Platinum Underwriters Holdings Ltd. (PTP, Financial) filed Quarterly Report for the period ended 2009-09-30.
Platinum Underwriters Holdings Ltd. has a market cap of $1.78 billion; its shares were traded at around $35.81 with a P/E ratio of 6.61 and P/S ratio of 1.34. The dividend yield of Platinum Underwriters Holdings Ltd. stocks is 0.89%.
The increase in net income in the three months ended September 30, 2009 as compared with the same period in 2008 was primarily due to an increase in net underwriting income of $126.8 million, an increase in net realized gains on investments of $22.6 million and a decrease in net impairment losses on investments of $8.0 million. Net underwriting income or loss consists of net premiums earned, less net losses and LAE, net acquisition expenses and operating costs related to underwriting operations. The increase in net underwriting income was primarily due to the decrease in underwriting losses arising from major catastrophes in the three months ended September 30, 2009.
Net underwriting income for the three months ended September 30, 2009 was $63.6 million as compared with a net underwriting loss of $63.2 million for the three months ended September 30, 2008. The increase in net underwriting income in the three months ended September 30, 2009 as compared with the same period in 2008 was primarily due to a decrease in underwriting losses arising from major catastrophes in the three months ended September 30, 2009. Net underwriting losses arising from major catastrophes were $3.8 million and $135.1 million in the three months ended September 30, 2009 and 2008, respectively. Net underwriting losses from major catastrophes in 2008 were primarily attributable to Hurricanes Gustav and Ike. Net premiums written decreased in the three months ended September 30, 2009 as compared with the same period in 2008 primarily due to decreases in premiums written in both the Property and Marine and Casualty segments.
The increase in underwriting income in the three months ended September 30, 2009 as compared with the same period in 2008 was primarily due to a decrease in underwriting losses arising from major catastrophes, partially offset by a decrease in net favorable development of prior years premiums and losses. We had $3.8 million of underwriting losses from major catastrophes in the three months ended September 30, 2009 as compared with $135.1 million in the same period in 2008. Underwriting losses from major catastrophes in 2008 were primarily attributable to Hurricanes Gustav and Ike. Net favorable development was $12.2 million and $19.4 million in the three months ended September 30, 2009 and 2008, respectively.
The decrease in net losses and LAE in the three months ended September 30, 2009 as compared with the same period in 2008 was primarily due to the decrease in losses arising from major catastrophes in the three months ended September 30, 2009. Losses from major catastrophes were $4.6 million and $148.8 million in the three months ended September 30, 2009 and 2008, respectively. This decrease was partially offset by a decrease in net favorable loss development. Net favorable loss development was $12.4 million and $22.2 million in the three months ended September 30, 2009 and 2008, respectively. Net favorable loss development in these two periods was primarily attributable to a level of cumulative losses reported by our ceding companies that was lower than we expected and that, in our judgment, resulted in sufficient credibility in the loss experience to change our previously selected loss ratios.
Net acquisition expenses were $16.8 million and $23.7 million for the three months ended September 30, 2009 and 2008, respectively. The decrease was due to decreases in earned premium. The net acquisition expense ratio was 12.7% and 15.6% for the three months ended September 30, 2009 and 2008, respectively. The decrease in the net acquisition expense ratio was due to differences in commission adjustments relating to the prior years losses. The decrease in commissions related to prior years losses was $0.4 million which, with related premium adjustments, represented 0.2% of net earned premiums in the three months ended September 30, 2009 as compared with an increase of $2.1 million which, with related premium adjustments, represented 1.4% of net premiums earned for the same period in 2008. Net acquisition expense ratios were also impacted by changes in our mix of business.
Read the The complete ReportPTP is in the portfolios of Richard Perry of Perry Capital, David Dreman of Dreman Value Management.
Platinum Underwriters Holdings Ltd. has a market cap of $1.78 billion; its shares were traded at around $35.81 with a P/E ratio of 6.61 and P/S ratio of 1.34. The dividend yield of Platinum Underwriters Holdings Ltd. stocks is 0.89%.
Highlight of Business Operations:
We had $2.4 billion in capital resources as of September 30, 2009 as compared with $2.1 billion in capital resources as of December 31, 2008. Our net income for the three and nine months ended September 30, 2009 was $109.5 million and $292.5 million, respectively, as compared with a loss of $45.3 million for the three months ended September 30, 2008 and net income of $162.2 million for the nine months ended September 30, 2008. Our strong net income so far this year reflects disciplined underwriting, lower than expected catastrophe activity, good investment results and net favorable reserve development. Our net premiums written for the three and nine months ended September 30, 2009 were $243.6 million and $697.0 million, respectively, as compared with net premiums written for the three and nine months ended September 30, 2008 of $279.1 million and $800.3 million, respectively. The decrease in net premiums written is primarily due to non-renewal of business that fell below our minimum pricing standards.The increase in net income in the three months ended September 30, 2009 as compared with the same period in 2008 was primarily due to an increase in net underwriting income of $126.8 million, an increase in net realized gains on investments of $22.6 million and a decrease in net impairment losses on investments of $8.0 million. Net underwriting income or loss consists of net premiums earned, less net losses and LAE, net acquisition expenses and operating costs related to underwriting operations. The increase in net underwriting income was primarily due to the decrease in underwriting losses arising from major catastrophes in the three months ended September 30, 2009.
Net underwriting income for the three months ended September 30, 2009 was $63.6 million as compared with a net underwriting loss of $63.2 million for the three months ended September 30, 2008. The increase in net underwriting income in the three months ended September 30, 2009 as compared with the same period in 2008 was primarily due to a decrease in underwriting losses arising from major catastrophes in the three months ended September 30, 2009. Net underwriting losses arising from major catastrophes were $3.8 million and $135.1 million in the three months ended September 30, 2009 and 2008, respectively. Net underwriting losses from major catastrophes in 2008 were primarily attributable to Hurricanes Gustav and Ike. Net premiums written decreased in the three months ended September 30, 2009 as compared with the same period in 2008 primarily due to decreases in premiums written in both the Property and Marine and Casualty segments.
The increase in underwriting income in the three months ended September 30, 2009 as compared with the same period in 2008 was primarily due to a decrease in underwriting losses arising from major catastrophes, partially offset by a decrease in net favorable development of prior years premiums and losses. We had $3.8 million of underwriting losses from major catastrophes in the three months ended September 30, 2009 as compared with $135.1 million in the same period in 2008. Underwriting losses from major catastrophes in 2008 were primarily attributable to Hurricanes Gustav and Ike. Net favorable development was $12.2 million and $19.4 million in the three months ended September 30, 2009 and 2008, respectively.
The decrease in net losses and LAE in the three months ended September 30, 2009 as compared with the same period in 2008 was primarily due to the decrease in losses arising from major catastrophes in the three months ended September 30, 2009. Losses from major catastrophes were $4.6 million and $148.8 million in the three months ended September 30, 2009 and 2008, respectively. This decrease was partially offset by a decrease in net favorable loss development. Net favorable loss development was $12.4 million and $22.2 million in the three months ended September 30, 2009 and 2008, respectively. Net favorable loss development in these two periods was primarily attributable to a level of cumulative losses reported by our ceding companies that was lower than we expected and that, in our judgment, resulted in sufficient credibility in the loss experience to change our previously selected loss ratios.
Net acquisition expenses were $16.8 million and $23.7 million for the three months ended September 30, 2009 and 2008, respectively. The decrease was due to decreases in earned premium. The net acquisition expense ratio was 12.7% and 15.6% for the three months ended September 30, 2009 and 2008, respectively. The decrease in the net acquisition expense ratio was due to differences in commission adjustments relating to the prior years losses. The decrease in commissions related to prior years losses was $0.4 million which, with related premium adjustments, represented 0.2% of net earned premiums in the three months ended September 30, 2009 as compared with an increase of $2.1 million which, with related premium adjustments, represented 1.4% of net premiums earned for the same period in 2008. Net acquisition expense ratios were also impacted by changes in our mix of business.
Read the The complete ReportPTP is in the portfolios of Richard Perry of Perry Capital, David Dreman of Dreman Value Management.
