HAMILTON, Bermuda, Oct. 21 /PRNewswire-FirstCall/ -- Platinum Underwriters Holdings, Ltd. (NYSE: PTP) today reported net income of $109.5 million, which is a record $2.10 per diluted common share, for the quarter ended September 30, 2009.
The results for the quarter include net premiums earned of $229.5 million, a decrease of 18.2% from the same quarter last year and net favorable development of $20.3 million, as compared with net favorable development of $32.0 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, lower than expected catastrophe activity, strong investment results on a total return basis and net favorable reserve development. Our book value per share was $43.55 as of September 30, 2009, an increase of 11.0% from June 30, 2009 and 25.9% from December 31, 2008."
Mr. Price added, "We found relatively more attractive underwriting conditions for property and marine reinsurance this year and have accordingly shifted our mix of business toward this segment. While we did not repurchase any shares or debt this particular quarter, we intend to continue our practice of returning excess capital in a cost effective manner for the benefit of our shareholders."
Results for the quarter ended September 30, 2009 are summarized as follows:
-- Net income was $109.5 million, or $2.10 per diluted common share.
-- Net premiums written were $243.6 million and net premiums earned were
$229.5 million.
-- GAAP combined ratio was 72.3%.
-- Net investment income was $44.7 million.
-- Net realized gains on investments were $22.6 million.
Results for the quarter ended September 30, 2009 as compared with the quarter ended September 30, 2008 are summarized as follows:
-- Net income increased $154.8 million.
-- Net premiums written decreased $35.6 million (or 12.7%) and net premiums
earned decreased $51.2 million (or 18.2%).
-- GAAP combined ratio decreased 50.3 percentage points.
-- Net investment income decreased $3.3 million (or 6.9%).
-- Net realized gains on investments were $22.6 million for the quarter
ended September 30, 2009 compared with net realized losses on
investments of $0.07 million for the quarter ended September 30, 2008.
Net premiums written for Platinum's Property and Marine, Casualty and Finite Risk segments for the quarter ended September 30, 2009 were $147.4 million, $88.5 million and $7.7 million, respectively, representing 60.5%, 36.3% and 3.2%, respectively, of the total net premiums written. Combined ratios for these segments were 54.9%, 94.3% and 122.7%, respectively, for the quarter ended September 30, 2009. Compared with the quarter ended September 30, 2008, net premiums written decreased by $19.7 million (or 11.8%) and $18.4 million (or 17.2%) in the Property and Marine and Casualty segments, respectively, and increased $2.5 million (or 48.2%) in the Finite Risk segment.
Results for the nine months ended September 30, 2009 are summarized as follows:
-- Net income was $292.5 million, or $5.57 per diluted common share.
-- Net premiums written were $697.0 million and net premiums earned were
$709.8 million.
-- GAAP combined ratio was 76.6%.
-- Net investment income was $123.1 million.
-- Net realized gains on investments were $53.9 million.
Results for the nine months ended September 30, 2009 as compared with the nine months ended September 30, 2008 are summarized as follows:
-- Net income increased $130.3 million (or 80.4%).
-- Net premiums written decreased $103.3 million (or 12.9%) and net
premiums earned decreased $130.8 million (or 15.6%).
-- GAAP combined ratio decreased 13.5 percentage points.
-- Net investment income decreased $21.0 million (or 14.6%).
-- Net realized gains on investments were $53.9 million for the nine months
ended September 30, 2009 compared with net realized losses on
investments of $3.3 million for the nine months ended September 30,
2008.
Net premiums written for Platinum's Property and Marine, Casualty and Finite Risk segments for the nine months ended September 30, 2009 were $402.6 million, $273.9 million, and $20.5 million, respectively, representing 57.8%, 39.3% and 2.9%, respectively, of the total net premiums written. Combined ratios for these segments were 66.2%, 88.1% and 117.3%, respectively, for the nine months ended September 30, 2009. Compared with the nine months ended September 30, 2008, net premiums written decreased $52.0 million (or 11.4%) and $61.4 million (or 18.3%) in the Property and Marine and Casualty segments, respectively, and increased $10.0 million (or 96.0%) in Finite Risk segment.
Total assets were $5.18 billion as of September 30, 2009, an increase of $255.1 million (or 5.2%) from $4.93 billion as of December 31, 2008. Cash, cash equivalents and fixed maturity investments were $4.41 billion as of September 30, 2009, an increase of $153.9 million (or 3.6%) from $4.26 billion as of December 31, 2008.
Shareholders' equity was $2.17 billion as of September 30, 2009, an increase of $360.7 million (or 19.9%) from $1.81 billion as of December 31, 2008. Book value per common share was $43.55 as of September 30, 2009 based on 49.8 million common shares outstanding, an increase of $8.97 (or 25.9%) from $34.58 as of December 31, 2008 based on 47.5 million common shares outstanding.
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 Thursday, October 22, 2009 at 8:00 a.m. Eastern time. The call may be accessed by dialing 877-879-6217 (US callers) or 913-312-0652 (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 Thursday, October 22, 2009 until midnight Eastern time on Thursday, October 29, 2009. To access the replay by telephone, dial 888-203-1112 (US callers) or 719-457-0820 (international callers) and specify passcode 2604514. 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 or loss 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 September 30, 2009 and December 31, 2008
(amounts in thousands, except per share amounts)
September 30, 2009 December 31, 2008
------------------ -----------------
(Unaudited)
Assets
Investments $3,953,620 $3,371,886
Cash, cash equivalents and
short-term investments 460,171 888,053
Reinsurance premiums receivable 297,089 307,539
Accrued investment income 32,646 29,041
Reinsurance balances
(prepaid and recoverable) 31,171 23,310
Deferred acquisition costs 45,581 50,719
Funds held by ceding companies 85,211 136,278
Other assets 276,733 120,337
---------- ----------
Total assets $5,182,222 $4,927,163
========== ==========
Liabilities
Unpaid losses and loss
adjustment expenses $2,373,151 $2,463,506
Unearned premiums 209,951 218,890
Debt obligations 250,000 250,000
Commissions payable 117,613 125,551
Other liabilities 61,442 59,819
---------- ---------
Total liabilities 3,012,157 3,117,766
Total shareholders' equity 2,170,065 1,809,397
---------- ----------
Total liabilities and
shareholders' equity $5,182,222 $4,927,163
========== ==========
---------- ----------
Book value per common share(a) $43.55 $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 (Loss) (Unaudited)
For the Three and Nine Months Ended September 30, 2009 and 2008
(amounts in thousands, except per share amounts)
Three Months Ended Nine Months Ended
------------------ -----------------
September September September September
30, 2009 30, 2008 30, 2009 30, 2008
--------- --------- --------- ---------
Revenue
Net premiums earned $229,538 280,725 709,752 $840,558
Net investment income 44,747 48,043 123,070 144,037
Net realized gains
(losses) on investments 22,553 (71) 53,917 (3,267)
Net impairment losses (5,075) (13,096) (11,739) (13,096)
Other (expense) income (1,222) (88) 4,222 533
------- ------- ------- -------
Total revenue 290,541 315,513 879,222 968,765
------- ------- ------- -------
Expenses
Net losses and LAE 99,240 270,863 368,349 524,458
Net acquisition expenses 50,009 56,320 128,503 182,999
Net change in fair
value of derivatives 4,305 6,645 6,828 8,415
Operating expenses 25,210 21,153 68,984 67,943
Net foreign currency
exchange (gains) losses (616) 6,134 (157) 3,263
Interest expense 4,757 4,752 14,268 14,253
------- ------- ------- -------
Total expenses 182,905 365,867 586,775 801,331
------- ------- ------- -------
Income (loss)
before income tax
expense (benefit) 107,636 (50,354) 292,447 167,434
Income tax (benefit) expense (1,832) (5,014) (73) 5,246
------- ------- ------- -------
Net income (loss) 109,468 (45,340) 292,520 162,188
Preferred dividends - 2,602 1,301 7,806
-------- ------- ------- --------
Net income (loss)
attributable to
common shareholders $109,468 (47,942) 291,219 $154,382
======== ======= ======= ========
Basic
Weighted average common
shares outstanding 49,660 48,260 49,955 49,963
Basic earnings (loss)
per common share $2.20 (0.99) 5.83 $3.09
Diluted
Adjusted weighted average
common shares outstanding 52,039 48,260 52,547 57,633
Diluted earnings (loss)
per common share $2.10 (0.99) 5.57 $2.81
Comprehensive income (loss)
Net income (loss) $109,468 (45,340) 292,520 $162,188
Other comprehensive
income (loss), net of
deferred taxes 106,570 (102,921) 169,952 (145,918)
-------- -------- ------- --------
Comprehensive income
(loss) $216,038 (148,261) 462,472 $16,270
======== ======== ======= =======
Platinum Underwriters Holdings, Ltd.
Segment Reporting
For the Three Months Ended September 30, 2009 and 2008
($ in thousands)
Three Months Ended September 30, 2009 (Unaudited)
-------------------------------------------------
Property
and
Segment underwriting results Marine Casualty Finite Risk Total
-------- -------- ----------- -------
Net premiums written $147,448 88,467 7,675 $243,590
Net premiums earned 132,567 90,591 6,380 229,538
------- ------- ------ -------
Net losses and LAE 46,307 59,243 (6,310) 99,240
Net acquisition expenses 16,821 19,393 13,795 50,009
Other underwriting expenses 9,643 6,751 342 16,736
------- ------- ------ -------
Total underwriting
expenses 72,771 85,387 7,827 165,985
------- ------- ------ -------
Segment underwriting
income (loss) $59,796 5,204 (1,447) 63,553
------- ------- ------
Net investment income 44,747
Net realized gains
on investments 22,553
Net impairment losses (5,075)
Net change in fair
value of derivatives (4,305)
Net foreign currency
exchange gains 616
Other expense (1,222)
Corporate expenses not
allocated to segments (8,474)
Interest expense (4,757)
--------
Income before
income tax expense $107,636
========
GAAP underwriting ratios:
Loss and LAE 34.9% 65.4% (98.9%) 43.2%
Acquisition expense 12.7% 21.4% 216.2% 21.8%
Other underwriting
expense 7.3% 7.5% 5.4% 7.3%
------- ------- ------ ------
Combined 54.9% 94.3% 122.7% 72.3%
------- ------- ------ ------
Three Months Ended September 30, 2008
-------------------------------------
Segment underwriting results
Net premiums written $167,136 106,826 5,180 $279,142
Net premiums earned 151,763 124,319 4,643 280,725
------- ------- ------ ------
Net losses and LAE 183,759 86,057 1,047 270,863
Net acquisition expenses 23,691 29,191 3,438 56,320
Other underwriting expenses 11,543 4,948 286 16,777
------- ------- ------ ------
Total underwriting
expenses 218,993 120,196 4,771 343,960
------- ------- ------ ------
Segment underwriting
income (loss) $(67,230) 4,123 (128) (63,235)
------- ------- ------ ------
Net investment income 48,043
Net realized losses
on investments (71)
Net impairment losses (13,096)
Net change in fair
value of derivatives (6,645)
Net foreign currency
exchange losses (6,134)
Other expense (88)
Corporate expenses not
allocated to segments (4,376)
Interest expense (4,752)
--------
Loss before income
tax benefit $(50,354)
========
GAAP underwriting ratios:
Loss and LAE 121.1% 69.2% 22.6% 96.5%
Acquisition expense 15.6% 23.5% 74.0% 20.1%
Other underwriting expense 7.6% 4.0% 6.2% 6.0%
------- ------- ------ ------
Combined 144.3% 96.7% 102.8% 122.6%
------- ------- ------ ------
The GAAP underwriting ratios are calculated by dividing each item above
by net premiums earned.
Platinum Underwriters Holdings, Ltd.
Segment Reporting
For the Nine Months Ended September 30, 2009 and 2008
($ in thousands)
Nine Months Ended September 30, 2009 (Unaudited)
------------------------------------------------
Property
and
Segment underwriting results Marine Casualty Finite Risk Total
-------- -------- ----------- -------
Net premiums written $402,588 273,940 20,451 $696,979
Net premiums earned 394,554 299,712 15,486 709,752
-------- ------- ------- -------
Net losses and LAE 186,565 179,426 2,358 368,349
Net acquisition expenses 47,711 66,020 14,772 128,503
Other underwriting expenses 26,925 18,550 1,042 46,517
-------- ------- ------- -------
Total underwriting
expenses 261,201 263,996 18,172 543,369
-------- ------- ------- -------
Segment underwriting
income (loss) $133,353 35,716 (2,686) 166,383
-------- ------- ------- -------
Net investment income 123,070
Net realized gains on
investments 53,917
Net impairment losses (11,739)
Net change in fair value of
derivatives (6,828)
Net foreign currency
exchange gains 157
Other income 4,222
Corporate expenses not
allocated to segments (22,467)
Interest expense (14,268)
--------
Income before income tax
expense $292,447
========
GAAP underwriting ratios:
Loss and LAE 47.3% 59.9% 15.2% 51.9%
Acquisition expense 12.1% 22.0% 95.4% 18.1%
Other underwriting expense 6.8% 6.2% 6.7% 6.6%
-------- ------- ------- -------
Combined 66.2% 88.1% 117.3% 76.6%
-------- ------- ------- -------
Nine Months Ended September 30, 2008
------------------------------------
Segment underwriting results
Net premiums written $454,541 335,295 10,437 $800,273
Net premiums earned 446,869 385,059 8,630 840,558
-------- ------- ------- -------
Net losses and LAE 279,165 252,233 (6,940) 524,458
Net acquisition expenses 69,119 98,893 14,987 182,999
Other underwriting expenses 29,774 18,734 961 49,469
-------- ------- ------- -------
Total underwriting expenses 378,058 369,860 9,008 756,926
-------- ------- ------- -------
Segment underwriting
income (loss) $68,811 15,199 (378) 83,632
-------- ------- ------- -------
Net investment income 144,037
Net realized losses on
investments (3,267)
Net impairment losses (13,096)
Net change in fair value of
derivatives (8,415)
Net foreign currency
exchange losses (3,263)
Other income 533
Corporate expenses not
allocated to segments (18,474)
Interest expense (14,253)
--------
Income before income tax
expense $167,434
========
GAAP underwriting ratios:
Loss and LAE 62.5% 65.5% (80.4%) 62.4%
Acquisition expense 15.5% 25.7% 173.7% 21.8%
Other underwriting expense 6.7% 4.9% 11.1% 5.9%
-------- ------- ------- -------
Combined 84.7% 96.1% 104.4% 90.1%
-------- ------- ------- -------
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, for Platinum Underwriters Holdings, Ltd.
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