Platinum Underwriters Holdings Ltd. yesterday reported strong fourth-quarter and 2006 earnings, as well as a strong start to 2007.

The Bermuda reinsurer became the latest to post full-year profits in the hundreds of millions, as it announced net income of $86 million for the fourth quarter and $329.7 million for the year 2006.

Those figures represented a $467.1 million improvement for the year compared with 2005, when a destructive hurricane season ate into the company’s bottom line, and a $188.5 million improvement for the final quarter.

A quiet hurricane season and a good investment environment helped the company achieve its strong results, which break down to $1.28 per share for the last three months of the year and $4.96 per share for the year.

Platinum’s chief executive officer Michael Price said the current year had started well.

“During an active but orderly January 1 renewal season we expanded our property catastrophe excess-of-loss business where rate adequacy for US-exposed risks improved in line with our expectations,” Mr. Price said.

“Renewals were mixed in other lines of business with modest additions in some areas and small reductions where rates, terms and conditions did not meet our standards. We believe this marks a strong start for 2007.”

The results for the fourth quarter included net premiums earned of $315.7 million, a decrease of 28.7 percent from the same period last year, and net investment income of $50.8 million, an increase of 36.6 percent from 2005.

“Overall, 2006 was a successful year for Platinum,” Mr. Price said. “Our return on beginning common equity was approximately 23 percent. For both the quarter and the year, our underwriting results were strong due, in part, to the absence of major catastrophes and favourable prior period development.

“Investment income grew in the quarter and full year, aided significantly by positive cash flow from operations.”

Shareholders’ equity was $1.9 billion at the end of last year, an increase of $317.8 million (or 20.6 percent) from $1.5 billion a year earlier.

Book value per common share was $28.33 at the end of the year, based on 59.7 million common shares outstanding, an increase of $5.11 (22.0 percent) from $23.22 based on 59.1 million common shares outstanding at the end of 2005.