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

Attached files

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8-K - PLATINUM UNDERWRITERS HOLDINGS LTD	secondquarter2013_8k.htm
EX-99.1 - PLATINUM UNDERWRITERS HOLDINGS LTD	earningsreleaseq2_2013.htm

Exhibit 99.2

Financial Supplement

Financial Information

as of June 30, 2013

(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

June 30, 2013

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, 2012. 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 operating income or loss (page 7), underwriting income or loss and 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 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, including the effect of new entrants to the 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. For a detailed discussion of our risk factors, refer to Item 1A, "Risk Factors," in our Annual Report on Form 10-K for the year ended December 31, 2012.

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Platinum Underwriters Holdings, Ltd.

Table of Contents

		Section:	Page:

		Financial Highlights:
		a. Financial Highlights	3

		Balance Sheets:
		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 (Loss) - by Quarter	6

		Other Company Data:
		a. Computation of Net Operating Income and Net Operating Income 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 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 Flows:
		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 - Six 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 - Six 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

June 30, 2013 and 2012

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

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2013			2012			2013			2012
Highlights
Net premiums written	$	146,370		$	141,459		$	281,135		$	285,120
Net premiums earned		142,933			145,075			269,786			283,287
Underwriting income (1)		36,542			34,412			105,790			50,709
Net investment income		17,808			26,155			36,352			54,707
Net operating income (2)		40,665			44,240			115,577			77,018
Net realized gains on investments		11,686			24,978			25,004			47,317
Net impairment losses on investments		(1,516	)		(1,113	)		(1,937	)		(2,183	)
Net income	$	49,854		$	67,532		$	136,370		$	120,819

Total assets	$	4,047,902		$	4,424,937		$	4,047,902		$	4,424,937
Investments and cash		3,607,807			4,057,595			3,607,807			4,057,595
Total shareholders' equity		1,746,546			1,721,827			1,746,546			1,721,827
Unpaid losses and loss adjustment expenses	$	1,793,087		$	2,229,603		$	1,793,087		$	2,229,603

Per share data
Common shares outstanding - end of period		29,268			33,212			29,268			33,212
Weighted average common shares outstanding - basic		30,571			33,914			31,467			34,602
Adjusted weighted average common shares outstanding - diluted		30,970			34,104			31,904			34,805
Basic earnings per common share	$	1.63		$	1.98		$	4.32		$	3.48
Diluted earnings per common share		1.61			1.97			4.26			3.46
Operating income per common share - diluted (2)		1.32			1.29			3.62			2.22
Dividends per common share		0.08			0.08			0.16			0.16
Book value per common share (3)	$	59.67		$	51.84		$	59.67		$	51.84

(1)	See reconciliation of underwriting income on pages 14-18.

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

(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)

	June 30,		March 31,		December 31,		September 30,		June 30,
	2013		2013		2012		2012		2012
Assets
Investments:
Fixed maturity securities	$	1,920,710	$	1,992,457	$	2,054,498	$	2,293,094	$	2,423,834
Short-term investments		77,636		104,443		172,801		165,741		167,778
Cash and cash equivalents		1,609,461		1,786,246		1,720,395		1,662,679		1,465,983
Accrued investment income		19,805		22,995		21,299		23,856		24,541
Reinsurance premiums receivable		133,360		124,590		128,517		150,775		145,132
Reinsurance balances (prepaid and recoverable)		5,464		4,701		6,560		4,335		4,538
Funds held by ceding companies		119,445		115,915		114,090		113,310		111,408
Deferred acquisition costs		30,173		28,789		28,112		29,189		27,620
Reinsurance deposit assets		76,948		52,088		50,693		-		-
Other assets		54,900		37,084		36,338		49,943		54,103
Total assets	$	4,047,902	$	4,269,308	$	4,333,303	$	4,492,922	$	4,424,937

Liabilities
Unpaid losses and loss adjustment expenses	$	1,793,087	$	1,862,278	$	1,961,282	$	2,160,154	$	2,229,603
Unearned premiums		123,590		119,537		113,960		122,150		114,759
Debt obligations		250,000		250,000		250,000		250,000		250,000
Commissions payable		72,994		67,667		64,849		67,489		64,304
Other liabilities		61,685		57,160		48,678		103,183		44,444
Total liabilities	$	2,301,356	$	2,356,642	$	2,438,769	$	2,702,976	$	2,703,110

Shareholders' Equity
Common shares	$	293	$	318	$	327	$	328	$	332
Additional paid-in capital		3,817		150,693		209,897		211,546		227,482
Accumulated other comprehensive income		64,367		131,103		137,690		150,387		148,562
Retained earnings		1,678,069		1,630,552		1,546,620		1,427,685		1,345,451
Total shareholders' equity	$	1,746,546	$	1,912,666	$	1,894,534	$	1,789,946	$	1,721,827

Total liabilities and shareholders' equity	$	4,047,902	$	4,269,308	$	4,333,303	$	4,492,922	$	4,424,937

Book value per common share (1)	$	59.67	$	60.23	$	57.90	$	54.60	$	51.84

(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						Six Months Ended
	June 30,						June 30,
	2013			2012			2013			2012
Revenue
Net premiums earned	$	142,933		$	145,075		$	269,786		$	283,287
Net investment income		17,808			26,155			36,352			54,707
Net realized gains on investments		11,686			24,978			25,004			47,317
Net impairment losses on investments		(1,516	)		(1,113	)		(1,937	)		(2,183	)
Other income (expense)		(315	)		(191	)		1,077			(670	)
Total revenue		170,596			194,904			330,282			382,458

Expenses
Net losses and loss adjustment expenses		62,667			67,117			76,665			146,313
Net acquisition expenses		30,313			30,200			60,532			60,857
Operating expenses		19,718			19,696			39,023			36,679
Net foreign currency exchange losses (gains)		(859	)		(310	)		(1,079	)		222
Interest expense		4,780			4,774			9,559			9,546
Total expenses		116,619			121,477			184,700			253,617
Income before income taxes		53,977			73,427			145,582			128,841
Income tax expense		4,123			5,895			9,212			8,022
Net income	$	49,854		$	67,532		$	136,370		$	120,819

Basic
Weighted average common shares outstanding		30,571			33,914			31,467			34,602
Basic earnings per common share	$	1.63		$	1.98		$	4.32		$	3.48

Diluted
Adjusted weighted average common shares outstanding		30,970			34,104			31,904			34,805
Diluted earnings per common share	$	1.61		$	1.97		$	4.26		$	3.46

Comprehensive income (loss)
Net income	$	49,854		$	67,532		$	136,370		$	120,819
Other comprehensive income (loss), net of deferred taxes		(66,736	)		8,104			(73,323	)		1,927
Comprehensive income (loss)	$	(16,882	)	$	75,636		$	63,047		$	122,746

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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
	June 30,			March 31,			December 31,			September 30,			June 30,
	2013			2013			2012			2012			2012
Revenue
Net premiums earned	$	142,933		$	126,853		$	144,621		$	138,588		$	145,075
Net investment income		17,808			18,544			22,031			23,209			26,155
Net realized gains on investments		11,686			13,318			18,455			22,982			24,978
Net impairment losses on investments		(1,516	)		(421	)		(149	)		(699	)		(1,113	)
Other income (expense)		(315	)		1,392			527			(96	)		(191	)
Total revenue		170,596			159,686			185,485			183,984			194,904

Expenses
Net losses and loss adjustment expenses		62,667			13,998			(7,770	)		45,117			67,117
Net acquisition expenses		30,313			30,219			28,412			26,168			30,200
Operating expenses		19,718			19,305			23,808			19,966			19,696
Net foreign currency exchange losses (gains)		(859	)		(220	)		292			541			(310	)
Interest expense		4,780			4,779			4,777			4,775			4,774
Total expenses		116,619			68,081			49,519			96,567			121,477
Income before income taxes		53,977			91,605			135,966			87,417			73,427
Income tax expense		4,123			5,089			14,421			2,553			5,895
Net income	$	49,854		$	86,516		$	121,545		$	84,864		$	67,532

Basic
Weighted average common shares outstanding		30,571			32,373			32,674			32,996			33,914
Basic earnings per common share	$	1.63		$	2.67		$	3.71		$	2.56		$	1.98

Diluted
Adjusted weighted average common shares outstanding		30,970			32,838			33,048			33,272			34,104
Diluted earnings per common share	$	1.61		$	2.63		$	3.67		$	2.54		$	1.97

Comprehensive income (loss)
Net income	$	49,854		$	86,516		$	121,545		$	84,864		$	67,532
Other comprehensive income (loss), net of deferred taxes		(66,736	)		(6,587	)		(12,697	)		1,825			8,104
Comprehensive income (loss)	$	(16,882	)	$	79,929		$	108,848		$	86,689		$	75,636

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Platinum Underwriters Holdings, Ltd.

Computation of Net Operating Income and Net Operating Income per Diluted Common Share

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

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2013			2012			2013			2012
Net income attributable to common shareholders	$	49,854		$	67,532		$	136,370		$	120,819
Portion allocated to participating common shareholders (1)		(113	)		(278	)		(304	)		(485	)
Net income allocated to common shareholders	$	49,741		$	67,254		$	136,066		$	120,334

Adjustments for:
Net realized gains on investments, net of tax	$	(9,706	)	$	(23,784	)	$	(21,329	)	$	(45,564	)
Net impairment losses on investments, net of tax		1,516			1,007			1,904			1,951
Net foreign currency exchange losses (gains), net of tax		(886	)		(237	)		(1,064	)		297
Net operating income (2)	$	40,665		$	44,240		$	115,577		$	77,018

Per diluted common share:
Net income	$	1.61		$	1.97		$	4.26		$	3.46
Adjustments for:
Net realized gains on investments		(0.31	)		(0.70	)		(0.67	)		(1.31	)
Net impairment losses on investments		0.05			0.03			0.06			0.06
Net foreign currency exchange losses (gains)		(0.03	)		(0.01	)		(0.03	)		0.01
Net operating income per diluted common share (3)	$	1.32		$	1.29		$	3.62		$	2.22

Adjusted weighted average common shares outstanding - diluted		30,970			34,104			31,904			34,805

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

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

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Platinum Underwriters Holdings, Ltd.

Key Ratios, Share Data, Ratings

	As of and for the Three Months Ended
	June 30,		March 31,		December 31,		September 30,		June 30,
	2013		2013		2012		2012		2012
Key Ratios
Combined ratio (%)		74.4%		45.4%		25.4%		61.3%		76.3%
Investable assets to shareholders' equity ratio	2.07:1		2.03:1		2.08:1		2.30:1		2.36:1
Debt to total capital (%)		12.5%		11.6%		11.7%		12.3%		12.7%
Net premiums written (annualized) to shareholders' equity		0.34		0.28		0.28		0.33		0.33

Share Data
Book value per common share (1)	$	59.67	$	60.23	$	57.90	$	54.60	$	51.84
Common shares outstanding (000's)		29,268		31,757		32,722		32,782		33,212

Market Price Per Common Share
High	$	59.50	$	56.34	$	47.40	$	43.08	$	38.43
Low		54.06		46.24		40.89		37.58		34.97
Close	$	57.22	$	55.81	$	46.00	$	40.87	$	38.10

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		124		125		125		125		124

(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 per Common Share

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

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2013			2012			2013			2012
Earnings
Basic and Diluted
Net income attributable to common shareholders	$	49,854		$	67,532		$	136,370		$	120,819
Portion allocated to participating common shareholders (1)		(113	)		(278	)		(304	)		(485	)
Net income allocated to common shareholders	$	49,741		$	67,254		$	136,066		$	120,334

Common Shares
Basic
Weighted average common shares outstanding		30,571			33,914			31,467			34,602
Diluted
Weighted average common shares outstanding		30,571			33,914			31,467			34,602
Effect of dilutive securities:
Common share options		155			142			191			139
Restricted share units		244			48			246			64
Adjusted weighted average common shares outstanding		30,970			34,104			31,904			34,805

Earnings Per Common Share
Basic earnings per common share	$	1.63		$	1.98		$	4.32		$	3.48
Diluted earnings per common share	$	1.61		$	1.97		$	4.26		$	3.46

(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.

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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
	June 30,			March 31,			December 31,			September 30,			June 30,
	2013			2013			2012			2012			2012
Earnings
Basic and Diluted
Net income attributable to common shareholders	$	49,854		$	86,516		$	121,545		$	84,864		$	67,532
Portion allocated to participating common shareholders (1)		(113	)		(189	)		(265	)		(234	)		(278	)
Net income allocated to common shareholders	$	49,741		$	86,327		$	121,280		$	84,630		$	67,254

Common Shares
Basic
Weighted average common shares outstanding		30,571			32,373			32,674			32,996			33,914
Diluted
Weighted average common shares outstanding		30,571			32,373			32,674			32,996			33,914
Effect of dilutive securities:
Common share options		155			219			204			179			142
Restricted share units		244			246			170			97			48
Adjusted weighted average common shares outstanding		30,970			32,838			33,048			33,272			34,104

Earnings Per Common Share
Basic earnings per common share	$	1.63		$	2.67		$	3.71		$	2.56		$	1.98
Diluted earnings per common share	$	1.61		$	2.63		$	3.67		$	2.54		$	1.97

(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.

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Platinum Underwriters Holdings, Ltd.

Book Value Per Common Share – by Quarter

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

	June 30,		March 31,		December 31,		September 30,		June 30,
	2013		2013		2012		2012		2012
Price per share at period end	$	57.22	$	55.81	$	46.00	$	40.87	$	38.10

Shareholders' equity	$	1,746,546	$	1,912,666	$	1,894,534	$	1,789,946	$	1,721,827
Add: Assumed exercise of share options		13,539		20,303		27,688		29,669		31,209
Shareholders' equity - diluted	$	1,760,085	$	1,932,969	$	1,922,222	$	1,819,615	$	1,753,036

Basic common shares outstanding (1)		29,268		31,757		32,722		32,782		33,212
Add: Common share options (2)		397		604		833		903		968
Add: Restricted share units		535		536		536		515		406
Diluted common shares outstanding		30,200		32,897		34,091		34,200		34,586

Book value per common share (3)
Book value per common share	$	59.67	$	60.23	$	57.90	$	54.60	$	51.84
Fully converted book value per common share	$	58.28	$	58.76	$	56.39	$	53.21	$	50.69

(1)	As of June 30, 2013, there were 29,268 common shares issued and outstanding. Included in this number were 73 restricted shares issued but unvested.

(2)	As of June 30, 2013, these were options with a price below the closing share price of $57.22.

(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 June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
Net cash provided by (used in) operating activities	$	(36,555	)	$	(26,496	)	$	(49,113	)	$	(59,185	)

Net cash provided by (used in) investing activities		18,716			388,556			165,450			832,278

Net cash provided by (used in) financing activities		(151,496	)		(62,533	)		(215,010	)		(94,428	)

Effect of foreign currency exchange rate changes on cash		(7,450	)		(1,392	)		(12,261	)		(5,192	)

Net increase (decrease) in cash and cash equivalents	$	(176,785	)	$	298,135		$	(110,934	)	$	673,473

- 12 -

Platinum Underwriters Holdings, Ltd.

Condensed Consolidated Statements of Cash Flows – by Quarter

($ in thousands)

	Three Months Ended
	June 30, 2013			March 31, 2013			December 31, 2012			September 30, 2012			June 30, 2012
Net cash provided by (used in) operating activities	$	(36,555	)	$	(12,558	)	$	(146,368	)	$	40,216		$	(26,496	)

Net cash provided by (used in) investing activities		18,716			146,734			216,909			170,213			388,556

Net cash provided by (used in) financing activities		(151,496	)		(63,514	)		(6,696	)		(20,788	)		(62,533	)

Effect of foreign currency exchange rate changes on cash		(7,450	)		(4,811	)		(6,129	)		7,055			(1,392	)

Net increase (decrease) in cash and cash equivalents	$	(176,785	)	$	65,851		$	57,716		$	196,696		$	298,135

- 13 -

Platinum Underwriters Holdings, Ltd.

Segment Reporting – Three Month Summary

($ in thousands)

	Three Months Ended June 30, 2013												Three Months Ended June 30, 2012
	Property and Marine			Casualty			Finite Risk			Total			Property and Marine			Casualty			Finite Risk			Total
Net premiums written	$	57,350		$	79,711		$	9,309		$	146,370		$	61,695		$	72,678		$	7,086		$	141,459

Net premiums earned		58,832			75,629			8,472			142,933			62,838			75,746			6,491			145,075
Net losses and loss adjustment expenses		21,292			35,358			6,017			62,667			17,653			45,851			3,613			67,117
Net acquisition expenses		9,698			18,068			2,547			30,313			8,721			18,487			2,992			30,200
Other underwriting expenses		7,414			5,670			327			13,411			7,454			5,625			267			13,346
Segment underwriting income (loss)*	$	20,428		$	16,533		$	(419	)		36,542		$	29,010		$	5,783		$	(381	)		34,412

Net investment income											17,808												26,155
Net realized gains on investments											11,686												24,978
Net impairment losses on investments											(1,516	)											(1,113	)
Other income (expense)											(315	)											(191	)
Corporate expenses not allocated to segments											(6,307	)											(6,350	)
Net foreign currency exchange (losses) gains											859												310
Interest expense											(4,780	)											(4,774	)
Income before income taxes										$	53,977											$	73,427

Underwriting ratios:*
Net loss and loss adjustment expense		36.2	%		46.8	%		71.0	%		43.8	%		28.1	%		60.5	%		55.7	%		46.3	%
Net acquisition expense		16.5	%		23.9	%		30.1	%		21.2	%		13.9	%		24.4	%		46.1	%		20.8	%
Other underwriting expense		12.6	%		7.5	%		3.9	%		9.4	%		11.9	%		7.4	%		4.1	%		9.2	%
Combined		65.3	%		78.2	%		105.0	%		74.4	%		53.9	%		92.3	%		105.9	%		76.3	%

Statutory underwriting ratios:*
Net loss and loss adjustment expense		36.2	%		46.8	%		71.0	%		43.8	%		28.1	%		60.5	%		55.7	%		46.3	%
Net acquisition expense		17.3	%		23.9	%		28.7	%		21.7	%		13.1	%		25.4	%		43.7	%		21.0	%
Other underwriting expense		12.9	%		7.1	%		3.5	%		9.2	%		12.1	%		7.7	%		3.8	%		9.4	%
Combined		66.4	%		77.8	%		103.2	%		74.7	%		53.3	%		93.6	%		103.2	%		76.7	%

* 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 – Six Month Summary

($ in thousands)

	Six Months Ended June 30, 2013												Six Months Ended June 30, 2012
	Property and Marine			Casualty			Finite Risk			Total			Property and Marine			Casualty			Finite Risk			Total
Net premiums written	$	116,777		$	150,555		$	13,803		$	281,135		$	129,848		$	147,078		$	8,194		$	285,120

Net premiums earned		110,684			146,424			12,678			269,786			124,166			151,512			7,609			283,287
Net losses and loss adjustment expenses		7,087			65,001			4,577			76,665			58,590			86,887			836			146,313
Net acquisition expenses		17,925			34,317			8,290			60,532			17,956			35,862			7,039			60,857
Other underwriting expenses		14,746			11,393			660			26,799			14,289			10,661			458			25,408
Segment underwriting income (loss)*	$	70,926		$	35,713		$	(849	)		105,790		$	33,331		$	18,102		$	(724	)		50,709

Net investment income											36,352												54,707
Net realized gains on investments											25,004												47,317
Net impairment losses on investments											(1,937	)											(2,183	)
Other income (expense)											1,077												(670	)
Corporate expenses not allocated to segments											(12,224	)											(11,271	)
Net foreign currency exchange (losses) gains											1,079												(222	)
Interest expense											(9,559	)											(9,546	)
Income before income taxes										$	145,582											$	128,841

Underwriting ratios:*
Net loss and loss adjustment expense		6.4	%		44.4	%		36.1	%		28.4	%		47.2	%		57.3	%		11.0	%		51.6	%
Net acquisition expense		16.2	%		23.4	%		65.4	%		22.4	%		14.5	%		23.7	%		92.5	%		21.5	%
Other underwriting expense		13.3	%		7.8	%		5.2	%		9.9	%		11.5	%		7.0	%		6.0	%		9.0	%
Combined		35.9	%		75.6	%		106.7	%		60.7	%		73.2	%		88.0	%		109.5	%		82.1	%

Statutory underwriting ratios:*
Net loss and loss adjustment expense		6.4	%		44.4	%		36.1	%		28.4	%		47.2	%		57.3	%		11.0	%		51.6	%
Net acquisition expense		16.3	%		23.4	%		60.9	%		22.3	%		13.3	%		24.0	%		86.7	%		20.9	%
Other underwriting expense		12.6	%		7.6	%		4.8	%		9.5	%		11.0	%		7.2	%		5.6	%		8.9	%
Combined		35.3	%		75.4	%		101.8	%		60.2	%		71.5	%		88.5	%		103.3	%		81.4	%

* 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
	June 30,			March 31,			December 31,			September 30,			June 30,
	2013			2013			2012			2012			2012
Net premiums written	$	57,350		$	59,427		$	61,458		$	64,876		$	61,695

Net premiums earned		58,832			51,852			67,538			61,900			62,838
Net losses and loss adjustment expenses		21,292			(14,205	)		47,200			26,790			17,653
Net acquisition expenses		9,698			8,227			9,308			7,078			8,721
Other underwriting expenses		7,414			7,332			9,190			7,661			7,454
Segment underwriting income*	$	20,428		$	50,498		$	1,840		$	20,371		$	29,010

Underwriting ratios:*
Net loss and loss adjustment expense		36.2	%		(27.4	%)		69.9	%		43.3	%		28.1	%
Net acquisition expense		16.5	%		15.9	%		13.8	%		11.4	%		13.9	%
Other underwriting expense		12.6	%		14.1	%		13.6	%		12.4	%		11.9	%
Combined		65.3	%		2.6	%		97.3	%		67.1	%		53.9	%

Statutory underwriting ratios:*
Net loss and loss adjustment expense		36.2	%		(27.4	%)		69.9	%		43.3	%		28.1	%
Net acquisition expense		17.3	%		15.4	%		14.5	%		11.7	%		13.1	%
Other underwriting expense		12.9	%		12.3	%		15.0	%		11.8	%		12.1	%
Combined		66.4	%		0.3	%		99.4	%		66.8	%		53.3	%

* 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.

- 16 -

Platinum Underwriters Holdings, Ltd.

Casualty Segment – by Quarter

($ in thousands)

	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2013			2013			2012			2012			2012
Net premiums written	$	79,711		$	70,844		$	67,676		$	72,358		$	72,678

Net premiums earned		75,629			70,795			72,284			70,326			75,746
Net losses and loss adjustment expenses		35,358			29,643			(57,482	)		14,358			45,851
Net acquisition expenses		18,068			16,249			16,415			16,710			18,487
Other underwriting expenses		5,670			5,723			6,614			5,662			5,625
Segment underwriting income*	$	16,533		$	19,180		$	106,737		$	33,596		$	5,783

Underwriting ratios:*
Net loss and loss adjustment expense		46.8	%		41.9	%		(79.5	%)		20.4	%		60.5	%
Net acquisition expense		23.9	%		23.0	%		22.7	%		23.8	%		24.4	%
Other underwriting expense		7.5	%		8.1	%		9.2	%		8.1	%		7.4	%
Combined		78.2	%		73.0	%		(47.6	%)		52.3	%		92.3	%

Statutory underwriting ratios:*
Net loss and loss adjustment expense		46.8	%		41.9	%		(79.5	%)		20.4	%		60.5	%
Net acquisition expense		23.9	%		22.7	%		23.3	%		23.8	%		25.4	%
Other underwriting expense		7.1	%		8.1	%		9.8	%		7.8	%		7.7	%
Combined		77.8	%		72.7	%		(46.4	%)		52.0	%		93.6	%

* 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
	June 30,			March 31,			December 31,			September 30,			June 30,
	2013			2013			2012			2012			2012
Net premiums written	$	9,309		$	4,494		$	4,767		$	8,745		$	7,086

Net premiums earned		8,472			4,206			4,799			6,362			6,491
Net losses and loss adjustment expenses		6,017			(1,440	)		2,512			3,969			3,613
Net acquisition expenses		2,547			5,743			2,689			2,380			2,992
Other underwriting expenses		327			333			358			289			267
Segment underwriting income (loss)*	$	(419	)	$	(430	)	$	(760	)	$	(276	)	$	(381	)

Underwriting ratios:*
Net loss and loss adjustment expense		71.0	%		(34.2	%)		52.3	%		62.4	%		55.7	%
Net acquisition expense		30.1	%		136.5	%		56.0	%		37.4	%		46.1	%
Other underwriting expense		3.9	%		7.9	%		7.5	%		4.5	%		4.1	%
Combined		105.0	%		110.2	%		115.8	%		104.3	%		105.9	%

Statutory underwriting ratios:*
Net loss and loss adjustment expense		71.0	%		(34.2	%)		52.3	%		62.4	%		55.7	%
Net acquisition expense		28.7	%		127.7	%		55.9	%		32.8	%		43.7	%
Other underwriting expense		3.5	%		7.4	%		7.5	%		3.3	%		3.8	%
Combined		103.2	%		100.9	%		115.7	%		98.5	%		103.2	%

* 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.

- 18 -

Platinum Underwriters Holdings, Ltd.

Net Premiums Written – Supplemental Information

($ in thousands)

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2013		2012		2013		2012
Property and Marine
Excess-of-Loss	$	44,375	$	50,301	$	92,458	$	107,035
Proportional		12,975		11,394		24,319		22,813
Subtotal Property and Marine		57,350		61,695		116,777		129,848
Casualty
Excess-of-Loss		62,909		58,561		118,265		120,491
Proportional		16,802		14,117		32,290		26,587
Subtotal Casualty		79,711		72,678		150,555		147,078
Finite Risk
Excess-of-Loss		-		-		-		-
Proportional		9,309		7,086		13,803		8,194
Subtotal Finite Risk		9,309		7,086		13,803		8,194
Combined Segments
Excess-of-Loss		107,284		108,862		210,723		227,526
Proportional		39,086		32,597		70,412		57,594
Total	$	146,370	$	141,459	$	281,135	$	285,120

	Three Months Ended				Six Months Ended
	June 30,				June 30,
		2013		2012		2013		2012
Property and Marine
United States	$	35,754	$	37,992	$	67,859	$	77,643
International		21,596		23,703		48,918		52,205
Subtotal Property and Marine		57,350		61,695		116,777		129,848
Casualty
United States		69,374		65,074		134,166		132,412
International		10,337		7,604		16,389		14,666
Subtotal Casualty		79,711		72,678		150,555		147,078
Finite Risk
United States		9,309		7,086		13,803		8,194
International		-		-		-		-
Subtotal Finite Risk		9,309		7,086		13,803		8,194
Combined Segments
United States		114,437		110,152		215,828		218,249
International		31,933		31,307		65,307		66,871
Total	$	146,370	$	141,459	$	281,135	$	285,120

- 19 -

Platinum Underwriters Holdings, Ltd.

Premiums by Line of Business – Three Month Summary

($ in thousands)

	Three Months Ended June 30, 2013									Three Months Ended June 30, 2012
	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	$	5,157		$	5,157		$	4,367		$	1,301	$	1,301	$	1,361
North American Property Catastrophe		19,381			18,651			19,466			20,893		21,158		19,633
North American Property Risk		8,659			8,659			8,744			8,315		8,315		9,590
Other Property		4,847			4,086			4,662			7,889		7,889		7,943
Marine / Aviation Proportional		2,303			2,303			1,962			1,281		1,281		1,054
Marine / Aviation Excess		(376	)		(376	)		(321	)		2,496		2,496		2,487
International Property Proportional		4,377			4,377			4,036			4,610		4,610		4,551
International Property Catastrophe		12,864			12,864			14,134			12,181		12,180		14,346
International Property Risk		1,629			1,629			1,782			2,465		2,465		1,873
Subtotal		58,841			57,350			58,832			61,431		61,695		62,838

Casualty
Clash		1,741			1,741			1,814			2,084		2,084		2,082
1st Dollar GL		2,145			2,145			2,002			2,152		2,152		3,018
1st Dollar Other		3,506			3,506			3,542			2,958		2,958		3,145
Casualty Excess		47,119			47,119			46,704			47,577		47,577		47,345
Accident & Health		13,447			13,330			13,896			8,816		8,791		10,024
International Casualty		7,398			7,398			3,142			4,165		4,165		4,641
International Motor		353			353			467			390		390		501
Financial Lines		4,119			4,119			4,062			4,561		4,561		4,990
Subtotal		79,828			79,711			75,629			72,703		72,678		75,746

Finite Risk
Finite Casualty		9,309			9,309			8,472			7,086		7,086		6,491
Subtotal		9,309			9,309			8,472			7,086		7,086		6,491

Total	$	147,978		$	146,370		$	142,933		$	141,220	$	141,459	$	145,075

- 20 -

Platinum Underwriters Holdings, Ltd.

Premiums by Line of Business – Six Month Summary

($ in thousands)

	Six Months Ended June 30, 2013						Six Months Ended June 30, 2012
	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	$	9,395	$	9,395	$	8,701	$	1,401	$	1,401	$	2,557
North American Property Catastrophe		37,515		36,785		37,606		43,755		44,020		41,128
North American Property Risk		16,179		16,129		16,102		16,974		16,974		19,140
Other Property		7,953		7,192		7,689		16,808		16,808		16,687
Marine / Aviation Proportional		4,226		4,226		3,144		3,185		3,185		2,590
Marine / Aviation Excess		157		157		236		3,343		3,343		4,183
International Property Proportional		8,679		8,679		8,098		8,406		8,406		8,541
International Property Catastrophe		30,016		30,016		24,919		31,717		31,325		25,159
International Property Risk		4,198		4,198		4,189		4,386		4,386		4,181
Subtotal		118,318		116,777		110,684		129,975		129,848		124,166

Casualty
Clash		3,703		3,703		3,636		4,530		4,530		4,487
1st Dollar GL		3,864		3,864		3,840		4,090		4,090		6,138
1st Dollar Other		7,819		7,819		7,614		5,518		5,518		6,205
Casualty Excess		89,527		89,527		89,588		94,145		94,145		95,690
Accident & Health		27,112		26,586		26,662		21,171		21,146		19,561
International Casualty		10,190		10,190		6,031		8,505		8,505		9,222
International Motor		1,009		1,009		1,006		896		896		892
Financial Lines		7,857		7,857		8,047		8,248		8,248		9,317
Subtotal		151,081		150,555		146,424		147,103		147,078		151,512

Finite Risk
Finite Casualty		13,803		13,803		12,678		8,194		8,194		7,609
Subtotal		13,803		13,803		12,678		8,194		8,194		7,609

Total	$	283,202	$	281,135	$	269,786	$	285,272	$	285,120	$	283,287

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Platinum Underwriters Holdings, Ltd.

Investments

($ in thousands)

	June 30, 2013								December 31, 2012
	Fair Value		Book Yield			Market Yield			Fair Value		Book Yield			Market Yield
Fixed maturity available-for-sale securities:
U.S. Government	$	4,842		2.8	%		0.5	%	$	4,944		2.7	%		0.4	%
Municipal bonds		1,216,779		3.9	%		2.6	%		1,209,934		4.4	%		2.3	%
Non-U.S. governments		40,482		1.2	%		0.8	%		50,977		1.6	%		0.8	%
Corporate bonds		245,738		4.2	%		3.4	%		300,908		4.4	%		2.7	%
Commercial mortgage-backed securities		99,092		5.5	%		3.0	%		135,526		5.3	%		2.5	%
Residential mortgage-backed securities		191,058		1.5	%		1.3	%		221,622		1.6	%		1.2	%
Asset-backed securities		17,649		2.8	%		1.5	%		17,774		1.7	%		1.6	%
Total fixed maturity available-for-sale securities	$	1,815,640		3.7	%		2.5	%	$	1,941,685		4.0	%		2.2	%

Fixed maturity trading securities:
Non-U.S. governments	$	105,070		3.6	%		0.7	%	$	112,813		3.6	%		0.4	%
Total fixed maturity trading securities	$	105,070		3.6	%		0.7	%	$	112,813		3.6	%		0.4	%

Short-term investments	$	77,636		2.3	%		2.2	%	$	172,801		1.8	%		2.0	%

	June 30, 2013								December 31, 2012
Credit quality of investments*	Fair Value		% of Total						Fair Value		% of Total
Aaa	$	584,781		29.3	%				$	776,738		34.9	%
Aa		803,591		40.2	%					831,190		37.3	%
A		368,169		18.4	%					340,612		15.3	%
Baa		208,031		10.4	%					231,950		10.4	%
Below investment grade		33,774		1.7	%					46,809		2.1	%
Total	$	1,998,346		100.0	%				$	2,227,299		100.0	%

Portfolio information**
Credit Quality	Aa2								Aa1
Book Yield		2.0%								2.1%
Duration	2.4 yrs								2.6 yrs

Rated using external rating agencies (primarily Moody’s) including credit enhancements from insurance entities. As of June 30, 2013, there were approximately $10.9 million and $4.5 million of municipal bonds whose ratings of “Aa” and “A”, respectively, included the benefit of guarantees from third-party insurers that would otherwise be rated as “A” and “Baa”, respectively, 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)

	June 30, 2013
	Fair Value		Net Unrealized Gain (Loss)			Credit Quality	Duration		Weighted Average Life
Fixed maturity available-for-sale securities:
U.S. Government	$	4,842	$	245		Aaa		2.2
Municipal bonds:
State general obligation bonds		796,390		42,292		Aa3		5.9
Essential service bonds*		182,376		9,423		Aa3		4.5
Pre-refunded bonds		84,378		3,664		Aa2		1.5
State income tax and sales tax bonds		76,909		6,545		Aa1		6.4
Other municipal bonds		76,726		2,742		Aa2		4.7
Subtotal		1,216,779		64,666		Aa2		5.3
Non-U.S. governments		40,482		513		Aa1		1.4
Corporate bonds:
Industrial		160,740		1,081		Baa2		5.1
Utilities		55,964		1,017		Baa1		5.9
Insurance		29,034		1,584		Baa1		4.3
Subtotal		245,738		3,682		Baa1		5.2
Commercial mortgage-backed securities		99,092		5,185		Aa3		2.3		2.5
Residential mortgage-backed securities:
U.S. Government agency residential mortgage-backed securities		173,425		1,483		Aaa		1.4		6.3
Non-agency residential mortgage-backed securities		17,633		(1,259	)	Caa2		0.4		6.5
Subtotal		191,058		224		Aa2		1.3		6.3
Asset-backed securities:
Asset-backed securities		13,480		(120	)	Aaa		0.1		6.1
Sub-prime asset-backed securities		4,169		1,443		C		1.7		7.6
Subtotal		17,649		1,323		A2		0.5		6.5
Total	$	1,815,640	$	75,838		Aa3		4.6

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

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Platinum Underwriters Holdings, Ltd.

Corporate Bonds Detail

($ in thousands)

	June 30, 2013
	Par Value		Fair Value		Net Unrealized Gain (Loss)			Credit Quality
Top 20 Holdings
American Electric Power Company, Inc.	$	12,500	$	12,722	$	236		Baa1
Mattel, Inc.		10,000		10,519		407		Baa1
Hewlett-Packard Company		10,000		10,042		26		Baa1
MetLife, Inc.		10,000		10,010		10			A3
Anglo American plc		8,000		9,469		318		Baa1
Snap-On Incorporated		7,000		7,207		198		Baa1
Loews Corporation		6,000		7,166		1,156		Baa2
Teck Resources Limited		6,750		6,543		(176	)	Baa2
Southern Company		6,625		6,418		(197	)		A3
Hess Corporation		5,000		6,267		463		Baa2
Entergy Corporation		6,000		6,231		231		Baa2
Newmont Mining Corporation		7,000		5,984		(969	)	Baa1
ArcelorMittal		5,000		5,933		(171	)	Ba1
Northeast Utilities		5,700		5,875		(19	)	Baa2
FirstEnergy Corp.		5,000		5,403		405		Baa2
Berkshire Hathaway Inc.		5,375		5,341		(30	)		A2
Grupo Mexico, S.A.B de C.V.		5,000		5,305		285		Baa2
Joy Global Inc.		5,000		5,274		243		Baa2
Southwestern Energy Company		5,300		5,261		(52	)	Baa3
Noble Energy, Inc.	$	5,000	$	5,165	$	147		Baa2

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Platinum Underwriters Holdings, Ltd.

Municipal Bonds Detail

($ in thousands)

	June 30, 2013
	Par Value		Fair Value			Net Unrealized Gain (Loss)			Credit Quality
Top 10 Exposures by Jurisdiction
Pennsylvania	$	130,920	$	146,022		$	9,084		Aa2
Illinois		136,500		143,058			4,352			A3
California		94,235		106,013			8,578			A1
Connecticut		99,620		105,296			4,309		Aa3
Massachusetts		72,560		76,643			2,892		Aa2
Texas		72,075		74,825			863		Aaa
New Jersey		50,675		52,986			(66	)		A2
New York		44,500		49,344			4,634		Aa1
Mississippi		43,255		45,362			1,385		Aa2
Hawaii	$	35,000	$	40,707		$	5,591		Aa2

	June 30, 2013
	Par Value		Fair Value			Net Unrealized Gain (Loss)			Credit Quality
Top 10 Holdings by Issuer
State of Illinois	$	112,000	$	116,775		$	2,715			A3
State of Pennsylvania		96,700		109,666			7,655		Aa2
State of Connecticut		99,620		105,296			4,309		Aa3
State of California		92,235		103,842			8,435			A1
State of Massachusetts		59,010		61,797			1,596		Aa1
State of Texas		50,145		51,577			(466	)	Aaa
State of Mississippi		43,255		45,362			1,385		Aa2
State of Hawaii		35,000		40,707			5,591		Aa2
New York State Urban Development Corporation		27,000		30,111			3,111		Aaa
New Jersey Economic Development Authority	$	29,500	$	29,662		$	162			A1

	June 30, 2013
	Fair Value		% of Total
Credit quality of municipal bond portfolio*
Aaa	$	194,111		16.0	%
Aa		703,736		57.8	%
A		311,811		25.6	%
Baa		7,121		0.6	%
Total	$	1,216,779		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						Six Months Ended
	June 30,						June 30,
	2013			2012			2013			2012
Net realized gains (losses) on investments by entity:
Subsidiary domiciled in Bermuda	$	6,030		$	21,567		$	14,504		$	42,307
Subsidiaries domiciled in the United States		5,656			3,411			10,500			5,010
Total	$	11,686		$	24,978		$	25,004		$	47,317

Net realized gains (losses) on investments by type:
Sale of securities	$	12,967		$	25,263		$	27,243		$	47,940
Mark-to-market on trading securities		(1,281	)		(285	)		(2,239	)		(623	)
Total	$	11,686		$	24,978		$	25,004		$	47,317

Net impairment losses on investments by entity:
Subsidiary domiciled in Bermuda	$	1,516		$	809		$	1,844		$	1,521
Subsidiaries domiciled in the United States		-			304			93			662
Total	$	1,516		$	1,113		$	1,937		$	2,183

Net impairment losses on investments by type of security:
Commercial mortgage-backed securities	$	-		$	-		$	-		$	30
Non-agency residential mortgage-backed securities		1,075			1,106			1,411			2,146
Sub-prime asset-backed securities		441			7			526			7
Total	$	1,516		$	1,113		$	1,937		$	2,183

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Platinum Underwriters Holdings, Ltd.

Analysis of Losses and Loss Adjustment Expenses

($ in thousands)

	Analysis of Losses and Loss Adjustment Expenses
	Six Months Ended June 30, 2013												Twelve Months Ended December 31, 2012
	Gross			Ceded			Net			Paid to Incurred %			Gross			Ceded			Net			Paid to Incurred %
Paid losses and loss adjustment expenses	$	220,826		$	(41	)	$	220,867			288.1	%	$	620,304		$	73		$	620,231			337.7	%
Change in unpaid losses and loss adjustment expenses		(144,209	)		(7	)		(144,202	)					(436,928	)		(357	)		(436,571	)
Losses and loss adjustment expenses incurred	$	76,617		$	(48	)	$	76,665					$	183,376		$	(284	)	$	183,660

	Analysis of Unpaid Losses and Loss Adjustment Expenses
	As of June 30, 2013 (1)												As of December 31, 2012 (2)
	Gross			Ceded			Net			%			Gross			Ceded			Net			%
Outstanding losses and loss adjustment expenses	$	723,193		$	3,587		$	719,606			40.2	%	$	799,593		$	3,594		$	795,999			40.7	%
Incurred but not reported		1,069,894			3			1,069,891			59.8	%		1,161,689			3			1,161,686			59.3	%
Unpaid losses and loss adjustment expenses	$	1,793,087		$	3,590		$	1,789,497			100.0	%	$	1,961,282		$	3,597		$	1,957,685			100.0	%

(1)	Gross and ceded unpaid losses and loss adjustment expenses include the effects of foreign currency exchange rate losses (gains) of ($23,986) and $0, respectively, for the six months ended June 30, 2013.

(2)	Gross and ceded unpaid losses and loss adjustment expenses include the effects of foreign currency exchange rate losses (gains) of $8,596 and ($1), respectively, for the twelve months ended December 31, 2012.

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Platinum Underwriters Holdings, Ltd.

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

($ in thousands)

	Three Months Ended June 30, 2013												Three Months Ended June 30, 2012
	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	$	1,981		$	21,959		$	1,081		$	25,021		$	5,817		$	11,748		$	1,723		$	19,288
Net premium adjustments related to prior years' losses		(19	)		(233	)		-			(252	)		2,532			539			-			3,071
Net commission adjustments related to prior years' losses		146			473			(837	)		(218	)		(2	)		(545	)		(1,590	)		(2,137	)
Net favorable (unfavorable) development		2,108			22,199			244			24,551			8,347			11,742			133			20,222

Major Catastrophe Favorable (Unfavorable) Development
Net loss development related to prior years		22,510			(3	)		(500	)		22,007			1,969			(13	)		-			1,956
Net premium adjustments related to prior years' losses		(2,403	)		-			-			(2,403	)		1,011			-			-			1,011
Net commission adjustments related to prior years' losses		(8	)		-			-			(8	)		(9	)		-			-			(9	)
Net favorable (unfavorable) development		20,099			(3	)		(500	)		19,596			2,971			(13	)		-			2,958

Total net favorable (unfavorable) development	$	22,207		$	22,196		$	(256	)	$	44,147		$	11,318		$	11,729		$	133		$	23,180

	Six Months Ended June 30, 2013												Six Months Ended June 30, 2012
	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	$	16,485		$	45,542		$	5,943		$	67,970		$	16,198		$	27,745		$	5,419		$	49,362
Net premium adjustments related to prior years' losses		34			(109	)		-			(75	)		3,808			1,559			-			5,367
Net commission adjustments related to prior years' losses		316			1,146			(5,723	)		(4,261	)		(283	)		(960	)		(5,398	)		(6,641	)
Net favorable (unfavorable) development		16,835			46,579			220			63,634			19,723			28,344			21			48,088

Major Catastrophe Favorable (Unfavorable) Development
Net loss development related to prior years		39,599			26			(500	)		39,125			2,291			(17	)		-			2,274
Net premium adjustments related to prior years' losses		(4,083	)		-			-			(4,083	)		677			-			-			677
Net commission adjustments related to prior years' losses		(31	)		-			-			(31	)		(24	)		-			-			(24	)
Net favorable (unfavorable) development		35,485			26			(500	)		35,011			2,944			(17	)		-			2,927

Total net favorable (unfavorable) development	$	52,320		$	46,605		$	(280	)	$	98,645		$	22,667		$	28,327		$	21		$	51,015

- 28 -

Platinum Underwriters Holdings, Ltd.

Estimated Exposure to Peak Zone Property Catastrophe Losses

As of July 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*	$	98	$	65	$	186	$	122	$	232	$	169
United States	Earthquake*		21		21		116		77		155		105
Pan-European	Windstorm		52		44		134		124		160		150
Japanese	Earthquake		14		14		147		147		194		194
Japanese	Typhoon		4		4		83		83		84		84
Canadian	Earthquake*	$	-	$	-	$	50	$	48	$	83	$	71

The United States/Caribbean Hurricane, United States Earthquake, and Canadian Earthquake net loss estimates above include the effects of a $50 million retrocessional cover purchased by the company effective July 1, 2013. This cover provides $50 million of protection per occurrence and in the aggregate for all natural perils in the United States, Caribbean Wind and Canadian Earthquake. In the case of multiple catastrophic loss events resulting in recoveries from this cover, a maximum of $50 million is recoverable across all three perils.

The Company has developed the estimates of losses expected from certain catastrophes for its portfolio of property, marine, workers’ compensation, personal accident contracts 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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