Platinum Underwriters (PTP) 8-K Results of Operations and Financial Condition

Exhibit 99.1

Contact:                         Lily Outerbridge

 Investor Relations

 (441) 298-0760

PLATINUM UNDERWRITERS HOLDINGS, LTD.  REPORTS FOURTH QUARTER AND YEAR ENDED DECEMBER 31, 2008 FINANCIAL RESULTS

HAMILTON, BERMUDA, FEBRUARY 18, 2009 – Platinum Underwriters Holdings, Ltd. (NYSE: PTP) today reported net income of $64.1 million, or $1.18 per diluted common share, for the quarter ended December 31, 2008 and net income of $226.2 million, or $3.98 per diluted common share, for the year ended December 31, 2008.

The results for the quarter are consistent with the Company’s previously announced increase in the ultimate loss estimate for Hurricane Ike and reflect net realized gains of approximately $42.9 million associated with the Company’s investment portfolio.  The results for the quarter include net premiums earned of $274.2 million, a decrease of 9.2% from the same quarter last year, net favorable development of $49.3 million, compared to net favorable development of $28.3 million in the same quarter last year, and net investment income of $42.5 million, a decrease of 20.6% from the same quarter last year.

Michael D. Price, Platinum’s Chief Executive Officer, commented, “2008 was a difficult year for our industry.  The underwriting, investment and capital management environments challenged companies’ risk management capabilities.  Platinum performed well and our results reflect our discipline in these areas.  Our book value per share was $34.58 as of December 31, 2008, an increase of 2.8% and 1.6% for the quarter and full year, respectively.”

Mr. Price added, “It has always been our strategy to operate from a position of financial strength and we feel this is especially important in the current environment.  During the January 1, 2009 renewal period, we reduced our peak zone catastrophe exposure to enhance our capital cushion. We continued our approach of underwriting for profitability, not market share, and produced a reinsurance portfolio that is significant and well balanced, though smaller than in prior January 1 renewal periods. We anticipate that the reinsurance market will improve during 2009 and intend to continue our balanced approach to underwriting, investment and capital management.”

Results for the quarter ended December 31, 2008 were summarized as follows:

·   Net income was $64.1 million or $1.18 per diluted common share.

·   Net premiums written were $237.3 million and net premiums earned were $274.2 million.

·   GAAP combined ratio was 97.7%.

·   Net investment income was $42.5 million.

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Results for the quarter ended December 31, 2008 compared to the quarter ended December 31, 2007 were summarized as follows:

·   Net income decreased $38.1 million (or 37.3%).

·   Net premiums written decreased $3.7 million (or 1.6%) and net premiums earned decreased $27.8 million (or 9.2%).

·   GAAP combined ratio increased 22.4 percentage points.

·   Net investment income decreased $11.0 million (or 20.6%).

Net premiums written for Platinum’s Property and Marine, Casualty and Finite Risk segments for the quarter ended December 31, 2008 were $138.5 million, $94.8 million and $4.0 million, respectively, representing 58.4%, 40.0% and 1.6%, respectively, of total net premiums written. Combined ratios for these segments were 97.5%, 99.0% and 58.8%, respectively. Compared to the quarter ended December 31, 2007, net premiums written increased $33.0 million (or 31.2%) in the Property and Marine segment and decreased $33.9 million (or 26.3%) and $2.8 million (or 41.8%) in the Casualty and Finite Risk segments, respectively.

Results for the year ended December 31, 2008 were summarized as follows:

·   Net income was $226.2 million or $3.98 per diluted common share.

·   Net premiums written were $1.04 billion and net premiums earned were $1.11 billion.

·   GAAP combined ratio was 91.9%.

·   Net investment income was $186.6 million.

Results for the year ended December 31, 2008 compared to the year ended December 31, 2007 were summarized as follows:

·   Net income decreased $130.7 million (or 36.6%).

·   Net premiums written decreased $82.2 million (or 7.3%) and net premiums earned decreased $58.3 million (or 5.0%).

·   GAAP combined ratio increased 10.9 percentage points.

·   Net investment income decreased $27.6 million (or 12.9%).

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Net premiums written for Platinum’s Property and Marine, Casualty and Finite Risk segments for the year ended December 31, 2008 were $593.1 million, $430.1 million and $14.4 million, respectively, representing 57.2%, 41.5% and 1.3%, respectively, of total net premiums written.  Combined ratios for these segments were 87.9%, 96.8% and 90.6%, respectively.  Compared to the year ended December 31, 2007, net premiums written increased $88.1 million (or 17.4%) in the Property and Marine segment and decreased $154.5 million (or 26.4%) and $15.8 million (or 52.3%) in the Casualty and Finite Risk segments, respectively.

Total assets were $4.93 billion as of December 31, 2008, a decrease of $151.6 million (or 3.0%) from $5.08 billion as of December 31, 2007.  The decrease in total assets reflects share repurchases, an increase in unrealized losses and positive cash flow from operations. Cash, cash equivalents and fixed maturity investments were $4.26 billion as of December 31, 2008, a decrease of $201.6 million (or 4.5%) from $4.46 billion as of December 31, 2007.

Shareholders’ equity was $1.81 billion as of December 31, 2008, a decrease of $189.0 million (or 9.5%) from $2.00 billion as of December 31, 2007.  Book value per common share was $34.58 as of December 31, 2008 based on 47.5 million common shares outstanding, an increase of $0.54 (or 1.6%) from $34.04 as of December 31, 2007 based on 53.8 million common shares outstanding.  Book value reflects share repurchases during 2008 of $266.3 million at an average price of $34.31 per share.

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 Thursday, February 19, 2009 at 8:00 a.m. Eastern time.  The call can be accessed by dialing 888-240-9345 (US callers) or 913-312-0845 (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 Thursday, February 19, 2009 until midnight Eastern time on Thursday, February 26, 2009.  To access the replay by telephone, dial 888-203-1112 (US callers) or 719-457-0820 (international callers) and specify passcode: 1402089.  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.

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Safe Harbor Statement Regarding Forward-Looking Statements:

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934 (the “Exchange Act”).  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, severe catastrophic events over which we have no control, the effectiveness of our loss limitation methods and pricing models, the adequacy of our liability for unpaid losses and loss adjustment expenses, our ability to maintain our A.M. Best Company, Inc. rating, the cyclicality of the property and casualty reinsurance business, conducting operations in a competitive environment, our ability to maintain our business relationships with reinsurance brokers, the availability of retrocessional reinsurance on acceptable terms, market volatility and interest rate and currency exchange rate fluctuation, tax, regulatory or legal restrictions or limitations applicable to us or the property and casualty reinsurance business generally, general political and economic conditions, including the effects of civil unrest, acts of terrorism, war or a prolonged United States or global economic downturn or recession; and changes in our plans, strategies, objectives, expectations or intentions, which may happen at any time at our discretion. 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.

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Platinum Underwriters Holdings, Ltd.
Condensed Consolidated Balance Sheets
As of December 31, 2008 and December 31, 2007
(amounts in thousands, except per share amounts)
	December 31, 2008		December 31, 2007
	(Unaudited)
Assets
Investments	$	3,371,886	$	3,371,348
Cash, cash equivalents and short-term investments		888,053		1,090,155
Reinsurance premiums receivable		307,539		244,360
Accrued investment income		29,041		34,696
Reinsurance balances (prepaid and recoverable)		23,310		37,348
Deferred acquisition costs		50,719		70,508
Funds held by ceding companies		136,278		165,604
Other assets		120,337		64,731
Total assets	$	4,927,163	$	5,078,750
Liabilities
Unpaid losses and loss adjustment expenses	$	2,463,506	$	2,361,038
Unearned premiums		218,890		298,498
Debt obligations		250,000		250,000
Commissions payable		125,551		100,204
Other liabilities		59,819		70,633
Total liabilities		3,117,766		3,080,373
Total shareholders' equity		1,809,397		1,998,377
Total liabilities and shareholders' equity	$	4,927,163	$	5,078,750
Book value per common share  (a)	$	34.58	$	34.04

(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: December 31, 2008 - 269,884; December 31, 2007 - 55,910

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Platinum Underwriters Holdings, Ltd.
Consolidated Statements of Operations and Comprehensive Income (Unaudited)
For the Three and Twelve Months Ended December 31, 2008 and 2007
(amounts in thousands, except per share amounts)
	Three Months Ended						Twelve Months Ended
	December 31, 2008			December 31, 2007			December 31, 2008			December 31, 2007
Revenue
Net premiums earned	$	274,238			302,012			1,114,796		$	1,173,088
Net investment income		42,537			53,556			186,574			214,222
Net realized gains (losses) on investments		42,931			1,655			26,568			(1,222	)
Other income (expense)		(195	)		(1,884	)		337			(2,173	)
Total revenue		359,511			355,339			1,328,275			1,383,915
Expenses
Net losses and LAE		193,775			145,220			718,233			655,487
Net acquisition expenses		59,716			63,938			242,715			220,330
Net change in fair value of derivatives		5,700			2,007			14,114			5,007
Other underwriting expenses		14,275			18,159			63,744			74,312
Corporate expenses		5,990			7,959			24,464			29,281
Net foreign currency exchange (gains) losses		3,497			112			6,760			(2,775	)
Interest expense		4,753			5,102			19,006			21,470
Total expenses		287,706			242,497			1,089,036			1,003,112
Income before income tax expense		71,805			112,842			239,239			380,803
Income tax expense		7,753			10,650			12,999			23,825
Net income		64,052			102,192			226,240			356,978
Preferred dividends		2,602			2,602			10,408			10,408
Net income attributable to common shareholders	$	61,450			99,590			215,832		$	346,570
Basic
Weighted average common shares outstanding		47,363			55,838			49,310			58,631
Basic earnings per common share	$	1.30			1.78			4.38		$	5.91
Diluted
Adjusted weighted average common shares outstanding		54,499			63,761			56,855			66,404
Diluted earnings per common share	$	1.18			1.60			3.98		$	5.38
Comprehensive income
Net income	$	64,052			102,192			226,240		$	356,978
Other comprehensive income (loss), net of deferred taxes		(18,730	)		19,772			(164,648	)		19,950
Comprehensive income	$	45,322			121,964			61,592		$	376,928

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Platinum Underwriters Holdings, Ltd.
Segment Reporting
For the Three Months Ended December 31, 2008 and 2007
($ in thousands)
Three Months Ended December 31, 2008 (Unaudited)	Property and Marine			Casualty			Finite Risk			Total
Segment underwriting results
Net premiums written	$	138,546			94,789			3,957		$	237,292
Net premiums earned		152,241			118,241			3,756			274,238
Net losses and LAE		118,035			84,818			(9,078	)		193,775
Net acquisition expenses		21,697			27,041			10,978			59,716
Other underwriting expenses		8,718			5,248			309			14,275
Total underwriting expenses		148,450			117,107			2,209			267,766
Segment underwriting income	$	3,791			1,134			1,547			6,472
Net investment income											42,537
Net realized gains on investments											42,931
Net change in fair value of derivatives											(5,700	)
Net foreign currency exchange losses											(3,497	)
Other expense											(195	)
Corporate expenses not allocated to segments											(5,990	)
Interest expense											(4,753	)
Income before income tax expense										$	71,805
GAAP underwriting ratios:
Loss and LAE		77.5	%		71.7	%		(241.7	%)		70.7	%
Acquisition expense		14.3	%		22.9	%		292.3	%		21.8	%
Other underwriting expense		5.7	%		4.4	%		8.2	%		5.2	%
Combined		97.5	%		99.0	%		58.8	%		97.7	%
Three Months Ended December 31, 2007
Segment underwriting results
Net premiums written	$	105,581			128,660			6,794		$	241,035
Net premiums earned		129,065			166,054			6,893			302,012
Net losses and LAE		46,133			103,961			(4,874	)		145,220
Net acquisition expenses		17,603			40,470			5,865			63,938
Other underwriting expenses		9,726			7,731			702			18,159
Total underwriting expenses		73,462			152,162			1,693			227,317
Segment underwriting income	$	55,603			13,892			5,200			74,695
Net investment income											53,556
Net realized gains on investments											1,655
Net change in fair value of derivatives											(2,007	)
Net foreign currency exchange losses											(112	)
Other expense											(1,884	)
Corporate expenses not allocated to segments											(7,959	)
Interest expense											(5,102	)
Income before income tax expense										$	112,842
GAAP underwriting ratios:
Loss and LAE		35.7	%		62.6	%		(70.7	%)		48.1	%
Acquisition expense		13.6	%		24.4	%		85.1	%		21.2	%
Other underwriting expense		7.5	%		4.7	%		10.2	%		6.0	%
Combined		56.8	%		91.7	%		24.6	%		75.3	%

The GAAP underwriting ratios are calculated by dividing each item above by net premiums earned.

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Platinum Underwriters Holdings, Ltd.
Segment Reporting
For the Twelve Months Ended December 31, 2008 and 2007
($ in thousands)
Twelve Months Ended December 31, 2008 (Unaudited)	Property and Marine			Casualty			Finite Risk			Total
Segment underwriting results
Net premiums written	$	593,087			430,084			14,394		$	1,037,565
Net premiums earned		599,110			503,300			12,386			1,114,796
Net losses and LAE		397,200			337,051			(16,018	)		718,233
Net acquisition expenses		90,816			125,934			25,965			242,715
Other underwriting expenses		38,492			23,982			1,270			63,744
Total underwriting expenses		526,508			486,967			11,217			1,024,692
Segment underwriting income	$	72,602			16,333			1,169			90,104
Net investment income											186,574
Net realized gains on investments											26,568
Net change in fair value of derivatives											(14,114	)
Net foreign currency exchange losses											(6,760	)
Other income											337
Corporate expenses not allocated to segments											(24,464	)
Interest expense											(19,006	)
Income before income tax expense										$	239,239
GAAP underwriting ratios:
Loss and LAE		66.3	%		67.0	%		(129.3	%)		64.4	%
Acquisition expense		15.2	%		25.0	%		209.6	%		21.8	%
Other underwriting expense		6.4	%		4.8	%		10.3	%		5.7	%
Combined		87.9	%		96.8	%		90.6	%		91.9	%
Twelve Months Ended December 31, 2007
Segment underwriting results
Net premiums written	$	505,010			584,605			30,192		$	1,119,807
Net premiums earned		502,291			637,856			32,941			1,173,088
Net losses and LAE		195,398			444,701			15,388			655,487
Net acquisition expenses		68,351			145,969			6,010			220,330
Other underwriting expenses		42,422			29,194			2,696			74,312
Total underwriting expenses		306,171			619,864			24,094			950,129
Segment underwriting income	$	196,120			17,992			8,847			222,959
Net investment income											214,222
Net realized losses on investments											(1,222	)
Net change in fair value of derivatives											(5,007	)
Net foreign currency exchange gains											2,775
Other expense											(2,173	)
Corporate expenses not allocated to segments											(29,281	)
Interest expense											(21,470	)
Income before income tax expense										$	380,803
GAAP underwriting ratios:
Loss and LAE		38.9	%		69.7	%		46.7	%		55.9	%
Acquisition expense		13.6	%		22.9	%		18.2	%		18.8	%
Other underwriting expense		8.4	%		4.6	%		8.2	%		6.3	%
Combined		60.9	%		97.2	%		73.1	%		81.0	%

The GAAP underwriting ratios are calculated by dividing each item above by net premiums earned.

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