The impact of hurricane activity saw Platinum Underwriters Holdings, Ltd. post a third quarter net loss of $69.8 million compared to profits of $37.8 million in the year ago quarter. Broken down, the company reported net losses of $1.62 per share compared to earnings of 88 cents per share in the 2003 third quarter.

Platinum Underwriters, formerly the reinsurance arm of the St. Paul Companies, set up on the Island in 2002 to provide property, casualty and finite risk reinsurance. In the 2004 third quarter, it recorded an estimated after-tax negative impact from hurricanes Charley, Frances, Ivan and Jeanne of approximately $145 million. The impact of the hurricanes for both the quarter and nine months ended September 30 was gross losses of $186 million, additional premiums earned of $20 million and reduction in profit commissions of $10 million. Hurricane losses adversely impacted the quarterly combined ratio by approximately 41.6 percentage points. The ultimate impact of the hurricanes on the company?s results may differ materially from the current estimate because the company has received relatively few claims advices ?due to the unusual size and frequency of the recent hurricanes?. The estimated impact is based on reported losses to date, commercial and proprietary catastrophe modelling and industry losses of approximately $28 billion.

In its earnings statement, the company said that it recently evaluated the negative impact of the hurricanes in light of an excess-of-loss retrocessional contract which provided aggregate coverage to the company. Based on results of operations for the quarter ended September 30 a cession to the contract was indicated; however, that cession was unlikely to produce a significant economic benefit to the company and accordingly the company commuted the contract effective November 8. Results for the quarter ended September 30 reflect no benefit from this contract.

Steven H. Newman, Chairman of the Board, said: ?Despite our hurricane losses, Platinum distinguished itself by achieving a modest underwriting profit on a year to date basis. This serves to confirm the quality and diversity of our underwriting commitments.?

Gregory Morrison, Chief Executive Officer, said: ?While our results this quarter were dominated by the losses arising from the hurricanes, these losses were consistent with the size of our portfolio and our position in the market. We are encouraged by the underlying growth of our business and the opportunities we see for the future. Market conditions should provide us with a strong upcoming January reinsurance renewal season.?

Net premiums written in the 2004 third quarter were $440.5 million compared with $281.3 million in the 2003 quarter. The GAAP combined ratio for the quarter was 124.8 percent compared with 85.4 percent in the year ago quarter. As of September 30 total assets were $3,294.3 million, of which cash and fixed maturity investments were $2,374.3 million, an increase of $812.5 million and $583.8 million from their respective balances as of December 31, 2003. Net investment income for the quarter was $21.4 million compared with $14.8 million in the 2003 third quarter.

Platinum Underwriters also revised its estimate of the company?s 2004 results. It said: ?Based on the third quarter results, the current industry environment, the mix of business underwritten and in the absence of any unusual catastrophe activity, Platinum estimates that net premiums written for 2004 will be approximately $1.6 billion, and its GAAP combined ratio for 2004 will be approximately 97 percent.Platinum expects its combined portfolio of cash and fixed maturity investments to be approximately $2.5 billion at year-end 2004. On this basis Platinum now projects that earnings for 2004 will be approximately $1.75 per diluted common share based on an estimate of 51,000,000 diluted shares.?

As of September 30, shareholders? equity was $1,088.5 million and book value per share was $25.30. Shareholders? equity increased $21.3 million or 51 cents per share from their respective balances as of December 31, 2003.