Platinum Underwriters Holdings has reported net income of $383m for 2009.
Results for the fourth quarter of 2009 including net income of $91m, while net premiums earned were $227.6m. Net favourable development was $35m and net investment income and net realised gains on investments were $65.6m for the quarter.
Michael Price, Platinum's chief executive officer, said: “Platinum performed very well in 2009 producing record earnings per share and record growth in book value per share. Our results reflect a disciplined approach to underwriting, investing and capital management aided by a low level of major catastrophe loss activity."
Price added: "Absent a major event in the insurance or capital markets, we expect the reinsurance marketplace to show deterioration over the course of 2010. We will continue with our strategy of responding to changes in market conditions and underwriting for profitability, not market share. We believe 2010 will be a challenging year from an underwriting perspective, but market conditions should allow us to participate selectively in a range of reinsurance classes."
Platinum Underwriters Holdings is a Bermuda-based provider of property and casualty reinsurance coverage.
The company's results for the year ended December 31, 2009 are summarised as follows:
- Net income was $383.3m or $7.33 per diluted common share.
- Net premiums written were $897.8m and net premiums earned were $937.3m.
- GAAP combined ratio was 76.7%.
- Net investment income was $163.9m.
- Net realised gains on investments were $78.6m.
Net premiums written for Platinum's Property and Marine, Casualty and Finite Risk segments for the year ended December 31, 2009 were $517.0m, $356.5m and $24.3m, respectively, representing 57.6%, 39.7% and 2.7%, respectively, of total net premiums written. Combined ratios for these segments were 67.2%, 87.6% and 116.2%, respectively. Compared with the year ended December 31, 2008, net premiums written decreased $76.1m (or 12.8%) and $73.6m (or 17.1%) in the Property and Marine and Casualty segments, respectively, and increased $9.9m (or 69.1%) in the Finite Risk segment.
Total assets were $5.02bn as of December 31, 2009, an increase of $94.4m (or 1.9%) from $4.93bn as of December 31, 2008. Cash, cash equivalents and fixed maturity investments were $4.37bn as of December 31, 2009, an increase of $109.7m (or 2.6%) from $4.26bn as of December 31, 2008.
Shareholders' equity was $2.08bn as of December 31, 2009, an increase of $268.3m (or 14.8%) from $1.81bn as of December 31, 2008. Book value per common share was $45.22 as of December 31, 2009 based on 45.9m common shares outstanding, an increase of $10.64 (or 30.8%) from $34.58 as of December 31, 2008 based on 47.5m common shares outstanding. Book value reflects common share repurchases of $252.3m at a weighted average cost, including commissions, of $32.13 per share during the year ended December 31, 2009.
