PLATINUM Q4

REPORT CARD

Net income: $64.1 million compared to $102.2 million in 2007.

Combined ratio: 97.7 percent compared to 75.3 percent in 2007.

Net premiums written: $237.3 million compared to $241 million in 2007.

Platinum Underwriters Holdings Ltd. was one of few Bermuda international companies to achieve an increase in book value for 2008, the company revealed last night, as it reported net income of $64.1 million for the fourth quarter.

The reinsurer's profit for the October through December period declined 37.3 percent compared to the same period in 2007 and broke down to $1.18 per share. Full-year net income was $226.2 million, or $3.98 per share, a fall of 36.6 percent on 2007.

Quarterly adjusted earnings per share of 63 cents were well ahead of the average of 43 cents expected by analysts logged by Bloomberg.

Book value per share was $34.58 at the end of 2008, up 2.8 percent for the quarter and 1.6 percent for the year. Share repurchases of $266.3 million during 2008 at an average price of $34.31 per share helped to bolster book value.

The quarter's results included an increase of around $60 million in Platinum's estimated losses related to Hurricane Ike, as announced by the company in mid-January. This brought the total losses from the September storm to some $165 million.

The results also reflected $42.9 million of net realised gains on the company's investment portfolio, as well as net favourable development of $49.3 million.

Platinum chief executive officer Michael Price said: "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."

Mr. Price added that the company has always aimed to operate from a position of financial strength - something that was 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."

Net premiums earned were $274.2 million, a decrease of 9.2 percent from the same quarter last year. The company's combined ratio - the percentage of premium dollars spent on claims and expenses - was 97.7 percent for the quarter and 91.9 percent for the year.

Net investment income of $42.5 million, saw a decrease of 20.6 percent from the same quarter last year.