Platinum Posts $86 Million Q4 Net; $330 Million Full Year

Bermuda’s Platinum Underwriters Holdings, Ltd. reported net income of $86.0 million, or $1.28 per diluted common share, for the quarter ended December 31, 2006 and net income of $329.7 million, or $4.96 per diluted common share, for the year ended December 31, 2006.

A summary of first quarter highlights included the following:
— Net premiums written were $275.6 million; net premiums earned were $315.7 million.
— GAAP combined ratio was 81.3 percent.
— Net investment income, including interest on funds held, was $50.8 million.

Selected comparisons with the quarter ended December 31, 2005 were as follows:
— Net income increased $188.5 million.
— Net premiums written decreased $115.2 million (or 29.5 percent) and net premiums earned decreased $127.1 million (or 28.7 percent).
— GAAP combined ratio decreased by 50.6 percentage points.
— Net investment income, which includes interest on funds held, increased $13.6 million (or 36.6 percent).

Results for the year ended December 31, 2006 were summarized as follows:
— Net income was $329.7 million or $4.96 per diluted common share.
— Net premiums written were $1.18 billion and net premiums earned were $1.34 billion.
— GAAP combined ratio was 83.6 percent.
— Net investment income, including interest on funds held, was $188.0 million.

Selected comparisons with the year ended December 31, 2005 were summarized as follows:
— Net income increased $467.1 million.
— Net premiums written decreased $541.1 million (or 31.5 percent) and net premiums earned decreased by $378.0 million (or 22.0 percent).
— GAAP combined ratio decreased by 30.9 percentage points.
— Net investment income, including interest on funds held, increased $58.5 million (or 45.2 percent).

CEO Michael D. Price commented: “Overall, 2006 was a successful year for Platinum. Our return on beginning common equity was approximately 23 percent. For both the quarter and the year, our underwriting results were strong due, in part, to the absence of major catastrophes and favorable prior period development. Investment income grew in the quarter and full year, aided significantly by positive cash flow from operations.”

He added that “during an active but orderly January 1 renewal season we expanded our property catastrophe excess-of-loss business where rate adequacy for U.S.-exposed risks improved in line with our expectations. Renewals were mixed in other lines of business with modest additions in some areas and small reductions where rates, terms and conditions did not meet our standards. We believe this marks a strong start for 2007.”

Platinum hosted a teleconference to discuss its financial results today Tuesday, February 20. The complete earnings report and a replay of the teleconference is available on the Company’s web site at http://www.platinumre.com. To access the replay by telephone, dial 888-203-1112 (US callers) or 719-457-0820 (international callers) and specify passcode: 2473366.