Platinum posts steady results; warns of tough 2014

Platinum Underwriters Holdings posted solid results for 2013 but its chief executive warned that challenges await the company in 2014 on both the underwriting and investment sides of the business.

Platinum’s net written premiums were $567.1 million in 2013, a similar level to the $565 million it wrote in 2012 although its net income dropped to $223.3 million for the year, a 31 percent decline on the $327.2 million net income it posted in 2012. Its combined ratio for the year remained stable with it posting 62.7 percent compared with 62.5 percent the year before.

Michael Price, Platinum's chief executive Officer, said: “Platinum performed very well in 2013. We produced strong earnings per share reflecting favorable reserve releases, realised capital gains, and lower than expected catastrophe losses. Our annual return on equity was 12.9 percent and our book value per common share grew to $62.07 as of December 31, 2013, an increase of 7.2 percent for the full year.

“During 2013 we returned significant capital to shareholders while remaining strongly capitalised and poised to respond to market opportunities. Although we expect 2014 will be challenging for both underwriting and investing, we will continue participating selectively in a variety of reinsurance and asset classes while prudently managing capital for the benefit of shareholders.”