Platinum Underwriters Holdings, Ltd., a Bermuda-based reinsurer, on Sunday posted a loss in the fourth quarter compared to a profit during the same period a year ago due to higher than expected hurricane losses.

Platinum?s $103.3 million quarterly loss, or $1.94 a share, compared with a profit of $49.4 million a year earlier. Wall Street expected Platinum?s average loss to be around $1.14 a share, according to a poll of ten analysts.

Platinum posted $153.4 million in losses from Hurricane Wilma, up from an earlier estimate of $135 million. It also added $30.9 million to its loss estimates for hurricanes Katrina and Rita. In total, Platinum?s after-tax loss estimate for the three hurricanes rose to $459 million. The company?s shares rose 11 cents to $30.34 in composite trading on the New York Stock Exchange yesterday, compared to a 52-week high of $35.21.

Policy sales in the fourth quarter declined one percent to $390.8 million, $4 million lower than a year earlier, while income from investments jumped 41.7 percent to $37.2 million.

Chief executive Michael Price said record industry losses in 2005 had been a ?challenge? for Platinum, as losses on property policies ?overshadowed? strong business results in some other areas.

Platinum, which sells reinsurance to other insurers and reinsurers that want to reduce their risk of claims, said policy sales by its casualty unit accounted for nearly half of fourth-quarter business. Under a casualty contract the reinsurer assumes some of the risk of legal liability losses from policies insurers have sold to corporations.

Property and marine policies accounted for 31 percent of the company?s fourth-quarter business, while its sale of finite risk policies fell to around 20 percent of total business.

Platinum?s quarterly policy sales were $4 million less than a year earlier, largely the result of finite risk policy sales falling 30 percent.

Finite risk, a non-traditional type of insurance, has come under fire in the last year from regulators scrutinising the policies for their ability to mask losses. Chief executives and chief financial officers of companies that buy or sell the policies now have to sign off that the contracts meet certain risk transfer requirements, under stiffer US and European regulatory requirements. Platinum last year conducted an internal review of its finite risk business, finding no instances of policies having been misused, it said.

For the year, Platinum posted a $138.2 million loss, or $3.01 a share compared to a profit of $84.8 million in 2004. Analysts had expected a 2005 loss of, on average, $1.98 a share.

?We believe we have strong underwriting prospects for the remainder of the year,? Mr. Price said, in a statement issued with the company?s results.