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8-K - LIVE FILING - PLATINUM UNDERWRITERS HOLDINGS LTD | htm_46650.htm |
EXHIBIT 99.1
Contact: Kenneth A. Kurtzman |
203-252-5833
PLATINUM UNDERWRITERS HOLDINGS, LTD. ESTIMATES PRELIMINARY NET NEGATIVE IMPACT FROM HURRICANE SANDY
HAMILTON, BERMUDA, DECEMBER 12, 2012 Platinum Underwriters Holdings, Ltd. (NYSE: PTP) today announced that it expects Hurricane Sandy will have a net negative impact of approximately $30 million on the Companys results for the quarter ended December 31, 2012. The net negative impact from Hurricane Sandy includes a preliminary estimate of losses and loss adjustment expenses, net of retrocessional coverage, reinstatement premiums and income taxes.
The estimated net negative impact from Hurricane Sandy is generally based on a review of the Companys in-force contracts and claims information and analysis received from brokers and cedants as well as the Companys portfolio modeling and market share analysis.
The Companys assessment of its exposure to this event is ongoing. The actual net negative impact of this event on the Companys results may differ materially from the Companys estimate due to the inherent uncertainties of making such estimates, including the preliminary nature of available information, uncertainties in loss development patterns, the use of portfolio models in the estimation process and potential inaccuracies and inadequacies in data provided by clients and brokers.
About Platinum
Platinum Underwriters Holdings, Ltd. (NYSE: PTP) is a leading provider of property, casualty and
finite risk reinsurance coverages, through reinsurance intermediaries, to a diverse clientele on a
worldwide basis. Platinum operates through its principal subsidiaries in Bermuda and the United
States. For further information, please visit Platinums website at www.platinumre.com.
Safe Harbor Statement Regarding Forward-Looking Statements:
This press release contains forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking
statements are based on our current plans or expectations that are inherently subject to
significant business, economic and competitive uncertainties and contingencies. These
uncertainties and contingencies can affect actual results and could cause actual results to differ
materially from those expressed in any forward-looking statements made by, or on behalf of, us. In
particular, statements using words such as may, should, estimate, expect, anticipate,
intend, believe, predict, potential, or words of similar import generally involve
forward-looking statements. The inclusion of forward-looking statements in this press release
should not be considered as a representation by us or any other person that our current plans or
expectations will be achieved. Numerous factors could cause our actual results to differ
materially from those in forward-looking statements, including, but not limited to, 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
DoddFrank 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.