Bermuda-based reinsurer Platinum Underwriters Holdings, Ltd. announced yesterday it has increased its loss estimate from Hurricane Ike by approximately $60 million to a total estimate of approximately $165 million, net of reinstatement premiums and tax benefit.

The updated loss estimate from Hurricane Ike is based on additional information from clients reflecting larger losses than their initial estimates, industry loss estimates, portfolio modelling and historical development patterns. The increase in loss estimates results primarily from offshore marine, risk excess of loss and property catastrophe business.

Fellow Bermuda reinsurers PartnerRe and IPC Holdings have also significantly increased their loss estimates from Ike in recent weeks.

Paltinum also announced that it expects to record for the fourth quarter of 2008 net realised gains of approximately $33 million associated with its investment portfolio. This reflects realised gains on sales of approximately $53 million and other-than-temporary impairments and realized losses of approximately $20 million.

The company's unrealised investment loss on fixed maturity securities is approximately $204 million at December 31, 2008, which represents an increase of approximately $21 million from September 30, 2008.

As of September 30, 2008, the company held $4.3 billion of invested assets comprised primarily of diversified, high quality, publicly traded fixed maturity securities and cash and cash equivalents. The average rating of the investment portfolio holdings was Aa1 and the duration was approximately three years. The company does not hold any common equity securities and does not engage in alternative investment strategies such as investing in hedge funds. Platinum expects to release its fourth quarter and full-year results on February 18.