Exhibit 99.2
Financial Supplement
Financial Information
as of March 31, 2005
(UNAUDITED)
To assist in your understanding of the Company, the following supplement of information
concerning Platinum Underwriters Holdings, Ltd. is provided.
This report is for informational purposes only. It should be read in conjunction with
documents filed by Platinum Underwriters Holdings, Ltd. with the SEC, including
the Company’s Annual Report on Form 10-K and Quarterly Report on Form 10-Q.
Our Investors Relations Department can be reached at (441) 298-0753.
Platinum Underwriters Holdings, Ltd.
Overview
March 31, 2005
Address:
Platinum Underwriters Holdings, Ltd.
The Belvedere Building
69 Pitts Bay Road
Pembroke HM 08
Bermuda
Investor Information:
Justin Cressall
Senior Vice President and Treasurer
Tel: (441) 298-0753
Fax: (441) 296-0528
Website:
www.platinumre.com
Publicly Traded Securities:
Common Shares (NYSE:PTP)
Equity Security Units (NYSE:PTP Pr M)
Page 1 of 20
Platinum Underwriters Holdings, Ltd.
Table of Contents
March 31, 2005
Section: | Page: | |||
Balance Sheet: | ||||
a. Condensed Consolidated Balance Sheets | 3 | |||
Income Statement: | ||||
a. Consolidated Statements of Income and Comprehensive Income — Summary | 4 | |||
b. Consolidated Statements of Income and Comprehensive Income — by Quarter | 5 | |||
Earnings and Book Value Per Share Analysis | ||||
a. Computation of Basic and Diluted Earnings Per Share — Summary | 6 | |||
b. Computation of Basic and Diluted Earnings Per Share — by Quarter | 7 | |||
c. Fully Converted Book Value Per Share | 8 | |||
Cash Flow Statement: | ||||
a. Condensed Statements of Cash Flows — Summary | 9 | |||
b. Condensed Statements of Cash Flows — by Quarter | 10 | |||
Segment Data: | ||||
a. Segment Reporting — Summary | 11 | |||
b. Property and Marine Segment — by Quarter | 12 | |||
c. Casualty Segment — by Quarter | 13 | |||
d. Finite Risk Segment — by Quarter | 14 | |||
Net Premiums Written Data: | ||||
a. Net Premiums Written — Supplemental Information | 15 | |||
b. Premiums by Line of Business | 16 | |||
Other Company Data: | ||||
a. Company Ratios, Share Data, Ratings | 17 | |||
Investments: | ||||
a. Investment Portfolio | 18 | |||
b. Investment Portfolio — Net Realized Capital Gains (Losses) | 19 | |||
Loss Reserves: | ||||
a. Loss Analysis | 20 |
Page 2 of 20
Platinum Underwriters Holdings, Ltd.
Condensed Consolidated Balance Sheets
March 31, 2005
(amounts in thousands, except per share amounts)
March 31, 2005 | December 31, 2004 | September 30, 2004 | June 30, 2004 | March 31, 2004 | ||||||||||||||||
Assets | ||||||||||||||||||||
Investments and cash and cash equivalents | $ | 2,584,928 | 2,456,868 | 2,374,310 | 2,154,389 | $ | 2,027,093 | |||||||||||||
Receivables | 638,283 | 580,048 | 638,463 | 549,732 | 643,970 | |||||||||||||||
Accrued investment income | 27,127 | 23,663 | 26,613 | 20,707 | 22,805 | |||||||||||||||
Reinsurance balances (prepaid and recoverable) | 15,783 | 4,892 | 5,176 | 10,739 | 17,430 | |||||||||||||||
Deferred acquisition costs | 149,555 | 136,038 | 142,000 | 122,146 | 115,924 | |||||||||||||||
Funds held | 222,791 | 198,048 | 85,780 | 81,262 | 71,263 | |||||||||||||||
Other assets | 26,049 | 22,438 | 21,971 | 19,055 | 9,259 | |||||||||||||||
Total assets | $ | 3,664,516 | 3,421,995 | 3,294,313 | 2,958,030 | $ | 2,907,744 | |||||||||||||
Liabilities | ||||||||||||||||||||
Unpaid losses and loss adjustment expenses | $ | 1,507,158 | 1,380,955 | 1,222,364 | 896,449 | $ | 835,734 | |||||||||||||
Unearned premiums | 589,795 | 502,423 | 537,251 | 483,773 | 471,359 | |||||||||||||||
Debt obligations | 137,500 | 137,500 | 137,500 | 137,500 | 137,500 | |||||||||||||||
Commissions payable | 172,224 | 181,925 | 220,902 | 207,306 | 228,964 | |||||||||||||||
Other liabilities | 84,763 | 86,189 | 87,767 | 95,310 | 91,170 | |||||||||||||||
Total liabilities | 2,491,440 | 2,288,992 | 2,205,784 | 1,820,338 | 1,764,727 | |||||||||||||||
Total shareholders’ equity | 1,173,076 | 1,133,003 | 1,088,529 | 1,137,692 | 1,143,017 | |||||||||||||||
Total liabilities and shareholders’ equity | $ | 3,664,516 | 3,421,995 | 3,294,313 | 2,958,030 | $ | 2,907,744 | |||||||||||||
Book value per share | $ | 27.12 | 26.30 | 25.30 | 26.29 | $ | 26.42 | |||||||||||||
Page 3 of 20
Platinum Underwriters Holdings, Ltd. | ||||||||||
Consolidated Statements of Income and Comprehensive Income - Summary | ||||||||||
(amounts in thousands, except per share amounts) |
Three Months Ended | ||||||||
March 31, 2005 | March 31, 2004 | |||||||
Revenues | ||||||||
Net premiums earned | $ | 411,040 | $ | 321,042 | ||||
Net investment income | 26,905 | 17,484 | ||||||
Net realized capital gains | 372 | 452 | ||||||
Other income (loss) | (356 | ) | 511 | |||||
Total revenues | 437,961 | 339,489 | ||||||
Expenses | ||||||||
Losses and loss adjustment expenses | 237,698 | 161,969 | ||||||
Acquisition expenses | 93,249 | 88,921 | ||||||
Other underwriting expenses | 16,607 | 15,804 | ||||||
Corporate expenses | 3,401 | 2,970 | ||||||
Net foreign currency exchange losses (gains) | 1,798 | (866 | ) | |||||
Interest expense | 2,173 | 2,306 | ||||||
Total expenses | 354,926 | 271,104 | ||||||
Income before income tax expense | 83,035 | 68,385 | ||||||
Income tax expense | 9,947 | 13,571 | ||||||
Net income | $ | 73,088 | $ | 54,814 | ||||
Basic | ||||||||
Weighted average shares outstanding | 43,163 | 43,143 | ||||||
Basic earnings per share | $ | 1.69 | $ | 1.27 | ||||
Diluted | ||||||||
Weighted average shares outstanding | 50,032 | 50,984 | ||||||
Diluted earnings per share | $ | 1.49 | $ | 1.10 | ||||
Comprehensive income | ||||||||
Net income | $ | 73,088 | $ | 54,814 | ||||
Other comprehensive income (loss), net of tax | (34,620 | ) | 19,144 | |||||
Comprehensive income | $ | 38,468 | $ | 73,958 | ||||
Page 4 of 20
Platinum Underwriters Holdings, Ltd.
Consolidated Statements of Income and Comprehensive Income — by Quarter
(amounts in thousands, except per share amounts)
Three Months Ended | ||||||||||||||||||||
March 31, 2005 | December 31, 2004 | September 30, 2004 | June 30, 2004 | March 31, 2004 | ||||||||||||||||
Revenues | ||||||||||||||||||||
Net premiums earned | $ | 411,040 | 432,936 | 383,090 | 310,867 | $ | 321,042 | |||||||||||||
Net investment income | 26,905 | 26,242 | 21,429 | 19,377 | 17,484 | |||||||||||||||
Net realized capital gains (losses) | 372 | 520 | 2,262 | (1,279 | ) | 452 | ||||||||||||||
Other income (loss) | (356 | ) | 1,074 | 1,021 | 605 | 511 | ||||||||||||||
Total revenues | 437,961 | 460,772 | 407,802 | 329,570 | 339,489 | |||||||||||||||
Expenses | ||||||||||||||||||||
Losses and loss adjustment expenses | 237,698 | 283,645 | 384,724 | 189,466 | 161,969 | |||||||||||||||
Acquisition expenses | 93,249 | 94,935 | 81,271 | 62,694 | 88,921 | |||||||||||||||
Other underwriting expenses | 16,607 | 10,053 | 12,234 | 15,045 | 15,804 | |||||||||||||||
Corporate expenses | 3,401 | 2,844 | 3,166 | 4,217 | 2,970 | |||||||||||||||
Net foreign currency exchange losses (gains) | 1,798 | (399 | ) | (628 | ) | 1,168 | (866 | ) | ||||||||||||
Interest expense | 2,173 | 2,316 | 2,322 | 2,324 | 2,306 | |||||||||||||||
Total expenses | 354,926 | 393,394 | 483,089 | 274,914 | 271,104 | |||||||||||||||
Income (loss) before income tax expense (benefit) | 83,035 | 67,378 | (75,287 | ) | 54,656 | 68,385 | ||||||||||||||
Income tax expense (benefit) | 9,947 | 17,456 | (5,535 | ) | 4,857 | 13,571 | ||||||||||||||
Net income (loss) | $ | 73,088 | 49,922 | (69,752 | ) | 49,799 | $ | 54,814 | ||||||||||||
Basic | ||||||||||||||||||||
Weighted average shares outstanding | 43,163 | 43,073 | 43,127 | 43,290 | 43,143 | |||||||||||||||
Basic earnings per share | $ | 1.69 | 1.16 | (1.62 | ) | 1.15 | $ | 1.27 | ||||||||||||
Diluted | ||||||||||||||||||||
Weighted average shares outstanding | 50,032 | 49,819 | 43,127 | 50,788 | 50,984 | |||||||||||||||
Diluted earnings per share | $ | 1.49 | 1.03 | (1.62 | ) | 1.01 | $ | 1.10 | ||||||||||||
Comprehensive income (loss) | ||||||||||||||||||||
Net income (loss) | $ | 73,088 | 49,922 | (69,752 | ) | 49,799 | $ | 54,814 | ||||||||||||
Other comprehensive income (loss), net of tax | (34,620 | ) | (4,193 | ) | 31,007 | (52,479 | ) | 19,144 | ||||||||||||
Comprehensive income (loss) | $ | 38,468 | 45,729 | (38,745 | ) | (2,680 | ) | $ | 73,958 | |||||||||||
Page 5 of 20
Platinum Underwriters Holdings, Ltd.
Computation of Basic and Diluted Earnings Per Share — Summary
(amounts in thousands, except per share amounts)
Three Months Ended | ||||||||
March 31, 2005 | March 31, 2004 | |||||||
Earnings: | ||||||||
Basic: | ||||||||
Net income | $ | 73,088 | $ | 54,814 | ||||
Net income available to common shareholders | 73,088 | 54,814 | ||||||
Diluted: | ||||||||
Net income | 73,088 | 54,814 | ||||||
Effect of dilutive securities: | ||||||||
Equity security units | 1,423 | 1,522 | ||||||
Net income available to common shareholders | $ | 74,511 | $ | 56,336 | ||||
Common Shares: | ||||||||
Basic: | ||||||||
Weighted average shares outstanding | 43,163 | 43,143 | ||||||
Diluted: | ||||||||
Weighted average shares outstanding | 43,163 | 43,143 | ||||||
Effect of dilutive securities: | ||||||||
Share options | 1,838 | 2,759 | ||||||
Equity security units | 5,009 | 5,009 | ||||||
Restricted stock units | 22 | 73 | ||||||
Weighted average, as adjusted | 50,032 | 50,984 | ||||||
Earnings Per Share: | ||||||||
Basic | $ | 1.69 | $ | 1.27 | ||||
Diluted | $ | 1.49 | $ | 1.10 | ||||
Page 6 of 20
Platinum Underwriters Holdings, Ltd.
Computation of Basic and Diluted Earnings Per Share — by Quarter
(amounts in thousands, except per share amounts)
Three Months Ended | ||||||||||||||||||||
March 31, 2005 | December 31, 2004 | September 30, 2004 | June 30, 2004 | March 31, 2004 | ||||||||||||||||
Earnings: | ||||||||||||||||||||
Basic: | ||||||||||||||||||||
Net income (loss) | $ | 73,088 | 49,922 | (69,752 | ) | 49,799 | $ | 54,814 | ||||||||||||
Net income (loss) available to common shareholders | 73,088 | 49,922 | (69,752 | ) | 49,799 | 54,814 | ||||||||||||||
Diluted: | �� | |||||||||||||||||||
Net income (loss) | 73,088 | 49,922 | (69,752 | ) | 49,799 | 54,814 | ||||||||||||||
Effect of dilutive securities: | ||||||||||||||||||||
Equity security units | 1,423 | 1,519 | — | 1,530 | 1,522 | |||||||||||||||
Net income (loss) available to common shareholders | $ | 74,511 | 51,441 | (69,752 | ) | 51,329 | $ | 56,336 | ||||||||||||
Common Shares: | ||||||||||||||||||||
Basic: | ||||||||||||||||||||
Weighted average shares outstanding | 43,163 | 43,073 | 43,127 | 43,290 | 43,143 | |||||||||||||||
Diluted: | ||||||||||||||||||||
Weighted average shares outstanding | 43,163 | 43,073 | 43,127 | 43,290 | 43,143 | |||||||||||||||
Effect of dilutive securities: | ||||||||||||||||||||
Share options | 1,838 | 1,721 | — | 2,416 | 2,759 | |||||||||||||||
Equity security units | 5,009 | 5,009 | — | 5,009 | 5,009 | |||||||||||||||
Restricted stock units | 22 | 16 | — | 73 | 73 | |||||||||||||||
Weighted average, as adjusted | 50,032 | 49,819 | 43,127 | 50,788 | 50,984 | |||||||||||||||
Earnings Per Share: | ||||||||||||||||||||
Basic | $ | 1.69 | 1.16 | (1.62 | ) | 1.15 | $ | 1.27 | ||||||||||||
Diluted | $ | 1.49 | 1.03 | (1.62 | ) | 1.01 | $ | 1.10 | ||||||||||||
Page 7 of 20
Platinum Underwriters Holdings, Ltd.
Fully Converted Book Value per Share
March 31, 2005
Conversion | Conversion | |||||||||||||||
Multiple / | Amount | Shares | Book Value | |||||||||||||
Strike Price | ($000) | (000) | Per Share | |||||||||||||
Book value as of March 31, 2005 | $ | 1,173,076 | 43,254 | $ | 27.12 | |||||||||||
Equity Security Units: | ||||||||||||||||
Ratio of conversion to common shares when common share market value is greater than $27.45 per share | 0.9107 | 137,500 | 5,009 | 0.03 | ||||||||||||
Share options: | ||||||||||||||||
Shareholder share options: | ||||||||||||||||
St. Paul Travelers | 27.00 | — | 549 | (0.28 | ) | |||||||||||
RenaissanceRe | 27.00 | — | 229 | (0.12 | ) | |||||||||||
Management options(a) | 23.00 | (b) | 92,821 | 4,036 | (0.31 | ) | ||||||||||
Directors’ and officers’ share units | — | 235 | (0.12 | ) | ||||||||||||
Fully converted book value as of March 31, 2005 | $ | 1,403,397 | 53,312 | $ | 26.32 | |||||||||||
(a) | Excludes 419,218 options with a weighted average strike price of $32.39 | |
(b) | Weighted average strike price of options with a price below $29.70, the closing share price at March 31, 2005. |
Page 8 of 20
Platinum Underwriters Holdings, Ltd.
Condensed Statements of Cash Flows — Summary
($ in thousands)
Three Months Ended | ||||||||
March 31, 2005 | March 31, 2004 | |||||||
Net cash provided by operations | $ | 179,648 | $ | 220,715 | ||||
Net cash used in investing activities | (89,838 | ) | (128,005 | ) | ||||
Net cash provided byfinancing activities | 310 | 1,352 | ||||||
Net increase in cash and cash equivalents | $ | 90,120 | $ | 94,062 | ||||
Page 9 of 20
Platinum Underwriters Holdings, Ltd.
Condensed Statements of Cash Flows — by Quarter
($ in thousands)
Three Months Ended | ||||||||||||||||||||
March 31, 2005 | December 31, 2004 | September 30, 2004 | June 30, 2004 | March 31, 2004 | ||||||||||||||||
Net cash provided by operations | $ | 179,648 | 91,563 | 186,228 | 216,227 | $ | 220,715 | |||||||||||||
Net cash used in investing activities | (89,838 | ) | (103,703 | ) | (123,475 | ) | (240,295 | ) | (128,005 | ) | ||||||||||
Net cash provided by (used in) financing activities | 310 | (310 | ) | (12,633 | ) | (3,228 | ) | 1,352 | ||||||||||||
Net increase (decrease) in cash and cash equivalents | $ | 90,120 | (12,450 | ) | 50,120 | (27,296 | ) | $ | 94,062 | |||||||||||
Page 10 of 20
Platinum Underwriters Holdings, Ltd.
Segment Reporting
($ in thousands)
Three Months Ended March 31, 2005 | Three Months Ended March 31, 2004 | |||||||||||||||||||||||||||||||
Property and | Property and | |||||||||||||||||||||||||||||||
Marine | Casualty | Finite Risk | Total | Marine | Casualty | Finite Risk | Total | |||||||||||||||||||||||||
Net premiums written | $ | 185,049 | 215,669 | 93,081 | $ | 493,799 | $ | 171,294 | 223,965 | 84,847 | $ | 480,106 | ||||||||||||||||||||
Net premiums earned | 128,197 | 184,768 | 98,075 | 411,040 | 118,065 | 136,222 | 66,755 | 321,042 | ||||||||||||||||||||||||
Losses and loss adjustment expenses | 60,040 | 118,438 | 59,220 | 237,698 | 48,578 | 94,784 | 18,607 | 161,969 | ||||||||||||||||||||||||
Acquisition expenses | 21,989 | 45,202 | 26,058 | 93,249 | 21,752 | 34,836 | 32,333 | 88,921 | ||||||||||||||||||||||||
Other underwriting expenses | 7,723 | 7,313 | 1,571 | 16,607 | 8,150 | 5,057 | 2,597 | 15,804 | ||||||||||||||||||||||||
Total underwriting expenses | 89,752 | 170,953 | 86,849 | 347,554 | 78,480 | 134,677 | 53,537 | 266,694 | ||||||||||||||||||||||||
Segment underwriting income | $ | 38,445 | 13,815 | 11,226 | 63,486 | $ | 39,585 | 1,545 | 13,218 | 54,348 | ||||||||||||||||||||||
Net investment income | 26,905 | 17,484 | ||||||||||||||||||||||||||||||
Net realized capital gains | 372 | 452 | ||||||||||||||||||||||||||||||
Net foreign currency exchange gains (losses) | (1,798 | ) | 866 | |||||||||||||||||||||||||||||
Other income (loss) | (356 | ) | 511 | |||||||||||||||||||||||||||||
Corporate expenses | (3,401 | ) | (2,970 | ) | ||||||||||||||||||||||||||||
Interest expense | (2,173 | ) | (2,306 | ) | ||||||||||||||||||||||||||||
Income before income tax expense | $ | 83,035 | $ | 68,385 | ||||||||||||||||||||||||||||
GAAP underwriting ratios: | �� | |||||||||||||||||||||||||||||||
Loss and loss adjustment expense | 46.8 | % | 64.1 | % | 60.4 | % | 57.8 | % | 41.1 | % | 69.6 | % | 27.9 | % | 50.5 | % | ||||||||||||||||
Acquisition expense | 17.2 | % | 24.5 | % | 26.6 | % | 22.7 | % | 18.4 | % | 25.6 | % | 48.4 | % | 27.7 | % | ||||||||||||||||
Other underwriting expense | 6.0 | % | 4.0 | % | 1.6 | % | 4.0 | % | 6.9 | % | 3.7 | % | 3.9 | % | 4.9 | % | ||||||||||||||||
Combined | 70.0 | % | 92.6 | % | 88.6 | % | 84.5 | % | 66.4 | % | 98.9 | % | 80.2 | % | 83.1 | % | ||||||||||||||||
Statutory underwriting ratios: | ||||||||||||||||||||||||||||||||
Loss and loss adjustment expense | 46.8 | % | 64.1 | % | 60.4 | % | 57.8 | % | 41.1 | % | 69.6 | % | 27.9 | % | 50.5 | % | ||||||||||||||||
Acquisition expense | 16.1 | % | 23.6 | % | 28.0 | % | 21.6 | % | 17.4 | % | 25.6 | % | 45.3 | % | 26.1 | % | ||||||||||||||||
Other underwriting expense | 4.2 | % | 3.4 | % | 1.7 | % | 3.4 | % | 4.8 | % | 2.3 | % | 3.1 | % | 3.3 | % | ||||||||||||||||
Combined | 67.1 | % | 91.1 | % | 90.1 | % | 82.8 | % | 63.3 | % | 97.5 | % | 76.3 | % | 79.9 | % | ||||||||||||||||
The GAAP underwriting ratios are calculated by dividing each item above by net premiums earned.
(1) | Losses & loss adjustment expenses are divided by net premiums earned; | |
(2) | 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. |
Page 11 of 20
Platinum Underwriters Holdings, Ltd.
Property and Marine Segment — by Quarter
($ in thousands)
Three Months Ended | ||||||||||||||||||||
March 31, 2005 | December 31, 2004 | September 30, 2004 | June 30, 2004 | March 31, 2004 | ||||||||||||||||
Net premiums written | $ | 185,049 | 110,675 | 120,629 | 101,841 | $ | 171,294 | |||||||||||||
Net premiums earned | 128,197 | 131,712 | 135,430 | 99,928 | 118,065 | |||||||||||||||
Losses and loss adjustment expenses | 60,040 | 64,510 | 195,495 | 40,974 | 48,578 | |||||||||||||||
Acquisition expenses | 21,989 | 18,869 | 20,834 | 14,905 | 21,752 | |||||||||||||||
Other underwriting expenses | 7,723 | 6,547 | 5,956 | 7,174 | 8,150 | |||||||||||||||
Total underwriting expenses | 89,752 | 89,926 | 222,285 | 63,053 | 78,480 | |||||||||||||||
Segment underwriting income (loss) | $ | 38,445 | 41,786 | (86,855 | ) | 36,875 | $ | 39,585 | ||||||||||||
GAAP underwriting ratios: | ||||||||||||||||||||
Loss and loss adjustment expense | 46.8 | % | 49.0 | % | 144.4 | % | 41.0 | % | 41.1 | % | ||||||||||
Acquisition expense | 17.2 | % | 14.3 | % | 15.4 | % | 14.9 | % | 18.4 | % | ||||||||||
Other underwriting expense | 6.0 | % | 5.0 | % | 4.4 | % | 7.2 | % | 6.9 | % | ||||||||||
Combined | 70.0 | % | 68.3 | % | 164.2 | % | 63.1 | % | 66.4 | % | ||||||||||
Statutory underwriting ratios: | ||||||||||||||||||||
Loss and loss adjustment expense | 46.8 | % | 49.0 | % | 144.4 | % | 41.0 | % | 41.1 | % | ||||||||||
Acquisition expense | 16.1 | % | 15.9 | % | 15.0 | % | 16.2 | % | 17.4 | % | ||||||||||
Other underwriting expense | 4.2 | % | 5.9 | % | 4.9 | % | 7.0 | % | 4.8 | % | ||||||||||
Combined | 67.1 | % | 70.8 | % | 164.3 | % | 64.2 | % | 63.3 | % | ||||||||||
The GAAP underwriting ratios are calculated by dividing each item above by net premiums earned.
(1) | Losses & loss adjustment expenses are divided by net premiums earned; | |
(2) | 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. |
Page 12 of 20
Platinum Underwriters Holdings, Ltd.
Casualty Segment — by Quarter
($ in thousands)
Three Months Ended | ||||||||||||||||||||
March 31, 2005 | December 31, 2004 | September 30, 2004 | June 30, 2004 | March 31, 2004 | ||||||||||||||||
Net premiums written | $ | 215,669 | 168,706 | 171,967 | 112,761 | $ | 223,965 | |||||||||||||
Net premiums earned | 184,768 | 186,929 | 156,512 | 132,230 | 136,222 | |||||||||||||||
Losses and loss adjustment expenses | 118,438 | 124,621 | 105,559 | 93,391 | 94,784 | |||||||||||||||
Acquisition expenses | 45,202 | 45,884 | 38,935 | 31,994 | 34,836 | |||||||||||||||
Other underwriting expenses | 7,313 | 3,107 | 5,617 | 5,305 | 5,057 | |||||||||||||||
Total underwriting expenses | 170,953 | 173,612 | 150,111 | 130,690 | 134,677 | |||||||||||||||
Segment underwriting income | $ | 13,815 | 13,317 | 6,401 | 1,540 | $ | 1,545 | |||||||||||||
GAAP underwriting ratios: | ||||||||||||||||||||
Loss and loss adjustment expense | 64.1 | % | 66.7 | % | 67.4 | % | 70.6 | % | 69.6 | % | ||||||||||
Acquisition expense | 24.5 | % | 24.5 | % | 24.9 | % | 24.2 | % | 25.6 | % | ||||||||||
Other underwriting expense | 4.0 | % | 1.7 | % | 3.6 | % | 4.0 | % | 3.7 | % | ||||||||||
Combined | 92.6 | % | 92.9 | % | 95.9 | % | 98.8 | % | 98.9 | % | ||||||||||
Statutory underwriting ratios: | ||||||||||||||||||||
Loss and loss adjustment expense | 64.1 | % | 66.7 | % | 67.4 | % | 70.6 | % | 69.6 | % | ||||||||||
Acquisition expense | 23.6 | % | 23.7 | % | 24.7 | % | 23.0 | % | 25.6 | % | ||||||||||
Other underwriting expense | 3.4 | % | 1.8 | % | 3.3 | % | 4.7 | % | 2.3 | % | ||||||||||
Combined | 91.1 | % | 92.2 | % | 95.4 | % | 98.3 | % | 97.5 | % | ||||||||||
The GAAP underwriting ratios are calculated by dividing each item above by net premiums earned.
(1) | Losses & loss adjustment expenses are divided by net premiums earned; | |
(2) | 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. |
Page 13 of 20
Platinum Underwriters Holdings, Ltd.
Finite Risk Segment — by Quarter
($ in thousands)
Three Months Ended | ||||||||||||||||||||
March 31, 2005 | December 31, 2004 | September 30, 2004 | June 30, 2004 | March 31, 2004 | ||||||||||||||||
Net premiums written | $ | 93,081 | 115,504 | 147,899 | 115,925 | $ | 84,847 | |||||||||||||
Net premiums earned | 98,075 | 114,295 | 91,148 | 78,709 | 66,755 | |||||||||||||||
Losses and loss adjustment expenses | 59,220 | 94,514 | 83,670 | 55,101 | 18,607 | |||||||||||||||
Acquisition expenses | 26,058 | 30,182 | 21,502 | 15,795 | 32,333 | |||||||||||||||
Other underwriting expenses | 1,571 | 399 | 661 | 2,567 | 2,597 | |||||||||||||||
Total underwriting expenses | 86,849 | 125,095 | 105,833 | 73,463 | 53,537 | |||||||||||||||
Segment underwriting income (loss) | $ | 11,226 | (10,800 | ) | (14,685 | ) | 5,246 | $ | 13,218 | |||||||||||
GAAP underwriting ratios: | ||||||||||||||||||||
Loss and loss adjustment expense | 60.4 | % | 82.7 | % | 91.8 | % | 70.0 | % | 27.9 | % | ||||||||||
Acquisition expense | 26.6 | % | 26.4 | % | 23.6 | % | 20.1 | % | 48.4 | % | ||||||||||
Other underwriting expense | 1.6 | % | 0.3 | % | 0.7 | % | 3.3 | % | 3.9 | % | ||||||||||
Combined | 88.6 | % | 109.4 | % | 116.1 | % | 93.4 | % | 80.2 | % | ||||||||||
Statutory underwriting ratios: | ||||||||||||||||||||
Loss and loss adjustment expense | 60.4 | % | 82.7 | % | 91.8 | % | 70.0 | % | 27.9 | % | ||||||||||
Acquisition expense | 28.0 | % | 27.0 | % | 27.3 | % | 23.1 | % | 45.3 | % | ||||||||||
Other underwriting expense | 1.7 | % | 0.3 | % | 0.4 | % | 2.2 | % | 3.1 | % | ||||||||||
Combined | 90.1 | % | 110.0 | % | 119.5 | % | 95.3 | % | 76.3 | % | ||||||||||
The GAAP underwriting ratios are calculated by dividing each item above by net premiums earned.
(1) | Losses & loss adjustment expenses are divided by net premiums earned; | |
(2) | 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. |
Page 14 of 20
Platinum Underwriters Holdings, Ltd.
Net Premiums Written — Supplemental Information
($ in thousands)
Three Months Ended | ||||||||
March 31, 2005 | March 31, 2004 | |||||||
Property and Marine: | ||||||||
Excess-of-loss | $ | 133,655 | $ | 128,138 | ||||
Proportional | 51,394 | 43,156 | ||||||
Subtotal Property and Marine | 185,049 | 171,294 | ||||||
Casualty: | ||||||||
Excess-of-loss | 168,547 | 171,750 | ||||||
Proportional | 47,122 | 52,215 | ||||||
Subtotal Casualty | 215,669 | 223,965 | ||||||
Finite Risk: | ||||||||
Excess-of-loss | 7,291 | 32,672 | ||||||
Proportional | 85,790 | 52,175 | ||||||
Subtotal Finite Risk | 93,081 | 84,847 | ||||||
Total: | ||||||||
Excess-of-loss | 309,493 | 332,560 | ||||||
Proportional | 184,306 | 147,546 | ||||||
Total | $ | 493,799 | $ | 480,106 | ||||
Three Months Ended | ||||||||
March 31, 2005 | March 31, 2004 | |||||||
Property and Marine: | ||||||||
United States | $ | 97,111 | $ | 74,823 | ||||
International | 87,938 | 96,471 | ||||||
Subtotal Property and Marine | 185,049 | 171,294 | ||||||
Casualty: | ||||||||
United States | 166,396 | 183,920 | ||||||
International | 49,273 | 40,045 | ||||||
Subtotal Casualty | 215,669 | 223,965 | ||||||
Finite Risk: | ||||||||
United States | 90,955 | 78,969 | ||||||
International | 2,126 | 5,878 | ||||||
Subtotal Finite Risk | 93,081 | 84,847 | ||||||
Total: | ||||||||
United States | 354,462 | 337,712 | ||||||
International | 139,337 | 142,394 | ||||||
Total | $ | 493,799 | $ | 480,106 | ||||
Page 15 of 20
Platinum Underwriters Holdings, Ltd.
Premiums by Line of Business
($ in thousands)
Three Months Ended March 31, 2005 | Three Months Ended March 31, 2004 | |||||||||||||||||||||||
Gross | Net | Net | Gross | Net | Net | |||||||||||||||||||
Premiums | Premiums | Premiums | Premiums | Premiums | Premiums | |||||||||||||||||||
Written | Written | Earned | Written | Written | Earned | |||||||||||||||||||
Property and Marine: | ||||||||||||||||||||||||
North American Property Proportional | $ | 19,245 | 19,245 | $ | 17,210 | $ | 15,584 | 15,584 | $ | 14,321 | ||||||||||||||
North American Property Catastrophe | 18,684 | 18,814 | 18,009 | 14,773 | 12,912 | 13,416 | ||||||||||||||||||
North American Property Risk | 24,505 | 22,869 | 21,649 | 23,431 | 23,431 | 22,139 | ||||||||||||||||||
Other Property | 36,183 | 36,183 | 31,933 | 22,896 | 22,896 | 19,996 | ||||||||||||||||||
Marine / Aviation Proportional | 2,231 | 2,231 | 2,267 | 2,316 | 2,316 | 1,695 | ||||||||||||||||||
Marine / Aviation Excess | 15,742 | 13,830 | 8,753 | 24,258 | 22,807 | 15,484 | ||||||||||||||||||
International Property Proportional | 9,906 | 9,906 | 5,700 | 8,204 | 8,204 | 5,336 | ||||||||||||||||||
International Property Catastrophe | 48,296 | 46,876 | 15,631 | 58,493 | 51,536 | 20,328 | ||||||||||||||||||
International Property Risk | 15,095 | 15,095 | 7,045 | 11,608 | 11,608 | 5,350 | ||||||||||||||||||
Subtotal | 189,887 | 185,049 | 128,197 | 181,563 | 171,294 | 118,065 | ||||||||||||||||||
Casualty: | ||||||||||||||||||||||||
Clash | 11,130 | 11,130 | 7,199 | 6,831 | 6,831 | 7,426 | ||||||||||||||||||
1st $ GL | 8,127 | 8,127 | 8,608 | 7,863 | 7,863 | 6,551 | ||||||||||||||||||
1st $ Other | 638 | 638 | 650 | 590 | 590 | 424 | ||||||||||||||||||
Casualty Excess | 113,540 | 113,540 | 118,248 | 116,408 | 116,408 | 82,764 | ||||||||||||||||||
Accident & Health | 28,391 | 28,391 | 24,904 | 47,827 | 47,827 | 22,670 | ||||||||||||||||||
International Casualty | 19,835 | 19,835 | 8,871 | 9,474 | 9,474 | 4,981 | ||||||||||||||||||
International Motor | 2,068 | 2,068 | 4,869 | 15,821 | 14,902 | 5,976 | ||||||||||||||||||
Financial Lines | 31,940 | 31,940 | 11,419 | 20,070 | 20,070 | 5,430 | ||||||||||||||||||
Subtotal | 215,669 | 215,669 | 184,768 | 224,884 | 223,965 | 136,222 | ||||||||||||||||||
Finite Risk: | ||||||||||||||||||||||||
Finite Property | 18,738 | 4,760 | 7,498 | 15,923 | 15,923 | 21,494 | ||||||||||||||||||
Finite Casualty | 88,407 | 88,407 | 84,209 | 53,867 | 53,867 | 15,452 | ||||||||||||||||||
Finite Accident & Health | (86 | ) | (86 | ) | 6,368 | 15,057 | 15,057 | 29,809 | ||||||||||||||||
Subtotal | 107,059 | 93,081 | 98,075 | 84,847 | 84,847 | 66,755 | ||||||||||||||||||
Total | $ | 512,615 | 493,799 | $ | 411,040 | $ | 491,294 | 480,106 | $ | 321,042 | ||||||||||||||
Page 16 of 20
Platinum Underwriters Holdings, Ltd.
Company Ratios, Share Data, Ratings
As of and for the Three Months Ended | ||||||||||||||||||||
March 31, 2005 | December 31, 2004 | September 30, 2004 | June 30, 2004 | March 31, 2004 | ||||||||||||||||
GAAP Basis Ratios %: | ||||||||||||||||||||
Combined (%) | 84.5 | % | 89.7 | % | 124.8 | % | 85.9 | % | 83.1 | % | ||||||||||
Debt to Total Capital (%) | 10.5 | % | 10.8 | % | 11.2 | % | 10.8 | % | 10.7 | % | ||||||||||
Net Premiums Written (Annualized) to Shareholders’ Equity | 1.68 | 1.39 | 1.62 | 1.16 | 1.68 | |||||||||||||||
Share Data: | ||||||||||||||||||||
Book Value Per Share | $ | 27.12 | $ | 26.30 | $ | 25.30 | $ | 26.29 | $ | 26.42 | ||||||||||
Common Shares Outstanding (000’s) | 43,254 | 43,087 | 43,018 | 43,279 | 43,268 | |||||||||||||||
Market Price Per Share:* | ||||||||||||||||||||
High | $ | 31.92 | $ | 31.10 | $ | 30.90 | $ | 33.50 | $ | 34.02 | ||||||||||
Low | 29.18 | 27.30 | 27.70 | 30.20 | 29.86 | |||||||||||||||
Close | $ | 29.70 | $ | 31.10 | $ | 29.28 | $ | 30.43 | $ | 32.05 | ||||||||||
Industry Ratings: | ||||||||||||||||||||
A.M. Best (Financial Strength Rating) | A | A | A | A | A | |||||||||||||||
Supplemental Data: | ||||||||||||||||||||
Total Employees | 159 | 159 | 164 | 158 | 156 |
* | Based on closing prices during the periods |
Page 17 of 20
Platinum Underwriters Holdings, Ltd.
Investment Portfolio
($ in thousands)
Weighted | Weighted | |||||||||||||||
Average | Average | |||||||||||||||
March 31, 2005 | Book Yield | December 31, 2004 | Book Yield | |||||||||||||
Fixed Maturities: | ||||||||||||||||
US Government and US Government agencies | $ | 6,476 | 3.0 | % | $ | 4,203 | 2.3 | % | ||||||||
Tax exempt municipal bonds | 210,586 | 3.0 | % | 215,251 | 3.0 | % | ||||||||||
Corporate bonds | 1,217,598 | 4.3 | % | 1,158,797 | 4.2 | % | ||||||||||
Mortgage and asset-backed securities | 514,821 | 4.8 | % | 511,069 | 4.9 | % | ||||||||||
Foreign governments and foreign corporate bonds | 319,801 | 4.7 | % | 347,206 | 4.7 | % | ||||||||||
Total Bonds | 2,269,282 | 4.3 | % | 2,236,526 | 4.3 | % | ||||||||||
Redeemable Preferred Stock | 8,860 | 5.9 | % | 3,676 | 5.8 | % | ||||||||||
Total Fixed Maturities | $ | 2,278,142 | 4.3 | % | $ | 2,240,202 | 4.3 | % | ||||||||
March 31, 2005 | December 31, 2004 | |||||||||||||||
Amount | % of Total | Amount | % of Total | |||||||||||||
Credit Quality of Investment Grades:* | ||||||||||||||||
Aaa | $ | 763,186 | 33.5 | % | $ | 764,002 | 34.1 | % | ||||||||
Aa | 502,489 | 22.1 | % | 447,071 | 20.0 | % | ||||||||||
A | 886,470 | 38.9 | % | 909,403 | 40.6 | % | ||||||||||
Baa | — | — | ||||||||||||||
Baa | 125,997 | 5.5 | % | 119,726 | 5.3 | % | ||||||||||
Total | $ | 2,278,142 | 100.0 | % | $ | 2,240,202 | 100.0 | % | ||||||||
Credit Quality: | ||||||||||||||||
Weighted average credit quality | Aa3 | Aa3 |
* | Rated using external rating agencies (Moody’s). |
Page 18 of 20
Platinum Underwriters Holdings, Ltd.
Investment Portfolio — Net Realized Capital Gains (Losses)
($ in thousands)
Three Months Ended | ||||||||
March 31, 2005 | March 31, 2004 | |||||||
Net realized capital gains (losses): | ||||||||
United States | $ | 153 | $ | 76 | ||||
United Kingdom | (38 | ) | (3 | ) | ||||
Bermuda | 257 | 379 | ||||||
Total | $ | 372 | $ | 452 | ||||
Page 19 of 20
Platinum Underwriters Holdings, Ltd.
Loss Analysis
($ in thousands)
Analysis of Losses and Loss Expenses Incurred | ||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2005 | Twelve Months Ended December 31, 2004 | |||||||||||||||||||||||||||||||
Paid to | Paid to | |||||||||||||||||||||||||||||||
Gross | Ceded | Net | Incurred % | Gross | Ceded | Net | Incurred % | |||||||||||||||||||||||||
Paid | $ | 117,922 | 18 | $ | 117,904 | 49.6 | % | $ | 381,402 | 643 | $ | 380,759 | 37.3 | % | ||||||||||||||||||
Change in unpaid losses and loss expenses | 125,972 | 6,178 | 119,794 | 635,756 | (3,289 | ) | 639,045 | |||||||||||||||||||||||||
Losses and loss expenses incurred | $ | 243,894 | 6,196 | $ | 237,698 | $ | 1,017,158 | (2,646 | ) | $ | 1,019,804 | |||||||||||||||||||||
Analysis of Unpaid Losses and Loss Adjustment Expenses | ||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2005 | Twelve Months Ended December 31, 2004 | |||||||||||||||||||||||||||||||
Gross* | Ceded | Net* | % | Gross | Ceded | Net | % | |||||||||||||||||||||||||
Outstanding losses and loss expenses | $ | 248,975 | 419 | $ | 248,556 | 16.6 | % | $ | 229,454 | 449 | $ | 229,005 | 16.6 | % | ||||||||||||||||||
Incurred but not reported | 1,258,183 | 7,487 | 1,250,696 | 83.4 | % | 1,151,501 | 1,279 | 1,150,222 | 83.4 | % | ||||||||||||||||||||||
Unpaid losses and loss expenses | $ | 1,507,158 | 7,906 | $ | 1,499,252 | 100.0 | % | $ | 1,380,955 | 1,728 | $ | 1,379,227 | 100.0 | % | ||||||||||||||||||
* | Includes effects of foreign currency exchange rate movements of $231 |
Page 20 of 20