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

Attached files

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8-K - PLATINUM UNDERWRITERS HOLDINGS LTD	firstquarter2014_8k.htm
EX-99.1 - PLATINUM UNDERWRITERS HOLDINGS LTD	earningsreleaseq1_2014.htm

Exhibit 99.2

Platinum Underwriters Holdings, Ltd.

Financial Supplement

March 31, 2014

(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, 2013. 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 14-17), 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 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 estimated 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 financial strength ratings; our ability to raise capital on acceptable terms if necessary; our exposure to credit loss from counterparties in the normal course of business; the availability and cost of collateral arrangements in order to provide reinsurance; 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 fluctuations; 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 effect of technology breaches or failures on our business; 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 of income, premium or other taxes on Platinum Underwriters Holdings, Ltd. or its subsidiaries by other jurisdictions; 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 non-compliance with laws, regulations and taxation on transactions with international counter-parties; 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, 2013.

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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
		Property and Marine Segment - by Quarter	15
		Casualty Segment - by Quarter	16
		Finite Risk Segment - by Quarter	17
		Net Premiums Written - Supplemental Information	18
		Premiums by Line of Business - Three Month Summary	19

		Investments:
		Investments	20
		Fixed Maturity Available-for-Sale Securities Detail	21
		Corporate Bonds Detail	22
		Municipal Bonds Detail	23
		Net Realized Gains (Losses) on Investments and Net Impairment Losses on Investments	24

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

		Exposures:
		Estimated Exposure to Peak Zone Property Catastrophe Losses	27

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Platinum Underwriters Holdings, Ltd.

Financial Highlights

March 31, 2014 and 2013

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

	Three Months Ended
	March 31,
	2014			2013
Highlights
Net premiums written	$	135,777		$	134,765
Net premiums earned		126,273			126,853
Underwriting income (1)		59,373			69,248
Net investment income		17,692			18,544
Net operating income (2)		64,119			74,914
Net realized gains (losses) on investments		(515	)		13,318
Net impairment losses on investments		(88	)		(421	)
Net income	$	63,735		$	86,516

Total assets	$	3,885,351		$	4,269,308
Investments and cash and cash equivalents		3,452,759			3,883,146
Total shareholders' equity		1,759,943			1,912,666
Unpaid losses and loss adjustment expenses	$	1,604,762		$	1,862,278

Per share data
Common shares outstanding - end of period		26,933			31,757
Weighted average common shares outstanding - basic		27,765			32,373
Adjusted weighted average common shares outstanding - diluted		28,109			32,838
Basic earnings per common share	$	2.30		$	2.67
Diluted earnings per common share		2.27			2.63
Operating income per common share - diluted (2)		2.28			2.28
Dividends per common share		0.08			0.08
Book value per common share (3)		65.35			60.23
Fully converted book value per common share (3)	$	63.87		$	58.76

(1)	See reconciliation of underwriting income on pages 14-17.

(2)	See computation of net operating income and net operating income per diluted 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)

	March 31,		December 31,		September 30,		June 30,		March 31,
	2014		2013		2013		2013		2013
Assets
Investments:
Fixed maturity securities	$	1,986,320	$	1,961,265	$	1,937,984	$	1,920,710	$	1,992,457
Short-term investments		53,469		66,679		73,635		77,636		104,443
Cash and cash equivalents		1,412,970		1,464,418		1,565,405		1,609,461		1,786,246
Accrued investment income		22,112		20,026		20,451		19,805		22,995
Reinsurance premiums receivable		142,643		138,454		133,769		133,360		124,590
Reinsurance balances (prepaid and recoverable)		2,687		2,089		8,645		5,464		4,701
Funds held by ceding companies		117,428		119,241		118,983		119,445		115,915
Deferred acquisition costs		33,213		31,103		32,378		30,173		28,789
Reinsurance deposit assets		81,004		79,303		78,179		76,948		52,088
Other assets		33,505		41,307		39,830		54,900		37,084
Total assets	$	3,885,351	$	3,923,885	$	4,009,259	$	4,047,902	$	4,269,308

Liabilities
Unpaid losses and loss adjustment expenses	$	1,604,762	$	1,671,365	$	1,758,056	$	1,793,087	$	1,862,278
Unearned premiums		136,272		126,300		130,488		123,590		119,537
Debt obligations		250,000		250,000		250,000		250,000		250,000
Commissions payable		79,748		78,791		75,018		72,994		67,667
Other liabilities		54,626		50,722		96,767		61,685		57,160
Total liabilities	$	2,125,408	$	2,177,178	$	2,310,329	$	2,301,356	$	2,356,642

Shareholders' Equity
Common shares	$	269	$	281	$	279	$	293	$	318
Additional paid-in capital		-		10,711		-		3,817		150,693
Accumulated other comprehensive income		74,559		48,084		57,390		64,367		131,103
Retained earnings		1,685,115		1,687,631		1,641,261		1,678,069		1,630,552
Total shareholders' equity	$	1,759,943	$	1,746,707	$	1,698,930	$	1,746,546	$	1,912,666

Total liabilities and shareholders' equity	$	3,885,351	$	3,923,885	$	4,009,259	$	4,047,902	$	4,269,308

Book value per common share (1)	$	65.35	$	62.07	$	60.87	$	59.67	$	60.23
Fully converted book value per common share (1)	$	63.87	$	60.64	$	59.26	$	58.28	$	58.76

(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
	March 31,
	2014			2013
Revenue
Net premiums earned	$	126,273		$	126,853
Net investment income		17,692			18,544
Net realized gains (losses) on investments		(515	)		13,318
Net impairment losses on investments		(88	)		(421	)
Other income		1,517			1,392
Total revenue		144,879			159,686

Expenses
Net losses and loss adjustment expenses		26,509			13,998
Net acquisition expenses		27,501			30,219
Operating expenses		18,283			19,305
Net foreign currency exchange losses (gains)		(187	)		(220	)
Interest expense		4,786			4,779
Total expenses		76,892			68,081
Income before income taxes		67,987			91,605
Income tax expense		4,252			5,089
Net income	$	63,735		$	86,516

Earnings Per Common Share
Weighted average common shares outstanding		27,765			32,373
Basic earnings per common share	$	2.30		$	2.67

Adjusted weighted average common shares outstanding		28,109			32,838
Diluted earnings per common share	$	2.27		$	2.63

Comprehensive income
Net income	$	63,735		$	86,516
Other comprehensive income (loss)		26,475			(6,587	)
Comprehensive income	$	90,210		$	79,929

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Platinum Underwriters Holdings, Ltd.

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

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

	Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2014			2013			2013			2013			2013
Revenue
Net premiums earned	$	126,273		$	148,267		$	135,360		$	142,933		$	126,853
Net investment income		17,692			17,936			17,758			17,808			18,544
Net realized gains (losses) on investments		(515	)		(778	)		(306	)		11,686			13,318
Net impairment losses on investments		(88	)		(31	)		(65	)		(1,516	)		(421	)
Other income (expense)		1,517			974			1,426			(315	)		1,392
Total revenue		144,879			166,368			154,173			170,596			159,686

Expenses
Net losses and loss adjustment expenses		26,509			46,639			44,142			62,667			13,998
Net acquisition expenses		27,501			32,560			30,675			30,313			30,219
Operating expenses		18,283			23,019			20,672			19,718			19,305
Net foreign currency exchange losses (gains)		(187	)		358			487			(859	)		(220	)
Interest expense		4,786			4,784			4,782			4,780			4,779
Total expenses		76,892			107,360			100,758			116,619			68,081
Income before income taxes		67,987			59,008			53,415			53,977			91,605
Income tax expense		4,252			10,385			15,130			4,123			5,089
Net income	$	63,735		$	48,623		$	38,285		$	49,854		$	86,516

Earnings Per Common Share
Weighted average common shares outstanding		27,765			28,097			28,655			30,571			32,373
Basic earnings per common share	$	2.30		$	1.73		$	1.34		$	1.63		$	2.67

Adjusted weighted average common shares outstanding		28,109			28,492			29,065			30,970			32,838
Diluted earnings per common share	$	2.27		$	1.71		$	1.32		$	1.61		$	2.63

Comprehensive income (loss)
Net income	$	63,735		$	48,623		$	38,285		$	49,854		$	86,516
Other comprehensive income (loss)		26,475			(9,306	)		(6,977	)		(66,736	)		(6,587	)
Comprehensive income (loss)	$	90,210		$	39,317		$	31,308		$	(16,882	)	$	79,929

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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
	March 31,
	2014		2013
Earnings
Basic and Diluted
Net income attributable to common shareholders	$	63,735	$	86,516
Portion allocated to participating common shareholders (1)		-		(189	)
Net income allocated to common shareholders	$	63,735	$	86,327

Common Shares
Basic
Weighted average common shares outstanding		27,765		32,373
Diluted
Weighted average common shares outstanding		27,765		32,373
Effect of dilutive securities:
Common share options		51		219
Restricted share units		293		246
Adjusted weighted average common shares outstanding		28,109		32,838

Earnings Per Common Share
Basic earnings per common share	$	2.30	$	2.67
Diluted earnings per common share	$	2.27	$	2.63

(1)	Represents earnings attributable to holders of unvested restricted shares issued under the Company's share incentive plan that are considered to be participating securities. All outstanding restricted shares vested in July 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
	March 31,		December 31,		September 30,			June 30,			March 31,
	2014		2013		2013			2013			2013
Earnings
Basic and Diluted
Net income attributable to common shareholders	$	63,735	$	48,623	$	38,285		$	49,854		$	86,516
Portion allocated to participating common shareholders (1)		-		-		(26	)		(113	)		(189	)
Net income allocated to common shareholders	$	63,735	$	48,623	$	38,259		$	49,741		$	86,327

Common Shares
Basic
Weighted average common shares outstanding		27,765		28,097		28,655			30,571			32,373
Diluted
Weighted average common shares outstanding		27,765		28,097		28,655			30,571			32,373
Effect of dilutive securities:
Common share options		51		71		131			155			219
Restricted share units		293		324		279			244			246
Adjusted weighted average common shares outstanding		28,109		28,492		29,065			30,970			32,838

Earnings Per Common Share
Basic earnings per common share	$	2.30	$	1.73	$	1.34		$	1.63		$	2.67
Diluted earnings per common share	$	2.27	$	1.71	$	1.32		$	1.61		$	2.63

(1)	Represents earnings attributable to holders of unvested restricted shares issued under the Company's share incentive plan that are considered to be participating securities. All outstanding restricted shares vested in July 2013.

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Platinum Underwriters Holdings, Ltd.

Condensed Consolidated Statements of Cash Flows

($ in thousands)

	Three Months Ended March 31,
	2014			2013
Net cash provided by (used in) operating activities	$	6,266		$	(12,558	)

Net cash provided by (used in) investing activities		18,220			146,734

Net cash provided by (used in) financing activities		(77,717	)		(63,514	)

Effect of foreign currency exchange rate changes		1,783			(4,811	)

Net increase (decrease) in cash and cash equivalents	$	(51,448	)	$	65,851

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Platinum Underwriters Holdings, Ltd.

Condensed Consolidated Statements of Cash Flows – by Quarter

($ in thousands)

	Three Months Ended
	March 31, 2014			December 31, 2013			September 30, 2013			June 30, 2013			March 31, 2013
Net cash provided by (used in) operating activities	$	6,266		$	(42,464	)	$	35,015		$	(36,555	)	$	(12,558	)

Net cash provided by (used in) investing activities		18,220			(62,878	)		(4,036	)		18,716			146,734

Net cash provided by (used in) financing activities		(77,717	)		6,209			(79,551	)		(151,496	)		(63,514	)

Effect of foreign currency exchange rate changes		1,783			(1,854	)		4,516			(7,450	)		(4,811	)

Net increase (decrease) in cash and cash equivalents	$	(51,448	)	$	(100,987	)	$	(44,056	)	$	(176,785	)	$	65,851

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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
	March 31,
	2014			2013
Net income attributable to common shareholders	$	63,735		$	86,516
Portion allocated to participating common shareholders (1)		-			(189	)
Net income allocated to common shareholders	$	63,735		$	86,327

Adjustments for:
Net realized (gains) losses on investments, net of tax	$	515		$	(11,623	)
Net impairment losses on investments, net of tax		88			388
Net foreign currency exchange losses (gains), net of tax		(219	)		(178	)
Net operating income (2)	$	64,119		$	74,914

Per diluted common share:
Net income	$	2.27		$	2.63
Adjustments for:
Net realized (gains) losses on investments		0.02			(0.35	)
Net impairment losses on investments		-			0.01
Net foreign currency exchange losses (gains)		(0.01	)		(0.01	)
Net operating income per diluted common share (3)	$	2.28		$	2.28

Adjusted weighted average common shares outstanding - diluted		28,109			32,838

(1)	Represents earnings attributable to holders of unvested restricted shares issued under the Company's share incentive plan that are considered to be participating securities. All outstanding restricted shares vested in July 2013.

(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
	March 31,		December 31,		September 30,		June 30,		March 31,
	2014		2013		2013		2013		2013
Key Ratios
Combined ratio (%)		53.0%		63.5%		65.5%		74.4%		45.4%
Investable assets to shareholders' equity ratio	2.0:1		2.0:1		2.1:1		2.1:1		2.0:1
Debt to total capital (%)		12.4%		12.5%		12.8%		12.5%		11.6%
Net premiums written (annualized) to shareholders' equity		0.31		0.34		0.32		0.34		0.28

Share Data
Book value per common share (1)	$	65.35	$	62.07	$	60.87	$	59.67	$	60.23
Common shares outstanding (000's)		26,933		28,143		27,910		29,268		31,757

Market Price Per Common Share
High	$	61.05	$	63.60	$	61.06	$	59.50	$	56.34
Low		55.03		57.84		56.63		54.06		46.24
Close	$	60.10	$	61.28	$	59.73	$	57.22	$	55.81

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		124		123		124		125

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

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Platinum Underwriters Holdings, Ltd.

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

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

	March 31,		December 31,		September 30,		June 30,		March 31,
	2014		2013		2013		2013		2013
Market price per share at period end	$	60.10	$	61.28	$	59.73	$	57.22	$	55.81

Shareholders' equity	$	1,759,943	$	1,746,707	$	1,698,930	$	1,746,546	$	1,912,666
Add: Proceeds from exercise of share options		4,994		4,994		13,225		13,539		20,303
Shareholders' equity - diluted	$	1,764,937	$	1,751,701	$	1,712,155	$	1,760,085	$	1,932,969

Basic common shares outstanding		26,933		28,143		27,910		29,268		31,757
Add: Common share options (1)		148		148		388		397		604
Add: Restricted share units		553		598		596		535		536
Diluted common shares outstanding		27,634		28,889		28,894		30,200		32,897

Book value per common share (2)
Book value per common share	$	65.35	$	62.07	$	60.87	$	59.67	$	60.23
Fully converted book value per common share	$	63.87	$	60.64	$	59.26	$	58.28	$	58.76

(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.

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Platinum Underwriters Holdings, Ltd.

Operating Segment Reporting – Three Month Summary

($ in thousands)

	Three Months Ended March 31, 2014												Three Months Ended March 31, 2013
	Property and Marine			Casualty			Finite Risk			Total			Property and Marine			Casualty			Finite Risk			Total
Net premiums written	$	57,745		$	71,674		$	6,358		$	135,777		$	59,427		$	70,844		$	4,494		$	134,765
Net premiums earned		53,192			65,717			7,364			126,273			51,852			70,795			4,206			126,853
Net losses and loss adjustment expenses		5,610			14,960			5,939			26,509			(14,205	)		29,643			(1,440	)		13,998
Net acquisition expenses		10,043			15,642			1,816			27,501			8,227			16,249			5,743			30,219
Other underwriting expenses		7,370			5,228			292			12,890			7,332			5,723			333			13,388
Segment underwriting income (loss)*	$	30,169		$	29,887		$	(683	)		59,373		$	50,498		$	19,180		$	(430	)		69,248

Net investment income											17,692												18,544
Net realized gains (losses) on investments											(515	)											13,318
Net impairment losses on investments											(88	)											(421	)
Other income											1,517												1,392
Corporate expenses not allocated to segments											(5,393	)											(5,917	)
Net foreign currency exchange (losses) gains											187												220
Interest expense											(4,786	)											(4,779	)
Income before income taxes										$	67,987											$	91,605

Underwriting ratios:*
Net loss and loss adjustment expense		10.5	%		22.8	%		80.6	%		21.0	%		(27.4	%)		41.9	%		(34.2	%)		11.0	%
Net acquisition expense		18.9	%		23.8	%		24.7	%		21.8	%		15.9	%		23.0	%		136.5	%		23.8	%
Other underwriting expense		13.9	%		8.0	%		4.0	%		10.2	%		14.1	%		8.1	%		7.9	%		10.6	%
Combined		43.3	%		54.6	%		109.3	%		53.0	%		2.6	%		73.0	%		110.2	%		45.4	%

Statutory underwriting ratios:*
Net loss and loss adjustment expense		10.5	%		22.8	%		80.6	%		21.0	%		(27.4	%)		41.9	%		(34.2	%)		11.0	%
Net acquisition expense		18.5	%		24.0	%		26.8	%		21.8	%		15.4	%		22.7	%		127.7	%		23.0	%
Other underwriting expense		12.8	%		7.3	%		4.6	%		9.5	%		12.3	%		8.1	%		7.4	%		9.9	%
Combined		41.8	%		54.1	%		112.0	%		52.3	%		0.3	%		72.7	%		100.9	%		43.9	%

* 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.

Property and Marine Segment – by Quarter

($ in thousands)

	Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2014			2013			2013			2013			2013
Net premiums written	$	57,745		$	53,561		$	59,169		$	57,350		$	59,427
Net premiums earned		53,192			56,199			55,127			58,832			51,852
Net losses and loss adjustment expenses		5,610			(1,005	)		28,339			21,292			(14,205	)
Net acquisition expenses		10,043			10,718			9,699			9,698			8,227
Other underwriting expenses		7,370			8,405			7,747			7,414			7,332
Segment underwriting income*	$	30,169		$	38,081		$	9,342		$	20,428		$	50,498

Underwriting ratios:*
Net loss and loss adjustment expense		10.5	%		(1.8	%)		51.4	%		36.2	%		(27.4	%)
Net acquisition expense		18.9	%		19.1	%		17.6	%		16.5	%		15.9	%
Other underwriting expense		13.9	%		15.0	%		14.1	%		12.6	%		14.1	%
Combined		43.3	%		32.3	%		83.1	%		65.3	%		2.6	%

Statutory underwriting ratios:*
Net loss and loss adjustment expense		10.5	%		(1.8	%)		51.4	%		36.2	%		(27.4	%)
Net acquisition expense		18.5	%		16.8	%		20.6	%		17.3	%		15.4	%
Other underwriting expense		12.8	%		15.7	%		13.1	%		12.9	%		12.3	%
Combined		41.8	%		30.7	%		85.1	%		66.4	%		0.3	%

* 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.

Casualty Segment – by Quarter

($ in thousands)

	Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2014			2013			2013			2013			2013
Net premiums written	$	71,674		$	75,121		$	69,992		$	79,711		$	70,844
Net premiums earned		65,717			78,921			72,543			75,629			70,795
Net losses and loss adjustment expenses		14,960			40,645			10,242			35,358			29,643
Net acquisition expenses		15,642			18,264			19,067			18,068			16,249
Other underwriting expenses		5,228			6,029			5,727			5,670			5,723
Segment underwriting income*	$	29,887		$	13,983		$	37,507		$	16,533		$	19,180

Underwriting ratios:*
Net loss and loss adjustment expense		22.8	%		51.5	%		14.1	%		46.8	%		41.9	%
Net acquisition expense		23.8	%		23.1	%		26.3	%		23.9	%		23.0	%
Other underwriting expense		8.0	%		7.6	%		7.9	%		7.5	%		8.1	%
Combined		54.6	%		82.2	%		48.3	%		78.2	%		73.0	%

Statutory underwriting ratios:*
Net loss and loss adjustment expense		22.8	%		51.5	%		14.1	%		46.8	%		41.9	%
Net acquisition expense		24.0	%		23.1	%		26.5	%		23.9	%		22.7	%
Other underwriting expense		7.3	%		8.0	%		8.2	%		7.1	%		8.1	%
Combined		54.1	%		82.6	%		48.8	%		77.8	%		72.7	%

* 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.

Finite Risk Segment – by Quarter

($ in thousands)

	Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2014			2013			2013			2013			2013
Net premiums written	$	6,358		$	19,406		$	8,737		$	9,309		$	4,494
Net premiums earned		7,364			13,147			7,690			8,472			4,206
Net losses and loss adjustment expenses		5,939			6,999			5,561			6,017			(1,440	)
Net acquisition expenses		1,816			3,578			1,909			2,547			5,743
Other underwriting expenses		292			437			342			327			333
Segment underwriting income (loss)*	$	(683	)	$	2,133		$	(122	)	$	(419	)	$	(430	)

Underwriting ratios:*
Net loss and loss adjustment expense		80.6	%		53.2	%		72.3	%		71.0	%		(34.2	%)
Net acquisition expense		24.7	%		27.2	%		24.8	%		30.1	%		136.5	%
Other underwriting expense		4.0	%		3.3	%		4.4	%		3.9	%		7.9	%
Combined		109.3	%		83.7	%		101.5	%		105.0	%		110.2	%

Statutory underwriting ratios:*
Net loss and loss adjustment expense		80.6	%		53.2	%		72.3	%		71.0	%		(34.2	%)
Net acquisition expense		26.8	%		25.1	%		23.4	%		28.7	%		127.7	%
Other underwriting expense		4.6	%		2.3	%		3.9	%		3.5	%		7.4	%
Combined		112.0	%		80.6	%		99.6	%		103.2	%		100.9	%

* 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.

- 17 -

Platinum Underwriters Holdings, Ltd.

Net Premiums Written – Supplemental Information

($ in thousands)

	Three Months Ended
	March 31,
	2014			2013
Property and Marine
Excess-of-Loss	$	41,082		$	48,083
Proportional		16,663			11,344
Subtotal Property and Marine		57,745			59,427
Casualty
Excess-of-Loss		59,330			55,356
Proportional		12,344			15,488
Subtotal Casualty		71,674			70,844
Finite Risk
Excess-of-Loss		(7	)		-
Proportional		6,365			4,494
Subtotal Finite Risk		6,358			4,494
Combined Segments
Excess-of-Loss		100,405			103,439
Proportional		35,372			31,326
Total	$	135,777		$	134,765

	Three Months Ended
	March 31,
		2014			2013
Property and Marine
United States	$	34,270		$	32,105
International		23,475			27,322
Subtotal Property and Marine		57,745			59,427
Casualty
United States		64,016			64,792
International		7,658			6,052
Subtotal Casualty		71,674			70,844
Finite Risk
United States		6,358			4,494
International		-			-
Subtotal Finite Risk		6,358			4,494
Combined Segments
United States		104,644			101,391
International		31,133			33,374
Total	$	135,777		$	134,765

- 18 -

Platinum Underwriters Holdings, Ltd.

Premiums by Line of Business – Three Month Summary

($ in thousands)

	Three Months Ended March 31, 2014									Three Months Ended March 31, 2013
	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	$	9,613		$	9,613		$	8,953		$	4,238	$	4,238	$	4,334
North American Property Catastrophe		17,171			17,171			16,821			18,134		18,134		18,140
North American Property Risk		6,866			6,866			6,947			7,520		7,470		7,358
Other Property, including Crop		1,734			1,734			1,774			3,106		3,106		3,027
Marine / Aviation Proportional		2,128			2,128			2,457			1,923		1,923		1,182
Marine / Aviation Excess		921			921			865			533		533		557
International Property Proportional		4,335			4,335			4,259			4,302		4,302		4,062
International Property Catastrophe		14,581			13,057			9,351			17,152		17,152		10,785
International Property Risk		1,920			1,920			1,765			2,569		2,569		2,407
Subtotal		59,269			57,745			53,192			59,477		59,427		51,852

Casualty
1st Dollar GL		289			289			1,224			1,719		1,719		1,838
1st Dollar Other		1,607			1,607			2,022			4,313		4,313		4,072
Casualty Excess		42,361			42,361			37,082			42,408		42,408		42,884
Accident & Health		17,847			16,869			13,553			13,665		13,256		12,766
Clash		1,643			1,643			1,618			1,962		1,962		1,822
International Casualty		5,167			5,167			6,306			2,792		2,792		2,889
International Motor		520			520			446			656		656		539
Financial Lines		3,218			3,218			3,466			3,738		3,738		3,985
Subtotal		72,652			71,674			65,717			71,253		70,844		70,795

Finite Risk
Finite Property		(7	)		(7	)		(7	)		-		-		-
Finite Casualty		6,365			6,365			7,371			4,494		4,494		4,206
Subtotal		6,358			6,358			7,364			4,494		4,494		4,206

Total	$	138,279		$	135,777		$	126,273		$	135,224	$	134,765	$	126,853

- 19 -

Platinum Underwriters Holdings, Ltd.

Investments

($ in thousands)

	March 31, 2014								December 31, 2013
	Fair Value		Book Yield			Market Yield			Fair Value		Book Yield			Market Yield
Fixed maturity available-for-sale securities:
U.S. Government	$	4,724		2.8	%		0.3	%	$	4,765		2.8	%		0.3	%
U.S. Government agencies		81,909		2.9	%		2.8	%		51,122		2.7	%		3.0	%
Municipal bonds		1,275,585		3.8	%		2.4	%		1,269,247		3.8	%		2.7	%
Non-U.S. governments		40,501		1.2	%		0.6	%		40,514		1.2	%		0.6	%
Corporate bonds		228,414		4.2	%		3.4	%		227,235		4.3	%		3.7	%
Commercial mortgage-backed securities		71,154		5.9	%		2.5	%		77,491		5.7	%		2.3	%
Residential mortgage-backed securities		162,741		1.5	%		1.2	%		169,965		1.5	%		1.3	%
Asset-backed securities		18,164		4.8	%		2.7	%		17,531		4.9	%		2.4	%
Total fixed maturity available-for-sale securities	$	1,883,192		3.6	%		2.4	%	$	1,857,870		3.6	%		2.6	%

Fixed maturity trading securities:
Non-U.S. governments	$	103,128		3.5	%		0.5	%	$	103,395		3.5	%		0.6	%
Total fixed maturity trading securities	$	103,128		3.5	%		0.5	%	$	103,395		3.5	%		0.6	%

Short-term investments	$	53,469		2.7	%		2.7	%	$	66,679		2.4	%		2.4	%

	March 31, 2014								December 31, 2013
Credit quality of investments*	Fair Value		% of Total						Fair Value		% of Total
Aaa	$	603,201		29.6	%				$	628,265		31.0	%
Aa		857,063		42.0	%					806,282		39.8	%
A		355,069		17.4	%					359,803		17.7	%
Baa		189,844		9.3	%					200,437		9.9	%
Below investment grade		34,612		1.7	%					33,157		1.6	%
Total	$	2,039,789		100.0	%				$	2,027,944		100.0	%

Portfolio information**
Investable Assets	$3.5 billion								$3.5 billion
Credit Quality	Aa2								Aa2
Book Yield		2.1%								2.1%
Duration	2.6 yrs								2.6 yrs

Rated using external rating agencies (primarily Moody’s) including credit enhancements from insurance entities. As of March 31, 2014, there were approximately $13.0 million and $4.5 million of municipal bonds for which 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)

- 20 -

Platinum Underwriters Holdings, Ltd.

Fixed Maturity Available-for-Sale Securities Detail

($ in thousands)

	March 31, 2014
	Fair Value		Net Unrealized Gain (Loss)			Credit Quality		Duration		Weighted Average Life
Fixed maturity available-for-sale securities:
U.S. Government	$	4,724	$	180		Aaa			1.5
U.S. Government agencies		81,909		502		Aaa			6.1
Municipal bonds:
State general obligation bonds		891,557		51,005		Aa2			5.6
Essential service bonds*		189,200		9,037		Aa3			3.9
State income tax and sales tax bonds		70,464		5,939		Aa2			6.4
Other municipal bonds		68,906		2,419		Aa2			4.5
Pre-refunded bonds		55,458		2,938		Aa2			1.7
Subtotal		1,275,585		71,338		Aa2			5.2
Non-U.S. governments		40,501		526		Aa1			1.1
Corporate bonds:
Industrial		147,857		4,389		Baa2			5.3
Utilities		58,606		1,290			A3		6.2
Insurance		21,951		2,004		Baa2			6.2
Subtotal		228,414		7,683		Baa1			5.6
Commercial mortgage-backed securities		71,154		4,593			A1		1.9		2.1
Residential mortgage-backed securities:
U.S. Government agency residential mortgage-backed securities		146,770		942		Aaa			1.5		5.9
Non-agency residential mortgage-backed securities		15,971		(308	)	Caa2			1.1		6.7
Subtotal		162,741		634		Aa2			1.4		6.0
Asset-backed securities:
Asset-backed securities		13,375		(225	)	Aaa			-		5.2
Sub-prime asset-backed securities		4,789		2,203			C		0.2		10.1
Subtotal		18,164		1,978			A2		0.1		6.5
Total	$	1,883,192	$	87,434		Aa3			4.7

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

- 21 -

Platinum Underwriters Holdings, Ltd.

Corporate Bonds Detail

($ in thousands)

	March 31, 2014
	Par Value		Fair Value		Net Unrealized Gain (Loss)			Credit Quality
Top 20 Holdings
American Electric Power Company, Inc.	$	12,500	$	12,904	$	417			A3
Mattel, Inc.		10,000		10,512		410		Baa1
Entergy Corporation		9,800		9,964		160			A3
Anglo American plc		8,000		9,395		484		Baa2
FirstEnergy Corp.		7,000		7,520		522		Baa2
Loews Corporation		6,000		7,260		1,251		Baa2
Teck Resources Limited		6,750		6,791		70		Baa2
Southern Company		6,625		6,431		(185	)		A3
Newmont Mining Corporation		7,000		6,350		(607	)	Baa1
ArcelorMittal		5,000		6,343		359		Ba1
Hess Corporation		5,000		6,201		493		Baa2
Northeast Utilities		5,700		5,848		(29	)		A3
Southwestern Energy Company		5,300		5,439		127		Baa3
Grupo Mexico, S.A.B de C.V.		5,000		5,397		379		Baa2
Berkshire Hathaway Inc.		5,375		5,374		3			A1
Joy Global Inc.		5,000		5,321		293		Baa2
Lowe’s Companies, Inc.		5,000		5,268		250			A3
Noble Energy, Inc.		5,000		5,257		240		Baa2
Encana Corporation		5,000		5,127		120		Baa2
FMC Corporation	$	5,000	$	5,103	$	112		Baa1

- 22 -

Platinum Underwriters Holdings, Ltd.

Municipal Bonds Detail

($ in thousands)

	March 31, 2014
	Par Value		Fair Value			Net Unrealized Gain (Loss)		Credit Quality
Top 10 Exposures by Jurisdiction
Pennsylvania	$	131,911	$	145,614		$	8,328	Aa2
Illinois		122,500		128,712			4,553		A3
Connecticut		99,620		105,921			5,067	Aa3
California		90,235		103,044			10,009		A1
Massachusetts		72,425		77,124			3,760	Aa2
Texas		70,075		76,461			4,710	Aaa
Maryland		46,180		53,302			1,815	Aaa
New Jersey		48,675		50,946			131		A2
New York		44,500		48,775			4,138	Aa2
Mississippi	$	42,905	$	45,007		$	1,519	Aa2

	March 31, 2014
	Par Value		Fair Value			Net Unrealized Gain (Loss)		Credit Quality
Top 10 Holdings by Issuer
State of Pennsylvania	$	96,700	$	107,941		$	6,471	Aa2
State of Illinois		102,000		107,524			3,976		A3
State of Connecticut		99,620		105,921			5,067	Aa3
State of California		88,235		100,935			9,917		A1
State of Massachusetts		59,010		62,458			2,509	Aa1
State of Texas		50,145		55,347			3,441	Aaa
State of Maryland		38,180		45,040			1,580	Aaa
State of Mississippi		42,905		45,007			1,519	Aa2
State of Hawaii		35,000		40,383			5,271	Aa2
State of Arkansas	$	30,000	$	33,994		$	964	Aa1

	March 31, 2014
	Fair Value		% of Total
Credit quality of municipal bond portfolio*
Aaa	$	209,733		16.4	%
Aa		753,425		59.1	%
A		303,515		23.8	%
Baa		7,829		0.6	%
Below investment grade		1,083		0.1	%
Total	$	1,275,585		100.0	%

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

- 23 -

Platinum Underwriters Holdings, Ltd.

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

($ in thousands)

	Three Months Ended
	March 31,
	2014			2013
Net realized gains (losses) on investments by entity:
Subsidiary domiciled in Bermuda	$	(515	)	$	8,474
Subsidiaries domiciled in the United States		-			4,844
Total	$	(515	)	$	13,318

Net realized gains (losses) on investments by type:
Sale of securities	$	-		$	14,276
Fair value adjustments on trading securities		(515	)		(958	)
Total	$	(515	)	$	13,318

Net impairment losses on investments by entity:
Subsidiary domiciled in Bermuda	$	88		$	328
Subsidiaries domiciled in the United States		-			93
Total	$	88		$	421

Net impairment losses on investments by type of security:
Non-agency residential mortgage-backed securities	$	88		$	336
Sub-prime asset-backed securities		-			85
Total	$	88		$	421

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Platinum Underwriters Holdings, Ltd.

Analysis of Losses and Loss Adjustment Expenses

($ in thousands)

	Analysis of Losses and Loss Adjustment Expenses
	Three Months Ended March 31, 2014											Twelve Months Ended December 31, 2013
	Gross			Ceded		Net			Paid to Incurred %			Gross			Ceded			Net			Paid to Incurred %
Paid losses and loss adjustment expenses	$	97,923		$	-	$	97,923			369.4	%	$	444,890		$	(476	)	$	445,366			266.0	%
Change in unpaid losses and loss adjustment expenses		(71,160	)		254		(71,414	)					(280,325	)		(2,405	)		(277,920	)
Losses and loss adjustment expenses	$	26,763		$	254	$	26,509					$	164,565		$	(2,881	)	$	167,446

	Analysis of Unpaid Losses and Loss Adjustment Expenses
	As of March 31, 2014 (1)											As of December 31, 2013 (2)
	Gross			Ceded		Net			%			Gross			Ceded			Net			%
Outstanding losses and loss adjustment expenses	$	673,794		$	1,001	$	672,793			42.0	%	$	683,430		$	1,001		$	682,429			40.9	%
Incurred but not reported		930,968			446		930,522			58.0	%		987,935			193			987,742			59.1	%
Unpaid losses and loss adjustment expenses	$	1,604,762		$	1,447	$	1,603,315			100.0	%	$	1,671,365		$	1,194		$	1,670,171			100.0	%

(1)	Net unpaid losses and loss adjustment expenses include the effects of foreign currency exchange rate losses of $4,558 for the three months ended March 31, 2014.

(2)	Net unpaid losses and loss adjustment expenses include the effects of foreign currency exchange rate gains of $9,594 for the twelve months ended December 31, 2013.

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Platinum Underwriters Holdings, Ltd.

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

($ in thousands)

	Three Months Ended March 31, 2014											Three Months Ended March 31, 2013
	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	$	4,118		$	32,603	$	(239	)	$	36,482		$	14,504		$	23,583	$	4,862		$	42,949
Net premium adjustments related to prior years' losses		10			863		-			873			53			124		-			177
Net commission adjustments related to prior years' losses		125			119		(378	)		(134	)		170			673		(4,886	)		(4,043	)
Net favorable (unfavorable) development		4,253			33,585		(617	)		37,221			14,727			24,380		(24	)		39,083

Major Catastrophe Favorable (Unfavorable) Development
Net loss development related to prior years		9,746			-		20			9,766			17,089			29		-			17,118
Net premium adjustments related to prior years' losses		(12	)		-		(7	)		(19	)		(1,680	)		-		-			(1,680	)
Net commission adjustments related to prior years' losses		(4	)		-		-			(4	)		(23	)		-		-			(23	)
Net favorable (unfavorable) development		9,730			-		13			9,743			15,386			29		-			15,415

Total net favorable (unfavorable) development	$	13,983		$	33,585	$	(604	)	$	46,964		$	30,113		$	24,409	$	(24	)	$	54,498

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Platinum Underwriters Holdings, Ltd.

Estimated Exposure to Peak Zone Property Catastrophe Losses

As of April 1, 2014

($ 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	$	97	$	95	$	194	$	181	$	236	$	220
United States	Earthquake		28		28		110		110		151		151
Pan-European	Windstorm		55		55		135		135		163		163
Japanese	Earthquake		8		8		144		144		174		174
Japanese	Typhoon		14		14		65		65		75		75
Canadian	Earthquake	$	-	$	-	$	33	$	33	$	56	$	56

The Company has developed the estimates of losses expected from certain catastrophes for its portfolio of property, marine, workers’ compensation and 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.

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