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

Attached files

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8-K - PLATINUM UNDERWRITERS HOLDINGS LTD	thirdquarter2013_8k.htm
EX-99.1 - PLATINUM UNDERWRITERS HOLDINGS LTD	earningsreleaseq3_2013.htm

Exhibit 99.2

Platinum Underwriters Holdings, Ltd.

Financial Supplement

September 30, 2013

(UNAUDITED)

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.

Waterloo House

100 Pitts Bay Road

Pembroke, HM 08

Bermuda

Kenneth A. Kurtzman – Investor Relations

Tel: (203) 252-5833

Email: kkurtzman@platinumre.com

Website: www.platinumre.com

Platinum Underwriters Holdings, Ltd.

Basis of Presentation and Non-GAAP Financial Measures:

All financial information contained herein is unaudited except for the information for the fiscal year ended December 31, 2012. Amounts may not reconcile exactly due to rounding differences.

In presenting the Company's results, management has included financial measures that are not calculated under standards or rules that comprise accounting principles generally accepted in the United States (GAAP). Such measures, including operating income or loss (page 11), book value per common share and fully converted book value per common share (page 13) and underwriting income or loss and related underwriting ratios (pages 14-18), are referred to as non-GAAP measures. These non-GAAP measures may be defined or calculated differently by other companies. Management believes these measures 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, including the effect of new entrants to the 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 retrocessional reinsurance 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; 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, 2012.

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Platinum Underwriters Holdings, Ltd.

Table of Contents

			Page

		Financial Highlights:
		Financial Highlights	3

		Consolidated Financial Statements:
		Condensed Consolidated Balance Sheets - by Quarter	4
		Condensed Consolidated Statements of Operations and Comprehensive Income	5
		Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) - by Quarter	6
		Computation of Basic and Diluted Earnings Per Common Share	7
		Computation of Basic and Diluted Earnings Per Common Share - by Quarter	8
		Condensed Consolidated Statements of Cash Flows	9
		Condensed Consolidated Statements of Cash Flows - by Quarter	10

		Other Company Information:
		Computation of Net Operating Income and Net Operating Income Per Diluted Common Share	11
		Key Ratios, Share Data, Ratings	12
		Book Value and Fully Converted Book Value Per Common Share – by Quarter	13

		Operating Segment Information:
		Operating Segment Reporting - Three Month Summary	14
		Operating Segment Reporting - Nine Month Summary	15
		Property and Marine Segment - by Quarter	16
		Casualty Segment - by Quarter	17
		Finite Risk Segment - by Quarter	18
		Net Premiums Written - Supplemental Information	19
		Premiums by Line of Business - Three Month Summary	20
		Premiums by Line of Business - Nine Month Summary	21

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

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

		Exposures:
		Estimated Exposure to Peak Zone Property Catastrophe Losses	29

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Platinum Underwriters Holdings, Ltd.

Financial Highlights

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

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2013			2012			2013			2012
Highlights
Net premiums written	$	137,898		$	145,979		$	419,033		$	431,099
Net premiums earned		135,360			138,588			405,146			421,875
Underwriting income (1)		46,727			53,691			152,517			104,400
Net investment income		17,758			23,209			54,110			77,916
Net operating income (2)		39,101			65,292			154,707			142,290
Net realized gains (losses) on investments		(306	)		22,982			24,698			70,299
Net impairment losses on investments		(65	)		(699	)		(2,002	)		(2,882	)
Net income	$	38,285		$	84,864		$	174,655		$	205,683

Total assets	$	4,009,259		$	4,492,922		$	4,009,259		$	4,492,922
Investments and cash and cash equivalents		3,577,024			4,121,514			3,577,024			4,121,514
Total shareholders' equity		1,698,930			1,789,946			1,698,930			1,789,946
Unpaid losses and loss adjustment expenses	$	1,758,056		$	2,160,154		$	1,758,056		$	2,160,154

Per share data
Common shares outstanding - end of period		27,910			32,782			27,910			32,782
Weighted average common shares outstanding - basic		28,655			32,996			30,519			34,063
Adjusted weighted average common shares outstanding - diluted		29,065			33,272			30,949			34,286
Basic earnings per common share	$	1.34		$	2.56		$	5.71		$	6.02
Diluted earnings per common share		1.32			2.54			5.63			5.98
Operating income per common share - diluted (2)		1.35			1.96			4.99			4.15
Dividends per common share		0.08			0.08			0.24			0.24
Book value per common share (3)		60.87			54.60			60.87			54.60
Fully converted book value per common share (3)	$	59.26		$	53.21		$	59.26		$	53.21

(1)	See reconciliation of underwriting income on pages 14-18.

(2)	See computation of net operating income and net operating income per common share on page 11.

(3)	See computation of book value per common share and fully converted book value per common share on page 13.

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Platinum Underwriters Holdings, Ltd.

Condensed Consolidated Balance Sheets – by Quarter

($ in thousands, except per share data)

	September 30,		June 30,		March 31,		December 31,		September 30,
	2013		2013		2013		2012		2012
Assets
Investments:
Fixed maturity securities	$	1,937,984	$	1,920,710	$	1,992,457	$	2,054,498	$	2,293,094
Short-term investments		73,635		77,636		104,443		172,801		165,741
Cash and cash equivalents		1,565,405		1,609,461		1,786,246		1,720,395		1,662,679
Accrued investment income		20,451		19,805		22,995		21,299		23,856
Reinsurance premiums receivable		133,769		133,360		124,590		128,517		150,775
Reinsurance balances (prepaid and recoverable)		8,645		5,464		4,701		6,560		4,335
Funds held by ceding companies		118,983		119,445		115,915		114,090		113,310
Deferred acquisition costs		32,378		30,173		28,789		28,112		29,189
Reinsurance deposit assets		78,179		76,948		52,088		50,693		-
Other assets		39,830		54,900		37,084		36,338		49,943
Total assets	$	4,009,259	$	4,047,902	$	4,269,308	$	4,333,303	$	4,492,922

Liabilities
Unpaid losses and loss adjustment expenses	$	1,758,056	$	1,793,087	$	1,862,278	$	1,961,282	$	2,160,154
Unearned premiums		130,488		123,590		119,537		113,960		122,150
Debt obligations		250,000		250,000		250,000		250,000		250,000
Commissions payable		75,018		72,994		67,667		64,849		67,489
Other liabilities		96,767		61,685		57,160		48,678		103,183
Total liabilities	$	2,310,329	$	2,301,356	$	2,356,642	$	2,438,769	$	2,702,976

Shareholders' Equity
Common shares	$	279	$	293	$	318	$	327	$	328
Additional paid-in capital		-		3,817		150,693		209,897		211,546
Accumulated other comprehensive income		57,390		64,367		131,103		137,690		150,387
Retained earnings		1,641,261		1,678,069		1,630,552		1,546,620		1,427,685
Total shareholders' equity	$	1,698,930	$	1,746,546	$	1,912,666	$	1,894,534	$	1,789,946

Total liabilities and shareholders' equity	$	4,009,259	$	4,047,902	$	4,269,308	$	4,333,303	$	4,492,922

Book value per common share (1)	$	60.87	$	59.67	$	60.23	$	57.90	$	54.60
Fully converted book value per common share (1)	$	59.26	$	58.28	$	58.76	$	56.39	$	53.21

(1)	Book value per common share and fully converted book value per common share are non-GAAP financial measures as defined by Regulation G. See computation of book value per common share and fully converted book value per common share on page 13.

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Platinum Underwriters Holdings, Ltd.

Condensed Consolidated Statements of Operations and Comprehensive Income

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

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2013			2012			2013			2012
Revenue
Net premiums earned	$	135,360		$	138,588		$	405,146		$	421,875
Net investment income		17,758			23,209			54,110			77,916
Net realized gains (losses) on investments		(306	)		22,982			24,698			70,299
Net impairment losses on investments		(65	)		(699	)		(2,002	)		(2,882	)
Other income (expense)		1,426			(96	)		2,503			(766	)
Total revenue		154,173			183,984			484,455			566,442

Expenses
Net losses and loss adjustment expenses		44,142			45,117			120,807			191,430
Net acquisition expenses		30,675			26,168			91,207			87,025
Operating expenses		20,672			19,966			59,695			56,645
Net foreign currency exchange losses (gains)		487			541			(592	)		763
Interest expense		4,782			4,775			14,341			14,321
Total expenses		100,758			96,567			285,458			350,184
Income before income taxes		53,415			87,417			198,997			216,258
Income tax expense		15,130			2,553			24,342			10,575
Net income	$	38,285		$	84,864		$	174,655		$	205,683

Earnings Per Common Share
Weighted average common shares outstanding		28,655			32,996			30,519			34,063
Basic earnings per common share	$	1.34		$	2.56		$	5.71		$	6.02

Adjusted weighted average common shares outstanding		29,065			33,272			30,949			34,286
Diluted earnings per common share	$	1.32		$	2.54		$	5.63		$	5.98

Comprehensive income
Net income	$	38,285		$	84,864		$	174,655		$	205,683
Other comprehensive income (loss), net of deferred taxes		(6,977	)		1,825			(80,300	)		3,752
Comprehensive income	$	31,308		$	86,689		$	94,355		$	209,435

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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
	September 30,			June 30,			March 31,			December 31,			September 30,
	2013			2013			2013			2012			2012
Revenue
Net premiums earned	$	135,360		$	142,933		$	126,853		$	144,621		$	138,588
Net investment income		17,758			17,808			18,544			22,031			23,209
Net realized gains (losses) on investments		(306	)		11,686			13,318			18,455			22,982
Net impairment losses on investments		(65	)		(1,516	)		(421	)		(149	)		(699	)
Other income (expense)		1,426			(315	)		1,392			527			(96	)
Total revenue		154,173			170,596			159,686			185,485			183,984

Expenses
Net losses and loss adjustment expenses		44,142			62,667			13,998			(7,770	)		45,117
Net acquisition expenses		30,675			30,313			30,219			28,412			26,168
Operating expenses		20,672			19,718			19,305			23,808			19,966
Net foreign currency exchange losses (gains)		487			(859	)		(220	)		292			541
Interest expense		4,782			4,780			4,779			4,777			4,775
Total expenses		100,758			116,619			68,081			49,519			96,567
Income before income taxes		53,415			53,977			91,605			135,966			87,417
Income tax expense		15,130			4,123			5,089			14,421			2,553
Net income	$	38,285		$	49,854		$	86,516		$	121,545		$	84,864

Earnings Per Common Share
Weighted average common shares outstanding		28,655			30,571			32,373			32,674			32,996
Basic earnings per common share	$	1.34		$	1.63		$	2.67		$	3.71		$	2.56

Adjusted weighted average common shares outstanding		29,065			30,970			32,838			33,048			33,272
Diluted earnings per common share	$	1.32		$	1.61		$	2.63		$	3.67		$	2.54

Comprehensive income (loss)
Net income	$	38,285		$	49,854		$	86,516		$	121,545		$	84,864
Other comprehensive income (loss), net of deferred taxes		(6,977	)		(66,736	)		(6,587	)		(12,697	)		1,825
Comprehensive income (loss)	$	31,308		$	(16,882	)	$	79,929		$	108,848		$	86,689

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Platinum Underwriters Holdings, Ltd.

Computation of Basic and Diluted Earnings Per Common Share

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

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2013			2012			2013			2012
Earnings
Basic and Diluted
Net income attributable to common shareholders	$	38,285		$	84,864		$	174,655		$	205,683
Portion allocated to participating common shareholders (1)		(26	)		(234	)		(301	)		(740	)
Net income allocated to common shareholders	$	38,259		$	84,630		$	174,354		$	204,943

Common Shares
Basic
Weighted average common shares outstanding		28,655			32,996			30,519			34,063
Diluted
Weighted average common shares outstanding		28,655			32,996			30,519			34,063
Effect of dilutive securities:
Common share options		131			179			173			154
Restricted share units		279			97			257			69
Adjusted weighted average common shares outstanding		29,065			33,272			30,949			34,286

Earnings Per Common Share
Basic earnings per common share	$	1.34		$	2.56		$	5.71		$	6.02
Diluted earnings per common share	$	1.32		$	2.54		$	5.63		$	5.98

(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. In July 2013, the 73 outstanding restricted shares vested and therefore there were no unvested restricted shares as of September 30, 2013.

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Platinum Underwriters Holdings, Ltd.

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

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

	Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2013			2013			2013			2012			2012
Earnings
Basic and Diluted
Net income attributable to common shareholders	$	38,285		$	49,854		$	86,516		$	121,545		$	84,864
Portion allocated to participating common shareholders (1)		(26	)		(113	)		(189	)		(265	)		(234	)
Net income allocated to common shareholders	$	38,259		$	49,741		$	86,327		$	121,280		$	84,630

Common Shares
Basic
Weighted average common shares outstanding		28,655			30,571			32,373			32,674			32,996
Diluted
Weighted average common shares outstanding		28,655			30,571			32,373			32,674			32,996
Effect of dilutive securities:
Common share options		131			155			219			204			179
Restricted share units		279			244			246			170			97
Adjusted weighted average common shares outstanding		29,065			30,970			32,838			33,048			33,272

Earnings Per Common Share
Basic earnings per common share	$	1.34		$	1.63		$	2.67		$	3.71		$	2.56
Diluted earnings per common share	$	1.32		$	1.61		$	2.63		$	3.67		$	2.54

(1)

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Platinum Underwriters Holdings, Ltd.

Condensed Consolidated Statements of Cash Flows

($ in thousands)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Net cash provided by (used in) operating activities	$	35,015		$	40,216		$	(14,098	)	$	(18,969	)

Net cash provided by (used in) investing activities		(4,036	)		170,213			161,414			1,002,491

Net cash provided by (used in) financing activities		(79,551	)		(20,788	)		(294,561	)		(115,216	)

Effect of foreign currency exchange rate changes		4,516			7,055			(7,745	)		1,863

Net increase (decrease) in cash and cash equivalents	$	(44,056	)	$	196,696		$	(154,990	)	$	870,169

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Platinum Underwriters Holdings, Ltd.

Condensed Consolidated Statements of Cash Flows – by Quarter

($ in thousands)

	Three Months Ended
	September 30, 2013			June 30, 2013			March 31, 2013			December 31, 2012			September 30, 2012
Net cash provided by (used in) operating activities	$	35,015		$	(36,555	)	$	(12,558	)	$	(146,368	)	$	40,216

Net cash provided by (used in) investing activities		(4,036	)		18,716			146,734			216,909			170,213

Net cash provided by (used in) financing activities		(79,551	)		(151,496	)		(63,514	)		(6,696	)		(20,788	)

Effect of foreign currency exchange rate changes		4,516			(7,450	)		(4,811	)		(6,129	)		7,055

Net increase (decrease) in cash and cash equivalents	$	(44,056	)	$	(176,785	)	$	65,851		$	57,716		$	196,696

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Platinum Underwriters Holdings, Ltd.

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

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

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2013			2012			2013			2012
Net income attributable to common shareholders	$	38,285		$	84,864		$	174,655		$	205,683
Portion allocated to participating common shareholders (1)		(26	)		(234	)		(301	)		(740	)
Net income allocated to common shareholders	$	38,259		$	84,630		$	174,354		$	204,943

Adjustments for:
Net realized (gains) losses on investments, net of tax	$	306		$	(20,516	)	$	(21,023	)	$	(66,079	)
Net impairment losses on investments, net of tax		65			666			1,969			2,617
Net foreign currency exchange losses (gains), net of tax		471			512			(593	)		809
Net operating income (2)	$	39,101		$	65,292		$	154,707		$	142,290

Per diluted common share:
Net income	$	1.32		$	2.54		$	5.63		$	5.98
Adjustments for:
Net realized (gains) losses on investments		0.01			(0.62	)		(0.68	)		(1.93	)
Net impairment losses on investments		-			0.02			0.06			0.08
Net foreign currency exchange losses (gains)		0.02			0.02			(0.02	)		0.02
Net operating income per diluted common share (3)	$	1.35		$	1.96		$	4.99		$	4.15

Adjusted weighted average common shares outstanding - diluted		29,065			33,272			30,949			34,286

(1)

(2)	Net operating income is a non-GAAP measure as defined by Regulation G and represents net income after taxes excluding net realized gains and losses on investments, net impairment losses on investments and net foreign currency exchange gains and losses.

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

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Platinum Underwriters Holdings, Ltd.

Key Ratios, Share Data, Ratings

	As of and for the Three Months Ended
	September 30,		June 30,		March 31,		December 31,		September 30,
	2013		2013		2013		2012		2012
Key Ratios
Combined ratio (%)		65.5%		74.4%		45.4%		25.4%		61.3%
Investable assets to shareholders' equity ratio	2.11:1		2.07:1		2.03:1		2.08:1		2.30:1
Debt to total capital (%)		12.8%		12.5%		11.6%		11.7%		12.3%
Net premiums written (annualized) to shareholders' equity		0.32		0.34		0.28		0.28		0.33

Share Data
Book value per common share (1)	$	60.87	$	59.67	$	60.23	$	57.90	$	54.60
Common shares outstanding (000's)		27,910		29,268		31,757		32,722		32,782

Market Price Per Common Share
High	$	61.06	$	59.50	$	56.34	$	47.40	$	43.08
Low		56.63		54.06		46.24		40.89		37.58
Close	$	59.73	$	57.22	$	55.81	$	46.00	$	40.87

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		123		124		125		125		125

(1)	See computation of book value per common share on page 13.

- 12 -

Platinum Underwriters Holdings, Ltd.

Book Value and Fully Converted Book Value Per Common Share – by Quarter

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

	September 30,		June 30,		March 31,		December 31,		September 30,
	2013		2013		2013		2012		2012
Market price per share at period end	$	59.73	$	57.22	$	55.81	$	46.00	$	40.87

Shareholders' equity	$	1,698,930	$	1,746,546	$	1,912,666	$	1,894,534	$	1,789,946
Add: Assumed exercise of share options		13,225		13,539		20,303		27,688		29,669
Shareholders' equity - diluted	$	1,712,155	$	1,760,085	$	1,932,969	$	1,922,222	$	1,819,615

Basic common shares outstanding		27,910		29,268		31,757		32,722		32,782
Add: Common share options (1)		388		397		604		833		903
Add: Restricted share units		596		535		536		536		515
Diluted common shares outstanding		28,894		30,200		32,897		34,091		34,200

Book value per common share (2)
Book value per common share	$	60.87	$	59.67	$	60.23	$	57.90	$	54.60
Fully converted book value per common share	$	59.26	$	58.28	$	58.76	$	56.39	$	53.21

(1)	Options with a price below the market price per share at period end.

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

- 13 -

Platinum Underwriters Holdings, Ltd.

Operating Segment Reporting – Three Month Summary

($ in thousands)

	Three Months Ended September 30, 2013												Three Months Ended September 30, 2012
	Property and Marine			Casualty			Finite Risk			Total			Property and Marine			Casualty			Finite Risk			Total
Net premiums written	$	59,169		$	69,992		$	8,737		$	137,898		$	64,876		$	72,358		$	8,745		$	145,979

Net premiums earned		55,127			72,543			7,690			135,360			61,900			70,326			6,362			138,588
Net losses and loss adjustment expenses		28,339			10,242			5,561			44,142			26,790			14,358			3,969			45,117
Net acquisition expenses		9,699			19,067			1,909			30,675			7,078			16,710			2,380			26,168
Other underwriting expenses		7,747			5,727			342			13,816			7,661			5,662			289			13,612
Segment underwriting income (loss)*	$	9,342		$	37,507		$	(122	)		46,727		$	20,371		$	33,596		$	(276	)		53,691

Net investment income											17,758												23,209
Net realized gains (losses) on investments											(306	)											22,982
Net impairment losses on investments											(65	)											(699	)
Other income (expense)											1,426												(96	)
Corporate expenses not allocated to segments											(6,856	)											(6,354	)
Net foreign currency exchange (losses) gains											(487	)											(541	)
Interest expense											(4,782	)											(4,775	)
Income before income taxes										$	53,415											$	87,417

Underwriting ratios:*
Net loss and loss adjustment expense		51.4	%		14.1	%		72.3	%		32.6	%		43.3	%		20.4	%		62.4	%		32.6	%
Net acquisition expense		17.6	%		26.3	%		24.8	%		22.7	%		11.4	%		23.8	%		37.4	%		18.9	%
Other underwriting expense		14.1	%		7.9	%		4.4	%		10.2	%		12.4	%		8.1	%		4.5	%		9.8	%
Combined		83.1	%		48.3	%		101.5	%		65.5	%		67.1	%		52.3	%		104.3	%		61.3	%

Statutory underwriting ratios:*
Net loss and loss adjustment expense		51.4	%		14.1	%		72.3	%		32.6	%		43.3	%		20.4	%		62.4	%		32.6	%
Net acquisition expense		20.6	%		26.5	%		23.4	%		23.8	%		11.7	%		23.8	%		32.8	%		19.0	%
Other underwriting expense		13.1	%		8.2	%		3.9	%		10.0	%		11.8	%		7.8	%		3.3	%		9.3	%
Combined		85.1	%		48.8	%		99.6	%		66.4	%		66.8	%		52.0	%		98.5	%		60.9	%

* 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.

Operating Segment Reporting – Nine Month Summary

($ in thousands)

	Nine Months Ended September 30, 2013												Nine Months Ended September 30, 2012
	Property and Marine			Casualty			Finite Risk			Total			Property and Marine			Casualty			Finite Risk			Total
Net premiums written	$	175,946		$	220,547		$	22,540		$	419,033		$	194,724		$	219,436		$	16,939		$	431,099

Net premiums earned		165,811			218,967			20,368			405,146			186,066			221,838			13,971			421,875
Net losses and loss adjustment expenses		35,426			75,243			10,138			120,807			85,380			101,245			4,805			191,430
Net acquisition expenses		27,624			53,384			10,199			91,207			25,034			52,572			9,419			87,025
Other underwriting expenses		22,493			17,120			1,002			40,615			21,950			16,323			747			39,020
Segment underwriting income (loss)*	$	80,268		$	73,220		$	(971	)		152,517		$	53,702		$	51,698		$	(1,000	)		104,400

Net investment income											54,110												77,916
Net realized gains on investments											24,698												70,299
Net impairment losses on investments											(2,002	)											(2,882	)
Other income (expense)											2,503												(766	)
Corporate expenses not allocated to segments											(19,080	)											(17,625	)
Net foreign currency exchange (losses) gains											592												(763	)
Interest expense											(14,341	)											(14,321	)
Income before income taxes										$	198,997											$	216,258

Underwriting ratios:*
Net loss and loss adjustment expense		21.4	%		34.4	%		49.8	%		29.8	%		45.9	%		45.6	%		34.4	%		45.4	%
Net acquisition expense		16.7	%		24.4	%		50.1	%		22.5	%		13.5	%		23.7	%		67.4	%		20.6	%
Other underwriting expense		13.6	%		7.8	%		4.9	%		10.0	%		11.8	%		7.4	%		5.3	%		9.2	%
Combined		51.7	%		66.6	%		104.8	%		62.3	%		71.2	%		76.7	%		107.1	%		75.2	%

Statutory underwriting ratios:*
Net loss and loss adjustment expense		21.4	%		34.4	%		49.8	%		29.8	%		45.9	%		45.6	%		34.4	%		45.4	%
Net acquisition expense		17.8	%		24.4	%		46.4	%		22.8	%		12.8	%		24.0	%		58.9	%		20.3	%
Other underwriting expense		12.8	%		7.8	%		4.4	%		9.7	%		11.3	%		7.4	%		4.4	%		9.1	%
Combined		52.0	%		66.6	%		100.6	%		62.3	%		70.0	%		77.0	%		97.7	%		74.8	%

* 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
	September 30,			June 30,			March 31,			December 31,			September 30,
	2013			2013			2013			2012			2012
Net premiums written	$	59,169		$	57,350		$	59,427		$	61,458		$	64,876

Net premiums earned		55,127			58,832			51,852			67,538			61,900
Net losses and loss adjustment expenses		28,339			21,292			(14,205	)		47,200			26,790
Net acquisition expenses		9,699			9,698			8,227			9,308			7,078
Other underwriting expenses		7,747			7,414			7,332			9,190			7,661
Segment underwriting income*	$	9,342		$	20,428		$	50,498		$	1,840		$	20,371

Underwriting ratios:*
Net loss and loss adjustment expense		51.4	%		36.2	%		(27.4	%)		69.9	%		43.3	%
Net acquisition expense		17.6	%		16.5	%		15.9	%		13.8	%		11.4	%
Other underwriting expense		14.1	%		12.6	%		14.1	%		13.6	%		12.4	%
Combined		83.1	%		65.3	%		2.6	%		97.3	%		67.1	%

Statutory underwriting ratios:*
Net loss and loss adjustment expense		51.4	%		36.2	%		(27.4	%)		69.9	%		43.3	%
Net acquisition expense		20.6	%		17.3	%		15.4	%		14.5	%		11.7	%
Other underwriting expense		13.1	%		12.9	%		12.3	%		15.0	%		11.8	%
Combined		85.1	%		66.4	%		0.3	%		99.4	%		66.8	%

* 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
	September 30,			June 30,			March 31,			December 31,			September 30,
	2013			2013			2013			2012			2012
Net premiums written	$	69,992		$	79,711		$	70,844		$	67,676		$	72,358

Net premiums earned		72,543			75,629			70,795			72,284			70,326
Net losses and loss adjustment expenses		10,242			35,358			29,643			(57,482	)		14,358
Net acquisition expenses		19,067			18,068			16,249			16,415			16,710
Other underwriting expenses		5,727			5,670			5,723			6,614			5,662
Segment underwriting income*	$	37,507		$	16,533		$	19,180		$	106,737		$	33,596

Underwriting ratios:*
Net loss and loss adjustment expense		14.1	%		46.8	%		41.9	%		(79.5	%)		20.4	%
Net acquisition expense		26.3	%		23.9	%		23.0	%		22.7	%		23.8	%
Other underwriting expense		7.9	%		7.5	%		8.1	%		9.2	%		8.1	%
Combined		48.3	%		78.2	%		73.0	%		(47.6	%)		52.3	%

Statutory underwriting ratios:*
Net loss and loss adjustment expense		14.1	%		46.8	%		41.9	%		(79.5	%)		20.4	%
Net acquisition expense		26.5	%		23.9	%		22.7	%		23.3	%		23.8	%
Other underwriting expense		8.2	%		7.1	%		8.1	%		9.8	%		7.8	%
Combined		48.8	%		77.8	%		72.7	%		(46.4	%)		52.0	%

* 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
	September 30,			June 30,			March 31,			December 31,			September 30,
	2013			2013			2013			2012			2012
Net premiums written	$	8,737		$	9,309		$	4,494		$	4,767		$	8,745

Net premiums earned		7,690			8,472			4,206			4,799			6,362
Net losses and loss adjustment expenses		5,561			6,017			(1,440	)		2,512			3,969
Net acquisition expenses		1,909			2,547			5,743			2,689			2,380
Other underwriting expenses		342			327			333			358			289
Segment underwriting income (loss)*	$	(122	)	$	(419	)	$	(430	)	$	(760	)	$	(276	)

Underwriting ratios:*
Net loss and loss adjustment expense		72.3	%		71.0	%		(34.2	%)		52.3	%		62.4	%
Net acquisition expense		24.8	%		30.1	%		136.5	%		56.0	%		37.4	%
Other underwriting expense		4.4	%		3.9	%		7.9	%		7.5	%		4.5	%
Combined		101.5	%		105.0	%		110.2	%		115.8	%		104.3	%

Statutory underwriting ratios:*
Net loss and loss adjustment expense		72.3	%		71.0	%		(34.2	%)		52.3	%		62.4	%
Net acquisition expense		23.4	%		28.7	%		127.7	%		55.9	%		32.8	%
Other underwriting expense		3.9	%		3.5	%		7.4	%		7.5	%		3.3	%
Combined		99.6	%		103.2	%		100.9	%		115.7	%		98.5	%

* 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.

- 18 -

Platinum Underwriters Holdings, Ltd.

Net Premiums Written – Supplemental Information

($ in thousands)

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2013		2012		2013		2012
Property and Marine
Excess-of-Loss	$	41,120	$	53,249	$	133,578	$	160,284
Proportional		18,049		11,627		42,368		34,440
Subtotal Property and Marine		59,169		64,876		175,946		194,724
Casualty
Excess-of-Loss		52,694		59,436		170,959		179,927
Proportional		17,298		12,922		49,588		39,509
Subtotal Casualty		69,992		72,358		220,547		219,436
Finite Risk
Excess-of-Loss		-		-		-		-
Proportional		8,737		8,745		22,540		16,939
Subtotal Finite Risk		8,737		8,745		22,540		16,939
Combined Segments
Excess-of-Loss		93,814		112,685		304,537		340,211
Proportional		44,084		33,294		114,496		90,888
Total	$	137,898	$	145,979	$	419,033	$	431,099

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
		2013		2012		2013		2012
Property and Marine
United States	$	35,008	$	41,642	$	102,867	$	119,285
International		24,161		23,234		73,079		75,439
Subtotal Property and Marine		59,169		64,876		175,946		194,724
Casualty
United States		61,642		65,454		195,808		197,866
International		8,350		6,904		24,739		21,570
Subtotal Casualty		69,992		72,358		220,547		219,436
Finite Risk
United States		8,737		8,745		22,540		16,939
International		-		-		-		-
Subtotal Finite Risk		8,737		8,745		22,540		16,939
Combined Segments
United States		105,387		115,841		321,215		334,090
International		32,511		30,138		97,818		97,009
Total	$	137,898	$	145,979	$	419,033	$	431,099

- 19 -

Platinum Underwriters Holdings, Ltd.

Premiums by Line of Business – Three Month Summary

($ in thousands)

	Three Months Ended September 30, 2013						Three Months Ended September 30, 2012
	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	$	11,554	$	11,554	$	6,525	$	1,855	$	1,855	$	784
North American Property Catastrophe		20,792		13,367		15,795		23,924		23,923		23,415
North American Property Risk		7,744		7,744		7,663		8,249		7,990		7,506
Other Property		3,540		2,990		2,990		8,599		8,599		8,648
Marine / Aviation Proportional		2,390		2,390		2,145		1,561		1,561		1,715
Marine / Aviation Excess		1,308		1,308		1,230		712		712		696
International Property Proportional		3,901		3,901		4,001		3,582		3,582		3,693
International Property Catastrophe		14,621		13,796		12,623		14,999		15,000		13,168
International Property Risk		2,119		2,119		2,155		1,654		1,654		2,275
Subtotal		67,969		59,169		55,127		65,135		64,876		61,900

Casualty
Clash		2,180		2,180		2,221		2,458		2,458		2,599
1st Dollar GL		1,583		1,583		1,685		2,467		2,467		2,977
1st Dollar Other		3,724		3,724		3,783		3,192		3,192		3,248
Casualty Excess		39,112		39,112		42,053		45,401		45,401		43,574
Accident & Health		13,775		13,659		13,115		10,556		10,544		9,694
International Casualty		5,152		5,152		5,104		3,868		3,868		3,796
International Motor		666		666		551		581		581		473
Financial Lines		3,916		3,916		4,031		3,847		3,847		3,965
Subtotal		70,108		69,992		72,543		72,370		72,358		70,326

Finite Risk
Finite Casualty		8,737		8,737		7,690		8,745		8,745		6,362
Subtotal		8,737		8,737		7,690		8,745		8,745		6,362

Total	$	146,814	$	137,898	$	135,360	$	146,250	$	145,979	$	138,588

- 20 -

Platinum Underwriters Holdings, Ltd.

Premiums by Line of Business – Nine Month Summary

($ in thousands)

	Nine Months Ended September 30, 2013						Nine Months Ended September 30, 2012
	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	$	20,949	$	20,949	$	15,226	$	3,256	$	3,256	$	3,341
North American Property Catastrophe		58,307		50,152		53,401		67,679		67,943		64,543
North American Property Risk		23,923		23,873		23,765		25,223		24,964		26,646
Other Property		11,493		10,182		10,679		25,407		25,407		25,335
Marine / Aviation Proportional		6,616		6,616		5,289		4,746		4,746		4,305
Marine / Aviation Excess		1,465		1,465		1,466		4,055		4,055		4,879
International Property Proportional		12,580		12,580		12,099		11,988		11,988		12,234
International Property Catastrophe		44,637		43,812		37,542		46,716		46,325		38,327
International Property Risk		6,317		6,317		6,344		6,040		6,040		6,456
Subtotal		186,287		175,946		165,811		195,110		194,724		186,066

Casualty
Clash		5,883		5,883		5,857		6,988		6,988		7,086
1st Dollar GL		5,447		5,447		5,525		6,557		6,557		9,115
1st Dollar Other		11,543		11,543		11,397		8,710		8,710		9,453
Casualty Excess		128,639		128,639		131,641		139,546		139,546		139,264
Accident & Health		40,887		40,245		39,777		31,727		31,690		29,255
International Casualty		15,342		15,342		11,135		12,373		12,373		13,018
International Motor		1,675		1,675		1,557		1,477		1,477		1,365
Financial Lines		11,773		11,773		12,078		12,095		12,095		13,282
Subtotal		221,189		220,547		218,967		219,473		219,436		221,838

Finite Risk
Finite Casualty		22,540		22,540		20,368		16,939		16,939		13,971
Subtotal		22,540		22,540		20,368		16,939		16,939		13,971

Total	$	430,016	$	419,033	$	405,146	$	431,522	$	431,099	$	421,875

- 21 -

Platinum Underwriters Holdings, Ltd.

Investments

($ in thousands)

	September 30, 2013								December 31, 2012
	Fair Value		Book Yield			Market Yield			Fair Value		Book Yield			Market Yield

Fixed maturity available-for-sale securities:
U.S. Government	$	4,809		2.8	%		0.4	%	$	4,944		2.7	%		0.4	%
Municipal bonds		1,274,809		3.8	%		2.6	%		1,209,934		4.4	%		2.3	%
Non-U.S. governments		40,512		1.2	%		0.7	%		50,977		1.6	%		0.8	%
Corporate bonds		230,842		4.3	%		3.6	%		300,908		4.4	%		2.7	%
Commercial mortgage-backed securities		88,104		5.6	%		2.4	%		135,526		5.3	%		2.5	%
Residential mortgage-backed securities		178,795		1.5	%		1.4	%		221,622		1.6	%		1.2	%
Asset-backed securities		17,509		5.0	%		3.1	%		17,774		1.7	%		1.6	%
Total fixed maturity available-for-sale securities	$	1,835,380		3.7	%		2.6	%	$	1,941,685		4.0	%		2.2	%

Fixed maturity trading securities:
Non-U.S. governments	$	102,604		3.5	%		0.5	%	$	112,813		3.6	%		0.4	%
Total fixed maturity trading securities	$	102,604		3.5	%		0.5	%	$	112,813		3.6	%		0.4	%

Short-term investments	$	73,635		2.3	%		2.1	%	$	172,801		1.8	%		2.0	%

	September 30, 2013								December 31, 2012
Credit quality of investments*	Fair Value		% of Total						Fair Value		% of Total
Aaa	$	600,479		29.9	%				$	776,738		34.9	%
Aa		817,689		40.6	%					831,190		37.3	%
A		363,422		18.1	%					340,612		15.3	%
Baa		196,964		9.8	%					231,950		10.4	%
Below investment grade		33,065		1.6	%					46,809		2.1	%
Total	$	2,011,619		100.0	%				$	2,227,299		100.0	%

Portfolio information**
Credit Quality	Aa2								Aa1
Book Yield		2.1%								2.1%
Duration	2.5 yrs								2.6 yrs

Rated using external rating agencies (primarily Moody’s) including credit enhancements from insurance entities. As of September 30, 2013, there were approximately $10.9 million and $4.5 million of municipal bonds whose ratings of “Aa” and “A”, respectively, included the benefit of guarantees from third-party insurers that would otherwise be rated as “A” and “Baa”, respectively, 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)

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Platinum Underwriters Holdings, Ltd.

Fixed Maturity Available-for-Sale Securities Detail

($ in thousands)

	September 30, 2013
	Fair Value		Net Unrealized Gain (Loss)			Credit Quality	Duration		Weighted Average Life
Fixed maturity available-for-sale securities:
U.S. Government	$	4,809	$	230		Aaa		2.0
Municipal bonds:
State general obligation bonds		871,520		38,709		Aa2		5.8
Essential service bonds*		185,433		7,232		Aa3		4.2
Pre-refunded bonds		65,543		3,262		Aa2		1.6
State income tax and sales tax bonds		76,179		5,828		Aa1		6.3
Other municipal bonds		76,134		2,267		Aa2		4.5
Subtotal		1,274,809		57,298		Aa2		5.3
Non-U.S. governments		40,512		541		Aa1		1.3
Corporate bonds:
Industrial		154,096		1,641		Baa2		5.3
Utilities		57,669		739		Baa1		5.8
Insurance		19,077		1,627		Baa2		6.3
Subtotal		230,842		4,007		Baa2		5.5
Commercial mortgage-backed securities		88,104		4,834		Aa3		2.0		2.3
Residential mortgage-backed securities:
U.S. Government agency residential mortgage-backed securities		161,937		1,113		Aaa		1.3		5.8
Non-agency residential mortgage-backed securities		16,858		(980	)	Caa2		-		6.5
Subtotal		178,795		133		Aa2		1.1		5.8
Asset-backed securities:
Asset-backed securities		13,529		(71	)	Aaa		0.1		5.7
Sub-prime asset-backed securities		3,980		1,323		C		-		9.4
Subtotal		17,509		1,252		A2		0.1		6.5
Total	$	1,835,380	$	68,295		Aa3		4.6

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

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Platinum Underwriters Holdings, Ltd.

Corporate Bonds Detail

($ in thousands)

	September 30, 2013
	Par Value		Fair Value		Net Unrealized Gain (Loss)			Credit Quality
Top 20 Holdings
American Electric Power Company, Inc.	$	12,500	$	12,644	$	159		Baa1
Mattel, Inc.		10,000		10,576		467		Baa1
Anglo American plc		8,000		9,344		272		Baa2
FirstEnergy Corp.		7,000		7,355		357		Baa2
Loews Corporation		6,000		7,215		1,205		Baa2
Snap-On Incorporated		7,000		7,137		131		Baa1
Teck Resources Limited		6,750		6,562		(158	)	Baa2
Southern Company		6,625		6,402		(213	)		A3
Hess Corporation		5,000		6,265		493		Baa2
Entergy Corporation		6,000		6,218		217		Baa2
ArcelorMittal		5,000		6,173		109		Ba1
Newmont Mining Corporation		7,000		6,107		(847	)	Baa1
Northeast Utilities		5,700		5,855		(33	)	Baa2
Grupo Mexico, S.A.B de C.V.		5,000		5,357		337		Baa2
Berkshire Hathaway Inc.		5,375		5,325		(47	)		A2
Southwestern Energy Company		5,300		5,293		(19	)	Baa3
Joy Global Inc.		5,000		5,220		190		Baa2
Lowe’s Companies, Inc.		5,000		5,201		183			A3
Noble Energy, Inc.		5,000		5,165		148		Baa2
Temasek Holdings (Private) Limited	$	5,000	$	5,027	$	21			A1

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Platinum Underwriters Holdings, Ltd.

Municipal Bonds Detail

($ in thousands)

	September 30, 2013
	Par Value		Fair Value			Net Unrealized Gain (Loss)			Credit Quality
Top 10 Exposures by Jurisdiction
Pennsylvania	$	131,920	$	144,950		$	7,226		Aa2
Illinois		136,500		140,624			2,106			A3
Connecticut		99,620		103,023			2,079		Aa3
California		90,235		102,150			8,852			A1
Massachusetts		72,560		76,132			2,464		Aa2
Texas		72,075		75,638			1,746		Aaa
Maryland		46,180		53,476			1,615		Aaa
New Jersey		48,675		50,473			(498	)		A2
New York		44,500		49,089			4,405		Aa1
Mississippi	$	42,905	$	44,900		$	1,318		Aa2

	September 30, 2013
	Par Value		Fair Value			Net Unrealized Gain (Loss)			Credit Quality
Top 10 Holdings by Issuer
State of Illinois	$	112,000	$	115,080		$	1,190			A3
State of Pennsylvania		96,700		107,892			6,061		Aa2
State of Connecticut		99,620		103,023			2,079		Aa3
State of California		88,235		99,995			8,722			A1
State of Massachusetts		59,010		61,541			1,423		Aa1
State of Texas		50,145		52,510			512		Aaa
State of Maryland		38,180		45,145			1,331		Aaa
State of Mississippi		42,905		44,900			1,318		Aa2
State of Hawaii		35,000		40,159			5,045		Aa2
State of Arkansas	$	30,000	$	34,144		$	900		Aa1

	September 30, 2013
	Fair Value		% of Total

Credit quality of municipal bond portfolio*
Aaa	$	241,718		19.0	%
Aa		714,409		56.0	%
A		317,656		24.9	%
Baa		1,026		0.1	%
Total	$	1,274,809		100.0	%

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

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Platinum Underwriters Holdings, Ltd.

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

($ in thousands)

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2013			2012		2013			2012
Net realized gains (losses) on investments by entity:
Subsidiary domiciled in Bermuda	$	(306	)	$	15,935	$	14,198		$	58,242
Subsidiaries domiciled in the United States		-			7,047		10,500			12,057
Total	$	(306	)	$	22,982	$	24,698		$	70,299

Net realized gains (losses) on investments by type:
Sale of securities	$	-		$	22,979	$	27,243		$	70,919
Fair value adjustments on trading securities		(306	)		3		(2,545	)		(620	)
Total	$	(306	)	$	22,982	$	24,698		$	70,299

Net impairment losses on investments by entity:
Subsidiary domiciled in Bermuda	$	65		$	605	$	1,909		$	2,126
Subsidiaries domiciled in the United States		-			94		93			756
Total	$	65		$	699	$	2,002		$	2,882

Net impairment losses on investments by type of security:
Commercial mortgage-backed securities	$	-		$	-	$	-		$	30
Non-agency residential mortgage-backed securities		28			693		1,439			2,839
Sub-prime asset-backed securities		37			6		563			13
Total	$	65		$	699	$	2,002		$	2,882

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Platinum Underwriters Holdings, Ltd.

Analysis of Losses and Loss Adjustment Expenses

($ in thousands)

	Analysis of Losses and Loss Adjustment Expenses
	Nine Months Ended September 30, 2013												Twelve Months Ended December 31, 2012
	Gross			Ceded			Net			Paid to Incurred %			Gross			Ceded			Net			Paid to Incurred %
Paid losses and loss adjustment expenses	$	314,576		$	(389	)	$	314,965			260.7	%	$	620,304		$	73		$	620,231			337.7	%
Change in unpaid losses and loss adjustment expenses		(194,181	)		(23	)		(194,158	)					(436,928	)		(357	)		(436,571	)
Losses and loss adjustment expenses	$	120,395		$	(412	)	$	120,807					$	183,376		$	(284	)	$	183,660

	Analysis of Unpaid Losses and Loss Adjustment Expenses
	As of September 30, 2013 (1)												As of December 31, 2012 (2)
	Gross			Ceded			Net			%			Gross			Ceded			Net			%
Outstanding losses and loss adjustment expenses	$	718,128		$	3,571		$	714,557			40.7	%	$	799,593		$	3,594		$	795,999			40.7	%
Incurred but not reported		1,039,928			3			1,039,925			59.3	%		1,161,689			3			1,161,686			59.3	%
Unpaid losses and loss adjustment expenses	$	1,758,056		$	3,574		$	1,754,482			100.0	%	$	1,961,282		$	3,597		$	1,957,685			100.0	%

(1)	Gross and ceded unpaid losses and loss adjustment expenses include the effects of foreign currency exchange rate losses (gains) of ($9,045) and $0, respectively, for the nine months ended September 30, 2013.

(2)	Gross and ceded unpaid losses and loss adjustment expenses include the effects of foreign currency exchange rate losses (gains) of $8,596 and ($1), respectively, for the twelve months ended December 31, 2012.

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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 September 30, 2013												Three Months Ended September 30, 2012
	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	$	5,234		$	40,094		$	905		$	46,233		$	9,532		$	39,951		$	1,136		$	50,619
Net premium adjustments related to prior years' losses		742			313			-			1,055			272			417			-			689
Net commission adjustments related to prior years' losses		(153	)		(1,295	)		(429	)		(1,877	)		461			(55	)		(1,015	)		(609	)
Net favorable (unfavorable) development		5,823			39,112			476			45,411			10,265			40,313			121			50,699

Major Catastrophe Favorable (Unfavorable) Development
Net loss development related to prior years		(3,817	)		3			(400	)		(4,214	)		11,281			4			-			11,285
Net premium adjustments related to prior years' losses		45			-			-			45			(648	)		-			-			(648	)
Net commission adjustments related to prior years' losses		(9	)		-			-			(9	)		(13	)		-			-			(13	)
Net favorable (unfavorable) development		(3,781	)		3			(400	)		(4,178	)		10,620			4			-			10,624

Total net favorable (unfavorable) development	$	2,042		$	39,115		$	76		$	41,233		$	20,885		$	40,317		$	121		$	61,323

	Nine Months Ended September 30, 2013												Nine Months Ended September 30, 2012
	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	$	21,719		$	85,636		$	6,848		$	114,203		$	25,730		$	67,696		$	6,555		$	99,981
Net premium adjustments related to prior years' losses		776			204			-			980			4,080			1,976			-			6,056
Net commission adjustments related to prior years' losses		163			(149	)		(6,152	)		(6,138	)		178			(1,015	)		(6,413	)		(7,250	)
Net favorable (unfavorable) development		22,658			85,691			696			109,045			29,988			68,657			142			98,787

Major Catastrophe Favorable (Unfavorable) Development
Net loss development related to prior years		35,782			29			(900	)		34,911			13,572			(13	)		-			13,559
Net premium adjustments related to prior years' losses		(4,038	)		-			-			(4,038	)		29			-			-			29
Net commission adjustments related to prior years' losses		(40	)		-			-			(40	)		(37	)		-			-			(37	)
Net favorable (unfavorable) development		31,704			29			(900	)		30,833			13,564			(13	)		-			13,551

Total net favorable (unfavorable) development	$	54,362		$	85,720		$	(204	)	$	139,878		$	43,552		$	68,644		$	142		$	112,338

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Platinum Underwriters Holdings, Ltd.

Estimated Exposure to Peak Zone Property Catastrophe Losses

As of October 1, 2013

($ 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*	$	98	$	65	$	185	$	122	$	232	$	169
United States	Earthquake*		21		21		116		77		155		105
Pan-European	Windstorm		53		44		136		126		165		155
Japanese	Earthquake		14		14		149		149		197		197
Japanese	Typhoon		4		4		84		84		85		85
Canadian	Earthquake*	$	-	$	-	$	51	$	51	$	85	$	72

The United States/Caribbean Hurricane, United States Earthquake, and Canadian Earthquake net loss estimates above include the effects of a $50 million retrocessional cover purchased by the company effective July 1, 2013. This cover provides $50 million of protection per occurrence and in the aggregate for all natural perils in the United States, Caribbean Wind and Canadian Earthquake. In the case of multiple catastrophic loss events resulting in recoveries from this cover, a maximum of $50 million is recoverable across all three perils.

The Company has developed the estimates of losses expected from certain catastrophes for its portfolio of property, marine, workers’ compensation, personal accident contracts 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 -

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