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8-K - LIVE FILING - PLATINUM UNDERWRITERS HOLDINGS LTD | htm_41149.htm |
EXHIBIT 99.1
Contact: | Lily Outerbridge Investor Relations (441) 298-0760 |
PLATINUM UNDERWRITERS HOLDINGS, LTD.
COMMENTS ON RECENT NATURAL CATASTROPHE EVENTS
HAMILTON, BERMUDA, March 22, 2011 Platinum Underwriters Holdings, Ltd. (NYSE: PTP) announced today its preliminary loss estimates for the 2011 Australian floods and Cyclone Yasi and the 2011 New Zealand earthquake. The Company also reaffirmed its confidence in the adequacy of its loss reserves for 2010 natural catastrophe events and commented on the recent earthquake and tsunami in Japan.
The Company currently expects the 2011 Australian floods and Cyclone Yasi and the 2011 New Zealand earthquake will have a net negative impact of approximately $25 million and $135 million, respectively, on the Companys first quarter 2011 results. The net negative impact of these events includes estimates of losses and loss adjustment expenses, net of reinstatement premiums, taxes, retrocessional coverage and the expected impact of foreign exchange rates. The Companys preliminary estimates are based on currently available industry loss estimates, market share analysis, the Companys portfolio modeling and a review of the Companys in-force contracts, as well as claims information and analysis received from certain brokers and clients.
The Company currently believes the reserves it carries for natural catastrophe events that occurred in the year ended December 31, 2010, including the earthquakes in Chile and New Zealand, are adequate.
The Company provides reinsurance coverage for earthquake and tsunami risk in Japan and is currently assessing its exposures to the Tohoku earthquake that struck the northeastern coast of Japan less than two weeks ago. The Company believes providing an estimate of the net negative impact on the Companys results from the Tohoku earthquake would be premature at this time given its magnitude and recent occurrence. However, the Companys modeling of its property and marine portfolio indicates that the Companys share of industry losses from the Tohoku earthquake will be between approximately 0.25% and 0.40% of total industry losses.
The Companys assessment of its exposure to these events is ongoing. The actual net negative impact of these events on the Companys results may differ materially from the Companys estimates due to the inherent uncertainties of making such estimates, including the preliminary nature of available information, potential inaccuracies and inadequacies in data provided by clients and brokers and the use of portfolio models in the estimation process.
Michael D. Price, President and Chief Executive Officer of Platinum, commented, Despite the recent increased frequency of major natural catastrophes, we believe Platinum remains well capitalized and we continue participating selectively in the reinsurance marketplace. The recent disasters demonstrate the inherent volatility of business exposed to property catastrophes. Nevertheless, we believe that writing such business, when adequately priced, is an important element of our strategy for delivering attractive long term returns to shareholders.
Mr. Price added, We believe the Tohoku earthquake is an activation event under our contract with Topiary Capital Limited and that we now benefit from up to $200 million of collateralized retrocessional protection for certain catastrophe events that may occur prior to August 2011.
Mr. Price further added, Our sympathies are with those adversely affected by these natural catastrophe events.
About Platinum
Platinum Underwriters Holdings, Ltd. 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. For
further information, please visit Platinums 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 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 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. and Standard & Poors 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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