Platinum Underwriters second quarter results provide some indication of the tough environment facing reinsurers with net income and premiums written both down.
Platinum’s net income for the quarter fell from $49.9 million in 2013 to $36.2 million in 2014. Gross premiums written fell by 17 percent during the quarter, but the company did achieve a slight pep on its combined ratio in a 0.2 percent decrease.
Net investment income also fell, down 0.9 percent during the quarter. It appears that it has been a tough time for the reinsurer.
Commenting on their results, Michael Price, Platinum's CEO said: "Our results reflect favorable prior period development, strong investment results on a total return basis, no losses from major catastrophes and active capital management. Our book value per common share grew to $67.38 as ofJune 30, 2014, an increase of 3.1 percent from March 31, 2014."
Price added, "Absent major events in the insurance or capital markets, we expect continued downward pressure on overall reinsurance rate adequacy. We will continue emphasizing profitability over market share while seeking to maintain a position in larger markets by participating on the most attractive business available."
Net premiums written for Platinum's property and marine, casualty and finite risk segments for the quarter were $58.5 million, $54.8 million and $7.0 million, respectively, representing 48.6 percent, 45.5 percent and 5.9 percent, respectively, of total net premiums written. Combined ratios for these segments were 89.5 percent, 59.2 percent and 84.4 percent, respectively.
During the quarter ended June 30, 2014, the company repurchased an aggregate of 556,092 common shares for $35 million.
Platinum Underwriters, results, Bermuda