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

Attached files

file	filename
8-K - PLATINUM UNDERWRITERS HOLDINGS LTD	secondquarter2012_8k.htm
EX-99.1 - PLATINUM UNDERWRITERS HOLDINGS LTD	earningsreleaseq2_2012.htm

Exhibit 99.2

Financial Supplement

Financial Information

as of June 30, 2012

(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 (203) 252-5833.

Platinum Underwriters Holdings, Ltd.

Overview

June 30, 2012

Address:

Investor Information:

Platinum Underwriters Holdings, Ltd.

Kenneth A. Kurtzman

The Belvedere Building

Tel: (203) 252-5833

69 Pitts Bay Road

Email: kkurtzman@platinumre.com

Pembroke, HM 08 Bermuda

Website: www.platinumre.com

Definitions and presentation:

All financial information contained herein is unaudited except for the information for the fiscal year ended December 31, 2011. 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 (pages 14-18), operating income or loss (page 7), related underwriting ratios (pages 14-18), book value per common share and fully converted book value per common share (page 11), are referred to as non-GAAP measures. 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, the occurrence of severe natural or man-made catastrophic events; the effectiveness of our loss limitation methods and pricing models; the adequacy of our ceding companies’ ability to assess the risks they underwrite; the adequacy of our liability for unpaid losses and loss adjustment expenses; the effects of emerging claim and coverage issues on our business; our ability to maintain our A.M. Best and S&P ratings; our ability to raise capital on acceptable terms if necessary; our exposure to credit loss from counterparties in the normal course of business; our ability to provide reinsurance from Bermuda to insurers domiciled in the United States; the effect on our business of the cyclicality of the property and casualty reinsurance business; the effect on our business of the highly competitive nature of the property and casualty reinsurance industry; losses that we could face from terrorism, political unrest and war; our dependence on the business provided to us by reinsurance brokers and our exposure to credit risk associated with our brokers during the premium and loss settlement process; the availability of catastrophic loss protection on acceptable terms; foreign currency exchange rate fluctuation; our ability to maintain and enhance effective operating procedures and internal controls over financial reporting; our need to make many estimates and judgments in the preparation of our financial statements; the limitations placed on our financial and operational flexibility by the representations, warranties and covenants in our debt and credit facilities; our ability to retain key executives and attract and retain additional qualified personnel in the future; the performance of our investment portfolio; fluctuations in the mortgage-backed and asset-backed securities markets; the effects of changes in market interest rates on our investment portfolio; the concentration of our investment portfolio in any particular industry, asset class or geographic region; the effects that the imposition of U.S. corporate income tax would have on Platinum Underwriters Holdings, Ltd. and its non-U.S. subsidiaries; the risk that U.S. persons who hold our shares will be subject to adverse U.S. federal income tax consequences under certain circumstances; the risk that U.S. persons who dispose of our shares may be subject to U.S. federal income taxation at the rates applicable to dividends on all or a portion of their gains, if any; the risk that holders of 10% or more of our shares may be subject to U.S. income taxation under the “controlled foreign corporation” rules; the effect of changes in U.S. federal income tax law on an investment in our shares; the possibility that we may become subject to taxes in Bermuda; the effect on our business of potential changes in the regulatory system under which we operate; the impact of regulatory regimes and changes to accounting rules on our financial results, irrespective of business operations; the uncertain impact on our business of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010; the dependence of the cash flows of Platinum Underwriters Holdings, Ltd., a holding company, on dividends, interest and other permissible payments from its subsidiaries to meet its obligations; the risk that our shareholders may have greater difficulty in protecting their interests than would shareholders of a U.S. corporation; and limitations on the ownership, transfer and voting rights of our common shares. 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, 2011.

- 1 -

Platinum Underwriters Holdings, Ltd.

Table of Contents

		Section:	Page:

		Financial Highlights:
		a. Financial Highlights	3

		Balance Sheets:
		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 – by Quarter	11

		Statements of Cash Flows:
		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. Segment Reporting - Six 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 - Six Month Summary	21

		Investments:
		a. Investments	22
		b. Fixed Maturity Available-for-Sale Securities Detail	23
		c. Corporate Bonds Detail	24
		d. Municipal Bonds Detail	25
		e. Net Realized Gains (Losses) on Investments and Net Impairment Losses on Investments	26

		Loss Reserves:
		a. Analysis of Losses and Loss Adjustment Expenses	27
		b. Summary of Favorable (Unfavorable) Development of Losses and Related Premiums and Commissions	28

		Exposures:
		a. Estimated Exposure to Peak Zone Property Catastrophe Losses	29

- 2 -

Platinum Underwriters Holdings, Ltd.

Financial Highlights

June 30, 2012 and 2011

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

	Three Months Ended						Six Months Ended
	June 30,			June 30,			June 30,			June 30,
	2012			2011			2012			2011
Highlights
Net premiums written	$	141,459		$	125,887		$	285,120		$	320,672
Net premiums earned		145,075			172,436			283,287			355,317
Underwriting income (loss)		34,412			(33,403	)		50,709			(216,955	)
Net investment income		26,155			33,965			54,707			66,343
Net operating income (loss) (1)		44,240			(15,505	)		77,018			(170,316	)
Net realized gains (losses) on investments		24,978			(4,689	)		47,317			(4,282	)
Net impairment losses on investments		(1,113	)		(1,666	)		(2,183	)		(3,173	)
Net income (loss)	$	67,532		$	(20,401	)	$	120,819		$	(177,593	)

Total assets	$	4,424,937		$	4,682,397		$	4,424,937		$	4,682,397
Investments and cash		4,057,595			4,256,369			4,057,595			4,256,369
Total shareholders' equity		1,721,827			1,695,710			1,721,827			1,695,710
Unpaid losses and loss adjustment expenses	$	2,229,603		$	2,472,861		$	2,229,603		$	2,472,861

Per share data
Common shares outstanding		33,212			37,324			33,212			37,324
Weighted average common shares outstanding - basic		33,914			37,113			34,602			37,155
Adjusted weighted average common shares outstanding - diluted		34,104			37,399			34,805			37,692
Basic earnings (loss) per common share	$	1.98		$	(0.55	)	$	3.48		$	(4.75	)
Diluted earnings (loss) per common share (2)		1.97			(0.55	)		3.46			(4.75	)
Operating income (loss) per common share - diluted (1)		1.29			(0.42	)		2.22			(4.59	)
Dividends per common share		0.08			0.08			0.16			0.16
Basic book value per common share (3)	$	51.84		$	45.43		$	51.84		$	45.43

(1)	See computation of net operating income (loss) and per common share on page 7.

(2)	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.

(3)	See computation of basic book value per common share on page 11.

- 3 -

Platinum Underwriters Holdings, Ltd.

Condensed Consolidated Balance Sheets – by Quarter

($ in thousands, except per share data)

	June 30,		March 31,		December 31,		September 30,		June 30,
	2012		2012		2011		2011		2011
Assets
Investments:
Fixed maturity securities	$	2,423,834	$	2,743,760	$	2,788,700	$	2,657,325	$	2,711,289
Short-term investments		167,778		216,047		588,834		538,887		226,307
Cash and cash equivalents		1,465,983		1,167,848		792,510		1,127,305		1,318,773
Accrued investment income		24,541		29,337		29,440		32,682		31,724
Reinsurance premiums receivable		145,132		148,126		159,387		152,633		149,616
Reinsurance balances (prepaid and recoverable)		4,538		7,393		14,662		57,025		64,858
Funds held by ceding companies		111,408		95,357		94,546		91,886		90,507
Deferred acquisition costs		27,620		28,203		28,779		31,417		32,143
Other assets		54,103		52,349		54,753		58,835		57,180
Total assets	$	4,424,937	$	4,488,420	$	4,551,611	$	4,747,995	$	4,682,397

Liabilities
Unpaid losses and loss adjustment expenses	$	2,229,603	$	2,315,527	$	2,389,614	$	2,468,987	$	2,472,861
Unearned premiums		114,759		121,553		121,164		141,814		139,767
Debt obligations		250,000		250,000		250,000		250,000		250,000
Commissions payable		64,304		62,083		62,773		56,413		54,112
Other liabilities		44,444		32,362		37,201		103,869		69,947
Total liabilities	$	2,703,110	$	2,781,525	$	2,860,752	$	3,021,083	$	2,986,687

Shareholders' Equity
Common shares	$	332	$	348	$	355	$	373	$	373
Additional paid-in capital		227,482		285,503		313,730		373,790		372,882
Accumulated other comprehensive income		148,562		140,458		146,635		126,838		40,034
Retained earnings		1,345,451		1,280,586		1,230,139		1,225,911		1,282,421
Total shareholders' equity	$	1,721,827	$	1,706,895	$	1,690,859	$	1,726,912	$	1,695,710

Total liabilities and shareholders' equity	$	4,424,937	$	4,488,420	$	4,551,611	$	4,747,995	$	4,682,397

Book value per common share (1)	$	51.84	$	49.00	$	47.59	$	46.26	$	45.43

(1)	Book value per common share is a non-GAAP financial measure as defined by Regulation G. See computation of book value per common share on page 11.

- 4 -

Platinum Underwriters Holdings, Ltd.

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)

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

	Three Months Ended						Six Months Ended
	June 30,			June 30,			June 30,			June 30,
	2012			2011			2012			2011
Revenue
Net premiums earned	$	145,075		$	172,436		$	283,287		$	355,317
Net investment income		26,155			33,965			54,707			66,343
Net realized gains (losses) on investments		24,978			(4,689	)		47,317			(4,282	)
Net impairment losses on investments		(1,113	)		(1,666	)		(2,183	)		(3,173	)
Other income (expense)		(191	)		(60	)		(670	)		1,036
Total revenue		194,904			199,986			382,458			415,241

Expenses
Net losses and loss adjustment expenses		67,117			159,357			146,313			478,952
Net acquisition expenses		30,200			34,115			60,857			68,065
Net changes in fair value of derivatives		-			4,474			-			748
Operating expenses		19,696			17,105			36,679			34,256
Net foreign currency exchange losses (gains)		(310	)		614			222			803
Interest expense		4,774			4,767			9,546			9,533
Total expenses		121,477			220,432			253,617			592,357
Income (loss) before income taxes		73,427			(20,446	)		128,841			(177,116	)
Income tax expense (benefit)		5,895			(45	)		8,022			477
Net income (loss)	$	67,532		$	(20,401	)	$	120,819		$	(177,593	)

Basic
Weighted average common shares outstanding		33,914			37,113			34,602			37,155
Basic earnings (loss) per common share	$	1.98		$	(0.55	)	$	3.48		$	(4.75	)

Diluted
Adjusted weighted average common shares outstanding		34,104			37,399			34,805			37,692
Diluted earnings (loss) per common share (1)	$	1.97		$	(0.55	)	$	3.46		$	(4.75	)

Comprehensive income (loss)
Net income (loss)	$	67,532		$	(20,401	)	$	120,819		$	(177,593	)
Other comprehensive income, net of deferred taxes		8,104			52,518			1,927			64,522
Comprehensive income (loss)	$	75,636		$	32,117		$	122,746		$	(113,071	)

(1)	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.

- 5 -

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
	June 30,			March 31,			December 31,			September 30,			June 30,
	2012			2012			2011			2011			2011
Revenue
Net premiums earned	$	145,075		$	138,212		$	167,322		$	166,813		$	172,436
Net investment income		26,155			28,552			29,758			29,762			33,965
Net realized gains (losses) on investments		24,978			22,339			718			7,498			(4,689	)
Net impairment losses on investments		(1,113	)		(1,070	)		(14,746	)		(4,451	)		(1,666	)
Other income (expense)		(191	)		(479	)		(193	)		(198	)		(60	)
Total revenue		194,904			187,554			182,859			199,424			199,986

Expenses
Net losses and loss adjustment expenses		67,117			79,196			125,032			201,453			159,357
Net acquisition expenses		30,200			30,657			34,904			30,208			34,115
Net changes in fair value of derivatives		-			-			(965	)		4,546			4,474
Operating expenses		19,696			16,983			14,168			14,755			17,105
Net foreign currency exchange losses (gains)		(310	)		532			(294	)		(982	)		614
Interest expense		4,774			4,772			4,770			4,769			4,767
Total expenses		121,477			132,140			177,615			254,749			220,432
Income (loss) before income taxes		73,427			55,414			5,244			(55,325	)		(20,446	)
Income tax expense (benefit)		5,895			2,127			(1,820	)		(1,790	)		(45	)
Net income (loss)	$	67,532		$	53,287		$	7,064		$	(53,535	)	$	(20,401	)

Basic
Weighted average common shares outstanding		33,914			35,291			36,117			37,183			37,113
Basic earnings (loss) per common share	$	1.98		$	1.50		$	0.20		$	(1.43	)	$	(0.55	)

Diluted
Adjusted weighted average common shares outstanding		34,104			35,510			36,302			37,360			37,399
Diluted earnings (loss) per common share (1)	$	1.97		$	1.49		$	0.19		$	(1.43	)	$	(0.55	)

Comprehensive income
Net income (loss)	$	67,532		$	53,287		$	7,064		$	(53,535	)	$	(20,401	)
Other comprehensive income (loss), net of deferred taxes		8,104			(6,177	)		19,797			86,804			52,518
Comprehensive income	$	75,636		$	47,110		$	26,861		$	33,269		$	32,117

(1)	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.

- 6 -

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						Six Months Ended
	June 30,			June 30,			June 30,			June 30,
	2012			2011			2012			2011
Net income (loss) available to common shareholders	$	67,532		$	(20,401	)	$	120,819		$	(177,593	)
Net income (loss) allocated to participating common shareholders (1)		(278	)		137			485			(1,069	)
Net income (loss) allocated to common shareholders	$	67,254		$	(20,264	)	$	120,334		$	(176,524	)

Adjustments for:
Net realized (gains) losses on investments, net of tax	$	(23,784	)	$	2,527		$	(45,564	)	$	2,349
Net impairment losses on investments, net of tax		1,007			1,632			1,951			3,094
Net foreign currency exchange losses (gains), net of tax		(237	)		600			297			765
Net operating income (loss) (2)	$	44,240		$	(15,505	)	$	77,018		$	(170,316	)

Per diluted common share:
Net income (loss)	$	1.97		$	(0.55	)	$	3.46		$	(4.75	)
Adjustments for:
Net realized (gains) losses on investments		(0.70	)		0.07			(1.31	)		0.06
Net impairment losses on investments		0.03			0.04			0.06			0.08
Net foreign currency exchange losses (gains)		(0.01	)		0.02			0.01			0.02
Net operating income (loss) per diluted common share (3)	$	1.29		$	(0.42	)	$	2.22		$	(4.59	)

Adjusted weighted average common shares outstanding - diluted (4)		34,104			37,113			34,805			37,155

(1)

Represents earnings attributable to holders of unvested restricted shares issued under the Company's share incentive plans that are considered to be participating securities. The net income (loss) allocated to common shareholders for the three and six months ended June 30, 2011 has been revised to include the effect of earnings attributable to holders of unvested restricted shares.

(2)	Net operating income (loss) is a non-GAAP measure as defined by Regulation G and 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.

(3)	Net operating income (loss) per diluted common share is also a non-GAAP measure and is calculated by dividing net operating income (loss) by diluted weighted average shares outstanding for the period.

(4)

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. The adjusted weighted average common shares outstanding - diluted for the three and six months ended June 30, 2011 was 37,399 and 37,692.

- 7 -

Platinum Underwriters Holdings, Ltd.

Key Ratios, Share Data, Ratings

	As of and for the Three Months Ended
	June 30,		March 31,		December 31,		September 30,		June 30,
	2012		2012		2011		2011		2011
Key Ratios
Combined ratio (%)		76.3%		88.2%		102.2%		145.6%		119.4%
Investable assets to shareholders' equity ratio	2.36:1		2.42:1		2.47:1		2.50:1		2.51:1
Debt to total capital (%)		12.7%		12.8%		12.9%		12.6%		12.8%
Net premiums written (annualized) to shareholders' equity		0.33		0.34		0.36		0.41		0.30

Share Data
Book value per common share (1)	$	51.84	$	49.00	$	47.59	$	46.26	$	45.43
Common shares outstanding (000's)		33,212		34,838		35,526		37,330		37,324

Market Price Per Common Share
High	$	38.43	$	37.64	$	35.36	$	35.78	$	38.94
Low		34.97		32.94		27.53		28.05		32.02
Close	$	38.10	$	36.50	$	34.11	$	30.75	$	33.24

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		124		127		125		129		132

(1)	See computation of book value per common share on page 11.

- 8 -

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						Six Months Ended
	June 30,			June 30,			June 30,			June 30,
	2012			2011			2012			2011
Earnings (Loss)
Basic and Diluted
Net income (loss) attributable to common shareholders	$	67,532		$	(20,401	)	$	120,819		$	(177,593	)
Net income (loss) allocated to participating common shareholders (1)		(278	)		137			(485	)		1,069
Net income (loss) allocated to common shareholders	$	67,254		$	(20,264	)	$	120,334		$	(176,524	)

Common Shares
Basic
Weighted average common shares outstanding		33,914			37,113			34,602			37,155
Diluted
Weighted average common shares outstanding		33,914			37,113			34,602			37,155
Effect of dilutive securities:
Common share options		142			127			139			268
Restricted share units		48			159			64			269
Adjusted weighted average common shares outstanding		34,104			37,399			34,805			37,692

Earnings (Loss) Per Common Share
Basic earnings (loss) per common share	$	1.98		$	(0.55	)	$	3.48		$	(4.75	)
Diluted earnings (loss) per common share (2)	$	1.97		$	(0.55	)	$	3.46		$	(4.75	)

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

(2)	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.

- 9 -

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
	June 30,			March 31,			December 31,			September 30,			June 30,
	2012			2012			2011			2011			2011
Earnings (Loss)
Basic and Diluted
Net income (loss) attributable to common shareholders	$	67,532		$	53,287		$	7,064		$	(53,535	)	$	(20,401	)
Net income (loss) allocated to participating common shareholders (1)		(278	)		(208	)		(17	)		251			137
Net income (loss) allocated to common shareholders	$	67,254		$	53,079		$	7,047		$	(53,284	)	$	(20,264	)

Common Shares
Basic
Weighted average common shares outstanding		33,914			35,291			36,117			37,183			37,113
Diluted
Weighted average common shares outstanding		33,914			35,291			36,117			37,183			37,113
Effect of dilutive securities:
Common share options		142			135			59			52			127
Restricted share units		48			84			126			125			159
Adjusted weighted average common shares outstanding		34,104			35,510			36,302			37,360			37,399

Earnings (Loss) Per Common Share
Basic earnings (loss) per common share	$	1.98		$	1.50		$	0.20		$	(1.43	)	$	(0.55	)
Diluted earnings (loss) per common share (2)	$	1.97		$	1.49		$	0.19		$	(1.43	)	$	(0.55	)

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

(2)	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.

- 10 -

Platinum Underwriters Holdings, Ltd.

Book Value Per Common Share – by Quarter

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

	June 30,		March 31,		December 31,		September 30,		June 30,
	2012		2012		2011		2011		2011
Price per share at period end	$	38.10	$	36.50	$	34.11	$	30.75	$	33.24

Shareholders' equity	$	1,721,827	$	1,706,895	$	1,690,859	$	1,726,912	$	1,695,710
Add: Assumed exercise of share options		31,209		32,356		18,925		7,418		10,543
Shareholders' equity - diluted	$	1,753,036	$	1,739,251	$	1,709,784	$	1,734,330	$	1,706,253

Basic common shares outstanding (1)		33,212		34,838		35,526		37,330		37,324
Add: Management and directors' options (2)		968		1,014		624		276		379
Add: Directors' and officers' restricted share units		406		405		321		363		413
Diluted common shares outstanding		34,586		36,257		36,471		37,969		38,116

Book value per common share (3)
Basic book value per common share	$	51.84	$	49.00	$	47.59	$	46.26	$	45.43
Fully converted book value per common share	$	50.69	$	47.97	$	46.88	$	45.68	$	44.76

(1)	As of June 30, 2012, there were 33,212 common shares issued and outstanding. Included in this number were 146 restricted shares issued but unvested.

(2)	As of June 30, 2012, these were options with a price below the closing share price of $38.10.

(3)	Book value per common share and fully converted book value per common share are non-GAAP financial measures as defined by Regulation G.

- 11 -

Platinum Underwriters Holdings, Ltd.

Condensed Consolidated Statements of Cash Flows

($ in thousands)

	Three Months Ended						Six Months Ended
	June 30, 2012			June 30, 2011			June 30, 2012			June 30, 2011
Net cash provided by (used in) operating activities	$	(26,496	)	$	38,516		$	(59,185	)	$	33,288

Net cash provided by (used in) investing activities		388,556			205,333			832,278			368,492

Net cash provided by (used in) financing activities		(62,533	)		(2,562	)		(94,428	)		(86,608	)

Effect of foreign currency exchange rate changes on cash		(1,392	)		12,755			(5,192	)		15,724

Net increase (decrease) in cash and cash equivalents	$	298,135		$	254,042		$	673,473		$	330,896

- 12 -

Platinum Underwriters Holdings, Ltd.

Condensed Consolidated Statements of Cash Flows – by Quarter

($ in thousands)

	Three Months Ended
	June 30, 2012			March 31, 2012			December 31, 2011			September 30, 2011			June 30, 2011
Net cash provided by (used in) operating activities	$	(26,496	)	$	(32,689	)	$	(71,852	)	$	4,858		$	38,516

Net cash provided by (used in) investing activities		388,556			443,722			(207,148	)		(185,555	)		205,333

Net cash provided by (used in) financing activities		(62,533	)		(31,895	)		(63,601	)		(2,884	)		(2,562	)

Effect of foreign currency exchange rate changes on cash		(1,392	)		(3,800	)		7,806			(7,887	)		12,755

Net increase (decrease) in cash and cash equivalents	$	298,135		$	375,338		$	(334,795	)	$	(191,468	)	$	254,042

- 13 -

Platinum Underwriters Holdings, Ltd.

Segment Reporting – Three Month Summary

($ in thousands)

	Three Months Ended June 30, 2012												Three Months Ended June 30, 2011
	Property and Marine			Casualty			Finite Risk			Total			Property and Marine			Casualty			Finite Risk			Total
Net premiums written	$	61,695		$	72,678		$	7,086		$	141,459		$	54,411		$	69,234		$	2,242		$	125,887

Net premiums earned		62,838			75,746			6,491			145,075			91,852			77,104			3,480			172,436
Net losses and loss adjustment expenses		17,653			45,851			3,613			67,117			116,543			43,868			(1,054	)		159,357
Net acquisition expenses		8,721			18,487			2,992			30,200			12,009			18,144			3,962			34,115
Other underwriting expenses		7,454			5,625			267			13,346			7,274			4,829			264			12,367
Segment underwriting income (loss)*	$	29,010		$	5,783		$	(381	)		34,412		$	(43,974	)	$	10,263		$	308			(33,403	)

Net investment income											26,155												33,965
Net realized gains (losses) on investments											24,978												(4,689	)
Net impairment losses on investments											(1,113	)											(1,666	)
Other income (expense)											(191	)											(60	)
Net changes in fair value of derivatives											-												(4,474	)
Corporate expenses not allocated to segments											(6,350	)											(4,738	)
Net foreign currency exchange (losses) gains											310												(614	)
Interest expense											(4,774	)											(4,767	)
Income (loss) before income taxes										$	73,427											$	(20,446	)

Underwriting ratios:*
Net loss and loss adjustment expense		28.1	%		60.5	%		55.7	%		46.3	%		126.9	%		56.9	%		(30.3	%)		92.4	%
Net acquisition expense		13.9	%		24.4	%		46.1	%		20.8	%		13.1	%		23.5	%		113.9	%		19.8	%
Other underwriting expense		11.9	%		7.4	%		4.1	%		9.2	%		7.9	%		6.3	%		7.6	%		7.2	%
Combined		53.9	%		92.3	%		105.9	%		76.3	%		147.9	%		86.7	%		91.2	%		119.4	%

Statutory underwriting ratios:*
Net loss and loss adjustment expense		28.1	%		60.5	%		55.7	%		46.3	%		126.9	%		56.9	%		(30.3	%)		92.4	%
Net acquisition expense		13.1	%		25.4	%		43.7	%		21.0	%		17.4	%		24.1	%		164.7	%		23.7	%
Other underwriting expense		12.1	%		7.7	%		3.8	%		9.4	%		13.4	%		7.0	%		11.8	%		9.8	%
Combined		53.3	%		93.6	%		103.2	%		76.7	%		157.7	%		88.0	%		146.2	%		125.9	%

* Segment underwriting income or loss and underwriting ratios are non-GAAP financial measures as defined by Regulation G.

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.

Segment Reporting – Six Month Summary

($ in thousands)

	Six Months Ended June 30, 2012												Six Months Ended June 30, 2011
	Property and Marine			Casualty			Finite Risk			Total			Property and Marine			Casualty			Finite Risk			Total
Net premiums written	$	129,848		$	147,078		$	8,194		$	285,120		$	166,213		$	149,753		$	4,706		$	320,672

Net premiums earned		124,166			151,512			7,609			283,287			189,757			157,928			7,632			355,317
Net losses and loss adjustment expenses		58,590			86,887			836			146,313			394,873			83,487			592			478,952
Net acquisition expenses		17,956			35,862			7,039			60,857			25,635			36,707			5,723			68,065
Other underwriting expenses		14,289			10,661			458			25,408			14,595			10,161			499			25,255
Segment underwriting income (loss)*	$	33,331		$	18,102		$	(724	)		50,709		$	(245,346	)	$	27,573		$	818			(216,955	)

Net investment income											54,707												66,343
Net realized gains (losses) on investments											47,317												(4,282	)
Net impairment losses on investments											(2,183	)											(3,173	)
Other income (expense)											(670	)											1,036
Net changes in fair value of derivatives											-												(748	)
Corporate expenses not allocated to segments											(11,271	)											(9,001	)
Net foreign currency exchange (losses) gains											(222	)											(803	)
Interest expense											(9,546	)											(9,533	)
Income (loss) before income taxes										$	128,841											$	(177,116	)

Underwriting ratios:*
Net loss and loss adjustment expense		47.2	%		57.3	%		11.0	%		51.6	%		208.1	%		52.9	%		7.8	%		134.8	%
Net acquisition expense		14.5	%		23.7	%		92.5	%		21.5	%		13.5	%		23.2	%		75.0	%		19.2	%
Other underwriting expense		11.5	%		7.0	%		6.0	%		9.0	%		7.7	%		6.4	%		6.5	%		7.1	%
Combined		73.2	%		88.0	%		109.5	%		82.1	%		229.3	%		82.5	%		89.3	%		161.1	%

Statutory underwriting ratios:*
Net loss and loss adjustment expense		47.2	%		57.3	%		11.0	%		51.6	%		208.1	%		52.9	%		7.8	%		134.8	%
Net acquisition expense		13.3	%		24.0	%		86.7	%		20.9	%		14.7	%		22.7	%		108.1	%		19.8	%
Other underwriting expense		11.0	%		7.2	%		5.6	%		8.9	%		8.8	%		6.8	%		10.6	%		7.9	%
Combined		71.5	%		88.5	%		103.3	%		81.4	%		231.6	%		82.4	%		126.5	%		162.5	%

* Segment underwriting income or loss and underwriting ratios are non-GAAP financial measures as defined by Regulation G.

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.

Property and Marine Segment – by Quarter

($ in thousands)

	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2012			2012			2011			2011			2011
Net premiums written	$	61,695		$	68,153		$	76,836		$	101,633		$	54,411

Net premiums earned		62,838			61,328			81,980			85,239			91,852
Net losses and loss adjustment expenses		17,653			40,937			76,194			156,995			116,543
Net acquisition expenses		8,721			9,235			11,645			12,068			12,009
Other underwriting expenses		7,454			6,835			6,341			6,686			7,274
Segment underwriting income (loss)*	$	29,010		$	4,321		$	(12,200	)	$	(90,510	)	$	(43,974	)

Underwriting ratios:*
Net loss and loss adjustment expense		28.1	%		66.8	%		92.9	%		184.2	%		126.9	%
Net acquisition expense		13.9	%		15.1	%		14.2	%		14.2	%		13.1	%
Other underwriting expense		11.9	%		11.1	%		7.7	%		7.8	%		7.9	%
Combined		53.9	%		93.0	%		114.8	%		206.2	%		147.9	%

Statutory underwriting ratios:*
Net loss and loss adjustment expense		28.1	%		66.8	%		92.9	%		184.2	%		126.9	%
Net acquisition expense		13.1	%		13.5	%		14.0	%		12.6	%		17.4	%
Other underwriting expense		12.1	%		10.0	%		8.3	%		6.6	%		13.4	%
Combined		53.3	%		90.3	%		115.2	%		203.4	%		157.7	%

* Segment underwriting income or loss and underwriting ratios are non-GAAP financial measures as defined by Regulation G.

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.

Casualty Segment – by Quarter

($ in thousands)

	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2012			2012			2011			2011			2011
Net premiums written	$	72,678		$	74,400		$	74,547		$	72,689		$	69,234

Net premiums earned		75,746			75,766			82,785			78,021			77,104
Net losses and loss adjustment expenses		45,851			41,036			52,459			42,704			43,868
Net acquisition expenses		18,487			17,375			19,251			16,780			18,144
Other underwriting expenses		5,625			5,036			4,541			4,300			4,829
Segment underwriting income*	$	5,783		$	12,319		$	6,534		$	14,237		$	10,263

Underwriting ratios:*
Net loss and loss adjustment expense		60.5	%		54.2	%		63.4	%		54.7	%		56.9	%
Net acquisition expense		24.4	%		22.9	%		23.3	%		21.5	%		23.5	%
Other underwriting expense		7.4	%		6.6	%		5.5	%		5.5	%		6.3	%
Combined		92.3	%		83.7	%		92.2	%		81.7	%		86.7	%

Statutory underwriting ratios:*
Net loss and loss adjustment expense		60.5	%		54.2	%		63.4	%		54.7	%		56.9	%
Net acquisition expense		25.4	%		22.7	%		23.5	%		21.5	%		24.1	%
Other underwriting expense		7.7	%		6.8	%		6.1	%		5.9	%		7.0	%
Combined		93.6	%		83.7	%		93.0	%		82.1	%		88.0	%

* Segment underwriting income or loss and underwriting ratios are non-GAAP financial measures as defined by Regulation G.

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.

Finite Risk Segment – by Quarter

($ in thousands)

	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2012			2012			2011			2011			2011
Net premiums written	$	7,086		$	1,108		$	2,335		$	2,802		$	2,242

Net premiums earned		6,491			1,118			2,557			3,553			3,480
Net losses and loss adjustment expenses		3,613			(2,777	)		(3,621	)		1,754			(1,054	)
Net acquisition expenses		2,992			4,047			4,008			1,360			3,962
Other underwriting expenses		267			191			223			218			264
Segment underwriting income (loss)*	$	(381	)	$	(343	)	$	1,947		$	221		$	308

Underwriting ratios:*
Net loss and loss adjustment expense		55.7	%		(248.4	%)		(141.6	%)		49.4	%		(30.3	%)
Net acquisition expense		46.1	%		362.0	%		156.7	%		38.3	%		113.9	%
Other underwriting expense		4.1	%		17.1	%		8.7	%		6.1	%		7.6	%
Combined		105.9	%		130.7	%		23.8	%		93.8	%		91.2	%

Statutory underwriting ratios:*
Net loss and loss adjustment expense		55.7	%		(248.4	%)		(141.6	%)		49.4	%		(30.3	%)
Net acquisition expense		43.7	%		361.7	%		169.9	%		42.5	%		164.7	%
Other underwriting expense		3.8	%		17.2	%		9.6	%		7.8	%		11.8	%
Combined		103.2	%		130.5	%		37.9	%		99.7	%		146.2	%

* Segment underwriting income or loss and underwriting ratios are non-GAAP financial measures as defined by Regulation G.

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.

- 18 -

Platinum Underwriters Holdings, Ltd.

Net Premiums Written – Supplemental Information

($ in thousands)

	Three Months Ended				Six Months Ended
	June 30,		June 30,		June 30,		June 30,
	2012		2011		2012		2011
Property and Marine
Excess-of-Loss	$	50,301	$	39,954	$	107,035	$	133,959
Proportional		11,394		14,457		22,813		32,254
Subtotal Property and Marine		61,695		54,411		129,848		166,213
Casualty
Excess-of-Loss		58,561		56,049		120,491		119,748
Proportional		14,117		13,185		26,587		30,005
Subtotal Casualty		72,678		69,234		147,078		149,753
Finite Risk
Excess-of-Loss		-		-		-		-
Proportional		7,086		2,242		8,194		4,706
Subtotal Finite Risk		7,086		2,242		8,194		4,706
Combined Segments
Excess-of-Loss		108,862		96,003		227,526		253,707
Proportional		32,597		29,884		57,594		66,965
Total	$	141,459	$	125,887	$	285,120	$	320,672


	Three Months Ended				Six Months Ended
	June 30,		June 30,		June 30,		June 30,
		2012		2011		2012		2011
Property and Marine
United States	$	37,992	$	37,595	$	77,643	$	88,672
International		23,703		16,816		52,205		77,541
Subtotal Property and Marine		61,695		54,411		129,848		166,213
Casualty
United States		65,074		60,174		132,412		131,768
International		7,604		9,060		14,666		17,985
Subtotal Casualty		72,678		69,234		147,078		149,753
Finite Risk
United States		7,086		2,242		8,194		4,706
International		-		-		-		-
Subtotal Finite Risk		7,086		2,242		8,194		4,706
Combined Segments
United States		110,152		100,011		218,249		225,146
International		31,307		25,876		66,871		95,526
Total	$	141,459	$	125,887	$	285,120	$	320,672

- 19 -

Platinum Underwriters Holdings, Ltd.

Premiums by Line of Business – Three Month Summary

($ in thousands)

	Three Months Ended June 30, 2012						Three Months Ended June 30, 2011
	Gross Premiums Written		Net Premiums Written		Net Premiums Earned		Gross Premiums Written		Net Premiums Written		Net Premiums Earned
Property and Marine
North American Property Proportional	$	1,301	$	1,301	$	1,361	$	554	$	554	$	1,961
North American Property Catastrophe		20,893		21,158		19,633		23,840		14,928		26,666
North American Property Risk		8,315		8,315		9,590		9,040		9,071		11,152
Other Property		7,889		7,889		7,943		13,894		13,894		13,985
Marine / Aviation Proportional		1,281		1,281		1,054		746		746		1,020
Marine / Aviation Excess		2,496		2,496		2,487		1,138		1,138		1,697
International Property Proportional		4,610		4,610		4,551		4,055		4,055		3,946
International Property Catastrophe		12,181		12,180		14,346		21,024		7,674		29,080
International Property Risk		2,465		2,465		1,873		2,351		2,351		2,345
Subtotal		61,431		61,695		62,838		76,642		54,411		91,852

Casualty
Clash		2,084		2,084		2,082		2,599		2,599		2,577
1st Dollar GL		2,152		2,152		3,018		4,473		4,473		4,668
1st Dollar Other		2,958		2,958		3,145		1,763		1,763		1,940
Casualty Excess		47,577		47,577		47,345		42,041		42,041		45,118
Accident & Health		8,816		8,791		10,024		7,608		7,608		9,572
International Casualty		4,165		4,165		4,641		4,692		4,692		6,259
International Motor		390		390		501		854		854		976
Financial Lines		4,561		4,561		4,990		5,204		5,204		5,994
Subtotal		72,703		72,678		75,746		69,234		69,234		77,104

Finite Risk
Finite Casualty		7,086		7,086		6,491		2,242		2,242		3,480
Subtotal		7,086		7,086		6,491		2,242		2,242		3,480

Total	$	141,220	$	141,459	$	145,075	$	148,118	$	125,887	$	172,436

- 20 -

Platinum Underwriters Holdings, Ltd.

Premiums by Line of Business – Six Month Summary

($ in thousands)

	Six Months Ended June 30, 2012						Six Months Ended June 30, 2011
	Gross Premiums Written		Net Premiums Written		Net Premiums Earned		Gross Premiums Written		Net Premiums Written		Net Premiums Earned
Property and Marine
North American Property Proportional	$	1,401	$	1,401	$	2,557	$	2,318	$	2,318	$	3,665
North American Property Catastrophe		43,755		44,020		41,128		57,244		42,145		50,238
North American Property Risk		16,974		16,974		19,140		18,913		19,182		21,852
Other Property		16,808		16,808		16,687		26,884		26,884		26,741
Marine / Aviation Proportional		3,185		3,185		2,590		2,589		2,589		2,830
Marine / Aviation Excess		3,343		3,343		4,183		3,209		3,209		4,456
International Property Proportional		8,406		8,406		8,541		8,338		8,338		7,869
International Property Catastrophe		31,717		31,325		25,159		76,025		56,612		67,184
International Property Risk		4,386		4,386		4,181		4,936		4,936		4,922
Subtotal		129,975		129,848		124,166		200,456		166,213		189,757

Casualty
Clash		4,530		4,530		4,487		5,359		5,359		5,172
1st Dollar GL		4,090		4,090		6,138		11,473		11,473		9,864
1st Dollar Other		5,518		5,518		6,205		3,891		3,891		4,243
Casualty Excess		94,145		94,145		95,690		86,161		86,161		91,828
Accident & Health		21,171		21,146		19,561		21,517		21,517		17,791
International Casualty		8,505		8,505		9,222		8,605		8,605		11,600
International Motor		896		896		892		2,013		2,013		2,009
Financial Lines		8,248		8,248		9,317		10,734		10,734		15,421
Subtotal		147,103		147,078		151,512		149,753		149,753		157,928

Finite Risk
Finite Casualty		8,194		8,194		7,609		4,706		4,706		7,632
Subtotal		8,194		8,194		7,609		4,706		4,706		7,632

Total	$	285,272	$	285,120	$	283,287	$	354,915	$	320,672	$	355,317

- 21 -

Platinum Underwriters Holdings, Ltd.

Investments

($ in thousands)

	June 30, 2012								December 31, 2011
	Fair Value		Book Yield			Market Yield			Fair Value		Book Yield			Market Yield
Fixed maturity available-for-sale securities:
U.S. Government	$	5,011		2.7	%		0.5	%	$	5,083		2.7	%		0.6	%
U.S. Government agencies		10,164		1.4	%		1.0	%		100,259		0.9	%		0.4	%
Municipal bonds		1,352,837		4.6	%		2.7	%		1,660,760		4.7	%		3.2	%
Non-U.S. governments		94,295		2.0	%		1.4	%		71,266		2.6	%		2.1	%
Corporate bonds		350,402		4.6	%		3.0	%		349,548		4.8	%		2.8	%
Commercial mortgage-backed securities		201,356		5.4	%		3.1	%		204,609		5.6	%		3.8	%
Residential mortgage-backed securities		276,282		2.3	%		2.0	%		251,627		2.9	%		2.9	%
Asset-backed securities		19,640		0.8	%		4.3	%		20,422		1.7	%		8.5	%
Total fixed maturity available-for-sale securities	$	2,309,987		4.2	%		2.6	%	$	2,663,574		4.3	%		3.1	%

Fixed maturity trading securities:
Non-U.S. governments	$	113,847		3.5	%		0.7	%	$	125,126		3.6	%		0.9	%
Total fixed maturity trading securities	$	113,847		3.5	%		0.7	%	$	125,126		3.6	%		0.9	%

Short-term investments	$	167,778		1.5	%		1.3	%	$	588,834		1.0	%		0.9	%

	June 30, 2012								December 31, 2011
Credit quality of investments*	Fair Value		% of Total						Fair Value		% of Total
Aaa	$	974,327		37.6	%				$	1,504,876		44.6	%
Aa		873,466		33.7	%					1,037,257		30.7	%
A		428,432		16.5	%					561,045		16.6	%
Baa		243,530		9.4	%					202,372		6.0	%
Below investment grade		71,857		2.8	%					71,984		2.1	%
Total	$	2,591,612		100.0	%				$	3,377,534		100.0	%

Portfolio information**
Credit Quality	Aa2								Aa2
Book Yield		2.6%								3.0%
Duration	3.1 yrs								3.6 yrs

Rated using external rating agencies (primarily Moody’s) including credit enhancements from insurance entities. As of June 30, 2012, there were approximately $10.1 million of municipal bonds whose ratings of “Aa” included the benefit of guarantees from third-party insurers that would otherwise be rated as “A” without the existence of such guarantees.

**	Our portfolio includes investments, cash and cash equivalents, accrued investment income and net balances due to and from brokers.

(Aaa-Best Quality; Aa-High Quality; A-Upper to Medium Quality; Baa-Investment Grade)

- 22 -

Platinum Underwriters Holdings, Ltd.

Fixed Maturity Available-for-Sale Securities Detail

($ in thousands)

	June 30, 2012
	Fair Value		Net Unrealized Gain (Loss)			Credit Quality		Duration		Weighted Average Life
Fixed maturity available-for-sale securities:
U.S. Government	$	5,011	$	344		Aaa			3.1
U.S. Government agencies		10,164		161		Aaa			4.5
Municipal bonds:
State general obligation bonds		756,621		83,273		Aa2			7.1
Essential service bonds*		315,760		31,738		Aa3			6.9
State income tax and sales tax bonds		138,844		20,758		Aa1			8.0
Other municipal bonds		108,470		10,075		Aa2			4.7
Pre-refunded bonds		33,142		2,167		Aa3			2.4
Subtotal		1,352,837		148,011		Aa2			6.8
Non-U.S. governments		94,295		1,347		Aa1			1.8
Corporate bonds:
Industrial		209,989		10,142		Baa1			5.3
Utilities		84,267		5,491			A3		5.5
Insurance		48,555		3,212		Baa1			4.2
Finance		7,591		694		Baa1			6.5
Subtotal		350,402		19,539		Baa1			5.2
Commercial mortgage-backed securities		201,356		12,567		Aa2			3.1		3.4
Residential mortgage-backed securities:
U.S. Government agency residential mortgage-backed securities		229,079		1,957		Aaa			0.7		4.3
Non-agency residential mortgage-backed securities		42,399		(8,648	)	Caa2			-		5.3
Alt-A residential mortgage-backed securities		4,804		(274	)	Caa2			-		6.1
Subtotal		276,282		(6,965	)	Aa3			0.6		4.5
Asset-backed securities:
Asset-backed securities		13,237		(363	)	Aaa			-		7.3
Sub-prime asset-backed securities		6,403		(2,320	)		C		-		8.8
Subtotal		19,640		(2,683	)		A3		-		7.8
Total	$	2,309,987	$	172,321		Aa3			5.2

* Essential service bonds include bonds issued for education, transportation and utilities.

- 23 -

Platinum Underwriters Holdings, Ltd.

Corporate Bonds Detail

($ in thousands)

	June 30, 2012
	Par Value		Fair Value		Net Unrealized Gain (Loss)			Credit Quality
Top 20 Holdings by Issuer
American Electric Power Company, Inc.	$	13,500	$	14,834	$	1,292		Baa1
HCC Insurance Holdings, Inc.		10,000		11,244		1,179		Baa1
Mattel, Inc.		10,000		10,596		471		Baa1
Hewlett-Packard Company		10,000		10,487		295			A3
Consolidated Edison, Inc.		9,400		10,246		830			A3
MetLife, Inc.		10,000		10,093		93			A3
Anglo American plc		8,000		10,027		570		Baa1
Wal-Mart Stores, Inc.		5,039		7,465		962		Aa2
Snap-On Incorporated		7,000		7,449		427		Baa1
Encana Corporation		7,000		7,085		47		Baa2
CNA Financial Corporation		6,000		7,011		1,000		Baa2
Newmont Mining Corporation		7,000		6,908		(40	)	Baa1
Teck Resources Limited		6,750		6,850		133		Baa2
Rio Tinto plc		5,000		6,829		746			A3
Southern Company		6,625		6,723		109			A3
Hess Corporation		5,000		6,507		582		Baa2
CMS Energy Corporation		5,000		6,429		835			A3
NextEra Energy, Inc.		5,750		6,260		511		Aa3
Entergy Corporation		6,000		6,257		256		Baa2
ArcelorMittal	$	5,000	$	5,887	$	(327	)	Baa3

- 24 -

Platinum Underwriters Holdings, Ltd.

Municipal Bonds Detail

($ in thousands)

	June 30, 2012
	Par Value		Fair Value			Net Unrealized Gain (Loss)		Credit Quality
Top 10 Exposures by Jurisdiction
Illinois	$	124,500	$	135,264		$	9,838		A2
Pennsylvania		114,200		129,666			14,651	Aa1
Connecticut		99,000		116,152			15,384	Aa3
California		82,655		96,239			11,807		A1
Massachusetts		67,230		79,654			10,901	Aa1
District of Columbia		62,495		71,050			8,398	Aa2
New Jersey		62,550		68,651			5,742		A1
Texas		60,330		68,310			7,720	Aaa
New York		55,000		63,812			8,512	Aa1
Hawaii	$	35,000	$	42,836		$	7,715	Aa2

	June 30, 2012
	Par Value		Fair Value			Net Unrealized Gain (Loss)		Credit Quality
Top 10 Holdings by Issuer
State of Illinois	$	100,000	$	107,344		$	6,632		A2
State of Connecticut		82,000		96,518			12,750	Aa3
State of California		77,665		90,961			11,602		A1
State of Pennsylvania		76,700		87,465			10,210	Aa1
State of Texas		39,900		45,756			5,691	Aaa
State of Massachusetts		39,230		44,388			3,635	Aa1
State of Hawaii		35,000		42,836			7,715	Aa2
New York State Urban Development Corporation		32,000		37,261			5,261	Aaa
New Jersey Transportation Trust Fund Authority		25,000		29,258			4,258		A1
District of Columbia	$	24,670	$	29,196		$	4,526	Aa1

	June 30, 2012
	Fair Value		% of total
Credit quality of municipal bond portfolio*
Aaa	$	229,248		16.9	%
Aa		816,679		60.4	%
A		296,445		21.9	%
Baa		7,451		0.6	%
Below investment grade		3,014		0.2	%
Total	$	1,352,837		100.0	%

**	Our portfolio includes investments, cash and cash equivalents, accrued investment income and net balances due to and from brokers.

(Aaa-Best Quality; Aa-High Quality; A-Upper to Medium Quality; Baa-Investment Grade)

- 25 -

Platinum Underwriters Holdings, Ltd.

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

($ in thousands)

	Three Months Ended						Six Months Ended
	June 30,			June 30,			June 30,			June 30,
	2012			2011			2012			2011
Net realized gains (losses) on investments by entity:
Subsidiary domiciled in Bermuda	$	21,567		$	1,488		$	42,307		$	1,241
Subsidiaries domiciled in the United States		3,411			(6,177	)		5,010			(5,523	)
Total	$	24,978		$	(4,689	)	$	47,317		$	(4,282	)

Net realized gains (losses) on investments by type:
Sale of securities	$	25,263		$	(6,417	)	$	47,940		$	(2,476	)
Mark-to-market on trading securities		(285	)		1,728			(623	)		(1,806	)
Total	$	24,978		$	(4,689	)	$	47,317		$	(4,282	)

Net impairment losses on investments by entity:
Subsidiary domiciled in Bermuda	$	809		$	1,569		$	1,521		$	2,946
Subsidiaries domiciled in the United States		304			97			662			227
Total	$	1,113		$	1,666		$	2,183		$	3,173

Net impairment losses on investments by type of security:
Commercial mortgage-backed securities	$	-		$	-		$	30		$	-
Residential mortgage-backed securities		1,106			1,454			2,146			2,387
Asset-backed securities		7			212			7			786
Total	$	1,113		$	1,666		$	2,183		$	3,173

- 26 -

Platinum Underwriters Holdings, Ltd.

Analysis of Losses and Loss Adjustment Expenses

($ in thousands)

	Analysis of Losses and Loss Adjustment Expenses
	Six Months Ended June 30, 2012 (1)												Twelve Months Ended December 31, 2011 (2)
	Gross			Ceded			Net			Paid to Incurred %			Gross		Ceded			Net		Paid to Incurred %
Paid losses and loss adjustment expenses	$	330,169		$	23,076		$	307,093			209.9	%	$	672,148	$	38,859		$	633,289		78.6	%
Change in unpaid losses and loss adjustment expenses		(196,087	)		(35,307	)		(160,780	)					167,175		(4,973	)		172,148
Losses and loss adjustment expenses incurred	$	134,082		$	(12,231	)	$	146,313					$	839,323	$	33,886		$	805,437


	Analysis of Unpaid Losses and Loss Adjustment Expenses
	As of June 30, 2012												As of December 31, 2011
	Gross			Ceded			Net			%			Gross		Ceded			Net		%
Outstanding losses and loss adjustment expenses	$	895,166		$	3,915		$	891,251			40.0	%	$	894,403	$	3,914		$	890,489		37.3	%
Incurred but not reported		1,334,437			20			1,334,417			60.0	%		1,495,211		41			1,495,170		62.7	%
Unpaid losses and loss adjustment expenses	$	2,229,603		$	3,935		$	2,225,668			100.0	%	$	2,389,614	$	3,955		$	2,385,659		100.0	%

(1)	Gross and ceded losses and loss adjustment expenses incurred includes effects of foreign currency exchange rate losses and gains of $36,076 and $35,287, respectively.

(2)	Gross and ceded losses and loss adjustment expenses incurred includes effects of foreign currency exchange rate losses and gains of $5,061 and $16, respectively.

- 27 -

Platinum Underwriters Holdings, Ltd.

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

($ in thousands)

	Three Months Ended June 30, 2012												Three Months Ended June 30, 2011
	Property and Marine			Casualty			Finite Risk			Total			Property and Marine			Casualty			Finite Risk			Total
Non-Major Catastrophe Favorable (Unfavorable) Development
Net loss development related to prior years	$	5,817		$	11,748		$	1,723		$	19,288		$	4,935		$	11,286		$	3,306		$	19,527
Net premium adjustments related to prior years' losses		2,532			539			-			3,071			(821	)		891			-			70
Net commission adjustments related to prior years' losses		(2	)		(545	)		(1,590	)		(2,137	)		212			(478	)		(3,217	)		(3,483	)
Net favorable (unfavorable) development		8,347			11,742			133			20,222			4,326			11,699			89			16,114

Major Catastrophe Favorable (Unfavorable) Development
Net loss development related to prior years		1,969			(13	)		-			1,956			239			(32	)		371			578
Net premium adjustments related to prior years' losses		1,011			-			-			1,011			(308	)		-			-			(308	)
Net commission adjustments related to prior years' losses		(9	)		-			-			(9	)		(3	)		-			-			(3	)
Net favorable (unfavorable) development		2,971			(13	)		-			2,958			(72	)		(32	)		371			267

Total net favorable (unfavorable) development	$	11,318		$	11,729		$	133		$	23,180		$	4,254		$	11,667		$	460		$	16,381



	Six Months Ended June 30, 2012												Six Months Ended June 30, 2011
	Property and Marine			Casualty			Finite Risk			Total			Property and Marine			Casualty			Finite Risk			Total
Non-Major Catastrophe Favorable (Unfavorable) Development
Net loss development related to prior years	$	16,198		$	27,745		$	5,419		$	49,362		$	2,987		$	30,841		$	4,781		$	38,609
Net premium adjustments related to prior years' losses		3,808			1,559			-			5,367			(70	)		482			-			412
Net commission adjustments related to prior years' losses		(283	)		(960	)		(5,398	)		(6,641	)		4			98			(4,071	)		(3,969	)
Net favorable (unfavorable) development		19,723			28,344			21			48,088			2,921			31,421			710			35,052

Major Catastrophe Favorable (Unfavorable) Development
Net loss development related to prior years		2,291			(17	)		-			2,274			14,421			(32	)		371			14,760
Net premium adjustments related to prior years' losses		677			-			-			677			(327	)		-			-			(327	)
Net commission adjustments related to prior years' losses		(24	)		-			-			(24	)		(8	)		-			-			(8	)
Net favorable (unfavorable) development		2,944			(17	)		-			2,927			14,086			(32	)		371			14,425

Total net favorable (unfavorable) development	$	22,667		$	28,327		$	21		$	51,015		$	17,007		$	31,389		$	1,081		$	49,477

- 28 -

Platinum Underwriters Holdings, Ltd.

Estimated Exposure to Peak Zone Property Catastrophe Losses

As of July 1, 2012

($ in millions)

Estimated Probable Maximum Losses by Zone and Peril

		20 Year Return Period				100 Year Return Period				250 Year Return Period
Zones	Peril	Estimated Gross Loss		Estimated Net Loss		Estimated Gross Loss		Estimated Net Loss		Estimated Gross Loss		Estimated Net Loss
United States/Caribbean	Hurricane	$	91	$	91	$	175	$	175	$	221	$	221
United States	Earthquake		13		13		98		98		147		147
Pan-European	Windstorm		66		61		154		144		175		165
Japanese	Typhoon		7		7		69		69		70		70
Japanese	Earthquake		12		12		165		165		220		220
Canadian	Earthquake	$	-	$	-	$	22	$	22	$	89	$	89

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 net of reinstatement premiums but before income tax. Net loss estimates are net of reinstatement premiums and net of retrocessional recoveries but before income tax.

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.

- 29 -

Attached files

Stock widget

Investing forum

PLATINUM UNDERWRITERS HOLDINGS LTD Reports