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

Attached files

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8-K - PLATINUM UNDERWRITERS HOLDINGS LTD	fourthquarter2012_8k.htm
EX-99.1 - PLATINUM UNDERWRITERS HOLDINGS LTD	earningsreleaseq4_2012.htm

Exhibit 99.2

Financial Supplement

Financial Information

as of December 31, 2012

(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.

Our Investor Relations Department can be reached at (203) 252-5833.

Platinum Underwriters Holdings, Ltd.

Overview

December 31, 2012

Address:

Investor Information:

Platinum Underwriters Holdings, Ltd.

Kenneth A. Kurtzman

The Belvedere Building

Tel: (203) 252-5833

69 Pitts Bay Road

Email: kkurtzman@platinumre.com

Pembroke, HM 08 Bermuda

Website: www.platinumre.com

Definitions and presentation:

All financial information contained herein is unaudited except for the information for the fiscal year ended December 31, 2011. 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 (pages 14-18), operating income or loss (page 7), related underwriting ratios (pages 14-18), book value per common share and fully converted book value per common share (page 11), are referred to as non-GAAP measures. 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, the occurrence of severe natural or man-made catastrophic events; the effectiveness of our loss limitation methods and pricing models; the adequacy of our ceding companies’ ability to assess the risks they underwrite; the adequacy of our liability for unpaid losses and loss adjustment expenses; the effects of emerging claim and coverage issues on our business; our ability to maintain our A.M. Best and S&P ratings; our ability to raise capital on acceptable terms if necessary; our exposure to credit loss from counterparties in the normal course of business; our ability to provide reinsurance from Bermuda to insurers domiciled in the United States; the effect on our business of the cyclicality of the property and casualty reinsurance business; the effect on our business of the highly competitive nature of the property and casualty reinsurance industry; losses that we could face from terrorism, political unrest and war; our dependence on the business provided to us by reinsurance brokers and our exposure to credit risk associated with our brokers during the premium and loss settlement process; the availability of retrocessional reinsurance on acceptable terms; foreign currency exchange rate fluctuation; our ability to maintain and enhance effective operating procedures and internal controls over financial reporting; our need to make many estimates and judgments in the preparation of our financial statements; the limitations placed on our financial and operational flexibility by the representations, warranties and covenants in our debt and credit facilities; our ability to retain key executives and attract and retain additional qualified personnel in the future; the performance of our investment portfolio; the effects of changes in market interest rates on our investment portfolio; the concentration of our investment portfolio in any particular industry, asset class or geographic region; the effects that the imposition of U.S. corporate income tax would have on Platinum Underwriters Holdings, Ltd. and its non-U.S. subsidiaries; the risk that U.S. persons who hold our shares will be subject to adverse U.S. federal income tax consequences under certain circumstances; the risk that U.S. persons who dispose of our shares may be subject to U.S. federal income taxation at the rates applicable to dividends on all or a portion of their gains, if any; the risk that holders of 10% or more of our shares may be subject to U.S. income taxation under the “controlled foreign corporation” rules; the effect of changes in U.S. federal income tax law on an investment in our shares; the possibility that we may become subject to taxes in Bermuda; the effect on our business of potential changes in the regulatory system under which we operate; the impact of regulatory regimes and changes to accounting rules on our financial results, irrespective of business operations; the uncertain impact on our business of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010; the dependence of the cash flows of Platinum Underwriters Holdings, Ltd., a holding company, on dividends, interest and other permissible payments from its subsidiaries to meet its obligations; the risk that our shareholders may have greater difficulty in protecting their interests than would shareholders of a U.S. corporation; and limitations on the ownership, transfer and voting rights of our common shares. 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)	5
		b. Condensed Consolidated Statements of Operations and Comprehensive Income - 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 (Loss) and Book Value Per Common Share Analysis:
		a. Computation of Basic and Diluted Earnings (Loss) Per Common Share	9
		b. Computation of Basic and Diluted Earnings Per Common Share - by Quarter	10
		c. Book Value Per Common Share – by Quarter	11

		Statements of Cash Flow:
		a. Condensed Consolidated Statements of Cash Flows	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 Summary	21

		Investments:
		a. Investments	22
		b. Fixed Maturity Available-for-Sale Securities Detail	23
		c. Corporate Bonds Detail	24
		d. Municipal Bonds Detail	25
		e. Net Realized Gains (Losses) 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 and Commissions	28

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

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Platinum Underwriters Holdings, Ltd.

Financial Highlights

December 31, 2012 and 2011

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

	Three Months Ended						Twelve Months Ended
	December 31,			December 31,			December 31,			December 31,
	2012			2011			2012			2011
Highlights
Net premiums written	$	133,901		$	153,718		$	565,000		$	651,514
Net premiums earned		144,621			167,322			566,496			689,452
Underwriting income (loss)		107,817			(3,719	)		212,217			(296,726	)
Net investment income		22,031			29,758			99,947			125,863
Net operating income (loss) (1)		104,633			19,237			246,851			(207,643	)
Net realized gains on investments		18,455			718			88,754			3,934
Net impairment losses on investments		(149	)		(14,746	)		(3,031	)		(22,370	)
Net income (loss)	$	121,545		$	7,064		$	327,228		$	(224,064	)

Total assets	$	4,333,303		$	4,551,611		$	4,333,303		$	4,551,611
Investments and cash		3,947,694			4,170,044			3,947,694			4,170,044
Total shareholders' equity		1,894,534			1,690,859			1,894,534			1,690,859
Unpaid losses and loss adjustment expenses	$	1,961,282		$	2,389,614		$	1,961,282		$	2,389,614

Per share data
Common shares outstanding - end of period		32,722			35,526			32,722			35,526
Weighted average common shares outstanding - basic		32,674			36,117			33,714			36,901
Adjusted weighted average common shares outstanding - diluted		33,048			36,302			33,981			37,260
Basic earnings (loss) per common share	$	3.71		$	0.20		$	9.67		$	(6.04	)
Diluted earnings (loss) per common share (2)		3.67			0.19			9.60			(6.04	)
Operating income (loss) per common share - diluted (1)		3.16			0.53			7.26			(5.63	)
Dividends per common share		0.08			0.08			0.32			0.32
Book value per common share (3)	$	57.90		$	47.59		$	57.90		$	47.59

(1)	See computation of net operating income (loss) and net operating income (loss) per diluted common share on page 7.

(2)	During a period of loss, the basic weighted average common shares outstanding is used in the denominator of the diluted loss per common share computation as the effect of including potential dilutive shares would be anti-dilutive.

(3)	See computation of basic book value per common share on page 11.

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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,
	2012		2012		2012		2012		2011
Assets
Investments:
Fixed maturity securities	$	2,054,498	$	2,293,094	$	2,423,834	$	2,743,760	$	2,788,700
Short-term investments		172,801		165,741		167,778		216,047		588,834
Cash and cash equivalents		1,720,395		1,662,679		1,465,983		1,167,848		792,510
Accrued investment income		21,299		23,856		24,541		29,337		29,440
Reinsurance premiums receivable		128,517		150,775		145,132		148,126		159,387
Reinsurance balances (prepaid and recoverable)		6,560		4,335		4,538		7,393		14,662
Funds held by ceding companies		114,090		113,310		111,408		95,357		94,546
Deferred acquisition costs		28,112		29,189		27,620		28,203		28,779
Reinsurance deposit asset		50,693		-		-		-		-
Other assets		36,338		49,943		54,103		52,349		54,753
Total assets	$	4,333,303	$	4,492,922	$	4,424,937	$	4,488,420	$	4,551,611

Liabilities
Unpaid losses and loss adjustment expenses	$	1,961,282	$	2,160,154	$	2,229,603	$	2,315,527	$	2,389,614
Unearned premiums		113,960		122,150		114,759		121,553		121,164
Debt obligations		250,000		250,000		250,000		250,000		250,000
Commissions payable		64,849		67,489		64,304		62,083		62,773
Other liabilities		48,678		103,183		44,444		32,362		37,201
Total liabilities	$	2,438,769	$	2,702,976	$	2,703,110	$	2,781,525	$	2,860,752

Shareholders' Equity
Common shares	$	327	$	328	$	332	$	348	$	355
Additional paid-in capital		209,897		211,546		227,482		285,503		313,730
Accumulated other comprehensive income		137,690		150,387		148,562		140,458		146,635
Retained earnings		1,546,620		1,427,685		1,345,451		1,280,586		1,230,139
Total shareholders' equity	$	1,894,534	$	1,789,946	$	1,721,827	$	1,706,895	$	1,690,859

Total liabilities and shareholders' equity	$	4,333,303	$	4,492,922	$	4,424,937	$	4,488,420	$	4,551,611

Book value per common share (1)	$	57.90	$	54.60	$	51.84	$	49.00	$	47.59

(1)	Book value per common share is a non-GAAP financial measure as defined by Regulation G. See computation of book value per common share on page 11.

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Platinum Underwriters Holdings, Ltd.

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)

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

	Three Months Ended						Twelve Months Ended
	December 31,			December 31,			December 31,			December 31,
	2012			2011			2012			2011
Revenue
Net premiums earned	$	144,621		$	167,322		$	566,496		$	689,452
Net investment income		22,031			29,758			99,947			125,863
Net realized gains on investments		18,455			718			88,754			3,934
Net impairment losses on investments		(149	)		(14,746	)		(3,031	)		(22,370	)
Other income (expense)		527			(193	)		(239	)		645
Total revenue		185,485			182,859			751,927			797,524

Expenses
Net losses and loss adjustment expenses		(7,770	)		125,032			183,660			805,437
Net acquisition expenses		28,412			34,904			115,437			133,177
Operating expenses		23,808			14,168			80,453			63,179
Net foreign currency exchange losses (gains)		292			(294	)		1,055			(473	)
Net changes in fair value of derivatives		-			(965	)		-			4,329
Interest expense		4,777			4,770			19,098			19,072
Total expenses		49,519			177,615			399,703			1,024,721
Income (loss) before income taxes		135,966			5,244			352,224			(227,197	)
Income tax expense (benefit)		14,421			(1,820	)		24,996			(3,133	)
Net income (loss)	$	121,545		$	7,064		$	327,228		$	(224,064	)

Basic
Weighted average common shares outstanding		32,674			36,117			33,714			36,901
Basic earnings (loss) per common share	$	3.71		$	0.20		$	9.67		$	(6.04	)

Diluted
Adjusted weighted average common shares outstanding		33,048			36,302			33,981			37,260
Diluted earnings (loss) per common share (1)	$	3.67		$	0.19		$	9.60		$	(6.04	)

Comprehensive income (loss)
Net income (loss)	$	121,545		$	7,064		$	327,228		$	(224,064	)
Other comprehensive income (loss), net of deferred taxes		(12,697	)		19,797			(8,945	)		171,123
Comprehensive income (loss)	$	108,848		$	26,861		$	318,283		$	(52,941	)

(1)	During a period of loss, the basic weighted average common shares outstanding is used in the denominator of the diluted loss per common share computation as the effect of including potential dilutive shares would be anti-dilutive.

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Platinum Underwriters Holdings, Ltd.

Condensed Consolidated Statements of Operations and Comprehensive Income – by Quarter

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

	Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2012			2012			2012			2012			2011
Revenue
Net premiums earned	$	144,621		$	138,588		$	145,075		$	138,212		$	167,322
Net investment income		22,031			23,209			26,155			28,552			29,758
Net realized gains on investments		18,455			22,982			24,978			22,339			718
Net impairment losses on investments		(149	)		(699	)		(1,113	)		(1,070	)		(14,746	)
Other income (expense)		527			(96	)		(191	)		(479	)		(193	)
Total revenue		185,485			183,984			194,904			187,554			182,859

Expenses
Net losses and loss adjustment expenses		(7,770	)		45,117			67,117			79,196			125,032
Net acquisition expenses		28,412			26,168			30,200			30,657			34,904
Operating expenses		23,808			19,966			19,696			16,983			14,168
Net foreign currency exchange losses (gains)		292			541			(310	)		532			(294	)
Net changes in fair value of derivatives		-			-			-			-			(965	)
Interest expense		4,777			4,775			4,774			4,772			4,770
Total expenses		49,519			96,567			121,477			132,140			177,615
Income before income taxes		135,966			87,417			73,427			55,414			5,244
Income tax expense (benefit)		14,421			2,553			5,895			2,127			(1,820	)
Net income	$	121,545		$	84,864		$	67,532		$	53,287		$	7,064

Basic
Weighted average common shares outstanding		32,674			32,996			33,914			35,291			36,117
Basic earnings per common share	$	3.71		$	2.56		$	1.98		$	1.50		$	0.20

Diluted
Adjusted weighted average common shares outstanding		33,048			33,272			34,104			35,510			36,302
Diluted earnings per common share (1)	$	3.67		$	2.54		$	1.97		$	1.49		$	0.19

Comprehensive income
Net income	$	121,545		$	84,864		$	67,532		$	53,287		$	7,064
Other comprehensive income (loss), net of deferred taxes		(12,697	)		1,825			8,104			(6,177	)		19,797
Comprehensive income	$	108,848		$	86,689		$	75,636		$	47,110		$	26,861

(1)	During a period of loss, the basic weighted average common shares outstanding is used in the denominator of the diluted loss per common share computation as the effect of including potential dilutive shares would be anti-dilutive.

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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,
	2012			2011			2012			2011
Net income (loss) attributable to common shareholders	$	121,545		$	7,064		$	327,228		$	(224,064	)
Portion allocated to participating common shareholders (1)		(265	)		(17	)		(1,076	)		1,189
Net income (loss) allocated to common shareholders	$	121,280		$	7,047		$	326,152		$	(222,875	)

Adjustments for:
Net realized gains on investments, net of tax	$	(17,023	)	$	(718	)	$	(83,102	)	$	(4,556	)
Net impairment losses on investments, net of tax		112			13,134			2,729			20,275
Net foreign currency exchange losses (gains), net of tax		264			(226	)		1,072			(487	)
Net operating income (loss) (2)	$	104,633		$	19,237		$	246,851		$	(207,643	)

Per diluted common share:
Net income (loss)	$	3.67		$	0.19		$	9.60		$	(6.04	)
Adjustments for:
Net realized gains on investments		(0.52	)		(0.02	)		(2.45	)		(0.12	)
Net impairment losses on investments		-			0.36			0.08			0.54
Net foreign currency exchange losses (gains)		0.01			-			0.03			(0.01	)
Net operating income (loss) per diluted common share (3)	$	3.16		$	0.53		$	7.26		$	(5.63	)

Adjusted weighted average common shares outstanding - diluted (4)		33,048			36,302			33,981			36,901

(1)	Represents earnings attributable to holders of unvested restricted shares issued under the Company's share incentive plans that are considered to be participating securities.

(2)	Net operating income (loss) is a non-GAAP measure as defined by Regulation G and represents net income (loss) after taxes excluding net realized gains and losses on investments, net impairment losses on investments and net foreign exchange gains and losses.

(3)	Net operating income (loss) per diluted common share is also a non-GAAP measure and is calculated by dividing net operating income (loss) by diluted weighted average shares outstanding for the period.

(4)

During a period of loss, the basic weighted average common shares outstanding is used in the denominator of the diluted loss per common share computation as the effect of including potential dilutive shares would be anti-dilutive. The adjusted weighted average common shares outstanding - diluted for the twelve months ended December 31, 2011 was 37,260.

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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,
	2012		2012		2012		2012		2011
Key Ratios
Combined ratio (%)		25.4%		61.3%		76.3%		88.2%		102.2%
Investable assets to shareholders' equity ratio	2.08:1		2.30:1		2.36:1		2.42:1		2.47:1
Debt to total capital (%)		11.7%		12.3%		12.7%		12.8%		12.9%
Net premiums written (annualized) to shareholders' equity		0.28		0.33		0.33		0.34		0.36

Share Data
Book value per common share (1)	$	57.90	$	54.60	$	51.84	$	49.00	$	47.59
Common shares outstanding (000's)		32,722		32,782		33,212		34,838		35,526

Market Price Per Common Share
High	$	47.40	$	43.08	$	38.43	$	37.64	$	35.36
Low		40.89		37.58		34.97		32.94		27.53
Close	$	46.00	$	40.87	$	38.10	$	36.50	$	34.11

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		125		125		124		127		125

(1)	See computation of book value per common share on page 11.

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Platinum Underwriters Holdings, Ltd.

Computation of Basic and Diluted Earnings (Loss) per Common Share

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

	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	2012			2011			2012			2011
Earnings (Loss)
Basic and Diluted
Net income (loss) attributable to common shareholders	$	121,545		$	7,064		$	327,228		$	(224,064	)
Portion allocated to participating common shareholders (1)		(265	)		(17	)		(1,076	)		1,189
Net income (loss) allocated to common shareholders	$	121,280		$	7,047		$	326,152		$	(222,875	)

Common Shares
Basic
Weighted average common shares outstanding		32,674			36,117			33,714			36,901
Diluted
Weighted average common shares outstanding		32,674			36,117			33,714			36,901
Effect of dilutive securities:
Common share options		204			59			171			164
Restricted share units		170			126			96			195
Adjusted weighted average common shares outstanding		33,048			36,302			33,981			37,260

Earnings (Loss) Per Common Share
Basic earnings (loss) per common share	$	3.71		$	0.20		$	9.67		$	(6.04	)
Diluted earnings (loss) per common share (2)	$	3.67		$	0.19		$	9.60		$	(6.04	)

(1)	Represents earnings attributable to holders of unvested restricted shares issued under the Company's share incentive plans that are considered to be participating securities.

(2)	During a period of loss, the basic weighted average common shares outstanding is used in the denominator of the diluted loss per common share computation as the effect of including potential dilutive shares would be anti-dilutive.

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Platinum Underwriters Holdings, Ltd.

Computation of Basic and Diluted Earnings 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,
	2012			2012			2012			2012			2011
Earnings
Basic and Diluted
Net income attributable to common shareholders	$	121,545		$	84,864		$	67,532		$	53,287		$	7,064
Portion allocated to participating common shareholders (1)		(265	)		(234	)		(278	)		(208	)		(17	)
Net income allocated to common shareholders	$	121,280		$	84,630		$	67,254		$	53,079		$	7,047

Common Shares
Basic
Weighted average common shares outstanding		32,674			32,996			33,914			35,291			36,117
Diluted
Weighted average common shares outstanding		32,674			32,996			33,914			35,291			36,117
Effect of dilutive securities:
Common share options		204			179			142			135			59
Restricted share units		170			97			48			84			126
Adjusted weighted average common shares outstanding		33,048			33,272			34,104			35,510			36,302

Earnings Per Common Share
Basic earnings per common share	$	3.71		$	2.56		$	1.98		$	1.50		$	0.20
Diluted earnings per common share (2)	$	3.67		$	2.54		$	1.97		$	1.49		$	0.19

(1)	Represents earnings attributable to holders of unvested restricted shares issued under the Company's share incentive plans that are considered to be participating securities.

(2)	During a period of loss, the basic weighted average common shares outstanding is used in the denominator of the diluted loss per common share computation as the effect of including potential dilutive shares would be anti-dilutive.

- 10 -

Platinum Underwriters Holdings, Ltd.

Book Value Per Common Share – by Quarter

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

	December 31,		September 30,		June 30,		March 31,		December 31,
	2012		2012		2012		2012		2011
Price per share at period end	$	46.00	$	40.87	$	38.10	$	36.50	$	34.11

Shareholders' equity	$	1,894,534	$	1,789,946	$	1,721,827	$	1,706,895	$	1,690,859
Add: Assumed exercise of share options		27,688		29,669		31,209		32,356		18,925
Shareholders' equity - diluted	$	1,922,222	$	1,819,615	$	1,753,036	$	1,739,251	$	1,709,784

Basic common shares outstanding (1)		32,722		32,782		33,212		34,838		35,526
Add: Management and directors' options (2)		833		903		968		1,014		624
Add: Directors' and officers' restricted share units		536		515		406		405		321
Diluted common shares outstanding		34,091		34,200		34,586		36,257		36,471

Book value per common share (3)
Book value per common share	$	57.90	$	54.60	$	51.84	$	49.00	$	47.59
Fully converted book value per common share	$	56.39	$	53.21	$	50.69	$	47.97	$	46.88

(1)	As of December 31, 2012, there were 32,722 common shares issued and outstanding. Included in this number were 73 restricted shares issued but unvested.
(2)	As of December 31, 2012, these were options with a price below the closing share price of $46.00.
(3)	Book value per common share and fully converted book value per common share are non-GAAP financial measures as defined by Regulation G.

- 11 -

Platinum Underwriters Holdings, Ltd.

Condensed Consolidated Statements of Cash Flows

($ in thousands)

	Three Months Ended						Twelve Months Ended
	December 31, 2012			December 31, 2011			December 31, 2012			December 31, 2011

Net cash provided by (used in) operating activities	$	(146,368	)	$	(71,852	)	$	(165,337	)	$	(33,706	)

Net cash provided by (used in) investing activities		216,909			(207,148	)		1,219,400			(24,211	)

Net cash provided by (used in) financing activities		(6,696	)		(63,601	)		(121,912	)		(153,093	)

Effect of foreign currency exchange rate changes on cash		(6,129	)		7,806			(4,266	)		15,643

Net increase (decrease) in cash and cash equivalents	$	57,716		$	(334,795	)	$	927,885		$	(195,367	)

- 12 -

Platinum Underwriters Holdings, Ltd.

Condensed Consolidated Statements of Cash Flows – by Quarter

($ in thousands)

	Three Months Ended
	December 31, 2012			September 30, 2012			June 30, 2012			March 31, 2012			December 31, 2011

Net cash provided by (used in) operating activities	$	(146,368	)	$	40,216		$	(26,496	)	$	(32,689	)	$	(71,852	)

Net cash provided by (used in) investing activities		216,909			170,213			388,556			443,722			(207,148	)

Net cash provided by (used in) financing activities		(6,696	)		(20,788	)		(62,533	)		(31,895	)		(63,601	)

Effect of foreign currency exchange rate changes on cash		(6,129	)		7,055			(1,392	)		(3,800	)		7,806

Net increase (decrease) in cash and cash equivalents	$	57,716		$	196,696		$	298,135		$	375,338		$	(334,795	)

- 13 -

Platinum Underwriters Holdings, Ltd.

Segment Reporting – Three Month Summary

($ in thousands)

	Three Months Ended December 31, 2012												Three Months Ended December 31, 2011
	Property and Marine			Casualty			Finite Risk			Total			Property and Marine			Casualty			Finite Risk			Total
Net premiums written	$	61,458		$	67,676		$	4,767		$	133,901		$	76,836		$	74,547		$	2,335		$	153,718

Net premiums earned		67,538			72,284			4,799			144,621			81,980			82,785			2,557			167,322
Net losses and loss adjustment expenses		47,200			(57,482	)		2,512			(7,770	)		76,194			52,459			(3,621	)		125,032
Net acquisition expenses		9,308			16,415			2,689			28,412			11,645			19,251			4,008			34,904
Other underwriting expenses		9,190			6,614			358			16,162			6,341			4,541			223			11,105
Segment underwriting income (loss)*	$	1,840		$	106,737		$	(760	)		107,817		$	(12,200	)	$	6,534		$	1,947			(3,719	)

Net investment income											22,031												29,758
Net realized gains on investments											18,455												718
Net impairment losses on investments											(149	)											(14,746	)
Other income (expense)											527												(193	)
Corporate expenses not allocated to segments											(7,646	)											(3,063	)
Net foreign currency exchange (losses) gains											(292	)											294
Net changes in fair value of derivatives											-												965
Interest expense											(4,777	)											(4,770	)
Income (loss) before income taxes										$	135,966											$	5,244

Underwriting ratios:*
Net loss and loss adjustment expense		69.9	%		(79.5	%)		52.3	%		(5.4	%)		92.9	%		63.4	%		(141.6	%)		74.7	%
Net acquisition expense		13.8	%		22.7	%		56.0	%		19.6	%		14.2	%		23.3	%		156.7	%		20.9	%
Other underwriting expense		13.6	%		9.2	%		7.5	%		11.2	%		7.7	%		5.5	%		8.7	%		6.6	%
Combined		97.3	%		(47.6	%)		115.8	%		25.4	%		114.8	%		92.2	%		23.8	%		102.2	%

Statutory underwriting ratios:*
Net loss and loss adjustment expense		69.9	%		(79.5	%)		52.3	%		(5.4	%)		92.9	%		63.4	%		(141.6	%)		74.7	%
Net acquisition expense		14.5	%		23.3	%		55.9	%		20.4	%		14.0	%		23.5	%		169.9	%		21.0	%
Other underwriting expense		15.0	%		9.8	%		7.5	%		12.1	%		8.3	%		6.1	%		9.6	%		7.2	%
Combined		99.4	%		(46.4	%)		115.7	%		27.1	%		115.2	%		93.0	%		37.9	%		102.9	%

* Segment underwriting income or loss and underwriting ratios are non-GAAP financial measures as defined by Regulation G.

The 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, 2012												Twelve Months Ended December 31, 2011
	Property and Marine			Casualty			Finite Risk			Total			Property and Marine			Casualty			Finite Risk			Total
Net premiums written	$	256,182		$	287,112		$	21,706		$	565,000		$	344,682		$	296,989		$	9,843		$	651,514

Net premiums earned		253,604			294,122			18,770			566,496			356,976			318,734			13,742			689,452
Net losses and loss adjustment expenses		132,580			43,763			7,317			183,660			628,062			178,650			(1,275	)		805,437
Net acquisition expenses		34,342			68,987			12,108			115,437			49,348			72,738			11,091			133,177
Other underwriting expenses		31,140			22,937			1,105			55,182			27,622			19,002			940			47,564
Segment underwriting income (loss)*	$	55,542		$	158,435		$	(1,760	)		212,217		$	(348,056	)	$	48,344		$	2,986			(296,726	)

Net investment income											99,947												125,863
Net realized gains on investments											88,754												3,934
Net impairment losses on investments											(3,031	)											(22,370	)
Other income (expense)											(239	)											645
Corporate expenses not allocated to segments											(25,271	)											(15,615	)
Net foreign currency exchange (losses) gains											(1,055	)											473
Net changes in fair value of derivatives											-												(4,329	)
Interest expense											(19,098	)											(19,072	)
Income (loss) before income taxes										$	352,224											$	(227,197	)

Underwriting ratios:*
Net loss and loss adjustment expense		52.3	%		14.9	%		39.0	%		32.4	%		175.9	%		56.0	%		(9.3	%)		116.8	%
Net acquisition expense		13.5	%		23.5	%		64.5	%		20.4	%		13.8	%		22.8	%		80.7	%		19.3	%
Other underwriting expense		12.3	%		7.8	%		5.9	%		9.7	%		7.7	%		6.0	%		6.8	%		6.9	%
Combined		78.1	%		46.2	%		109.4	%		62.5	%		197.4	%		84.8	%		78.2	%		143.0	%

Statutory underwriting ratios:*
Net loss and loss adjustment expense		52.3	%		14.9	%		39.0	%		32.4	%		175.9	%		56.0	%		(9.3	%)		116.8	%
Net acquisition expense		13.2	%		23.8	%		58.2	%		20.3	%		13.9	%		22.6	%		104.1	%		19.2	%
Other underwriting expense		12.2	%		8.0	%		5.1	%		9.8	%		8.0	%		6.4	%		9.5	%		7.3	%
Combined		77.7	%		46.7	%		102.3	%		62.5	%		197.8	%		85.0	%		104.3	%		143.3	%

* Segment underwriting income or loss and underwriting ratios are non-GAAP financial measures as defined by Regulation G.

The 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,
	2012			2012			2012			2012			2011
Net premiums written	$	61,458		$	64,876		$	61,695		$	68,153		$	76,836

Net premiums earned		67,538			61,900			62,838			61,328			81,980
Net losses and loss adjustment expenses		47,200			26,790			17,653			40,937			76,194
Net acquisition expenses		9,308			7,078			8,721			9,235			11,645
Other underwriting expenses		9,190			7,661			7,454			6,835			6,341
Segment underwriting income (loss)*	$	1,840		$	20,371		$	29,010		$	4,321		$	(12,200	)

Underwriting ratios:*
Net loss and loss adjustment expense		69.9	%		43.3	%		28.1	%		66.8	%		92.9	%
Net acquisition expense		13.8	%		11.4	%		13.9	%		15.1	%		14.2	%
Other underwriting expense		13.6	%		12.4	%		11.9	%		11.1	%		7.7	%
Combined		97.3	%		67.1	%		53.9	%		93.0	%		114.8	%

Statutory underwriting ratios:*
Net loss and loss adjustment expense		69.9	%		43.3	%		28.1	%		66.8	%		92.9	%
Net acquisition expense		14.5	%		11.7	%		13.1	%		13.5	%		14.0	%
Other underwriting expense		15.0	%		11.8	%		12.1	%		10.0	%		8.3	%
Combined		99.4	%		66.8	%		53.3	%		90.3	%		115.2	%

* Segment underwriting income or loss and underwriting ratios are non-GAAP financial measures as defined by Regulation G.

The 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,
	2012			2012			2012			2012			2011
Net premiums written	$	67,676		$	72,358		$	72,678		$	74,400		$	74,547

Net premiums earned		72,284			70,326			75,746			75,766			82,785
Net losses and loss adjustment expenses		(57,482	)		14,358			45,851			41,036			52,459
Net acquisition expenses		16,415			16,710			18,487			17,375			19,251
Other underwriting expenses		6,614			5,662			5,625			5,036			4,541
Segment underwriting income*	$	106,737		$	33,596		$	5,783		$	12,319		$	6,534

Underwriting ratios:*
Net loss and loss adjustment expense		(79.5	%)		20.4	%		60.5	%		54.2	%		63.4	%
Net acquisition expense		22.7	%		23.8	%		24.4	%		22.9	%		23.3	%
Other underwriting expense		9.2	%		8.1	%		7.4	%		6.6	%		5.5	%
Combined		(47.6	%)		52.3	%		92.3	%		83.7	%		92.2	%

Statutory underwriting ratios:*
Net loss and loss adjustment expense		(79.5	%)		20.4	%		60.5	%		54.2	%		63.4	%
Net acquisition expense		23.3	%		23.8	%		25.4	%		22.7	%		23.5	%
Other underwriting expense		9.8	%		7.8	%		7.7	%		6.8	%		6.1	%
Combined		(46.4	%)		52.0	%		93.6	%		83.7	%		93.0	%

* Segment underwriting income or loss and underwriting ratios are non-GAAP financial measures as defined by Regulation G.

The 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,
	2012			2012			2012			2012			2011
Net premiums written	$	4,767		$	8,745		$	7,086		$	1,108		$	2,335

Net premiums earned		4,799			6,362			6,491			1,118			2,557
Net losses and loss adjustment expenses		2,512			3,969			3,613			(2,777	)		(3,621	)
Net acquisition expenses		2,689			2,380			2,992			4,047			4,008
Other underwriting expenses		358			289			267			191			223
Segment underwriting income (loss)*	$	(760	)	$	(276	)	$	(381	)	$	(343	)	$	1,947

Underwriting ratios:*
Net loss and loss adjustment expense		52.3	%		62.4	%		55.7	%		(248.4	%)		(141.6	%)
Net acquisition expense		56.0	%		37.4	%		46.1	%		362.0	%		156.7	%
Other underwriting expense		7.5	%		4.5	%		4.1	%		17.1	%		8.7	%
Combined		115.8	%		104.3	%		105.9	%		130.7	%		23.8	%

Statutory underwriting ratios:*
Net loss and loss adjustment expense		52.3	%		62.4	%		55.7	%		(248.4	%)		(141.6	%)
Net acquisition expense		55.9	%		32.8	%		43.7	%		361.7	%		169.9	%
Other underwriting expense		7.5	%		3.3	%		3.8	%		17.2	%		9.6	%
Combined		115.7	%		98.5	%		103.2	%		130.5	%		37.9	%

* Segment underwriting income or loss and underwriting ratios are non-GAAP financial measures as defined by Regulation G.

The 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,
	2012		2011		2012		2011
Property and Marine
Excess-of-Loss	$	49,635	$	57,034	$	209,919	$	275,879
Proportional		11,823		19,802		46,263		68,803
Subtotal Property and Marine		61,458		76,836		256,182		344,682
Casualty
Excess-of-Loss		51,452		61,981		231,379		242,314
Proportional		16,224		12,566		55,733		54,675
Subtotal Casualty		67,676		74,547		287,112		296,989
Finite Risk
Excess-of-Loss		-		-		-		531
Proportional		4,767		2,335		21,706		9,312
Subtotal Finite Risk		4,767		2,335		21,706		9,843
Combined Segments
Excess-of-Loss		101,087		119,015		441,298		518,724
Proportional		32,814		34,703		123,702		132,790
Total	$	133,901	$	153,718	$	565,000	$	651,514

	Three Months Ended				Twelve Months Ended
	December 31,		December 31,		December 31,		December 31,
		2012		2011		2012		2011
Property and Marine
United States	$	42,553	$	46,954	$	161,838	$	189,442
International		18,905		29,882		94,344		155,240
Subtotal Property and Marine		61,458		76,836		256,182		344,682
Casualty
United States		60,352		65,596		258,218		258,450
International		7,324		8,951		28,894		38,539
Subtotal Casualty		67,676		74,547		287,112		296,989
Finite Risk
United States		4,767		2,335		21,706		9,843
International		-		-		-		-
Subtotal Finite Risk		4,767		2,335		21,706		9,843
Combined Segments
United States		107,672		114,885		441,762		457,735
International		26,229		38,833		123,238		193,779
Total	$	133,901	$	153,718	$	565,000	$	651,514

- 19 -

Platinum Underwriters Holdings, Ltd.

Premiums by Line of Business – Three Month Summary

($ in thousands)

	Three Months Ended December 31, 2012						Three Months Ended December 31, 2011
	Gross Premiums Written		Net Premiums Written		Net Premiums Earned		Gross Premiums Written		Net Premiums Written		Net Premiums Earned
Property and Marine
North American Property Proportional	$	2,027	$	2,027	$	2,064	$	2,688	$	2,688	$	1,996
North American Property Catastrophe		24,962		24,962		25,416		18,966		18,966		20,996
North American Property Risk		10,413		10,414		10,137		11,140		11,140		10,017
Other Property		5,831		5,831		5,903		14,744		14,744		14,866
Marine / Aviation Proportional		2,785		2,785		2,471		937		937		1,028
Marine / Aviation Excess		2,081		2,081		2,046		2,011		2,034		1,647
International Property Proportional		3,694		3,694		4,507		5,280		5,280		5,324
International Property Catastrophe		11,845		7,594		13,253		18,615		17,561		23,167
International Property Risk		2,070		2,070		1,741		3,486		3,486		2,939
Subtotal		65,708		61,458		67,538		77,867		76,836		81,980

Casualty
Clash		2,326		2,326		2,357		2,384		2,384		2,342
1st Dollar GL		2,458		2,458		2,532		3,152		3,152		3,305
1st Dollar Other		4,320		4,320		4,184		2,462		2,462		2,504
Casualty Excess		41,555		41,555		44,073		50,129		50,129		52,799
Accident & Health		8,355		8,304		10,534		6,189		6,189		9,965
International Casualty		4,482		4,482		4,911		4,911		4,911		5,547
International Motor		550		550		664		832		832		953
Financial Lines		3,681		3,681		3,029		4,488		4,488		5,370
Subtotal		67,727		67,676		72,284		74,547		74,547		82,785

Finite Risk
Finite Property		-		-		-		-		-		-
Finite Casualty		4,767		4,767		4,799		2,335		2,335		2,557
Subtotal		4,767		4,767		4,799		2,335		2,335		2,557

Total	$	138,202	$	133,901	$	144,621	$	154,749	$	153,718	$	167,322

- 20 -

Platinum Underwriters Holdings, Ltd.

Premiums by Line of Business – Twelve Month Summary

($ in thousands)

	Twelve Months Ended December 31, 2012						Twelve Months Ended December 31, 2011
	Gross Premiums Written		Net Premiums Written		Net Premiums Earned		Gross Premiums Written		Net Premiums Written		Net Premiums Earned
Property and Marine
North American Property Proportional	$	5,283	$	5,283	$	5,405	$	5,655	$	5,655	$	7,047
North American Property Catastrophe		92,641		92,905		89,959		107,867		92,766		94,912
North American Property Risk		35,636		35,378		36,783		38,464		38,734		40,473
Other Property		31,238		31,238		31,238		55,505		55,505		55,504
Marine / Aviation Proportional		7,531		7,531		6,776		4,877		4,877		5,481
Marine / Aviation Excess		6,136		6,136		6,925		5,534		5,558		7,347
International Property Proportional		15,682		15,682		16,741		18,397		18,397		18,111
International Property Catastrophe		58,561		53,919		51,580		133,340		112,365		117,882
International Property Risk		8,110		8,110		8,197		10,825		10,825		10,219
Subtotal		260,818		256,182		253,604		380,464		344,682		356,976

Casualty
Clash		9,314		9,314		9,443		10,267		10,267		10,187
1st Dollar GL		9,015		9,015		11,647		17,516		17,516		16,533
1st Dollar Other		13,030		13,030		13,637		8,259		8,259		8,882
Casualty Excess		181,101		181,101		183,337		177,808		177,808		189,335
Accident & Health		40,082		39,994		39,789		38,663		38,663		38,761
International Casualty		16,855		16,855		17,929		20,079		20,079		24,418
International Motor		2,027		2,027		2,029		4,053		4,053		4,053
Financial Lines		15,776		15,776		16,311		20,344		20,344		26,565
Subtotal		287,200		287,112		294,122		296,989		296,989		318,734

Finite Risk
Finite Property		-		-		-		531		531		531
Finite Casualty		21,706		21,706		18,770		9,312		9,312		13,211
Subtotal		21,706		21,706		18,770		9,843		9,843		13,742

Total	$	569,724	$	565,000	$	566,496	$	687,296	$	651,514	$	689,452

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Platinum Underwriters Holdings, Ltd.

Investments

($ in thousands)

	December 31, 2012								December 31, 2011
	Fair Value		Book Yield			Market Yield			Fair Value		Book Yield			Market Yield
Fixed maturity available-for-sale securities:
U.S. Government	$	4,944		2.7	%		0.4	%	$	5,083		2.7	%		0.6	%
U.S. Government agencies		-		-			-			100,259		0.9	%		0.4	%
Municipal bonds		1,209,934		4.4	%		2.3	%		1,660,760		4.7	%		3.2	%
Non-U.S. governments		50,977		1.6	%		0.8	%		71,266		2.6	%		2.1	%
Corporate bonds		300,908		4.4	%		2.7	%		349,548		4.8	%		2.8	%
Commercial mortgage-backed securities		135,526		5.3	%		2.5	%		204,609		5.6	%		3.8	%
Residential mortgage-backed securities		221,622		1.6	%		1.2	%		251,627		2.9	%		2.9	%
Asset-backed securities		17,774		1.7	%		1.6	%		20,422		1.7	%		8.5	%
Total fixed maturity available-for-sale securities	$	1,941,685		4.0	%		2.2	%	$	2,663,574		4.3	%		3.1	%

Fixed maturity trading securities:
Non-U.S. governments	$	112,813		3.6	%		0.4	%	$	125,126		3.6	%		0.9	%
Total fixed maturity trading securities	$	112,813		3.6	%		0.4	%	$	125,126		3.6	%		0.9	%

Short-term investments	$	172,801		1.8	%		2.0	%	$	588,834		1.0	%		0.9	%

	December 31, 2012								December 31, 2011
Credit quality of investments*	Fair Value		% of Total						Fair Value		% of Total
Aaa	$	776,738		34.9	%				$	1,504,875		44.6	%
Aa		831,190		37.3	%					1,037,258		30.7	%
A		340,612		15.3	%					561,045		16.6	%
Baa		231,950		10.4	%					202,372		6.0	%
Below investment grade		46,809		2.1	%					71,984		2.1	%
Total	$	2,227,299		100.0	%				$	3,377,534		100.0	%

Portfolio information**
Credit Quality	Aa1								Aa2
Book Yield		2.1%								3.0%
Duration	2.6 yrs								3.6 yrs

Rated using external rating agencies (primarily Moody’s) including credit enhancements from insurance entities. As of December 31, 2012, there were approximately $10.0 million of municipal bonds whose ratings of “Aa” included the benefit of guarantees from third-party insurers that would otherwise be rated as “A” without the existence of such guarantees.

**	Our portfolio includes investments, cash and cash equivalents, accrued investment income and net balances due to and from brokers.

(Aaa-Best Quality; Aa-High Quality; A-Upper to Medium Quality; Baa-Investment Grade)

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Platinum Underwriters Holdings, Ltd.

Fixed Maturity Available-for-Sale Securities Detail

($ in thousands)

	December 31, 2012
	Fair Value		Net Unrealized Gain (Loss)			Credit Quality		Duration		Weighted Average Life
Fixed maturity available-for-sale securities:
U.S. Government	$	4,944	$	312		Aaa			2.7
Municipal bonds:
State general obligation bonds		737,015		82,497		Aa2			6.5
Essential service bonds*		258,067		23,953		Aa3			5.7
State income tax and sales tax bonds		107,506		15,501		Aa1			7.3
Other municipal bonds		69,495		5,702		Aa2			4.1
Pre-refunded bonds		37,851		2,008		Aa3			1.9
Subtotal		1,209,934		129,661		Aa2			6.1
Non-U.S. governments		50,977		999		Aa1			1.8
Corporate bonds:
Industrial		187,582		11,387		Baa2			5.2
Utilities		68,833		4,886			A3		5.4
Insurance		44,493		4,654		Baa1			4.6
Subtotal		300,908		20,927		Baa1			5.1
Commercial mortgage-backed securities		135,526		8,378		Aa3			2.6		2.9
Residential mortgage-backed securities:
U.S. Government agency residential mortgage-backed securities		200,930		2,154		Aaa			1.0		5.0
Non-agency residential mortgage-backed securities		20,692		(2,863	)	Caa2			0.7		6.0
Subtotal		221,622		(709	)	Aa2			0.9		5.1
Asset-backed securities:
Asset-backed securities		13,634		34		Aaa			0.1		6.6
Sub-prime asset-backed securities		4,140		534			C		-		7.2
Subtotal		17,774		568			A2		0.1		6.8
Total	$	1,941,685	$	160,136		Aa3			5.0

*	Essential service bonds include bonds issued for education, transportation and utilities.

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Platinum Underwriters Holdings, Ltd.

Corporate Bonds Detail

($ in thousands)

	December 31, 2012
	Par Value		Fair Value		Net Unrealized Gain (Loss)			Credit Quality
Top 20 Holdings
HCC Insurance Holdings, Inc.	$	10,000	$	11,665	$	1,604		Baa1
Mattel, Inc.		10,000		10,965		847		Baa1
Hewlett-Packard Company		10,000		10,254		150		Baa1
MetLife, Inc.		10,000		10,065		65			A3
Anglo American plc		8,000		9,775		471		Baa1
American Electric Power Company, Inc.		7,500		8,451		958		Baa1
Loews Corporation		6,000		7,439		1,429		Baa2
Snap-On Incorporated		7,000		7,336		320		Baa1
Newmont Mining Corporation		7,000		7,202		251		Baa1
Teck Resources Limited		6,750		7,090		372		Baa2
Southern Company		6,625		6,898		283			A3
Rio Tinto plc		5,000		6,869		853			A3
Hess Corporation		5,000		6,588		723		Baa2
CMS Energy Corporation		5,000		6,469		910			A3
Entergy Corporation		6,000		6,289		288		Baa2
Northeast Utilities		5,700		6,172		267		Baa2
NextEra Energy, Inc.		5,750		6,163		420		Aa3
ArcelorMittal		5,000		6,039		(141	)	Ba1
FirstEnergy Corp.		5,000		5,766		768		Baa2
Grupo Mexico, S.A.B de C.V	$	5,000	$	5,726	$	704		Baa2

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Platinum Underwriters Holdings, Ltd.

Municipal Bonds Detail

($ in thousands)

	December 31, 2012
	Par Value		Fair Value			Net Unrealized Gain (Loss)		Credit Quality
Top 10 Exposures by Jurisdiction
Pennsylvania	$	110,200	$	129,040		$	18,142	Aa2
Connecticut		95,500		110,171			13,131	Aa3
Illinois		97,500		106,246			7,925		A2
California		79,665		94,696			13,446		A1
Texas		61,830		69,894			7,858	Aa1
Massachusetts		57,510		65,125			6,261	Aa2
District of Columbia		47,745		54,341			6,444	Aa2
New York		44,500		51,877			7,122	Aa1
Mississippi		43,255		46,760			2,693	Aa2
Hawaii	$	35,000	$	42,784		$	7,665	Aa2

	December 31, 2012
	Par Value		Fair Value			Net Unrealized Gain (Loss)		Credit Quality
Top 10 Holdings by Issuer
State of California	$	77,665	$	92,478		$	13,264		A1
State of Pennsylvania		76,700		90,903			13,724	Aa2
State of Connecticut		78,500		90,292			10,252	Aa3
State of Illinois		73,000		78,626			4,985		A2
State of Massachusetts		47,510		52,864			4,000	Aa1
State of Mississippi		43,255		46,760			2,693	Aa2
State of Texas		39,900		46,031			5,969	Aaa
State of Hawaii		35,000		42,784			7,665	Aa2
New Jersey Economic Development Authority		36,500		36,876			376		A1
New York State Urban Development Corporation	$	27,000	$	32,074		$	5,074	Aaa

	December 31, 2012
	Fair Value		% of Total
Credit quality of municipal bond portfolio*
Aaa	$	172,506		14.3	%
Aa		772,942		63.8	%
A		257,167		21.3	%
Baa		7,319		0.6	%
Total	$	1,209,934		100.0	%

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

($ in thousands)

	Three Months Ended					Twelve Months Ended
	December 31,			December 31,		December 31,			December 31,
	2012			2011		2012			2011
Net realized gains (losses) on investments by entity:
Subsidiary domiciled in Bermuda	$	14,364		$	718	$	72,606		$	5,710
Subsidiaries domiciled in the United States		4,091			-		16,148			(1,776	)
Total	$	18,455		$	718	$	88,754		$	3,934

Net realized gains (losses) on investments by type:
Sale of securities	$	19,178		$	5	$	90,097		$	1,419
Mark-to-market on trading securities		(723	)		713		(1,343	)		2,515
Total	$	18,455		$	718	$	88,754		$	3,934

Net impairment losses on investments by entity:
Subsidiary domiciled in Bermuda	$	42		$	10,141	$	2,168		$	16,384
Subsidiaries domiciled in the United States		107			4,605		863			5,986
Total	$	149		$	14,746	$	3,031		$	22,370

Net impairment losses on investments by type of security:
Commercial mortgage-backed securities	$	-		$	6	$	30		$	6
Residential mortgage-backed securities		57			12,660		2,896			18,970
Asset-backed securities		92			2,080		105			3,394
Total	$	149		$	14,746	$	3,031		$	22,370

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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, 2012 (1)												Twelve Months Ended December 31, 2011 (2)
	Gross			Ceded			Net			Paid to Incurred %			Gross		Ceded			Net		Paid to Incurred %
Paid losses and loss adjustment expenses	$	620,304		$	73		$	620,231			337.7	%	$	672,148	$	38,859		$	633,289		78.6	%
Change in unpaid losses and loss adjustment expenses		(436,928	)		(357	)		(436,571	)					167,175		(4,973	)		172,148
Losses and loss adjustment expenses incurred	$	183,376		$	(284	)	$	183,660					$	839,323	$	33,886		$	805,437

	Analysis of Unpaid Losses and Loss Adjustment Expenses
	As of December 31, 2012												As of December 31, 2011
	Gross			Ceded			Net			%			Gross		Ceded			Net		%
Outstanding losses and loss adjustment expenses	$	799,593		$	3,594		$	795,999			40.7	%	$	894,403	$	3,914		$	890,489		37.3	%
Incurred but not reported		1,161,689			3			1,161,686			59.3	%		1,495,211		41			1,495,170		62.7	%
Unpaid losses and loss adjustment expenses	$	1,961,282		$	3,597		$	1,957,685			100.0	%	$	2,389,614	$	3,955		$	2,385,659		100.0	%

(1)	Gross and ceded losses and loss adjustment expenses incurred includes effects of foreign currency exchange rate losses and gains of $8,596 and $1, respectively.
(2)	Gross and ceded losses and loss adjustment expenses incurred includes effects of foreign currency exchange rate losses and gains of $5,061 and $16, respectively.

- 27 -

Platinum Underwriters Holdings, Ltd.

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

($ in millions)

	Three Months Ended December 31, 2012												Three Months Ended December 31, 2011
	Property and Marine			Casualty			Finite Risk			Total			Property and Marine			Casualty			Finite Risk			Total
Non-Major Catastrophe Favorable (Unfavorable) Development
Net loss development related to prior years	$	7,263		$	114,329		$	1,310		$	122,902		$	6,987		$	14,049		$	6,428		$	27,464
Net premium adjustments related to prior years' losses		131			475			-			606			833			59			-			892
Net commission adjustments related to prior years' losses		172			693			(1,693	)		(828	)		325			(697	)		(3,425	)		(3,797	)
Net favorable (unfavorable) development		7,566			115,497			(383	)		122,680			8,145			13,411			3,003			24,559

Major Catastrophe Favorable (Unfavorable) Development
Net loss development related to prior years		(901	)		2			-			(899	)		3,100			77			-			3,177
Net premium adjustments related to prior years' losses		(89	)		-			-			(89	)		(680	)		-			-			(680	)
Net commission adjustments related to prior years' losses		1			-			-			1			-			-			-			-
Net favorable (unfavorable) development		(989	)		2			-			(987	)		2,420			77			-			2,497

Total net favorable (unfavorable) development	$	6,577		$	115,499		$	(383	)	$	121,693		$	10,565		$	13,488		$	3,003		$	27,056

	Twelve Months Ended December 31, 2012												Twelve Months Ended December 31, 2011
	Property and Marine			Casualty			Finite Risk			Total			Property and Marine			Casualty			Finite Risk			Total
Non-Major Catastrophe Favorable (Unfavorable) Development
Net loss development related to prior years	$	32,993		$	182,025		$	7,865		$	222,883		$	22,009		$	59,375		$	11,758		$	93,142
Net premium adjustments related to prior years' losses		4,211			2,451			-			6,662			287			662			-			949
Net commission adjustments related to prior years' losses		350			(322	)		(8,106	)		(8,078	)		(179	)		(190	)		(8,148	)		(8,517	)
Net favorable (unfavorable) development		37,554			184,154			(241	)		221,467			22,117			59,847			3,610			85,574

Major Catastrophe Favorable (Unfavorable) Development
Net loss development related to prior years		12,671			(11	)		-			12,660			19,426			45			371			19,842
Net premium adjustments related to prior years' losses		(60	)		-			-			(60	)		(1,035	)		-			-			(1,035	)
Net commission adjustments related to prior years' losses		(36	)		-			-			(36	)		(10	)		-			-			(10	)
Net favorable (unfavorable) development		12,575			(11	)		-			12,564			18,381			45			371			18,797

Total net favorable (unfavorable) development	$	50,129		$	184,143		$	(241	)	$	234,031		$	40,498		$	59,892		$	3,981		$	104,371

- 28 -

Platinum Underwriters Holdings, Ltd.

Estimated Exposure to Peak Zone Property Catastrophe Losses

As of January 1, 2013

($ in millions)

Estimated Probable Maximum Losses by Zone and Peril

		20 Year Return Period				100 Year Return Period				250 Year Return Period
Zones	Peril	Estimated Gross Loss		Estimated Net Loss		Estimated Gross Loss		Estimated Net Loss		Estimated Gross Loss		Estimated Net Loss
United States/Caribbean	Hurricane	$	96	$	96	$	185	$	185	$	229	$	229
United States	Earthquake		19		19		106		106		148		148
Pan-European	Windstorm		52		34		134		99		160		125
Japanese	Typhoon		7		7		69		69		70		70
Japanese	Earthquake		12		12		156		156		212		212
Canadian	Earthquake	$	-	$	-	$	50	$	50	$	83	$	83

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 net of reinstatement premiums but before income tax. Net loss estimates are net of reinstatement premiums and net of retrocessional recoveries but before income tax.

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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