Platinum Underwriters Holdings, Ltd. Reports Financial Results for the Second Quarter and Six Months Ended June 30, 2007

-- Platinum Underwriters Holdings, Ltd. (NYSE: PTP - News) today reported net income of $90.7 million, or $1.34 per diluted common share, for the quarter ended June 30, 2007. The results for the quarter include net premiums earned of $295.9 million, a decrease of 12.2% from the same quarter last year, net favorable development of $22.2 million, compared with net favorable development of $13.3 million for the same quarter last year, and net investment income of $54.7 million, an increase of 20.6% from the same quarter last year.
Michael D. Price, Chief Executive Officer, commented, "We produced strong net income in the second quarter of 2007 reflecting significant underwriting gains and growing investment income. Our book value per share was $30.35, an increase of 7.1% from December 31, 2006. Net premiums earned declined 12.2% from the same quarter last year as growth in our Property and Marine segment was more than offset by declines in the Casualty and Finite Risk segments."
Mr. Price added, "At this point we anticipate that we have written over 85% of total premium for 2007. We believe that market conditions for 2008 will be significantly influenced by the presence or absence of major catastrophe losses, significant capital management efforts and industry consolidation. With our solid balance sheet, excellent ratings and strong risk management capabilities, we believe we are well positioned to capitalize on whatever opportunities the reinsurance marketplace may present."
Results for the quarter ended June 30, 2007 were summarized as follows:

-- Net income was $90.7 million or $1.34 per diluted common share.

-- Net premiums written were $287.7 million and net premiums earned were
$295.9 million.

-- GAAP combined ratio was 80.8%.

-- Net investment income was $54.7 million.
Results for the quarter ended June 30, 2007 compared to the quarter ended June 30, 2006 were summarized as follows:
-- Net income increased $8.9 million (or 10.9%).

-- Net premiums written decreased $22.0 million (or 7.1%) and net premiums
earned decreased $41.1 million (or 12.2%).

-- GAAP combined ratio decreased 2.7 percentage points.

-- Net investment income increased $9.3 million (or 20.6%).
Net premiums written for Platinum's Property and Marine, Casualty and Finite Risk segments for the quarter ended June 30, 2007 were $119.2 million, $162.5 million and $6.0 million, respectively, representing 41.4%, 56.5% and 2.1%, respectively, of the total net premiums written. Combined ratios for these segments were 56.1%, 100.4% and 61.8%, respectively, for the quarter. Compared to the quarter ended June 30, 2006, net premiums written increased by 33.6 million (or 39.2%) in the Property and Marine segment and decreased by $36.8 million (or 18.4%) and $18.9 million in the Casualty and Finite Risk segments, respectively.
Results for the six months ended June 30, 2007 were summarized as follows:

-- Net income was $163.5 million or $2.42 per diluted common share.

-- Net premiums written were $586.6 million and net premiums earned were
$580.8 million.

-- GAAP combined ratio was 83.8%.

-- Net investment income was $106.4 million.
Results for the six months ended June 30, 2007 compared to the six months ended June 30, 2006 were summarized as follows:
-- Net income increased $4.7 million (or 3.0%).

-- Net premiums written decreased $16.4 million (or 2.7%) and net premiums
earned decreased $100.6 million (or 14.8%).

-- GAAP combined ratio decreased 0.5 percentage points.

-- Net investment income increased $17.5 million (or 19.7%).
Net premiums written for Platinum's Property and Marine, Casualty and Finite Risk segments for the six months ended June 30, 2007 were $256.9 million, $314.7 million, and $15.0 million, respectively, representing 43.8%, 53.6% and 2.6%, respectively, of the total net premiums written. Combined ratios for these segments were 64.8%, 99.3% and 68.5%, respectively, for the six months ended June 30, 2007. Compared to the six months ended June 30, 2006, net premiums written increased $6.0 million (or 2.4%) in the Property and Marine segment and decreased $66.9 million (or 17.5%) in the Casualty segment. Compared to the six months ended June 30, 2006, net premiums written increased $44.5 million in the Finite Risk segment, primarily due to the termination of two quota share contacts in the quarter ended March 31, 2006. As previously disclosed, one of these contracts was terminated on a cut-off basis, which resulted in the return of approximately $56.6 million of previously written but unearned premium.
Total assets were $5.2 billion as of June 30, 2007, an increase of $105.0 million (or 2.1%) from $5.1 billion as of December 31, 2006. Cash, cash equivalents and fixed maturity investments were $4.4 billion as of June 30, 2007, an increase of $184.1 million (or 4.4%) from $4.2 billion as of December 31, 2006.
Shareholders' equity was $2.0 billion as of June 30, 2007, an increase of $133.0 million (or 7.2%) as of December 31, 2006. Book value per common share was $30.35 as of June 30, 2007 based on 60.1 million common shares outstanding, an increase of $2.02 (or 7.1%) from $28.33 based on 59.7 million common shares outstanding as of December 31, 2006.
Financial Supplement
Platinum has posted a financial supplement on the Financial Reports page of the Investor Relations section of its website (Financial Supplement). The financial supplement provides additional detail regarding the financial performance of Platinum and its business segments.
Teleconference
Platinum will host a teleconference to discuss its financial results on Wednesday, July 25, 2007 at 8:00 a.m. Eastern time. The call can be accessed by dialing 800-289-0569 (US callers) or 913-981-5542 (international callers) or in a listen-only mode via the Investor Relations section of Platinum's website at http://www.platinumre.com. Those who intend to participate in the teleconference should register at least ten minutes in advance to ensure access to the call.
The teleconference will be recorded and a replay will be available from 11:00 a.m. Eastern time on Wednesday, July 25, 2007 until midnight Eastern time on Wednesday, August 1, 2007. To access the replay by telephone, dial 888-203-1112 (US callers) or 719-457-0820 (international callers) and specify passcode: 9590461. The teleconference will also be archived on the Investor Relations section of Platinum's website at http://www.platinumre.com for the same period of time.
Non-GAAP Financial Measures
In presenting the Company's results, management has included and discussed certain schedules containing financial measures that are not calculated under standards or rules that comprise accounting principles generally accepted in the United States (GAAP). Such measures, including segment underwriting income (or loss) and related underwriting ratios are referred to as non-GAAP. These non-GAAP measures may be defined or calculated differently by other companies. Management believes these measures, which are used to monitor the results of operations, allow for a more complete understanding of the underlying business. These measures should not be viewed as a substitute for those determined in accordance with GAAP. A reconciliation of such measures to the most comparable GAAP figures such as income before income tax expense and total shareholders' equity is presented in the attached financial information in accordance with Regulation G.
About Platinum
Platinum Underwriters Holdings, Ltd. (NYSE: PTP - News) is a leading provider of property, casualty and finite risk reinsurance coverages, through reinsurance intermediaries, to a diverse clientele on a worldwide basis. Platinum operates through its principal subsidiaries in Bermuda and the United States. The Company has a financial strength rating of A (Excellent) from A.M. Best Company, Inc. For further information, please visit Platinum's website at http://www.platinumre.com.
Safe Harbor Statement Regarding Forwarding-Looking Statements
Management believes certain statements in this press release may constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements include all statements that do not relate solely to historical or current facts, and can be identified by the use of words such as "may," "should," "estimate," "expect," "anticipate," "intend," "believe," "predict," "potential," or words of similar import. Forward- looking statements are necessarily based on estimates and assumptions that are inherently subject to significant business, economic and competitive uncertainties and risks, many of which are subject to change. These uncertainties and risks include, but are not limited to, conducting operations in a competitive environment; our ability to maintain our A.M. Best Company, Inc. rating; significant weather-related or other natural or man-made disasters over which the Company has no control; the effectiveness of our loss limitation methods and pricing models; the adequacy of the Company's liability for unpaid losses and loss adjustment expenses; the availability of retrocessional reinsurance on acceptable terms; our ability to maintain our business relationships with reinsurance brokers; general political and economic conditions, including the effects of civil unrest, acts of terrorism, war or a prolonged U.S. or global economic downturn or recession; the cyclicality of the property and casualty reinsurance business; market volatility and interest rate and currency exchange rate fluctuation; tax, regulatory or legal restrictions or limitations applicable to the Company or the property and casualty reinsurance business generally; and changes in the Company's plans, strategies, objectives, expectations or intentions, which may happen at any time at the Company's discretion. As a consequence, current plans, anticipated actions and future financial condition and results may differ from those expressed in any forward-looking statements made by or on behalf of the Company. Additionally, forward-looking statements speak only as of the date they are made, and we undertake no obligation to release publicly the results of any future revisions or updates we may make to forward-looking statements to reflect new information or circumstances after the date hereof or to reflect the occurrence of future events.

Aflac posts higher second-quarter earnings

the world's largest seller of supplemental disability insurance, said on Tuesday earnings rose 1.7 percent in the second quarter, beating expectations, helped by stronger results in Japan.
The company's shares rose 2.6 percent in after-hours trading.
Aflac usually generates about 75 percent of its earnings in Japan, but performance there has been disappointing in recent quarters. In the second quarter, pretax operating income for Japan rose 6.7 percent in dollar terms.
"The biggest issue for Aflac has been weakness in Japan, but results this quarter were better than expected," said Suneet Kamath, who covers life insurance companies at Sanford C. Bernstein & Co.
Sales in Japan have been hit by rising competition and regulatory pressure on disability insurers, Kamath said.
Aflac said net income for the quarter was $415 million, or 84 cents a share, up from $408 million, or 81 cents a share, in the year earlier quarter.
On an operating basis, excluding realized investment gains and losses and changes in the value of some derivatives, Aflac earned $407 million, or 82 cents a share, compared with $376 million, or 75 cents a share in the second quarter of 2006.
Analysts had on average expected operating results of 81 cents a share, according to Reuters Estimates.
Revenue rose 1.8 percent to $3.76 billion.
The company expected operating earnings for the third quarter to be around 80 cents to 82 cents a share and reaffirmed its forecast that it would boost 2008 operating results per share by 13 percent to 15 percent.
Aflac's shares rose to $53.24 in after hours trading, after closing on the New York Stock Exchange at $51.90. The company's shares have risen nearly 13 percent this year through Tuesday's close, while the Standard & Poor's Insurance Industry Group index (.GSPINSC: Quote, Profile, Research) has fallen nearly 2 percent.
The company's shares trade at about 14 times expected 2008 earnings, according to Reuters Estimates. Based on its historical averages and the outlook for its earnings growth, Bernstein's Kamath argues the multiple of consensus earnings should be close to 16 or 17.
(Reporting by Dan Wilchins; additional reporting by Ed Leefeldt)

ABN CEO says merger with Barclays is better

Barclays would make a better merger candidate with ABN AMRO than a bid by a group led by Royal Bank of Scotland aimed at breaking up the Dutch bank, a Dutch newspaper quoted ABN's chief executive as saying on Saturday.
But ABN AMRO (AHH.AS: Quote, Profile, Research) CEO Rijkman Groenink told NRC Handelsblad that a majority of the bank's shareholders was likely to back the higher RBS (RBS.L: Quote, Profile, Research) bid.
"I am still convinced a merger with Barclays (BARC.L: Quote, Profile, Research) is the best. It is better in terms of the content but as for the amount, it is not good enough," Groenink said in an interview.
ABN's boards have recommended Barclays' all-share offer currently worth about 35 euros (23.5 pounds) per ABN share.
The RBS consortium, which includes Spain's Santander (SAN.MC: Quote, Profile, Research) and Belgian-Dutch group Fortis (FOR.BR: Quote, Profile, Research), is offering 38.4 euros per share for ABN, of which the cash component would be 93 percent.
The group plans to break up ABN, which has more than 4,500 branches across 53 countries.
Either bid would rank as the world's biggest bank takeover.
ABN said on Wednesday it planned to discuss the consortium's revised offer with both the group's members and Barclays, prompting speculation it may switch its recommendation.
The majority of ABN's shareholders was likely to opt for the consortium's higher offer, Groenink told the newspaper.
"There is a large group of hedge funds and speculators. They have but one interest and that is the highest price, in cash and today preferably. Estimates are that they own 30-40 percent of the bank," he said. Groenink also said institutional investors, specifically those in the United States, would be compelled to go for the highest offer.
In April, he recommended the merger with Barclays as the "best option" for shareholders.

U.S. SEC mulls 5 pct ownership for proxy access

U.S. market regulators are considering allowing shareholders who own at least 5 percent of a company's stock to nominate directors in proxy statements, one source familiar with an internal agency document said on Tuesday.
The U.S. Securities and Exchange Commission is under the gun to propose new proxy access rules in time for 2008 annual shareholder meetings and agency Chairman Christopher Cox has promised to roll out the first draft by the end of July.
But there are crucial variables around any proxy access proposal. They include how many shares must be owned and for how long before a shareholder can nominate a director.
The proposal that the SEC commissioners are considering is best characterized as a "working memo," according to the source, who spoke on condition of anonymity.
It would require a shareholder to own 5 percent of a company's stock to amend bylaws that would enable the shareholder to file a change to a company's proxy. The memo also outlined a "no-hold" period, meaning that a shareholder who wanted to put forward a proxy proposal could do so immediately after buying the shares, rather than having to hold shares for any specific length of time.
An SEC spokesman declined to comment.
Proxy statements have historically been tightly controlled by corporate managers. They are mailed annually to shareholders, telling them about nominations for director seats, executive pay levels and resolutions subject to shareholder votes.
"Not only is 5 percent unworkable, it would be a field day for hedge funds or anyone to come in," said Rich Ferlauto, a director with the American Federation of State, County and Municipal Employees. "It would be taking a good principle to give shareholders long term access and turning it on its head."
Institutional investors would oppose a 5 percent ownership threshold, Ferlauto said, and called it an "irresponsible" move that would pander to hedge funds. A court decision last year forced the SEC to reconsider its rules. The agency for years routinely allowed companies to exclude certain shareholder proposals from proxy statement ballots, but a federal judge ruled that shareholders should be able to consider proposals to help them put their own candidates on corporate boards.
The SEC has been largely silent since the court ruling, which allowed shareholders this year to put forth proxy access proposals at two companies, Hewlett-Packard Co (HPQ.N: Quote, Profile, Research) and UnitedHealth Group Inc. (UNH.N: Quote, Profile, Research).
Both proposals failed to win a majority but garnered applause from AFSCME, which had successfully filed a lawsuit over the SEC's decision to deny the labor group access to U.S. insurer AIG's proxy.
Corporate groups oppose giving so-called special interest groups such as labor unions more access to annual proxy statements.
"It's clear that there isn't an easy compromise. I don't see anything we could support that organized labor could also support," said David Hirschmann, senior vice president of the U.S. Chamber of Commerce