EXHIBIT 99.2 [PLATINUM (TM) UNDERWRITERS HOLDINGS, LTD. LOGO] Financial Supplement Financial Information as of September 30, 2004 (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 SEPTEMBER 30, 2004 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 22 PLATINUM UNDERWRITERS HOLDINGS, LTD. TABLE OF CONTENTS SEPTEMBER 30, 2004 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 - Three Month Summary 11 b. Segment Reporting - Nine Month Summary 12 c. Property and Marine Segment - by Quarter 13 d. Casualty Segment - by Quarter 14 e. Finite Risk Segment - by Quarter 15 Net Premiums Written Data: a. Net Premiums Written - Supplemental Information 16 b. Premiums by Line of Business - Three Month Summary 17 c. Premiums by Line of Business - Nine Month Summary 18 Other Company Data: a. Company Ratios, Share Data, Ratings 19 Investments: a. Investment Portfolio 20 b. Investment Portfolio - Net Realized Capital Gains (Losses) 21 Loss Reserves: a. Loss Analysis 22 Page 2 of 22 PLATINUM UNDERWRITERS HOLDINGS, LTD. CONDENSED CONSOLIDATED BALANCE SHEETS SEPTEMBER 30, 2004 ($ IN THOUSANDS, EXCEPT PER SHARE DATA) September 30, June 30, March 31, December 31, September 30, 2004 2004 2004 2003 2003 ------------- ----------- ----------- ------------ ------------- ASSETS Investments and cash and cash equivalents $2,374,310 2,154,389 2,027,093 1,790,509 $1,756,685 Receivables 638,463 549,732 643,970 487,441 478,303 Accrued investment income 26,613 20,707 22,805 17,492 21,360 Reinsurance balances (prepaid and recoverable) 5,176 10,739 17,430 11,231 10,064 Deferred acquisition costs 142,000 122,146 115,924 79,307 89,062 Other assets 107,751 100,317 80,522 95,881 80,158 ---------- --------- --------- --------- ---------- Total assets $3,294,313 2,958,030 2,907,744 2,481,861 $2,435,632 ========== ========= ========= ========= ========== LIABILITIES Unpaid losses and loss adjustment expenses $1,222,364 896,449 835,734 736,934 $ 660,790 Unearned premiums 537,251 483,773 471,359 305,985 358,995 Debt obligations 137,500 137,500 137,500 137,500 137,500 Commissions payable 220,902 207,306 228,964 176,310 155,724 Other liabilities 87,767 95,310 91,170 57,929 95,617 ---------- --------- --------- --------- ---------- Total liabilities 2,205,784 1,820,338 1,764,727 1,414,658 1,408,626 TOTAL SHAREHOLDERS' EQUITY 1,088,529 1,137,692 1,143,017 1,067,203 1,027,006 ---------- --------- --------- --------- ---------- Total liabilities and shareholders' equity $3,294,313 2,958,030 2,907,744 2,481,861 $2,435,632 ========== ========= ========= ========= ========== ---------- --------- --------- --------- ---------- BOOK VALUE PER SHARE $ 25.30 26.29 26.42 24.79 $ 23.87 ========== ========= ========= ========= ========== Page 3 of 22 PLATINUM UNDERWRITERS HOLDINGS, LTD. CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - SUMMARY (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) Three Months Ended Nine Months Ended --------------------------------- ------------------------------- September 30, September 30, September 30, September 30, 2004 2003 2004 2003 ------------ ------------- ------------- ------------- REVENUES Net premiums earned $ 383,090 $ 272,265 $ 1,014,999 $ 789,711 Net investment income 21,429 14,780 58,290 42,414 Net realized capital gains 2,262 1,508 1,435 2,771 Other income 1,021 544 2,137 4,444 ----------- ----------- ----------- ----------- Total revenues 407,802 289,097 1,076,861 839,340 ----------- ----------- ----------- ----------- EXPENSES Losses and loss adjustment expenses 384,724 157,208 736,159 452,813 Acquisition expenses 81,271 60,408 232,886 172,503 Other underwriting expenses 12,234 15,093 43,084 51,953 Corporate expenses 3,166 3,406 10,352 19,710 Net foreign currency exchange losses (gains) (628) (1,356) (326) 3,456 Interest expense 2,322 2,444 6,952 7,150 ----------- ----------- ----------- ----------- Total expenses 483,089 237,203 1,029,107 707,585 ----------- ----------- ----------- ----------- Income (loss) before income tax expense (benefit) (75,287) 51,894 47,754 131,755 Income tax expense (benefit) (5,535) 14,077 12,893 36,747 ----------- ----------- ----------- ----------- NET INCOME (LOSS) $ (69,752) $ 37,817 $ 34,861 $ 95,008 =========== =========== =========== =========== BASIC Weighted average shares outstanding 43,127 43,022 43,186 43,012 Basic earnings per share $ (1.62) $ 0.88 $ 0.81 $ 2.21 DILUTED Weighted average shares outstanding 43,127 48,876 50,422 48,904 Diluted earnings per share $ (1.62) $ 0.81 $ 0.78 $ 2.04 COMPREHENSIVE INCOME (LOSS) Net income (loss) $ (69,752) $ 37,817 $ 34,861 $ 95,008 Other comprehensive income (loss), net of tax 31,007 (11,984) (2,328) 16,008 ----------- ----------- ----------- ----------- Comprehensive income (loss) $ (38,745) $ 25,833 $ 32,533 $ 111,016 =========== =========== =========== =========== Page 4 of 22 PLATINUM UNDERWRITERS HOLDINGS, LTD. CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - BY QUARTER (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) Three Months Ended ------------------------------------------------------------------------ September 30, June 30, March 31, December 31, September 30, 2004 2004 2004 2003 2003 ------------- --------- --------- ------------ ------------- REVENUES Net premiums earned $ 383,090 310,867 321,042 277,817 $ 272,265 Net investment income 21,429 19,377 17,484 15,231 14,780 Net realized capital gains (losses) 2,262 (1,279) 452 10 1,508 Other income 1,021 605 511 (1,100) 544 --------- --------- --------- --------- --------- Total revenues 407,802 329,570 339,489 291,958 289,097 --------- --------- --------- --------- --------- EXPENSES Losses and loss adjustment expenses 384,724 189,466 161,969 131,359 157,208 Acquisition expenses 81,271 62,694 88,921 78,723 60,408 Other underwriting expenses 12,234 15,045 15,804 17,575 15,093 Corporate expenses 3,166 4,217 2,970 3,357 3,406 Net foreign currency exchange losses (gains) (628) 1,168 (866) (3,341) (1,356) Interest expense 2,322 2,324 2,306 2,342 2,444 --------- --------- --------- --------- --------- Total expenses 483,089 274,914 271,104 230,015 237,203 --------- --------- --------- --------- --------- Income (loss) before income tax expense (benefit) (75,287) 54,656 68,385 61,943 51,894 Income tax expense (benefit) (5,535) 4,857 13,571 12,128 14,077 --------- --------- --------- --------- --------- NET INCOME (LOSS) $ (69,752) 49,799 54,814 49,815 $ 37,817 ========= ========= ========= ========= ========= BASIC Weighted average shares outstanding 43,127 43,290 43,143 43,043 43,022 Basic earnings per share $ (1.62) 1.15 1.27 1.16 $ 0.88 DILUTED Weighted average shares outstanding 43,127 50,788 50,984 49,868 48,876 Diluted earnings per share $ (1.62) 1.01 1.10 1.03 $ 0.81 COMPREHENSIVE INCOME (LOSS) Net income (loss) $ (69,752) 49,799 54,814 49,815 $ 37,817 Other comprehensive income (loss), net of tax 31,007 (52,479) 19,144 (7,815) (11,984) --------- --------- --------- --------- --------- Comprehensive income (loss) $ (38,745) (2,680) 73,958 42,000 $ 25,833 ========= ========= ========= ========= ========= Page 5 of 22 PLATINUM UNDERWRITERS HOLDINGS, LTD. COMPUTATION OF BASIC AND DILUTED EARNINGS PER SHARE - SUMMARY (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) Three Months Ended Nine Months Ended ------------------------------- ------------------------------- September 30, September 30, September 30, September 30, 2004 2003 2004 2003 ------------- ------------- ------------- ------------- EARNINGS: BASIC: Net income (loss) $(69,752) $ 37,817 $ 34,861 $ 95,008 -------- -------- -------- -------- Net income (loss) available to common shareholders (69,752) 37,817 34,861 95,008 ======== ======== ======== ======== DILUTED: Net income (loss) (69,752) 37,817 34,861 95,008 Effect of dilutive securities: Equity security units - 1,628 4,577 4,743 -------- -------- -------- -------- Net income (loss) available to common shareholders $(69,752) $ 39,445 $ 39,438 $ 99,751 ======== ======== ======== ======== COMMON SHARES: BASIC: Weighted average shares outstanding 43,127 43,022 43,186 43,012 ======== ======== ======== ======== DILUTED: Weighted average shares outstanding 43,127 43,022 43,186 43,012 Effect of dilutive securities: Share options - 767 2,227 572 Equity security units - 5,087 5,009 5,320 -------- -------- -------- -------- Weighted average, as adjusted 43,127 48,876 50,422 48,904 ======== ======== ======== ======== EARNINGS PER SHARE: Basic $ (1.62) $ 0.88 $ 0.81 $ 2.21 ======== ======== ======== ======== Diluted $ (1.62) $ 0.81 $ 0.78 $ 2.04 ======== ======== ======== ======== Page 6 of 22 PLATINUM UNDERWRITERS HOLDINGS, LTD. COMPUTATION OF BASIC AND DILUTED EARNINGS PER SHARE - BY QUARTER (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) Three Months Ended --------------------------------------------------------------------- September 30, June 30, March 31, December 31, September 30, 2004 2004 2004 2003 2003 ------------- --------- --------- ------------ ------------- EARNINGS: BASIC: Net income (loss) $(69,752) 49,799 54,814 49,815 $ 37,817 -------- -------- -------- -------- -------- Net income (loss) available to common shareholders (69,752) 49,799 54,814 49,815 37,817 ======== ======== ======== ======== ======== DILUTED: Net income (loss) (69,752) 49,799 54,814 49,815 37,817 Effect of dilutive securities: Equity security units - 1,530 1,522 1,547 1,628 -------- -------- -------- -------- -------- Net income (loss) available to common shareholders $(69,752) 51,329 56,336 51,362 $ 39,445 ======== ======== ======== ======== ======== COMMON SHARES: BASIC: Weighted average shares outstanding 43,127 43,290 43,143 43,043 43,022 ======== ======== ======== ======== ======== DILUTED: Weighted average shares outstanding 43,127 43,290 43,143 43,043 43,022 Effect of dilutive securities: Share options - 2,416 2,759 1,816 767 Equity security units - 5,009 5,009 5,009 5,087 Restricted stock units - 73 73 - - -------- -------- -------- -------- -------- Weighted average, as adjusted 43,127 50,788 50,984 49,868 48,876 ======== ======== ======== ======== ======== EARNINGS PER SHARE: Basic $ (1.62) 1.15 1.27 1.16 $ 0.88 ======== ======== ======== ======== ======== Diluted $ (1.62) 1.01 1.10 1.03 $ 0.81 ======== ======== ======== ======== ======== Page 7 of 22 PLATINUM UNDERWRITERS HOLDINGS, LTD. FULLY CONVERTED BOOK VALUE PER SHARE Conversion Multiple Conversion Strike Amount Shares Book Value Price ($000) (000) Per Share ---------- ---------- ---------- --------- Book value as of September 30, 2004 $1,088,529 43,018 $ 25.30 ---------- ---------- --------- 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 0.18 Share options: Shareholder share options: St. Paul Travelers 27.00 162,000 6,000 0.17 RenaissanceRe 27.00 67,500 2,500 0.07 Management options (a) 22.96(b) 98,208 4,278 (0.16) Directors share units - 19 (0.01) ---------- ---------- --------- Fully converted book value as of September 30, 2004 $1,553,737 60,824 $ 25.54 ========== ========== ========= (a) Excludes 220,00 options with a weighted average strike price of $31.60 (b) Weighted average strike price of options with a price below $29.28, the closing share price at September 30, 2004. Page 8 of 22 PLATINUM UNDERWRITERS HOLDINGS, LTD. CONDENSED STATEMENTS OF CASH FLOWS - SUMMARY ($ IN THOUSANDS) Three Months Ended Nine Months Ended ------------------------------- ------------------------------- September 30, September 30, September 30, September 30, 2004 2003 2004 2003 ------------- ------------- ------------- ------------- NET CASH PROVIDED BY OPERATIONS $ 186,228 $ 145,217 $ 623,170 $ 407,111 NET CASH USED IN INVESTING ACTIVITIES (123,475) (123,474) (491,775) (535,341) NET CASH USED IN FINANCING ACTIVITIES (12,633) (2,923) (14,509) (9,803) --------- --------- --------- --------- NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS $ 50,120 $ 18,820 $ 116,886 $(138,033) ========= ========= ========= ========= Page 9 of 22 PLATINUM UNDERWRITERS HOLDINGS, LTD. CONDENSED STATEMENTS OF CASH FLOWS - BY QUARTER ($ IN THOUSANDS) Three Months Ended --------------------------------------------------------------------------- September 30, June 30, March 31, December 31, September 30, 2004 2004 2004 2003 2003 ------------- ---------- ---------- ------------ ------------- NET CASH PROVIDED BY (USED IN) OPERATIONS $ 186,228 216,227 220,715 (23,804) $ 145,217 NET CASH USED IN INVESTING ACTIVITIES (123,475) (240,295) (128,005) (11,422) (123,474) NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES (12,633) (3,228) 1,352 (2,766) (2,923) --------- --------- --------- --------- --------- NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS $ 50,120 (27,296) 94,062 (37,992) $ 18,820 ========= ========= ========= ========= ========= Page 10 of 22 PLATINUM UNDERWRITERS HOLDINGS, LTD. SEGMENT REPORTING - THREE MONTH SUMMARY ($ IN THOUSANDS) Three Months Ended September 30, 2004 ----------------------------------------------------- Property and Marine Casualty Finite Risk Total ------------ ---------- ----------- ---------- Net premiums written $ 120,629 171,967 147,899 $ 440,495 Net premiums earned 135,430 156,512 91,148 383,090 ---------- ---------- ---------- ---------- Losses and loss adjustment expenses 195,495 105,559 83,670 384,724 Acquisition expenses 20,834 38,935 21,502 81,271 Other underwriting expenses 5,956 5,617 661 12,234 ---------- ---------- ---------- ---------- Total underwriting expenses 222,285 150,111 105,833 478,229 ---------- ---------- ---------- ---------- Segment underwriting income (loss) $ (86,855) 6,401 (14,685) (95,139) ---------- ---------- ---------- Net investment income 21,429 Net realized capital gains 2,262 Net foreign currency exchange gains (losses) 628 Other income 1,021 Corporate expenses (3,166) Interest expense (2,322) ---------- Income (loss) before income tax expense (benefit) $ (75,287) ========== GAAP underwriting ratios: Loss and loss adjustment expense 144.4% 67.4% 91.8% 100.4% Acquisition expense 15.4% 24.9% 23.6% 21.2% Other underwriting expense 4.4% 3.6% 0.7% 3.2% ---------- ---------- ---------- ---------- Combined 164.2% 95.9% 116.1% 124.8% ---------- ---------- ---------- ---------- Statutory underwriting ratios: Loss and loss adjustment expense 144.4% 67.4% 91.8% 100.4% Acquisition expense 15.0% 24.7% 27.3% 22.9% Other underwriting expense 4.9% 3.3% 0.4% 2.8% ---------- ---------- ---------- ---------- Combined 164.3% 95.4% 119.5% 126.1% ---------- ---------- ---------- ---------- Three Months Ended September 30, 2003 ------------------------------------------------- Property and Marine Casualty Finite Risk Total ------------ ---------- ----------- ---------- Net premiums written $ 77,114 134,991 69,211$ 281,316 Net premiums earned 81,113 106,298 84,854 272,265 ---------- ---------- ---------- ---------- Losses and loss adjustment expenses 41,237 71,052 44,919 157,208 Acquisition expenses 9,930 29,465 21,013 60,408 Other underwriting expenses 7,412 5,065 2,616 15,093 ---------- ---------- ---------- ---------- Total underwriting expenses 58,579 105,582 68,548 232,709 ---------- ---------- ---------- ---------- Segment underwriting income (loss) $ 22,534 716 16,306 39,556 ---------- ---------- ---------- Net investment income 14,780 Net realized capital gains 1,508 Net foreign currency exchange gains (losses) 1,356 Other income 544 Corporate expenses (3,406) Interest expense (2,444) ---------- Income (loss) before income tax expense (benefit) $ 51,894 ========== GAAP underwriting ratios: Loss and loss adjustment expense 50.8% 66.8% 52.9% 57.7% Acquisition expense 12.2% 27.7% 24.8% 22.2% Other underwriting expense 9.1% 4.8% 3.1% 5.5% ---------- ---------- ---------- ---------- Combined 72.1% 99.3% 80.8% 85.4% ---------- ---------- ---------- ---------- Statutory underwriting ratios: Loss and loss adjustment expense 50.8% 66.8% 52.9% 57.7% Acquisition expense 11.2% 28.0% 29.8% 23.9% Other underwriting expense 9.6% 3.8% 3.8% 5.4% ---------- ---------- ---------- ---------- Combined 71.6% 98.6% 86.5% 87.0% ---------- ---------- ---------- ---------- The GAAP underwriting ratios are calculated by dividing each item above by net premiums earned. The Statutory Underwriting ratios are based on statutory accounting principles and are calculated as follows: (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 22 PLATINUM UNDERWRITERS HOLDINGS, LTD. SEGMENT REPORTING - NINE MONTH SUMMARY ($ IN THOUSANDS) Nine Months Ended September 30, 2004 ------------------------------------------------------- Property and Marine Casualty Finite Risk Total ------------ ----------- ----------- ----------- Net premiums written $ 393,764 508,693 348,671 $ 1,251,128 Net premiums earned 353,423 424,964 236,612 1,014,999 ----------- ----------- ----------- ----------- Losses and loss adjustment expenses 285,047 293,734 157,378 736,159 Acquisition expenses 57,491 105,765 69,630 232,886 Other underwriting expenses 21,280 15,979 5,825 43,084 ----------- ----------- ----------- ----------- Total underwriting expenses 363,818 415,478 232,833 1,012,129 ----------- ----------- ----------- ----------- Segment underwriting income (loss) $ (10,395) 9,486 3,779 2,870 ----------- ----------- ----------- Net investment income 58,290 Net realized capital gains 1,435 Net foreign currency exchange gains (losses) 326 Other income 2,137 Corporate expenses (10,352) Interest expense (6,952) ----------- Income (loss) before income tax expense (benefit) $ 47,754 =========== GAAP underwriting ratios: Loss and loss adjustment expense 80.7% 69.1% 66.5% 72.5% Acquisition expense 16.3% 24.9% 29.4% 22.9% Other underwriting expense 6.0% 3.8% 2.5% 4.2% ----------- ----------- ----------- ----------- Combined 103.0% 97.8% 98.4% 99.6% ----------- ----------- ----------- ----------- Statutory underwriting ratios: Loss and loss adjustment expense 80.7% 69.1% 66.5% 72.5% Acquisition expense 16.3% 24.7% 30.3% 23.6% Other underwriting expense 5.4% 3.1% 1.7% 3.4% ----------- ----------- ----------- ----------- Combined 102.4% 96.9% 98.5% 99.5% ----------- ----------- ----------- ----------- Nine Months Ended September 30, 2003 ------------------------------------------------------ Property and Marine Casualty Finite Risk Total ------------ ----------- ----------- ----------- Net premiums written $ 278,369 381,005 289,277 $ 948,651 Net premiums earned 265,052 289,975 234,684 789,711 ----------- ----------- ----------- ----------- Losses and loss adjustment expenses 135,292 199,489 118,032 452,813 Acquisition expenses 38,734 74,943 58,826 172,503 Other underwriting expenses 28,243 14,225 9,485 51,953 ----------- ----------- ----------- ----------- Total underwriting expenses 202,269 288,657 186,343 677,269 ----------- ----------- ----------- ----------- Segment underwriting income (loss) $ 62,783 1,318 48,341 112,442 ----------- ----------- ----------- Net investment income 42,414 Net realized capital gains 2,771 Net foreign currency exchange gains (losses) (3,456) Other income 4,444 Corporate expenses (19,710) Interest expense (7,150) ----------- Income (loss) before income tax expense (benefit) $ 131,755 =========== GAAP underwriting ratios: Loss and loss adjustment expense 51.0% 68.8% 50.3% 57.3% Acquisition expense 14.6% 25.8% 25.1% 21.8% Other underwriting expense 10.7% 4.9% 4.0% 6.6% ----------- ----------- ----------- ----------- Combined 76.3% 99.5% 79.4% 85.7% ----------- ----------- ----------- ----------- Statutory underwriting ratios: Loss and loss adjustment expense 51.0% 68.8% 50.3% 57.3% Acquisition expense 14.2% 26.6% 24.6% 22.3% Other underwriting expense 10.1% 3.7% 3.3% 5.5% ----------- ----------- ----------- ----------- Combined 75.3% 99.1% 78.2% 85.1% ----------- ----------- ----------- ----------- The GAAP underwriting ratios are calculated by dividing each item above by net premiums earned. The Statutory Underwriting ratios are based on statutory accounting principles and are calculated as follows: (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 22 PLATINUM UNDERWRITERS HOLDINGS, LTD. PROPERTY AND MARINE SEGMENT - BY QUARTER ($ IN THOUSANDS) Three Months Ended ----------------------------------------------------------------------------------- September 30, June 30, March 31, December 31, September 30, 2004 2004 2004 2003 2003 ------------- ----------- ---------- ------------ ------------- Net premiums written $ 120,629 101,841 171,294 74,540 $ 77,114 Net premiums earned 135,430 99,928 118,065 90,505 81,113 ---------- ---------- ---------- ---------- ---------- Losses and loss adjustment expenses 195,495 40,974 48,578 34,653 41,237 Acquisition expenses 20,834 14,905 21,752 13,420 9,930 Other underwriting expenses 5,956 7,174 8,150 7,355 7,412 ---------- ---------- ---------- ---------- ---------- Total underwriting expenses 222,285 63,053 78,480 55,428 58,579 ---------- ---------- ---------- ---------- ---------- Segment underwriting income (loss) $ (86,855) 36,875 39,585 35,077 $ 22,534 ---------- ---------- ---------- ---------- ---------- GAAP underwriting ratios: Loss and loss adjustment expense 144.4% 41.0% 41.1% 38.3% 50.8% Acquisition expense 15.4% 14.9% 18.4% 14.8% 12.2% Other underwriting expense 4.4% 7.2% 6.9% 8.1% 9.1% ---------- ---------- ---------- ---------- ---------- Combined 164.2% 63.1% 66.4% 61.2% 72.1% ---------- ---------- ---------- ---------- ---------- Statutory underwriting ratios: Loss and loss adjustment expense 144.4% 41.0% 41.1% 38.3% 50.8% Acquisition expense 15.0% 16.2% 17.4% 15.1% 11.2% Other underwriting expense 4.9% 7.0% 4.8% 9.9% 9.6% ---------- ---------- ---------- ---------- ---------- Combined 164.3% 64.2% 63.3% 63.3% 71.6% ---------- ---------- ---------- ---------- ---------- The GAAP underwriting ratios are calculated by dividing each item above by net premiums earned. The Statutory Underwriting ratios are based on statutory accounting principles and are calculated as follows: (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 22 PLATINUM UNDERWRITERS HOLDINGS, LTD. CASUALTY SEGMENT - BY QUARTER ($ IN THOUSANDS) Three Months Ended ----------------------------------------------------------------------------------------- September 30, June 30, March 31, December 31, September 30, 2004 2004 2004 2003 2003 ------------- ---------- ---------- ------------ ------------- Net premiums written $ 171,967 112,761 223,965 92,995 $ 134,991 Net premiums earned 156,512 132,230 136,222 101,195 106,298 ---------- ---------- ---------- ---------- ---------- Losses and loss adjustment expenses 105,559 93,391 94,784 67,347 71,052 Acquisition expenses 38,935 31,994 34,836 26,062 29,465 Other underwriting expenses 5,617 5,305 5,057 6,835 5,065 ---------- ---------- ---------- ---------- ---------- Total underwriting expenses 150,111 130,690 134,677 100,244 105,582 ---------- ---------- ---------- ---------- ---------- Segment underwriting income $ 6,401 1,540 1,545 951 $ 716 ---------- ---------- ---------- ---------- ---------- GAAP underwriting ratios: Loss and loss adjustment expense 67.4% 70.6% 69.6% 66.6% 66.8% Acquisition expense 24.9% 24.2% 25.6% 25.8% 27.7% Other underwriting expense 3.6% 4.0% 3.7% 6.7% 4.8% ---------- ---------- ---------- ---------- ---------- Combined 95.9% 98.8% 98.9% 99.1% 99.3% ---------- ---------- ---------- ---------- ---------- Statutory underwriting ratios: Loss and loss adjustment expense 67.4% 70.6% 69.6% 66.6% 66.8% Acquisition expense 24.7% 23.0% 25.6% 26.1% 28.0% Other underwriting expense 3.3% 4.7% 2.3% 7.3% 3.8% ---------- ---------- ---------- ---------- ---------- Combined 95.4% 98.3% 97.5% 100.0% 98.6% ---------- ---------- ---------- ---------- ---------- The GAAP underwriting ratios are calculated by dividing each item above by net premiums earned. The Statutory Underwriting ratios are based on statutory accounting principles and are calculated as follows: (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 22 PLATINUM UNDERWRITERS HOLDINGS, LTD. FINITE RISK SEGMENT - BY QUARTER ($ IN THOUSANDS) Three Months Ended ------------------------------------------------------------------------------------ September 30, June 30, March 31, December 31, September 30, 2004 2004 2004 2003 2003 ------------- ---------- ---------- ------------ ------------- Net premiums written $ 147,899 115,925 84,847 55,957 $ 69,211 Net premiums earned 91,148 78,709 66,755 86,117 84,854 ---------- ---------- ---------- ---------- ---------- Losses and loss adjustment expenses 83,670 55,101 18,607 29,359 44,919 Acquisition expenses 21,502 15,795 32,333 39,241 21,013 Other underwriting expenses 661 2,567 2,597 3,385 2,616 ---------- ---------- ---------- ---------- ---------- Total underwriting expenses 105,833 73,463 53,537 71,985 68,548 ---------- ---------- ---------- ---------- ---------- Segment underwriting income (loss) $ (14,685) 5,246 13,218 14,132 $ 16,306 ---------- ---------- ---------- ---------- ---------- GAAP underwriting ratios: Loss and loss adjustment expense 91.8% 70.0% 27.9% 34.1% 52.9% Acquisition expense 23.6% 20.1% 48.4% 45.6% 24.8% Other underwriting expense 0.7% 3.3% 3.9% 3.9% 3.1% ---------- ---------- ---------- ---------- ---------- Combined 116.1% 93.4% 80.2% 83.6% 80.8% ---------- ---------- ---------- ---------- ---------- Statutory underwriting ratios: Loss and loss adjustment expense 91.8% 70.0% 27.9% 34.1% 52.9% Acquisition expense 27.3% 23.1% 45.3% 59.2% 29.8% Other underwriting expense 0.4% 2.2% 3.1% 6.0% 3.8% ---------- ---------- ---------- ---------- ---------- Combined 119.5% 95.3% 76.3% 99.3% 86.5% ---------- ---------- ---------- ---------- ---------- The GAAP underwriting ratios are calculated by dividing each item above by net premiums earned. The Statutory Underwriting ratios are based on statutory accounting principles and are calculated as follows: (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 15 of 22 PLATINUM UNDERWRITERS HOLDINGS, LTD. NET PREMIUMS WRITTEN - SUPPLEMENTAL INFORMATION ($ IN THOUSANDS) Three Months Ended Nine Months Ended -------------------------------- ------------------------------- September 30, September 30, September 30, September 30, 2004 2003 2004 2003 ------------- ------------- ------------- ------------- Property and Marine: Excess-of-loss $ 82,425 $ 47,340 $ 288,279 $ 179,839 Proportional 38,204 29,774 105,485 98,530 ---------- ---------- ---------- ---------- Subtotal Property and Marine 120,629 77,114 393,764 278,369 ---------- ---------- ---------- ---------- Casualty: Excess-of-loss 156,128 102,386 447,907 315,289 Proportional 15,839 32,605 60,786 65,716 ---------- ---------- ---------- ---------- Subtotal Casualty 171,967 134,991 508,693 381,005 ---------- ---------- ---------- ---------- Finite Risk: Excess-of-loss 88,496 46,936 163,672 209,597 Proportional 59,403 22,275 184,999 79,680 ---------- ---------- ---------- ---------- Subtotal Finite Risk 147,899 69,211 348,671 289,277 ---------- ---------- ---------- ---------- Total: Excess-of-loss 327,049 196,662 899,858 704,725 Proportional 113,446 84,654 351,270 243,926 ---------- ---------- ---------- ---------- TOTAL $ 440,495 $ 281,316 $1,251,128 $ 948,651 ========== ========== ========== ========== Three Months Ended Nine Months Ended -------------------------------- ------------------------------- September 30, September 30, September 30, September 30, 2004 2003 2004 2003 ------------- ------------- ------------- ------------- Property and Marine: United States $ 97,794 $ 50,419 $ 240,998 $ 153,812 International 22,835 26,695 152,766 124,557 ---------- ---------- ---------- ---------- Subtotal Property and Marine 120,629 77,114 393,764 278,369 ---------- ---------- ---------- ---------- Casualty: United States 161,477 120,680 443,912 344,695 International 10,490 14,311 64,781 36,310 ---------- ---------- ---------- ---------- Subtotal Casualty 171,967 134,991 508,693 381,005 ---------- ---------- ---------- ---------- Finite Risk: United States 135,676 61,599 325,576 225,802 International 12,223 7,612 23,095 63,475 ---------- ---------- ---------- ---------- Subtotal Finite Risk 147,899 69,211 348,671 289,277 ---------- ---------- ---------- ---------- Total: United States 394,947 232,698 1,010,486 724,309 International 45,548 48,618 240,642 224,342 ---------- ---------- ---------- ---------- TOTAL $ 440,495 $ 281,316 $1,251,128 $ 948,651 ========== ========== ========== ========== Page 16 of 22 PLATINUM UNDERWRITERS HOLDINGS, LTD. PREMIUMS BY LINE OF BUSINESS - THREE MONTH SUMMARY ($ IN THOUSANDS) Three Months Ended September 30, 2004 Three Months Ended September 30, 2003 -------------------------------------- -------------------------------------- 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 $ 16,075 16,075 $ 15,396 $ 6,898 6,898 $ 8,892 North American Property Catastrophe 22,707 22,313 20,459 9,081 5,661 4,932 North American Property Risk 25,004 24,155 25,968 17,320 17,320 16,545 Other Property 35,613 35,251 31,364 20,541 20,541 17,620 Marine / Aviation Proportional 2,071 2,071 2,205 1,163 1,483 1,132 Marine / Aviation Excess 9,141 8,813 11,834 15,405 15,085 10,138 International Property Proportional 2,220 2,220 4,847 858 858 2,846 International Property Catastrophe 8,715 8,662 20,204 8,122 7,884 16,096 International Property Risk 1,069 1,069 3,153 1,384 1,384 2,912 -------- -------- -------- -------- -------- -------- Subtotal 122,615 120,629 135,430 80,772 77,114 81,113 -------- -------- -------- -------- -------- -------- Casualty: Clash 5,556 5,556 6,062 3,247 3,247 3,516 1st $ GL 9,483 9,483 8,587 7,512 7,511 5,228 1st $ Other 683 683 779 254 254 219 Casualty Excess 109,843 109,843 108,449 84,717 84,717 70,799 Accident & Health 29,535 29,535 12,753 24,951 24,951 17,108 International Casualty 8,756 8,756 5,380 5,616 5,616 4,513 International Motor 530 530 5,418 9,495 8,695 4,915 Financial Lines 7,581 7,581 9,084 - - - -------- -------- -------- -------- -------- -------- Subtotal 171,967 171,967 156,512 135,792 134,991 106,298 -------- -------- -------- -------- -------- -------- Finite Risk: Finite Property 17,524 17,524 12,870 17,266 17,266 22,447 Finite Casualty 106,371 106,371 54,033 145 145 6,365 Finite Accident & Health 24,004 24,004 24,245 51,800 51,800 56,042 -------- -------- -------- -------- -------- -------- Subtotal 147,899 147,899 91,148 69,211 69,211 84,854 -------- -------- -------- -------- -------- -------- TOTAL $442,481 440,495 $383,090 $285,775 281,316 $272,265 ======== ======== ======== ======== ======== ======== Page 17 of 22 PLATINUM UNDERWRITERS HOLDINGS, LTD. PREMIUMS BY LINE OF BUSINESS - NINE MONTH SUMMARY ($ IN THOUSANDS) Nine Months Ended September 30, 2004 Nine Months Ended September 30, 2003 ---------------------------------------- ---------------------------------------- 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 $ 45,158 45,158 $ 42,294 $ 28,803 28,803 $ 30,345 North American Property Catastrophe 50,691 46,008 44,523 31,052 23,634 24,088 North American Property Risk 69,964 69,115 62,574 45,772 45,772 45,319 Other Property 81,079 80,717 77,983 55,604 55,604 53,295 Marine / Aviation Proportional 7,099 7,099 5,701 4,187 4,187 3,367 Marine / Aviation Excess 40,630 40,771 34,929 40,884 39,871 35,001 International Property Proportional 15,916 15,916 13,419 10,074 10,074 10,523 International Property Catastrophe 81,074 74,282 59,713 68,841 60,246 54,538 International Property Risk 14,698 14,698 12,287 10,177 10,178 8,576 ---------- --------- ---------- ---------- ---------- ---------- Subtotal 406,309 393,764 353,423 295,394 278,369 265,052 ---------- --------- ---------- ---------- ---------- ---------- Casualty: Clash 18,535 18,535 19,711 14,990 14,990 15,221 1st $ GL 20,150 20,150 20,139 18,490 18,489 11,893 1st $ Other 2,081 2,081 1,776 1,350 1,350 1,268 Casualty Excess 309,999 309,999 276,967 256,019 256,019 197,004 Accident & Health 77,564 77,564 51,762 53,847 53,847 39,364 International Casualty 29,725 29,725 16,817 12,967 12,967 9,099 International Motor 17,635 16,806 17,388 24,617 23,343 16,126 Financial Lines 33,833 33,833 20,404 - - - ---------- --------- ---------- ---------- ---------- ---------- Subtotal 509,522 508,693 424,964 382,280 381,005 289,975 ---------- --------- ---------- ---------- ---------- ---------- Finite Risk: Finite Property 43,898 43,898 50,378 83,251 83,251 58,633 Finite Casualty 218,311 218,311 91,789 20,726 20,726 20,384 Finite Accident & Health 86,462 86,462 94,445 185,300 185,300 155,667 ---------- --------- ---------- ---------- ---------- ---------- Subtotal 348,671 348,671 236,612 289,277 289,277 234,684 ---------- --------- ---------- ---------- ---------- ---------- TOTAL $1,264,502 1,251,128 $1,014,999 $ 966,951 948,651 $ 789,711 ========== ========= ========== ========== ========== ========== Page 18 of 22 PLATINUM UNDERWRITERS HOLDINGS, LTD. COMPANY RATIOS, SHARE DATA, RATINGS As of and for the Three Months Ended -------------------------------------------------------------------------------------- September 30, June 30, March 31, December 31, September 30, 2004 2004 2004 2003 2003 -------------- -------------- -------------- -------------- -------------- GAAP Basis Ratios %: Combined 124.8% 85.9% 83.1% 81.9% 85.4% Debt to Total Capital 11.2% 10.8% 10.7% 11.4% 11.8% Net Premiums Written (Annualized) to Shareholders' Equity 1.62 1.16 1.68 0.84 1.10 Share Data: Book Value Per Share $ 25.30 $ 26.29 $ 26.42 $ 24.79 $ 23.87 Common Shares Outstanding 43,017,657 43,278,525 43,268,025 43,054,125 43,024,000 Market Price Per Share:* High $ 30.90 $ 33.50 $ 34.02 $ 32.05 $ 28.55 Low 27.70 30.20 29.86 26.80 25.66 Close $ 29.28 $ 30.43 $ 32.05 $ 30.00 $ 28.10 Industry Ratings: A.M. Best A A A A A Supplemental Data: Total Employees 164 158 156 155 152 * Based on closing prices during the periods Page 19 of 22 PLATINUM UNDERWRITERS HOLDINGS, LTD. INVESTMENT PORTFOLIO ($ IN THOUSANDS) Weighted Weighted Average Average September 30, 2004 Book Yield December 31, 2003 Book Yield -------------------- ----------- ------------------- ---------- Fixed Maturities: US Government and US Government agencies $ 110,822 4.9% $ 5,032 2.5% Tax exempt municipal bonds 216,205 3.0% 92,044 3.0% Corporate bonds 1,087,358 4.2% 1,103,100 3.9% Mortgage and asset-backed securities 425,779 4.7% 268,375 4.9% Foreign governments and foreign corporate bonds 301,618 4.8% 205,905 4.5% -------------------- ------------------- Total Bonds 2,141,782 4.3% 1,674,456 4.1% Redeemable Preferred Stock 3,553 6.0% 3,682 6.0% -------------------- ------------------- TOTAL FIXED MATURITIES $ 2,145,335 4.3% $ 1,678,138 4.1% ==================== =================== September 30, 2004 December 31, 2003 ---------------------------- -------------------------- Amount % of Total Amount % of Total ------------- ------------ ------------ ----------- Credit Quality of Investment Grades:* Aaa $ 759,352 35.4% $ 435,282 25.9% Aa 423,452 19.7% 317,274 18.9% A 863,031 40.3% 853,276 50.9% Baa 99,500 4.6% 72,306 4.3% ------------- ----------- ------------ ----------- TOTAL $ 2,145,335 100.0% $ 1,678,138 100.0% ============= =========== ============ =========== Credit Quality: Weighted average credit quality Aa3 Aa3 * Rated using external rating agencies (Moody's). (Aaa-Best Quality; Aa-High Quality; A-Upper to Medium Quality, Baa - Investment Grade) Page 20 of 22 PLATINUM UNDERWRITERS HOLDINGS, LTD. INVESTMENT PORTFOLIO - NET REALIZED CAPITAL GAINS (LOSSES) ($ IN THOUSANDS) Three Months Ended Nine Months Ended --------------------------------------- --------------------------------------- September 30, 2004 September 30, 2003 September 30, 2004 September 30, 2003 ------------------ ------------------ ------------------ ------------------ Net realized capital gains (losses): United States $ (50) $ 718 $ (579) $ 592 United Kingdom 113 60 124 103 Bermuda 2,199 730 1,890 2,076 ------- ------- ------- ------- TOTAL $ 2,262 $ 1,508 $ 1,435 $ 2,771 ======= ======= ======= ======= Page 21 of 22 PLATINUM UNDERWRITERS HOLDINGS, LTD. LOSS ANALYSIS ($ IN THOUSANDS) ANALYSIS OF LOSSES AND LOSS EXPENSES INCURRED: ---------------------------------------------------------------------------------------- Nine Months Ended September 30, 2004 Twelve Months Ended December 31, 2003 -------------------------------------------- ------------------------------------------ Paid to Paid to Gross Ceded Net Incurred % Gross Ceded Net Incurred % ---------- -------- ---------- ---------- ---------- ------ ---------- ---------- Paid $ 247,777 558 $ 247,219 33.6% $ 144,863 484 $ 144,379 24.7% Change in unpaid losses and loss expenses 486,673 (2,267) 488,940 444,793 5,001 439,792 ---------- -------- ---------- ---------- ------ ---------- Losses and loss expenses incurred $ 734,450 (1,709) $ 736,159 $ 589,656 5,485 $ 584,171 ---------- -------- ---------- ---------- ------ ---------- ANALYSIS OF UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSES: ---------------------------------------------------------------------------------------- September 30, 2004 December 31, 2003 ------------------------------------------ ---------------------------------------- Gross* Ceded Net* % Gross Ceded Net % ---------- ------- ---------- ----- ---------- ----- ---------- ----- Outstanding losses and loss expenses $ 152,796 648 $ 152,148 12.5% $ 95,192 1,540 $ 93,652 12.8% Incurred but not reported 1,069,568 2,101 1,067,467 87.5% 641,742 3,476 638,266 87.2% ---------- ------- ---------- ----- ---------- ----- ---------- ----- $1,222,364 2,749 $1,219,615 100.0% $ 736,934 5,016 $ 731,918 100.0% ---------- ------- ---------- ----- ---------- ----- ---------- ----- * Includes effects of foreign currency exchange rate movements of $1,243 Page 22 of 22