One of Bermuda's newest reinsurers, Platinum Underwriters Holdings Ltd., has named Gregory Morrison president and chief executive, replacing Jerome Fadden.

And the company, which was only floated at the end of October last year, has taken a $9.5 million hit in connection with the move in payouts to the exiting Mr. Fadden and the incoming Mr. Morrison. The payouts relate to expenses under contract as filed with the Securities and Exchange Commission in cash and accounting expenses that need to be recognised for options, the company said.

In a press release Platinum, which deals in property, casualty and finite reinsurance coverages, said Mr. Fadden joined the company in March, 2002 and was an integral part of the company's initial public offering in October - after being postponed many times throughout the year.

Mr. Morrison, who is expected to live in Bermuda full time when he joins the company in June, comes to the company from London Reinsurance Group Inc., a Canadian reinsurance company he founded and served with as president and chief executive. He has also been named president and chief executive officer of Platinum's Bermuda subsidiary.

Mr. Fadden, who joined St. Paul Re in March 2002 and played a critical role in Platinum's initial public offering, will provide consulting services for Platinum through the end of the year and will then pursue private equity investment opportunities in the financial services sector, the company said.

St. Paul Re was formed to taken on the reinsurance business of insurance giant, St. Paul, which then became Platinum when it was floated.

Platinum, which will shortly to be moving into offices in Pitts Bay Road in the Belvedere Building, has about 158 staff worldwide and about a dozen in Bermuda.

Steven Newman, chairman of Platinum, said: "I am very pleased to welcome Greg Morrison as Platinum's new chief executive officer. Greg is a distinguished reinsurance executive who has compiled an outstanding record at London Reinsurance. His considerable talents are a great fit with our needs at this time.

"We thank Jerry Fadden for the important role he played in the formation of Platinum, its initial public offering and in establishing our company as a leading property and casualty reinsurer.

"Through his efforts and dedication we are now well positioned to capitalise on the attractive underwriting opportunities available in today's market. We wish him every success in the future."

Mr. Morrison said in a release: "I am honoured to be given the opportunity to lead Platinum at this exciting time in its development and in our industry. The company has accomplished a great deal in its short history and has a leading position in several market segments.

"I look forward to working with Steve Newman, Michael Price and the entire Platinum team to achieve our shared objectives."

The company said that Mr. Morrison founded LRG, the reinsurance operations of Great-West Life Assurance Company, in 1989 and during his tenure led the development of its organisational structure and its life and property-casualty reinsurance product lines.

He left LRG in 1999 to serve as president of Unum Reinsurance, returning to LRG in 2000.

Prior to founding LRG, Mr. Morrison was a vice president for reinsurance at Manufacturers Life Insurance Company from 1985 to 1989.

He began his career as an actuary with Northern Life Assurance Company.

Mr. Morrison received a BA in mathematics from the University of Western Ontario, is a Fellow of the Canadian Institute of Actuaries and the Society of Actuaries, and a Member of the Academy of Actuaries.

The company also reported earnings of $30.6 million, or 71 cents a basic share and 66 cents a diluted share, on revenue of $254.1 million for its first quarter ended March 31.

In a press release, the reinsurance company said first-quarter premiums written were $360.1 million and premiums earned were $238.1 million.

Investment income for the quarter was $14.2 million and total assets were $2 billion at March 31, including cash and fixed maturity investments of $1.4 billion.

The company also reported that based on the current industry environment, the mix of business underwritten and in the absence of any unusual catastrophe activity, it has updated its guidance for fiscal year 2003.

Platinum now estimates that for 2003 it will book net premiums written between $1.1 billion and $1.2 billion and a GAAP combined ratio in the range of 90 percent to 95 percent.

Platinum said it expects its combined portfolio of cash and fixed maturity investments to be slightly in excess of $1.6 billion at year-end 2003.

The company also said that yield expectations for the company's cash and fixed maturity investment portfolio are consistent with market conditions.