Platinum reports $45.3m Q3 losses

by David Masters

Story link: Platinum reports $45.3m Q3 losses

Bermuda-based Platinum Underwriting Holdings, has reported its results for the third quarter with a net loss of $45.3 million.

This is equivalent to a loss of $0.99 per basic common share.

Last year, Platinum made a third quarter profit of $91.3 million. This year’s loss is being largely attributed to storm losses from Hurricane Gustav, estimated at $120 million net of reinstatement premiums and tax benefit.

Realised losses of $18.2 million were also recorded, associated with particular securities in the company’s investment portfolio.

Net investment income was $48 million, 11.5% lower than during the same period last year.

Net premiums earned during the quarter were $280.7 million, down 3.3% on year.

Net favourable development was $32 million, compared with $13.4 million in the third quarter of 2007.

Chief executive Michael Price said the results had been ‘adversely affected’ by ’significant catastrophe activity’.

Book value per share, Mr Price noted, has fallen 1.2% since the beginning of 2008.

He added that the company is ‘cautiously optimistic’.

Given current market conditions, Platinum expects an increase in demand for reinsurance.