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

Attached files

file	filename
8-K - PLATINUM UNDERWRITERS HOLDINGS LTD	fourthquarter2013_8k.htm
EX-99.1 - PLATINUM UNDERWRITERS HOLDINGS LTD	earningsreleaseq4_2013.htm

Exhibit 99.2

Platinum Underwriters Holdings, Ltd.

Financial Supplement

December 31, 2013

(UNAUDITED)

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.

Waterloo House

100 Pitts Bay Road

Pembroke, HM 08

Bermuda

Kenneth A. Kurtzman – Investor Relations

Tel: (203) 252-5833

Email: kkurtzman@platinumre.com

Website: www.platinumre.com

Platinum Underwriters Holdings, Ltd.

Basis of Presentation and Non-GAAP Financial Measures:

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 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 11), book value per common share and fully converted book value per common share (page 13) and underwriting income or loss and related underwriting ratios (pages 14-18), 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.

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Platinum Underwriters Holdings, Ltd.

Table of Contents

	Page:
Financial Highlights:
Financial Highlights	3

Consolidated Financial Statements:
Condensed Consolidated Balance Sheets - by Quarter	4
Condensed Consolidated Statements of Operations and Comprehensive Income	5
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) - by Quarter	6
Computation of Basic and Diluted Earnings Per Common Share	7
Computation of Basic and Diluted Earnings Per Common Share - by Quarter	8
Condensed Consolidated Statements of Cash Flows	9
Condensed Consolidated Statements of Cash Flows - by Quarter	10

Other Company Information:
Computation of Net Operating Income and Net Operating Income Per Diluted Common Share	11
Key Ratios, Share Data, Ratings	12
Book Value and Fully Converted Book Value Per Common Share – by Quarter	13

Operating Segment Information:
Operating Segment Reporting - Three Month Summary	14
Operating Segment Reporting - Twelve Month Summary	15
Property and Marine Segment - by Quarter	16
Casualty Segment - by Quarter	17
Finite Risk Segment - by Quarter	18
Net Premiums Written - Supplemental Information	19
Premiums by Line of Business - Three Month Summary	20
Premiums by Line of Business - Twelve Month Summary	21

Investments:
Investments	22
Fixed Maturity Available-for-Sale Securities Detail	23
Corporate Bonds Detail	24
Municipal Bonds Detail	25
Net Realized Gains (Losses) on Investments and Net Impairment Losses on Investments	26

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

Exposures:
Estimated Exposure to Peak Zone Property Catastrophe Losses	29

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Platinum Underwriters Holdings, Ltd.

Financial Highlights

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

	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	2013			2012			2013			2012
Highlights
Net premiums written	$	148,088		$	133,901		$	567,121		$	565,000
Net premiums earned		148,267			144,621			553,413			566,496
Underwriting income (1)		54,197			107,817			206,714			212,217
Net investment income		17,936			22,031			72,046			99,947
Net operating income (2)		49,700			104,633			204,416			246,851
Net realized gains (losses) on investments		(778	)		18,455			23,920			88,754
Net impairment losses on investments		(31	)		(149	)		(2,033	)		(3,031	)
Net income	$	48,623		$	121,545		$	223,278		$	327,228

Total assets	$	3,923,885		$	4,333,303		$	3,923,885		$	4,333,303
Investments and cash and cash equivalents		3,492,362			3,947,694			3,492,362			3,947,694
Total shareholders' equity		1,746,707			1,894,534			1,746,707			1,894,534
Unpaid losses and loss adjustment expenses	$	1,671,365		$	1,961,282		$	1,671,365		$	1,961,282

Per share data
Common shares outstanding - end of period		28,143			32,722			28,143			32,722
Weighted average common shares outstanding - basic		28,097			32,674			29,909			33,714
Adjusted weighted average common shares outstanding - diluted		28,492			33,048			30,334			33,981
Basic earnings per common share	$	1.73		$	3.71		$	7.46		$	9.67
Diluted earnings per common share		1.71			3.67			7.35			9.60
Operating income per common share - diluted (2)		1.75			3.16			6.74			7.26
Dividends per common share		0.08			0.08			0.32			0.32
Book value per common share (3)		62.07			57.90			62.07			57.90
Fully converted book value per common share (3)	$	60.64		$	56.39		$	60.64		$	56.39

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

(2)	See computation of net operating income and net operating income per diluted common share on page 11.

(3)	See computation of book value per common share and fully converted book value per common share on page 13.

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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,
	2013		2013		2013		2013		2012
Assets
Investments:
Fixed maturity securities	$	1,961,265	$	1,937,984	$	1,920,710	$	1,992,457	$	2,054,498
Short-term investments		66,679		73,635		77,636		104,443		172,801
Cash and cash equivalents		1,464,418		1,565,405		1,609,461		1,786,246		1,720,395
Accrued investment income		20,026		20,451		19,805		22,995		21,299
Reinsurance premiums receivable		138,454		133,769		133,360		124,590		128,517
Reinsurance balances (prepaid and recoverable)		2,089		8,645		5,464		4,701		6,560
Funds held by ceding companies		119,241		118,983		119,445		115,915		114,090
Deferred acquisition costs		31,103		32,378		30,173		28,789		28,112
Reinsurance deposit assets		79,303		78,179		76,948		52,088		50,693
Other assets		41,307		39,830		54,900		37,084		36,338
Total assets	$	3,923,885	$	4,009,259	$	4,047,902	$	4,269,308	$	4,333,303

Liabilities
Unpaid losses and loss adjustment expenses	$	1,671,365	$	1,758,056	$	1,793,087	$	1,862,278	$	1,961,282
Unearned premiums		126,300		130,488		123,590		119,537		113,960
Debt obligations		250,000		250,000		250,000		250,000		250,000
Commissions payable		78,791		75,018		72,994		67,667		64,849
Other liabilities		50,722		96,767		61,685		57,160		48,678
Total liabilities	$	2,177,178	$	2,310,329	$	2,301,356	$	2,356,642	$	2,438,769

Shareholders' Equity
Common shares	$	281	$	279	$	293	$	318	$	327
Additional paid-in capital		10,711		-		3,817		150,693		209,897
Accumulated other comprehensive income		48,084		57,390		64,367		131,103		137,690
Retained earnings		1,687,631		1,641,261		1,678,069		1,630,552		1,546,620
Total shareholders' equity	$	1,746,707	$	1,698,930	$	1,746,546	$	1,912,666	$	1,894,534

Total liabilities and shareholders' equity	$	3,923,885	$	4,009,259	$	4,047,902	$	4,269,308	$	4,333,303

Book value per common share (1)	$	62.07	$	60.87	$	59.67	$	60.23	$	57.90
Fully converted book value per common share (1)	$	60.64	$	59.26	$	58.28	$	58.76	$	56.39

(1)	Book value per common share and fully converted book value per common share are non-GAAP financial measures as defined by Regulation G. See computation of book value per common share and fully converted book value per common share on page 13.

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Platinum Underwriters Holdings, Ltd.

Condensed Consolidated Statements of Operations and Comprehensive Income

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

	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	2013			2012			2013			2012
Revenue
Net premiums earned	$	148,267		$	144,621		$	553,413		$	566,496
Net investment income		17,936			22,031			72,046			99,947
Net realized gains (losses) on investments		(778	)		18,455			23,920			88,754
Net impairment losses on investments		(31	)		(149	)		(2,033	)		(3,031	)
Other income (expense)		974			527			3,477			(239	)
Total revenue		166,368			185,485			650,823			751,927

Expenses
Net losses and loss adjustment expenses		46,639			(7,770	)		167,446			183,660
Net acquisition expenses		32,560			28,412			123,767			115,437
Operating expenses		23,019			23,808			82,714			80,453
Net foreign currency exchange losses (gains)		358			292			(234	)		1,055
Interest expense		4,784			4,777			19,125			19,098
Total expenses		107,360			49,519			392,818			399,703
Income before income taxes		59,008			135,966			258,005			352,224
Income tax expense		10,385			14,421			34,727			24,996
Net income	$	48,623		$	121,545		$	223,278		$	327,228


Earnings Per Common Share
Weighted average common shares outstanding		28,097			32,674			29,909			33,714
Basic earnings per common share	$	1.73		$	3.71		$	7.46		$	9.67

Adjusted weighted average common shares outstanding		28,492			33,048			30,334			33,981
Diluted earnings per common share	$	1.71		$	3.67		$	7.35		$	9.60

Comprehensive income
Net income	$	48,623		$	121,545		$	223,278		$	327,228
Other comprehensive income (loss), net of deferred taxes		(9,306	)		(12,697	)		(89,606	)		(8,945	)
Comprehensive income	$	39,317		$	108,848		$	133,672		$	318,283

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Platinum Underwriters Holdings, Ltd.

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

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

	Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2013			2013			2013			2013			2012
Revenue
Net premiums earned	$	148,267		$	135,360		$	142,933		$	126,853		$	144,621
Net investment income		17,936			17,758			17,808			18,544			22,031
Net realized gains (losses) on investments		(778	)		(306	)		11,686			13,318			18,455
Net impairment losses on investments		(31	)		(65	)		(1,516	)		(421	)		(149	)
Other income (expense)		974			1,426			(315	)		1,392			527
Total revenue		166,368			154,173			170,596			159,686			185,485

Expenses
Net losses and loss adjustment expenses		46,639			44,142			62,667			13,998			(7,770	)
Net acquisition expenses		32,560			30,675			30,313			30,219			28,412
Operating expenses		23,019			20,672			19,718			19,305			23,808
Net foreign currency exchange losses (gains)		358			487			(859	)		(220	)		292
Interest expense		4,784			4,782			4,780			4,779			4,777
Total expenses		107,360			100,758			116,619			68,081			49,519
Income before income taxes		59,008			53,415			53,977			91,605			135,966
Income tax expense		10,385			15,130			4,123			5,089			14,421
Net income	$	48,623		$	38,285		$	49,854		$	86,516		$	121,545


Earnings Per Common Share
Weighted average common shares outstanding		28,097			28,655			30,571			32,373			32,674
Basic earnings per common share	$	1.73		$	1.34		$	1.63		$	2.67		$	3.71

Adjusted weighted average common shares outstanding		28,492			29,065			30,970			32,838			33,048
Diluted earnings per common share	$	1.71		$	1.32		$	1.61		$	2.63		$	3.67

Comprehensive income (loss)
Net income	$	48,623		$	38,285		$	49,854		$	86,516		$	121,545
Other comprehensive income (loss), net of deferred taxes		(9,306	)		(6,977	)		(66,736	)		(6,587	)		(12,697	)
Comprehensive income (loss)	$	39,317		$	31,308		$	(16,882	)	$	79,929		$	108,848

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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					Twelve Months Ended
	December 31,					December 31,
	2013		2012			2013			2012
Earnings
Basic and Diluted
Net income attributable to common shareholders	$	48,623	$	121,545		$	223,278		$	327,228
Portion allocated to participating common shareholders (1)		-		(265	)		(293	)		(1,076	)
Net income allocated to common shareholders	$	48,623	$	121,280		$	222,985		$	326,152

Common Shares
Basic
Weighted average common shares outstanding		28,097		32,674			29,909			33,714
Diluted
Weighted average common shares outstanding		28,097		32,674			29,909			33,714
Effect of dilutive securities:
Common share options		71		204			150			171
Restricted share units		324		170			275			96
Adjusted weighted average common shares outstanding		28,492		33,048			30,334			33,981

Earnings Per Common Share
Basic earnings per common share	$	1.73	$	3.71		$	7.46		$	9.67
Diluted earnings per common share	$	1.71	$	3.67		$	7.35		$	9.60

(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. All outstanding restricted shares vested in July 2013.

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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,
	2013		2013			2013			2013			2012
Earnings
Basic and Diluted
Net income attributable to common shareholders	$	48,623	$	38,285		$	49,854		$	86,516		$	121,545
Portion allocated to participating common shareholders (1)		-		(26	)		(113	)		(189	)		(265	)
Net income allocated to common shareholders	$	48,623	$	38,259		$	49,741		$	86,327		$	121,280

Common Shares
Basic
Weighted average common shares outstanding		28,097		28,655			30,571			32,373			32,674
Diluted
Weighted average common shares outstanding		28,097		28,655			30,571			32,373			32,674
Effect of dilutive securities:
Common share options		71		131			155			219			204
Restricted share units		324		279			244			246			170
Adjusted weighted average common shares outstanding		28,492		29,065			30,970			32,838			33,048

Earnings Per Common Share
Basic earnings per common share	$	1.73	$	1.34		$	1.63		$	2.67		$	3.71
Diluted earnings per common share	$	1.71	$	1.32		$	1.61		$	2.63		$	3.67

(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. All outstanding restricted shares vested in July 2013.

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Platinum Underwriters Holdings, Ltd.

Condensed Consolidated Statements of Cash Flows

($ in thousands)

	Three Months Ended December 31,						Twelve Months Ended December 31,
	2013			2012			2013			2012
Net cash provided by (used in) operating activities	$	(42,464	)	$	(146,368	)	$	(56,562	)	$	(165,337	)

Net cash provided by (used in) investing activities		(62,878	)		216,909			98,536			1,219,400

Net cash provided by (used in) financing activities		6,209			(6,696	)		(288,352	)		(121,912	)

Effect of foreign currency exchange rate changes		(1,854	)		(6,129	)		(9,599	)		(4,266	)

Net increase (decrease) in cash and cash equivalents	$	(100,987	)	$	57,716		$	(255,977	)	$	927,885

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Platinum Underwriters Holdings, Ltd.

Condensed Consolidated Statements of Cash Flows – by Quarter

($ in thousands)

	Three Months Ended
	December 31, 2013			September 30, 2013			June 30, 2013			March 31, 2013			December 31, 2012
Net cash provided by (used in) operating activities	$	(42,464	)	$	35,015		$	(36,555	)	$	(12,558	)	$	(146,368	)

Net cash provided by (used in) investing activities		(62,878	)		(4,036	)		18,716			146,734			216,909

Net cash provided by (used in) financing activities		6,209			(79,551	)		(151,496	)		(63,514	)		(6,696	)

Effect of foreign currency exchange rate changes		(1,854	)		4,516			(7,450	)		(4,811	)		(6,129	)

Net increase (decrease) in cash and cash equivalents	$	(100,987	)	$	(44,056	)	$	(176,785	)	$	65,851		$	57,716

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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					Twelve Months Ended
	December 31,					December 31,
	2013		2012			2013			2012
Net income attributable to common shareholders	$	48,623	$	121,545		$	223,278		$	327,228
Portion allocated to participating common shareholders (1)		-		(265	)		(293	)		(1,076	)
Net income allocated to common shareholders	$	48,623	$	121,280		$	222,985		$	326,152

Adjustments for:
Net realized (gains) losses on investments, net of tax	$	778	$	(17,023	)	$	(20,245	)	$	(83,102	)
Net impairment losses on investments, net of tax		31		112			2,000			2,729
Net foreign currency exchange losses (gains), net of tax		268		264			(324	)		1,072
Net operating income (2)	$	49,700	$	104,633		$	204,416		$	246,851

Per diluted common share:
Net income	$	1.71	$	3.67		$	7.35		$	9.60
Adjustments for:
Net realized (gains) losses on investments		0.03		(0.52	)		(0.67	)		(2.45	)
Net impairment losses on investments		-		-			0.07			0.08
Net foreign currency exchange losses (gains)		0.01		0.01			(0.01	)		0.03
Net operating income per diluted common share (3)	$	1.75	$	3.16		$	6.74		$	7.26

Adjusted weighted average common shares outstanding - diluted		28,492		33,048			30,334			33,981

(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. All outstanding restricted shares vested in July 2013.

(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
	December 31,		September 30,		June 30,		March 31,		December 31,
	2013		2013		2013		2013		2012
Key Ratios
Combined ratio (%)		63.5%		65.5%		74.4%		45.4%		25.4%
Investable assets to shareholders' equity ratio	2.0:1		2.1:1		2.1:1		2.0:1		2.1:1
Debt to total capital (%)		12.5%		12.8%		12.5%		11.6%		11.7%
Net premiums written (annualized) to shareholders' equity		0.34		0.32		0.34		0.28		0.28

Share Data
Book value per common share (1)	$	62.07	$	60.87	$	59.67	$	60.23	$	57.90
Common shares outstanding (000's)		28,143		27,910		29,268		31,757		32,722

Market Price Per Common Share
High	$	63.60	$	61.06	$	59.50	$	56.34	$	47.40
Low		57.84		56.63		54.06		46.24		40.89
Close	$	61.28	$	59.73	$	57.22	$	55.81	$	46.00

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		123		124		125		125

(1)	See computation of book value per common share on page 13.

- 12 -

Platinum Underwriters Holdings, Ltd.

Book Value and Fully Converted 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,
	2013		2013		2013		2013		2012
Market price per share at period end	$	61.28	$	59.73	$	57.22	$	55.81	$	46.00

Shareholders' equity	$	1,746,707	$	1,698,930	$	1,746,546	$	1,912,666	$	1,894,534
Add: Proceeds from exercise of share options		4,994		13,225		13,539		20,303		27,688
Shareholders' equity - diluted	$	1,751,701	$	1,712,155	$	1,760,085	$	1,932,969	$	1,922,222

Basic common shares outstanding		28,143		27,910		29,268		31,757		32,722
Add: Common share options (1)		148		388		397		604		833
Add: Restricted share units		598		596		535		536		536
Diluted common shares outstanding		28,889		28,894		30,200		32,897		34,091

Book value per common share (2)
Book value per common share	$	62.07	$	60.87	$	59.67	$	60.23	$	57.90
Fully converted book value per common share	$	60.64	$	59.26	$	58.28	$	58.76	$	56.39

(1)	Options with a price below the market price per share at period end.

(2)	Book value per common share and fully converted book value per common share are non-GAAP financial measures as defined by Regulation G.

- 13 -

Platinum Underwriters Holdings, Ltd.

Operating Segment Reporting – Three Month Summary

($ in thousands)

	Three Months Ended December 31, 2013												Three Months Ended December 31, 2012
	Property and Marine			Casualty			Finite Risk			Total			Property and Marine			Casualty			Finite Risk			Total
Net premiums written	$	53,561		$	75,121		$	19,406		$	148,088		$	61,458		$	67,676		$	4,767		$	133,901
Net premiums earned		56,199			78,921			13,147			148,267			67,538			72,284			4,799			144,621
Net losses and loss adjustment expenses		(1,005	)		40,645			6,999			46,639			47,200			(57,482	)		2,512			(7,770	)
Net acquisition expenses		10,718			18,264			3,578			32,560			9,308			16,415			2,689			28,412
Other underwriting expenses		8,405			6,029			437			14,871			9,190			6,614			358			16,162
Segment underwriting income (loss)*	$	38,081		$	13,983		$	2,133			54,197		$	1,840		$	106,737		$	(760	)		107,817

Net investment income											17,936												22,031
Net realized gains (losses) on investments											(778	)											18,455
Net impairment losses on investments											(31	)											(149	)
Other income (expense)											974												527
Corporate expenses not allocated to segments											(8,148	)											(7,646	)
Net foreign currency exchange (losses) gains											(358	)											(292	)
Interest expense											(4,784	)											(4,777	)
Income before income taxes										$	59,008											$	135,966

Underwriting ratios:*
Net loss and loss adjustment expense		(1.8	%)		51.5	%		53.2	%		31.5	%		69.9	%		(79.5	%)		52.3	%		(5.4	%)
Net acquisition expense		19.1	%		23.1	%		27.2	%		22.0	%		13.8	%		22.7	%		56.0	%		19.6	%
Other underwriting expense		15.0	%		7.6	%		3.3	%		10.0	%		13.6	%		9.2	%		7.5	%		11.2	%
Combined		32.3	%		82.2	%		83.7	%		63.5	%		97.3	%		(47.6	%)		115.8	%		25.4	%

Statutory underwriting ratios:*
Net loss and loss adjustment expense		(1.8	%)		51.5	%		53.2	%		31.5	%		69.9	%		(79.5	%)		52.3	%		(5.4	%)
Net acquisition expense		16.8	%		23.1	%		25.1	%		21.1	%		14.5	%		23.3	%		55.9	%		20.4	%
Other underwriting expense		15.7	%		8.0	%		2.3	%		10.0	%		15.0	%		9.8	%		7.5	%		12.1	%
Combined		30.7	%		82.6	%		80.6	%		62.6	%		99.4	%		(46.4	%)		115.7	%		27.1	%

* 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.

Operating Segment Reporting – Twelve Month Summary

($ in thousands)

	Twelve Months Ended December 31, 2013												Twelve Months Ended December 31, 2012
	Property and Marine			Casualty			Finite Risk			Total			Property and Marine			Casualty			Finite Risk			Total
Net premiums written	$	229,507		$	295,668		$	41,946		$	567,121		$	256,182		$	287,112		$	21,706		$	565,000
Net premiums earned		222,010			297,888			33,515			553,413			253,604			294,122			18,770			566,496
Net losses and loss adjustment expenses		34,421			115,888			17,137			167,446			132,580			43,763			7,317			183,660
Net acquisition expenses		38,342			71,648			13,777			123,767			34,342			68,987			12,108			115,437
Other underwriting expenses		30,898			23,149			1,439			55,486			31,140			22,937			1,105			55,182
Segment underwriting income (loss)*	$	118,349		$	87,203		$	1,162			206,714		$	55,542		$	158,435		$	(1,760	)		212,217

Net investment income											72,046												99,947
Net realized gains on investments											23,920												88,754
Net impairment losses on investments											(2,033	)											(3,031	)
Other income (expense)											3,477												(239	)
Corporate expenses not allocated to segments											(27,228	)											(25,271	)
Net foreign currency exchange (losses) gains											234												(1,055	)
Interest expense											(19,125	)											(19,098	)
Income before income taxes										$	258,005											$	352,224

Underwriting ratios:*
Net loss and loss adjustment expense		15.5	%		38.9	%		51.1	%		30.3	%		52.3	%		14.9	%		39.0	%		32.4	%
Net acquisition expense		17.3	%		24.1	%		41.1	%		22.4	%		13.5	%		23.5	%		64.5	%		20.4	%
Other underwriting expense		13.9	%		7.8	%		4.3	%		10.0	%		12.3	%		7.8	%		5.9	%		9.7	%
Combined		46.7	%		70.8	%		96.5	%		62.7	%		78.1	%		46.2	%		109.4	%		62.5	%

Statutory underwriting ratios:*
Net loss and loss adjustment expense		15.5	%		38.9	%		51.1	%		30.3	%		52.3	%		14.9	%		39.0	%		32.4	%
Net acquisition expense		17.5	%		24.1	%		36.5	%		22.3	%		13.2	%		23.8	%		58.2	%		20.3	%
Other underwriting expense		13.5	%		7.8	%		3.4	%		9.8	%		12.2	%		8.0	%		5.1	%		9.8	%
Combined		46.5	%		70.8	%		91.0	%		62.4	%		77.7	%		46.7	%		102.3	%		62.5	%

* 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,
	2013			2013			2013			2013			2012
Net premiums written	$	53,561		$	59,169		$	57,350		$	59,427		$	61,458
Net premiums earned		56,199			55,127			58,832			51,852			67,538
Net losses and loss adjustment expenses		(1,005	)		28,339			21,292			(14,205	)		47,200
Net acquisition expenses		10,718			9,699			9,698			8,227			9,308
Other underwriting expenses		8,405			7,747			7,414			7,332			9,190
Segment underwriting income*	$	38,081		$	9,342		$	20,428		$	50,498		$	1,840

Underwriting ratios:*
Net loss and loss adjustment expense		(1.8	%)		51.4	%		36.2	%		(27.4	%)		69.9	%
Net acquisition expense		19.1	%		17.6	%		16.5	%		15.9	%		13.8	%
Other underwriting expense		15.0	%		14.1	%		12.6	%		14.1	%		13.6	%
Combined		32.3	%		83.1	%		65.3	%		2.6	%		97.3	%

Statutory underwriting ratios:*
Net loss and loss adjustment expense		(1.8	%)		51.4	%		36.2	%		(27.4	%)		69.9	%
Net acquisition expense		16.8	%		20.6	%		17.3	%		15.4	%		14.5	%
Other underwriting expense		15.7	%		13.1	%		12.9	%		12.3	%		15.0	%
Combined		30.7	%		85.1	%		66.4	%		0.3	%		99.4	%

* 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.

- 16 -

Platinum Underwriters Holdings, Ltd.

Casualty Segment – by Quarter

($ in thousands)

	Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2013			2013			2013			2013			2012
Net premiums written	$	75,121		$	69,992		$	79,711		$	70,844		$	67,676
Net premiums earned		78,921			72,543			75,629			70,795			72,284
Net losses and loss adjustment expenses		40,645			10,242			35,358			29,643			(57,482	)
Net acquisition expenses		18,264			19,067			18,068			16,249			16,415
Other underwriting expenses		6,029			5,727			5,670			5,723			6,614
Segment underwriting income*	$	13,983		$	37,507		$	16,533		$	19,180		$	106,737

Underwriting ratios:*
Net loss and loss adjustment expense		51.5	%		14.1	%		46.8	%		41.9	%		(79.5	%)
Net acquisition expense		23.1	%		26.3	%		23.9	%		23.0	%		22.7	%
Other underwriting expense		7.6	%		7.9	%		7.5	%		8.1	%		9.2	%
Combined		82.2	%		48.3	%		78.2	%		73.0	%		(47.6	%)

Statutory underwriting ratios:*
Net loss and loss adjustment expense		51.5	%		14.1	%		46.8	%		41.9	%		(79.5	%)
Net acquisition expense		23.1	%		26.5	%		23.9	%		22.7	%		23.3	%
Other underwriting expense		8.0	%		8.2	%		7.1	%		8.1	%		9.8	%
Combined		82.6	%		48.8	%		77.8	%		72.7	%		(46.4	%)

* 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.

- 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,
	2013			2013			2013			2013			2012
Net premiums written	$	19,406		$	8,737		$	9,309		$	4,494		$	4,767
Net premiums earned		13,147			7,690			8,472			4,206			4,799
Net losses and loss adjustment expenses		6,999			5,561			6,017			(1,440	)		2,512
Net acquisition expenses		3,578			1,909			2,547			5,743			2,689
Other underwriting expenses		437			342			327			333			358
Segment underwriting income (loss)*	$	2,133		$	(122	)	$	(419	)	$	(430	)	$	(760	)

Underwriting ratios:*
Net loss and loss adjustment expense		53.2	%		72.3	%		71.0	%		(34.2	%)		52.3	%
Net acquisition expense		27.2	%		24.8	%		30.1	%		136.5	%		56.0	%
Other underwriting expense		3.3	%		4.4	%		3.9	%		7.9	%		7.5	%
Combined		83.7	%		101.5	%		105.0	%		110.2	%		115.8	%

Statutory underwriting ratios:*
Net loss and loss adjustment expense		53.2	%		72.3	%		71.0	%		(34.2	%)		52.3	%
Net acquisition expense		25.1	%		23.4	%		28.7	%		127.7	%		55.9	%
Other underwriting expense		2.3	%		3.9	%		3.5	%		7.4	%		7.5	%
Combined		80.6	%		99.6	%		103.2	%		100.9	%		115.7	%

* 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.

- 18 -

Platinum Underwriters Holdings, Ltd.

Net Premiums Written – Supplemental Information

($ in thousands)

	Three Months Ended				Twelve Months Ended
	December 31,				December 31,
	2013		2012		2013		2012
Property and Marine
Excess-of-Loss	$	40,271	$	49,635	$	173,849	$	209,919
Proportional		13,290		11,823		55,658		46,263
Subtotal Property and Marine		53,561		61,458		229,507		256,182
Casualty
Excess-of-Loss		52,211		51,452		223,170		231,379
Proportional		22,910		16,224		72,498		55,733
Subtotal Casualty		75,121		67,676		295,668		287,112
Finite Risk
Excess-of-Loss		-		-		-		-
Proportional		19,406		4,767		41,946		21,706
Subtotal Finite Risk		19,406		4,767		41,946		21,706
Combined Segments
Excess-of-Loss		92,482		101,087		397,019		441,298
Proportional		55,606		32,814		170,102		123,702
Total	$	148,088	$	133,901	$	567,121	$	565,000

	Three Months Ended				Twelve Months Ended
	December 31,				December 31,
		2013		2012		2013		2012
Property and Marine
United States	$	35,023	$	42,553	$	137,890	$	161,838
International		18,538		18,905		91,617		94,344
Subtotal Property and Marine		53,561		61,458		229,507		256,182
Casualty
United States		68,466		60,352		264,274		258,218
International		6,655		7,324		31,394		28,894
Subtotal Casualty		75,121		67,676		295,668		287,112
Finite Risk
United States		19,406		4,767		41,946		21,706
International		-		-		-		-
Subtotal Finite Risk		19,406		4,767		41,946		21,706
Combined Segments
United States		122,895		107,672		444,110		441,762
International		25,193		26,229		123,011		123,238
Total	$	148,088	$	133,901	$	567,121	$	565,000

- 19 -

Platinum Underwriters Holdings, Ltd.

Premiums by Line of Business – Three Month Summary

($ in thousands)

	Three Months Ended December 31, 2013						Three Months Ended December 31, 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	$	5,667	$	5,667	$	9,325	$	2,027	$	2,027	$	2,064
North American Property Catastrophe		18,141		18,141		15,301		24,962		24,962		25,416
North American Property Risk		8,847		8,847		8,718		10,413		10,414		10,137
Other Property, including Crop		3,036		3,036		2,492		5,831		5,831		5,903
Marine / Aviation Proportional		3,688		3,688		2,925		2,785		2,785		2,471
Marine / Aviation Excess		1,052		1,052		1,056		2,081		2,081		2,046
International Property Proportional		3,520		3,520		3,076		3,694		3,694		4,507
International Property Catastrophe		8,181		7,580		11,207		11,845		7,594		13,253
International Property Risk		2,030		2,030		2,099		2,070		2,070		1,741
Subtotal		54,162		53,561		56,199		65,708		61,458		67,538

Casualty
1st Dollar GL		1,475		1,475		1,961		2,458		2,458		2,532
1st Dollar Other		3,478		3,478		3,839		4,320		4,320		4,184
Casualty Excess		33,539		33,539		39,803		41,555		41,555		44,073
Accident & Health		28,214		27,158		23,097		8,355		8,304		10,534
Clash		1,887		1,887		1,747		2,326		2,326		2,357
International Casualty		3,830		3,830		4,625		4,482		4,482		4,911
International Motor		418		418		538		550		550		664
Financial Lines		3,336		3,336		3,311		3,681		3,681		3,029
Subtotal		76,177		75,121		78,921		67,727		67,676		72,284

Finite Risk
Finite Casualty		19,406		19,406		13,147		4,767		4,767		4,799
Subtotal		19,406		19,406		13,147		4,767		4,767		4,799

Total	$	149,745	$	148,088	$	148,267	$	138,202	$	133,901	$	144,621

- 20 -

Platinum Underwriters Holdings, Ltd.

Premiums by Line of Business – Twelve Month Summary

($ in thousands)

	Twelve Months Ended December 31, 2013						Twelve Months Ended December 31, 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	$	26,616	$	26,616	$	24,551	$	5,283	$	5,283	$	5,405
North American Property Catastrophe		76,448		68,293		68,702		92,641		92,905		89,959
North American Property Risk		32,770		32,720		32,483		35,636		35,378		36,783
Other Property, including Crop		14,529		13,218		13,171		31,238		31,238		31,238
Marine / Aviation Proportional		10,304		10,304		8,214		7,531		7,531		6,776
Marine / Aviation Excess		2,517		2,517		2,522		6,136		6,136		6,925
International Property Proportional		16,100		16,100		15,175		15,682		15,682		16,741
International Property Catastrophe		52,818		51,392		48,749		58,561		53,919		51,580
International Property Risk		8,347		8,347		8,443		8,110		8,110		8,197
Subtotal		240,449		229,507		222,010		260,818		256,182		253,604

Casualty
1st Dollar GL		6,922		6,922		7,486		9,015		9,015		11,647
1st Dollar Other		15,021		15,021		15,236		13,030		13,030		13,637
Casualty Excess		162,178		162,178		171,444		181,101		181,101		183,337
Accident & Health		69,101		67,403		62,874		40,082		39,994		39,789
Clash		7,770		7,770		7,604		9,314		9,314		9,443
International Casualty		19,172		19,172		15,760		16,855		16,855		17,929
International Motor		2,093		2,093		2,095		2,027		2,027		2,029
Financial Lines		15,109		15,109		15,389		15,776		15,776		16,311
Subtotal		297,366		295,668		297,888		287,200		287,112		294,122

Finite Risk
Finite Casualty		41,946		41,946		33,515		21,706		21,706		18,770
Subtotal		41,946		41,946		33,515		21,706		21,706		18,770

Total	$	579,761	$	567,121	$	553,413	$	569,724	$	565,000	$	566,496

- 21 -

Platinum Underwriters Holdings, Ltd.

Investments

($ in thousands)

	December 31, 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	$	4,765		2.8	%		0.3	%	$	4,944		2.7	%		0.4	%
U.S. Government agencies		51,122		2.7	%		3.0	%		-		-			-
Municipal bonds		1,269,247		3.8	%		2.7	%		1,209,934		4.4	%		2.3	%
Non-U.S. governments		40,514		1.2	%		0.6	%		50,977		1.6	%		0.8	%
Corporate bonds		227,235		4.3	%		3.7	%		300,908		4.4	%		2.7	%
Commercial mortgage-backed securities		77,491		5.7	%		2.3	%		135,526		5.3	%		2.5	%
Residential mortgage-backed securities		169,965		1.5	%		1.3	%		221,622		1.6	%		1.2	%
Asset-backed securities		17,531		4.9	%		2.4	%		17,774		1.7	%		1.6	%
Total fixed maturity available-for-sale securities	$	1,857,870		3.6	%		2.6	%	$	1,941,685		4.0	%		2.2	%

Fixed maturity trading securities:
Non-U.S. governments	$	103,395		3.5	%		0.6	%	$	112,813		3.6	%		0.4	%
Total fixed maturity trading securities	$	103,395		3.5	%		0.6	%	$	112,813		3.6	%		0.4	%

Short-term investments	$	66,679		2.4	%		2.4	%	$	172,801		1.8	%		2.0	%

	December 31, 2013								December 31, 2012
Credit quality of investments*	Fair Value		% of Total						Fair Value		% of Total
Aaa	$	628,265		31.0	%				$	776,738		34.9	%
Aa		806,282		39.8	%					831,190		37.3	%
A		359,803		17.7	%					340,612		15.3	%
Baa		200,437		9.9	%					231,950		10.4	%
Below investment grade		33,157		1.6	%					46,809		2.1	%
Total	$	2,027,944		100.0	%				$	2,227,299		100.0	%


Portfolio information**
Investable Assets	$3.5 billion								$4.0 billion
Credit Quality	Aa2								Aa1
Book Yield		2.1%								2.1%
Duration	2.6 yrs								2.6 yrs

Rated using external rating agencies (primarily Moody’s) including credit enhancements from insurance entities. As of December 31, 2013, there were approximately $10.7 million and $4.4 million of municipal bonds for which 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)

	December 31, 2013
	Fair Value		Net Unrealized Gain (Loss)			Credit Quality		Duration		Weighted Average Life
Fixed maturity available-for-sale securities:
U.S. Government	$	4,765	$	204		Aaa			1.8
U.S. Government agencies		51,122		(725	)	Aaa			6.2
Municipal bonds:
State general obligation bonds		890,675		33,405		Aa2			5.7
Essential service bonds*		184,261		6,197		Aa3			4.1
Other municipal bonds		70,136		1,548		Aa2			4.6
State income tax and sales tax bonds		68,827		4,289		Aa1			6.6
Pre-refunded bonds		55,348		2,939		Aa2			1.7
Subtotal		1,269,247		48,378		Aa2			5.3
Non-U.S. governments		40,514		541		Aa1			1.2
Corporate bonds:
Industrial		152,145		1,515		Baa2			5.2
Utilities		53,712		194		Baa1			6.2
Insurance		21,378		1,431		Baa2			6.3
Subtotal		227,235		3,140		Baa2			5.6
Commercial mortgage-backed securities		77,491		4,850			A1		2.1		2.3
Residential mortgage-backed securities:
U.S. Government agency residential mortgage-backed securities		153,493		958		Aaa			1.5		6.1
Non-agency residential mortgage-backed securities		16,472		(692	)	Caa2			0.5		6.7
Subtotal		169,965		266		Aa2			1.4		6.1
Asset-backed securities:
Asset-backed securities		13,576		(24	)	Aaa			0.1		5.5
Sub-prime asset-backed securities		3,955		1,352			C		-		9.0
Subtotal		17,531		1,328			A2		0.1		6.3
Total	$	1,857,870	$	57,982		Aa3			4.7

*	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, 2013
	Par Value		Fair Value		Net Unrealized Gain (Loss)			Credit Quality
Top 20 Holdings
American Electric Power Company, Inc.	$	12,500	$	12,559	$	72		Baa1
Mattel, Inc.		10,000		10,472		366		Baa1
Anglo American plc		8,000		9,402		412		Baa2
FirstEnergy Corp.		7,000		7,338		339		Baa2
Loews Corporation		6,000		7,164		1,154		Baa2
Snap-On Incorporated		7,000		7,052		50		Baa1
Teck Resources Limited		6,750		6,731		11		Baa2
ArcelorMittal		5,000		6,332		308		Ba1
Southern Company		6,625		6,324		(291	)		A3
Hess Corporation		5,000		6,211		471		Baa2
Entergy Corporation		6,000		6,183		182		Baa2
Newmont Mining Corporation		7,000		5,924		(1,031	)	Baa1
Northeast Utilities		5,700		5,735		(148	)	Baa2
Grupo Mexico, S.A.B de C.V.		5,000		5,345		326		Baa2
Southwestern Energy Company		5,300		5,272		(41	)	Baa3
Berkshire Hathaway Inc.		5,375		5,241		(129	)		A2
Joy Global Inc.		5,000		5,201		172		Baa2
Noble Energy, Inc.		5,000		5,127		110		Baa2
Lowe’s Companies, Inc.		5,000		5,117		99			A3
Encana Corporation	$	5,000	$	4,981	$	(27	)	Baa2

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Platinum Underwriters Holdings, Ltd.

Municipal Bonds Detail

($ in thousands)

	December 31, 2013
	Par Value		Fair Value			Net Unrealized Gain (Loss)			Credit Quality
Top 10 Exposures by Jurisdiction
Pennsylvania	$	131,911	$	143,074		$	5,575		Aa2
Illinois		132,500		136,051			1,715			A3
Connecticut		99,620		103,279			2,380		Aa3
California		90,235		101,486			8,318			A1
Massachusetts		72,425		75,854			2,407		Aa2
Texas		72,075		74,604			785		Aaa
Maryland		46,180		52,923			1,250		Aaa
New Jersey		48,675		50,689			(203	)		A2
New York		44,500		47,986			3,322		Aa1
Mississippi	$	42,905	$	44,573		$	1,038		Aa2

	December 31, 2013
	Par Value		Fair Value			Net Unrealized Gain (Loss)			Credit Quality
Top 10 Holdings by Issuer
State of Illinois	$	112,000	$	115,361		$	1,642			A3
State of Pennsylvania		96,700		106,253			4,604		Aa2
State of Connecticut		99,620		103,279			2,380		Aa3
State of California		88,235		99,353			8,206			A1
State of Massachusetts		59,010		61,765			1,733		Aa1
State of Texas		50,145		51,681			(271	)	Aaa
State of Maryland		38,180		44,645			1,009		Aaa
State of Mississippi		42,905		44,573			1,038		Aa2
State of Hawaii		35,000		39,082			3,970		Aa2
State of Arkansas	$	30,000	$	33,946		$	809		Aa1

	December 31, 2013
	Fair Value		% of Total
Credit quality of municipal bond portfolio*
Aaa	$	244,453		19.3	%
Aa		702,582		55.3	%
A		321,188		25.3	%
Baa		1,024		0.1	%
Total	$	1,269,247		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,
	2013			2012			2013			2012
Net realized gains (losses) on investments by entity:
Subsidiary domiciled in Bermuda	$	(778	)	$	14,364		$	13,420		$	72,606
Subsidiaries domiciled in the United States		-			4,091			10,500			16,148
Total	$	(778	)	$	18,455		$	23,920		$	88,754

Net realized gains (losses) on investments by type:
Sale of securities	$	-		$	19,178		$	27,243		$	90,097
Fair value adjustments on trading securities		(778	)		(723	)		(3,323	)		(1,343	)
Total	$	(778	)	$	18,455		$	23,920		$	88,754

Net impairment losses on investments by entity:
Subsidiary domiciled in Bermuda	$	31		$	42		$	1,940		$	2,168
Subsidiaries domiciled in the United States		-			107			93			863
Total	$	31		$	149		$	2,033		$	3,031

Net impairment losses on investments by type of security:
Commercial mortgage-backed securities	$	-		$	-		$	-		$	30
Non-agency residential mortgage-backed securities		-			57			1,439			2,896
Sub-prime asset-backed securities		31			92			594			105
Total	$	31		$	149		$	2,033		$	3,031

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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, 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	$	444,890		$	(476	)	$	445,366			266.0	%	$	620,304		$	73		$	620,231			337.7	%
Change in unpaid losses and loss adjustment expenses		(280,325	)		(2,405	)		(277,920	)					(436,928	)		(357	)		(436,571	)
Losses and loss adjustment expenses	$	164,565		$	(2,881	)	$	167,446					$	183,376		$	(284	)	$	183,660

	Analysis of Unpaid Losses and Loss Adjustment Expenses
	As of December 31, 2013 (1)												As of December 31, 2012 (2)
	Gross			Ceded			Net			%			Gross			Ceded			Net			%
Outstanding losses and loss adjustment expenses	$	683,430		$	1,001		$	682,429			40.9	%	$	799,593		$	3,594		$	795,999			40.7	%
Incurred but not reported		987,935			193			987,742			59.1	%		1,161,689			3			1,161,686			59.3	%
Unpaid losses and loss adjustment expenses	$	1,671,365		$	1,194		$	1,670,171			100.0	%	$	1,961,282		$	3,597		$	1,957,685			100.0	%

(1)	Net unpaid losses and loss adjustment expenses include the effects of foreign currency exchange rate gains of $9,594 for the twelve months ended December 31, 2013.

(2)	Net unpaid losses and loss adjustment expenses include the effects of foreign currency exchange rate losses of $8,597 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 December 31, 2013												Three Months Ended December 31, 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	$	8,444		$	17,500		$	2,811		$	28,755		$	7,263		$	114,329		$	1,310		$	122,902
Net premium adjustments related to prior years' losses		(183	)		(263	)		-			(446	)		131			475			-			606
Net commission adjustments related to prior years' losses		(80	)		985			(941	)		(36	)		172			693			(1,693	)		(828	)
Net favorable (unfavorable) development		8,181			18,222			1,870			28,273			7,566			115,497			(383	)		122,680

Major Catastrophe Favorable (Unfavorable) Development
Net loss development related to prior years		5,324			-			100			5,424			(901	)		2			-			(899	)
Net premium adjustments related to prior years' losses		(388	)		-			-			(388	)		(89	)		-			-			(89	)
Net commission adjustments related to prior years' losses		(3	)		-			-			(3	)		1			-			-			1
Net favorable (unfavorable) development		4,933			-			100			5,033			(989	)		2			-			(987	)

Total net favorable (unfavorable) development	$	13,114		$	18,222		$	1,970		$	33,306		$	6,577		$	115,499		$	(383	)	$	121,693

	Twelve Months Ended December 31, 2013												Twelve Months Ended December 31, 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	$	30,163		$	103,136		$	9,659		$	142,958		$	32,993		$	182,025		$	7,865		$	222,883
Net premium adjustments related to prior years' losses		593			(59	)		-			534			4,211			2,451			-			6,662
Net commission adjustments related to prior years' losses		83			836			(7,093	)		(6,174	)		350			(322	)		(8,106	)		(8,078	)
Net favorable (unfavorable) development		30,839			103,913			2,566			137,318			37,554			184,154			(241	)		221,467

Major Catastrophe Favorable (Unfavorable) Development
Net loss development related to prior years		41,106			29			(800	)		40,335			12,671			(11	)		-			12,660
Net premium adjustments related to prior years' losses		(4,426	)		-			-			(4,426	)		(60	)		-			-			(60	)
Net commission adjustments related to prior years' losses		(43	)		-			-			(43	)		(36	)		-			-			(36	)
Net favorable (unfavorable) development		36,637			29			(800	)		35,866			12,575			(11	)		-			12,564

Total net favorable (unfavorable) development	$	67,476		$	103,942		$	1,766		$	173,184		$	50,129		$	184,143		$	(241	)	$	234,031

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Platinum Underwriters Holdings, Ltd.

Estimated Exposure to Peak Zone Property Catastrophe Losses

As of January 1, 2014

($ 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	$	97	$	94	$	190	$	177	$	236	$	220
United States	Earthquake		26		26		108		108		150		150
Pan-European	Windstorm		55		30		134		104		163		133
Japanese	Earthquake		13		13		128		128		171		171
Japanese	Typhoon		3		3		58		58		69		69
Canadian	Earthquake	$	-	$	-	$	34	$	34	$	57	$	57

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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