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

Exhibit 99.1

Contact:	Lily Outerbridge
	Investor Relations
	(441) 298-0760

PLATINUM UNDERWRITERS HOLDINGS, LTD. REPORTS

FINANCIAL RESULTS FOR THE THIRD QUARTER 2010

HAMILTON, BERMUDA, OCTOBER 20, 2010 – Platinum Underwriters Holdings, Ltd. (NYSE: PTP) today reported net income of $93.7 million and diluted earnings per common share of $2.13 for the quarter ended September 30, 2010.

The results for the quarter include net premiums earned of $183.4 million, net favorable development of $34.6 million and net investment income and net realized gains on investments of $75.4 million.

Michael D. Price, Platinum’s Chief Executive Officer, commented, “Our book value per common share grew by 7.6 % in the quarter to $55.13 as of September 30, 2010.  These results reflect $28.5 million in estimated net losses from the New Zealand earthquake, favorable reserve development, strong investment performance on a total return basis, active capital management and the favorable impact of a change to our estimate of administrative costs of managing claims.”

Mr. Price added, “Despite an overcapitalized reinsurance marketplace, we have developed an acceptable portfolio of treaty reinsurance risks.  Through active management, we have better aligned our capital base with business opportunities.”

Results for the quarter ended September 30, 2010 are summarized as follows:

·   Net income was $93.7 million and diluted earnings per common share were $2.13.

·   Net premiums written were $199.4 million and net premiums earned were $183.4 million.

·   GAAP combined ratio was 68.1%.

·   Net investment income was $31.1 million.

·   Net realized gains on investments were $44.3 million.

Results for the quarter ended September 30, 2010 as compared with the quarter ended September 30, 2009 are summarized as follows:

·   Net income decreased $15.8 million (or 14.4%).

·   Net premiums written decreased $44.2 million (or 18.1%) and net premiums earned decreased $46.1 million (or 20.1%).

·   GAAP combined ratio decreased 4.2 percentage points.

·   Net investment income decreased $13.7 million (or 30.5%).

·   Net realized gains on investments increased $21.8 million.

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Net premiums written for Platinum’s Property and Marine, Casualty and Finite Risk segments for the quarter ended September 30, 2010 were $114.9 million, $80.3 million and $4.2 million, respectively, representing 57.6%, 40.3% and 2.1%, respectively, of total net premiums written. Combined ratios for these segments were 94.2%, 36.9% and 55.6%, respectively. Compared with the quarter ended September 30, 2009, net premiums written decreased $32.6 million (or 22.1%), $8.1 million (or 9.2%) and $3.5 million (or 45.5%) in the Property and Marine, Casualty and Finite Risk segments, respectively.

Results for the nine months ended September 30, 2010 are summarized as follows:

·   Net income was $233.2 million and diluted earnings per common share were $5.04.

·   Net premiums written were $598.6 million and net premiums earned were $595.0 million.

·   GAAP combined ratio was 79.3%.

·   Net investment income was $104.0 million.

·   Net realized gains on investments were $99.3 million.

Results for the nine months ended September 30, 2010 as compared with the nine months ended September 30, 2009 are summarized as follows:

·   Net income decreased $59.3 million (or 20.3%).

·   Net premiums written decreased $98.4 million (or 14.1%) and net premiums earned decreased $114.7 million (or 16.2%).

·   GAAP combined ratio increased 2.7 percentage points.

·   Net investment income decreased $19.1 million (or 15.5%).

·   Net realized gains on investments increased $45.4 million.

Net premiums written for Platinum’s Property and Marine, Casualty and Finite Risk segments for the nine months ended September 30, 2010 were $335.8 million, $246.7 million and $16.1 million, respectively, representing 56.1%, 41.2% and 2.7%, respectively, of total net premiums written. Combined ratios for these segments were 93.1%, 59.2% and 118.4%, respectively. Compared with the nine months ended September 30, 2009, net premiums written decreased $66.8 million (or 16.6%), $27.2 million (or 9.9%) and $4.4 million (or 21.5%) in the Property and Marine, Casualty and Finite Risk segments, respectively.

Total assets were $4.94 billion as of September 30, 2010, a decrease of $85.3 million (or 1.7%) from $5.02 billion as of December 31, 2009. Fixed maturity investments and cash and cash equivalents were $4.54 billion as of September 30, 2010, an increase of $169.5 million (or 3.9%) from $4.37 billion as of December 31, 2009.

Shareholders’ equity was $2.16 billion as of September 30, 2010, an increase of $87.1 million (or 4.2%) from $2.08 billion as of December 31, 2009.  Book value per common share was $55.13 as of September 30, 2010 based on 39.3 million common shares outstanding, an increase of $9.91 (or 21.9%) from $45.22 as of December 31, 2009 based on 45.9 million common shares outstanding.  During the three months ended September 30, 2010, the Company repurchased 2,228,611 common shares for approximately $91.8 million at a weighted average cost, including commissions, of $41.19 per share.  During the nine months ended September 30, 2010, the Company repurchased an aggregate of 7,986,517 common shares for approximately $304.6 million at a weighted average cost, including commissions, of $38.14 per share.

The Company also reported that the previously announced purchase of 6,000,000 options held by The Travelers Companies, Inc. for $98.5 million closed on October 18, 2010.

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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, October 21, 2010 at 8:00 a.m. Eastern time.  The call may be accessed by dialing 888-809-3657 (US callers) or 913-312-0676 (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, October 21, 2010 until midnight Eastern time on Thursday, October 28, 2010.  To access the replay by telephone, dial 888-203-1112 (US callers) or 719-457-0820 (international callers) and specify passcode 2242819. 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 shareh olders’ 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.  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 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 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 busine ss 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 September 30, 2010 and December 31, 2009
($ in thousands, except per share data)
	September 30,		December 31,
	2010		2009
	(Unaudited)
Assets
Investments	$	2,874,351	$	3,660,515
Cash, cash equivalents and short-term investments		1,664,833		709,134
Accrued investment income		27,315		29,834
Reinsurance premiums receivable		175,914		269,912
Reinsurance balances (prepaid and recoverable)		24,253		29,710
Funds held by ceding companies		82,428		84,478
Deferred acquisition costs		39,841		40,427
Other assets		47,324		197,568
Total assets	$	4,936,259	$	5,021,578
Liabilities
Unpaid losses and loss adjustment expenses	$	2,194,173	$	2,349,336
Unearned premiums		180,432		180,609
Debt obligations		250,000		250,000
Commissions payable		58,460		90,461
Other liabilities		88,321		73,441
Total liabilities		2,771,386		2,943,847
Total shareholders' equity		2,164,873		2,077,731
Total liabilities and shareholders' equity	$	4,936,259	$	5,021,578
Book value per common share (a)	$	55.13	$	45.22

(a) Book value per common share is determined by dividing shareholders' equity by actual common shares outstanding.

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Platinum Underwriters Holdings, Ltd.
Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited)
For the Three and Nine Months Ended September 30, 2010 and 2009
($ and amounts in thousands, except per share data)
	Three Months Ended						Nine Months Ended
	September 30,			September 30,			September 30,			September 30,
	2010			2009			2010			2009
Revenue
Net premiums earned	$	183,404			229,538			595,014		$	709,752
Net investment income		31,078			44,747			103,955			123,070
Net realized gains (losses) on investments		44,351			22,553			99,297			53,917
Net impairment losses on investments		(4,048	)		(5,075	)		(25,560	)		(11,739	)
Other income (expense)		(171	)		(1,222	)		(42	)		4,222
Total revenue		254,614			290,541			772,664			879,222
Expenses
Net losses and loss adjustment expenses		79,094			99,240			315,137			368,349
Net acquisition expenses		32,517			50,009			113,934			128,503
Net changes in fair value of derivatives		4,154			4,305			6,499			6,828
Operating expenses		20,004			25,210			61,905			68,984
Net foreign currency exchange losses (gains)		235			(616	)		(1,061	)		(157	)
Interest expense		4,763			4,757			14,232			14,268
Total expenses		140,767			182,905			510,646			586,775
Income before income tax expense (benefit)		113,847			107,636			262,018			292,447
Income tax expense (benefit)		20,185			(1,832	)		28,796			(73	)
Net income		93,662			109,468			233,222			292,520
Preferred dividends		-			-			-			1,301
Net income attributable to common shareholders	$	93,662			109,468			233,222		$	291,219
Basic
Weighted average common shares outstanding		40,485			49,660			43,029			49,955
Basic earnings per common share	$	2.31			2.20			5.42		$	5.83
Diluted
Adjusted weighted average common shares outstanding		44,044			52,039			46,263			52,547
Diluted earnings per common share	$	2.13			2.10			5.04		$	5.57
Comprehensive income
Net income	$	93,662			109,468			233,222		$	292,520
Other comprehensive income, net of deferred taxes		45,895			106,570			128,600			169,952
Comprehensive income	$	139,557			216,038			361,822		$	462,472

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Platinum Underwriters Holdings, Ltd.
Segment Reporting (Unaudited)
For the Three Months Ended September 30, 2010 and 2009
($ in thousands)
Three Months Ended September 30, 2010
Segment underwriting results	Property and Marine			Casualty			Finite Risk			Total
Net premiums written	$	114,885			80,362			4,180		$	199,427
Net premiums earned		98,342			80,437			4,625			183,404
Net losses and loss adjustment expenses		70,657			8,156			281			79,094
Net acquisition expenses		14,140			16,395			1,982			32,517
Other underwriting expenses		7,905			5,171			307			13,383
Total underwriting expenses		92,702			29,722			2,570			124,994
Segment underwriting income (loss)	$	5,640			50,715			2,055			58,410
Net investment income											31,078
Net realized gains (losses) on investments											44,351
Net impairment losses on investments											(4,048	)
Net changes in fair value of derivatives											(4,154	)
Net foreign currency exchange gains (losses)											(235	)
Other income (expense)											(171	)
Corporate expenses not allocated to segments											(6,621	)
Interest expense											(4,763	)
Income before income tax expense (benefit)										$	113,847
GAAP underwriting ratios:
Net loss and loss adjustment expense		71.8	%		10.1	%		6.1	%		43.1	%
Net acquisition expense		14.4	%		20.4	%		42.9	%		17.7	%
Other underwriting expense		8.0	%		6.4	%		6.6	%		7.3	%
Combined		94.2	%		36.9	%		55.6	%		68.1	%
Three Months Ended September 30, 2009
Segment underwriting results		Property and Marine			Casualty			Finite Risk			Total
Net premiums written	$	147,448			88,467			7,675		$	243,590
Net premiums earned		132,567			90,591			6,380			229,538
Net losses and loss adjustment expenses		46,307			59,243			(6,310	)		99,240
Net acquisition expenses		16,821			19,393			13,795			50,009
Other underwriting expenses		9,643			6,751			342			16,736
Total underwriting expenses		72,771			85,387			7,827			165,985
Segment underwriting income (loss)	$	59,796			5,204			(1,447	)		63,553
Net investment income											44,747
Net realized gains (losses) on investments											22,553
Net impairment losses on investments											(5,075	)
Net changes in fair value of derivatives											(4,305	)
Net foreign currency exchange gains (losses)											616
Other income (expense)											(1,222	)
Corporate expenses not allocated to segments											(8,474	)
Interest expense											(4,757	)
Income before income tax expense (benefit)										$	107,636
GAAP underwriting ratios:
Net loss and loss adjustment expense		34.9	%		65.4	%		(98.9	%)		43.2	%
Net acquisition expense		12.7	%		21.4	%		216.2	%		21.8	%
Other underwriting expense		7.3	%		7.5	%		5.4	%		7.3	%
Combined		54.9	%		94.3	%		122.7	%		72.3	%
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 (Unaudited)
For the Nine Months Ended September 30, 2010 and 2009
($ in thousands)
Nine Months Ended September 30, 2010
Segment underwriting results	Property and Marine			Casualty			Finite Risk			Total
Net premiums written	$	335,775			246,741			16,056		$	598,572
Net premiums earned		326,698			253,505			14,811			595,014
Net losses and loss adjustment expenses		232,294			79,744			3,099			315,137
Net acquisition expenses		47,589			52,874			13,471			113,934
Other underwriting expenses		24,324			17,295			958			42,577
Total underwriting expenses		304,207			149,913			17,528			471,648
Segment underwriting income (loss)	$	22,491			103,592			(2,717	)		123,366
Net investment income											103,955
Net realized gains (losses) on investments											99,297
Net impairment losses on investments											(25,560	)
Net changes in fair value of derivatives											(6,499	)
Net foreign currency exchange gains (losses)											1,061
Other income (expense)											(42	)
Corporate expenses not allocated to segments											(19,328	)
Interest expense											(14,232	)
Income before income tax expense (benefit)										$	262,018
GAAP underwriting ratios:
Net loss and loss adjustment expense		71.1	%		31.5	%		20.9	%		53.0	%
Net acquisition expense		14.6	%		20.9	%		91.0	%		19.1	%
Other underwriting expense		7.4	%		6.8	%		6.5	%		7.2	%
Combined		93.1	%		59.2	%		118.4	%		79.3	%
Nine Months Ended September 30, 2009
Segment underwriting results		Property and Marine			Casualty			Finite Risk			Total
Net premiums written	$	402,588			273,940			20,451		$	696,979
Net premiums earned		394,554			299,712			15,486			709,752
Net losses and loss adjustment expenses		186,565			179,426			2,358			368,349
Net acquisition expenses		47,711			66,020			14,772			128,503
Other underwriting expenses		26,925			18,550			1,042			46,517
Total underwriting expenses		261,201			263,996			18,172			543,369
Segment underwriting income (loss)	$	133,353			35,716			(2,686	)		166,383
Net investment income											123,070
Net realized gains (losses) on investments											53,917
Net impairment losses on investments											(11,739	)
Net changes in fair value of derivatives											(6,828	)
Net foreign currency exchange gains (losses)											157
Other income (expense)											4,222
Corporate expenses not allocated to segments											(22,467	)
Interest expense											(14,268	)
Income before income tax expense (benefit)										$	292,447
GAAP underwriting ratios:
Net loss and loss adjustment expense		47.3	%		59.9	%		15.2	%		51.9	%
Net acquisition expense		12.1	%		22.0	%		95.4	%		18.1	%
Other underwriting expense		6.8	%		6.2	%		6.7	%		6.6	%
Combined		66.2	%		88.1	%		117.3	%		76.6	%
The GAAP underwriting ratios are calculated by dividing each item above by net premiums earned.

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