Bermuda-based Platinum Underwriters Holdings third quarter earnings report showed a net loss of $45.3 million, or $0.99 per basic common share.
Platinum said the “results for the quarter are consistent with previously announced ultimate loss estimates from Hurricanes Gustav and Ike of approximately $120 million, net of reinstatement premiums and tax benefit, and other-than-temporary impairments and realized losses of $18.2 million associated with certain securities held in Platinum’s investment portfolio.
“The results for the quarter include net premiums earned of $280.7 million, a decrease of 3.3 percent from the same quarter last year, net favorable development of $32.0 million, compared with net favorable development of $13.4 million for the same quarter last year, and net investment income of $48.0 million, a decrease of 11.5 percent from the same quarter last year.”
CEO Michael D. Price commented, “Significant catastrophe activity and the impact of the global financial crisis on our investment portfolio adversely affected our results in the quarter. Our book value per share was $33.64 as of September 30, 2008, a decrease of 9.1 percent for the quarter and a decrease of 1.2 percent for the nine months ending September 30, 2008.”
However, Price said he remained “cautiously optimistic” on future market conditions. “Given the challenging state of the credit and equity markets, we expect increasing demand for reinsurance,” he explained. “However, reinsurers may be reluctant to provide capacity without appropriate rate increases. We believe we are well capitalized and have the financial strength to continue writing a significant multi-class reinsurance portfolio and buying back shares, provided the business performs as expected.”
The complete report, including a financial supplement containing additional information, may be accessed on the Company’s web site at: www.platinumre.com.
Platinum will host a teleconference to discuss its financial results today at 8:00 a.m. EDT. The call may be accessed by dialing 888-812-8569 (US callers) or 913-312-1382 (international callers), or in a listen-only mode via the Investor Relations section of Platinum’s web site 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. EDT on Wednesday, October 22, 2008 until midnight EDT on Wednesday, October 29, 2008. To access the replay by telephone, dial 888-203-1112 (US callers) or 719-457-0820 (international callers) and specify passcode 4379337. The teleconference will also be archived on the Investor Relations section of Platinum’s web site.
Source: Platinum Holdings
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