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 RECORD YEAR ENDED DECEMBER 31, 2009 FINANCIAL RESULTS

HAMILTON, BERMUDA, FEBRUARY 17, 2010 – Platinum Underwriters Holdings, Ltd. (NYSE: PTP) today reported net income of $383.3 million, or a record $7.33 per diluted common share, for the year ended December 31, 2009.

The results for the quarter ended December 31, 2009 include net income of $90.8 million or $1.76 per diluted common share.  Net premiums earned were $227.6 million, net favorable development was $35.0 million and net investment income and net realized gains on investments were $65.6 million for the quarter.

Michael D. Price, Platinum’s Chief Executive Officer, commented, “Platinum performed very well in 2009 producing record earnings per share and record growth in book value per share.  Our results reflect a disciplined approach to underwriting, investing and capital management aided by a low level of major catastrophe loss activity. Our book value per share was $45.22 as of December 31, 2009, an increase of 3.8% from September 30, 2009 and 30.8% from December 31, 2008.”

Mr. Price added, “Absent a major event in the insurance or capital markets, we expect the reinsurance marketplace to show deterioration over the course of 2010.  We will continue with our strategy of responding to changes in market conditions and underwriting for profitability, not market share. We believe 2010 will be a challenging year from an underwriting perspective, but market conditions should allow us to participate selectively in a range of reinsurance classes.”

Results for the quarter ended December 31, 2009 are summarized as follows:

·   Net income was $90.8 million or $1.76 per diluted common share.

·   Net premiums written were $200.9 million and net premiums earned were $227.6 million.

·   GAAP combined ratio was 77.3%.

·   Net investment income was $40.9 million.

·   Net realized gains on investments were $24.7 million.

Results for the quarter ended December 31, 2009 as compared with the quarter ended December 31, 2008 are summarized as follows:

·   Net income increased $26.7 million (or 41.7%).

·   Net premiums written decreased $36.4 million (or 15.4%) and net premiums earned decreased $46.7 million (or 17.0%).

·   GAAP combined ratio decreased 20.4 percentage points.

·   Net investment income decreased $1.7 million (or 3.9%).

·   Net realized gains on investments decreased $35.8 million.

Net premiums written for Platinum’s Property and Marine, Casualty and Finite Risk segments for the quarter ended December 31, 2009 were $114.4 million, $82.6 million and $3.9 million, respectively, representing 57.0%, 41.1% and 1.9%, respectively, of total net premiums written. Combined ratios for these segments were 70.0%, 86.4% and 112.3%, respectively. Compared with the quarter ended December 31, 2008, net premiums written decreased $24.1 million (or 17.4%), $12.2 million (or 12.9%) and $0.07 million (or 1.8%) in the Property and Marine, Casualty and Finite Risk segments, respectively.

Results for the year ended December 31, 2009 are summarized as follows:

·   Net income was $383.3 million or $7.33 per diluted common share.

·   Net premiums written were $897.8 million and net premiums earned were $937.3 million.

·   GAAP combined ratio was 76.7%.

·   Net investment income was $163.9 million.

·   Net realized gains on investments were $78.6 million.

Results for the year ended December 31, 2009 as compared with the year ended December 31, 2008 are summarized as follows:

·   Net income increased $157.1 million (or 69.4%).

·   Net premiums written decreased $139.7 million (or 13.5%) and net premiums earned decreased $177.5 million (or 15.9%).

·   GAAP combined ratio decreased 15.2 percentage points.

·   Net investment income decreased $22.6 million (or 12.1%).

·   Net realized gains on investments increased $21.4 million.

Net premiums written for Platinum’s Property and Marine, Casualty and Finite Risk segments for the year ended December 31, 2009 were $517.0 million, $356.5 million and $24.3 million, respectively, representing 57.6%, 39.7% and 2.7%, respectively, of total net premiums written.  Combined ratios for these segments were 67.2%, 87.6% and 116.2%, respectively.  Compared with the year ended December 31, 2008, net premiums written decreased $76.1 million (or 12.8%) and $73.6 million (or 17.1%) in the Property and Marine and Casualty segments, respectively, and increased $9.9 million (or 69.1%) in the Finite Risk segment.

Total assets were $5.02 billion as of December 31, 2009, an increase of $94.4 million (or 1.9%) from $4.93 billion as of December 31, 2008.  Cash, cash equivalents and fixed maturity investments were $4.37 billion as of December 31, 2009, an increase of $109.7 million (or 2.6%) from $4.26 billion as of December 31, 2008.

Shareholders’ equity was $2.08 billion as of December 31, 2009, an increase of $268.3 million (or 14.8%) from $1.81 billion as of December 31, 2008.  Book value per common share was $45.22 as of December 31, 2009 based on 45.9 million common shares outstanding, an increase of $10.64 (or 30.8%) from $34.58 as of December 31, 2008 based on 47.5 million common shares outstanding.  Book value reflects common share repurchases of $252.3 million at a weighted average cost, including commissions, of $32.13 per share during the year ended December 31, 2009.

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 18, 2010 at 8:00 a.m. Eastern time.  The call can be accessed by dialing 888-264-8893 (US callers) or 913-312-1430 (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 18, 2010 until midnight Eastern time on Thursday, February 25, 2010.  To access the replay by telephone, dial 888-203-1112 (US callers) or 719-457-0820 (international callers) and specify passcode: 5494228.  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’s operating subsidiaries have financial strength ratings of A (Excellent) from A.M. Best and A (Strong) from Standard & Poor’s.  For further information, please visit Platinum’s website at www.platinumre.com.

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 press release 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. and Standard & Poor’s ratings, our ability to raise capital on acceptable terms if necessary, the cyclicality of the property and casualty reinsurance business, the highly competitive nature of the property and casualty reinsurance industry, 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, 2009 and December 31, 2008
(amounts in thousands, except per share amounts)
	December 31, 2009		December 31, 2008
	(Unaudited)
Assets
Investments	$	3,660,515	$	3,371,886
Cash, cash equivalents and short-term investments		709,134		888,053
Reinsurance premiums receivable		269,912		307,539
Accrued investment income		29,834		29,041
Reinsurance balances (prepaid and recoverable)		29,710		23,310
Deferred acquisition costs		40,427		50,719
Funds held by ceding companies		84,478		136,278
Other assets		197,568		120,337
Total assets	$	5,021,578	$	4,927,163
Liabilities
Unpaid losses and loss adjustment expenses	$	2,349,336	$	2,463,506
Unearned premiums		180,609		218,890
Debt obligations		250,000		250,000
Commissions payable		90,461		125,551
Other liabilities		73,441		59,819
Total liabilities		2,943,847		3,117,766
Total shareholders' equity		2,077,731		1,809,397
Total liabilities and shareholders' equity	$	5,021,578	$	4,927,163
Book value per common share  (a)	$	45.22	$	34.58

(a) Book value per common share is determined by dividing shareholders' equity, excluding capital attributable to preferred shares, by actual common shares outstanding.

Platinum Underwriters Holdings, Ltd.
Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited)
For the Three and Twelve Months Ended December 31, 2009 and 2008
(amounts in thousands, except per share amounts)
	Three Months Ended						Twelve Months Ended
	December 31, 2009			December 31, 2008			December 31, 2009			December 31, 2008
Revenue
Net premiums earned	$	227,584			274,238			937,336		$	1,114,796
Net investment income		40,871			42,537			163,941			186,574
Net realized gains on investments		24,713			60,521			78,630			57,254
Net impairment losses		(5,864	)		(17,590	)		(17,603	)		(30,686	)
Other (expense) income		(1,138	)		(195	)		3,084			337
Total revenue		286,166			359,511			1,165,388			1,328,275
Expenses
Net losses and LAE		109,993			193,775			478,342			718,233
Net acquisition expenses		47,916			59,716			176,419			242,715
Net changes in fair value of derivatives		2,913			5,700			9,741			14,114
Operating expenses		25,698			20,265			94,682			88,208
Net foreign currency exchange (gains) losses		(242	)		3,497			(399	)		6,760
Interest expense		4,759			4,753			19,027			19,006
Total expenses		191,037			287,706			777,812			1,089,036
Income before income tax expense		95,129			71,805			387,576			239,239
Income tax expense		4,358			7,753			4,285			12,999
Net income		90,771			64,052			383,291			226,240
Preferred dividends		-			2,602			1,301			10,408
Net income attributable to common shareholders	$	90,771			61,450			381,990		$	215,832
Basic
Weighted average common shares outstanding		48,294			47,363			49,535			49,310
Basic earnings per common share	$	1.88			1.30			7.71		$	4.38
Diluted
Adjusted weighted average common shares outstanding		51,466			54,499			52,315			56,855
Diluted earnings per common share	$	1.76			1.18			7.33		$	3.98
Comprehensive income
Net income	$	90,771			64,052			383,291		$	226,240
Other comprehensive income (loss), net of deferred taxes		(36,726	)		(18,730	)		133,226			(164,648	)
Comprehensive income	$	54,045			45,322			516,517		$	61,592

Platinum Underwriters Holdings, Ltd.
Segment Reporting
For the Three Months Ended December 31, 2009 and 2008
($ in thousands)
Three Months Ended December 31, 2009 (Unaudited)
Segment underwriting results	Property and Marine			Casualty			Finite Risk			Total
Net premiums written	$	114,423			82,548			3,884		$	200,855
Net premiums earned		133,934			89,189			4,461			227,584
Net losses and LAE		64,081			47,085			(1,173	)		109,993
Net acquisition expenses		19,281			22,821			5,814			47,916
Other underwriting expenses		10,406			7,094			370			17,870
Total underwriting expenses		93,768			77,000			5,011			175,779
Segment underwriting income (loss)	$	40,166			12,189			(550	)		51,805
Net investment income											40,871
Net realized gains on investments											24,713
Net impairment losses											(5,864	)
Net changes in fair value of derivatives											(2,913	)
Net foreign currency exchange gains											242
Other expense											(1,138	)
Corporate expenses not allocated to segments											(7,828	)
Interest expense											(4,759	)
Income before income tax expense										$	95,129
GAAP underwriting ratios:
Loss and LAE		47.8	%		52.8	%		(26.3	%)		48.3	%
Acquisition expense		14.4	%		25.6	%		130.3	%		21.1	%
Other underwriting expense		7.8	%		8.0	%		8.3	%		7.9	%
Combined		70.0	%		86.4	%		112.3	%		77.3	%
Three Months Ended December 31, 2008
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											60,521
Net impairment losses											(17,590	)
Net changes 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	%
The GAAP underwriting ratios are calculated by dividing each item above by net premiums earned.

Platinum Underwriters Holdings, Ltd.
Segment Reporting
For the Twelve Months Ended December 31, 2009 and 2008
($ in thousands)
Twelve Months Ended December 31, 2009 (Unaudited)
Segment underwriting results	Property and Marine			Casualty			Finite Risk			Total
Net premiums written	$	517,011			356,488			24,335		$	897,834
Net premiums earned		528,488			388,901			19,947			937,336
Net losses and LAE		250,646			226,511			1,185			478,342
Net acquisition expenses		66,992			88,841			20,586			176,419
Other underwriting expenses		37,331			25,644			1,412			64,387
Total underwriting expenses		354,969			340,996			23,183			719,148
Segment underwriting income (loss)	$	173,519			47,905			(3,236	)		218,188
Net investment income											163,941
Net realized gains on investments											78,630
Net impairment losses											(17,603	)
Net changes in fair value of derivatives											(9,741	)
Net foreign currency exchange gains											399
Other income											3,084
Corporate expenses not allocated to segments											(30,295	)
Interest expense											(19,027	)
Income before income tax expense										$	387,576
GAAP underwriting ratios:
Loss and LAE		47.4	%		58.2	%		5.9	%		51.0	%
Acquisition expense		12.7	%		22.8	%		103.2	%		18.8	%
Other underwriting expense		7.1	%		6.6	%		7.1	%		6.9	%
Combined		67.2	%		87.6	%		116.2	%		76.7	%
Twelve Months Ended December 31, 2008
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											57,254
Net impairment losses											(30,686	)
Net changes 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	%
The GAAP underwriting ratios are calculated by dividing each item above by net premiums earned.