Low catastrophe activity helped Bermuda reinsurer Platinum Underwriters Holdings Ltd. to earn second-quarter net income of $98.1 million and comfortably beat analysts' expectations.

The profit, announced last night, broke down to a company record $1.90 per share, well in excess of the $1.39 per share expected by analysts tracked by Bloomberg News.

Platinum also posted a near 10 percent rise in book value for the quarter, although net premiums written fell by 7.4 percent.

The company's chief executive officer Michael Price sees market conditions improving. "So far this year, we have found more attractive underwriting conditions for property and marine than for casualty," Mr. Price said. "However, we may be approaching the bottom of the casualty reinsurance market."

The results bode well for the Bermuda market, recovering from a year of huge investment losses and high catastrophe claims in 2008, with Platinum the first of the Island's international insurance companies to announce second-quarter earnings.

During the April through June period, Platinum earned net premiums earned of $232.5 million, a decrease of 9.9 percent from the same quarter last year, aided by net favourable development of $23.6 million.

"Our record net income per diluted common share reflects disciplined underwriting, net favourable reserve development, lower than expected catastrophe activity, good investment results and active capital management," Mr. Price said.

Combined ratio for the quarter was 76.9 percent — 8.5 percent higher than for the same period in 2008.

Platinum said its book value per share at June 30 was $39.23 — an increase of 9.7 percent from March 31, 2009 and 13.4 percent from the end of 2008.

The company helped its book value through share repurchases of $41.3 million at an average cost of $27.84 per share during the second quarter.

Platinum also benefited from recovering financial markets in the second quarter. The company's net investment income for the three months was $44.1 million and net realised gains on investments were $10.8 million.

For the first six months of the year, net income was $183.1 million, or $3.47 per diluted common share.

Net income: $98.1 million compared to $102.3 million in 2008

Net premiums written: $208.1 million compared to $224.9 million in 2008

Combined ratio: 76.9 percent compared to 68.4 percent in 2008