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

Attached files

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8-K - PLATINUM UNDERWRITERS HOLDINGS LTD	firstquarter2011_8k.htm
EX-99.1 - PLATINUM UNDERWRITERS HOLDINGS LTD	pressreleaseq1_2011.htm

Exhibit 99.2

Financial Supplement

Financial Information
as of March 31, 2011
(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.

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

Platinum Underwriters Holdings, Ltd.

Overview

March 31, 2011

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, 2010. 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, book value per common share 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 natural or man-made catastrophic events, 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. For a detailed discussion of our risk factors, refer to Item 1A, "Risk Factors," in our Annual Report on Form 10-K for the year ended December 31, 2010.

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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 - by Quarter	4

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

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

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

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

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

Net Premiums Written Data:
a. Net Premiums Written - Supplemental Information	18
b. Premiums by Line of Business - Three Month Summary	19

Investments:
a. Investment Portfolio	20
b. Available-for-Sale Security Detail	21
c. Corporate Bonds Detail	22
d. Municipal Bonds Detail	23
e. Net Realized Gains (Losses) on Investments and Net Impairment Losses on Investments	24

Loss Reserves:
a. Analysis of Losses and Loss Adjustment Expenses	25
b. Summary of Favorable (Unfavorable) Development of Losses and Related Premiums and Commissions	26

Exposures:
a. Estimated Exposures to Peak Zone Property Catastrophe Losses	27

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Platinum Underwriters Holdings, Ltd.
Financial Highlights
March 31, 2011 and 2010
($ and amounts in thousands, except per share data)

	Three Months Ended
	March 31,			March 31,
	2011			2010

Highlights
Net premiums written	$	194,785		$	247,427
Net premiums earned		182,881			220,178
Underwriting income (loss)		(183,552	)		2,774
Net investment income		32,378			37,505
Net operating income (loss) (a)		(155,743	)		23,308
Net realized gains on investments		407			5,457
Net impairment losses on investments		(1,507	)		(18,102	)
Net income (loss)	$	(157,192	)	$	15,421

Total assets	$	4,616,774		$	5,094,030
Investments and cash		4,140,265			4,515,828
Total shareholders' equity		1,665,173			2,083,644
Unpaid losses and loss adjustment expenses	$	2,428,477		$	2,378,253

Per share data
Common shares outstanding		37,270			44,722
Weighted average common shares outstanding - basic		37,199			45,431
Adjusted weighted average common shares outstanding - diluted		38,022			48,494
Basic earnings (loss) per common share	$	(4.20	)	$	0.34
Diluted earnings (loss) per common share		(4.20	)		0.32
Operating income (loss) per common share - diluted (a)		(4.16	)		0.47
Dividends per common share		0.08			0.08
Book value per common share	$	44.68		$	46.59

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

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Platinum Underwriters Holdings, Ltd.

Condensed Consolidated Balance Sheets - by Quarter

($ in thousands, except per share data)

	March 31,			December 31,			September 30,		June 30,		March 31,
	2011			2010			2010		2010		2010

Assets
Investments	$	2,978,381		$	3,047,973		$	2,874,351	$	3,335,914	$	3,754,054
Cash, cash equivalents and short-term investments		1,161,884			1,164,525			1,664,833		1,192,099		761,774
Accrued investment income		33,855			31,288			27,315		28,373		32,031
Reinsurance premiums receivable		208,959			162,682			175,914		160,729		320,724
Reinsurance balances (prepaid and recoverable)		49,992			18,434			24,253		28,036		28,025
Funds held by ceding companies		76,914			84,078			82,428		85,030		85,695
Deferred acquisition costs		36,417			36,584			39,841		38,994		43,381
Other assets		70,372			68,749			47,324		65,574		68,346
Total assets	$	4,616,774		$	4,614,313		$	4,936,259	$	4,934,749	$	5,094,030

Liabilities
Unpaid losses and loss adjustment expenses	$	2,428,477		$	2,217,378		$	2,194,173	$	2,224,026	$	2,378,253
Unearned premiums		167,516			154,975			180,432		168,545		205,606
Debt obligations		250,000			250,000			250,000		250,000		250,000
Commissions payable		64,816			59,388			58,460		57,370		96,451
Other liabilities		40,792			37,117			88,321		129,373		80,076
Total liabilities	$	2,951,601		$	2,718,858		$	2,771,386	$	2,829,314	$	3,010,386

Shareholders' Equity
Common shares	$	373		$	377		$	393	$	411	$	447
Additional paid-in capital		371,493			453,619			619,112		695,967		829,712
Accumulated other comprehensive income (loss)		(12,484	)		(24,488	)		58,595		12,700		(22,133	)
Retained earnings		1,305,791			1,465,947			1,486,773		1,396,357		1,275,618
Total shareholders' equity	$	1,665,173		$	1,895,455		$	2,164,873	$	2,105,435	$	2,083,644

Total liabilities and shareholders' equity	$	4,616,774		$	4,614,313		$	4,936,259	$	4,934,749	$	5,094,030


Book value per common share (a)	$	44.68		$	50.20		$	55.13	$	51.23	$	46.59

(a) Book value per common share is determined by dividing shareholders' equity by actual common shares outstanding of 37,269,612 shares.

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Platinum Underwriters Holdings, Ltd.

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)

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

	Three Months Ended
	March 31,			March 31,
	2011			2010

Revenue
Net premiums earned	$	182,881		$	220,178
Net investment income		32,378			37,505
Net realized gains on investments		407			5,457
Net impairment losses on investments		(1,507	)		(18,102	)
Other income		1,096			273
Total revenue		215,255			245,311

Expenses
Net losses and loss adjustment expenses		319,595			164,568
Net acquisition expenses		33,950			37,329
Net changes in fair value of derivatives		(3,726	)		2,315
Operating expenses		17,151			21,741
Net foreign currency exchange losses (gains)		189			(1,229	)
Interest expense		4,766			4,760
Total expenses		371,925			229,484

Income (loss) before income taxes		(156,670	)		15,827
Income tax expense		522			406

Net income (loss)	$	(157,192	)	$	15,421

Basic
Weighted average common shares outstanding		37,199			45,431
Basic earnings (loss) per common share	$	(4.20	)	$	0.34

Diluted
Adjusted weighted average common shares outstanding		38,022			48,494
Diluted earnings (loss) per common share	$	(4.20	)	$	0.32

Comprehensive income (loss)
Net income (loss)	$	(157,192	)	$	15,421
Other comprehensive income, net of deferred taxes		12,004			47,872
Comprehensive income (loss)	$	(145,188	)	$	63,293

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Platinum Underwriters Holdings, Ltd.

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) - by Quarter

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

	Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2011			2010			2010			2010			2010

Revenue
Net premiums earned	$	182,881		$	184,980		$	183,404		$	191,432		$	220,178
Net investment income		32,378			30,430			31,078			35,372			37,505
Net realized gains on investments		407			8,494			44,351			49,489			5,457
Net impairment losses on investments		(1,507	)		(11,050	)		(4,048	)		(3,410	)		(18,102	)
Other income (expense)		1,096			(165	)		(171	)		(144	)		273
Total revenue		215,255			212,689			254,614			272,739			245,311

Expenses
Net losses and loss adjustment expenses		319,595			152,283			79,094			71,475			164,568
Net acquisition expenses		33,950			32,742			32,517			44,088			37,329
Net changes in fair value of derivatives		(3,726	)		3,089			4,154			30			2,315
Operating expenses		17,151			20,731			20,004			20,160			21,741
Net foreign currency exchange losses (gains)		189			2,446			235			(67	)		(1,229	)
Interest expense		4,766			4,764			4,763			4,709			4,760
Total expenses		371,925			216,055			140,767			140,395			229,484

Income (loss) before income taxes		(156,670	)		(3,366	)		113,847			132,344			15,827
Income tax expense		522			14,358			20,185			8,205			406

Net income (loss)	$	(157,192	)	$	(17,724	)	$	93,662		$	124,139		$	15,421

Basic
Weighted average common shares outstanding		37,199			38,670			40,485			43,225			45,431
Basic earnings (loss) per common share	$	(4.20	)	$	(0.46	)	$	2.31		$	2.87		$	0.34

Diluted
Adjusted weighted average common shares outstanding		38,022			40,953			44,044			46,249			48,494
Diluted earnings (loss) per common share	$	(4.20	)	$	(0.46	)	$	2.13		$	2.68		$	0.32

Comprehensive income (loss)
Net income (loss)	$	(157,192	)	$	(17,724	)	$	93,662		$	124,139		$	15,421
Other comprehensive income (loss), net of deferred taxes		12,004			(83,083	)		45,895			34,833			47,872
Comprehensive income (loss)	$	(145,188	)	$	(100,807	)	$	139,557		$	158,972		$	63,293

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Platinum Underwriters Holdings, Ltd.

Computation of Net Operating Income (Loss) and Net Operating Income (Loss) per Diluted Common Share

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

	Three Months Ended
	March 31,			March 31,
	2011			2010

Net income (loss)	$	(157,192	)	$	15,421

Adjustments for:
Net realized gains on investments, net of tax		(178	)		(5,159	)
Net impairment losses on investments, net of tax		1,462			14,261
Net foreign currency exchange losses (gains), net of tax		165			(1,215	)
Net operating income (loss) (a)	$	(155,743	)	$	23,308

Per diluted common share:
Net income (loss)	$	(4.20	)	$	0.32
Adjustments for:
Net realized gains on investments		-			(0.11	)
Net impairment losses on investments		0.04			0.29
Net foreign currency exchange losses (gains)		-			(0.03	)
Net operating income (loss) (b)	$	(4.16	)	$	0.47

Adjusted weighted average common shares outstanding - diluted (c)		37,199			48,494

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

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

(c) The adjusted weighted average common shares outstanding - diluted for the three months ended March 31, 2011 was 38,022. During a period of loss, the basic weighted average common shares outstanding is used in the denominator of the diluted loss per common share computation as the effect of including potential dilutive shares would be anti-dilutive.

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Platinum Underwriters Holdings, Ltd.

Key Ratios, Share Data, Ratings

	As of and for the Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2011			2010			2010			2010			2010

Key Ratios

Combined ratio (%)		200.4	%		107.8	%		68.1	%		67.4	%		98.7	%

Investable assets to shareholders' equity ratio	2.49:1			2.22:1			2.10:1			2.15:1			2.17:1

Debt to total capital (%)		13.1	%		11.7	%		10.4	%		10.6	%		10.7	%

Net premiums written (annualized) to shareholders' equity		0.47			0.34			0.37			0.29			0.47


Share Data

Book value per common share (a)	$	44.68		$	50.20		$	55.13		$	51.23		$	46.59

Common shares outstanding (000's)		37,270			37,758			39,266			41,095			44,722

Market Price Per Common Share
High	$	46.42		$	45.80		$	44.04		$	39.28		$	38.89
Low		34.70			42.10			35.63			35.06			34.60
Close	$	38.09		$	44.97		$	43.52		$	36.29		$	37.08

Industry Ratings

Financial Strength Ratings:
A.M. Best Company, Inc.		A			A			A			A			A
Standard & Poor's Ratings Services		A			A			A			A			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		144			144			145			145			145

(a) Book value per common share is determined by dividing shareholders' equity by actual common shares outstanding of 37,269,612 shares.

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Platinum Underwriters Holdings, Ltd.

Computation of Basic and Diluted Earnings (Loss) Per Common Share

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

	Three Months Ended
	March 31,			March 31,
	2011			2010

Earnings (Loss)
Basic and diluted
Net income (loss) available to common shareholders	$	(157,192	)	$	15,421
Net income (loss) allocated to participating common shareholders (a)		(932	)		-
Net income (loss) allocated to common shareholders	$	(156,260	)	$	15,421

Common Shares
Basic
Weighted average common shares outstanding		37,199			45,431

Diluted
Weighted average common shares outstanding		37,199			45,431
Effect of dilutive securities:
Common share options		438			2,540
Restricted share units		385			523
Adjusted weighted average common shares outstanding		38,022			48,494


Earnings (Loss) Per Common Share
Basic earnings (loss) per common share	$	(4.20	)	$	0.34

Diluted earnings (loss) per common share (b)	$	(4.20	)	$	0.32

(a) Represents earnings attributable to holders of unvested restricted shares issued under the Company's share incentive plans that are considered to be participating securities.

(b) During a period of loss, the basic weighted average common shares outstanding is used in the denominator of the diluted loss per common share computation as the effect of including potential dilutive shares would be anti-dilutive.

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Platinum Underwriters Holdings, Ltd.

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

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

	Three Months Ended
	March 31,			December 31,			September 30,		June 30,		March 31,
	2011			2010			2010		2010		2010

Earnings (Loss)
Basic and diluted
Net income (loss) available to common shareholders	$	(157,192	)	$	(17,724	)	$	93,662	$	124,139	$	15,421
Net income (loss) allocated to participating common shareholders (a)		(932	)		-			-		-		-
Net income (loss) allocated to common shareholders	$	(156,260	)	$	(17,724	)	$	93,662	$	124,139	$	15,421

Common Shares
Basic
Weighted average common shares outstanding		37,199			38,670			40,485		43,225		45,431

Diluted
Weighted average common shares outstanding		37,199			38,670			40,485		43,225		45,431
Effect of dilutive securities:
Common share options		438			1,703			3,064		2,583		2,540
Restricted share units		385			580			495		441		523
Adjusted weighted average common shares outstanding		38,022			40,953			44,044		46,249		48,494


Earnings (Loss) Per Common Share
Basic earnings (loss) per common share	$	(4.20	)	$	(0.46	)	$	2.31	$	2.87	$	0.34

Diluted earnings (loss) per common share (b)	$	(4.20	)	$	(0.46	)	$	2.13	$	2.68	$	0.32

(a) Represents earnings attributable to holders of unvested restricted shares issued under the Company's share incentive plans that are considered to be participating securities.

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Platinum Underwriters Holdings, Ltd.

Book Value Per Common Share

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

	March 31,		March 31,
	2011		2010

Price per share at period end	$	38.09	$	37.08

Shareholders' equity	$	1,665,173	$	2,083,644
Add: Assumed exercise of share options		33,488		62,834
Shareholders' equity - diluted	$	1,698,661	$	2,146,478

Basic common shares outstanding		37,270		44,722
Add: Common share options (a)		-		2,284
Add: Management and directors' options (b)		1,054		2,041
Add: Directors' and officers' restricted share units (c)		505		849
Diluted common shares outstanding		38,829		49,896


Book Value Per Common Share
Basic book value per common share	$	44.68	$	46.59

Fully converted book value per common share	$	43.75	$	43.02

(a) Options with a price of $27.00.

(b) Options with a price below $38.09 the closing share price at March 31, 2011.

(c) As of March 31, 2011 there were 37,270 common shares issued and outstanding. Included in this number were 218 restricted shares issued but unvested.

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Platinum Underwriters Holdings, Ltd.

Condensed Consolidated Statements of Cash Flows

($ in thousands)

	Three Months Ended
	March 31,			March 31,
	2011			2010

Net cash provided by (used in) operating activities	$	(5,228	)	$	34,424

Net cash provided by (used in) investing activities		163,159			(121,060	)

Net cash provided by (used in) financing activities		(84,046	)		(60,063	)

Effect of foreign currency exchange rate changes on cash		2,969			(3,043	)

Net increase (decrease) in cash and cash equivalents	$	76,854		$	(149,742	)

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Platinum Underwriters Holdings, Ltd.

Condensed Consolidated Statements of Cash Flows - by Quarter

($ in thousands)

	Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2011			2010			2010			2010			2010

Net cash provided by (used in) operating activities	$	(5,228	)	$	(38,042	)	$	41,244		$	(12,897	)	$	34,424

Net cash provided by (used in) investing activities		163,159			(301,531	)		432,699			728,210			(121,060	)

Net cash provided by (used in) financing activities		(84,046	)		(171,626	)		(84,720	)		(140,564	)		(60,063	)

Effect of foreign currency exchange rate changes on cash		2,969			450			7,129			(5,517	)		(3,043	)

Net increase (decrease) in cash and cash equivalents	$	76,854		$	(510,749	)	$	396,352		$	569,232		$	(149,742	)

- 13 -

Platinum Underwriters Holdings, Ltd.

Segment Reporting - Three Month Summary

($ in thousands)

	Three Months Ended March 31, 2011												Three Months Ended March 31, 2010
	Property and Marine			Casualty			Finite Risk			Total			Property and Marine			Casualty			Finite Risk			Total

Net premiums written	$	111,802		$	80,519		$	2,464		$	194,785		$	146,785		$	93,751		$	6,891		$	247,427

Net premiums earned		97,905			80,824			4,152			182,881			127,806			87,902			4,470			220,178
Net losses and loss adjustment expenses		278,330			39,619			1,646			319,595			126,627			31,530			6,411			164,568
Net acquisition expenses		13,626			18,563			1,761			33,950			16,231			17,727			3,371			37,329
Other underwriting expenses		7,321			5,332			235			12,888			8,699			6,470			338			15,507
Segment underwriting income (loss)	$	(201,372	)	$	17,310		$	510			(183,552	)	$	(23,751	)	$	32,175		$	(5,650	)		2,774

Net investment income											32,378												37,505
Net realized gains on investments											407												5,457
Net impairment losses on investments											(1,507	)											(18,102	)
Other income											1,096												273
Net changes in fair value of derivatives											3,726												(2,315	)
Corporate expenses not allocated to segments											(4,263	)											(6,234	)
Net foreign currency exchange (losses) gains											(189	)											1,229
Interest expense											(4,766	)											(4,760	)
Income (loss) before income taxes										$	(156,670	)										$	15,827

Underwriting ratios:
Net loss and loss adjustment expense		284.3	%		49.0	%		39.6	%		174.8	%		99.1	%		35.9	%		143.4	%		74.7	%
Net acquisition expense		13.9	%		23.0	%		42.4	%		18.6	%		12.7	%		20.2	%		75.4	%		17.0	%
Other underwriting expense		7.5	%		6.6	%		5.7	%		7.0	%		6.8	%		7.4	%		7.6	%		7.0	%
Combined		305.7	%		78.6	%		87.7	%		200.4	%		118.6	%		63.5	%		226.4	%		98.7	%

Statutory underwriting ratios:
Net loss and loss adjustment expense		284.3	%		49.0	%		39.6	%		174.8	%		99.1	%		35.9	%		143.4	%		74.7	%
Net acquisition expense		13.4	%		21.6	%		56.5	%		17.3	%		12.5	%		19.3	%		56.6	%		16.3	%
Other underwriting expense		6.5	%		6.6	%		9.5	%		6.6	%		5.9	%		6.9	%		4.9	%		6.3	%
Combined		304.2	%		77.2	%		105.6	%		198.7	%		117.5	%		62.1	%		204.9	%		97.3	%

The 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.

Property and Marine Segment - by Quarter

($ in thousands)

	Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2011			2010			2010			2010			2010

Net premiums written	$	111,802		$	76,900		$	114,885		$	74,105		$	146,785

Net premiums earned		97,905			92,065			98,342			100,550			127,806

Net losses and loss adjustment expenses		278,330			111,215			70,657			35,010			126,627
Net acquisition expenses		13,626			12,635			14,140			17,218			16,231
Other underwriting expenses		7,321			8,354			7,905			7,720			8,699
Segment underwriting income (loss)	$	(201,372	)	$	(40,139	)	$	5,640		$	40,602		$	(23,751	)


Underwriting ratios:
Net loss and loss adjustment expense		284.3	%		120.8	%		71.8	%		34.8	%		99.1	%
Net acquisition expense		13.9	%		13.7	%		14.4	%		17.1	%		12.7	%
Other underwriting expense		7.5	%		9.1	%		8.0	%		7.7	%		6.8	%
Combined		305.7	%		143.6	%		94.2	%		59.6	%		118.6	%

Statutory underwriting ratios:
Net loss and loss adjustment expense		284.3	%		120.8	%		71.8	%		34.8	%		99.1	%
Net acquisition expense		13.4	%		14.6	%		13.1	%		20.3	%		12.5	%
Other underwriting expense		6.5	%		10.9	%		6.9	%		10.4	%		5.9	%
Combined		304.2	%		146.3	%		91.8	%		65.5	%		117.5	%

The 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.

Casualty Segment - by Quarter

($ in thousands)

	Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2011			2010			2010			2010			2010

Net premiums written	$	80,519		$	82,656		$	80,362		$	72,628		$	93,751

Net premiums earned		80,824			90,307			80,437			85,166			87,902

Net losses and loss adjustment expenses		39,619			39,935			8,156			40,058			31,530
Net acquisition expenses		18,563			18,600			16,395			18,752			17,727
Other underwriting expenses		5,332			5,796			5,171			5,654			6,470
Segment underwriting income	$	17,310		$	25,976		$	50,715		$	20,702		$	32,175


Underwriting ratios:
Net loss and loss adjustment expense		49.0	%		44.2	%		10.1	%		47.0	%		35.9	%
Net acquisition expense		23.0	%		20.6	%		20.4	%		22.0	%		20.2	%
Other underwriting expense		6.6	%		6.4	%		6.4	%		6.6	%		7.4	%
Combined		78.6	%		71.2	%		36.9	%		75.6	%		63.5	%

Statutory underwriting ratios:
Net loss and loss adjustment expense		49.0	%		44.2	%		10.1	%		47.0	%		35.9	%
Net acquisition expense		21.6	%		20.3	%		20.2	%		23.3	%		19.3	%
Other underwriting expense		6.6	%		7.0	%		6.4	%		7.8	%		6.9	%
Combined		77.2	%		71.5	%		36.7	%		78.1	%		62.1	%

The 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.

Finite Risk Segment - by Quarter

($ in thousands)

	Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2011			2010			2010			2010			2010

Net premiums written	$	2,464		$	2,461		$	4,180		$	4,985		$	6,891

Net premiums earned		4,152			2,608			4,625			5,716			4,470

Net losses and loss adjustment expenses		1,646			1,133			281			(3,593	)		6,411
Net acquisition expenses		1,761			1,507			1,982			8,118			3,371
Other underwriting expenses		235			302			307			313			338
Segment underwriting income (loss)	$	510		$	(334	)	$	2,055		$	878		$	(5,650	)


Underwriting ratios:
Net loss and loss adjustment expense		39.6	%		43.4	%		6.1	%		(62.9	%)		143.4	%
Net acquisition expense		42.4	%		57.8	%		42.9	%		142.0	%		75.4	%
Other underwriting expense		5.7	%		11.6	%		6.6	%		5.5	%		7.6	%
Combined		87.7	%		112.8	%		55.6	%		84.6	%		226.4	%

Statutory underwriting ratios:
Net loss and loss adjustment expense		39.6	%		43.4	%		6.1	%		(62.9	%)		143.4	%
Net acquisition expense		56.5	%		60.2	%		44.7	%		159.0	%		56.6	%
Other underwriting expense		9.5	%		12.3	%		7.3	%		6.3	%		4.9	%
Combined		105.6	%		115.9	%		58.1	%		102.4	%		204.9	%

The 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.

Net Premiums Written - Supplemental Information

($ in thousands)

	Three Months Ended
	March 31,		March 31,
	2011		2010

Property and Marine
Excess-of-loss	$	94,005	$	122,522
Proportional		17,797		24,263
Subtotal Property and Marine		111,802		146,785
Casualty
Excess-of-loss		63,699		79,831
Proportional		16,820		13,920
Subtotal Casualty		80,519		93,751
Finite Risk
Excess-of-loss		-		-
Proportional		2,464		6,891
Subtotal Finite Risk		2,464		6,891
Combined Segments
Excess-of-loss		157,704		202,353
Proportional		37,081		45,074
Total	$	194,785	$	247,427

	Three Months Ended
	March 31,		March 31,
		2011		2010
Property and Marine
United States	$	51,077	$	81,688
International		60,725		65,097
Subtotal Property and Marine		111,802		146,785
Casualty
United States		71,594		82,381
International		8,925		11,370
Subtotal Casualty		80,519		93,751
Finite Risk
United States		2,464		6,891
International		-		-
Subtotal Finite Risk		2,464		6,891
Combined Segments
United States		125,135		170,960
International		69,650		76,467
Total	$	194,785	$	247,427

- 18 -

Platinum Underwriters Holdings, Ltd.

Premiums by Line of Business - Three Month Summary

($ in thousands)

	Three Months Ended March 31, 2011						Three Months Ended March 31, 2010
	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	$	1,764	$	1,764	$	1,704	$	2,039	$	2,039	$	1,173
North American Property Catastrophe		33,404		27,217		23,572		42,343		42,343		37,890
North American Property Risk		9,873		10,111		10,700		18,950		16,731		17,344
Other Property		12,990		12,990		12,756		21,438		21,438		21,371
Marine / Aviation Proportional		1,843		1,843		1,810		1,179		1,179		1,640
Marine / Aviation Excess		2,071		2,071		2,759		3,724		3,724		3,837
International Property Proportional		4,283		4,283		3,923		3,802		3,802		3,359
International Property Catastrophe		55,001		48,938		38,104		56,134		52,593		38,911
International Property Risk		2,585		2,585		2,577		2,936		2,936		2,281
Subtotal		123,814		111,802		97,905		152,545		146,785		127,806

Casualty
Clash		2,760		2,760		2,595		3,892		3,892		3,832
1st Dollar GL		7,000		7,000		5,196		2,594		2,594		2,705
1st Dollar Other		2,128		2,128		2,303		1,277		1,277		1,094
Casualty Excess		44,120		44,120		46,710		55,579		55,579		58,722
Accident & Health		13,909		13,909		8,219		15,094		15,094		8,749
International Casualty		3,913		3,913		5,341		5,326		5,326		6,854
International Motor		1,159		1,159		1,033		1,064		1,064		940
Financial Lines		5,530		5,530		9,427		8,925		8,925		5,006
Subtotal		80,519		80,519		80,824		93,751		93,751		87,902

Finite Risk
Finite Casualty		2,464		2,464		4,152		6,891		6,891		4,470
Subtotal		2,464		2,464		4,152		6,891		6,891		4,470

Total	$	206,797	$	194,785	$	182,881	$	253,187	$	247,427	$	220,178

- 19 -

Platinum Underwriters Holdings, Ltd.

Investment Portfolio

($ in thousands)

	March 31, 2011								December 31, 2010
			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	$	390,179		1.9	%		2.3	%	$	391,303		1.9	%		2.4	%
U.S. Government agencies		100,487		0.7	%		0.3	%		100,547		0.7	%		0.3	%
Corporate bonds		335,590		4.9	%		3.2	%		366,900		4.9	%		3.2	%
Commercial mortgage-backed securities		203,345		5.4	%		4.2	%		203,313		5.4	%		4.5	%
Residential mortgage-backed securities		139,069		4.4	%		5.8	%		166,458		4.9	%		6.0	%
Asset-backed securities		24,355		1.1	%		7.5	%		23,568		3.6	%		7.6	%
Municipal bonds		1,545,984		4.7	%		4.3	%		1,537,432		4.7	%		4.4	%
Non-U.S. governments		61,119		2.8	%		2.1	%		76,306		2.9	%		1.9	%
Total fixed maturity available-for-sale securities	$	2,800,128		4.1	%		3.8	%	$	2,865,827		4.2	%		3.9	%

Trading securities
Non-U.S. dollar denominated securities:
Non-U.S. governments	$	142,043		3.6	%		2.5	%	$	140,089		3.6	%		2.2	%
U.S. Government agencies		16,220		1.9	%		1.0	%		15,903		1.9	%		1.1	%
Corporate bonds		71		4.5	%		3.4	%		68		4.5	%		2.3	%
Insurance-linked securities		19,919		10.7	%		15.8	%		26,086		10.7	%		6.5	%
Total fixed maturity trading securities	$	178,253		4.3	%		3.8	%	$	182,146		4.5	%		2.7	%


	March 31, 2011								December 31, 2010
	Amount		% of Total						Amount		% of Total
Credit quality of investment portfolio*
Aaa	$	1,195,612		40.2	%				$	1,219,482		40.0	%
Aa		1,031,287		34.6	%					1,033,067		33.9	%
A		453,744		15.2	%					470,525		15.4	%
Baa		204,877		6.9	%					225,928		7.4	%
Below investment grade		92,861		3.1	%					98,971		3.3	%
Total	$	2,978,381		100.0	%				$	3,047,973		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)

- 20 -

Platinum Underwriters Holdings, Ltd.

Available-for-Sale Security Detail

($ in thousands)

	March 31, 2011
			Unrealized			Credit				Weighted
	Fair Value		Gain (Loss)			Quality		Duration		Average Life

Available-for-sale securities
U.S. Government	$	390,179	$	(18,677	)	Aaa			6.7

U.S. Government agencies		100,487		487		Aaa			0.3

Corporate bonds:
Industrial		212,395		9,701			A3		3.9
Utilities		65,695		1,844			A3		5.2
Insurance		50,088		2,196			A3		3.8
Finance		7,412		65		Baa1			6.6
Subtotal		335,590		13,806			A3		4.2

Commercial mortgage-backed securities		203,345		10,114		Aa2			3.9		4.6

Residential mortgage-backed securities:
U.S. Government agency residential mortgage-backed securities		77,242		3,009		Aaa			1.7		3.5
Non-agency residential mortgage-backed securities		55,164		(23,229	)		B2		0.5		3.8
Alt-A residential mortgage-backed securities		6,663		(2,841	)	Caa1			-		4.7
Subtotal		139,069		(23,061	)		A3		1.2		3.6

Asset-backed securities:
Asset-backed securities		13,336		(264	)	Aaa			-		8.1
Sub-prime asset-backed securities		11,019		(2,759	)	Caa3			0.2		10.2
Subtotal		24,355		(3,023	)	Baa2			0.1		9.1

Municipal bonds:
State general obligation bonds		810,965		(1,168	)	Aa2			7.2
Essential service revenue bonds*		386,854		2,359		Aa3			7.7
State income tax and sales tax bonds		164,016		3,347		Aa1			7.8
Other municipal bonds		138,156		1,378		Aa2			6.4
Pre-refunded bonds		45,993		2,174		Aa2			2.8
Subtotal		1,545,984		8,090		Aa2			7.2

Non-U.S governments		61,119		1,157		Aa1			2.6

Total	$	2,800,128	$	(11,107	)	Aa2			5.8

* Essential service revenue bonds include bonds backed by revenue from education, transportation and utilities.

- 21 -

Platinum Underwriters Holdings, Ltd.

Corporate Bonds Detail

($ in thousands)

	March 31, 2011
					Unrealized			Credit
	Par Value		Fair Value		Gain (Loss)			Quality

Top 20 Holdings by Issuer
Philip Morris International Inc.	$	14,000	$	15,759	$	1,245			A2
MetLife, Inc.		14,922		15,203		222			A3
American Electric Power Company, Inc.		13,500		13,897		338		Baa2
Hewlett-Packard Company		10,000		11,029		628			A2
HCC Insurance Holdings, Inc.		10,000		10,575		502		Baa1
Anglo American plc		8,000		10,259		436		Baa1
AT&T Inc.		9,250		10,044		730			A2
Mattel, Inc.		10,000		9,732		(409	)	Baa2
Consolidated Edison, Inc.		9,400		9,719		304			A3
Diageo plc		7,750		8,341		510			A3
Wal-Mart Stores, Inc.		6,541		7,913		(197	)	Aa2
Snap-On Incorporated		7,000		7,522		486		Baa1
EOG Resources, Inc.		6,660		7,029		245			A3
CNA Financial Corporation		6,000		6,687		674		Baa3
Rio Tinto plc		5,000		6,565		322			A3
ArcelorMittal		5,000		6,330		(57	)	Baa3
Hess Corporation		5,000		6,245		176		Baa2
NextEra Energy, Inc.		5,750		5,998		239		Aa3
The Clorox Company		5,500		5,927		419		Baa1
CMS Energy Corporation	$	5,000	$	5,900	$	222			A3

- 22 -

Platinum Underwriters Holdings, Ltd.

Municipal Bonds Detail

($ in thousands)

	March 31, 2011
						Unrealized			Credit
	Par Value		Fair Value			Gain (Loss)			Quality*

Top 10 Exposures by Jurisdiction
Illinois	$	164,680	$	162,093		$	(3,768	)		A1
Pennsylvania		115,700		116,055			(736	)	Aa1
New York		110,070		112,733			2,276		Aa2
Connecticut		106,000		105,875			(2,208	)	Aa2
California		97,655		105,474			5,078			A1
Massachusetts		85,655		88,246			607		Aa1
District of Columbia		78,695		80,971			2,191		Aa2
New Jersey		75,250		75,045			(646	)	Aa3
Texas		64,565		62,616			(2,365	)	Aa1
Ohio	$	53,795	$	52,688		$	(1,288	)	Aa1


Top 10 Holdings by Issuer
State of Illinois	$	120,000	$	117,466		$	(3,418	)		A1
State of California		92,665		100,514			5,253			A1
State of Connecticut		89,000		89,140			(1,942	)	Aa2
State of Pennsylvania		76,700		77,524			96		Aa1
New York State Urban Development Corporation		47,000		47,617			617		Aaa
State of Mississippi		46,060		46,502			(676	)	Aa2
State of Ohio		37,550		36,617			(933	)	Aa1
State of Texas		39,900		36,451			(3,620	)	Aaa
State of Massachusetts		34,635		35,931			(688	)	Aa1
State of Michigan	$	36,500	$	35,655		$	(1,118	)	Aa2



	March 31, 2011
	Amount		% of Total

Credit quality of municipal bond portfolio*
Aaa	$	268,344		17.4	%
Aa		960,252		62.1	%
A		311,478		20.1	%
Baa		5,910		0.4	%
Total	$	1,545,984		100.0	%


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

- 23 -

Platinum Underwriters Holdings, Ltd.

Net Realized Gains (Losses) on Investments and Net Impairment Losses on Investments

($ in thousands)

	Three Months Ended
	March 31,			March 31,
	2011			2010

Net realized gains (losses) on investments by entity:
Subsidiary domiciled in Bermuda	$	(247	)	$	4,605
Subsidiaries domiciled in the United States		654			852
Total	$	407		$	5,457


Net realized gains (losses) on investments by type:
Sale of securities	$	3,941		$	4,711
Mark-to-market on trading securities		(3,534	)		746
Total	$	407		$	5,457


Net impairment losses on investments by entity:
Subsidiary domiciled in Bermuda	$	1,377		$	7,127
Subsidiaries domiciled in the United States		130			10,975
Total	$	1,507		$	18,102


Net impairment losses on investments by type of security:
Commercial mortgage-backed securities	$	-		$	7,731
Residential mortgage-backed securities		933			948
Asset-backed securities		574			9,423
Total	$	1,507		$	18,102

- 24 -

Platinum Underwriters Holdings, Ltd.

Analysis of Losses and Loss Adjustment Expenses

($ in thousands)

	Analysis of Losses and Loss Adjustment Expenses
	Three Months Ended March 31, 2011 (a)									Twelve Months Ended December 31, 2010 (b)
	Gross		Ceded		Net		Paid to Incurred %			Gross			Ceded			Net			Paid to Incurred %

Paid losses and loss adjustment expenses	$	151,434	$	1,313	$	150,121		47.0	%	$	604,260		$	10,047		$	594,213			127.1	%
Change in unpaid losses and loss adjustment expenses		202,566		33,092		169,474					(132,171	)		(5,378	)		(126,793	)
Losses and loss adjustment expenses incurred	$	354,000	$	34,405	$	319,595				$	472,089		$	4,669		$	467,420




	Analysis of Unpaid Losses and Loss Adjustment Expenses

	As of March 31, 2011									As of December 31, 2010
	Gross		Ceded		Net		%			Gross			Ceded			Net			%

Outstanding losses and loss adjustment expenses	$	724,615	$	6,382	$	718,233		30.1	%	$	671,846		$	8,149		$	663,697			30.1	%
Incurred but not reported		1,703,862		35,634		1,668,228		69.9	%		1,545,532			763			1,544,769			69.9	%
Unpaid losses and loss adjustment expenses	$	2,428,477	$	42,016	$	2,386,461		100.0	%	$	2,217,378		$	8,912		$	2,208,466			100.0	%


(a) Gross and ceded losses and loss adjustment expenses incurred includes effects of foreign currency exchange rate gains and losses of $8,533 and $12, respectively.

(b) Gross and ceded losses and loss adjustment expenses incurred includes effects of foreign currency exchange rate gains and losses of $213 and $38, respectively.

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Platinum Underwriters Holdings, Ltd.
Summary of Favorable (Unfavorable) Development of Losses and Related Premiums and Commissions
($ in thousands)

	Three Months Ended March 31, 2011												Three Months Ended March 31, 2010
	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	$	(1,948	)	$	19,555		$	1,475		$	19,082		$	18,645		$	33,339	$	(3,117	)	$	48,867
Net premium adjustments related to prior years' losses		751			(409	)		-			342			443			294		-			737
Net commission adjustments related to prior years' losses		(208	)		576			(854	)		(486	)		(855	)		2,918		(2,590	)		(527	)
Net favorable (unfavorable) development		(1,405	)		19,722			621			18,938			18,233			36,551		(5,707	)		49,077

Catastrophe Favorable (Unfavorable) Development
Net loss development related to prior years		14,182			-			-			14,182			-			3		-			3
Net premium adjustments related to prior years' losses		(19	)		-			-			(19	)		408			-		-			408
Net commission adjustments related to prior years' losses		(5	)		-			-			(5	)		-			-		-			-
Net favorable (unfavorable) development		14,158			-			-			14,158			408			3		-			411

Total net favorable (unfavorable) development	$	12,753		$	19,722		$	621		$	33,096		$	18,641		$	36,554	$	(5,707	)	$	49,488

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Platinum Underwriters Holdings, Ltd.

Estimated Exposures to Peak Zone Property Catastrophe Losses

As of April 1, 2011

($ 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	$	167	$	70	$	335	$	137	$	415	$	182
United States	Earthquake		14		4		202		48		263		91
Pan-European	Windstorm		143		58		288		98		347		130
Japan	Earthquake		11		6		131		38		274		61
Japan	Typhoon		5		5		52		52		70		70
Canada	Earthquake	$	-	$	-	$	73	$	73	$	215	$	215

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 and derivative recoveries.

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.

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