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

Attached files

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8-K - PLATINUM UNDERWRITERS HOLDINGS LTD	fourthquarter2010_8k.htm
EX-99.1 - PLATINUM UNDERWRITERS HOLDINGS LTD	pressreleaseq4_2010.htm

Exhibit 99.2

Financial Supplement

Financial Information
as of December 31, 2010
(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 Securities and Exchange Commission 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, 2010


Address:						Investor Information:

Platinum Underwriters Holdings, Ltd.						Lily Outerbridge
The Belvedere Building						Vice President, Director of Investor Relations
69 Pitts Bay Road						Tel: (441) 298-0760
Pembroke, HM 08 Bermuda						Fax: (441) 296-0528
Website: www.platinumre.com						Email: louterbridge@platinumre.com

Definitions and presentation:

All financial information contained herein is unaudited except for the information for the fiscal year ended December 31, 2009. Amounts may not reconcile exactly due to rounding differences.

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, operating income or loss, related underwriting ratios, book value per common share 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, 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. Reconciliations of such measures to the most comparable GAAP figures 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 and Section 21E of the Securities Exchange Act of 1934. 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 natural or man-made catastrophic events, 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

Section:	Page:

Financial Highlights:
a. Financial Highlights		3

Balance Sheet:
a. Condensed Consolidated Balance Sheets - by Quarter		4

Statements of Operations:
a. Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) - Summary		5
b. Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) - by Quarter		6

Other Company Data:
a. Computation of Net Operating Income (Loss) and Net Operating Income (Loss) per Diluted Common Share		7
b. Key Ratios, Share Data, Ratings		8

Earnings and Book Value Per Common Share Analysis:
a. Computation of Basic and Diluted Earnings (Loss) Per Common Share - Summary		9
b. Computation of Basic and Diluted Earnings (Loss) Per Common Share - by Quarter		10
c. Book Value Per Common Share		11

Statements of Cash Flow:
a. Condensed Consolidated Statements of Cash Flows - Summary		12
b. Condensed Consolidated Statements of Cash Flows - by Quarter		13

Segment Data:
a. Segment Reporting - Three Month Summary		14
b. Segment Reporting - Twelve Month Summary		15
c. Property and Marine Segment - by Quarter		16
d. Casualty Segment - by Quarter		17
e. Finite Risk Segment - by Quarter		18

Net Premiums Written Data:
a. Net Premiums Written - Supplemental Information		19
b. Premiums by Line of Business - Three Month Summary		20
c. Premiums by Line of Business - Twelve Month Summay		21

Investments:
a. Investment Portfolio		22
b. Available-for-Sale Security Detail		23
c. Corporate Bonds Detail		24
d. Municipal Bonds Detail		25
e. Net Realized Gains on Investments and Net Impairment Losses on Investments		26

Loss Reserves:
a. Analysis of Losses and Loss Adjustment Expenses		27
b. Summary of Favorable (Unfavorable) Development of Losses and Related Premiums & Commissions		28

Exposures:
a. Estimated Exposures to Peak Zone Property Catastrophe Losses		29

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Platinum Underwriters Holdings, Ltd.

Financial Highlights

December 31, 2010 and 2009

($ and amounts in thousands, except per share data)

	Three Months Ended						Twelve Months Ended
	December 31,			December 31,			December 31,			December 31,
	2010			2009			2010			2009

Highlights
Net premiums written	$	162,017		$	200,855		$	760,589		$	897,834
Net premiums earned		184,980			227,584			779,994			937,336
Underwriting income		(14,497	)		51,805			108,869			218,188
Net investment income		30,430			40,871			134,385			163,941
Net operating income (loss) (a)		(9,108	)		73,203			159,180			324,963
Net realized gains on investments		8,494			24,713			107,791			78,630
Net impairment losses on investments		(11,050	)		(5,864	)		(36,610	)		(17,603	)
Net income (loss) attributable to common shareholders	$	(17,724	)	$	90,771		$	215,498		$	381,990

Total assets	$	4,614,313		$	5,021,578		$	4,614,313		$	5,021,578
Investments and cash		4,212,498			4,369,649			4,212,498			4,369,649
Total shareholders' equity		1,895,455			2,077,731			1,895,455			2,077,731
Unpaid losses and loss adjustment expenses	$	2,217,378		$	2,349,336		$	2,217,378		$	2,349,336

Per share data
Common shares outstanding		37,758			45,943			37,758			45,943
Weighted average common shares outstanding - basic		38,670			48,294			41,930			49,535
Adjusted weighted average common shares outstanding - diluted		40,953			51,466			45,052			52,315
Basic earnings (loss) per common share	$	(0.46	)	$	1.88		$	5.14		$	7.71
Diluted earnings (loss) per common share		(0.46	)		1.76			4.78			7.33
Operating income (loss) per common share - diluted (a)		(0.24	)		1.42			3.52			6.20
Dividends per common share		0.08			0.08			0.32			0.32
Book value per common share	$	50.20		$	45.22		$	50.20		$	45.22

(a) See computation of net operating income (loss) on page 7.

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Platinum Underwriters Holdings, Ltd.

Condensed Consolidated Balance Sheets - by Quarter

($ in thousands, except per share data)

	December 31,		September 30,		June 30,		March 31,		December 31,
	2010		2010		2010		2010		2009

Assets
Investments	$	3,047,973	$	2,874,351	$	3,335,914	$	3,754,054	$	3,660,515
Cash, cash equivalents and short-term investments		1,164,525		1,664,833		1,192,099		761,774		709,134
Accrued investment income		31,288		27,315		28,373		32,031		29,834
Reinsurance premiums receivable		162,682		175,914		160,729		320,724		269,912
Reinsurance balances (prepaid and recoverable)		18,434		24,253		28,036		28,025		29,710
Funds held by ceding companies		84,078		82,428		85,030		85,695		84,478
Deferred acquisition costs		36,584		39,841		38,994		43,381		40,427
Other assets		68,749		47,324		65,574		68,346		197,568
Total assets	$	4,614,313	$	4,936,259	$	4,934,749	$	5,094,030	$	5,021,578

Liabilities
Unpaid losses and loss adjustment expenses	$	2,217,378	$	2,194,173	$	2,224,026	$	2,378,253	$	2,349,336
Unearned premiums		154,975		180,432		168,545		205,606		180,609
Debt obligations		250,000		250,000		250,000		250,000		250,000
Commissions payable		59,388		58,460		57,370		96,451		90,461
Other liabilities		37,117		88,321		129,373		80,076		73,441
Total liabilities		2,718,858		2,771,386		2,829,314		3,010,386		2,943,847

Total shareholders' equity		1,895,455		2,164,873		2,105,435		2,083,644		2,077,731

Total liabilities and shareholders' equity	$	4,614,313	$	4,936,259	$	4,934,749	$	5,094,030	$	5,021,578


Book value per common share (a)	$	50.20	$	55.13	$	51.23	$	46.59	$	45.22

(a) Book value per common share is determined by dividing shareholders' equity by actual common shares outstanding of 37,757,926 shares.

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Platinum Underwriters Holdings, Ltd.

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) - Summary

($ and amounts in thousands, except per share data)

	Three Months Ended						Twelve Months Ended
	December 31,			December 31,			December 31,			December 31,
	2010			2009			2010			2009

Revenue
Net premiums earned	$	184,980		$	227,584		$	779,994		$	937,336
Net investment income		30,430			40,871			134,385			163,941
Net realized gains on investments		8,494			24,713			107,791			78,630
Net impairment losses on investments		(11,050	)		(5,864	)		(36,610	)		(17,603	)
Other income (expense)		(165	)		(1,138	)		(207	)		3,084
Total revenue		212,689			286,166			985,353			1,165,388

Expenses
Net losses and loss adjustment expenses		152,283			109,993			467,420			478,342
Net acquisition expenses		32,742			47,916			146,676			176,419
Net changes in fair value of derivatives		3,089			2,913			9,588			9,741
Operating expenses		20,731			25,698			82,636			94,682
Net foreign currency exchange losses (gains)		2,446			(242	)		1,385			(399	)
Interest expense		4,764			4,759			18,996			19,027
Total expenses		216,055			191,037			726,701			777,812

Income (loss) before income taxes		(3,366	)		95,129			258,652			387,576
Income tax expense		14,358			4,358			43,154			4,285

Net income (loss)		(17,724	)		90,771			215,498			383,291
Preferred dividends		-			-			-			1,301

Net income (loss) attributable to common shareholders	$	(17,724	)	$	90,771		$	215,498		$	381,990

Basic
Weighted average common shares outstanding		38,670			48,294			41,930			49,535
Basic earnings (loss) per common share	$	(0.46	)	$	1.88		$	5.14		$	7.71

Diluted
Adjusted weighted average common shares outstanding		40,953			51,466			45,052			52,315
Diluted earnings (loss) per common share	$	(0.46	)	$	1.76		$	4.78		$	7.33

Comprehensive income (loss)
Net income (loss)	$	(17,724	)	$	90,771		$	215,498		$	383,291
Other comprehensive income (loss), net of deferred taxes		(83,083	)		(36,726	)		45,517			133,226
Comprehensive income (loss)	$	(100,807	)	$	54,045		$	261,015		$	516,517

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Platinum Underwriters Holdings, Ltd.

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) - by Quarter

($ and amounts in thousands, except per share data)

	Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2010			2010			2010			2010			2009

Revenue
Net premiums earned	$	184,980		$	183,404		$	191,432		$	220,178		$	227,584
Net investment income		30,430			31,078			35,372			37,505			40,871
Net realized gains on investments		8,494			44,351			49,489			5,457			24,713
Net impairment losses on investments		(11,050	)		(4,048	)		(3,410	)		(18,102	)		(5,864	)
Other income (expense)		(165	)		(171	)		(144	)		273			(1,138	)
Total revenue		212,689			254,614			272,739			245,311			286,166

Expenses
Net losses and loss adjustment expenses		152,283			79,094			71,475			164,568			109,993
Net acquisition expenses		32,742			32,517			44,088			37,329			47,916
Net changes in fair value of derivatives		3,089			4,154			30			2,315			2,913
Operating expenses		20,731			20,004			20,160			21,741			25,698
Net foreign currency exchange losses (gains)		2,446			235			(67	)		(1,229	)		(242	)
Interest expense		4,764			4,763			4,709			4,760			4,759
Total expenses		216,055			140,767			140,395			229,484			191,037

Income (loss) before income taxes		(3,366	)		113,847			132,344			15,827			95,129
Income tax expense		14,358			20,185			8,205			406			4,358

Net income (loss)		(17,724	)		93,662			124,139			15,421			90,771
Preferred dividends		-			-			-			-			-

Net income (loss) attributable to common shareholders	$	(17,724	)	$	93,662		$	124,139		$	15,421		$	90,771

Basic
Weighted average common shares outstanding		38,670			40,485			43,225			45,431			48,294
Basic earnings (loss) per common share	$	(0.46	)	$	2.31		$	2.87		$	0.34		$	1.88

Diluted
Adjusted weighted average common shares outstanding		40,953			44,044			46,249			48,494			51,466
Diluted earnings (loss) per common share	$	(0.46	)	$	2.13		$	2.68		$	0.32		$	1.76

Comprehensive income (loss)
Net income (loss)	$	(17,724	)	$	93,662		$	124,139		$	15,421		$	90,771
Other comprehensive income (loss), net of deferred taxes		(83,083	)		45,895			34,833			47,872			(36,726	)
Comprehensive income (loss)	$	(100,807	)	$	139,557		$	158,972		$	63,293		$	54,045

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Platinum Underwriters Holdings, Ltd.

Computation of Net Operating Income (Loss) and Net Operating Income (Loss) per Diluted Common Share

($ and amounts in thousands, except per share data)

	Three Months Ended						Twelve Months Ended
	December 31,			December 31,			December 31,			December 31,
	2010			2009			2010			2009

Net income (loss) attributable to common shareholders	$	(17,724	)	$	90,771		$	215,498		$	381,990

Adjustments for:
Net realized gains on investments, net of tax		(4,725	)		(22,188	)		(89,949	)		(72,138	)
Net impairment losses on investments, net of tax		10,926			4,822			32,139			15,420
Net foreign currency exchange losses (gains), net of tax		2,415			(202	)		1,492			(309	)
Net operating income (loss) (a)	$	(9,108	)	$	73,203		$	159,180		$	324,963

Per diluted common share:
Net income (loss) attributable to common shareholders	$	(0.46	)	$	1.76		$	4.78		$	7.30
Adjustments for:
Net realized gains on investments		(0.12	)		(0.43	)		(2.00	)		(1.38	)
Net impairment losses on investments		0.28			0.09			0.71			0.29
Net foreign currency exchange losses (gains)		0.06			-			0.03			(0.01	)
Net operating income (loss) (b)	$	(0.24	)	$	1.42		$	3.52		$	6.20

Adjusted weighted average common shares outstanding - diluted		38,670	(c)		51,466			45,052			52,315

(a) Operating income represents net income after taxes excluding net realized gains and losses on investments, net impairment losses on investments and net foreign exchange gains and losses.

(b) Operating income per diluted common share is calculated by dividing operating income by diluted weighted average shares outstanding for the period.

(c) The adjusted weighted average common shares outstanding - diluted for the three months ended December 31, 2010 was 40,953. We have used the basic weighted average common shares outstanding in the computation above as potential common shares are not included in the denominator of a diluted per share computation during a period of loss if the effect of including those potential shares would be anti-dilutive.

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Platinum Underwriters Holdings, Ltd.

Key Ratios, Share Data, Ratings

	As of and for the Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2010			2010			2010			2010			2009

Key Ratios

Combined ratio (%)		107.8	%		68.1	%		67.4	%		98.7	%		77.3	%

Investable assets to shareholders' equity ratio	2.22:1			2.10:1			2.15:1			2.17:1			2.10:1

Debt to total capital (%)		11.7	%		10.4	%		10.6	%		10.7	%		10.7	%

Net premiums written (annualized) to shareholders' equity		0.34			0.37			0.29			0.47			0.39


Share Data

Book value per common share (a)	$	50.20		$	55.13		$	51.23		$	46.59		$	45.22

Common shares outstanding (000's)		37,758			39,266			41,095			44,722			45,943

Market Price Per Common Share
High	$	45.80		$	44.04		$	39.28		$	38.89		$	39.45
Low		42.10			35.63			35.06			34.60			34.63
Close	$	44.97		$	43.52		$	36.29		$	37.08		$	38.29

Industry Ratings

Financial Strength Ratings:
A.M. Best Company, Inc.		A			A			A			A			A
Standard & Poor's Ratings Services		A			A			A			A			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		144			145			145			145			146

See Definitions and Presentation on page 1.

(a) Book value per common share is determined by dividing shareholders' equity by actual common shares outstanding of 37,757,926 shares.

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Platinum Underwriters Holdings, Ltd.

Computation of Basic and Diluted Earnings (Loss) Per Common Share - Summary

($ and amounts in thousands, except per share data)

	Three Months Ended					Twelve Months Ended
	December 31,			December 31,		December 31,		December 31,
	2010			2009		2010		2009

Earnings (Loss)
Basic
Net income (loss) attributable to common shareholders	$	(17,724	)	$	90,771	$	215,498	$	381,990

Diluted
Net income (loss) attributable to common shareholders		(17,724	)		90,771		215,498		381,990
Effect of dilutive securities:
Preferred share dividends		-			-		-		1,301
Adjusted net income (loss) for diluted earnings per common share	$	(17,724	)	$	90,771	$	215,498	$	383,291


Common Shares
Basic
Weighted average common shares outstanding		38,670			48,294		41,930		49,535

Diluted
Weighted average common shares outstanding		38,670			48,294		41,930		49,535
Effect of dilutive securities:
Conversion of preferred shares		-			-		-		756
Common share options		1,703			2,623		2,610		1,595
Restricted shares and share units		580			549		512		429
Adjusted weighted average common shares outstanding		40,953			51,466		45,052		52,315


Earnings (Loss) Per Common Share
Basic earnings (loss) per common share	$	(0.46	)	$	1.88	$	5.14	$	7.71

Diluted earnings (loss) per common share	$	(0.46	)	$	1.76	$	4.78	$	7.33

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Platinum Underwriters Holdings, Ltd.

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

($ and amounts in thousands, except per share data)

	Three Months Ended
	December 31,			September 30,		June 30,		March 31,		December 31,
	2010			2010		2010		2010		2009

Earnings (Loss)
Basic
Net income (loss) attributable to common shareholders	$	(17,724	)	$	93,662	$	124,139	$	15,421	$	90,771

Diluted
Net income (loss) attributable to common shareholders		(17,724	)		93,662		124,139		15,421		90,771
Effect of dilutive securities:
Preferred share dividends		-			-		-		-		-
Adjusted net income (loss) for diluted earnings per common share	$	(17,724	)	$	93,662	$	124,139	$	15,421	$	90,771


Common Shares
Basic
Weighted average common shares outstanding		38,670			40,485		43,225		45,431		48,294

Diluted
Weighted average common shares outstanding		38,670			40,485		43,225		45,431		48,294
Effect of dilutive securities:
Conversion of preferred shares		-			-		-		-		-
Common share options		1,703			3,064		2,583		2,540		2,623
Restricted shares and share units		580			495		441		523		549
Adjusted weighted average common shares outstanding		40,953			44,044		46,249		48,494		51,466


Earnings (Loss) Per Common Share
Basic earnings (loss) per common share	$	(0.46	)	$	2.31	$	2.87	$	0.34	$	1.88

Diluted earnings (loss) per common share	$	(0.46	)	$	2.13	$	2.68	$	0.32	$	1.76

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Platinum Underwriters Holdings, Ltd.

Book Value Per Common Share

($ and amounts in thousands, except per share data)

	December 31,		December 31,
	2010		2009

Price per share at period end	$	44.97	$	38.29

Shareholders' equity	$	1,895,455	$	2,077,731

Add: Assumed exercise of share options		34,213		69,647

Shareholders' equity - diluted	$	1,929,668	$	2,147,378

Basic common shares outstanding		37,758		45,943

Add: Common share options (a)		1,010		2,529

Add: Management and directors' options (b)		1,081		2,238

Add: Directors' and officers' restricted share units (c)		790		933

Diluted common shares outstanding		40,639		51,643


Book Value Per Common Share

Basic book value per common share	$	50.20	$	45.22

Fully converted book value per common share	$	47.48	$	41.58

See Definitions and Presentation on page 1.

(a) Options with a price of $27.00.

(b) Options with a price below $44.97, the closing share price at December 31, 2010.

(c) As of December 31, 2010 there were 37,758 common shares issued and outstanding. Included in this number were 218 of restricted shares issued but unvested.

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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,			December 31,			December 31,			December 31,
	2010			2009			2010			2009

Net cash provided by (used in) operating activities	$	(38,042	)	$	54,720		$	24,729		$	477,197

Net cash provided by (used in) investing activities		(301,531	)		365,976			738,318			(350,289	)

Net cash provided by (used in) financing activities		(171,626	)		(150,835	)		(456,973	)		(264,238	)

Effect of foreign currency exchange rate changes on cash		450			640			(981	)		7,097

Net increase (decrease) in cash and cash equivalents	$	(510,749	)	$	270,501		$	305,093		$	(130,233	)

- 12 -

Platinum Underwriters Holdings, Ltd.

Condensed Consolidated Statements of Cash Flows - by Quarter

($ in thousands)

	Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2010			2010			2010			2010			2009

Net cash provided by (used in) operating activities	$	(38,042	)	$	41,244		$	(12,897	)	$	34,424		$	54,720

Net cash provided by (used in) investing activities		(301,531	)		432,699			728,210			(121,060	)		365,976

Net cash provided by (used in) financing activities		(171,626	)		(84,720	)		(140,564	)		(60,063	)		(150,835	)

Effect of foreign currency exchange rate changes on cash		450			7,129			(5,517	)		(3,043	)		640

Net increase (decrease) in cash and cash equivalents	$	(510,749	)	$	396,352		$	569,232		$	(149,742	)	$	270,501

- 13 -

Platinum Underwriters Holdings, Ltd.

Segment Reporting - Three Month Summary

($ in thousands)

	Three Months Ended December 31, 2010												Three Months Ended December 31, 2009
	Property and Marine			Casualty			Finite Risk			Total			Property and Marine			Casualty			Finite Risk			Total

Net premiums written	$	76,900		$	82,656		$	2,461		$	162,017		$	114,423		$	82,548		$	3,884		$	200,855

Net premiums earned		92,065			90,307			2,608			184,980			133,934			89,189			4,461			227,584

Net losses and loss adjustment expenses		111,215			39,935			1,133			152,283			64,081			47,085			(1,173	)		109,993
Net acquisition expenses		12,635			18,600			1,507			32,742			19,281			22,821			5,814			47,916
Other underwriting expenses		8,354			5,796			302			14,452			10,406			7,094			370			17,870
Total underwriting expenses		132,204			64,331			2,942			199,477			93,768			77,000			5,011			175,779
Segment underwriting income (loss)	$	(40,139	)	$	25,976		$	(334	)		(14,497	)	$	40,166		$	12,189		$	(550	)		51,805

Net investment income											30,430												40,871
Net realized gains on investments											8,494												24,713
Net impairment losses on investments											(11,050	)											(5,864	)
Other expense											(165	)											(1,138	)
Net changes in fair value of derivatives											(3,089	)											(2,913	)
Corporate expenses not allocated to segments											(6,279	)											(7,828	)
Net foreign currency exchange (losses) gains											(2,446	)											242
Interest expense											(4,764	)											(4,759	)
Income (loss) before income taxes										$	(3,366	)										$	95,129

GAAP underwriting ratios:
Net loss and loss adjustment expense		120.8	%		44.2	%		43.4	%		82.3	%		47.8	%		52.8	%		(26.3	%)		48.3	%
Net acquisition expense		13.7	%		20.6	%		57.8	%		17.7	%		14.4	%		25.6	%		130.3	%		21.1	%
Other underwriting expense		9.1	%		6.4	%		11.6	%		7.8	%		7.8	%		8.0	%		8.3	%		7.9	%
Combined		143.6	%		71.2	%		112.8	%		107.8	%		70.0	%		86.4	%		112.3	%		77.3	%

Statutory underwriting ratios:
Net loss and loss adjustment expense		120.8	%		44.2	%		43.4	%		82.3	%		47.8	%		52.8	%		(26.3	%)		48.3	%
Net acquisition expense		14.6	%		20.3	%		60.2	%		18.2	%		15.0	%		24.2	%		145.8	%		21.3	%
Other underwriting expense		10.9	%		7.0	%		12.3	%		8.9	%		9.1	%		8.6	%		9.5	%		8.9	%
Combined		146.3	%		71.5	%		115.9	%		109.4	%		71.9	%		85.6	%		129.0	%		78.5	%

See Definitions and Presentation 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.

Segment Reporting - Twelve Month Summary

($ in thousands)

	Twelve Months Ended December 31, 2010												Twelve Months Ended December 31, 2009
	Property and Marine			Casualty			Finite Risk			Total			Property and Marine			Casualty			Finite Risk			Total

Net premiums written	$	412,675		$	329,397		$	18,517		$	760,589		$	517,011		$	356,488		$	24,335		$	897,834

Net premiums earned		418,763			343,812			17,419			779,994			528,488			388,901			19,947			937,336

Net losses and loss adjustment expenses		343,509			119,679			4,232			467,420			250,646			226,511			1,185			478,342
Net acquisition expenses		60,224			71,474			14,978			146,676			66,992			88,841			20,586			176,419
Other underwriting expenses		32,678			23,091			1,260			57,029			37,331			25,644			1,412			64,387
Total underwriting expenses		436,411			214,244			20,470			671,125			354,969			340,996			23,183			719,148
Segment underwriting income (loss)	$	(17,648	)	$	129,568		$	(3,051	)		108,869		$	173,519		$	47,905		$	(3,236	)		218,188

Net investment income											134,385												163,941
Net realized gains on investments											107,791												78,630
Net impairment losses on investments											(36,610	)											(17,603	)
Other income (expense)											(207	)											3,084
Net changes in fair value of derivatives											(9,588	)											(9,741	)
Corporate expenses not allocated to segments											(25,607	)											(30,295	)
Net foreign currency exchange (losses) gains											(1,385	)											399
Interest expense											(18,996	)											(19,027	)
Income before income taxes										$	258,652											$	387,576

GAAP underwriting ratios:
Net loss and loss adjustment expense		82.0	%		34.8	%		24.3	%		59.9	%		47.4	%		58.2	%		5.9	%		51.0	%
Net acquisition expense		14.4	%		20.8	%		86.0	%		18.8	%		12.7	%		22.8	%		103.2	%		18.8	%
Other underwriting expense		7.8	%		6.7	%		7.2	%		7.3	%		7.1	%		6.6	%		7.1	%		6.9	%
Combined		104.2	%		62.3	%		117.5	%		86.0	%		67.2	%		87.6	%		116.2	%		76.7	%

Statutory underwriting ratios:
Net loss and loss adjustment expense		82.0	%		34.8	%		24.3	%		59.9	%		47.4	%		58.2	%		5.9	%		51.0	%
Net acquisition expense		14.4	%		20.7	%		82.0	%		18.8	%		12.6	%		22.3	%		88.0	%		18.5	%
Other underwriting expense		7.9	%		7.0	%		6.8	%		7.5	%		7.2	%		7.2	%		5.8	%		7.2	%
Combined		104.3	%		62.5	%		113.1	%		86.2	%		67.2	%		87.7	%		99.7	%		76.7	%

See Definitions and Presentation 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.

Property and Marine Segment - by Quarter

($ in thousands)

	Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2010			2010			2010			2010			2009

Net premiums written	$	76,900		$	114,885		$	74,105		$	146,785		$	114,423

Net premiums earned		92,065			98,342			100,550			127,806			133,934

Net losses and loss adjustment expenses		111,215			70,657			35,010			126,627			64,081
Net acquisition expenses		12,635			14,140			17,218			16,231			19,281
Other underwriting expenses		8,354			7,905			7,720			8,699			10,406
Total underwriting expenses		132,204			92,702			59,948			151,557			93,768
Segment underwriting income (loss)	$	(40,139	)	$	5,640		$	40,602		$	(23,751	)	$	40,166


GAAP underwriting ratios:
Net loss and loss adjustment expense		120.8	%		71.8	%		34.8	%		99.1	%		47.8	%
Net acquisition expense		13.7	%		14.4	%		17.1	%		12.7	%		14.4	%
Other underwriting expense		9.1	%		8.0	%		7.7	%		6.8	%		7.8	%
Combined		143.6	%		94.2	%		59.6	%		118.6	%		70.0	%

Statutory underwriting ratios:
Net loss and loss adjustment expense		120.8	%		71.8	%		34.8	%		99.1	%		47.8	%
Net acquisition expense		14.6	%		13.1	%		20.3	%		12.5	%		15.0	%
Other underwriting expense		10.9	%		6.9	%		10.4	%		5.9	%		9.1	%
Combined		146.3	%		91.8	%		65.5	%		117.5	%		71.9	%

See Definitions and Presentation 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.

- 16 -

Platinum Underwriters Holdings, Ltd.

Casualty Segment - by Quarter

($ in thousands)

	Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2010			2010			2010			2010			2009

Net premiums written	$	82,656		$	80,362		$	72,628		$	93,751		$	82,548

Net premiums earned		90,307			80,437			85,166			87,902			89,189

Net losses and loss adjustment expenses		39,935			8,156			40,058			31,530			47,085
Net acquisition expenses		18,600			16,395			18,752			17,727			22,821
Other underwriting expenses		5,796			5,171			5,654			6,470			7,094
Total underwriting expenses		64,331			29,722			64,464			55,727			77,000
Segment underwriting income	$	25,976		$	50,715		$	20,702		$	32,175		$	12,189


GAAP underwriting ratios:
Net loss and loss adjustment expense		44.2	%		10.1	%		47.0	%		35.9	%		52.8	%
Net acquisition expense		20.6	%		20.4	%		22.0	%		20.2	%		25.6	%
Other underwriting expense		6.4	%		6.4	%		6.6	%		7.4	%		8.0	%
Combined		71.2	%		36.9	%		75.6	%		63.5	%		86.4	%

Statutory underwriting ratios:
Net loss and loss adjustment expense		44.2	%		10.1	%		47.0	%		35.9	%		52.8	%
Net acquisition expense		20.3	%		20.2	%		23.3	%		19.3	%		24.2	%
Other underwriting expense		7.0	%		6.4	%		7.8	%		6.9	%		8.6	%
Combined		71.5	%		36.7	%		78.1	%		62.1	%		85.6	%

See Definitions and Presentation 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.

- 17 -

Platinum Underwriters Holdings, Ltd.

Finite Risk Segment - by Quarter

($ in thousands)

	Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2010			2010			2010			2010			2009

Net premiums written	$	2,461		$	4,180		$	4,985		$	6,891		$	3,884

Net premiums earned		2,608			4,625			5,716			4,470			4,461

Net losses and loss adjustment expenses		1,133			281			(3,593	)		6,411			(1,173	)
Net acquisition expenses		1,507			1,982			8,118			3,371			5,814
Other underwriting expenses		302			307			313			338			370
Total underwriting expenses		2,942			2,570			4,838			10,120			5,011
Segment underwriting income (loss)	$	(334	)	$	2,055		$	878		$	(5,650	)	$	(550	)


GAAP underwriting ratios:
Net loss and loss adjustment expense		43.4	%		6.1	%		(62.9	%)		143.4	%		(26.3	%)
Net acquisition expense		57.8	%		42.9	%		142.0	%		75.4	%		130.3	%
Other underwriting expense		11.6	%		6.6	%		5.5	%		7.6	%		8.3	%
Combined		112.8	%		55.6	%		84.6	%		226.4	%		112.3	%

Statutory underwriting ratios:
Net loss and loss adjustment expense		43.4	%		6.1	%		(62.9	%)		143.4	%		(26.3	%)
Net acquisition expense		60.2	%		44.7	%		159.0	%		56.6	%		145.8	%
Other underwriting expense		12.3	%		7.3	%		6.3	%		4.9	%		9.5	%
Combined		115.9	%		58.1	%		102.4	%		204.9	%		129.0	%

See Definitions and Presentation 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.

- 18 -

Platinum Underwriters Holdings, Ltd.

Net Premiums Written - Supplemental Information

($ in thousands)

	Three Months Ended				Twelve Months Ended
	December 31,		December 31,		December 31,		December 31,
	2010		2009		2010		2009

Property and Marine
Excess-of-loss	$	61,174	$	74,941	$	337,464	$	348,363
Proportional		15,726		39,482		75,211		168,648
Subtotal Property and Marine		76,900		114,423		412,675		517,011
Casualty
Excess-of-loss		73,073		65,505		292,968		308,054
Proportional		9,583		17,043		36,429		48,434
Subtotal Casualty		82,656		82,548		329,397		356,488
Finite Risk
Excess-of-loss		-		150		-		-
Proportional		2,461		3,734		18,517		24,335
Subtotal Finite Risk		2,461		3,884		18,517		24,335
Combined Segments
Excess-of-loss		134,247		140,596		630,432		656,417
Proportional		27,770		60,259		130,157		241,417
Total	$	162,017	$	200,855	$	760,589	$	897,834

	Three Months Ended				Twelve Months Ended
	December 31,		December 31,		December 31,		December 31,
		2010		2009		2010		2009
Property and Marine
United States	$	46,960	$	84,320	$	230,914	$	350,726
International		29,940		30,103		181,761		166,285
Subtotal Property and Marine		76,900		114,423		412,675		517,011
Casualty
United States		69,211		72,787		277,666		315,422
International		13,445		9,761		51,731		41,066
Subtotal Casualty		82,656		82,548		329,397		356,488
Finite Risk
United States		2,461		3,884		18,517		24,335
International		-		-		-		-
Subtotal Finite Risk		2,461		3,884		18,517		24,335
Combined Segments
United States		118,632		160,991		527,097		690,483
International		43,385		39,864		233,492		207,351
Total	$	162,017	$	200,855	$	760,589	$	897,834

- 19 -

Platinum Underwriters Holdings, Ltd.

Premiums by Line of Business - Three Month Summary

($ in thousands)

	Three Months Ended December 31, 2010						Three Months Ended December 31, 2009
	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	$	1,785	$	1,785	$	1,843	$	2,049	$	2,049	$	1,827
North American Property Catastrophe		24,649		24,655		26,813		26,719		26,719		32,845
North American Property Risk		11,195		11,299		12,037		21,617		19,463		21,280
Other Property		9,923		9,923		10,114		37,089		36,584		37,131
Marine / Aviation Proportional		1,810		1,810		1,703		2,115		2,115		1,849
Marine / Aviation Excess		2,458		2,455		2,930		4,961		4,961		5,387
International Property Proportional		4,686		4,686		3,976		1,566		1,566		1,471
International Property Catastrophe		21,337		17,913		29,924		20,432		18,330		28,848
International Property Risk		2,374		2,374		2,725		2,636		2,636		3,296
Subtotal		80,217		76,900		92,065		119,184		114,423		133,934

Casualty
Clash		3,696		3,696		3,717		3,348		3,348		3,427
1st Dollar GL		1,555		1,555		2,147		4,066		4,066		4,208
1st Dollar Other		1,558		1,558		1,478		1,649		1,649		1,644
Casualty Excess		53,238		53,238		55,654		52,755		52,755		58,645
Accident & Health		6,956		6,956		9,932		2,856		2,856		7,316
International Casualty		6,911		6,911		7,827		5,003		5,003		6,583
International Motor		725		725		843		520		520		652
Financial Lines		8,017		8,017		8,709		12,351		12,351		6,714
Subtotal		82,656		82,656		90,307		82,548		82,548		89,189

Finite Risk
Finite Property		-		-		-		8		8		8
Finite Casualty		2,461		2,461		2,608		3,876		3,876		4,453
Subtotal		2,461		2,461		2,608		3,884		3,884		4,461

Total	$	165,334	$	162,017	$	184,980	$	205,616	$	200,855	$	227,584

- 20 -

Platinum Underwriters Holdings, Ltd.

Premiums by Line of Business - Twelve Month Summary

($ in thousands)

	Twelve Months Ended December 31, 2010						Twelve Months Ended December 31, 2009
	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	$	7,861	$	7,861	$	6,875	$	7,350	$	7,350	$	10,792
North American Property Catastrophe		129,065		118,844		122,941		123,373		122,120		120,892
North American Property Risk		52,165		50,435		55,724		93,451		77,088		78,413
Other Property		56,852		56,852		57,101		148,513		148,008		147,925
Marine / Aviation Proportional		6,014		6,014		6,725		8,687		8,687		9,302
Marine / Aviation Excess		13,150		13,158		13,759		17,474		17,494		21,734
International Property Proportional		16,426		16,426		15,784		16,657		16,657		15,540
International Property Catastrophe		138,640		131,646		128,395		115,705		106,966		111,356
International Property Risk		11,439		11,439		11,459		12,641		12,641		12,534
Subtotal		431,612		412,675		418,763		543,851		517,011		528,488

Casualty
Clash		14,556		14,556		14,425		15,571		15,571		15,577
1st Dollar GL		9,738		9,738		10,076		15,298		15,298		18,026
1st Dollar Other		5,840		5,840		4,904		5,913		5,913		6,106
Casualty Excess		206,705		206,705		218,076		229,484		229,484		261,113
Accident & Health		37,574		37,574		36,938		35,235		35,235		31,377
International Casualty		28,405		28,405		29,648		28,702		28,702		32,873
International Motor		3,663		3,663		3,658		3,049		3,049		3,059
Financial Lines		22,916		22,916		26,087		23,236		23,236		20,770
Subtotal		329,397		329,397		343,812		356,488		356,488		388,901

Finite Risk
Finite Property		-		-		-		-		-		-
Finite Casualty		18,517		18,517		17,419		24,335		24,335		19,947
Subtotal		18,517		18,517		17,419		24,335		24,335		19,947

Total	$	779,526	$	760,589	$	779,994	$	924,674	$	897,834	$	937,336

- 21 -

Platinum Underwriters Holdings, Ltd.

Investment Portfolio

($ in thousands)

		December 31, 2010				December 31, 2009
			Weighted Average	Weighted Average			Weighted Average	Weighted Average
		Fair Value	Book Yield	Market Yield		Fair Value	Book Yield	Market Yield

Available-for-sale securities
U.S. Government	$	391,303	1.9%	2.4%	$	608,697	2.9%	3.0%
U.S. Government agencies		100,547	0.7%	0.3%		101,082	0.6%	0.2%
Corporate bonds		366,900	4.9%	3.2%		476,986	5.1%	3.6%
Commercial mortgage-backed securities		203,313	5.4%	4.5%		215,020	5.5%	7.4%
Residential mortgage-backed securities		166,458	4.9%	6.0%		714,703	4.6%	5.4%
Asset-backed securities		23,568	3.6%	7.6%		59,699	2.6%	4.2%
Municipal bonds		1,537,432	4.7%	4.4%		759,501	4.2%	3.3%
Non-U.S. governments		76,306	2.9%	1.9%		578,364	3.1%	2.5%
Total Fixed Maturities		2,865,827	4.2%	3.9%		3,514,052	4.0%	3.8%
Preferred Stocks		-	-	-		3,897	29.8%	13.2%
Total	$	2,865,827	4.2%	3.9%	$	3,517,949	4.0%	3.8%

Trading securities
Non-U.S. dollar denominated securities:
Non-U.S. governments	$	140,089	3.6%	2.2%	$	100,384	4.6%	3.1%
U.S. Government agencies		15,903	1.9%	1.1%		16,423	1.9%	1.8%
Corporate bonds		68	4.5%	2.3%		77	4.5%	2.1%
Insurance-linked securities		26,086	10.7%	6.5%		25,682	10.7%	8.5%
Total	$	182,146	4.5%	2.7%	$	142,566	5.4%	3.9%


		December 31, 2010				December 31, 2009
		Amount	% of Total			Amount	% of Total
Credit quality of investment portfolio*
Aaa	$	1,219,482	40.0%		$	2,341,963	64.0%
Aa		1,033,067	33.9%			517,404	14.1%
A		470,525	15.4%			404,711	11.1%
Baa		225,928	7.4%			315,275	8.6%
Below investment grade		98,971	3.3%			81,162	2.2%
Total	$	3,047,973	100.0%		$	3,660,515	100.0%


Credit quality
Weighted average credit quality		Aa2				Aa2

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

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Platinum Underwriters Holdings, Ltd.

Available-for-Sale Security Detail

($ in thousands)

	December 31, 2010
			Unrealized			Credit			Weighted
	Fair Value		Gain (Loss)			Quality	Duration		Average Life

Available-for-sale securities
U.S. Government	$	391,303	$	(17,540	)	Aaa		6.8

U.S. Government agencies		100,547		547		Aaa		0.4

Corporate bonds:
Industrial		240,273		12,244		A3		4.0
Insurance		60,234		2,796		A3		4.0
Utilities		58,797		2,406		A3		5.0
Finance		7,596		84		Baa1		6.5
Subtotal		366,900		17,530		A3		4.2

Commercial mortgage-backed securities		203,313		8,263		Aa2		3.3		4.7

Residential mortgage-backed securities:
U.S. Government agency residential mortgage-backed securities		81,669		3,262		Aaa		1.8		3.4
Non-agency residential mortgage-backed securities		77,887		(25,563	)	Ba3		0.2		4.0
Alt-A residential mortgage-backed securities		6,902		(3,586	)	Caa2		-		4.7
Subtotal		166,458		(25,887	)	A3		1.0		3.7

Asset-backed securities:
Asset-backed securities		13,320		(280	)	Aaa		-		8.4
Sub-prime asset-backed securities		10,248		(4,355	)	Caa3		0.5		10.4
Subtotal		23,568		(4,635	)	Ba2		0.2		9.3

Municipal bonds:
State general obligation bonds		805,645		(7,336	)	Aa2		7.4
Essential service revenue bonds*		369,664		864		Aa3		8.0
State income tax and sales tax bonds		160,981		300		Aa1		7.9
Other municipal bonds		137,868		600		Aa2		6.6
Pre-refunded bonds		63,274		2,303		Aa2		2.3
Subtotal		1,537,432		(3,269	)	Aa2		7.3

Non-U.S. governments		76,306		1,316		Aa1		1.9

Total	$	2,865,827	$	(23,675	)	Aa2		5.7

* Essential service revenue bonds include bonds backed by revenue from education, transportation and utilities.

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Platinum Underwriters Holdings, Ltd.

Corporate Bonds Detail

($ in thousands)

	December 31, 2010
					Unrealized			Credit
	Par Value		Fair Value		Gain (Loss)			Quality

Top 20 Holdings by Issuer
MetLife, Inc.	$	17,897	$	18,525	$	552			A3
Philip Morris International Inc.		14,000		15,806		1,252			A2
BHP Billiton Limited		13,000		14,130		986			A1
Marathon Oil Corporation		10,000		11,749		883		Baa1
Hewlett-Packard Company		10,000		11,137		695			A2
HCC Insurance Holdings, Inc.		10,000		10,481		406		Baa1
Anglo American plc		8,000		10,347		455		Baa1
AT&T Inc.		9,250		10,065		742			A2
Consolidated Edison, Inc.		9,400		9,812		397			A3
Mattel, Inc.		10,000		9,612		(532	)	Baa2
Diageo plc		7,750		8,428		591			A3
Wal-Mart Stores, Inc.		6,541		8,000		(128	)	Aa2
Snap-On Incorporated		7,000		7,687		648		Baa1
EOG Resources, Inc.		6,660		7,100		288			A3
Rio Tinto plc		5,000		6,713		439			A3
Pfizer Inc.		6,000		6,578		542			A1
American Electric Power Company, Inc.		6,000		6,561		490		Baa2
Northeast Utilities		6,000		6,445		445			A2
ArcelorMittal		5,000		6,320		(101	)	Baa3
Hess Corporation	$	5,000	$	6,298	$	201		Baa2

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Platinum Underwriters Holdings, Ltd.

Municipal Bonds Detail

($ in thousands)

	December 31, 2010
						Unrealized			Credit
	Par Value		Fair Value			Gain (Loss)			Quality*

Top 10 Exposures by Jurisdiction
Illinois	$	164,680	$	159,844		$	(6,067	)		A1
Pennsylvania		115,700		116,816			(39	)	Aa1
New York		110,070		110,220			(258	)	Aa2
Connecticut		106,000		105,371			(2,758	)	Aa2
California		97,655		103,210			2,732			A1
Massachusetts		90,655		92,931			201		Aa1
District of Columbia		78,695		79,463			681		Aa2
Texas		72,315		70,806			(1,968	)	Aaa
New Jersey		59,500		59,317			(640	)	Aa3
Ohio	$	53,795	$	52,422		$	(1,567	)	Aa1


Top 10 Holdings by Issuer
State of Illinois	$	120,000	$	115,418		$	(5,500	)		A1
State of California		92,665		98,071			2,741			A1
State of Connecticut		89,000		89,071			(2,057	)	Aa2
State of Pennsylvania		76,700		78,196			728		Aa1
New York State Urban Development Corporation		47,000		46,224			(776	)	Aaa
State of Mississippi		46,060		45,520			(1,700	)	Aa2
State of Massachusetts		39,635		41,012			(698	)	Aa1
State of Texas		39,900		36,787			(3,285	)	Aaa
State of Ohio		37,550		36,380			(1,170	)	Aa1
State of Michigan	$	36,500	$	35,711		$	(1,072	)	Aa2



	December 31, 2010
	Amount		% of Total

Credit quality of municipal bond portfolio*
Aaa	$	279,571		18.2	%
Aa		940,214		61.1	%
A		311,705		20.3	%
Baa		5,942		0.4	%
Total	$	1,537,432		100.0	%


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

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Platinum Underwriters Holdings, Ltd.

Net Realized Gains on Investments and Net Impairment Losses on Investments

($ in thousands)

	Three Months Ended						Twelve Months Ended
	December 31,			December 31,			December 31,		December 31,
	2010			2009			2010		2009

Net realized gains (losses) on investments by entity:
Subsidiary domiciled in Bermuda	$	(2,274	)	$	17,500		$	56,813	$	60,078
Subsidiaries domiciled in the United States		10,768			7,213			50,978		18,548
Subsidiary domiciled in the United Kingdom		-			-			-		4
Total	$	8,494		$	24,713		$	107,791	$	78,630


Net realized gains (losses) on investments by type:
Sale of securities	$	11,351		$	33,078		$	106,394	$	80,924
Mark-to-market on trading securities		(2,857	)		(8,365	)		1,397		(2,294	)
Total	$	8,494		$	24,713		$	107,791	$	78,630


Net impairment losses on investments by entity:
Subsidiary domiciled in Bermuda	$	10,696		$	2,886		$	23,835	$	11,365
Subsidiaries domiciled in the United States		354			2,978			12,775		6,238
Total	$	11,050		$	5,864		$	36,610	$	17,603


Net impairment losses on investments by type of security:
Commercial mortgage-backed securities	$	-		$	140		$	7,743	$	2,757
Residential mortgage-backed securities		5,553			2,583			11,178		8,358
Asset-backed securities		5,497			3,141			17,689		5,280
Preferred stocks		-			-			-		1,208
Total	$	11,050		$	5,864		$	36,610	$	17,603

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Platinum Underwriters Holdings, Ltd.

Analysis of Losses and Loss Adjustment Expenses

($ in thousands)

	Analysis of Losses and Loss Adjustment Expenses
	Twelve Months Ended December 31, 2010 (a)												Twelve Months Ended December 31, 2009 (b)
	Gross			Ceded			Net			Paid to Incurred %			Gross			Ceded		Net			Paid to Incurred %

Paid losses and loss adjustment expenses	$	604,260		$	10,047		$	594,213			127.1	%	$	620,332		$	13,122	$	607,210			126.9	%
Change in unpaid losses and loss adjustment expenses		(132,171	)		(5,378	)		(126,793	)					(126,020	)		2,848		(128,868	)
Losses and loss adjustment expenses incurred	$	472,089		$	4,669		$	467,420					$	494,312		$	15,970	$	478,342




	Analysis of Unpaid Losses and Loss Adjustment Expenses

	As of December 31, 2010												As of December 31, 2009
	Gross			Ceded			Net			%			Gross			Ceded		Net			%

Outstanding losses and loss adjustment expenses	$	671,846		$	8,149		$	663,697			30.1	%	$	680,487		$	9,169	$	671,318			28.8	%
Incurred but not reported		1,545,532			763			1,544,769			69.9	%		1,668,849			5,159		1,663,690			71.2	%
Unpaid losses and loss adjustment expenses	$	2,217,378		$	8,912		$	2,208,466			100.0	%	$	2,349,336		$	14,328	$	2,335,008			100.0	%


(a) Gross and ceded losses and loss adjustment expenses incurred includes effects of foreign currency exchange rate losses of $213 and $38, respectively.

(b) Gross and ceded losses and loss adjustment expenses incurred includes effects of foreign currency exchange rate gains and losses of $11,850 and $19, 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, 2010												Three Months Ended December 31, 2009
	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	$	10,619		$	24,096		$	884		$	35,599		$	5,278		$	29,881		$	4,415		$	39,574
Net premium adjustments related to prior years' losses		(170	)		607			-			437			2,620			107			-			2,727
Net commission adjustments related to prior years' losses		(144	)		(293	)		(985	)		(1,422	)		63			(1,325	)		(4,804	)		(6,066	)
Net favorable (unfavorable) development		10,305			24,410			(101	)		34,614			7,961			28,663			(389	)		36,235

Catastrophe Favorable (Unfavorable) Development
Net loss development related to prior years		(7,666	)		90			-			(7,576	)		(925	)		(8	)		-			(933	)
Net premium adjustments related to prior years' losses		661			-			-			661			(281	)		-			-			(281	)
Net commission adjustments related to prior years' losses		-			-			-			-			-			-			-			-
Net favorable (unfavorable) development		(7,005	)		90			-			(6,915	)		(1,206	)		(8	)		-			(1,214	)

Total net favorable (unfavorable) development	$	3,300		$	24,500		$	(101	)	$	27,699		$	6,755		$	28,655		$	(389	)	$	35,021


	Twelve Months Ended December 31, 2010												Twelve Months Ended December 31, 2009
	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	$	53,013		$	113,142		$	8,806		$	174,961		$	17,732		$	73,655		$	12,885		$	104,272
Net premium adjustments related to prior years' losses		2,538			3,030			-			5,568			4,369			67			-			4,436
Net commission adjustments related to prior years' losses		(5,434	)		4,764			(11,295	)		(11,965	)		6,144			4,441			(15,207	)		(4,622	)
Net favorable (unfavorable) development		50,117			120,936			(2,489	)		168,564			28,245			78,163			(2,322	)		104,086

Catastrophe Favorable (Unfavorable) Development
Net loss development related to prior years		(16,160	)		139			-			(16,021	)		(3,473	)		(66	)		59			(3,480	)
Net premium adjustments related to prior years' losses		(692	)		-			-			(692	)		349			-			-			349
Net commission adjustments related to prior years' losses		-			-			-			-			-			-			-			-
Net favorable (unfavorable) development		(16,852	)		139			-			(16,713	)		(3,124	)		(66	)		59			(3,131	)

Total net favorable (unfavorable) development	$	33,265		$	121,075		$	(2,489	)	$	151,851		$	25,121		$	78,097		$	(2,263	)	$	100,955

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Platinum Underwriters Holdings, Ltd.

Estimated Exposures to Peak Zone Property Catastrophe Losses

As of January 1, 2011

($ 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	$	172	$	155	$	352	$	322	$	426	$	396
United States	Earthquake		15		15		204		204		269		269
Pan-European	Windstorm		148		127		289		235		347		292
Japan	Earthquake		11		11		140		140		305		305
Japan	Typhoon	$	6	$	6	$	78	$	78	$	93	$	93


Indicative Catastrophe Scenarios

Catastrophe Scenarios			Estimated Company Net Loss Interquartile Range

Category 3 U.S. / Caribbean Hurricane		$	11	-	35
Category 4 U.S. / Caribbean Hurricane			16	-	69
Magnitude 6.9 California Earthquake			0	-	3
Magnitude 7.5 California Earthquake		$	0	-	5

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.

- 29 -

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