Reinsurer posts H1 net income of $139.6m
Bermuda-based reinsurer Platinum Underwriters Holdings made a net profit of $139.6m for the six months to June 30 2010, 23.8% down on the $183.1m it made in the same period of 2009.
Platinum’s combined ratio for the first half of 2010 was 84.2%, up from 78.5% in the first half of 2009. This was driven by an increase in the firm’s property and marine combined ratio to 92.6% from 71.9%, and the finite risk combined ratio to 146.9% from 113.6%. The casualty combined ratio dropped to 69.5% in the first half of 2010 from 85.4% in 2009.
However, profit for the second quarter of 2010 was up 26.5%, at $124.1m compared with $98.1m. In addition the combined ratio fell to 67.4% in Q2 2010 from 76.9% in Q2 2009. Combined ratios in all three of the reinsurer’s business segments declined – the most notable being the reduction of the finite risk combined ratio to 84.6% from 118.4%.
Diluted earnings per common share for Q2 2010 were $2.68, which the company said was a record. Platinum CEO Michael price attributed the Q2 performance to Platinum's “disciplined approach to underwriting, strong investment results and active capital management”.
"So far this year we have assembled an acceptable portfolio of treaty reinsurance risks, repositioned our investment portfolio and deployed free capital into buying back shares, which better aligns our capital base with our business opportunities," Price said in a statement.