Platinum Underwriters Holdings, Ltd., which was spun off and set up as an independent Bermuda-registered reinsurer last November, earned $6.4 million in its first quarter of doing business, it reported on Friday.

Platinum was spun off in November by The St. Paul Insurance Companies in an initial public offering that raised net proceeds of $1 billion.

The company said yesterday that from November 1 to December 31, the company recorded net income of $6.4 million, or $0.15 per diluted common share.

But the reinsurer said its results reflected $5.4 million of underwriting and corporate expenses incurred in connection with completion of the IPO, the formation of the company and the transfer of the St. Paul Re business to Platinum.

"We are very pleased with our initial results of operations as an independent public company, which reflect our success in establishing Platinum as a high-quality reinsurer committed to generating underwriting profits and attractive shareholder returns," said Platinum chief executive officer Jerome T. Fadden.

"With the successful transfer of the continuing 2002 reinsurance business from The St. Paul to Platinum and the continuity of relationships with our brokers and clients, we believe we are well positioned to capitalise on our position in the marketplace.

"We also expect to benefit from improving conditions in many casualty lines of business, where market withdrawals by several competitors and poor historical industry results have enhanced the current environment."

Platinum also said based on its January reinsurance renewals, it expected to write slightly less than $1 billion in net premiums in 2003 and that its combined ratio would be in the range of 90 percent to 95 percent.

In the two months to December 31, Platinum said net premiums written were $298.1 million, of which $292.3 million was related to the reinsurance business assumed from The St. Paul Companies.

Net premiums earned were $107.1 million. Net investment income was $5.2 million. The deployment of Platinum's investment portfolio was delayed pending receipt of required regulatory approvals. The portfolio was substantially invested by the end of 2002.

Losses and loss adjustment expenses for the period were $60.4 million, or 56.4 percent of net premiums earned, reflecting the mix of business underwritten in 2002 and the relatively low level of catastrophe losses incurred.

Platinum's combined ratio for the period was 91.5 percent including the costs incurred in connection with the transactions. The company's Global Property segment reported net premiums written of $89.3 million and a GAAP combined ratio of 82 percent Net premiums written for the Global Casualty segment were $164.9 million and its GAAP combined ratio was 109.1 percent. The Finite Risk segment produced net premiums written of $43.9 million and a GAAP combined ratio of 80.0 percent.

As of December 31, 2002, total assets were $1.7 billion and total stockholders' equity was $921.2 million. Book value per share was $21.42 as of December 31, 2002.