PLATINUM UNDERWRITERS HOLDINGS LTD - FORM 8-K - EX-99.2

Attached files

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8-K - PLATINUM UNDERWRITERS HOLDINGS LTD	thirdquarter2010_8k.htm
EX-99.1 - PLATINUM UNDERWRITERS HOLDINGS LTD	pressreleaseq3_2010.htm

Exhibit 99.2

Financial Supplement

Financial Information
as of September 30, 2010
(UNAUDITED)



The following supplement of information is provided to assist in your understanding of
Platinum Underwriters Holdings, Ltd.



This report is for informational purposes only. It should be read in conjunction with
documents filed with the Securities and Exchange Commission by Platinum Underwriters Holdings, Ltd.,
including the Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.

Our Investor Relations Department can be reached at (441) 298-0760.

Platinum Underwriters Holdings, Ltd.
Overview
September 30, 2010


Address:							Investor Information:

Platinum Underwriters Holdings, Ltd.							Lily Outerbridge
The Belvedere Building							Vice President, Director of Investor Relations
69 Pitts Bay Road							Tel: (441) 298-0760
Pembroke, HM 08 Bermuda							Fax: (441) 296-0528
Website: www.platinumre.com							Email: louterbridge@platinumre.com

Definitions and presentation:

All financial information contained herein is unaudited except for the information for the fiscal year ended December 31, 2009. Certain amounts in prior periods have been reclassified to conform to current period presentation. Amounts may not reconcile exactly due to rounding differences.

In presenting the Company's results, management has included 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, operating 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, allow for a more complete understanding of the underlying business. 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 are included within this financial supplement in accordance with Regulation G.

Safe Harbor Statement Regarding Forward-Looking Statements:

This financial supplement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. 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 financial supplement 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. and Standard & Poor’s ratings, our ability to raise capital on acceptable terms if necessary, the cyclicality of the property and casualty reinsurance business, the highly competitive nature of the property and casualty reinsurance industry, 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.

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Platinum Underwriters Holdings, Ltd.

Table of Contents

Section:	Page:
Financial Highlights:
a. Financial Highlights	3

Balance Sheet:
a. Condensed Consolidated Balance Sheets	4

Statements of Operations:
a. Condensed Consolidated Statements of Operations and Comprehensive Income - Summary	5
b. Condensed Consolidated Statements of Operations and Comprehensive Income - by Quarter	6

Other Company Data:
a. Computation of Net Operating Income and Net Operating Income per Diluted Common Share	7
b. Key Ratios, Share Data, Ratings	8

Earnings and Book Value Per Common Share Analysis:
a. Computation of Basic and Diluted Earnings Per Common Share - Summary	9
b. Computation of Basic and Diluted Earnings Per Common Share - by Quarter	10
c. Book Value Per Common Share	11

Cash Flow Statement:
a. Condensed Consolidated Statements of Cash Flows - Summary	12
b. Condensed Consolidated Statements of Cash Flows - by Quarter	13

Segment Data:
a. Segment Reporting - Three Month Summary	14
b. Segment Reporting - Nine Month Summary	15
c. Property and Marine Segment - by Quarter	16
d. Casualty Segment - by Quarter	17
e. Finite Risk Segment - by Quarter	18

Net Premiums Written Data:
a. Net Premiums Written - Supplemental Information	19
b. Premiums by Line of Business - Three Month Summary	20
c. Premiums by Line of Business - Nine Month Summay	21

Investments:
a. Investment Portfolio	22
b. Available-for-Sale Security Detail	23
c. Corporate Bonds Detail	24
d. Net Realized Gains on Investments and Net Impairment Losses on Investments	25

Loss Reserves:
a. Analysis of Losses and Loss Adjustment Expenses	26
b. Summary of Favorable (Unfavorable) Development of Losses and Related Premiums & Commissions	27

Exposures:
a. Estimated Exposures to Peak Zone Property Catastrophe Losses	28

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Platinum Underwriters Holdings, Ltd.

Financial Highlights

September 30, 2010

($ and amounts in thousands, except per share data)

	Three Months Ended						Nine Months Ended
	September 30,			September 30,			September 30,			September 30,
	2010			2009			2010			2009

Highlights
Net premiums written	$	199,427			243,590			598,572		$	696,979
Net premiums earned		183,404			229,538			595,014			709,752
Underwriting income		58,410			63,553			123,366			166,383
Net investment income		31,078			44,747			103,955			123,070
Net operating income (a)		61,137			92,307			168,288			251,760
Net realized gains (losses) on investments		44,351			22,553			99,297			53,917
Net impairment losses on investments		(4,048	)		(5,075	)		(25,560	)		(11,739	)
Net income attributable to common shareholders	$	93,662			109,468			233,222		$	291,219

Total assets	$	4,936,259			5,157,622			4,936,259		$	5,157,622
Investments and cash		4,539,184			4,413,791			4,539,184			4,413,791
Total shareholders' equity		2,164,873			2,170,065			2,164,873			2,170,065
Unpaid losses and loss adjustment expenses	$	2,194,173			2,373,151			2,194,173		$	2,373,151

Per share data
Common shares outstanding		39,266			49,827			39,266			49,827
Weighted average common shares outstanding - basic		40,485			49,660			43,029			49,955
Adjusted weighted average common shares outstanding - diluted		44,044			52,039			46,263			52,547
Basic earnings per common share	$	2.31			2.20			5.42		$	5.83
Diluted earnings per common share		2.13			2.10			5.04			5.57
Operating income per common share - diluted		1.39			1.77			3.64			4.79
Dividends per common share		0.08			0.08			0.24			0.24
Book value per common share	$	55.13			43.55			55.13		$	43.55

(a) See computation of net operating income on page 7.

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Platinum Underwriters Holdings, Ltd.

Condensed Consolidated Balance Sheets

($ in thousands, except per share data)

	September 30,		June 30,		March 31,		December 31,		September 30,
	2010		2010		2010		2009		2009

Assets
Investments	$	2,874,351		3,335,914		3,754,054		3,660,515	$	3,953,620
Cash, cash equivalents and short-term investments		1,664,833		1,192,099		761,774		709,134		460,171
Accrued investment income		27,315		28,373		32,031		29,834		32,646
Reinsurance premiums receivable		175,914		160,729		320,724		269,912		272,489
Reinsurance balances (prepaid and recoverable)		24,253		28,036		28,025		29,710		31,171
Funds held by ceding companies		82,428		85,030		85,695		84,478		85,211
Deferred acquisition costs		39,841		38,994		43,381		40,427		45,581
Other assets		47,324		65,574		68,346		197,568		276,733
Total assets	$	4,936,259		4,934,749		5,094,030		5,021,578	$	5,157,622

Liabilities
Unpaid losses and loss adjustment expenses	$	2,194,173		2,224,026		2,378,253		2,349,336	$	2,373,151
Unearned premiums		180,432		168,545		205,606		180,609		209,951
Debt obligations		250,000		250,000		250,000		250,000		250,000
Commissions payable		58,460		57,370		96,451		90,461		93,013
Other liabilities		88,321		129,373		80,076		73,441		61,442
Total liabilities		2,771,386		2,829,314		3,010,386		2,943,847		2,987,557

Total shareholders' equity		2,164,873		2,105,435		2,083,644		2,077,731		2,170,065

Total liabilities and shareholders' equity	$	4,936,259		4,934,749		5,094,030		5,021,578	$	5,157,622


Book value per common share (a)	$	55.13		51.23		46.59		45.22	$	43.55

(a) Book value per common share is determined by dividing shareholders' equity by actual common shares outstanding.

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Platinum Underwriters Holdings, Ltd.

Condensed Consolidated Statements of Operations and Comprehensive Income - Summary

($ and amounts in thousands, except per share data)

	Three Months Ended						Nine Months Ended
	September 30,			September 30,			September 30,			September 30,
	2010			2009			2010			2009

Revenue
Net premiums earned	$	183,404			229,538			595,014		$	709,752
Net investment income		31,078			44,747			103,955			123,070
Net realized gains (losses) on investments		44,351			22,553			99,297			53,917
Net impairment losses on investments		(4,048	)		(5,075	)		(25,560	)		(11,739	)
Other income (expense)		(171	)		(1,222	)		(42	)		4,222
Total revenue		254,614			290,541			772,664			879,222

Expenses
Net losses and loss adjustment expenses		79,094			99,240			315,137			368,349
Net acquisition expenses		32,517			50,009			113,934			128,503
Net changes in fair value of derivatives		4,154			4,305			6,499			6,828
Operating expenses		20,004			25,210			61,905			68,984
Net foreign currency exchange losses (gains)		235			(616	)		(1,061	)		(157	)
Interest expense		4,763			4,757			14,232			14,268
Total expenses		140,767			182,905			510,646			586,775

Income before income tax expense (benefit)		113,847			107,636			262,018			292,447
Income tax expense (benefit)		20,185			(1,832	)		28,796			(73	)

Net income		93,662			109,468			233,222			292,520
Preferred dividends		-			-			-			1,301

Net income attributable to common shareholders	$	93,662			109,468			233,222		$	291,219

Basic
Weighted average common shares outstanding		40,485			49,660			43,029			49,955
Basic earnings per common share	$	2.31			2.20			5.42		$	5.83

Diluted
Adjusted weighted average common shares outstanding		44,044			52,039			46,263			52,547
Diluted earnings per common share	$	2.13			2.10			5.04		$	5.57

Comprehensive income
Net income	$	93,662			109,468			233,222		$	292,520
Other comprehensive income, net of deferred taxes		45,895			106,570			128,600			169,952
Comprehensive income	$	139,557			216,038			361,822		$	462,472

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Platinum Underwriters Holdings, Ltd.

Condensed Consolidated Statements of Operations and Comprehensive Income - by Quarter

($ and amounts in thousands, except per share data)

	Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2010			2010			2010			2009			2009

Revenue
Net premiums earned	$	183,404			191,432			220,178			227,584		$	229,538
Net investment income		31,078			35,372			37,505			40,871			44,747
Net realized gains (losses) on investments		44,351			49,489			5,457			24,713			22,553
Net impairment losses on investments		(4,048	)		(3,410	)		(18,102	)		(5,864	)		(5,075	)
Other income (expense)		(171	)		(144	)		273			(1,138	)		(1,222	)
Total revenue		254,614			272,739			245,311			286,166			290,541

Expenses
Net losses and loss adjustment expenses		79,094			71,475			164,568			109,993			99,240
Net acquisition expenses		32,517			44,088			37,329			47,916			50,009
Net changes in fair value of derivatives		4,154			30			2,315			2,913			4,305
Operating expenses		20,004			20,160			21,741			25,698			25,210
Net foreign currency exchange losses (gains)		235			(67	)		(1,229	)		(242	)		(616	)
Interest expense		4,763			4,709			4,760			4,759			4,757
Total expenses		140,767			140,395			229,484			191,037			182,905

Income before income tax expense (benefit)		113,847			132,344			15,827			95,129			107,636
Income tax expense (benefit)		20,185			8,205			406			4,358			(1,832	)

Net income		93,662			124,139			15,421			90,771			109,468
Preferred dividends		-			-			-			-			-

Net income attributable to common shareholders	$	93,662			124,139			15,421			90,771		$	109,468

Basic
Weighted average common shares outstanding		40,485			43,225			45,431			48,294			49,660
Basic earnings per common share	$	2.31			2.87			0.34			1.88		$	2.20

Diluted
Adjusted weighted average common shares outstanding		44,044			46,249			48,494			51,466			52,039
Diluted earnings per common share	$	2.13			2.68			0.32			1.76		$	2.10

Comprehensive income
Net income	$	93,662			124,139			15,421			90,771		$	109,468
Other comprehensive income (loss), net of deferred taxes		45,895			34,833			47,872			(36,726	)		106,570
Comprehensive income	$	139,557			158,972			63,293			54,045		$	216,038

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Platinum Underwriters Holdings, Ltd.

Computation of Net Operating Income and Net Operating Income per Diluted Common Share

($ and amounts in thousands, except per share data)

	Three Months Ended						Nine Months Ended
	September 30,			September 30,			September 30,			September 30,
	2010			2009			2010			2009

Net income attributable to common shareholders	$	93,662			109,468			233,222		$	291,219

Adjustments for:
Net realized (gains) losses on investments, net of tax		(36,683	)		(21,154	)		(85,224	)		(49,950	)
Net impairment losses on investments, net of tax		3,986			4,514			21,213			10,598
Net foreign currency exchange losses (gains), net of tax		298			(521	)		(923	)		(107	)
Net operating income (a)	$	61,263			92,307			168,288		$	251,760

Per diluted common share:
Net income attributable to common shareholders	$	2.13			2.10			5.04		$	5.54
Less:
Net realized (gains) losses on investments		(0.83	)		(0.41	)		(1.84	)		(0.95	)
Net impairment losses on investments		0.09			0.09			0.46			0.20
Net foreign currency exchange losses (gains)		0.00			(0.01	)		(0.02	)		(0.00	)
Net operating income (b)	$	1.39			1.77			3.64		$	4.79

Adjusted weighted average common shares outstanding - diluted		44,044			52,039			46,263			52,547

(a) Operating income represents net income after taxes excluding net realized gains and losses on investments, net impairment losses on investments and net foreign exchange gains and losses.

(b) Operating income per diluted common share is calculated by dividing operating income by diluted weighted average shares outstanding for the period.

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Platinum Underwriters Holdings, Ltd.

Key Ratios, Share Data, Ratings

	As of and for the Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2010			2010			2010			2009			2009

Key Ratios

Combined ratio (%)		68.1	%		67.4	%		98.7	%		77.3	%		72.3	%

Investable assets to shareholders' equity ratio	2.10:1			2.15:1			2.17:1			2.10:1			2.03:1

Debt to total capital (%)		10.4	%		10.6	%		10.7	%		10.7	%		10.3	%

Net premiums written (annualized) to shareholders' equity		0.37			0.29			0.47			0.39			0.45


Share Data
Book value per common share (a)	$	55.13			51.23			46.59			45.22		$	43.55

Common shares outstanding (000's)		39,266			41,095			44,722			45,943			49,827

Market Price Per Common Share
High	$	44.04			39.28			38.89			39.45		$	36.87
Low		35.63			35.06			34.60			34.63			28.07
Close	$	43.52			36.29			37.08			38.29		$	35.84

Industry Ratings
Financial Strength Rating
A.M. Best Company, Inc.		A			A			A			A			A
Standard & Poor's Ratings Services		A			A			A			A			n/a
Counterparty Credit Ratings (senior unsecured)
A.M. Best Company, Inc.	bbb			bbb			bbb			bbb			bbb
Standard & Poor's Ratings Services	BBB+			BBB+			BBB+			BBB+			BBB

Supplemental Data
Total employees		145			145			145			146			146

See Definitions and Presentation on page 1.

(a) Book value per common share is determined by dividing shareholders' equity by actual common shares outstanding.

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Platinum Underwriters Holdings, Ltd.

Computation of Basic and Diluted Earnings Per Common Share - Summary

($ and amounts in thousands, except per share data)

	Three Months Ended				Nine Months Ended
	September 30,		September 30,		September 30,		September 30,
	2010		2009		2010		2009

Earnings
Basic
Net income attributable to common shareholders	$	93,662		109,468		233,222	$	291,219

Diluted
Net income attributable to common shareholders		93,662		109,468		233,222		291,219
Effect of dilutive securities:
Preferred share dividends		-		-		-		1,301
Adjusted net income for diluted earnings per common share	$	93,662		109,468		233,222	$	292,520


Common Shares
Basic
Weighted average common shares outstanding		40,485		49,660		43,029		49,955

Diluted
Weighted average common shares outstanding		40,485		49,660		43,029		49,955
Effect of dilutive securities:
Conversion of preferred shares		-		-		-		1,011
Common share options		3,064		1,950		2,748		1,190
Restricted common shares and common share units		495		429		486		391
Adjusted weighted average common shares outstanding		44,044		52,039		46,263		52,547


Earnings Per Common Share
Basic earnings per common share	$	2.31		2.20		5.42	$	5.83

Diluted earnings per common share	$	2.13		2.10		5.04	$	5.57

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Platinum Underwriters Holdings, Ltd.

Computation of Basic and Diluted Earnings Per Common Share - by Quarter

($ and amounts in thousands, except per share data)

	Three Months Ended
	September 30,		June 30,		March 31,		December 31,		September 30,
	2010		2010		2010		2009		2009

Earnings
Basic
Net income attributable to common shareholders	$	93,662		124,139		15,421		90,771	$	109,468

Diluted
Net income attributable to common shareholders		93,662		124,139		15,421		90,771		109,468
Effect of dilutive securities:
Preferred share dividends		-		-		-		-		-
Adjusted net income for diluted earnings per common share	$	93,662		124,139		15,421		90,771	$	109,468


Common Shares
Basic
Weighted average common shares outstanding		40,485		43,225		45,431		48,294		49,660

Diluted
Weighted average common shares outstanding		40,485		43,225		45,431		48,294		49,660
Effect of dilutive securities:
Conversion of preferred shares		-		-		-		-		-
Common share options		3,064		2,583		2,540		2,623		1,950
Restricted common shares and common share units		495		441		523		549		429
Adjusted weighted average common shares outstanding		44,044		46,249		48,494		51,466		52,039


Earnings Per Common Share
Basic earnings per common share	$	2.31		2.87		0.34		1.88	$	2.20

Diluted earnings per common share	$	2.13		2.68		0.32		1.76	$	2.10

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Platinum Underwriters Holdings, Ltd.

Book Value Per Common Share

($ and amounts in thousands, except per share data)

	September 30,		December 31,
	2010		2009

Price per share at period end	$	43.52	$	38.29

Shareholders' equity	$	2,164,873	$	2,077,731
Add: Assumed exercise of share options		39,511		69,647
Shareholders' equity - diluted	$	2,204,384	$	2,147,378

Basic common shares outstanding		39,266		45,943
Add: Common share options (a)		3,173		2,529
Add: Management and directors' options (b)		1,264		2,238
Add: Directors' and officers' restricted common share units (c)		847		933
Diluted common shares outstanding		44,550		51,643


Book Value Per Common Share
Basic book value per common share	$	55.13	$	45.22

Fully converted book value per common share	$	49.48	$	41.58

See Definitions and Presentation on page 1.

(a) Options with a price of $27.00.

(b) Options with a price below $43.52, the closing share price at September 30, 2010.

(c) As of September 30, 2010 there were 39,266,069 common shares issued and outstanding. Included in this number were 217,669 of restricted common shares issued but unvested.

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Platinum Underwriters Holdings, Ltd.

Condensed Consolidated Statements of Cash Flows - Summary

($ in thousands)

	Three Months Ended						Nine Months Ended
	September 30,			September 30,			September 30,			September 30,
	2010			2009			2010			2009

Net cash provided by (used in) operating activities	$	41,244			98,591			62,771		$	422,477

Net cash provided by (used in) investing activities		432,699			(21,305	)		1,039,849			(716,265	)

Net cash provided by (used in) financing activities		(84,720	)		(2,705	)		(285,347	)		(113,403	)

Effect of foreign currency exchange rate changes on cash		7,129			1,765			(1,431	)		6,457

Net increase (decrease) in cash and cash equivalents	$	396,352			76,346			815,842		$	(400,734	)

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Platinum Underwriters Holdings, Ltd.

Condensed Consolidated Statements of Cash Flows - by Quarter

($ in thousands)

	Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2010			2010			2010			2009			2009

Net cash provided by (used in) operating activities	$	41,244			(12,897	)		34,424			54,720		$	98,591

Net cash provided by (used in) investing activities		432,699			728,210			(121,060	)		365,976			(21,305	)

Net cash provided by (used in) financing activities		(84,720	)		(140,564	)		(60,063	)		(150,835	)		(2,705	)

Effect of foreign currency exchange rate changes on cash		7,129			(5,517	)		(3,043	)		640			1,765

Net increase (decrease) in cash and cash equivalents	$	396,352			569,232			(149,742	)		270,501		$	76,346

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Platinum Underwriters Holdings, Ltd.

Segment Reporting - Three Month Summary

($ in thousands)

	Three Months Ended September 30, 2010												Three Months Ended September 30, 2009
	Property and Marine			Casualty			Finite Risk			Total			Property and Marine			Casualty			Finite Risk			Total

Net premiums written	$	114,885			80,362			4,180		$	199,427		$	147,448			88,467			7,675		$	243,590

Net premiums earned		98,342			80,437			4,625			183,404			132,567			90,591			6,380			229,538

Net losses and loss adjustment expenses		70,657			8,156			281			79,094			46,307			59,243			(6,310	)		99,240
Net acquisition expenses		14,140			16,395			1,982			32,517			16,821			19,393			13,795			50,009
Other underwriting expenses		7,905			5,171			307			13,383			9,643			6,751			342			16,736
Total underwriting expenses		92,702			29,722			2,570			124,994			72,771			85,387			7,827			165,985
Segment underwriting income (loss)	$	5,640			50,715			2,055			58,410		$	59,796			5,204			(1,447	)		63,553

Net investment income											31,078												44,747
Net realized gains (losses) on investments											44,351												22,553
Net impairment losses on investments											(4,048	)											(5,075	)
Net changes in fair value of derivatives											(4,154	)											(4,305	)
Net foreign currency exchange gains (losses)											(235	)											616
Other income (expense)											(171	)											(1,222	)
Corporate expenses not allocated to segments											(6,621	)											(8,474	)
Interest expense											(4,763	)											(4,757	)
Income before income tax expense (benefit)										$	113,847											$	107,636

GAAP underwriting ratios:
Net loss and loss adjustment expense		71.8	%		10.1	%		6.1	%		43.1	%		34.9	%		65.4	%		(98.9	%)		43.2	%
Net acquisition expense		14.4	%		20.4	%		42.9	%		17.7	%		12.7	%		21.4	%		216.2	%		21.8	%
Other underwriting expense		8.0	%		6.4	%		6.6	%		7.3	%		7.3	%		7.5	%		5.4	%		7.3	%
Combined		94.2	%		36.9	%		55.6	%		68.1	%		54.9	%		94.3	%		122.7	%		72.3	%

Statutory underwriting ratios:
Net loss and loss adjustment expense		71.8	%		10.1	%		6.1	%		43.1	%		34.9	%		65.4	%		(98.9	%)		43.2	%
Net acquisition expense		13.1	%		20.2	%		44.7	%		16.6	%		12.8	%		21.2	%		184.2	%		21.3	%
Other underwriting expense		6.9	%		6.4	%		7.3	%		6.7	%		6.5	%		7.6	%		4.5	%		6.9	%
Combined		91.8	%		36.7	%		58.1	%		66.4	%		54.2	%		94.2	%		89.8	%		71.4	%

See Definitions and Presentation on page 1.

The GAAP underwriting ratios are calculated by dividing each item above by net premiums earned.

The Statutory underwriting ratios are based on statutory accounting principles and are calculated as follows:

(1) Net losses & LAE are divided by net premiums earned;

(2) Net acquisition expenses are divided by net premiums written and exclude changes in deferred acquisition costs; and

(3) Other underwriting expenses are divided by net premiums written.

- 14 -

Platinum Underwriters Holdings, Ltd.

Segment Reporting - Nine Month Summary

($ in thousands)

	Nine Months Ended September 30, 2010												Nine Months Ended September 30, 2009
	Property and Marine			Casualty			Finite Risk			Total			Property and Marine			Casualty			Finite Risk			Total

Net premiums written	$	335,775			246,741			16,056		$	598,572		$	402,588			273,940			20,451		$	696,979

Net premiums earned		326,698			253,505			14,811			595,014			394,554			299,712			15,486			709,752

Net losses and loss adjustment expenses		232,294			79,744			3,099			315,137			186,565			179,426			2,358			368,349
Net acquisition expenses		47,589			52,874			13,471			113,934			47,711			66,020			14,772			128,503
Other underwriting expenses		24,324			17,295			958			42,577			26,925			18,550			1,042			46,517
Total underwriting expenses		304,207			149,913			17,528			471,648			261,201			263,996			18,172			543,369
Segment underwriting income (loss)	$	22,491			103,592			(2,717	)		123,366		$	133,353			35,716			(2,686	)		166,383

Net investment income											103,955												123,070
Net realized gains (losses) on investments											99,297												53,917
Net impairment losses on investments											(25,560	)											(11,739	)
Net changes in fair value of derivatives											(6,499	)											(6,828	)
Net foreign currency exchange gains (losses)											1,061												157
Other income (expense)											(42	)											4,222
Corporate expenses not allocated to segments											(19,328	)											(22,467	)
Interest expense											(14,232	)											(14,268	)
Income before income tax expense (benefit)										$	262,018											$	292,447

GAAP underwriting ratios:
Net loss and loss adjustment expense		71.1	%		31.5	%		20.9	%		53.0	%		47.3	%		59.9	%		15.2	%		51.9	%
Net acquisition expense		14.6	%		20.9	%		91.0	%		19.1	%		12.1	%		22.0	%		95.4	%		18.1	%
Other underwriting expense		7.4	%		6.8	%		6.5	%		7.2	%		6.8	%		6.2	%		6.7	%		6.6	%
Combined		93.1	%		59.2	%		118.4	%		79.3	%		66.2	%		88.1	%		117.3	%		76.6	%

Statutory underwriting ratios:
Net loss and loss adjustment expense		71.1	%		31.5	%		20.9	%		53.0	%		47.3	%		59.9	%		15.2	%		51.9	%
Net acquisition expense		14.4	%		20.8	%		85.3	%		18.9	%		11.9	%		21.8	%		77.1	%		17.7	%
Other underwriting expense		7.2	%		7.0	%		6.0	%		7.1	%		6.7	%		6.8	%		5.1	%		6.7	%
Combined		92.7	%		59.3	%		112.2	%		79.0	%		65.9	%		88.5	%		97.4	%		76.3	%

See Definitions and Presentation on page 1.

The GAAP underwriting ratios are calculated by dividing each item above by net premiums earned.

The Statutory underwriting ratios are based on statutory accounting principles and are calculated as follows:

(1) Net losses & LAE are divided by net premiums earned;

(2) Net acquisition expenses are divided by net premiums written and exclude changes in deferred acquisition costs; and

(3) Other underwriting expenses are divided by net premiums written.

- 15 -

Platinum Underwriters Holdings, Ltd.

Property and Marine Segment - by Quarter

($ in thousands)

	Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2010			2010			2010			2009			2009

Net premiums written	$	114,885			74,105			146,785			114,423		$	147,448

Net premiums earned		98,342			100,550			127,806			133,934			132,567

Net losses and loss adjustment expenses		70,657			35,010			126,627			64,081			46,307
Net acquisition expenses		14,140			17,218			16,231			19,281			16,821
Other underwriting expenses		7,905			7,720			8,699			10,406			9,643
Total underwriting expenses		92,702			59,948			151,557			93,768			72,771
Segment underwriting income (loss)	$	5,640			40,602			(23,751	)		40,166		$	59,796


GAAP underwriting ratios:
Net loss and loss adjustment expense		71.8	%		34.8	%		99.1	%		47.8	%		34.9	%
Net acquisition expense		14.4	%		17.1	%		12.7	%		14.4	%		12.7	%
Other underwriting expense		8.0	%		7.7	%		6.8	%		7.8	%		7.3	%
Combined		94.2	%		59.6	%		118.6	%		70.0	%		54.9	%

Statutory underwriting ratios:
Net loss and loss adjustment expense		71.8	%		34.8	%		99.1	%		47.8	%		34.9	%
Net acquisition expense		13.1	%		20.3	%		12.5	%		15.0	%		12.8	%
Other underwriting expense		6.9	%		10.4	%		5.9	%		9.1	%		6.5	%
Combined		91.8	%		65.5	%		117.5	%		71.9	%		54.2	%

See Definitions and Presentation on page 1.

The GAAP underwriting ratios are calculated by dividing each item above by net premiums earned.

The Statutory underwriting ratios are based on statutory accounting principles and are calculated as follows:

(1) Net losses & LAE are divided by net premiums earned;

(2) Net acquisition expenses are divided by net premiums written and exclude changes in deferred acquisition costs; and

(3) Other underwriting expenses are divided by net premiums written.

- 16 -

Platinum Underwriters Holdings, Ltd.

Casualty Segment - by Quarter

($ in thousands)

	Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2010			2010			2010			2009			2009

Net premiums written	$	80,362			72,628			93,751			82,548		$	88,467

Net premiums earned		80,437			85,166			87,902			89,189			90,591

Net losses and loss adjustment expenses		8,156			40,058			31,530			47,085			59,243
Net acquisition expenses		16,395			18,752			17,727			22,821			19,393
Other underwriting expenses		5,171			5,654			6,470			7,094			6,751
Total underwriting expenses		29,722			64,464			55,727			77,000			85,387
Segment underwriting income (loss)	$	50,715			20,702			32,175			12,189		$	5,204


GAAP underwriting ratios:
Net loss and loss adjustment expense		10.1	%		47.0	%		35.9	%		52.8	%		65.4	%
Net acquisition expense		20.4	%		22.0	%		20.2	%		25.6	%		21.4	%
Other underwriting expense		6.4	%		6.6	%		7.4	%		8.0	%		7.5	%
Combined		36.9	%		75.6	%		63.5	%		86.4	%		94.3	%

Statutory underwriting ratios:
Net loss and loss adjustment expense		10.1	%		47.0	%		35.9	%		52.8	%		65.4	%
Net acquisition expense		20.2	%		23.3	%		19.3	%		24.2	%		21.2	%
Other underwriting expense		6.4	%		7.8	%		6.9	%		8.6	%		7.6	%
Combined		36.7	%		78.1	%		62.1	%		85.6	%		94.2	%

See Definitions and Presentation on page 1.

The GAAP underwriting ratios are calculated by dividing each item above by net premiums earned.

The Statutory underwriting ratios are based on statutory accounting principles and are calculated as follows:

(1) Net losses & LAE are divided by net premiums earned;

(2) Net acquisition expenses are divided by net premiums written and exclude changes in deferred acquisition costs; and

(3) Other underwriting expenses are divided by net premiums written.

- 17 -

Platinum Underwriters Holdings, Ltd.

Finite Risk Segment - by Quarter

($ in thousands)

	Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2010			2010			2010			2009			2009

Net premiums written	$	4,180			4,985			6,891			3,884		$	7,675

Net premiums earned		4,625			5,716			4,470			4,461			6,380

Net losses and loss adjustment expenses		281			(3,593	)		6,411			(1,173	)		(6,310	)
Net acquisition expenses		1,982			8,118			3,371			5,814			13,795
Other underwriting expenses		307			313			338			370			342
Total underwriting expenses		2,570			4,838			10,120			5,011			7,827
Segment underwriting income (loss)	$	2,055			878			(5,650	)		(550	)	$	(1,447	)


GAAP underwriting ratios:
Net loss and loss adjustment expense		6.1	%		(62.9	%)		143.4	%		(26.3	%)		(98.9	%)
Net acquisition expense		42.9	%		142.0	%		75.4	%		130.3	%		216.2	%
Other underwriting expense		6.6	%		5.5	%		7.6	%		8.3	%		5.4	%
Combined		55.6	%		84.6	%		226.4	%		112.3	%		122.7	%

Statutory underwriting ratios:
Net loss and loss adjustment expense		6.1	%		(62.9	%)		143.4	%		(26.3	%)		(98.9	%)
Net acquisition expense		44.7	%		159.0	%		56.6	%		145.8	%		184.2	%
Other underwriting expense		7.3	%		6.3	%		4.9	%		9.5	%		4.5	%
Combined		58.1	%		102.4	%		204.9	%		129.0	%		89.8	%

See Definitions and Presentation on page 1.

The GAAP underwriting ratios are calculated by dividing each item above by net premiums earned.

The Statutory underwriting ratios are based on statutory accounting principles and are calculated as follows:

(1) Net losses & LAE are divided by net premiums earned;

(2) Net acquisition expenses are divided by net premiums written and exclude changes in deferred acquisition costs; and

(3) Other underwriting expenses are divided by net premiums written.

- 18 -

Platinum Underwriters Holdings, Ltd.

Net Premiums Written - Supplemental Information

($ in thousands)

	Three Months Ended					Nine Months Ended
	September 30,		September 30,			September 30,		September 30,
	2010		2009			2010		2009

Property and Marine
Excess-of-loss	$	99,478		110,144			276,290	$	273,422
Proportional		15,407		37,304			59,485		129,166
Subtotal Property and Marine		114,885		147,448			335,775		402,588
Casualty
Excess-of-loss		69,881		80,298			219,895		242,549
Proportional		10,481		8,169			26,846		31,391
Subtotal Casualty		80,362		88,467			246,741		273,940
Finite Risk
Excess-of-loss		-		(142	)		-		(150	)
Proportional		4,180		7,817			16,056		20,601
Subtotal Finite Risk		4,180		7,675			16,056		20,451
Combined Segments
Excess-of-loss		169,359		190,300			496,185		515,821
Proportional		30,068		53,290			102,387		181,158
Total	$	199,427		243,590			598,572	$	696,979

	Three Months Ended					Nine Months Ended
	September 30,		September 30,			September 30,		September 30,
		2010		2009			2010		2009
Property and Marine
United States	$	62,272		96,501			183,954	$	266,406
International		52,613		50,947			151,821		136,182
Subtotal Property and Marine		114,885		147,448			335,775		402,588
Casualty
United States		65,707		80,102			208,455		242,635
International		14,655		8,365			38,286		31,305
Subtotal Casualty		80,362		88,467			246,741		273,940
Finite Risk
United States		4,180		7,675			16,056		20,451
International		-		-			-		-
Subtotal Finite Risk		4,180		7,675			16,056		20,451
Combined Segments
United States		132,159		184,278			408,465		529,492
International		67,268		59,312			190,107		167,487
Total	$	199,427		243,590			598,572	$	696,979

- 19 -

Platinum Underwriters Holdings, Ltd.

Premiums by Line of Business - Three Month Summary

($ in thousands)

	Three Months Ended September 30, 2010						Three Months Ended September 30, 2009
	Gross		Net		Net		Gross		Net		Net
	Premiums		Premiums		Premiums		Premiums		Premiums		Premiums
	Written		Written		Earned		Written		Written		Earned

Property and Marine
North American Property Proportional	$	2,057		2,057		1,642		1,741		1,741	$	2,221
North American Property Catastrophe		36,382		36,380		28,003		40,817		40,815		35,166
North American Property Risk		11,622		11,642		12,766		28,687		22,178		20,681
Other Property		12,930		12,930		13,228		32,784		32,784		32,370
Marine / Aviation Proportional		1,188		1,188		1,192		462		462		1,733
Marine / Aviation Excess		4,234		4,234		4,094		3,693		3,675		4,161
International Property Proportional		3,571		3,571		4,314		6,198		6,198		2,582
International Property Catastrophe		39,222		39,206		29,616		40,476		35,719		30,275
International Property Risk		3,677		3,677		3,487		3,876		3,876		3,378
Subtotal		114,883		114,885		98,342		158,734		147,448		132,567

Casualty
Clash		3,094		3,094		3,125		3,870		3,870		3,924
1st Dollar GL		2,705		2,705		2,484		3,227		3,227		3,988
1st Dollar Other		1,652		1,652		1,489		1,467		1,467		1,463
Casualty Excess		47,205		47,205		49,715		54,770		54,770		59,923
Accident & Health		9,792		9,792		8,689		15,131		15,131		9,976
International Casualty		8,452		8,452		8,965		5,370		5,370		5,833
International Motor		1,091		1,091		986		927		927		805
Financial Lines		6,371		6,371		4,984		3,705		3,705		4,679
Subtotal		80,362		80,362		80,437		88,467		88,467		90,591

Finite Risk
Finite Property		-		-		-		-		-		-
Finite Casualty		4,180		4,180		4,625		7,675		7,675		6,380
Subtotal		4,180		4,180		4,625		7,675		7,675		6,380

Total	$	199,425		199,427		183,404		254,876		243,590	$	229,538

- 20 -

Platinum Underwriters Holdings, Ltd.

Premiums by Line of Business - Nine Month Summary

($ in thousands)

	Nine Months Ended September 30, 2010						Nine Months Ended September 30, 2009
	Gross		Net		Net		Gross			Net			Net
	Premiums		Premiums		Premiums		Premiums			Premiums			Premiums
	Written		Written		Earned		Written			Written			Earned

Property and Marine
North American Property Proportional	$	6,076		6,076		5,032		5,301			5,301		$	8,965
North American Property Catastrophe		104,416		94,189		96,128		96,654			95,401			88,047
North American Property Risk		40,970		39,136		43,687		71,834			57,625			57,133
Other Property		46,929		46,929		46,987		111,424			111,424			110,794
Marine / Aviation Proportional		4,204		4,204		5,022		6,572			6,572			7,453
Marine / Aviation Excess		10,692		10,703		10,829		12,513			12,533			16,347
International Property Proportional		11,740		11,740		11,808		15,091			15,091			14,069
International Property Catastrophe		117,303		113,733		98,471		95,273			88,636			82,508
International Property Risk		9,065		9,065		8,734		10,005			10,005			9,238
Subtotal		351,395		335,775		326,698		424,667			402,588			394,554

Casualty
Clash		10,860		10,860		10,708		12,223			12,223			12,150
1st Dollar GL		8,183		8,183		7,929		11,232			11,232			13,818
1st Dollar Other		4,282		4,282		3,426		4,264			4,264			4,462
Casualty Excess		153,467		153,467		162,422		176,729			176,729			202,468
Accident & Health		30,618		30,618		27,006		32,379			32,379			24,061
International Casualty		21,494		21,494		21,821		23,699			23,699			26,290
International Motor		2,938		2,938		2,815		2,529			2,529			2,407
Financial Lines		14,899		14,899		17,378		10,885			10,885			14,056
Subtotal		246,741		246,741		253,505		273,940			273,940			299,712

Finite Risk
Finite Property		-		-		-		(8	)		(8	)		(8	)
Finite Casualty		16,056		16,056		14,811		20,459			20,459			15,494
Subtotal		16,056		16,056		14,811		20,451			20,451			15,486

Total	$	614,192		598,572		595,014		719,058			696,979		$	709,752

- 21 -

Platinum Underwriters Holdings, Ltd.

Investment Portfolio

($ in thousands)

	September 30, 2010								December 31, 2009
			Weighted Average			Weighted Average					Weighted Average			Weighted Average
	Fair Value		Book Yield			Market Yield			Fair Value		Book Yield			Market Yield

Available-for-sale securities
U.S. Government	$	531,941		2.9	%		2.6	%	$	608,697		2.9	%		3.0	%
U.S. Government agencies		100,790		0.7	%		0.2	%		101,082		0.6	%		0.2	%
Corporate bonds		411,921		4.9	%		2.8	%		476,986		5.1	%		3.6	%
Commercial mortgage-backed securities		210,144		5.0	%		4.6	%		215,020		5.5	%		7.4	%
Residential mortgage-backed securities		176,076		4.7	%		5.7	%		714,703		4.6	%		5.4	%
Asset-backed securities		23,695		2.3	%		9.3	%		59,699		2.6	%		4.2	%
Municipal bonds		1,170,441		4.6	%		3.5	%		759,501		4.2	%		3.3	%
Non-U.S. governments		77,463		2.9	%		1.3	%		578,364		3.1	%		2.5	%
Total Fixed Maturities		2,702,471		4.1	%		3.3	%		3,514,052		4.0	%		3.8	%
Preferred Stocks		-		-			-			3,897		29.8	%		13.2	%
Total	$	2,702,471		4.1	%		3.3	%	$	3,517,949		4.0	%		3.8	%

Trading securities
Insurance-linked securities	$	26,300		10.8	%		6.5	%	$	25,682		10.7	%		8.5	%
Non-U.S. dollar denominated securities:
U.S. Government agencies		16,058		1.9	%		1.1	%		16,423		1.9	%		1.8	%
Corporate bonds		70		4.5	%		2.1	%		77		4.5	%		2.1	%
Non-U.S. governments		129,452		3.6	%		1.7	%		100,384		4.6	%		3.1	%
Total	$	171,880		4.6	%		2.4	%	$	142,566		5.4	%		3.9	%


	September 30, 2010								December 31, 2009
	Amount		% of Total						Amount		% of Total
Credit quality of investment portfolio*
Aaa	$	1,297,026		45.1	%				$	2,341,963		64.0	%
Aa		733,754		25.5	%					517,404		14.1	%
A		486,731		16.9	%					404,711		11.1	%
Baa		254,645		8.9	%					315,275		8.6	%
Below investment grade		102,195		3.6	%					81,162		2.2	%
Total	$	2,874,351		100.0	%				$	3,660,515		100.0	%


Credit quality
Weighted average credit quality	Aa2								Aa2

* Rated using external rating agencies (primarily Moody's).
(Aaa-Best Quality; Aa-High Quality; A-Upper to Medium Quality, Baa - Investment Grade)

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Platinum Underwriters Holdings, Ltd.

Available-for-Sale Security Detail

($ in thousands)

	September 30, 2010
			Unrealized			Credit			Weighted
	Fair Value		Gain (Loss)			Quality	Duration		Average Life

Available-for-sale securities
U.S. Government	$	531,941	$	15,446		Aaa		8.6

U.S. Government agencies		100,790		790		Aaa		0.3

Corporate bonds:
Industrial		268,919		19,217		A3		4.1
Utilities		67,903		4,566		A3		4.5
Insurance		59,067		3,608		A3		4.0
Finance		16,032		(454	)	Baa2		7.9
Subtotal		411,921		26,937		A3		4.3

Commercial mortgage-backed securities		210,144		8,858		Aa2		3.7		4.5

Residential mortgage-backed securities:
U.S. Government agency residential mortgage-backed securities		87,268		3,961		Aaa		1.1		2.7
Non-agency residential mortgage-backed securities		81,743		(31,633	)	Ba2		0.1		3.8
Alt-A residential mortgage-backed securities		7,065		(5,077	)	Caa2		-		4.5
Subtotal		176,076		(32,749	)	A3		0.6		3.3

Asset-backed securities:
Asset-backed securities		13,356		(244	)	Aaa		-		7.1
Sub-prime asset-backed securities		10,339		(10,027	)	Caa3		-		12.2
Subtotal		23,695		(10,271	)	Baa2		-		9.3

Municipal bonds		1,170,441		67,176		Aa2		7.1

Non-U.S. governments		77,463		2,339		Aa1		2.2

Total	$	2,702,471	$	78,526		Aa2		5.8

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Platinum Underwriters Holdings, Ltd.

Corporate Bonds Detail

($ in thousands)

	September 30, 2010
					Unrealized		Credit
	Par Value		Fair Value		Gain (Loss)		Quality

Largest Holdings by Issuer
MetLife, Inc.	$	17,897		18,516	$	522		A3
Philip Morris International Inc.		14,000		16,154		1,560		A2
BHP Billiton Limited		13,000		14,312		1,154		A1
Marathon Oil Corporation		10,000		12,107		1,217	Baa1
Hewlett-Packard Company		10,000		11,381		899		A2
HCC Insurance Holdings, Inc.		10,000		10,777		700	Baa1
Anglo American plc		8,000		10,426		462	Baa1
Consolidated Edison, Inc.		9,400		10,189		774		A3
Mattel, Inc.		10,000		10,148		1	Baa2
Kraft Foods Inc.		9,200		9,805		305	Baa2
Rio Tinto plc		7,250		9,445		896	Baa1
Diageo plc		7,750		8,580		737		A3
Wal-Mart Stores, Inc.		6,600		8,484		278	Aa2
AT&T Inc.		7,000		7,873		837		A2
Snap-On Incorporated		7,000		7,808		766	Baa1
The Southern Company		7,525		7,666		142		A2
EOG Resources, Inc.		6,660		7,205		365		A3
American Electric Power Company, Inc.		6,000		6,818		743	Baa2
Pfizer Inc.		6,000		6,699		660		A1
Northeast Utilities	$	6,000		6,672	$	671		A2

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Platinum Underwriters Holdings, Ltd.

Net Realized Gains on Investments and Net Impairment Losses on Investments

($ in thousands)

	Three Months Ended				Nine Months Ended
	September 30,		September 30,		September 30,		September 30,
	2010		2009		2010		2009

Net realized gains on investments by entity:
Subsidiary domiciled in Bermuda	$	22,441		18,556		59,087	$	42,578
Subsidiaries domiciled in the United States		21,910		3,997		40,210		11,335
Subsidiary domiciled in the United Kingdom		-		-		-		4
Total	$	44,351		22,553		99,297	$	53,917


Net realized gains on investments by type:
Sale of securities	$	42,441		18,078		95,043	$	47,846
Mark-to-market on trading securities		1,910		4,475		4,254		6,071
Total	$	44,351		22,553		99,297	$	53,917


Net impairment losses on investments by entity:
Subsidiary domiciled in Bermuda	$	3,870		3,471		13,139	$	8,479
Subsidiaries domiciled in the United States		178		1,604		12,421		3,260
Total	$	4,048		5,075		25,560	$	11,739


Net impairment losses on investments by type of security:
Commercial mortgage-backed securities	$	12		1,637		7,743	$	2,617
Residential mortgage-backed securities		2,885		2,016		5,625		5,775
Asset-backed securities		1,151		1,422		12,192		2,139
Preferred stocks		-		-		-		1,208
Total	$	4,048		5,075		25,560	$	11,739

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Platinum Underwriters Holdings, Ltd.

Analysis of Losses and Loss Adjustment Expenses

($ in thousands)

	Analysis of Losses and Loss Adjustment Expenses
	Nine Months Ended September 30, 2010 (a)												Twelve Months Ended December 31, 2009 (b)
	Gross			Ceded			Net			Paid to Incurred %			Gross			Ceded		Net			Paid to Incurred %

Paid losses and loss adjustment expenses	$	473,891			8,052		$	465,839			147.8	%	$	620,332			13,122	$	607,210			126.9	%
Change in unpaid losses and loss adjustment expenses		(152,368	)		(1,666	)		(150,702	)					(126,020	)		2,848		(128,868	)
Losses and loss adjustment expenses incurred	$	321,523			6,386		$	315,137					$	494,312			15,970	$	478,342


	Analysis of Unpaid Losses and Loss Adjustment Expenses

	As of September 30, 2010												As of December 31, 2009
	Gross			Ceded			Net			%			Gross			Ceded		Net			%

Outstanding losses and loss adjustment expenses	$	686,967			9,382		$	677,585			31.1	%	$	680,487			9,169	$	671,318			28.8	%
Incurred but not reported		1,507,206			3,247			1,503,959			68.9	%		1,668,849			5,159		1,663,690			71.2	%
Unpaid losses and loss adjustment expenses	$	2,194,173			12,629		$	2,181,544			100.0	%	$	2,349,336			14,328	$	2,335,008			100.0	%


(a) Gross and ceded losses and loss adjustment expenses incurred includes effects of foreign currency exchange rate gains and losses of $2,795 and $33, respectively.

(b) Gross and ceded losses and loss adjustment expenses incurred includes effects of foreign currency exchange rate gains and losses of $19 and $11,850, respectively.

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Platinum Underwriters Holdings, Ltd.

Summary of Favorable (Unfavorable) Development of Losses and Related Premiums & Commissions

($ in thousands)

		Three Months Ended September 30, 2010						Three Months Ended September 30, 2009
		Property and Marine	Casualty	Finite Risk		Total		Property and Marine	Casualty	Finite Risk		Total

Non-Catastrophe Favorable (Unfavorable) Development
Net loss development related to prior years	$	3,281	33,091	3,230	$	39,602	$	11,457	7,108	10,695	$	29,260
Net premium adjustments related to prior years' losses		1,719	1,993	-		3,712		485	116	-		601
Net commission adjustments related to prior years' losses		(1,436)	1,491	(1,134)		(1,079)		382	2,135	(11,999)		(9,482)
Net favorable (unfavorable) development		3,564	36,575	2,096		42,235		12,324	9,359	(1,304)		20,379

Catastrophe Favorable (Unfavorable) Development
Net loss development related to prior years		(7,803)	44	-		(7,759)		979	(1)	-		978
Net premium adjustments related to prior years' losses		113	-	-		113		(1,068)	-	-		(1,068)
Net commission adjustments related to prior years' losses		-	-	-		-		-	-	-		-
Net favorable (unfavorable) development		(7,690)	44	-		(7,646)		(89)	(1)	-		(90)

Total net favorable (unfavorable) development	$	(4,126)	36,619	2,096	$	34,589	$	12,235	9,358	(1,304)	$	20,289



		Nine Months Ended September 30, 2010						Nine Months Ended September 30, 2009
		Property and Marine	Casualty	Finite Risk		Total		Property and Marine	Casualty	Finite Risk		Total

Non-Catastrophe Favorable (Unfavorable) Development
Net loss development related to prior years	$	42,394	89,046	7,922	$	139,362	$	12,454	43,774	8,470	$	64,698
Net premium adjustments related to prior years' losses		2,708	2,423	-		5,131		1,749	(40)	-		1,709
Net commission adjustments related to prior years' losses		(5,290)	5,057	(10,310)		(10,543)		6,081	5,766	(10,403)		1,444
Net favorable (unfavorable) development		39,812	96,526	(2,388)		133,950		20,284	49,500	(1,933)		67,851

Catastrophe Favorable (Unfavorable) Development
Net loss development related to prior years		(8,494)	49	-		(8,445)		(2,548)	(58)	59		(2,547)
Net premium adjustments related to prior years' losses		(1,353)	-	-		(1,353)		630	-	-		630
Net commission adjustments related to prior years' losses		-	-	-		-		-	-	-		-
Net favorable (unfavorable) development		(9,847)	49	-		(9,798)		(1,918)	(58)	59		(1,917)

Total net favorable (unfavorable) development	$	29,965	96,575	(2,388)	$	124,152	$	18,366	49,442	(1,874)	$	65,934

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Platinum Underwriters Holdings, Ltd.
Estimated Exposures to Peak Zone Property Catastrophe Losses
As of October 1, 2010
($ in millions)


Estimated Probable Maximum Losses by Zone and Peril

			20 Year Return Period			100 Year Return Period		250 Year Return Period
Zones	Perils		Estimated Gross Loss		Estimated Net Loss	Estimated Gross Loss	Estimated Net Loss	Estimated Gross Loss		Estimated Net Loss

United States / Caribbean	Hurricane	$	174		144	371	306	433	$	366
United States	Earthquake		11		11	228	228	295		295
Pan-European	Windstorm		151		124	309	250	371		311
Japan	Earthquake		14		14	141	141	298		298
Japan	Typhoon	$	6		6	70	70	79	$	79


Indicative Catastrophe Scenarios

Catastrophe Scenarios			Estimated Company Net Loss Interquartile Range

Category 3 U.S. / Caribbean Hurricane		$	12	-	33
Category 4 U.S. / Caribbean Hurricane			16	-	71
Magnitude 6.9 California Earthquake			0	-	3
Magnitude 7.5 California Earthquake		$	0	-	6

The Company has developed the estimates of losses expected from certain catastrophes for its portfolio of property, marine, workers’ compensation, personal accident contracts and catastrophe contributions from insurance-linked securities using commercially available catastrophe models, which are applied and adjusted by the Company. These estimates include assumptions regarding the location, size and magnitude of an event, the frequency of events, the construction type and damageability of property in a zone, and the cost of rebuilding property in a zone, among other assumptions. These estimates do not include any losses that may be expected to arise from the Company’s casualty portfolio as a result of such catastrophes. Return period refers to the frequency with which losses of a given amount or greater are expected to occur.

Gross loss estimates are before income tax and net of reinstatement premiums. Net loss estimates are before income tax, net of reinstatement premiums, and net of retrocessional recoveries. Ranges shown for indicative catastrophe scenarios are interquartile reflecting the middle 50% of indications. That is, 25% of indications fall below the low end of a given range and 25% of indications fall above the high end of that range. Thus, an actual event may produce losses that fall materially outside the indicated ranges.

The estimates set forth above are based on assumptions that are inherently subject to significant uncertainties and contingencies. These uncertainties and contingencies can affect actual losses and could cause actual losses to differ materially from those expressed above. In particular, modeled loss estimates do not necessarily accurately predict actual losses, and may significantly misestimate actual losses. Such estimates, therefore, should not be considered as a representation of actual losses. Investors should not rely on the foregoing information when considering investment in the Company. The Company undertakes no duty to update or revise such information to reflect the occurrence of future events.

- 28 -

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