PLATINUM UNDERWRITERS HOLDINGS LTD - FORM 8-K - EX-99.2 - FINANCIAL SUPPLEMENT

Attached files

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8-K - Q409 FORM 8K - PLATINUM UNDERWRITERS HOLDINGS LTD	fourthquarter2009_8k.htm
EX-99.1 - PRESS RELEASE - PLATINUM UNDERWRITERS HOLDINGS LTD	pressreleaseq4_2009.htm

Exhibit 99.2

Financial Supplement

Financial Information
as of December 31, 2009
(UNAUDITED)



The following supplement of information is provided to assist in your understanding of
Platinum Underwriters Holdings, Ltd.



This report is for informational purposes only. It should be read in conjunction with
documents filed with the SEC by Platinum Underwriters Holdings, Ltd., including
the Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.

Our Investor Relations Department can be reached at (441) 298-0760.

Platinum Underwriters Holdings, Ltd.

Overview

December 31, 2009

Address:

Platinum Underwriters Holdings, Ltd.

The Belvedere Building

69 Pitts Bay Road

Pembroke HM 08

Bermuda

Investor Information:

Lily Outerbridge

Vice President, Director of Investor Relations

Tel: (441) 298-0760

Fax: (441) 296-0528

Email: louterbridge@platinumre.com

Website:

www.platinumre.com

Publicly Traded Equity Securities:

Common Shares (NYSE: PTP)

Note on Non-GAAP Financial Measures:

In presenting the Company's results, management has included 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, related underwriting ratios and fully converted book value per common share, 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, assist in understanding the Company. These measures should not be viewed as a substitute for those determined in accordance with GAAP. Reconciliations of such measures to the most comparable GAAP figures such as income or loss before income tax expense or benefit and total shareholders’ equity are included within this financial supplement in accordance with Regulation G.

Safe Harbor Statement Regarding Forward-Looking Statements:

This financial supplement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934 (the “Exchange Act”). Forward-looking statements are based on our current plans or expectations that are inherently subject to significant business, economic and competitive uncertainties and contingencies. These uncertainties and contingencies can affect actual results and could cause actual results to differ materially from those expressed in any forward-looking statements made by, or on behalf of, us. In particular, statements using words such as “may,” “should,” “estimate,” “expect,” “anticipate,” “intend,” “believe,” “predict,” “potential,” or words of similar import generally involve forward-looking statements. The inclusion of forward-looking statements in this financial supplement should not be considered as a representation by us or any other person that our current plans or expectations will be achieved. Numerous factors could cause our actual results to differ materially from those in forward-looking statements, including, but not limited to, severe catastrophic events over which we have no control, the effectiveness of our loss limitation methods and pricing models, the adequacy of our liability for unpaid losses and loss adjustment expenses, our ability to maintain our A.M. Best Company, Inc. and Standard & Poor’s ratings, our ability to raise capital on acceptable terms if necessary, the cyclicality of the property and casualty reinsurance business, the highly competitive nature of the property and casualty reinsurance industry, our ability to maintain our business relationships with reinsurance brokers, the availability of retrocessional reinsurance on acceptable terms, market volatility and interest rate and currency exchange rate fluctuation, tax, regulatory or legal restrictions or limitations applicable to us or the property and casualty reinsurance business generally, general political and economic conditions, including the effects of civil unrest, acts of terrorism, war or a prolonged United States or global economic downturn or recession; and changes in our plans, strategies, objectives, expectations or intentions, which may happen at any time at our discretion. As a consequence, our future financial condition and results may differ from those expressed in any forward-looking statements made by or on behalf of us. The foregoing factors should not be construed as exhaustive. Additionally, forward-looking statements speak only as of the date they are made, and we undertake no obligation to revise or update forward-looking statements to reflect new information or circumstances after the date hereof or to reflect the occurrence of future events.

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Platinum Underwriters Holdings, Ltd.

Table of Contents

December 31, 2009

Section:	Page:
Balance Sheet:
a. Condensed Consolidated Balance Sheets	3

Statements of Operations:
a. Condensed Consolidated Statements of Operations and Comprehensive Income - Summary	4
b. Condensed Consolidated Statements of Operations and Comprehensive Income - by Quarter	5

Earnings and Book Value Per Common Share Analysis:
a. Computation of Basic and Diluted Earnings Per Common Share - Summary	6
b. Computation of Basic and Diluted Earnings Per Common Share - by Quarter	7
c. Fully Converted Book Value Per Common Share	8

Cash Flow Statement:
a. Condensed Consolidated Statements of Cash Flows - Summary	9
b. Condensed Consolidated Statements of Cash Flows - by Quarter	10

Segment Data:
a. Segment Reporting - Three Month Summary	11
b. Segment Reporting - Twelve Month Summary	12
c. Property and Marine Segment - by Quarter	13
d. Casualty Segment - by Quarter	14
e. Finite Risk Segment - by Quarter	15

Net Premiums Written Data:
a. Net Premiums Written - Supplemental Information	16
b. Premiums by Line of Business - Three Month Summary	17
c. Premiums by Line of Business - Twelve Month Summay	18

Other Company Data:
a. Key Ratios, Share Data, Ratings	19

Investments:
a. Investment Portfolio	20
b. Available-for-Sale Security Detail	21
c. Corporate Bonds Detail	22
d. Net Realized Gains (Losses) on Investments and Net Impairment Losses	23

Loss Reserves:
a. Analysis of Losses and LAE	24
b. Summary of Favorable (Unfavorable) Development of Losses and Related Premiums & Commissions	25

Exposures:
a. Estimated Exposures to Peak Zone Property Catastrophe Losses	26

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Platinum Underwriters Holdings, Ltd.

Condensed Consolidated Balance Sheets

December 31, 2009

(amounts in thousands, except per share amounts)

	December 31, 2009		September 30, 2009		June 30, 2009		March 31, 2009		December 31, 2008

Assets
Investments	$	3,660,515		3,953,620		4,049,472		3,968,831	$	3,371,886
Cash, cash equivalents and short-term investments		709,134		460,171		349,786		345,810		888,053
Reinsurance premiums receivable		269,912		272,489		261,817		356,736		307,539
Accrued investment income		29,834		32,646		33,813		32,817		29,041
Reinsurance balances (prepaid and recoverable)		29,710		31,171		24,715		18,220		23,310
Deferred acquisition costs		40,427		45,581		43,720		47,828		50,719
Funds held by ceding companies		84,478		85,211		120,232		136,944		136,278
Other assets		197,568		276,733		84,583		83,810		120,337
Total assets	$	5,021,578		5,157,622		4,968,138		4,990,996	$	4,927,163

Liabilities
Unpaid losses and loss adjustment expenses	$	2,349,336		2,373,151		2,394,330		2,494,997	$	2,463,506
Unearned premiums		180,609		209,951		190,757		213,638		218,890
Debt obligations		250,000		250,000		250,000		250,000		250,000
Commissions payable		90,461		93,013		121,780		127,195		125,551
Other liabilities		73,441		61,442		58,567		75,707		59,819
Total liabilities		2,943,847		2,987,557		3,015,434		3,161,537		3,117,766

Total shareholders' equity		2,077,731		2,170,065		1,952,704		1,829,459		1,809,397

Total liabilities and shareholders' equity	$	5,021,578		5,157,622		4,968,138		4,990,996	$	4,927,163


Book value per common share (a)	$	45.22		43.55		39.23		35.76	$	34.58

(a) Book value per common share is determined by dividing shareholders' equity, excluding capital attributable to preferred shares, by actual common shares outstanding.

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Platinum Underwriters Holdings, Ltd.

Condensed Consolidated Statements of Operations and Comprehensive Income - Summary

(amounts in thousands, except per share amounts)

	Three Months Ended						Twelve Months Ended
	December 31, 2009			December 31, 2008			December 31, 2009			December 31, 2008

Revenue
Net premiums earned	$	227,584			274,238			937,336		$	1,114,796
Net investment income		40,871			42,537			163,941			186,574
Net realized gains on investments		24,713			60,521			78,630			57,254
Net impairment losses		(5,864	)		(17,590	)		(17,603	)		(30,686	)
Other (expense) income		(1,138	)		(195	)		3,084			337
Total revenue		286,166			359,511			1,165,388			1,328,275

Expenses
Net losses and LAE		109,993			193,775			478,342			718,233
Net acquisition expenses		47,916			59,716			176,419			242,715
Net changes in fair value of derivatives		2,913			5,700			9,741			14,114
Operating expenses		25,698			20,265			94,682			88,208
Net foreign currency exchange (gains) losses		(242	)		3,497			(399	)		6,760
Interest expense		4,759			4,753			19,027			19,006
Total expenses		191,037			287,706			777,812			1,089,036

Income before income tax expense		95,129			71,805			387,576			239,239
Income tax expense		4,358			7,753			4,285			12,999

Net income		90,771			64,052			383,291			226,240
Preferred dividends		-			2,602			1,301			10,408

Net income attributable to common shareholders	$	90,771			61,450			381,990		$	215,832

Basic
Weighted average common shares outstanding		48,294			47,363			49,535			49,310
Basic earnings per common share	$	1.88			1.30			7.71		$	4.38

Diluted
Adjusted weighted average common shares outstanding		51,466			54,499			52,315			56,855
Diluted earnings per common share	$	1.76			1.18			7.33		$	3.98

Comprehensive income
Net income	$	90,771			64,052			383,291		$	226,240
Other comprehensive income (loss), net of deferred taxes		(36,726	)		(18,730	)		133,226			(164,648	)
Comprehensive income	$	54,045			45,322			516,517		$	61,592

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Platinum Underwriters Holdings, Ltd.

Condensed Consolidated Statements of Operations and Comprehensive Income - by Quarter

(amounts in thousands, except per share amounts)

	Three Months Ended
	December 31, 2009			September 30, 2009			June 30, 2009			March 31, 2009			December 31, 2008

Revenue
Net premiums earned	$	227,584			229,538			232,462			247,752		$	274,238
Net investment income		40,871			44,747			44,077			34,246			42,537
Net realized gains on investments		24,713			22,553			10,794			20,570			60,521
Net impairment losses		(5,864	)		(5,075	)		(3,256	)		(3,408	)		(17,590	)
Other (expense) income		(1,138	)		(1,222	)		5,212			232			(195	)
Total revenue		286,166			290,541			289,289			299,392			359,511

Expenses
Net losses and LAE		109,993			99,240			124,945			144,164			193,775
Net acquisition expenses		47,916			50,009			38,338			40,156			59,716
Net changes in fair value of derivatives		2,913			4,305			106			2,417			5,700
Operating expenses		25,698			25,210			22,906			20,868			20,265
Net foreign currency exchange (gains) losses		(242	)		(616	)		(537	)		996			3,497
Interest expense		4,759			4,757			4,756			4,755			4,753
Total expenses		191,037			182,905			190,514			213,356			287,706

Income before income tax expense		95,129			107,636			98,775			86,036			71,805
Income tax (benefit) expense		4,358			(1,832	)		645			1,114			7,753

Net income		90,771			109,468			98,130			84,922			64,052
Preferred dividends		-			-			-			1,301			2,602

Net income attributable to common shareholders	$	90,771			109,468			98,130			83,621		$	61,450

Basic
Weighted average common shares outstanding		48,294			49,660			50,580			49,521			47,363
Basic earnings per common share	$	1.88			2.20			1.94			1.69		$	1.30

Diluted
Adjusted weighted average common shares outstanding		51,466			52,039			51,594			53,702			54,499
Diluted earnings per common share	$	1.76			2.10			1.90			1.58		$	1.18

Comprehensive income
Net income	$	90,771			109,468			98,130			84,922		$	64,052
Other comprehensive income (loss), net of deferred taxes		(36,726	)		106,570			64,958			(1,576	)		(18,730	)
Comprehensive income	$	54,045			216,038			163,088			83,346		$	45,322

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Platinum Underwriters Holdings, Ltd.

Computation of Basic and Diluted Earnings Per Common Share - Summary

(amounts in thousands, except per share amounts)

	Three Months Ended				Twelve Months Ended
	December 31, 2009		December 31, 2008		December 31, 2009		December 31, 2008

Earnings
Basic
Net income attributable to common shareholders	$	90,771		61,450		381,990	$	215,832

Diluted
Net income attributable to common shareholders		90,771		61,450		381,990		215,832
Effect of dilutive securities:
Preferred share dividends		-		2,602		1,301		10,408
Adjusted net income for diluted earnings per share	$	90,771		64,052		383,291	$	226,240


Common Shares
Basic
Weighted average common shares outstanding		48,294		47,363		49,535		49,310

Diluted
Weighted average common shares outstanding		48,294		47,363		49,535		49,310
Effect of dilutive securities:
Conversion of preferred shares		-		5,750		756		5,177
Common share options		2,623		994		1,595		2,017
Restricted common shares and common share units		549		392		429		351
Adjusted weighted average common shares outstanding		51,466		54,499		52,315		56,855


Earnings Per Common Share
Basic earnings per common share	$	1.88		1.30		7.71	$	4.38

Diluted earnings per common share	$	1.76		1.18		7.33	$	3.98

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Platinum Underwriters Holdings, Ltd.

Computation of Basic and Diluted Earnings Per Common Share - by Quarter

(amounts in thousands, except per share amounts)

	Three Months Ended
	December 31, 2009		September 30, 2009		June 30, 2009		March 31, 2009		December 31, 2008

Earnings
Basic
Net income attributable to common shareholders	$	90,771		109,468		98,130		83,621	$	61,450

Diluted
Net income attributable to common shareholders		90,771		109,468		98,130		83,621		61,450
Effect of dilutive securities:
Preferred share dividends		-		-		-		1,301		2,602
Adjusted net income for diluted earnings per share	$	90,771		109,468		98,130		84,922	$	64,052


Common Shares
Basic
Weighted average common shares outstanding		48,294		49,660		50,580		49,521		47,363

Diluted
Weighted average common shares outstanding		48,294		49,660		50,580		49,521		47,363
Effect of dilutive securities:
Conversion of preferred shares		-		-		-		3,067		5,750
Common share options		2,623		1,950		665		812		994
Restricted common shares and common share units		549		429		349		302		392
Adjusted weighted average common shares outstanding		51,466		52,039		51,594		53,702		54,499


Earnings Per Common Share
Basic earnings per common share	$	1.88		2.20		1.94		1.69	$	1.30

Diluted earnings per common share	$	1.76		2.10		1.90		1.58	$	1.18

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Platinum Underwriters Holdings, Ltd.

Fully Converted Book Value Per Common Share

December 31, 2009

	Conversion		Conversion	Common
	Multiple /		Amount	Shares		Book Value Per
	Exercise Price		($000)	(000)		Common Share

Total shareholders' equity as of December 31, 2009			$ 2,077,731	45,943	(a)	$ 45.22

Common share options:
The Travelers Companies, Inc.	27.00		-	1,785		(1.56)
Renaissance Re Holdings, Ltd.	27.00		-	744		(0.65)

Management and directors' options	31.12	(b)	69,647	2,238		(0.61)

Directors' and officers' restricted common share units			-	933		(0.82)

Fully converted book value per common share as of December 31, 2009			$ 2,147,378	51,643		$ 41.58

(a) As of December 31, 2009 there were 45,942,639 common shares issued and outstanding. Included in this number were 229,017 of restricted common shares issued but unvested.

(b) Weighted average exercise price of options with a price below $38.29, the closing share price at December 31, 2009.

On February 17, 2009, our 5,750,000 outstanding 6% Series A Mandatory Convertible Preferred Shares automatically converted into 5,750,000 common shares at a ratio of one to one which was based on the volume weighted average price of our common shares from January 14, 2009 through February 11, 2009.

See Note on Non-GAAP Financial Measures on page 1.

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Platinum Underwriters Holdings, Ltd.

Condensed Consolidated Statements of Cash Flows - Summary

($ in thousands)

	Three Months Ended						Twelve Months Ended
	December 31, 2009			December 31, 2008			December 31, 2009			December 31, 2008

Net cash provided by (used in) operating activities	$	54,720			(135,345	)		477,197		$	128,899

Net cash provided by (used in) investing activities		365,976			364,255			(350,289	)		(117,268	)

Net cash used in financing activities		(150,835	)		(12,517	)		(264,238	)		(266,798	)

Effect of exchange rate changes on foreign currency cash		640			(4,057	)		7,097			(8,095	)

Net increase (decrease) in cash and cash equivalents	$	270,501			212,336			(130,233	)	$	(263,262	)

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Platinum Underwriters Holdings, Ltd.

Condensed Consolidated Statements of Cash Flows - by Quarter

($ in thousands)

	Three Months Ended
	December 31, 2009			September 30, 2009			June 30, 2009			March 31, 2009			December 31, 2008

Net cash provided by (used in) operating activities	$	54,720			98,591			54,292			269,594		$	(135,345	)

Net cash provided by (used in) investing activities		365,976			(21,305	)		9,821			(704,781	)		364,255

Net cash used in financing activities		(150,835	)		(2,705	)		(43,743	)		(66,955	)		(12,517	)

Effect of exchange rate changes on foreign currency cash		640			1,765			6,485			(1,793	)		(4,057	)

Net increase (decrease) in cash and cash equivalents	$	270,501			76,346			26,855			(503,935	)	$	212,336

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Platinum Underwriters Holdings, Ltd.

Segment Reporting - Three Month Summary

($ in thousands)

	Three Months Ended December 31, 2009												Three Months Ended December 31, 2008
	Property and Marine			Casualty			Finite Risk			Total			Property and Marine			Casualty			Finite Risk			Total

Net premiums written	$	114,423			82,548			3,884		$	200,855		$	138,546			94,789			3,957		$	237,292

Net premiums earned		133,934			89,189			4,461			227,584			152,241			118,241			3,756			274,238

Net losses and LAE		64,081			47,085			(1,173	)		109,993			118,035			84,818			(9,078	)		193,775
Net acquisition expenses		19,281			22,821			5,814			47,916			21,697			27,041			10,978			59,716
Other underwriting expenses		10,406			7,094			370			17,870			8,718			5,248			309			14,275
Total underwriting expenses		93,768			77,000			5,011			175,779			148,450			117,107			2,209			267,766
Segment underwriting income (loss)	$	40,166			12,189			(550	)		51,805		$	3,791			1,134			1,547			6,472

Net investment income											40,871												42,537
Net realized gains on investments											24,713												60,521
Net impairment losses											(5,864	)											(17,590	)
Net changes in fair value of derivatives											(2,913	)											(5,700	)
Net foreign currency exchange gains (losses)											242												(3,497	)
Other expense											(1,138	)											(195	)
Corporate expenses not allocated to segments											(7,828	)											(5,990	)
Interest expense											(4,759	)											(4,753	)
Income before income tax expense										$	95,129											$	71,805

GAAP underwriting ratios:
Loss and LAE		47.8	%		52.8	%		(26.3	%)		48.3	%		77.5	%		71.7	%		(241.7	%)		70.7	%
Acquisition expense		14.4	%		25.6	%		130.3	%		21.1	%		14.3	%		22.9	%		292.3	%		21.8	%
Other underwriting expense		7.8	%		8.0	%		8.3	%		7.9	%		5.7	%		4.4	%		8.2	%		5.2	%
Combined		70.0	%		86.4	%		112.3	%		77.3	%		97.5	%		99.0	%		58.8	%		97.7	%

Statutory underwriting ratios:
Loss and LAE		47.8	%		52.8	%		(26.3	%)		48.3	%		77.5	%		71.7	%		(241.7	%)		70.7	%
Acquisition expense		15.0	%		24.2	%		145.8	%		21.3	%		14.3	%		22.2	%		278.8	%		21.9	%
Other underwriting expense		9.1	%		8.6	%		9.5	%		8.9	%		6.3	%		5.5	%		7.8	%		6.0	%
Combined		71.9	%		85.6	%		129.0	%		78.5	%		98.1	%		99.4	%		44.9	%		98.6	%

See Note on Non-GAAP Financial Measures on page 1.

The GAAP underwriting ratios are calculated by dividing each item above by net premiums earned.

The Statutory underwriting ratios are based on statutory accounting principles and are calculated as follows:

(1) Net losses & LAE are divided by net premiums earned;

(2) Net acquisition expenses are divided by net premiums written and exclude changes in deferred acquisition costs; and

(3) Other underwriting expenses are divided by net premiums written.

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Platinum Underwriters Holdings, Ltd.

Segment Reporting - Twelve Month Summary

($ in thousands)

	Twelve Months Ended December 31, 2009												Twelve Months Ended December 31, 2008
	Property and Marine			Casualty			Finite Risk			Total			Property and Marine			Casualty			Finite Risk			Total

Net premiums written	$	517,011			356,488			24,335		$	897,834		$	593,087			430,084			14,394		$	1,037,565

Net premiums earned		528,488			388,901			19,947			937,336			599,110			503,300			12,386			1,114,796

Net losses and LAE		250,646			226,511			1,185			478,342			397,200			337,051			(16,018	)		718,233
Net acquisition expenses		66,992			88,841			20,586			176,419			90,816			125,934			25,965			242,715
Other underwriting expenses		37,331			25,644			1,412			64,387			38,492			23,982			1,270			63,744
Total underwriting expenses		354,969			340,996			23,183			719,148			526,508			486,967			11,217			1,024,692
Segment underwriting income (loss)	$	173,519			47,905			(3,236	)		218,188		$	72,602			16,333			1,169			90,104

Net investment income											163,941												186,574
Net realized gains on investments											78,630												57,254
Net impairment losses											(17,603	)											(30,686	)
Net changes in fair value of derivatives											(9,741	)											(14,114	)
Net foreign currency exchange gains (losses)											399												(6,760	)
Other income											3,084												337
Corporate expenses not allocated to segments											(30,295	)											(24,464	)
Interest expense											(19,027	)											(19,006	)
Income before income tax expense										$	387,576											$	239,239

GAAP underwriting ratios:
Loss and LAE		47.4	%		58.2	%		5.9	%		51.0	%		66.3	%		67.0	%		(129.3	%)		64.4	%
Acquisition expense		12.7	%		22.8	%		103.2	%		18.8	%		15.2	%		25.0	%		209.6	%		21.8	%
Other underwriting expense		7.1	%		6.6	%		7.1	%		6.9	%		6.4	%		4.8	%		10.3	%		5.7	%
Combined		67.2	%		87.6	%		116.2	%		76.7	%		87.9	%		96.8	%		90.6	%		91.9	%

Statutory underwriting ratios:
Loss and LAE		47.4	%		58.2	%		5.9	%		51.0	%		66.3	%		67.0	%		(129.3	%)		64.4	%
Acquisition expense		12.6	%		22.3	%		88.0	%		18.5	%		15.0	%		25.1	%		184.3	%		21.5	%
Other underwriting expense		7.2	%		7.2	%		5.8	%		7.2	%		6.5	%		5.6	%		8.8	%		6.1	%
Combined		67.2	%		87.7	%		99.7	%		76.7	%		87.8	%		97.7	%		63.8	%		92.0	%

See Note on Non-GAAP Financial Measures on page 1.

The GAAP underwriting ratios are calculated by dividing each item above by net premiums earned.

The Statutory underwriting ratios are based on statutory accounting principles and are calculated as follows:

(1) Net losses & LAE are divided by net premiums earned;

(2) Net acquisition expenses are divided by net premiums written and exclude changes in deferred acquisition costs; and

(3) Other underwriting expenses are divided by net premiums written.

- 12 -

Platinum Underwriters Holdings, Ltd.

Property and Marine Segment - by Quarter

($ in thousands)

	Three Months Ended
	December 31, 2009			September 30, 2009			June 30, 2009			March 31, 2009			December 31, 2008

Net premiums written	$	114,423			147,448			113,405			141,735		$	138,546

Net premiums earned		133,934			132,567			128,316			133,671			152,241

Net losses and LAE		64,081			46,307			62,807			77,451			118,035
Net acquisition expenses		19,281			16,821			13,526			17,364			21,697
Other underwriting expenses		10,406			9,643			9,123			8,159			8,718
Total underwriting expenses		93,768			72,771			85,456			102,974			148,450
Segment underwriting income	$	40,166			59,796			42,860			30,697		$	3,791


GAAP underwriting ratios:
Loss and LAE		47.8	%		34.9	%		48.9	%		57.9	%		77.5	%
Acquisition expense		14.4	%		12.7	%		10.5	%		13.0	%		14.3	%
Other underwriting expense		7.8	%		7.3	%		7.1	%		6.1	%		5.7	%
Combined		70.0	%		54.9	%		66.5	%		77.0	%		97.5	%

Statutory underwriting ratios:
Loss and LAE		47.8	%		34.9	%		48.9	%		57.9	%		77.5	%
Acquisition expense		15.0	%		12.8	%		10.0	%		12.4	%		14.3	%
Other underwriting expense		9.1	%		6.5	%		8.0	%		5.8	%		6.3	%
Combined		71.9	%		54.2	%		66.9	%		76.1	%		98.1	%

See Note on Non-GAAP Financial Measures on page 1.

The GAAP underwriting ratios are calculated by dividing each item above by net premiums earned.

The Statutory underwriting ratios are based on statutory accounting principles and are calculated as follows:

(1) Net losses & LAE are divided by net premiums earned;

(2) Net acquisition expenses are divided by net premiums written and exclude changes in deferred acquisition costs; and

(3) Other underwriting expenses are divided by net premiums written.

- 13 -

Platinum Underwriters Holdings, Ltd.

Casualty Segment - by Quarter

($ in thousands)

	Three Months Ended
	December 31, 2009			September 30, 2009			June 30, 2009			March 31, 2009			December 31, 2008

Net premiums written	$	82,548			88,467			87,459			98,014		$	94,789

Net premiums earned		89,189			90,591			99,161			109,960			118,241

Net losses and LAE		47,085			59,243			61,042			59,141			84,818
Net acquisition expenses		22,821			19,393			20,406			26,221			27,041
Other underwriting expenses		7,094			6,751			6,130			5,669			5,248
Total underwriting expenses		77,000			85,387			87,578			91,031			117,107
Segment underwriting income	$	12,189			5,204			11,583			18,929		$	1,134


GAAP underwriting ratios:
Loss and LAE		52.8	%		65.4	%		61.6	%		53.8	%		71.7	%
Acquisition expense		25.6	%		21.4	%		20.6	%		23.8	%		22.9	%
Other underwriting expense		8.0	%		7.5	%		6.2	%		5.2	%		4.4	%
Combined		86.4	%		94.3	%		88.4	%		82.8	%		99.0	%

Statutory underwriting ratios:
Loss and LAE		52.8	%		65.4	%		61.6	%		53.8	%		71.7	%
Acquisition expense		24.2	%		21.2	%		20.4	%		23.5	%		22.2	%
Other underwriting expense		8.6	%		7.6	%		7.0	%		5.8	%		5.5	%
Combined		85.6	%		94.2	%		89.0	%		83.1	%		99.4	%

See Note on Non-GAAP Financial Measures on page 1.

The GAAP underwriting ratios are calculated by dividing each item above by net premiums earned.

The Statutory underwriting ratios are based on statutory accounting principles and are calculated as follows:

(1) Net losses & LAE are divided by net premiums earned;

(2) Net acquisition expenses are divided by net premiums written and exclude changes in deferred acquisition costs; and

(3) Other underwriting expenses are divided by net premiums written.

- 14 -

Platinum Underwriters Holdings, Ltd.

Finite Risk Segment - by Quarter

($ in thousands)

	Three Months Ended
	December 31, 2009			September 30, 2009			June 30, 2009			March 31, 2009			December 31, 2008

Net premiums written	$	3,884			7,675			7,253			5,523		$	3,957

Net premiums earned		4,461			6,380			4,985			4,121			3,756

Net losses and LAE		(1,173	)		(6,310	)		1,096			7,572			(9,078	)
Net acquisition expenses		5,814			13,795			4,406			(3,429	)		10,978
Other underwriting expenses		370			342			400			300			309
Total underwriting expenses		5,011			7,827			5,902			4,443			2,209
Segment underwriting income (loss)	$	(550	)		(1,447	)		(917	)		(322	)	$	1,547


GAAP underwriting ratios:
Loss and LAE		(26.3	%)		(98.9	%)		22.0	%		183.7	%		(241.7	%)
Acquisition expense		130.3	%		216.2	%		88.4	%		(83.2	%)		292.3	%
Other underwriting expense		8.3	%		5.4	%		8.0	%		7.3	%		8.2	%
Combined		112.3	%		122.7	%		118.4	%		107.8	%		58.8	%

Statutory underwriting ratios:
Loss and LAE		(26.3	%)		(98.9	%)		22.0	%		183.7	%		(241.7	%)
Acquisition expense		145.8	%		184.2	%		66.3	%		(57.6	%)		278.8	%
Other underwriting expense		9.5	%		4.5	%		5.5	%		5.4	%		7.8	%
Combined		129.0	%		89.8	%		93.8	%		131.5	%		44.9	%

See Note on Non-GAAP Financial Measures on page 1.

The GAAP underwriting ratios are calculated by dividing each item above by net premiums earned.

The Statutory underwriting ratios are based on statutory accounting principles and are calculated as follows:

(1) Net losses & LAE are divided by net premiums earned;

(2) Net acquisition expenses are divided by net premiums written and exclude changes in deferred acquisition costs; and

(3) Other underwriting expenses are divided by net premiums written.

- 15 -

Platinum Underwriters Holdings, Ltd.

Net Premiums Written - Supplemental Information

($ in thousands)

	Three Months Ended				Twelve Months Ended
	December 31, 2009		December 31, 2008		December 31, 2009		December 31, 2008

Property and Marine
Excess-of-loss	$	74,941		100,348		348,363	$	436,951
Proportional		39,482		38,198		168,648		156,136
Subtotal Property and Marine		114,423		138,546		517,011		593,087
Casualty
Excess-of-loss		65,505		77,931		308,054		373,307
Proportional		17,043		16,858		48,434		56,777
Subtotal Casualty		82,548		94,789		356,488		430,084
Finite Risk
Excess-of-loss		150		2,304		-		3,277
Proportional		3,734		1,653		24,335		11,117
Subtotal Finite Risk		3,884		3,957		24,335		14,394
Combined Segments
Excess-of-loss		140,596		180,583		656,417		813,535
Proportional		60,259		56,709		241,417		224,030
Total	$	200,855		237,292		897,834	$	1,037,565

	Three Months Ended				Twelve Months Ended
	December 31, 2009		December 31, 2008		December 31, 2009		December 31, 2008
Property and Marine
United States	$	84,320		95,484		350,726	$	377,328
International		30,103		43,062		166,285		215,759
Subtotal Property and Marine		114,423		138,546		517,011		593,087
Casualty
United States		72,787		77,921		315,422		366,444
International		9,761		16,868		41,066		63,640
Subtotal Casualty		82,548		94,789		356,488		430,084
Finite Risk
United States		3,884		3,957		24,335		13,161
International		-		-		-		1,233
Subtotal Finite Risk		3,884		3,957		24,335		14,394
Combined Segments
United States		160,991		177,362		690,483		756,933
International		39,864		59,930		207,351		280,632
Total	$	200,855		237,292		897,834	$	1,037,565

- 16 -

Platinum Underwriters Holdings, Ltd.

Premiums by Line of Business - Three Month Summary

($ in thousands)

	Three Months Ended December 31, 2009						Three Months Ended December 31, 2008
	Gross		Net		Net		Gross		Net		Net
	Premiums		Premiums		Premiums		Premiums		Premiums		Premiums
	Written		Written		Earned		Written		Written		Earned

Property and Marine
North American Property Proportional	$	2,049		2,049		1,827		1,648		1,648	$	4,380
North American Property Catastrophe		29,117		29,115		35,013		41,752		41,290		43,402
North American Property Risk		21,617		19,463		21,280		27,606		22,981		21,720
Other Property		34,644		34,140		34,686		29,818		29,818		29,728
Marine / Aviation Proportional		2,115		2,115		1,849		2,397		2,397		2,446
Marine / Aviation Excess		4,961		4,961		5,387		9,636		9,568		10,030
International Property Proportional		5,533		5,533		5,951		12,428		12,428		12,424
International Property Catastrophe		16,464		14,363		24,367		14,326		13,455		22,038
International Property Risk		2,684		2,684		3,574		4,961		4,961		6,073
Subtotal		119,184		114,423		133,934		144,572		138,546		152,241

Casualty
Clash		3,348		3,348		3,427		4,978		4,978		4,952
1st Dollar GL		4,066		4,066		4,208		6,081		6,081		6,252
1st Dollar Other		1,649		1,649		1,644		2,160		2,160		1,916
Casualty Excess		52,755		52,755		58,645		60,382		60,382		74,523
Accident & Health		2,856		2,856		7,316		2,511		2,511		4,562
International Casualty		5,003		5,003		6,583		9,479		9,479		10,723
International Motor		520		520		652		534		534		644
Financial Lines		12,351		12,351		6,714		8,664		8,664		14,669
Subtotal		82,548		82,548		89,189		94,789		94,789		118,241

Finite Risk
Finite Property		8		8		8		-		-		-
Finite Casualty		3,876		3,876		4,453		3,957		3,957		3,756
Subtotal		3,884		3,884		4,461		3,957		3,957		3,756

Total	$	205,616		200,855		227,584		243,318		237,292	$	274,238

- 17 -

Platinum Underwriters Holdings, Ltd.

Premiums by Line of Business - Twelve Month Summary

($ in thousands)

	Twelve Months Ended December 31, 2009						Twelve Months Ended December 31, 2008
	Gross		Net		Net		Gross		Net		Net
	Premiums		Premiums		Premiums		Premiums		Premiums		Premiums
	Written		Written		Earned		Written		Written		Earned

Property and Marine
North American Property Proportional	$	7,350		7,350		10,792		14,122		14,122	$	18,958
North American Property Catastrophe		129,142		127,888		126,418		177,825		163,474		160,884
North American Property Risk		93,451		77,088		78,413		94,520		82,945		84,471
Other Property		141,568		141,064		141,387		118,119		118,119		117,782
Marine / Aviation Proportional		8,687		8,687		9,302		11,262		11,262		11,573
Marine / Aviation Excess		17,474		17,494		21,734		36,617		36,536		37,804
International Property Proportional		29,773		29,773		28,731		42,909		42,909		42,586
International Property Catastrophe		102,593		93,854		98,176		106,947		103,870		105,187
International Property Risk		13,813		13,813		13,535		19,850		19,850		19,865
Subtotal		543,851		517,011		528,488		622,171		593,087		599,110

Casualty
Clash		15,571		15,571		15,577		21,230		21,230		21,405
1st Dollar GL		15,298		15,298		18,026		20,241		20,241		22,871
1st Dollar Other		5,913		5,913		6,106		5,739		5,739		5,261
Casualty Excess		229,484		229,484		261,113		289,575		289,575		345,104
Accident & Health		35,235		35,235		31,377		21,769		21,769		25,696
International Casualty		28,702		28,702		32,873		39,633		39,633		40,328
International Motor		3,049		3,049		3,059		3,192		3,225		3,214
Financial Lines		23,236		23,236		20,770		28,672		28,672		39,421
Subtotal		356,488		356,488		388,901		430,051		430,084		503,300

Finite Risk
Finite Property		-		-		-		931		931		931
Finite Casualty		24,335		24,335		19,947		13,463		13,463		11,455
Subtotal		24,335		24,335		19,947		14,394		14,394		12,386

Total	$	924,674		897,834		937,336		1,066,616		1,037,565	$	1,114,796

- 18 -

Platinum Underwriters Holdings, Ltd.

Key Ratios, Share Data, Ratings

	As of and for the Three Months Ended
	December 31, 2009			September 30, 2009			June 30, 2009			March 31, 2009			December 31, 2008

Key Ratios

Combined ratio (%)		77.3	%		72.3	%		76.9	%		80.1	%		97.7	%

Invested assets to shareholders' equity ratio	2.10:1			2.03:1			2.25:1			2.36:1			2.35:1

Debt to total capital (%)		10.7	%		10.3	%		11.3	%		12.0	%		12.1	%

Net premiums written (annualized) to shareholders' equity		0.39			0.45			0.43			0.54			0.52


Share Data
Book value per common share (a)	$	45.22		$	43.55		$	39.23		$	35.76		$	34.58
Common shares outstanding (000's)		45,943			49,827			49,778			51,163			47,482

Market Price Per Common Share
High	$	39.45		$	36.87		$	30.67		$	36.12		$	36.16
Low		34.63			28.07			27.12			25.18			21.38
Close	$	38.29		$	35.84		$	28.59		$	28.36		$	36.08

Industry Ratings
Financial Strength Rating
A.M. Best Company, Inc.		A			A			A			A			A
Standard & Poor's Ratings Services		A			n/a			n/a			n/a			n/a
Counterparty Credit Ratings (senior unsecured)
A.M. Best Company, Inc.	bbb			bbb			bbb			bbb			bbb
Standard & Poor's Ratings Services	BBB+			BBB			BBB			BBB			BBB

Supplemental Data
Total employees		146			146			146			153			153

See Note on Non-GAAP Financial Measures on page 1.

(a) Book value per common share is determined by dividing shareholders' equity, excluding capital attributable to preferred shares, by actual common shares outstanding.

n/a = not applicable

- 19 -

Platinum Underwriters Holdings, Ltd.

Investment Portfolio

($ in thousands)

	December 31, 2009								December 31, 2008
						Weighted								Weighted
			Weighted			Average					Weighted			Average
			Average			Market Yield					Average			Market Yield
	Fair Value		Book Yield			to Maturity			Fair Value		Book Yield			to Maturity

Available-for-sale securities
U.S. Government	$	608,697		2.9	%		3.0	%	$	4,641		4.4	%		1.2	%
U.S. Government agencies		101,082		0.6	%		0.2	%		811,489		3.1	%		1.9	%
Corporate bonds		476,986		5.1	%		3.7	%		690,528		5.0	%		6.0	%
Commercial mortgage-backed securities		215,020		5.5	%		7.0	%		372,806		5.4	%		11.8	%
Residential mortgage-backed securities		714,703		4.6	%		5.5	%		577,907		6.1	%		6.6	%
Asset-backed securities		59,699		2.6	%		6.6	%		134,245		4.9	%		8.2	%
Municipal bonds		759,501		4.2	%		3.4	%		393,484		3.7	%		3.0	%
Non-U.S. governments		578,364		3.1	%		2.5	%		78,704		4.2	%		4.0	%
Total Fixed Maturities		3,514,052		4.0	%		3.8	%		3,063,804		4.6	%		5.4	%
Preferred Stocks		3,897		29.8	%		13.2	%		2,845		18.1	%		19.7	%
Total	$	3,517,949		4.0	%		3.8	%	$	3,066,649		4.6	%		5.4	%

Trading securities
U.S. Government	$	-		-			-		$	196,383		3.6	%		3.4	%
Insurance-linked securities		25,682		10.7	%		8.5	%		-		-			-
Non-U.S. dollar denominated securities:
U.S. Government agencies		16,423		1.9	%		1.8	%		-		-			-
Corporate bonds		77		4.5	%		2.1	%		4,125		4.4	%		9.6	%
Non-U.S. governments		100,384		4.6	%		3.1	%		104,729		4.0	%		2.7	%
Total	$	142,566		5.4	%		3.9	%	$	305,237		3.6	%		3.2	%


	December 31, 2009								December 31, 2008
	Amount		% of Total						Amount		% of Total
Credit quality of investment portfolio*
Aaa	$	2,341,963		64.0	%				$	2,299,184		68.2	%
Aa		517,404		14.1	%					486,582		14.4	%
A		404,711		11.1	%					439,255		13.0	%
Baa		315,275		8.6	%					143,518		4.3	%
Below investment grade		81,162		2.2	%					3,347		0.1	%
Total	$	3,660,515		100.0	%				$	3,371,886		100.0	%


Credit quality
Weighted average credit quality	Aa2								Aa1

* Rated using external rating agencies (primarily Moody's).
(Aaa-Best Quality; Aa-High Quality; A-Upper to Medium Quality, Baa - Investment Grade)

- 20 -

Platinum Underwriters Holdings, Ltd.

Available-for-Sale Security Detail

($ in thousands)

	December 31, 2009
			Unrealized			Credit				Weighted
	Fair Value		Gain (Loss)			Quality		Duration		Average Life

Available-for-sale securities
U.S. Government	$	608,697		(5,527	)	Aaa			5.9

U.S. Government agencies		101,082		1,082		Aaa			0.3

Corporate bonds:
Industrial		286,580		11,560			A3		2.8
Finance		42,947		(1,280	)		A3		4.6
Utilities		50,343		1,377			A3		3.6
Insurance		52,301		1,877			A3		4.4
Preferreds with maturity date		27,760		(3,913	)	Baa1			6.4
Hybrid trust preferreds		17,055		(275	)		A1		2.2
Subtotal		476,986		9,346			A3		3.4

Commercial mortgage-backed securities		215,020		(28,156	)	Aa1			4.0		5.1

Residential mortgage-backed securities:
U.S. Government agency residential mortgage-backed securities		613,182		339		Aaa			4.8		7.4
Non-agency residential mortgage-backed securities		93,744		(44,962	)		A3		-		3.8
Alt-A residential mortgage-backed securities		7,777		(8,012	)		B1		-		4.6
Subtotal		714,703		(52,635	)	Aa1			4.2		6.9

Asset-backed securities:
Asset-backed securities		50,024		1,024		Aaa			0.1		6.4
Sub-prime asset-backed securities		9,675		(25,721	)	Ba3			-		7.9
Subtotal		59,699		(24,697	)	Aa2			0.1		6.6

Municipal bonds		759,501		14,824		Aa3			5.7

Non-U.S. governments		578,364		9,734		Aaa			3.2

Preferred Stocks		3,897		2,018			B3		2.6

Total	$	3,517,949		(74,011	)	Aa2			4.3

- 21 -

Platinum Underwriters Holdings, Ltd.

Corporate Bonds Detail

($ in thousands)

	December 31, 2009
					Unrealized			Credit
	Par Value		Fair Value		Gain (Loss)			Quality

Largest Holdings by Issuer
Wal-Mart Stores, Inc.	$	19,328		21,450	$	258		Aa2
BHP Billiton Limited		18,000		19,427		1,185			A1
Vodafone Group plc		18,850		19,248		350		Baa1
MetLife, Inc.		17,897		18,952		1,192			A1
Bank of America Corporation		20,500		16,508		(3,898	)	Baa2
Philip Morris International Inc.		14,000		15,583		873			A2
Diageo plc		14,000		14,694		595			A3
Hewlett-Packard Company		13,100		14,339		640			A2
The Southern Company		12,688		13,010		326			A2
AT&T Inc.		12,250		12,952		584			A2
Caterpillar Inc.		10,000		11,003		948			A2
HCC Insurance Holdings, Inc.		10,000		10,115		34		Baa1
Kraft Foods Inc.		9,200		9,834		158		Baa2
Telefonica, S.A.		8,500		9,070		422		Baa1
General Electric Company		8,375		8,763		257		Aa2
Snap-On Incorporated		7,000		7,452		401		Baa1
Canadian National Railway Company		6,900		7,273		399			A3
United Technologies Corporation		7,000		7,195		204			A2
EOG Resources, Inc.		6,660		7,081		160			A3
Pfizer Inc.	$	6,000		6,520	$	473			A1

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Platinum Underwriters Holdings, Ltd.

Net Realized Gains (Losses) on Investments and Net Impairment Losses

($ in thousands)

	Three Months Ended					Twelve Months Ended
	December 31, 2009			December 31, 2008		December 31, 2009			December 31, 2008

Net realized gains (losses) on investments
Subsidiary domiciled in Bermuda	$	17,500			41,827		60,078		$	38,664
Subsidiaries domiciled in the United States		7,213			18,602		18,548			18,500
Subsidiary domiciled in the United Kingdom		-			92		4			90
Total	$	24,713			60,521		78,630		$	57,254


Net realized gains (losses) on investments
Sale of securities	$	33,078			52,830		80,924		$	47,573
Mark-to-market adjustment on trading securities		(8,365	)		7,691		(2,294	)		9,681
Total	$	24,713			60,521		78,630		$	57,254


Net impairment losses by type of security
Corporate bonds	$	-			187		-		$	7,636
Commercial mortgage-backed securities		140			-		2,757			-
Residential mortgage-backed securities		2,583			15,787		8,358			15,787
Asset-backed securities		3,141			1,616		5,280			1,616
Preferred stocks		-			-		1,208			5,647
Total	$	5,864			17,590		17,603		$	30,686

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Platinum Underwriters Holdings, Ltd.

Analysis of Losses and LAE

($ in thousands)

	Analysis of Losses and LAE
	Twelve Months Ended December 31, 2009 (a)											Twelve Months Ended December 31, 2008 (b)
	Gross			Ceded		Net			Paid to Incurred %			Gross		Ceded			Net		Paid to Incurred %

Paid losses and LAE	$	620,332			13,122	$	607,210			126.9	%	$	595,323		13,007		$	582,316		81.1	%
Change in unpaid losses and LAE		(126,020	)		2,848		(128,868	)					128,552		(7,365	)		135,917
Losses and LAE incurred	$	494,312			15,970	$	478,342					$	723,875		5,642		$	718,233


	Analysis of Unpaid Losses and LAE

	As of December 31, 2009											As of December 31, 2008
	Gross			Ceded		Net			%			Gross		Ceded			Net		%

Outstanding losses and LAE	$	680,487			9,169	$	671,318			28.8	%	$	706,618		8,158		$	698,460		28.5	%
Incurred but not reported		1,668,849			5,159		1,663,690			71.2	%		1,756,888		3,303			1,753,585		71.5	%
Unpaid losses and LAE	$	2,349,336			14,328	$	2,335,008			100.0	%	$	2,463,506		11,461		$	2,452,045		100.0	%


(a) Gross and ceded losses and LAE incurred includes effects of foreign currency exchange rate gains and losses of $19 and $11,850, respectively.

(b) Gross and ceded losses and LAE incurred includes effects of foreign currency exchange rate gains and losses of $26,087 and $30, respectively.

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Platinum Underwriters Holdings, Ltd.

Summary of Favorable (Unfavorable) Development of Losses and Related Premiums & Commissions

($ in thousands)

	Three Months Ended December 31, 2009												Three Months Ended December 31, 2008
	Property and Marine			Casualty			Finite Risk			Total			Property and Marine			Casualty			Finite Risk			Total

Non-Catastrophe Favorable (Unfavorable) Development
Net loss development related to prior years	$	5,278			29,881			4,415			39,574			7,749			33,143			8,262		$	49,154
Net premium adjustments related to prior years' losses		2,620			107			-			2,727			3,320			135			-			3,455
Net commission adjustments related to prior years' losses		63			(1,325	)		(4,804	)		(6,066	)		20			(28	)		(9,647	)		(9,655	)
Net favorable (unfavorable) development		7,961			28,663			(389	)		36,235			11,089			33,250			(1,385	)		42,954

Catastrophe Favorable (Unfavorable) Development
Net loss development related to prior years		(925	)		(8	)		-			(933	)		3,233			(25	)		2,565			5,773
Net premium adjustments related to prior years' losses		(281	)		-			-			(281	)		590			-			-			590
Net commission adjustments related to prior years' losses		-			-			-			-			-			-			-			-
Net favorable (unfavorable) development		(1,206	)		(8	)		-			(1,214	)		3,823			(25	)		2,565			6,363

Total net favorable (unfavorable) development	$	6,755			28,655			(389	)		35,021			14,912			33,225			1,180		$	49,317


	Twelve Months Ended December 31, 2009												Twelve Months Ended December 31, 2008
	Property and Marine			Casualty			Finite Risk			Total			Property and Marine			Casualty			Finite Risk			Total

Non-Catastrophe Favorable (Unfavorable) Development
Net loss development related to prior years	$	17,732			73,655			12,885			104,272			52,387			73,429			20,220		$	146,036
Net premium adjustments related to prior years' losses		4,369			67			-			4,436			12,432			1,117			6			13,555
Net commission adjustments related to prior years' losses		6,144			4,441			(15,207	)		(4,622	)		(5,079	)		(4,770	)		(22,372	)		(32,221	)
Net favorable (unfavorable) development		28,245			78,163			(2,322	)		104,086			59,740			69,776			(2,146	)		127,370

Catastrophe Favorable (Unfavorable) Development
Net loss development related to prior years		(3,473	)		(66	)		59			(3,480	)		18,833			(187	)		2,565			21,211
Net premium adjustments related to prior years' losses		349			-			-			349			(952	)		-			-			(952	)
Net commission adjustments related to prior years' losses		-			-			-			-			-			-			-			-
Net favorable (unfavorable) development		(3,124	)		(66	)		59			(3,131	)		17,881			(187	)		2,565			20,259

Total net favorable (unfavorable) development	$	25,121			78,097			(2,263	)		100,955			77,621			69,589			419		$	147,629

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Platinum Underwriters Holdings, Ltd.

Estimated Exposures to Peak Zone Property Catastrophe Losses

As of January 1, 2010

($ in millions)

Estimated Probable Maximum Losses by Zone and Peril

			20 Year Return Period			100 Year Return Period		250 Year Return Period
Zones	Perils		Estimated Gross Loss		Estimated Net Loss	Estimated Gross Loss	Estimated Net Loss	Estimated Gross Loss		Estimated Net Loss

United States / Caribbean	Hurricane	$	200		200	414	414	469	$	469
United States	Earthquake		14		14	247	247	323		323
Pan-European	Windstorm		160		97	331	217	398		283
Japan	Earthquake		18		18	127	127	256		256
Japan	Typhoon	$	8		8	69	69	78	$	78


Indicative Catastrophe Scenarios

Catastrophe Scenarios			Estimated Company Net Loss Interquartile Range

Category 3 U.S. / Caribbean Hurricane		$	16	-	42
Category 4 U.S. / Caribbean Hurricane			23	-	95
Magnitude 6.9 California Earthquake			0	-	5
Magnitude 7.5 California Earthquake		$	1	-	10

The Company has developed the estimates of losses expected from certain catastrophes for its portfolio of property, marine, workers’ compensation, personal accident contracts and catastrophe contributions from insurance-linked securities using commercially available catastrophe models, which are applied and adjusted by the Company. These estimates include assumptions regarding the location, size and magnitude of an event, the frequency of events, the construction type and damageability of property in a zone, and the cost of rebuilding property in a zone, among other assumptions. These estimates do not include any losses that may be expected to arise from the Company’s casualty portfolio as a result of such catastrophes. Return period refers to the frequency with which losses of a given amount or greater are expected to occur.

Gross loss estimates are before income tax and net of reinstatement premiums. Net loss estimates are before income tax, net of reinstatement premiums, and net of retrocessional recoveries. Ranges shown for indicative catastrophe scenarios are interquartile reflecting the middle 50% of indications. That is, 25% of indications fall below the low end of a given range and 25% of indications fall above the high end of that range. Thus, an actual event may produce losses that fall materially outside the indicated ranges.

The estimates set forth above are based on assumptions that are inherently subject to significant uncertainties and contingencies. These uncertainties and contingencies can affect actual losses and could cause actual losses to differ materially from those expressed above. In particular, modeled loss estimates do not necessarily accurately predict actual losses, and may significantly misestimate actual losses. Such estimates, therefore, should not be considered as a representation of actual losses. Investors should not rely on the foregoing information when considering investment in the Company. The Company undertakes no duty to update or revise such information to reflect the occurrence of future events.

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