One of Bermuda's newest reinsurers Platinum Underwriters said particularly stellar results from its finite risk book of business contributed to its posting $26.6 million in net income for the second quarter.

The property and casualty underwriter, formerly the reinsurance arm of the St. Paul Companies, reported that its finite risk unit had written $91.44 million in net premiums and recorded quarterly underwriting income for that segment of $24.14 million.

Finite risk reinsurance is a contract under which the ultimate liability of the reinsurer is capped and on which anticipated investment income is considered an underwriting component.

Platinum, which set up on the Island last year and is now listed on the New York Stock Exchange, said total net premiums written in the quarter were $307.2 million and it recorded net investment income of $13.4 million.Platinum chairman Steven Newman said: "Each of our segments contributed meaningfully to our underwriting results this quarter, particularly our finite risk segment. The overall performance of Platinum's diversified underwriting portfolio was excellent."

Meanwhile, newly appointed CEO Gregory Morrison said he'd joined the company at a good time: "I am pleased to have joined Platinum at such an exciting time in its development. Results are excellent and prospects for the future are bright."

The GAAP combined ratio for the second quarter was 84.7 percent reflecting losses and loss adjustment expenses of $156.8 million or 56.1 percent of net premiums earned, acquisition expenses of $60.4 million or 21.6 percent of net premiums earned and underwriting expenses of $19.6 million or 7.0 percent of net premiums earned.

The company's finite risk division came in with the lowest combined ratio at 69.6 percent.Second quarter net premiums written by Platinum's property and marine, casualty and finite risk segments were $83.5 million, $132.3 million and $91.4 million, respectively. Total net income for the first six months of the year was $57.2 million.

Looking forward the company said in its earnings press release that, based on six months of actual results, the current industry environment, the mix of business underwritten and in the absence of any unusual catastrophe activity, Platinum estimated that its total net premiums written for the year should reach $1.2 billion.

Platinum also announced that its Board of Directors has declared a quarterly dividend of eight cents per common share, to be paid September 30, 2003 to shareholders of record on September 2, 2003.