Platinum Underwriters (PTP) 8-K Platinum Underwriters Holdings, LTD. Reports Financial Results

Contact:         Lily Outerbridge

Investor Relations

(441) 298-0760

PLATINUM UNDERWRITERS HOLDINGS, LTD.  REPORTS FINANCIAL RESULTS

FOR THE THIRD QUARTER AND NINE MONTHS ENDED SEPTEMBER 30, 2007

HAMILTON, BERMUDA, October 23, 2007 – Platinum Underwriters Holdings, Ltd. (NYSE: PTP) today reported net income of $91.3 million, or $1.37 per diluted common share, for the quarter ended September 30, 2007.  The results for the quarter include net premiums earned of $290.3 million, a decrease of 14.5% from the same quarter last year, net favorable development of $13.4 million, compared with net favorable development of $20.0 million for the same quarter last year, and net investment income of $54.3 million, an increase of 12.4% from the same quarter last year.

Michael D. Price, Chief Executive Officer, commented, “Our excellent overall result for the quarter reflected solid current period underwriting margins, growing investment income, and favorable prior period reserve development.  Our book value per share increased 13.3% from December 31, 2006 to $32.09, and reflects share repurchases in the quarter of $104.4 million at an average price of $33.69.”

Mr. Price added, “Plentiful reinsurance capacity resulting from historically good market conditions and light catastrophe losses in combination with some companies’ drive for growth and diversification will likely put downward pressure on reinsurance rates across nearly all lines and geographies.  However, given the significant asset base we have developed over the past five years and with our focus on underwriting for profitability, we believe that our prospects for continuing to build book value per share are strong in 2008 and beyond.”

Results for the quarter ended September 30, 2007 were summarized as follows:

·Net income was $91.3 million or $1.37 per diluted common share.

·Net premiums written were $292.1 million and net premiums earned were $290.3 million.

·GAAP combined ratio was 81.3%.

·Net investment income was $54.3 million.

Results for the quarter ended September 30, 2007 compared to the quarter ended September 30, 2006 were summarized as follows:

 ·   Net income increased $6.4 million (or 7.5%).

·   Net premiums written decreased $5.9 million (or 2.0%) and net premiums earned decreased $49.3 million (or 14.5%).

·   GAAP combined ratio decreased 3.1 percentage points.

·   Net investment income increased $6.0 million (or 12.4%).

Net premiums written for Platinum’s Property and Marine, Casualty and Finite Risk segments for the quarter ended September 30, 2007 were $142.5 million, $141.2 million and $8.4 million, respectively, representing 48.8%, 48.3% and 2.9%, respectively, of the total net premiums written. Combined ratios for these segments were 57.6%, 98.8% and 125.5%, respectively, for the quarter. Compared to the quarter ended September 30, 2006, net premiums written increased by $59.5 million (or 71.7%) in the Property and Marine segment and decreased by $61.1 million (or 30.2%) and $4.3 million (or 34.0%) in the Casualty and Finite Risk segments, respectively.

Results for the nine months ended September 30, 2007 were summarized as follows:

·Net income was $254.8 million or $3.79 per diluted common share.

·Net premiums written were $878.8 million and net premiums earned were $871.1 million.

·GAAP combined ratio was 83.0%.

·Net investment income was $160.7 million.

Results for the nine months ended September 30, 2007 compared to the nine months ended September 30, 2006 were summarized as follows:

·   Net income increased $11.1 million (or 4.5%).

·   Net premiums written decreased $22.3 million (or 2.5%) and net premiums earned decreased $149.9 million (or 14.7%).

·   GAAP combined ratio decreased 1.4 percentage points.

·   Net investment income increased $23.5 million (or 17.1%).

Net premiums written for Platinum’s Property and Marine, Casualty and Finite Risk segments for the nine months ended September 30, 2007 were $399.4 million, $456.0 million, and $23.4 million, respectively, representing 45.5%, 51.9% and 2.6%, respectively, of the total net premiums written.  Combined ratios for these segments were 62.4%, 99.1% and 86.1%, respectively, for the nine months ended September 30, 2007.  Compared to the nine months ended September 30, 2006, net premiums written increased $65.5 million (or 19.6%) in the Property and Marine segment and decreased $128.0 million (or 21.9%) in the Casualty segment.  Compared to the nine months ended September 30, 2006, net premiums written increased $40.2 million in the Finite Risk segment, primarily due to the termination of two quota share contacts in the nine months ended September 30, 2006.  As previously disclosed, one of these contracts was terminated on a cut-off basis, which resulted in the return of approximately $56.6 million of previously written but unearned premium.

Total assets were $5.2 billion as of September 30, 2007, an increase of $106.6 million (or 2.1%) from $5.1 billion as of December 31, 2006.  Cash, cash equivalents and fixed maturity investments were $4.4 billion as of September 30, 2007, an increase of $178.3 million (or 4.2%) from $4.2 billion as of December 31, 2006.

Shareholders’ equity was $2.0 billion as of September 30, 2007, an increase of $145.6 million (or 7.8%) from December 31, 2006.  Book value per common share was $32.09 as of September 30, 2007 based on 57.2 million common shares outstanding, an increase of $3.76 (or 13.3%) from $28.33 based on 59.7 million common shares outstanding as of December 31, 2006.

Financial Supplement

Platinum has posted a financial supplement on the Financial Reports page of the Investor Relations section of its website (Financial Supplement).  The financial supplement provides additional detail regarding the financial performance of Platinum and its business segments.

Teleconference

Platinum will host a teleconference to discuss its financial results on Wednesday, October 24, 2007 at 8:00 a.m. Eastern time.  The call can be accessed by dialing 800-289-0528 (US callers) or 913-981-5522 (international callers) or in a listen-only mode via the Investor Relations section of Platinum’s website at www.platinumre.com.  Those who intend to participate in the teleconference should register at least ten minutes in advance to ensure access to the call.

The teleconference will be recorded and a replay will be available from 11:00 a.m. Eastern time on Wednesday, October 24, 2007 until midnight Eastern time on Wednesday, October 31, 2007.  To access the replay by telephone, dial 888-203-1112 (US callers) or 719-457-0820 (international callers) and specify passcode: 6445863.  The teleconference will also be archived on the Investor Relations section of Platinum’s website at www.platinumre.com for the same period of time.

Non-GAAP Financial Measures

In presenting the Company's results, management has included and discussed certain schedules containing financial measures that are not calculated under standards or rules that comprise accounting principles generally accepted in the United States (GAAP). Such measures, including segment underwriting income (or loss) and related underwriting ratios are referred to as non-GAAP. These non-GAAP measures may be defined or calculated differently by other companies. Management believes these measures, which are used to monitor the results of operations, allow for a more complete understanding of the underlying business. These measures should not be viewed as a substitute for those determined in accordance with GAAP. A reconciliation of such measures to the most comparable GAAP figures such as income before income tax expense and total shareholders’ equity is presented in the attached financial information in accordance with Regulation G.

About Platinum

Platinum Underwriters Holdings, Ltd. (NYSE: PTP) is a leading provider of property, casualty and finite risk reinsurance coverages, through reinsurance intermediaries, to a diverse clientele on a worldwide basis.  Platinum operates through its principal subsidiaries in Bermuda and the United States.  The Company has a financial strength rating of A (Excellent) from A.M. Best Company, Inc.  For further information, please visit Platinum’s website at www.platinumre.com.

Safe Harbor Statement Regarding Forward-Looking Statements

Management believes certain statements in this press release may constitute "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 include all statements that do not relate solely to historical or current facts, and can be identified by the use of words such as "may," "should," "estimate," "expect," "anticipate," "intend," "believe," "predict," "potential," or words of similar import.  Forward-looking statements are necessarily based on estimates and assumptions that are inherently subject to significant business, economic and competitive uncertainties and risks, many of which are subject to change.  These uncertainties and risks include, but are not limited to, conducting operations in a competitive environment; our ability to maintain our A.M. Best Company, Inc. rating; significant weather-related or other natural or man-made disasters over which the Company has no control; the effectiveness of our loss limitation methods and pricing models; the adequacy of the Company's liability for unpaid losses and loss adjustment expenses; the availability of retrocessional reinsurance on acceptable terms; our ability to maintain our business relationships with reinsurance brokers; general political and economic conditions, including the effects of civil unrest, acts of terrorism, war or a prolonged U.S. or global economic downturn or recession; the cyclicality of the property and casualty reinsurance business; market volatility and interest rate and currency exchange rate fluctuation; tax, regulatory or legal restrictions or limitations applicable to the Company or the property and casualty reinsurance business generally; and changes in the Company's plans, strategies, objectives, expectations or intentions, which may happen at any time at the Company's discretion.  As a consequence, current plans, anticipated actions and future financial condition and results may differ from those expressed in any forward-looking statements made by or on behalf of the Company.  Additionally, forward-looking statements speak only as of the date they are made, and we undertake no obligation  to release publicly the results of any future revisions or updates we may make to forward-looking statements to reflect new information or circumstances after the date hereof or to reflect the occurrence of future events.

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Platinum Underwriters Holdings, Ltd.
Consolidated Statements of Operations and Comprehensive Income (Unaudited)
For the Three and Nine Months Ended September 30, 2007 and 2006
(amounts in thousands, except per share amounts)
	Three Months Ended						Nine Months Ended
	September 30, 2007			September 30, 2006			September 30, 2007			September 30, 2006
Revenue
Net premiums earned	$	290,310			339,609			871,076		$	1,020,975
Net investment income		54,283			48,302			160,666			137,165
Net realized gains (losses) on investments		(864	)		(57	)		(2,521	)		22
Other income (expense)		(659	)		1,714			(3,645	)		(1,927	)
Total revenue		343,070			389,568			1,025,576			1,156,235
Expenses
Net losses and LAE		163,923			191,428			510,267			585,666
Net acquisition expenses		51,445			74,994			156,392			220,285
Other underwriting expenses		20,757			20,063			56,153			55,064
Corporate expenses		7,404			5,285			21,322			16,664
Net foreign currency exchange (gains) losses		(1,429	)		228			(2,887	)		(461	)
Interest expense		5,457			5,452			16,368			16,352
Total expenses		247,557			297,450			757,615			893,570
Income before income tax expense		95,513			92,118			267,961			262,665
Income tax expense		4,210			7,195			13,175			18,958
Net income		91,303			84,923			254,786			243,707
Preferred dividends		2,602			2,602			7,806			7,780
Net income attributable to common shareholders	$	88,701			82,321			246,980		$	235,927
Basic
Weighted average common shares outstanding		58,946			59,537			59,572			59,287
Basic earnings per common share	$	1.50			1.38			4.15		$	3.98
Diluted
Adjusted weighted average common shares outstanding		66,710			66,520			67,294			66,273
Diluted earnings per common share	$	1.37			1.28			3.79		$	3.68
Comprehensive income
Net income	$	91,303			84,923			254,786		$	243,707
Other comprehensive income (loss), net of deferred taxes		23,719			53,941			178			(5,779	)
Comprehensive income	$	115,022			138,864			254,964		$	237,928

Platinum Underwriters Holdings, Ltd.
Condensed Consolidated Balance Sheets
As of September 30, 2007 and December 31, 2006
(amounts in thousands, except per share amounts)
	September 30, 2007		December 31, 2006
	(Unaudited)
Assets
Investments	$	3,602,120	$	3,350,162
Cash, cash equivalents and short-term investments		805,132		878,775
Reinsurance premiums receivable		299,295		377,183
Accrued investment income		33,917		32,682
Reinsurance balances (prepaid and recoverable)		43,340		67,636
Deferred acquisition costs		82,602		82,610
Funds held by ceding companies		165,495		238,499
Other assets		168,279		66,020
Total assets	$	5,200,180	$	5,093,567
Liabilities
Unpaid losses and loss adjustment expenses	$	2,363,274	$	2,368,482
Unearned premiums		358,915		349,792
Debt obligations		292,840		292,840
Commissions payable		105,725		140,835
Other liabilities		75,740		83,557
Total liabilities		3,196,494		3,235,506
Total shareholders' equity		2,003,686		1,858,061
Total liabilities and shareholders' equity	$	5,200,180	$	5,093,567
Book value per common share  (a)	$	32.09	$	28.33

(a) Book value per common share is determined by dividing shareholders' equity, excluding capital attributable to preferred shares, by actual common shares outstanding including unvested restricted common shares.  Unvested restricted common shares were as follows: September 30, 2007 - 62,053; December 31, 2006 -  86,937

Platinum Underwriters Holdings, Ltd.
Segment Reporting
For the Three Months Ended September 30, 2007 and 2006
($ in thousands)
Three Months Ended September 30, 2007 (Unaudited)
Segment underwriting results	Property and Marine			Casualty			Finite Risk			Total
Net premiums written	$	142,549			141,214			8,369		$	292,132
Net premiums earned		128,380			153,938			7,992			290,310
Net losses and LAE		43,396			110,365			10,162			163,923
Net acquisition expenses		18,549			33,403			(507	)		51,445
Other underwriting expenses		12,086			8,304			367			20,757
Total underwriting expenses		74,031			152,072			10,022			236,125
Segment underwriting income (loss)	$	54,349			1,866			(2,030	)		54,185
Net investment income											54,283
Net realized losses on investments											(864	)
Net foreign currency exchange gains											1,429
Other expense											(659	)
Corporate expenses not allocated to segments											(7,404	)
Interest expense											(5,457	)
Income before income tax expense										$	95,513
GAAP underwriting ratios:
Loss and LAE		33.8	%		71.7	%		127.2	%		56.5	%
Acquisition expense		14.4	%		21.7	%		(6.3	%)		17.7	%
Other underwriting expense		9.4	%		5.4	%		4.6	%		7.1	%
Combined		57.6	%		98.8	%		125.5	%		81.3	%
Three Months Ended September 30, 2006 (Unaudited)
Segment underwriting results
Net premiums written	$	83,018			202,302			12,680		$	298,000
Net premiums earned		97,686			214,427			27,496			339,609
Net losses and LAE		17,181			149,698			24,549			191,428
Net acquisition expenses		14,895			54,503			5,596			74,994
Other underwriting expenses		8,608			9,464			1,991			20,063
Total underwriting expenses		40,684			213,665			32,136			286,485
Segment underwriting income (loss)	$	57,002			762			(4,640	)		53,124
Net investment income											48,302
Net realized losses on investments											(57	)
Net foreign currency exchange losses											(228	)
Other income											1,714
Corporate expenses not allocated to segments											(5,285	)
Interest expense											(5,452	)
Income before income tax expense										$	92,118
GAAP underwriting ratios:
Loss and LAE		17.6	%		69.8	%		89.3	%		56.4	%
Acquisition expense		15.2	%		25.4	%		20.4	%		22.1	%
Other underwriting expense		8.8	%		4.4	%		7.2	%		5.9	%
Combined		41.6	%		99.6	%		116.9	%		84.4	%
The GAAP underwriting ratios are calculated by dividing each item above by net premiums earned.

Platinum Underwriters Holdings, Ltd.
Segment Reporting
For the Nine Months Ended September 30, 2007 and 2006
($ in thousands)
Nine Months Ended September 30, 2007 (Unaudited)
Segment underwriting results	Property and Marine			Casualty			Finite Risk			Total
Net premiums written	$	399,429			455,945			23,398		$	878,772
Net premiums earned		373,226			471,802			26,048			871,076
Net losses and LAE		149,265			340,740			20,262			510,267
Net acquisition expenses		50,748			105,499			145			156,392
Other underwriting expenses		32,696			21,463			1,994			56,153
Total underwriting expenses		232,709			467,702			22,401			722,812
Segment underwriting income (loss)	$	140,517			4,100			3,647			148,264
Net investment income											160,666
Net realized losses on investments											(2,521	)
Net foreign currency exchange gains											2,887
Other expense											(3,645	)
Corporate expenses not allocated to segments											(21,322	)
Interest expense											(16,368	)
Income before income tax expense										$	267,961
GAAP underwriting ratios:
Loss and LAE		40.0	%		72.2	%		77.8	%		58.6	%
Acquisition expense		13.6	%		22.4	%		0.6	%		18.0	%
Other underwriting expense		8.8	%		4.5	%		7.7	%		6.4	%
Combined		62.4	%		99.1	%		86.1	%		83.0	%
Nine Months Ended September 30, 2006 (Unaudited)
Segment underwriting results
Net premiums written	$	333,906			583,950			(16,816	)	$	901,040
Net premiums earned		342,322			573,168			105,485			1,020,975
Net losses and LAE		104,876			394,087			86,703			585,666
Net acquisition expenses		55,783			141,025			23,477			220,285
Other underwriting expenses		27,642			23,487			3,935			55,064
Total underwriting expenses		188,301			558,599			114,115			861,015
Segment underwriting income	$	154,021			14,569			(8,630	)		159,960
Net investment income											137,165
Net realized gains on investments											22
Net foreign currency exchange gains											461
Other expense											(1,927	)
Corporate expenses not allocated to segments											(16,664	)
Interest expense											(16,352	)
Income before income tax expense										$	262,665
GAAP underwriting ratios:
Loss and LAE		30.6	%		68.8	%		82.2	%		57.4	%
Acquisition expense		16.3	%		24.6	%		22.3	%		21.6	%
Other underwriting expense		8.1	%		4.1	%		3.7	%		5.4	%
Combined		55.0	%		97.5	%		108.2	%		84.4	%
The GAAP underwriting ratios are calculated by dividing each item above by net premiums earned.