quarter ended June 30, 2009 are summarized as follows:
-- Net income was $98.1 million, or $1.90 per diluted common share.
-- Net premiums written were $208.1 million and net premiums earned were
$232.5 million.
-- GAAP combined ratio was 76.9%.
-- Net investment income was $44.1 million.
-- Net realized gains on investments were $10.8 million.
Results for the quarter ended June 30, 2009 as compared with the quarter ended June 30, 2008 are summarized as follows:
-- Net income decreased $4.2 million (or 4.1%).
-- Net premiums written decreased $16.7 million (or 7.4%) and net premiums
earned decreased $25.5 million (or 9.9%).
-- GAAP combined ratio increased 8.5 percentage points.
-- Net investment income decreased $2.9 million (or 6.1%).
-- Net realized gains on investments were $10.8 million for the quarter
ended June 30, 2009 compared with net realized losses on investments of
$6.2 million for the quarter ended June 30, 2008.
Net premiums written for Platinum's Property and Marine, Casualty and Finite Risk segments for the quarter ended June 30, 2009 were $113.4 million, $87.4 million and $7.3 million, respectively, representing 54.5%, 42.0% and 3.5%, respectively, of the total net premiums written. Combined ratios for these segments were 66.5%, 88.4% and 118.4%, respectively, for the quarter ended June 30, 2009. Compared with the quarter ended June 30, 2008, net premiums written decreased by $5.2 million (or 4.4%) and $15.4 million (or 15.0%) in the Property and Marine and Casualty segments, respectively, and increased $3.9 million in the Finite Risk segment.
Results for the six months ended June 30, 2009 are summarized as follows:
-- Net income was $183.1 million, or $3.47 per diluted common share.
-- Net premiums written were $453.4 million and net premiums earned were
$480.2 million.
-- GAAP combined ratio was 78.5%.
-- Net investment income was $78.3 million.
-- Net realized gains on investments were $31.4 million.
Results for the six months ended June 30, 2009 as compared with the six months ended June 30, 2008 are summarized as follows:
-- Net income decreased $24.5 million (or 11.8%).
-- Net premiums written decreased $67.7 million (or 13.0%) and net premiums
earned decreased $79.6 million (or 14.2%).
-- GAAP combined ratio increased 4.8 percentage points.
-- Net investment income decreased $17.7 million (or 18.4%).
-- Net realized gains on investments were $31.4 million for the six months
ended June 30, 2009 compared with net realized losses on investments of
$3.2 million for the six months ended June 30, 2008.
Net premiums written for Platinum's Property and Marine, Casualty and Finite Risk segments for the six months ended June 30, 2009 were $255.1 million, $185.5 million, and $12.8 million, respectively, representing 56.3%, 40.9% and 2.8%, respectively, of the total net premiums written. Combined ratios for these segments were 71.9%, 85.4% and 113.6%, respectively, for the six months ended June 30, 2009. Compared with the six months ended June 30, 2008, net premiums written decreased $32.3 million (or 11.2%) and $43.0 million (or 18.8%) in the Property and Marine and Casualty segments, respectively, and increased $7.5 million in Finite Risk segment.
Total assets were $4.97 billion as of June 30, 2009, an increase of $41.0 million (or 0.8%) from $4.93 billion as of December 31, 2008. Cash, cash equivalents and fixed maturity investments were $4.40 billion as of June 30, 2009, an increase of $139.3 million (or 3.3%) from $4.26 billion as of December 31, 2008.
Shareholders' equity was $1.95 billion as of June 30, 2009, an increase of $143.3 million (or 7.9%) from $1.81 billion as of December 31, 2008. Book value per common share was $39.23 as of June 30, 2009 based on 49.8 million common shares outstanding, an increase of $4.65 (or 13.4%) from $34.58 as of December 31, 2008 based on 47.5 million common shares outstanding. Book value reflects common share repurchases of $41.3 million at a weighted average cost, including commissions, of $27.84 per share during the quarter ended June 30, 2009.
Financial Supplement
Platinum has posted a financial supplement on the Financial Reports page of the Investor Relations section of its website (Financial Supplement). The financial supplement provides additional detail regarding the financial performance of Platinum and its business segments.
Teleconference
Platinum will host a teleconference to discuss its financial results on Wednesday, July 22, 2009 at 8:00 a.m. Eastern time. The call may be accessed by dialing 888-637-7705 (US callers) or 913-312-1298 (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 22, 2009 until midnight Eastern time on Wednesday, July 29, 2009. To access the replay by telephone, dial 888-203-1112 (US callers) or 719-457-0820 (international callers) and specify passcode 1518494. 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.
Non-GAAP Financial Measures
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) related underwriting ratios and fully converted book value per common share, 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, assist in understanding the Company. These measures should not be viewed as a substitute for those determined in accordance with GAAP. Reconciliations of such measures to the most comparable GAAP figures such as income before income tax expense or benefit and total shareholders' equity is presented in the attached financial information in accordance with Regulation G.
About Platinum
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. The Company has a financial strength rating of A (Excellent) from A.M. Best Company, Inc. For further information, please visit Platinum's website at www.platinumre.com.
Safe Harbor Statement Regarding Forward-Looking Statements:
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934 (the "Exchange Act"). Forward-looking statements are based on our current plans or expectations that are inherently subject to significant business, economic and competitive uncertainties and contingencies. These uncertainties and contingencies can affect actual results and could cause actual results to differ materially from those expressed in any forward-looking statements made by, or on behalf of, us. In particular, statements using words such as "may," "should," "estimate," "expect," "anticipate," "intend," "believe," "predict," "potential," or words of similar import generally involve forward-looking statements. The inclusion of forward-looking statements in this press release should not be considered as a representation by us or any other person that our current plans or expectations will be achieved. Numerous factors could cause our actual results to differ materially from those in forward-looking statements, including, but not limited to, severe catastrophic events over which we have no control, the effectiveness of our loss limitation methods and pricing models, the adequacy of our liability for unpaid losses and loss adjustment expenses, our ability to maintain our A.M. Best Company, Inc. rating, the cyclicality of the property and casualty reinsurance business, conducting operations in a competitive environment, our ability to maintain our business relationships with reinsurance brokers, the availability of retrocessional reinsurance on acceptable terms, market volatility and interest rate and currency exchange rate fluctuation, tax, regulatory or legal restrictions or limitations applicable to us or the property and casualty reinsurance business generally, general political and economic conditions, including the effects of civil unrest, acts of terrorism, war or a prolonged United States or global economic downturn or recession; and changes in our plans, strategies, objectives, expectations or intentions, which may happen at any time at our discretion. As a consequence, our future financial condition and results may differ from those expressed in any forward-looking statements made by or on behalf of us. The foregoing factors should not be construed as exhaustive. Additionally, forward-looking statements speak only as of the date they are made, and we undertake no obligation to revise or update forward-looking statements to reflect new information or circumstances after the date hereof or to reflect the occurrence of future events.
Platinum Underwriters Holdings, Ltd.
Condensed Consolidated Balance Sheets
As of June 30, 2009 and December 31, 2008
(amounts in thousands, except per share amounts)
June 30, 2009 December 31, 2008
------------- -----------------
(Unaudited)
Assets
Investments $4,049,472 $3,371,886
Cash, cash equivalents and short-
term investments 349,786 888,053
Reinsurance premiums receivable 261,817 307,539
Accrued investment income 33,813 29,041
Reinsurance balances (prepaid and
recoverable) 24,715 23,310
Deferred acquisition costs 43,720 50,719
Funds held by ceding companies 120,232 136,278
Other assets 84,583 120,337
---------- ----------
Total assets $4,968,138 $4,927,163
========== ==========
Liabilities
Unpaid losses and loss adjustment
expenses $2,394,330 $2,463,506
Unearned premiums 190,757 218,890
Debt obligations 250,000 250,000
Commissions payable 121,780 125,551
Other liabilities 58,567 59,819
--------- ---------
Total liabilities 3,015,434 3,117,766
Total shareholders' equity 1,952,704 1,809,397
---------- ----------
Total liabilities and
shareholders' equity $4,968,138 $4,927,163
========== ==========
------ ------
Book value per common share (a) $39.23 $34.58
====== ======
(a) Book value per common share is determined by dividing
shareholders' equity, excluding capital attributable to preferred
shares, by actual common shares outstanding.
Platinum Underwriters Holdings, Ltd.
Condensed Consolidated Statements of Operations and Comprehensive Income
(Unaudited)
For the Three and Six Months Ended June 30, 2009 and 2008
(amounts in thousands, except per share amounts)
Three Months Ended Six Months Ended
------------------ ----------------
June 30, June 30, June 30, June 30,
2009 2008 2009 2008
--------- --------- --------- ---------
Revenue
Net premiums earned $232,462 257,982 480,214 $559,833
Net investment income 44,077 46,932 78,323 95,994
Net realized gains (losses)
on investments 10,794 (6,168) 31,364 (3,196)
Other income 5,212 716 5,444 620
------- ------- ------- -------
Total revenue 292,545 299,462 595,345 653,251
------- ------- ------- -------
Expenses
Net losses and LAE 124,945 93,392 269,109 253,595
Net acquisition expenses 38,338 66,137 78,494 126,679
Net change in fair value of
derivatives 106 959 2,523 1,769
Net impairment losses 3,256 - 6,664 -
Operating expenses 22,906 25,100 43,774 46,790
Net foreign currency
exchange (gains) losses (537) 1,998 459 (2,871)
Interest expense 4,756 4,751 9,511 9,501
------- ------- ------- -------
Total expenses 193,770 192,337 410,534 435,463
------ ------- ------- -------
Income before income tax
expense 98,775 107,125 184,811 217,788
Income tax expense 645 4,768 1,759 10,260
------ ------- ------- -------
Net income 98,130 102,357 183,052 207,528
Preferred dividends - 2,602 1,301 5,204
------- ------ ------- --------
Net income attributable to
common shareholders $98,130 99,755 181,751 $202,324
======= ====== ======= ========
Basic
Weighted average common
shares outstanding 50,580 48,468 50,105 50,286
Basic earnings per common
share $1.94 2.06 3.63 $4.02
Diluted
Adjusted weighted average
common shares outstanding 51,594 56,097 52,744 58,021
Diluted earnings per common
share $1.90 1.82 3.47 $3.58
Comprehensive income
Net income $98,130 102,357 183,052 $207,528
Other comprehensive (income)
loss, net of deferred taxes 64,958 (38,876) 63,382 (42,997)
------ ------- ------ -------
Comprehensive income $163,088 63,481 246,434 $164,531
======== ====== ======= ========
Platinum Underwriters Holdings, Ltd.
Segment Reporting
For the Three Months Ended June 30, 2009 and 2008
($ in thousands)
Three Months Ended June 30, 2009 (Unaudited)
--------------------------------------------
Property
and
Segment underwriting results Marine Casualty Finite Risk Total
-------- -------- ----------- -------
Net premiums written $113,405 87,459 7,253 208,117
Net premiums earned 128,316 99,161 4,985 232,462
------- ------ ----- -------
Net losses and LAE 62,807 61,042 1,096 124,945
Net acquisition expenses 13,526 20,406 4,406 38,338
Other underwriting expenses 9,123 6,130 400 15,653
----- ----- --- ------
Total underwriting expenses 85,456 87,578 5,902 178,936
------- ------ ---- ------
Segment underwriting
income (loss) $42,860 11,583 (917) 53,526
------- ------ ----
Net investment income 44,077
Net realized gains on
investments 10,794
Net impairment losses (3,256)
Net change in fair value of
derivatives (106)
Net foreign currency
exchange gains 537
Other income 5,212
Corporate expenses not
allocated to segments (7,253)
Interest expense (4,756)
------
Income before income tax expense 98,775
======
GAAP underwriting ratios:
Loss and LAE 48.9% 61.6% 22.0% 53.7%
Acquisition expense 10.5% 20.6% 88.4% 16.5%
Other underwriting expense 7.1% 6.2% 8.0% 6.7%
--- --- --- ---
Combined 66.5% 88.4% 118.4% 76.9%
---- ---- ----- ----
Three Months Ended June 30, 2008
--------------------------------
Segment underwriting results
Net premiums written $118,588 102,893 3,379 224,860
Net premiums earned 141,716 113,245 3,021 257,982
------- ------- ----- -------
Net losses and LAE 33,367 66,783 (6,758) 93,392
Net acquisition expenses 24,774 32,214 9,149 66,137
Other underwriting expenses 9,635 6,991 365 16,991
----- ----- --- ------
Total underwriting expenses 67,776 105,988 2,756 176,520
------- ----- --- ------
Segment underwriting income $73,940 7,257 265 81,462
------- ----- ---
Net investment income 46,932
Net realized losses on
investments (6,168)
Net impairment losses -
Net change in fair value
of derivatives (959)
Net foreign currency
exchange losses (1,998)
Other income 716
Corporate expenses not
allocated to segments (8,109)
Interest expense (4,751)
-------
Income before income tax expense 107,125
=======
GAAP underwriting ratios:
Loss and LAE 23.5% 59.0% (223.7%) 36.2%
Acquisition expense 17.5% 28.4% 302.8% 25.6%
Other underwriting expense 6.8% 6.2% 12.1% 6.6%
------- ------- ----- -------
Combined 47.8% 93.6% 91.2% 68.4%
------- ------- ----- -------
The GAAP underwriting ratios are calculated by dividing each item above
by net premiums earned.
Platinum Underwriters Holdings, Ltd.
Segment Reporting
For the Six Months Ended June 30, 2009 and 2008
($ in thousands)
Six Months Ended June 30, 2009 (Unaudited)
-----------------------------------------
Property
Segment underwriting and
results Marine Casualty Finite Risk Total
--------- -------- ----------- --------
Net premiums written $255,140 185,473 12,776 $453,389
Net premiums earned 261,987 209,121 9,106 480,214
--------- -------- ----------- --------
Net losses and LAE 140,258 120,183 8,668 269,109
Net acquisition
expenses 30,890 46,627 977 78,494
Other underwriting expenses 17,282 11,799 700 29,781
--------- -------- ----------- --------
Total underwriting
expenses 188,430 178,609 10,345 377,384
--------- -------- ----------- --------
Segment underwriting
income (loss) $73,557 30,512 (1,239) 102,830
--------- -------- -----------
Net investment income 78,323
Net realized gains on
investments 31,364
Net impairment losses (6,664)
Net change in fair value of
derivatives (2,523)
Net foreign currency exchange
losses (459)
Other income 5,444
Corporate expenses not
allocated to segments (13,993)
Interest expense (9,511)
--------
Income before income tax
expense $184,811
========
GAAP underwriting ratios:
Loss and LAE 53.5% 57.5% 95.2% 56.0%
Acquisition expense 11.8% 22.3% 10.7% 16.3%
Other underwriting expense 6.6% 5.6% 7.7% 6.2%
-------- ------ ---- -------
Combined 71.9% 85.4% 113.6% 78.5%
-------- ------ ---- -------
Six Months Ended June 30, 2008
------------------------------
Segment underwriting results
Net premiums written $287,405 228,469 5,257 $521,131
Net premiums earned 295,106 260,740 3,987 559,833
------- ------- ----- -------
Net losses and LAE 95,406 166,176 (7,987) 253,595
Net acquisition expenses 45,428 69,702 11,549 126,679
Other underwriting expenses 18,231 13,786 675 32,692
------ ------ --- ------
Total underwriting
expenses 159,065 249,664 4,237 412,966
-------- ------ ---- -------
Segment underwriting
income (loss) $136,041 11,076 (250) 146,867
-------- ------ ----
Net investment income 95,994
Net realized losses on
investments (3,196)
Net impairment losses -
Net change in fair
value of derivatives (1,769)
Net foreign currency
exchange gains 2,871
Other income 620
Corporate expenses not
allocated to segments (14,098)
Interest expense (9,501)
-------
Income before income
tax expense $217,788
========
GAAP underwriting ratios:
Loss and LAE 32.3% 63.7% (200.3%) 45.3%
Acquisition expense 15.4% 26.7% 289.7% 22.6%
Other underwriting expense 6.2% 5.3% 16.9% 5.8%
-------- ------ ---- -------
Combined 53.9% 95.7% 106.3% 73.7%
-------- ------ ---- -------
The GAAP underwriting ratios are calculated by dividing each item above by
net premiums earned.
SOURCE Platinum Underwriters Holdings, Ltd.
For further information: Lily Outerbridge, Investor Relations, +1-441-298-0760
© PR Newswire
